Cost Audit & Consultancy

Section 220 of the Companies Act, 1994 provides mandatory Cost Audit for the organization engaged in Production, Distribution, Marketing, Transportation, Manufacturing, Mining and extraction activities, particularly relating to utilization of material, labor and other items of overhead cost as per specified sector under sec 181(1) (d) of The Company Act-1994.

We conduct Cost Audit and have experience and expertise in Cost Audit over three decades.

  • Prepare accurate cost reports and business planning can be more accurate.
  • Inefficiencies in production (or efficiencies) will be located and converted into monetary terms.
  • Through fixation of individual responsibility, management by exception will be possible.
  • We check the system of budgetary control, standard costing & cost accounting practices.

In this era of globalization, price is ruled by market, Profit target is set by the top management and the gap between the price and profit defines cost.

Normally, variability, size of business, degree of competition, capacity considerations, Government Regulations and policies, cyclical demand, health of economy, technology and so on largely impact the cost and hence determination of cost and its analysis is essential for the long term survival and growth of any business entity.

  • To identify the exact causes for decrease or increase in the, profit/loss of the business.
  • To help in identifying unprofitable activities, losses or inefficiencies in any form.
  • To find new and improved methods for reducing costs.
  • To find out idle capacity of specific operation.