Companies (Cost Records and Audit) Rules, 2014 - Notified
GOVERNMENT has notified the Companies (Cost Records and Audit) Rules, 2014. These rules supersede eight sets of rules notified under the Companies Act, 1956. The new rules specify four classes of companies which shall be required to maintain cost records and who will be subject to cost audit.
Every company engaged in a strategic industry and covered under these rules shall be required to get its cost records audited. They are required to appoint a cost auditor.
The requirement for cost audit under these rules shall not be applicable to a company:
(i) whose revenue from exports, in foreign exchange, exceeds seventy five per cent of its total revenue or
(ii) which is operating from a special economic zone.