As a cost accountant firm, cost records compilation is our core competence as it is an area of our specialisation. Our firms experience in various industries like Auto, Dairy, Textiles, Garments, Steel/Copper/Aluminium and many more; makes us expertise in this field.

Cost Records means books of accounts relating to utilization of material, labour and other items of cost as applicable to the production of goods and services.
Why is it Required? The cost records shall be maintained to exercise, as far as possible, control over the various operations and costs to achieve optimum utilisation of resources and these records shall also provide necessary data which is required to be furnished.

Cost records are maintained on regular basis in such manner as to facilitate calculation of per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities for every financial year on monthly or quarterly or half-yearly or annual basis.

Applicability: Cost Records are mandatory if the following conditions are satisfied:

(i) The company is engaged in manufacturing goods or provision of services which are listed in Table A or Table B; and

(ii) Total aggregate turnover of the company from all its production or service is more than INR 35 Crore in the preceding financial year.

• 1. Designing of Costing system, its development and installation.


• 2. Periodic Review and Modification of the Existing Systems and Procedures in Operation.


• 3. Designing of Costing Manual as per business requirement.


• 4. Determination of product cost and sale price.


• 5. Advisory on product mix decision and price fixation.


• 6. Cost control and Analysis, Cost reduction and Total cost management.


• 7. Developing & implementing Management Accounting System and other management decision making tools.


• 8. Identification of optimum level of inventories to reduce cost impact.


• 9. Preparation of project reports and valuation of assets.


• 10. Physical verification of Fixed Assets and preparation of Fixed Assets Report (FAR).


• 11. Analysis of Capacity Utilization and Input-Output ratio/BOM.


• 12. Preparation of cost accounting records/MIS reports - Statutory and Voluntary.


• 13. Management Consultancy on various Issues.

We provided the best services of cost audit as we have experienced and also engaged in various industries like Auto, Dairy, Textiles, Garments, Steel/Copper/Aluminium etc. Statutory cost audit is for the compliances of companies who meet its provision. And here we are not only to meet the compliances but we also provide the reliable data to achieve the price fixing and decision-making objectives.

Cost Audit offers many advantages to management, shareholders, statutory auditor, consumers and government.

Advantages to:-

Management

• 1. Detection of frauds and errors.


• 2. Measure performance of managers.


• 3. Inter-firm comparison can be made with ease.


• 4. Comparative operational efficiency of each department of division.

Shareholders

• 1. Correct valuation of Inventories may project a true picture of organisation before shareholders and other investors and help them to assess its performance.


• 2. Highlights efficiency, utilisation of manpower and other resources, adequacy of return, etc.

Statutory Auditor

• 1. Help them to determine the value of stocks, remuneration of managerial personnel, etc., with ease and accuracy.


• 2. Data and statements of cost audit help him to prepare his audit programme and plan so that he concentrates more on those aspects which have not been adequately covered by cost audit.

Consumers

• 1. Reasonable price for consumers.


• 2. Audit aims to ensure efficiency, it reflects in reduced price to consumers.

Government

• 1. Helps the government to settle accounts where cost-plus contracts have been made


• 2. The government can intervene to protect the interests of the consumers, labour, shareholders and investors from exploit-age or inefficient managements.


• 2. At the national level, cost audit promotes cost consciousness and overall efficiency. This means that every rupee invested produces the maximum quantity of goods and services.