Questions we hear most.
Short answers on cost audit, costing systems and working with the firm. For anything specific to your company, call or write to us.
Prefer to ask directly?
Call or write to us. We serve clients across India from Ghaziabad and Noida.
Who needs a cost audit?
It depends on the sector, the company's overall turnover and the turnover of the product or service covered. For regulated sectors the thresholds are ₹50 crore overall and ₹25 crore for the product. For other sectors they are ₹100 crore and ₹35 crore. Some companies are exempt, such as those that earn most of their revenue from exports.
Who can act as a cost auditor?
A cost accountant in practice, appointed by the company's Board. Chandra Sharma & Co. is a firm of cost accountants and takes cost audit assignments across India.
When must the cost auditor be appointed?
Within 180 days of the start of the financial year. The company then files Form CRA-2 with the Central Government.
When is the cost audit report due?
The cost auditor sends the signed report to the Board within 180 days of the close of the financial year. The company files it with the Central Government within 30 days of receiving it.
What do you need from us to start?
Your latest audited financial statements, product-wise production and sales data, and your existing cost records. The checklist lists what to keep ready.
How long does a cost audit take?
It depends on the number of products, the size of the plants and the state of the cost records. We give you a timeline once we have reviewed the scope.
How are your fees decided?
By the sector, turnover, number of products and the scope of work. We quote after reviewing the scope, so you know the fee before you appoint us.
Do you work outside Delhi NCR?
Yes. We serve clients on a PAN India basis from our offices in Ghaziabad and Noida.
What is a costing system and what is ABC costing?
A costing system records what each product, process or service costs. Activity based costing assigns overheads according to the activities that drive them, which gives a clearer view of margins.
Which industries do you serve?
Telecommunication, pharmaceuticals, sugar, steel, paper, rubber, edible oils, automobiles, hospitals, airport ground handling, construction and more.
Do you help small businesses with loans and project reports?
Yes, through our advisory practice. See Growth Edge Advisory for SME finance and business advisory.
Did not find your question?
For anything specific to your company, call or write to us.