Rule 3 of the Companies (Cost Records and Audit) Rules 2014 mandates that every company engaged in the production of goods or provision of services specified in the Annexure to the Rules must maintain cost records. The requirement applies to:
Receipts, issues, consumption statements, and price records for all raw materials and inputs in cost ledgers.
Direct labour time records, wage registers, piece-rate records linked to cost centres and products.
Power and fuel consumption records, utilities cost allocation across departments and products.
Monthly/quarterly product-wise cost statements, variance analysis, and reconciliation with financial accounts.
Custom design of cost recording framework aligned with your production process, cost centres, and product lines.
Periodic maintenance of cost ledgers, reconciliation with financial accounts, and preparation of cost statements.
Training your finance and production teams on cost data collection, recording standards, and CAS compliance.
Periodic review of your cost records for completeness, accuracy, and conformity with CAS and Rule 3 requirements.
