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Cost audit

gaurav rana (student) (46 Points)

10 April 2017

Dear All,

Whether Cost Audit as well as Cost Records is applicable on Company which is trading solely by importing Steel having turnover more than 350 cr

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5 Replies

Studentsca (CA Practice ) (3577 Points)
Replied 10 April 2017

Go through Cost Records and Audit Rules 2014. They have clearly mentioned the rules for applicability of rules for maintenance of Cost Records and Audit thereof.

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gaurav rana (student) (46 Points)
Replied 11 April 2017

still unclear

Anjali lakra (473 Points)
Replied 13 April 2017

check whether the principal activity of the company falls under the table provided in rule 3 or not..

CA Ashish Gupta (Chartered Accountant) (73 Points)
Replied 19 April 2017

Dear Gaurav,

Yes, Maintenance of cost records and Cost Audit is required in your case as per Rule 3 and Rule 4 of the companies( cost Records & Audit ) Rules, 2014. Steel Industry falls under Non regulated Sector and the turnover exceeds the prescribed limit of 35 Crore or more. Cost records to be maintained in form CRA-1. Also Check for exemptions under Rule 4(3).

Hope your doubt would be clear.