The Ministry of Corporate Affairs has issued a notification for the much awaited Companies (Cost Records and Audit) Amendment Rules, 2014 in order to insert and substitute some of the provisions contained in the Companies (Cost Records and Audit) Rules, 2014.
The amendments made in the rules are as follows:
1. In Companies (Cost Records and Audit) Rules, 2014 , in rule 2 after clause (a), the following clause shall be inserted:
(aa) Central Excise Tariff Act Heading means the heading referred to in the additional notes in the first schedule to the Central Excise Tariff Act, 1985.
2. In Rule 3 the following rule shall be substituted which contains the express provisions with respect to the Application of the cost records for the purposes of Section 148 of the Companies Act, 2013, the following companies shall be required to maintain the cost records:
a. Companies in the engaged in the production of the goods and services having an overall turnover of Rs. 35 crores or more during the immediate preceding financial year.
3. In Rule 4 the following rule shall be substituted which contains the express provisions with respect to the Applicability for the Cost Audit in which the following companies shall be required to undergo the Cost Audit:
a. Companies in the regulated sectors having annual turnover from all the products and services is Rs. 50 crores or more and the aggregate turnover from the individual product or service is Rs. 25 crores or more.
b. Companies in the Non- Regulated Sectors having annual turnover from all its products and services is Rs. 100 crores or more and the aggregate turnover from the individual product or service is Rs. 35 crores or more.
c. The requirement for this clause shall not apply to the companies whose revenue from exports exceeds 75 per cent of its total revenue and the company which is operating in special economic zone.
4. In Rule 6 after sub rule (3), the following sub rule shallbe inserted:
Any casual vacancy in the office of the Cost Auditor whether due to death or resignation or removal shall be filled by the Board of directors within 30 days of the occurrence of such vacancy and the company shall inform the Central Government in Form CRA-2.
5. Rule 7 of the Companies (Cost Records and Audit ) Rules, 2014 shall be omitted.
The Companies (Cost Records and Audit) Amendment Rules, 2014 can also be accessed at the link given below.
