Cost Audit Report & Record Rules

1. -CMA Darshan Vora
9821125113/9867565486
N.Ritesh & Associates

2. Industries
Covered
Regulated
Sectors- Part
A
Non Regulated
Sectors –Part B

3. Partic
ulars
Industries Covered Regulatory
Authority
CETA
1 Telecom Services TRAI NA
2 Generation, Transmission,
Distribution & Supply of Electricity
Relevant
Regulatory or
Authority under
Electricity Act
NA
3 Sugar 1701,1703,2
207
4 Fertilizers 3102 to 3105
5 Drugs & Pharmaceuticals 2901 to
2942, 3001
to 3006
6 Petroleum Products Petroleum &
Natural Gas
Regulatory
Board
2709 to 2715

4. There are around 33 Industries Covered . In
Which Infrastructure, Education & Health
Services are newly added where as Some of
the Industries like food & Beverages
,Automobiles, Paints & Varnishes are out of
Preview of Cost Audit & Records from FY
2014-15

5. Particulars Industries Covered Regulatory Authority CETA
1 *Machinery &
Mechanical
Appliances used in
Atomic,Defense,Spac
e ,atomic Energy
Sector excluding
Ancillary Items
8401 to 8402,8801
to 8805, 8901 to
8908
2 Turbo Jets &
Propellers
8411
3 Arms & Ammunition 3601 to 3603, 9301
to 9306
4 Propellant Powder &
Explosives
3601 to 3603
5 Radar Apparatus 8526
6 Tanks & Other
Armored Vehicles
8710
7 *Port Services Tariff Authority
of Major Ports
NA

6. Particulars Industries
Covered
Regulatory
Authority
CETA
8 *Aeronautical
Services
Airports Economy
Regulatory Authority
NA
9 Steel 7201 to 7229,7301
to 7326
10 *Roads & Other
Infrastructure
Projects
NA
11 Rubber & Rubber
Products
Rubber Board 4001 to 4017
12 Coffee & Tea 0901 to0902
13 *Railway Tramway
Locomotives
8601 to 8608
14 Cement 2523,6811 to 6812
15 Ores & Minerals 2502 to 2522, 2524
to 2526, to 2528 to
2530, 2601 to 2617

7. Particulars Industries Covered Regulatory
Authority
CETA
16. Mineral Fuels – other then mineral
Oil
2701 To 2708
17. Base Metals 7401 to 7403, 7405 to
7413, 7419, 7501 to
7508, 7601 to 7614,
7801 to 7802, 7804 ,
7806,7901 to
7905,7907, 8001,8003,
8007, 8101 to 8113
18 * Organic & Inorganic Chemicals 2801 to 2853, 2901 to
2942, 3801 to
3807,3402, 3403, 3809
to 3824
19 Jute & Jute Products 5303,5310
20 Edible Oil 1507 to 1518
21 Construction Industry NA
22 *Health Services NA
23 * Education Services NA
24 Milk Powder 0402

8. Particulars Industries Covered Regulatory Authority CETA
25 Insecticides 3808
26 Plastics & Polymers 3901 to 3914, 3916
to 3921, 3925
27 Tyres & Tubes 4011 to 4013
28 Paper 4801 to 4802
29 Textiles 5004 to 5007, 5106
to 5113, 5205 to
5212, 5303,5310,
5401 to 5408, 5501
to 5516
30 Glass 7003 to 7008, 7011,
7016
31 Other Machinery 8403 to 8487
32 Electrical &
Electronic Machinery
8501 to 8507,8511
,8512,8514,8515,85
17,8525 to 8536,
8538 to 8547
33 *Production ,Import ,
Supply or Trading of
Medical Devices
9018 to 9022

9. Note all the Industries marked in * are to be
Referred from Notification as it had huge
Description of Coverage of Product/Service.
Note NA in CETA Chapter means there is no
Excise Code but that Industry is Covered in
Audit

10. As per Section 148 ,Sub Section (1) of the Companies Act ,2014 the
company needs to maintain Cost Records including Foreign
Company as per Definitions in Clause 42 & Section 2. If the
Conditions below are fulfilled immediately in previous
Financial year
Particulars Industry Overall
Turnover from
all the
Products &
Services
1 Regulated
Sector
> 35 Crores
2 Non Regulated
Sector
> 35 Crores

11. All the Four Conditions Should be Fulfilled in Immediate
Preceding Financial Year.
* Product = First Four Digit CETA Code
Industry Condition 1
(Turnover
Company as
Whole)
Condition 2
(Turnover
of Individual
Product
/Products&
Services/ser
vices
Condition 3
( Turnover
from Export
from foreign
currency % )
Condition 4
(Operating
in SEZ)
Regulated > 50 Crs > 25 Crs < 75% No
Non
Regulated
Sector
> 100 Crs > 35 Crs < 75 % No

12. Two Forms are Substituted
Form Name Purpose Remarks
CRA - 1 Maintenance of Records
are Defined regarding
all the Expenses
CRA -3 Cost Audit Annexure 1) Its is slightly
modified as
Compared to Cost
Audit Report of Co
Act 2011
2) Now Report shall be
made on the Basis of
4 Digit CETA Chapter
& Not on the Basis of
Product Group Wise

13. New Cost Audit Report are Divided in 4 PartsParticulars Section Annexure No as
per Companies
Act 2014
Annexure as Per
Companies Act
2011
Remarks
General
Information
Part A Annexure 1 Annexure 1
Details of Cost
Auditor
Part A Annexure 2 Annexure 2
Cost Accounting
Policy
Part A Annexure 3
Product or
Service Details
Part A Annexure 4 Annexure 3 As Earlier we had
to Report as Per
Product code now
we need to
Report as Per
CETA Chapter.
2) We also need
to state the
difference if any
as if the Turnover
as per Excise &
Service Tax are
different from
Financial Records

14. Part B is For Manufacturing Sector ,Part C is for Service Industry but
annexure are Same .Reporting is to be done for Each & Ever
product Coverd in Cost Audit
Particulars Section Annexure No as
per Companies
Act 2014
Annexure as Per
Companies Act
2011
Remarks
Quantitative
Information
Part B/Part C Annexure 1 Annexure 4
Abridge Cost
Statement
Part B/Part C Annexure 2 Annexure 5
Material
Consumed
Part B/Part C Annexure 2 A Annexure 5 A
Utility details Part B/Part C Annexure 2 B Annexure 5 B
Industry Specific
Details
Part B/Part C Annexure 2 B Annexure 5 C

15. Particulars Section Annexure No as
per Companies
Act 2014
Annexure as Per
Companies Act
2011
Remarks
Product & Service
Profitability
Statement
Part D Annexure 1 NA
Profit Reconciliation Part D Annexure 2 Annexure 7
Value Addition Part D Annexure 3 Annexure 8
Financial Position Part D Annexure 4 Annexure 9
Related Party
Transaction
Part D Annexure 5 Annexure 10
Reconciliation of
Indirect Taxes
Part D Annexure 6 Annexure 11

16. Source -
http://www.mca.gov.in/Minist…/…/Amendment_Rules_01012014.pdf