Cost Records

Reporting requirement

Report whether maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act 2013, and whether such accounts and records have been so made and maintained.

What to verify before signing

• Applicability — Companies (Cost Records and Audit) Rules 2014 table 3A / 3B sectors
• Cost records maintained per CRA-1 format
• Cost auditor appointed if turnover thresholds breached
• Reconciliation between cost records and financial statements

Sample observation — applicable

The Central Government has prescribed maintenance of cost records under sub-section (1) of section 148 of the Companies Act 2013 in respect of the products manufactured / services rendered by the Company. We have broadly reviewed the books of account maintained by the Company pursuant to such rules, and we are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of these records with a view to determining whether they are accurate or complete.

Sample observation — not applicable

The Central Government has not prescribed the maintenance of cost records for the Company under sub-section (1) of section 148 of the Companies Act 2013.

Related standards