Cost Record
The Ministry of Corporate Affairs, Government of India has notified The Amended Cost Audit Rules-as per The Companies (Cost Records and Audit) Amendment Rules, 2014 dt 31stdec2014 in which the given below industries have to follow maintenance of cost accounting records if their Gross Turnover exceed 35 crs from f.y 2014-15
- A) Regulated Sectors name are given below :
1) Telecommunication
2) Generation, transmission, distribution and supply of electricity
3) Petroleum products (CETA NO:2709,2715)
4) Drugs and Pharmaceuticals;(CETA NO:2901 TO 2942:3001 TO 3006)
5) Fertilisers; (CETA NO-3102 TO 3105)
6) Sugar and industrial alcohol;(CETA NO-1701 :1703:2207)
- B) Non-Regulated industries name are given below :
1) Coffee & Tea Covered under CETA 0901 to 0902 (All products) and Milk Powder Covered under Chapter Heading 0402 (All Products)
2) Insecticide Covered under Chapter Heading 3808 (All Products)
3) Plastic & Polymers Covered under Chapter Heading 3901 to 3914; 3916 to 3921; 3925 (All Products)
4) Tyres & Tubes Covered under Chapter Heading 4011 to 4013 (All Products)
5) Paper Covered under Chapter Heading 4801 to 4802 (All Products)
6) Textiles Covered under Chapter Heading 5004 to 5007; 5106 to 5113; 5205 to 5212; 5303; 5310; 5101 to 5408; 5501 to 5516 (All Products)
7) Glass Covered under Chapter Heading 7003 to 7008; 7011; 7016 (All Products)
8) Other Machinery Covered under Chapter Heading 8403 to 8487 (All Products)
9) Electricals or Electronic Machineries Covered under Chapter Heading 8501 to 8507, 8511 to 8512; 8514 to 8515; 8517; 8525 to 8536; 8538 to 8547 (All Products)
10) Articles of Steel Covered under Chapter Heading 7301 to 7326 (All Products)
11) Machinery and mechanical appliances used in defence, space and atomic energy sectors excluding any ancillary item or items
12) Turbo jets and turbo propellers;
13) Arms and ammunitions;
14) Propellant powders; prepared explosives, (other than propellant powders); safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators;
15) Radar apparatus, radio navigational aid apparatus and radio remote control apparatus;
16) Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons and parts of such vehicles, that are funded (investment made in the company) to the extent of ninety per cent. or more by the Government or Government Agencies;
17) Port services of stevedoring, pilotage, hauling, mooring, re-mooring, hooking, measuring, loading and unloading services rendered by a Port in relation to a vessel or goods regulated by the Tariff Authority for Major Ports under section 111 of the Major Port Trusts Act, 1963(38 of 1963);
18) Aeronautical services of air traffic management, aircraft operations, ground safety services, ground handling, cargo facilities and supplying fuel rendered by airports and regulated by the Airports Economic Regulatory Authority under the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008);
19) Roads and other infrastructure projects corresponding to para (1) (a) as specified in Schedule VI of Companies Act, 2013;
20) Rubber and allied products being regulated by the Rubber Board.
21) Railway or tramway locomotives, rolling stock, railway or tramway fixtures and fittings, mechanical (including electro mechanical) traffic signalling equipment’s of all kind;
22) Cement
23) Ores and Mineral products
24) Mineral fuels (other than Petroleum), mineral oils etc.;
25) Base metals;
26) Inorganic chemicals, organic or inorganic compounds of precious metals, rare-earth metals of radioactive elements or isotopes, and Organic Chemicals;
27) Jute and Jute Products
28)Edible Oil
29) Construction Industry as per para (5) (a) as specified in Schedule VI of the Companies Act, 2013
30) Health services viz. functioning as or running hospitals, diagnostic centres, clinical centres or test laboratories;
31) Education services, other than such similar services falling under philanthropy or as part of social spend which do not form part of any business.
33) Production, import and supply or trading of following medical devices, namely:-- (i)Cardiac Stents;
- (ii)Drug Eluting Stents;
- (iii) Catheters;
- (iv) Intra Ocular Lenses;
- (v) Bone Cements;
- (vi) Heart Valves;
- (vii) Orthopaedic Implants;
- (viii) Internal Prosthetic Replacements;
- (ix) Scalp Vein Set;
- (x) Deep Brain Stimulator;
- (xi) Ventricular peripheral Shud;
- (xii) Spinal Implants;
- (xiii) Automatic Impalpable Cardiac Deflobillator;
- (xiv)Pacemaker (temporary and permanent);
- (xv) patent ductus arteriosus, atrial septal defect and ventricular septal defect closure device;
- (xvi) Cardiac Re-synchronize Therapy ;
- (xvii) Urethra Spinicture Devices;
- (xviii) Sling male or female;
- (xix) Prostate occlusion device; and
- (xx) Urethral Stents.
If their gross turnover exceed 50 crs and turnover of individual products / Services covered for Maintenance of Cost Records exceed Rs. 25 Crs, he given below NON- Regulated Sectors are covered for Cost Audit from f.y 2014-15
- 1) Coffee & Tea Covered under CETA 0901 to 0902 (All products)
1.1) Milk Powder Covered under Chapter Heading 0402 (All Products) - 2) Insecticide Covered under Chapter Heading 3808 (All Products)
- 3) Plastic & Polymers Covered under Chapter Heading 3901 to 3914; 3916 to 3921; 3925 (All Products)
- 4) Tyres & Tubes Covered under Chapter Heading 4011 to 4013 (All Products)
- 5) Paper Covered under Chapter Heading 4801 to 4802 (All Products)
- 6) Textiles Covered under Chapter Heading 5004 to 5007; 5106 to 5113; 5205 to 5212; 5303; 5310; 5101 to 5408; 5501 to 5516 (All Products)
- 7) Glass Covered under Chapter Heading 7003 to 7008; 7011; 7016 (All Products)
- 8) Other Machinery Covered under Chapter Heading 8403 to 8487 (All Products)
- 9) Electricals or Electronic Machineries Covered under Chapter Heading 8501 to 8507, 8511 to 8512; 8514 to 8515; 8517; 8525 to 8536; 8538 to 8547 (All Products)
- 10) Articles of Steel Covered under Chapter Heading 7301 to 7326 (All Products)
- 11) Machinery and mechanical appliances used in defence, space and atomic energy sectors excluding any ancillary item or items
- 12) Turbo jets and turbo propellers.
- 13) Arms and ammunitions.
- 14) Propellant powders; prepared explosives, (other than propellant powders); safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators;
- 15) Radar apparatus, radio navigational aid apparatus and radio remote control apparatus;
- 16) Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons and parts of such vehicles, that are funded (investment made in the company) to the extent of ninety per cent. or more by the Government or Government Agencies;
- 17) Port services of stevedoring, pilotage, hauling, mooring, re-mooring, hooking, measuring, loading and unloading services rendered by a Port in relation to a vessel or goods regulated by the Tariff Authority for Major Ports under section 111 of the Major Port Trusts Act, 1963(38 of 1963);
- 18) Aeronautical services of air traffic management, aircraft operations, ground safety services, ground handling, cargo facilities and supplying fuel rendered by airports and regulated by the Airports Economic Regulatory Authority under the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008);
- 19) Roads and other infrastructure projects corresponding to para (1) (a) as specified in Schedule VI of Companies Act, 2013;
- 20) Rubber and allied products being regulated by the Rubber Board.
- 21)Railway or tramway locomotives, rolling stock, railway or tramway fixtures and fittings, mechanical (including electro mechanical) traffic signalling equipments of all kind;
- 22) Cement
- 23) Ores and Mineral products
- 24) Mineral fuels (other than Petroleum), mineral oils etc.;
- 25) Base metals;
- 26) Inorganic chemicals, organic or inorganic compounds of precious metals, rare-earth metals of radioactive elements or isotopes, and Organic Chemicals;
- 27) Jute and Jute Products;
- 28) Edible Oil
- 29) Construction Industry as per para (5) (a) as specified in Schedule VI of the Companies Act, 2013
- 30) Health services viz. functioning as or running hospitals, diagnostic centres, clinical centres or test laboratories;
- 31) Education services, other than such similar services falling under philanthropy or as part of social spend which do not form part of any business.
- 32) Production, import and supply or trading of following medical devices, namely:-
- (i)Cardiac Stents;
- (ii)Drug Eluting Stents;
- (iii) Catheters;
- (iv) Intra Ocular Lenses;
- (v) Bone Cements;
- (vi) Heart Valves;
- (vii) Orthopaedic Implants;
- (viii) Internal Prosthetic Replacements;
- (ix) Scalp Vein Set;
- (x) Deep Brain Stimulator;
- (xi) Ventricular peripheral Shud;
- (xii) Spinal Implants;
- (xiii) Automatic Impalpable Cardiac Deflobillator;
- (xiv)Pacemaker (temporary and permanent);
- (xv) patent ductus arteriosus, atrial septal defect and ventricular septal defect closure device;
- (xvi) Cardiac Re-synchronize Therapy ;
- (xvii) Urethra Spinicture Devices;
- (xviii) Sling male or female;
- (xix) Prostate occlusion device; and
- (xx) Urethral Stents.
if their gross turnover exceed 100 crs and turnover of individual products / Services covered for Maintenance of Cost Records exceed Rs. 35 Crs
- 1) New Cost Audit Rules notified on 31st Dec2014 covering Construction,Infrastructure, Health care, education sector, Aviation sector and related services apart from various other sectors.
- 2) Appointment for FY 2014-15 is to be made by the Board and Remuneration is to be confirmed by the AGM. Intimation to the central Government is to be sent in form CRA 2 within 30 days of Board Meeting or 180 days from the close of financial year whichever is earlier.
The Circulars By ministry of corporate affairs regarding cost audit are given below:
- 1) Cost audit orders Date 2nd-may-2011
- 2) Cost audit order Date 3rd-may-2011
- 3) COST AUDIT Report Rules Date 03-jun-2011
- 4) Cost-audit order Date 30th-june-2011
- 5) Cost-audit order Date 24th-jan-2012
- 6) Cost audit order Date 6th-nov-2012
- 7) New Amendment Cost records and cost audit Rules 2014