Pursuant to section 148 of the Company Act 2013 read with Cost (Records and Audit) Rules 2014 for appointment of Cost auditor in the company:
Every company specified in item (A) of rule 3 i.e, of Regulated sectors having overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees 50 crore or more and the aggregate turnover of the individual product or products or services for which cost records are required to be maintained under rule 3 is rupees 25 crore or more
Every company specified in item (B) of rule 3 i.e, of Non- Regulated sectors having overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees 100 crore or more and the aggregate turnover of the individual product or products or service or services for which cost records are required to be maintained under rule 3 is rupees 35 crore or more.
Companies shall within 180 days from the commencement of financial year appoint a Cost Auditor
The Cost auditor shall be appointed by the Board on the basis of recommendation by Audit committee if any as the case may be
The remuneration of cost auditor shall also be recommended by the Audit committee and Board shall approve the same and ratified by the shareholders of the company
The qualifications, disqualifications, rights, duties and obligations applicable to auditors of the company, so far as may be applicable, to a cost auditor appointed and it shall be the duty of the company to give all assistance and facilities to the cost auditor appointed under this section for auditing the cost records of the company
Every company under these rules including all units and branches thereof, shall, in respect of each of its financial year, maintain cost records in form CRA-1 on regular basis for monthly or half yearly or quarterly or on annual basis
Company shall inform the cost auditor concerned of his or its appointment as such and file a notice of such appointment with the Central Government within a period of 30 days of the Board meeting in which such appointment is made or within a period of 180 days of the commencement of the financial year, whichever is earlier, through electronic mode, in Form CRA-2
Any causal vacancy in the office of a cost auditor, whether due to resignation, death or removal, shall be filled by the Board of Directors within 30 days of occurrence of such vacancy and the company shall inform the Central Government in Form CRA -2
The report on the audit of cost records shall be submitted by Cost Auditor to the Board of Directors of the company
Every cost auditor, who conducts an audit of the cost records of a company, shall submit the Cost Audit Report along with his or its reservations or qualifications or observations or suggestions, if any within 180 days from the closure of FY, in Form CRA-3
Company shall within 30 days from the receipt of the report inform to the Central Government in Form CRA-4 in eXBRL format.
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