Cost Audit & Regulatory Reporting
Cost audit ensures cost records reflect true performance and comply with statutory frameworks.
Overview
Companies in specified industries must maintain cost records and, above prescribed turnover limits, have them audited under Section 148 of the Companies Act, 2013 and the Companies (Cost Records and Audit) Rules, 2014. A cost audit can only be carried out by a Cost Accountant in practice.
Deepak Khanuja & Associates has conducted cost audits since 1998. We review and maintain cost records, prepare industry-specific cost statements, reconcile them with the financial accounts, and prepare the cost audit report within the statutory timelines.
What we do
- Maintenance & Review of Cost Records
- Industry-Specific Cost Statements
- Reconciliation with Financial Accounts
- Cost Audit Report Preparation & Filing
- Regulatory Compliance Advisory
Who this is for
- Companies covered by the Companies (Cost Records and Audit) Rules, 2014
- Regulated and non-regulated sectors such as power, steel, paper, pharma and chemicals
- Companies unsure whether cost records or a cost audit apply to them
Outcome
Strengthened compliance posture and audit transparency.
Questions about Cost Audit & Regulatory Reporting
Which companies in India need to maintain cost records or get a cost audit?
Under Section 148 of the Companies Act, 2013 and the Companies (Cost Records and Audit) Rules, 2014, companies in specified industries must maintain cost records if their turnover from all products and services was ₹35 crore or more in the preceding financial year. A cost audit is required for regulated sectors when overall turnover is ₹50 crore or more and the turnover of the individual product or service is ₹25 crore or more, and for non-regulated sectors when these figures are ₹100 crore and ₹35 crore. We review your products, sector and turnover to confirm exactly what applies to your company.
Who is allowed to conduct a cost audit?
A cost audit under the Companies Act, 2013 can only be conducted by a Cost Accountant in practice. Deepak Khanuja & Associates is a registered firm of Cost Accountants (Firm Registration No. 100247), founded by CMA Deepak Khanuja, FCMA.
What are the main cost audit compliance deadlines?
The company files Form CRA-2 to intimate the appointment of the cost auditor within 30 days of the board meeting at which the appointment is made, or within 180 days from the start of the financial year, whichever is earlier. The cost auditor submits the cost audit report in Form CRA-3 to the board within 180 days from the end of the financial year, and the company files it with the Central Government in Form CRA-4 within 30 days of receiving it. We track these timelines for our clients.
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