MINISTRY OF CORPORATE AFFAIRS (MCA)

The Companies(Cost Records and Audit) Amendment Rules, 2014: The Central Government has made an amendment to Companies (Cost Records & Audit) Rules, 2014. The rules are called Companies (Cost Records & Audit) Amendment Rules, 2014  and shall come into effect from 31st December, 2014.

Application of Cost Records: Cost records for products and services shall be included in the books of accounts  of Companies, including foreign companies defined in clause (42) of Section 2 of the Act, engaged in the production of goods or providing  services as specified, having an overall turnover from all its products and services of Rs. 35 crore or more during the immediately preceding financial year

Applicability of Cost Audit: Every company specified in item (A) of Rule 3 shall get its cost records audited in accordance with these rules if the overall annual turnover of the Company from all its products and services during the immediately preceding financial year if Rs. 50 crore or more and the aggregate turnover of the individual product or service or services for which cost records are required to be maintained under Rule 3 is Rs. 25 crore or more.

Every company specified in item (B) of Rule 3 shall get its cost records audited in accordance with these rules if the overall annual turnover of the Company from all its products and services during the immediately preceding financial year if Rs. 100 crore or more and the aggregate turnover of the individual product or service or services for which cost records are required to be maintained under Rule 3 is Rs. 35 crore or more.
 

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