Ministry of Corporate Affairs


1.   The Draft Companies (Cost Records and Audit) Amendment Rules, 2016 has been placed on the Ministry’s website at It has been decided to invite suggestions/comments on the above draft.

2.   Suggestions/comments on above mentioned draft along with the justifications in brief may be sent latest by 08.03.2016 through email at It is requested that the name, contact number and postal address of the sender be indicated clearly at the time of sending suggestions/comments.

Name, Postal Address, Contact No. of Stake holder ________________

SL.No Rule No. Suggestion (s) Justification (s)

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]



New Delhi, the …………… March, 2016

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. (1) These rules may be called the Companies (cost records and audit) Amendment Rules, 2016.

     (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,-

(i) in rule 3, for the Table A and Table B, the following Table A and Table B shall respectively be substituted, namely:-

 (A) Regulated Sectors

Sl. No.

Industry/ Sector/ Product/ Service CETA Heading (wherever applicable)


Telecommunication services made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature under the authorization/ license issued by the Department of Telecommunications, Government of India under Indian Telegraph Act, 1885 and regulated by the Telecom Regulatory Authority of India under the Telecom Regulatory Authority of India Act, 1997 (24 of 1997); Not applicable.


Generation, transmission, distribution and supply of electricity regulated by the relevant regulatory body or authority under the Electricity Act, 2003 (36 of 2003), other than for captive generation (referred to in the Electricity Rules, 2005); Generation- 2716; Other Activity- Not Applicable


Petroleum products including activities regulated by the Petroleum and Natural Gas Regulatory Board under the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006); 2709 to 2715;

Other Activity- Not Applicable


Drugs and pharmaceuticals; 2901 to 2942; 3001 to 3006.


Fertilisers; 3102 to 3105.


Sugar and industrial alcohol; 1701; 1703; 2207.


(B) Non-regulated Sectors

Sl. No.

Industry/ Sector/ Product/ Service CETA Heading (wherever applicable)


Machinery and mechanical appliances used in defence, space and atomic energy sectors excluding any ancillary item or items;  Explanation. – For the purposes of this sub-clause, any company which is engaged in any item or items supplied exclusively for use under this clause, shall be deemed to be covered under these rules 8401; 8801 to 8805; 8901 to 8908.


Turbo jets and turbo propellers; 8411


Arms, ammunitions and Explosives; 3601 to 3603; 9301 to 9306.


Propellant powders; prepared explosives (other than propellant powders); safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators; 3601 to 3603


Radar apparatus, radio navigational aid apparatus and radio remote control apparatus; 8526


Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons and parts of such vehicles, that are funded (investment made in the company) to the extent of ninety per cent or more by the Government or Government agencies; 8710


Port services of stevedoring, pilotage, hauling, mooring, re-mooring, hooking, measuring, loading and unloading services rendered by a Port in relation to a vessel or goods regulated by the Tariff Authority for Major Ports under section 47A of the Major Port Trusts Act, 1963(38 of 1963); Not applicable.


Aeronautical services of air traffic management, aircraft operations, ground safety services, ground handling, cargo facilities and supplying fuel rendered by airports and regulated by the Airports Economic Regulatory Authority under the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008); Not applicable


Iron and Steel; 7201 to 7229; 7301 to 7326


Roads and other infrastructure projects corresponding to para No. (1) (a) as specified in Schedule VI of the Companies Act, 2013; Not applicable


Rubber and allied products including products regulated by the Rubber Board constituted under the Rubber Act, 1947 (XXIV of 1947). 4001 to 4017


Coffee and tea; 0901 to 0902


Railway or tramway locomotives, rolling stock, railway or tramway fixtures and fittings, mechanical (including electro mechanical) traffic signalling equipment’s of all kind; 8601 to 8608


Cement; 2523; 6811 to 6812


Ores and Mineral products; 2502 to 2522; 2524 to 2526; 2528 to 2530; 2601 to 2617


Mineral fuels (other than Petroleum), mineral oils etc.; 2701 to 2708


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.


Inorganic chemicals, organic or inorganic compounds of precious metals, rare-earth metals of radioactive elements or isotopes, and Organic Chemicals;


2801 to 2853; 2901 to 2942; 3801 to 3807; 3402 to 3403; 3809 to 3824.


Jute and Jute Products; 5303, 5310


Edible Oil; 1507 to 1518


Construction Industry as per para No. (5) (a) as specified in Schedule VI of the Companies Act, 2013 (18 of 2013) Not applicable.


Health services, namely functioning as or running hospitals, diagnostic centres, clinical centres or test laboratories; Not applicable.


Education services, other than such similar services falling under philanthropy or as part of social spend which do not form part of any business. Not applicable.


Milk powder; 0402


Insecticides; 3808


Plastics and polymers; 3901 to 3914; 3916 to 3921; 3925


Tyres and tubes; 4011 to 4013


Paper; 4801 to 4802.


Textiles; 5004 to 5007; 5106 to 5113; 5205 to 5212; 5303; 5310; 5401 to 5408; 5501 to 5516


Glass; 7003 to 7008; 7011; 7016


Other machinery and Mechanical Appliances; 8402 to 8487


Electricals or electronic machinery; 8501 to 8507; 8511 to 8512; 8514 to 8515; 8517; 8525 to 8536; 8538 to 8547.


Production, import and supply or trading of following medical devices, namely:-

(i) Cardiac stents;

(ii) Drug eluting stents;

(iii) Catheters;

(iv) Intra ocular lenses;

(v) Bone cements;

(vi) Heart valves;

(vii) Orthopaedic implants;

(viii) Internal prosthetic replacements;

(ix) Scalp vein set;

(x) Deep brain stimulator;

(xi) Ventricular peripheral shud;

(xii) Spinal implants;

(xiii) Automatic impalpable cardiac deflobillator;

(xiv) Pacemaker (temporary and permanent);

(xv) Patent ductus arteriosus, atrial septal defect and ventricular septal defect closure device;

(xvi) Cardiac re-synchronize therapy ;

(xvii) Urethra spinicture devices;

(xviii) Sling male or female;

(xix) Prostate occlusion device; and

(xx) Urethral stents:

9018 to 9022

(ii) in rule 6, in sub-rule (1), the following proviso shall be inserted, namely: – “Provided that before such appointment is made, the written consent of the cost auditor to such appointment, and a certificate from him or it that the appointment, if made, shall be in accordance with the following conditions shall be obtained from the cost auditor:

(a) the individual or the firm, as the case may be, is eligible for appointment and is not disqualified for appointment under the Act, the Cost and Works Accountants Act, 1959 and the rules or regulations made thereunder;

(b) the individual or the firm, as the case may be, satisfies the criteria provided in section 141 of the Act;

(c) the proposed appointment is within the limits laid down by or under the authority of the Act;

(d) the list of proceedings against the cost auditor or audit firm or any partner of the audit firm pending with respect to professional matters of conduct, as disclosed in the certificate, is true and correct.”

(iii) in rule 6, in sub-rule (3), the following proviso shall be inserted, namely: – “Provided that the cost auditor appointed under these rules may be removed from his office before the expiry of his term only through a resolution passed in the meeting of Board of Directors after recording the reasons for such removal in writing: Provided further that the form CRA-2 to be filed with the Central Government for intimating appointment of another cost auditor shall enclose the relevant Board Resolution to the effect: Provided also that nothing contained in this sub-rule shall prejudice the right of the cost auditor to resign from such office of the company.”

(iv) in rule 6, after sub-rule (3A), following sub-rule shall be inserted, namely:-  “(3B) The cost statements, including other statements to be annexed to the cost audit report, shall be approved by the Board of Directors before they are signed on behalf of the Board by any of the director authorized by the Board, for submission to the cost auditor to report thereon”

(v) in rule 6, for sub-rule (5), the following sub-rule shall be substituted, namely:- “Every cost auditor shall forward his duly signed report to the Board of Directors of the company within a period of one hundred and eighty days from the closure of the financial year to which the report relates and the Board of Directors shall consider and examine such report, particularly any reservation or qualification contained therein.”

(vi) in rule 6, for sub-rule (6), the following sub-rule shall be substituted, namely:-

 “Every company covered under these rules shall, within a period of thirty days from the date of receipt of a copy of the cost audit report, furnish the Central Government with such report alongwith full information and explanation on every reservation or qualification contained therein, in form CRA-4 in Extensible Business Reporting Language (XBRL) format in the manner as specified in the Companies (Filing of Documents and Forms in Extensible Business Reporting language) Rules, 2015 alongwith fees specified in the Companies (Registration Offices and Fees) Rules, 2014.”

[F. No. 1/40/2013-CL-V]  


Jt. Secy., Government of India 

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 425 (E), dated the 30th June, 2014 and amended vide number G.S.R. 01(E), dated the 31st December, 2014 and vide number G.S.R. 486 (E), Dated the 12th June, 2015.

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