Compliance report is applicable to Company as a whole & Cost Audit is applicable to particular products specified by GOI. There can be a scenario where Company is manufacturing various products falling under different industries. Please refer below situations:
| Situation | Applicability of Cost Audit |
|
Company engaged in:
Product A: Under Cost Audit
Product B: Under Cost Audit
|
Cost audit report to be filed for Product A and Product B.
No Compliance Report to be filed.
|
|
Company engaged in:
Product A: Under Cost Audit
Product B: Not under Cost Audit
|
Cost Audit Report to be filed for Product A.
Compliance Report to be filed for the company as a whole.
|
|
Company engaged in:
Product A: Not under Cost Audit
Product B: Not under Cost Audit
|
Compliance Report to be filed for the company as a whole |
|
Company engaged in:
Product A: Under Cost Audit
Product B: Cost Audit is applicable but consumed exclusively for production of Product A
|
Cost Audit Report to be filed for Product A.
No separate cost audit report to be filed for Product B.
No Compliance Report to be filed.
|
|
Company engaged in:
Product A: Not under Cost Audit
Product B: Under Cost Audit but the product is consumed exclusively for production of Product A
|
Cost Audit Report to be filed for Product B.
Compliance Report to be filed for the company as a whole.
|
Regards,
CMA Ajay Jaisingh
M.Com, ACMA
M.Com, ACMA
Ajay Jaisingh & Associates II Cost Accountants in Practice II
Office: 1204, "MATRIX", B/H Divya Bhaskar House, Nr. Vodafone House, Prahladnagar Corporate Road, Off S G Highway, Ahmedabad-380051.
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