Cost Records & Cost Audit Support.
Companies making notified products or providing notified services must keep cost records under section 148 of the Companies Act, 2013, and those above prescribed turnover limits must also have them audited by a cost accountant in practice. We prepare and maintain the cost records, reconcile them with the financial accounts, support the independent cost auditor and file Forms CRA-2 and CRA-4.
Cost records are kept through the year. The audit and filing cycle typically runs 4–8 weeks after the financial accounts close, driven by the number of products and plants and the cost auditor's schedule.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Manufacturers and service providers in industries listed in the Companies (Cost Records and Audit) Rules, 2014
- Companies in regulated sectors such as telecom, electricity, petroleum and pharmaceuticals
- Companies crossing the turnover limits for cost records or cost audit
- Businesses wanting product-wise cost data for pricing decisions
What you receive at the end.
- 01Cost records and product-wise cost statements
- 02Reconciliation of cost and financial accounts
- 03Form CRA-2 (cost auditor appointment) and Form CRA-4 (cost audit report) filings
- 04Cost analysis notes useful for pricing
Cost Records & Cost Audit Support, step by step.
Cost records are kept through the year. The audit and filing cycle typically runs 4–8 weeks after the financial accounts close, driven by the number of products and plants and the cost auditor's schedule.
- 1
Applicability review
We check your products or services against the Rules, and your turnover against the limits for cost records and cost audit.
- 2
Cost records
We set up or maintain cost records in the Form CRA-1 format: material, labour and overhead costs and product-wise cost statements.
- 3
Cost-to-financial reconciliation
We reconcile the cost accounts with the financial accounts and explain the differences.
- 4
Cost auditor coordination
Your board appoints a practising cost accountant, who cannot be your statutory auditor, and the appointment is filed in Form CRA-2. We support the audit with records and explanations.
- 5
CRA-4 filing
After the cost auditor issues the CRA-3 report and the board considers it, we file Form CRA-4 in XBRL with the MCA.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- List of products and services with their tariff classification codes
- Production, consumption and stock records
- Payroll and overhead cost data
- Audited financial statements
- Previous cost audit reports and CRA filings
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Cost Records & Cost Audit Support.
Ready to discuss Cost Records & Cost Audit Support?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.