Cost Records and Cost Audit (Section 148 of Companies Act, 2013 & Companies (Cost Records and

Audit), Rules, 2014

Cost Records Cost Audit

Sec. 148(1) Rule 3 of Companies (Cost Requirement Cost Auditor Cost Audit report
C.G. may by order Records & Audit) Rules, 2014

Companies including foreign Sec. 148(2) Rule 4 of Companies (Cost Sec. 148(3)
In respect of such Sec. 148(5) & 148(6)
companies Records & Audit) Rules, 2014 Cost Audit shall be conducted
companies C.G. may be order Cost Auditor shall submit
his report to
Cost Records are required to by Cost Accountant
Engaged in Engaged in direct for the be audited BOD
Appointed by BOD
production of production of goods Company shall
audit of cost If overall annual turnover
prescribed goods Or in prescribed manner
providing services records of within 30 days of date of
Or From all products and No person appointed u/s 139
providing prescribed as specified receipt of report
companies services
services As an auditor furnish such report to CG
Regulated Sector Non covered u/s
Regulated In immediate preceding
direct that 148(1) Shall be appointed as cost along with full information &
Sector Financial Year auditor
Telecommunication Steel explanation.
Electricity Rubber Rule 6 of Companies (Cost Rule 6 of Companies
particulars relating to having In case of
Petroleum Cement Records & Audit) Rules, (Cost Records & Audit)
prescribed net Regulated Non Regulated 2014
Sugar etc. Rules, 2014
Material Drugs and Pharma worth or Sector Sector Cost Auditor shall be appointed Cost Auditor shall submit
turnover >50 Cr. >100 Cr.
Labour Fertilisers within 180 days of commencement Cost Audit Report
or of every financial year.
Other items of cost Having turnover > 35 Cr. in a manner AND Company Shall inform the cost in Form CRA-3.
auditor of his appointment. Cost Auditor shall forward
Shall be included in During immediate preceding Turnover of Individual Company Shall file a notice with CG report to BOD
specified in that
financial year product or service in Form CRA-2 within 30 days of
order
the books of accounts Board meeting or within 180 days Within 180 days from
shall include cost records in of commencement of FY whichever closure of FY.
their books of accounts >25 Cr. >35 Cr.
is earlier. Report along with
Cost Auditor appointed as such information & explanation to
Requirement of Cost Audit shall not apply to a company shall continue till expiry of 180
Every Company under these Rules shall In respect of each of
Exemption

days of closure of FY or till Shall be furnished to CG in

its Financial year
Rule 5

Rule 4(3)

Whose revenue from exports in foreign exchange submission of cost audit report. Form CRA-4.
exceeds 75% of its total revenue
Maintain Cost records in Form CRA - 1 or
which is operating from SEZ. Compiled by: CA. Pankaj Garg

Compiled by: CA. Pankaj Garg Page 1