17 December 2010
Cost audit in India is compulsory for companies in India who are required to maintain cost records.Such audit need to be as per Section 233B of the Companies Act
records required under clause (d) of sub-section (1) of section 209. ie., particulars relating to utilization of material or labor or to other items of cost as may be prescribed. Maintenance of books of cost accounting record rules under 209(1) (d) is Notified by the Govt of India, Ministry of Law, Justice & Company Affairs, Department of Company Affairs for certain class of INDUSTRIES. The applicability of the relevant provision in Companies Act should, if at all, be limited to only those industries where government controls the selling price based on cost-plus formulae or those in which government funds are disbursed in the form of subsidies.
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