FORM-II - FORM OF THE COST AUDIT REPORT - Companies (Cost Audit Report) Rules, 2011

FORM-II FORM OF THE COST AUDIT REPORT [See rule 2 and rule 6] I/We, . having been appointed as Cost Auditor(s) under Section 233B of the Companies Act, 1956 (1 of 1956) of . (mention name of the company) having its registered office at .. (mention registered office address of the company) (hereinafter referred to as the company), have audited the books of account prescribed under clause (d) of sub-section (1) of section 209 of the said Act, and other relevant records in respect of the (mentions name/s of product group/s) for the period/year .. (mention the financial year) maintained by the company and report, in addition to my/our observations and suggestions in para 2. (i) I/We have/have not obtained all the information and explanations, which to the best of my/our knowledge and belief were necessary for the purpose of this audit. (ii) In my/our opinion, proper cost records, as per Companies (Cost Audit Report) Rules, 2011 prescribed under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, have/have not been maintained by the company so as to give a true and fair view of the cost of production/operation, cost of sales and margin of the product/activity groups under reference. (iii) In my/our opinion, proper returns adequate for the purpose of the Cost Audit have/have not been received from the branches not visited by me/us. (iv) In my/our opinion and to the best of my/our information, the said books and records give/do not give the information required by the Companies Act, 1956, in the manner so required. (v) In my/our opinion, the said books and records are/are not in conformity with the Cost Accounting Standards issued by The Institute of Cost and Works Accountants of India, to the extent these are found to be relevant and applicable. (vi) In my/our opinion, company has/has not adequate system of internal audit of cost records which to my/our opinion is commensurate to its nature and size of its business. (vii) Detailed unit-wise and product/activity-wise cost statements and schedules thereto in respect of the product groups/activities under reference of the company duly audited and certified by me/us are/are not kept in the company. (viii)As required under the provisions of The Companies (Cost Audit Report) Rules, 2011, I/we have furnished Performance Appraisal Report, to the company, on the prescribed form. Observations and suggestions, if any, of the Cost Auditor, relevant to the cost audit. Dated: this __________ day of _____________ 20______at _____________ (mention name of place of signing this report) SIGNATURE SEAL OF THE COST AUDITOR (S) MEMBERSHIP NUMBER (S) NOTES: (1) Delete words not applicable. (2) If as a result of the examination of the books of account, the Cost Auditor desires to point out any material deficiency or give a qualified report, he shall indicate the same against the relevant paras (i) to (viii) only in the prescribed form of the Cost Audit Report giving details of discrepancies he has come across. (3) The report, suggestions, observations and conclusions given by the Cost Auditor under this paragraph shall be based on verified data, reference to which shall be made here and shall, wherever practicable, be included after the company has been afforded an opportunity to comment on them.