Ours is a Pvt Ltd Company having a turnover of more than Rs100 crores which includes production & sale of silk sarees worth Rs.8 crores (which is not Excisable item) for the FY 2014-15. Is this Company required to appoint the Cost Auditor as per Companies(Cost Records & Audit) Rules 2014 for the FY 2015=16. Can you pl reply with proper reasoning ?
D.Sivasailam
According to Rule 3 of Cost Audit Rules, your Company falls under item (B) specified in Rule3.
And as Per Rule 4 of Cost Audit Rules, Company Covered under item B of Rule 3 shall get its cost Record audited, if the overal annual Turnover from all its products and services during immediately preeceding financial year is Rupees 100 crores Rupees or more and the agregate turnover from indivisual products or service is Rupees 35 Crore Rupees or more.
Dear Member,
Please refer Cost Audit Standards.
CAclubindia
