Statutory Compliance Service
Cost Audit Services
Expert Cost Audit (CRA-3) compliance by a Gold Medalist CMA with 22+ years of industrial experience.
Under Section 148 of the Companies Act, 2013, manufacturing and certain service-sector companies exceeding prescribed turnover thresholds are mandated to conduct an annual cost audit by a qualified Cost Management Accountant (CMA). Non-compliance attracts penalties up to ₹5 Lakhs and potential director disqualification.
Malay Biswas & Co. provides end-to-end cost audit services — from initial compliance assessment to filing of Form CRA-3 with the Central Government. Our sole proprietor, ACMA Malay Biswas (COP: 007684), brings over two decades of direct industrial experience across textile manufacturing, FMCG, heavy chemicals, and infrastructure sectors.
We don't just audit your cost records — we provide actionable insights that help your management identify cost leakages, optimize product pricing, and strengthen internal controls. Every audit engagement is conducted with strict confidentiality under the ICMAI Code of Ethics.
Key Highlights
- COP No. 007684 — Authorized Cost Auditor
- Gold Medalist (J.N. Bose Memorial) from ICMAI
- 22+ years corporate finance & costing experience
- Served Kesoram Industries, Emami, Phoenix Conveyor Belt
- End-to-end: Compliance check → Audit → CRA-3 filing
- Strict ICMAI Code of Ethics compliance
What We Deliver
Service Deliverables
Compliance Assessment
We evaluate whether your company falls under the mandatory cost audit bracket based on turnover, industry, and product classification under the CETA/CTA rules.
Cost Audit Report (CRA-3)
Preparation and filing of the statutory Cost Audit Report in Form CRA-3, including all annexures, observations, and qualified/unqualified opinions.
Cost Records Review (CRA-1)
Verification and validation of cost records maintained under Form CRA-1, ensuring proper allocation of overheads, material consumption, and process costs.
Product-wise Cost Statements
Detailed product-level cost breakdowns showing material, labour, overhead, and total cost of production for each product category audited.
Management Letter
Confidential advisory letter to management highlighting cost inefficiencies, control weaknesses, and improvement recommendations identified during the audit.
Regulatory Filing Support
Assistance with Form CRA-2 (auditor appointment intimation) and Form CRA-4 (e-filing of cost audit report) to the MCA portal.
Is This Relevant For You?
Who Needs This Service
Common Questions
Frequently Asked Questions
A cost audit is a statutory examination of cost records maintained by a company under Section 148 of the Companies Act, 2013. It is mandatory for manufacturing companies in specific industries that exceed prescribed turnover thresholds — ₹35 Crore for regulated sectors and ₹100 Crore for non-regulated sectors. The audit must be conducted by a qualified CMA holding a Certificate of Practice (COP).
Non-compliance with cost audit requirements can result in penalties ranging from ₹25,000 to ₹5,00,000 for the company, and ₹10,000 to ₹1,00,000 for every officer in default. Additionally, directors may face disqualification under Section 164(2)(a) if annual filings are pending for more than 3 years.
The duration depends on the complexity of operations and number of products. For a single-product manufacturing unit, the audit typically takes 2-4 weeks. For multi-product, multi-location companies, it may take 6-8 weeks. We provide a detailed timeline at the engagement stage.
You will need to provide cost records in Form CRA-1, trial balance, product-wise production and sales data, raw material consumption records, labour cost breakdowns, overhead allocation details, and inventory records. We provide a comprehensive checklist at the start of every engagement.
Yes. While our registered practice office is based in Kolkata, we handle cost audit engagements for companies located across all states in India. We conduct site visits as required and use secure digital channels for document exchange and audit execution.
Fees depend on company turnover, number of products, and audit complexity. We provide a transparent fee estimate after an initial assessment. Our fees are competitive and comply with ICMAI guidelines on professional fee structures.
Ready to Get Started?
Schedule a confidential consultation with our CMA practitioner. We'll review your requirements and provide a clear roadmap.