The Companies Cost Records and Audit Amendment Rules by MCA

The Comp. Cost Records and Audit Amendment Rules 2015. Ministry of Corporate Affairs Issued New Notification for The Companies (Cost Records and Audit) Amendment Rules, 2015. Here we are providing complete news issued By MCA. Now you can scroll down below and Read full News.

The Comp. Cost Records and Audit Amendment Rules 2015

G.S.R…………….. (E).- In exercise of the powers conferred by sub-sections (1) and (2) of section 469 and section 148 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (cost records and audit) Rules, 2014, namely:

(1)These rules may be called the Companies (cost records and audit) (Amendment) Rules, 2015.

(2)They shall come into force from the date of their publication in the official gazette.

2. In the Companies (cost records and audit) Rules, 2014, an the Annexure, for Forms CRA 2 and CRA- 4, the following forms shall respectively be substituted, namely:

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Cost Records and Cost Audit Applicability

Section 148 of the Companies Act, 2013 contains provisions relating to the cost records and cost audit applicability under the Companies Act. The salient feature of section 148 are summarized hereunder –

  • Section 148 (1) empowers the Central Government to direct the companies specified in the production of goods or provisions of service to include particulars relating to utilization of material or labour or other items of cost in the books of accounts of the company;
  • List of specified companies, which needs to maintain the cost records, is provided under Table A and Table B of rule 3 of the Companies (Cost Records and Audit) Rules, 2014;
  • Section 148 (2) empowers the Central Government to direct, based on the net worth or turnover of the company, audit of cost records of the specified class of companies;
  • Rule 4 of the Companies (Cost Records and Audit) Rules, 2014 contains the provisions relating to the companies which are liable to get their cost records audited;
  • Cost audit shall be conducted by the cost accountant who is appointed by the Board;
  • In case of any default on the part of the company, it shall be punishable with the fine of an amount not less than INR 25,000, however, such fine cannot be more than INR 5 Lakhs. Further, every officer, in default, of the company shall be punishable with imprisonment for a term up to 1 year or with the fine not less than INR 10,000, however, the same cannot be more than INR 1,00,000;
  • In case the cost auditor is in default, he shall be punishable in the manner as provided under section 147 (2) to section 147 (4).