Rule 4 - Applicability for cost audit. - Companies (cost records and audit) Rules, 2014

1 [4. Applicability for cast audit. - (1) Every company specified in item (A) of rule 3 shall get its cost records audited in accordance with these rules if the overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees fifty crore or more and the aggregate turnover of the individual product or products or service or services for which cost records are required to be maintained under rule 3 is rupees twenty five crore or more. (2) Every company specified in item (B) of rule 3 shall get its cost records audited in accordance with these rules if the overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees one hundred crore or more and the aggregate turnover of the individual product or products or service or services for which cost records are required to be maintained under rule 3 is rupees thirty five crore or more. (3) The requirement for cost audit under these rules shall not apply to a company which is covered in rule 3, and - (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. ] 2 [ (iii) which is engaged in generation of electricity for captive consumption through Captive Generating PIant. For this purpose, the term Captive Generating Plant shall have the same meaning as assigned in rule 3 of the Electricity Rules, 2005 ] ********** Notes:- 1. Substitued vide F. No. 1/40/2013-CL-V - Dated 31-12-2014 , before it was read as, 4. Applicability for cost audit.- (1) Every company engaged in a strategic industry and covered under sub-clause (b) of clause (A) of rule 3 shall be required to get its cost records audited in accordance with these rules. (2) In the case of a multi-product or a multi services company specified in sub-clause (b) of clause (B) and sub-clause (b) of clause (C) of rule 3, the requirement for cost audit shall apply to a product or a service for which the individual turnover (from such specific product or such specific service) is rupees one hundred crore or more; (3) In the case of a company producing any one specific product or service specified in subclause (b) of clause (B) and sub-clause (b) of clause (C) of rule 3, the requirement for cost audit shall apply if the net worth of the company is rupees five hundred crore or more or the turnover from such product or such service is rupees one hundred crore or more. (4) In the case of a company engaged in medical products or devices referred to in subclause (b) of clause (D) of rule 3, - (i) which has multiple products or devices (i.e. a company producing, importing and supplying or trading in more than one medical device or product), the requirement for cost audit shall apply to a medical device or product for which the individual turnover (from such specific medical device or product) is rupees ten crore or more, or one third of the turnover, whichever is less; (ii) which has only one product or device (i.e. a company producing, importing and supplying or trading one medical device or product), the requirement for cost audit shall apply if the net worth of the company is rupees one hundred fifty crores or more or the turnover is rupees twenty five crores or more. 2. Inserted vide F. No. 1/40/2013-CL-V - Dated 14-7-2016 ,