Regulatory Compliance Service
Cost Records Maintenance (CRA-1)
Professional setup and maintenance of cost records under Rule 5 of the Companies (Cost Records and Audit) Rules — ensuring your records withstand regulatory scrutiny.
Under Rule 5 of the Companies (Cost Records and Audit) Rules, 2014, every company engaged in specified industries must maintain detailed cost records in the format prescribed by Form CRA-1. These records form the foundation for statutory cost audits and regulatory compliance assessments.
Many companies struggle with CRA-1 compliance because their existing accounting systems are not structured to capture cost data at the granularity required by the rules. This gap becomes critical during cost audits, MCA inspections, or GST assessments where product-level cost details are demanded.
Malay Biswas & Co. provides comprehensive cost records setup and maintenance services. We design your cost accounting framework from scratch — integrating it with your existing ERP/accounting software — to ensure continuous compliance. Our system captures material costs, labour, overheads, and process costs at the product level, exactly as prescribed by CRA-1.
Key Highlights
- CRA-1 compliant cost record framework design
- Integration with Tally, SAP, and other ERP systems
- Product-wise cost sheets and variance reporting
- Overhead allocation and apportionment setup
- Monthly/quarterly cost MIS reports
- Audit-ready documentation at all times
What We Deliver
Service Deliverables
Cost Framework Design
Complete design of your cost accounting framework including cost centers, cost elements, allocation bases, and product cost build-up methodology.
CRA-1 Record Templates
Customized templates and formats for maintaining cost records in prescribed CRA-1 format, tailored to your industry and product range.
ERP Integration Advisory
Guidance on configuring your ERP system (Tally, SAP, Oracle) to automatically capture cost data in CRA-1 compliant format.
Product Cost Sheets
Monthly/quarterly product-wise cost statements showing material, labour, overheads, and total cost of production per unit.
Variance Analysis Reports
Regular variance analysis comparing actual costs with standards/budgets to identify material consumption variances, yield losses, and overhead absorption differences.
Compliance Monitoring
Ongoing monitoring and advisory to ensure your cost records remain updated and compliant with any amendments to the rules.
Is This Relevant For You?
Who Needs This Service
Common Questions
Frequently Asked Questions
CRA-1 is the prescribed format for maintaining cost records under the Companies (Cost Records and Audit) Rules, 2014. Companies in manufacturing sectors including textiles, chemicals, cement, sugar, pharmaceuticals, metals, and several others must maintain these records if they meet the prescribed turnover thresholds.
Regular financial accounting focuses on recording transactions and preparing profit & loss and balance sheet statements. CRA-1 requires detailed cost records including product-wise material consumption, direct labour allocation, overhead absorption, process waste analysis, and cost of production computation — far more granular than what standard accounting provides.
Yes, we have experience configuring cost centers, cost elements, and product cost build-up structures within both Tally and SAP. We design the cost allocation framework and guide your accounts team on capturing the required data points within your existing system.
For a single-product company with existing basic accounts, the initial setup takes 2-4 weeks. For multi-product companies needing comprehensive framework design and ERP integration, it may take 4-8 weeks. Ongoing maintenance is then handled monthly.
Non-maintenance of cost records can attract penalties from the MCA. More critically, it creates problems during cost audits (the auditor may issue a qualified report), GST assessments (inability to justify product valuations), and transfer pricing examinations. We recommend immediate remediation.
Ready to Get Started?
Schedule a confidential consultation with our CMA practitioner. We'll review your requirements and provide a clear roadmap.