Applicability of cost audit
These rules shall apply to every company, including a foreign company as defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or mining activities and wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crores of rupees; or wherein the aggregate value of the turnover made by the company from sale or supply of all products or activities during the immediately preceding financial year exceeds twenty crores of rupees; or wherein the company’s equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India
Our client purchases Diamond and Gold & engaged in the sale of readymade jewellery which is made on the basis on job work being outsourced to the Karigars who are not hired by our client.
So we need to know whether we come under the purview of above provisions as right now we are of the view that the Cost Audit Rules are not applicable on us.
CAclubindia
