Sub.: Query regarding Applicability of Cost Audit.
As order given by MCA on 24th January, 2012 that every company to which Cost Accounting Rules, 2011 applicable and the aggregate value of turnover made by the company during the immediate preceding F.Y. exceeds 100 crore of rupees; shall get cost accounting records audited on or after 1st day of April, 2012 under chapter 50 to 63 i.e. for textile industry.
My query is regarding applicability of cost audit when the company has its turnover in the preceding F.Y. 2011-12 less than Rs. 100 crores (it is just because company have weak financial position in that F.Y. and unable to buy raw material on its own account and receiving only job work or processing charges for material produced on account of material supplied by others).
However’ in the financial year’s preceding to the financial year as mentioned above (i.e. 2011-12) company have its turnover more than Rs. 100 crores.
I want you please suggest me that whether Cost audit for financial year 2012-13 shall applicable to the company or not or give necessary suggestion as you think appropriate.
27 December 2012
Cost Audit is applicable for the first time if the turnover of the company in the preceding previous year is more than Rs. 100 crores in the case of textile industry.
Cost Audit is not applicable for the year 2012-13 as the turnover of the company for the year 2011-12 is less than Rs. 100 crores as mentioned by you.
CAclubindia
