Cost Auditor Applicability and Forms required to be filed - MCA

Applicability of Cost Auditor:

Applicable Section: 148 of the Companies Act 2013

Regulated Sectors: 

Overall turnover of the Products and Services is 50 Crore or More 

and

Aggregate turnover of Individual product or Services is Rs.25 Crore or More

Non-Regulated Sectors:

Overall turnover of the Products and Services is 100 Crore or More 

and

Aggregate turnover of Individual product or Services is Rs.35 Crore or More

Appointment of Cost Auditor:

The applicable companies have to appoint cost auditor within 180 days from the beginning of the financial year.

The appointment of Cost Auditor is to filed with ROC within 30days from the date of appointment in E-form CRA-2.

Reporting:

Every Cost Auditor have to submit Cost Audit Report to the Board of Directors within 180 days form the closure of financial year.

The cost audit report is to filed by the company to ROC in E-form CRA-4 within 30 days from the date of Receipt of Cost Audit Report.

Other Disclosures requirements:

The cost audit report should be annexed to the Board’s Report.

Qualifications and Opinions to be disclosed in the Board’s Report.

Remuneration payable to the cost auditor is to be ratified by the member in the consequent Annual General Meeting.

List of Regulated Sectors:

1. 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 (other than broadcasting services) and regulated by the Telecom Regulatory Authority of India under the Telecom Regulatory Authority of India Act, 1997 (24 of I997);
2. 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);
3. Petroleum products regulated by the Petroleum and Natural Gas Regulatory Board under the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006);
4. Drugs and pharmaceuticals
5. Fertilisers
6. Sugar and industrial alcohol
7. List of Non-regulated Sectors:
8. 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.
9. Turbo jets and turbo propellers;
10. Arms and ammunitions;
11. Propellant powders; prepared explosives (other than propellant powders); safety fuses; detonating fuses; percussion or detonating caps; igniters; electric detonators;
12. Radar apparatus, radio navigational aid apparatus and radio remote control apparatus
13. Tanks and other armored fighting vehicles, motorized, 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
14. 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 111 of the Major Port Trusts Act, 1963 (38 of 1963
15. 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)
16. Steel
17. Roads and other infrastructure projects corresponding to para No. (1) (a) as specified in Schedule VI of the Companies Act, 2013
18. Rubber and allied products being regulated by the Rubber Board constituted under the Rubber Act, 1947 (XXIV of 1947)
19. Coffee and tea
20. Railway or tramway locomotives, rolling stock, railway or tramway fixtures and fittings, mechanical (including electro mechanical) traffic signalling equipment’s of all kind
21. Cement
22. Ores and Mineral products
23. Mineral fuels (other than Petroleum), mineral oils etc
24. Base metals
25. Inorganic chemicals, organic or inorganic compounds of precious metals, rare-earth metals of radioactive elements or isotopes, and Organic Chemicals
26. Jute and Jute Products
27. Edible Oil
28. Construction Industry as per para No. (5) (a) as specified in Schedule VI of the Companies Act 2013 (18 of 2013)
29. Health services, namely functioning as or running hospitals, diagnostic centres, clinical centres or test laboratories;
30. Education services, other than such similar services falling under philanthropy or as part of social spend which do not form part of any business.
31. Milk power
32. Insecticides
33. Plastics and polymers
34. Tyres and tubes
35. Paper
36. Textiles
37. Glass
38. Other machinery
39. Electricals or electronic machinery
40. 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) Orthopedic 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: