Cost Audit Under Companies Act 2013

Cost audit is a critical requirement outlined in Section 148 of the Companies Act, 2013. It mandates certain companies to maintain detailed cost records, ensuring transparency and compliance. This regulatory framework aims to standardize cost data for companies operating in specified sectors, with the goal of enhancing financial accuracy and accountability.

As per the Companies Act, 2013, companies meeting prescribed thresholds must undergo a cost audit. The Central Government provides specific guidelines through the Companies (Cost Records and Audit) Rules, 2014. Our firm conducts cost audits in adherence to the Companies Act, the relevant rules, Cost Auditing and Assurance Standards, and Cost Accounting Standards.

Regulatory Compliance

Following all statutory guidelines

Risk Identification

Highlighting potential cost-related risks

Standardized Procedures

Establishing Standardized Procedures / protocols

Cost Optimization

Identifying opportunities for reducing unnecessary expenses

We conduct audits across various sectors, ensuring each process aligns with regulatory requirements. Our audits cover a wide range of industries, including

01

Auto & Auto Ancillary

Detailed cost analysis and reporting

02

Engineering

Accurate record-keeping and cost efficiency

03

Health Care

Compliance with healthcare standards.

04

Pharmaceuticals

Industry-specific cost compliance

05

Textile

Analysis of manufacturing costs.

06

Defence

Detailed assessment for compliance.

07

Flavours & Fragrances (Chemical)

Specialized cost evaluations

08

Dairy

Cost audits for food industry standards.

The aim of a cost audit is not merely to satisfy statutory requirements but to provide a comprehensive assessment.

Service

Purpose of Cost Audits

Cost audits serve as a crucial tool for ensuring the accuracy of financial data while fulfilling statutory obligations. They provide valuable insights into a company's cost structure, supporting better management of resources and compliance with industry standards.

Internal Reporting
Risk Assessment
Operational Efficiency