New Cost Audit Orders issued by MCA in supersession to the earlier Cost Audit Orders issued till date
CMA Krishna Dasan.A
Mob:98711-28831
Email: aknair2002@cmaglobal.net.in
Consequent upon notification of the Product or Activity Group classification published vide S.O. 1747(E) dated 7th August, 2012 and in supersession of the earlier Orders issued vide even number dated 2nd May 2011, 3rd May 2011, 30th June 2011 and 24th January 2012, the Central Government hereby makes the following Order-
A. Any Company engaged in the production, processing, manufacturing or mining of the products/activities (Mentioned in Table 1) shall get its Cost Accounting Records audited
With Effect from: January 1st, 2013
Applicability: Aggregate value of Net Worth > Rs 5 crores or Aggregate value of Turnover > Rs 20 crores or Equity/Debt securities are listed in stock exchange
Sl.No.
|
Product or
Activity Group Code
|
Name of the
Product or Activity Group
|
Central Excise
Tariff Act (CETA) Chapter Headings covered in the Product Group or Activity
Group
|
1
|
1020
|
Sugar and Sugar
Products
|
1701 to 1702
|
2
|
1021
|
Molasses
|
1703
|
3
|
1027
|
Ethyl Alcohol
and Other Spirits
|
2207
|
4
|
2004
|
Petroleum Oils –
Crude
|
2709
|
5
|
2005
|
Petroleum Oils –
Refined
|
2710
|
6
|
2006
|
Petroleum Gases
and other Gaseous Hydrocarbons
|
2711
|
7
|
2007
|
Other Petroleum
Products
|
2712-2715
|
8
|
2008
|
Electrical
Energy
|
2716
|
9
|
2012
|
Bulk Drugs
|
2901 to 2942
|
10
|
2015
|
Pharmaceutical
Products
|
3001 to 3006
|
11
|
2016
|
Animal or
Vegetable Fertilisers
|
3101
|
12
|
2017
|
Mineral or
chemical Fertilisers- Nitrogenous
|
3102
|
13
|
2018
|
Mineral of
Chemical Fertilisers – Phosphatic
|
3103
|
14
|
2019
|
Mineral or
Chemical Fertilisers – Potassic
|
3104
|
15
|
2020
|
Mineral or
Chemical Fertilisers – Others
|
3105
|
16
|
5101
|
Basic telephone
Services –Wired and WLL
|
Not Applicable
|
17
|
5102
|
Cellular Mobile
Telephone Services – Wireless and WLL
|
Not Applicable
|
18
|
5103
|
Internet and
Broadband services
|
Not Applicable
|
19
|
5104
|
National Long
Distance Services
|
Not Applicable
|
20
|
5105
|
International
Long Distance Services
|
Not Applicable
|
21
|
5106
|
Public Mobile
Radio Trunk Services
|
Not Applicable
|
22
|
5107
|
Global Mobile
Personal Communication Services
|
Not Applicable
|
23
|
5108
|
Passive Telecom
Infrastructure and Tower facilities
|
Not Applicable
|
24
|
5109
|
Cable Landing
Stations
|
Not Applicable
|
25
|
5121
|
Broadcasting and
related services
|
Not Applicable
|
26
|
5141
|
Other
Communication services not elsewhere specified
|
Not Applicable
|
27
|
5406
|
Transmission or
distribution of electricity
|
Not Applicable
|
B. Any Company engaged in the production, processing, manufacturing or mining of
the products/activities (Mentioned in Table 2) shall get its Cost Accounting Records
audited
With Effect from: January 1st, 2013
Applicability: Aggregate value of Turnover > Rs 100 crores or Equity/Debt securities are listed in stock
exchange
Applicability: Aggregate value of Turnover > Rs 100 crores or Equity/Debt securities are listed in stock
exchange
Sl.No.
|
Product or Activity Group Code
|
Name of the Product or Activity Group
|
Central Excise Tariff Act (CETA) Chapter Headings
covered in the Product Group or Activity Group
|
1
|
1002
|
Meat and Meat Products
|
0201 to 0210, 0410, 1601 to 1603
|
2
|
1003
|
Marine Products
|
0301 to 0307, 1604 to 1605
|
3
|
1004
|
Milk and Milk Products
|
0401 to 0406
|
4
|
1005
|
Poultry and Related Products
|
0407 to 0408
|
5
|
1006
|
Bee Products
|
0409
|
6
|
1010
|
Vegetables
|
0701 to 0714
|
7
|
1011
|
Fruits and Nuts
|
0801 to 0814
|
8
|
1012
|
Coffee and Coffee Products
(incl.210111)
|
0901
|
9
|
1013
|
Tea and Tea Products(inc.210120)
|
0902
|
10
|
1014
|
Spices – Processed or unprocessed
|
0903 to 0910
|
11
|
1015
|
Cereals , Flour and Products of Cereals
|
1001 to 1008, 1101 to 11009
|
12
|
1016
|
Oil Seeds and Products of Oil Seeds
|
1201 to 1208
|
13
|
1017
|
Other Seeds and Plants
|
1209 to 1214
|
14
|
1018
|
Vegetable Saps or Products
|
1301 to 1302, 1401, 1404
|
15
|
1019
|
Animal or Vegetable Fats and Oils
|
1501 to 1518, 1520 to 1522
|
16
|
1022
|
Sugar Confectionery or Chocolates
|
1704 , 1806
|
17
|
1023
|
Cocoa Products
|
1801 to 1805
|
18
|
1024
|
Prepared Food Products
|
1901 to 1905, 2001 to 2009, 2101 to 2106, 2501
|
19
|
1025
|
Mineral Water and Aerated Drinks
|
2201 to 2202
|
20
|
1026
|
Alcohol Beverages
|
2203 to 2206, 2208
|
21
|
1028
|
Vinegar
|
2209
|
22
|
1029
|
Food Residues
or Prepared Animal Feed
|
2301 to 2309
|
23
|
1030
|
Unmanufactured and Manufactured Tobacco
|
2401, 2403
|
24
|
1031
|
Tobacco Products
|
2402
|
25
|
2001
|
Mineral Products
|
2502 to 2522, 2524 to 2526, 2528 to 2530, 2601 to
2621
|
26
|
2002
|
Cement
|
2523
|
27
|
2003
|
Mineral Fuels (other than Petroleum)
|
2701 to 2708
|
28
|
2009
|
Chemical Elecments
|
2801 to 2805
|
29
|
2010
|
Inorganic Chemicals and their derivatives
|
2806 to 2837, 2839 to 2850 , 2852 to 2853
|
30
|
2011
|
Organic Chemicals and their Derivatives (excluding
Bulk Drugs)
|
2901 to 2942
|
31
|
2013
|
Albuminoidal Substances, Starches, Glues and Enzymes
|
3501 to 3507
|
32
|
2014
|
Miscellaneous Chemical Products
|
3801 to 3807 , 3809 to 3825
|
33
|
2021
|
Tanning Substances
|
3201 to 3202
|
34
|
2022
|
Colours, Dyes and Pigments
|
3203 to 3207, 3212
|
35
|
2023
|
Paints and Varnishes
|
3208 to 3211
|
36
|
2024
|
Inks and Colours
|
3213 , 3215
|
37
|
2025
|
Plasters and Fillers
|
3214
|
38
|
2026
|
Essential Oils
|
3301 to 3302
|
39
|
2027
|
Personal Care Products
|
3303 to 3307, 8212, 9615 to 9616
|
40
|
2028
|
Soaps , Detergents and Cleaning Agents
|
3401 to 3402
|
41
|
2029
|
Lubricating Preparations
|
3403
|
42
|
2030
|
Waxes and Wax Products
|
3404 to 3407
|
43
|
2031
|
Explosives
|
3601 to 3603
|
44
|
2032
|
Fireworks, Matches, and Combustible Materials
|
3604 to 3606
|
45
|
2033
|
Photographic and Cinematographic Goods
|
3701 to 3707
|
46
|
2034
|
Insecticides
|
3808
|
47
|
2035
|
Chemicals –Plastics and Polymers
|
3901 to 3915
|
48
|
2036
|
Articles of Plastics and Polymers
|
3916 to 3926
|
49
|
2037
|
Rubber and Rubber Products
|
4001 to 4010, 4014 to 4017
|
50
|
2038
|
Rubber Tyres and Tubes
|
4011 to 4013
|
51
|
3001
|
Raw Hides, Skins and Leather
|
4101 to 4107, 4112 to 4115
|
52
|
3002
|
Leather Products
|
4201 to 4203, 4205 to 4206
|
53
|
3004
|
Wood and Wood Products
|
4401 to 4421
|
54
|
3007
|
Pulp of Wood and other Substances
|
4701 to 4707
|
55
|
3008
|
Newsprint
|
4801
|
56
|
3009
|
Paper and Paperboard
|
4802 to 4813
|
57
|
3010
|
Articles of Paper and Paperboard
|
4814, 4816 to 4823
|
58
|
3012
|
Silk
|
5001 to 5003
|
59
|
3013
|
Silk Yarn
|
5004 to 5006
|
60
|
3014
|
Silk Fabrics
|
5007
|
61
|
3015
|
Wool
|
5101 to 5105
|
62
|
3016
|
Wool Yarn
|
5106 to 5110
|
63
|
3017
|
Wool Fabrics
|
5111 to 5113
|
64
|
3018
|
Cotton
|
5201 to 5203
|
65
|
3019
|
Sewing Thread
|
5204 , 5401
|
66
|
3020
|
Cotton Yarn
|
5205 to 5207
|
67
|
3021
|
Cotton Fabrics
|
5208 to 5212
|
68
|
3022
|
Other Textile Yarns or Fabrics
|
5301 to 5303, 5305 to 5308
|
69
|
3023
|
Other Textile Fabrics
|
5309 to 5311
|
70
|
3024
|
Synthetic Yarns or Fibers
|
5402 to 5406, 5501 to 5511, 5601 to 5609
|
71
|
3025
|
Synthetic Fabrics
|
5407 to 5408, 5512 to 5516
|
72
|
3026
|
Carpets and Textile Floor Coverings
|
5701 to 5705
|
73
|
3027
|
Other Textile Fabrics or Products
|
5801 to 5811, 5901 to 5911, 6301, 6305 to 6310
|
74
|
3028
|
Knitted or Crocheted Fabrics
|
6001 to 6006
|
75
|
3029
|
Apparel and Clothing
|
6101 to 6117, 6201 to 6217
|
76
|
3030
|
Furnishings
|
6302 to 6304
|
77
|
3031
|
Footwear and Parts thereof
|
6401 to 6406
|
78
|
3032
|
Headgear and Parts thereof
|
6501 to 6502, 6504 to 6507
|
79
|
3036
|
Articles of Stones , Plaster, Cement, Asbestos and
Mica
|
6801 to 6815
|
80
|
3037
|
Ceramic Products
|
6901 to 6914
|
81
|
3038
|
Glass and Glass Products
|
7001 to 7011, 7013 to 7020
|
82
|
3039
|
Pearls , Diamonds , Stones and Jewellary Articles
|
7101 to 7118
|
83
|
4001
|
Primary Ferrous Materials
|
7201 to 7205
|
84
|
4002
|
Iron and Non-Alloy Steel
|
7206 to 7217
|
85
|
4003
|
Stainless Steel
|
7218 to 7223
|
86
|
4004
|
Other Alloy or Non Alloy Steel
|
7224 to 7229
|
87
|
4005
|
Steel products
|
7301 to 7326
|
88
|
4006
|
Copper and Copper Products
|
7401 to 7413, 7415, 7418 to 7419
|
89
|
4007
|
Nickel and Nickel Products
|
7501 to 7508
|
90
|
4008
|
Aluminium and Aluminium Products
|
7601 to 7616
|
91
|
4009
|
Lead and Lead Products
|
7810 7802;7804;7806
|
92
|
4010
|
Zinc and Zinc Products
|
7901 to 7905;7907
|
93
|
4011
|
Tin and Tin Products
|
8001 to 8003;8007
|
94
|
4012
|
Other
Base Metals and
their Products
|
8101 to 8113;8301 to 8311
|
95
|
4013
|
Hand Tools
|
8201 to 8211;8213 to 8215
|
96
|
4014
|
Nuclear Reactors and Accessories
|
8401
|
97
|
4015
|
Boilers and Acessories
|
8402 to 8404
|
98
|
4016
|
Engines or Motors and parts thereof
|
8405 to 8412
|
99
|
4017
|
Machinery and Mechancial applianes
|
8413 to 8484;8486 to 8487
|
100
|
4018
|
Electric Motors,Generators,Transformers and parts
thereof
|
8501 to 8505
|
101
|
4019
|
Batteries and Accumulators
|
8506 to 8507
|
102
|
4020
|
Electrical and Electronic Equipments or Appliances
|
8508 to 8519;8521 to 8523;8525 to 8548
|
103
|
4021
|
Railway Rolling Stock
|
8601 to 8606
|
104
|
4021
|
Parts of Railway Rolling Stock
|
8607
|
105
|
4023
|
Railway Track Fixtures and Fittings
|
8608
|
106
|
4024
|
Containers
|
8609
|
107
|
4025
|
Commercial Vehicles (3 or more wheels)
|
8701;8704 to 8707;8709;8716
|
108
|
4026
|
Passenger Vehicles (4 or more wheels)
|
8702 to 8703
|
109
|
4027
|
Parts and Accessories of Vehicles
|
8708;8714
|
110
|
4029
|
Passenger Vehicles (2 and 3 Wheelers) - Motorised
|
8711;8713
|
111
|
4030
|
Passenger Vehicles (2 or 3 Wheelers) – Non Motorised
|
8712;8713;8715
|
112
|
4031
|
Non-powered Aircraft and parts thereof
|
8801;8803
|
113
|
4032
|
Aircraft,Spacecraft and parts thereof
|
8802 to 8803;8805
|
114
|
4033
|
Parachutes and Rotochutes
|
8804
|
115
|
4034
|
Ships and Boats
|
8901 to 8904
|
116
|
4035
|
Floating Structures
|
8905 to 8908
|
117
|
4036
|
Optical Equipments and parts thereof
|
9001 to 9005;9012 to 9013;9033
|
118
|
4037
|
Photographic or Cinematographic Equipment and parts
thereof
|
9006 to 9008;9010 to 9011;9033
|
119
|
4038
|
Measuring Instruments and parts thereof
|
9014 to 9017;9023 to 9033
|
120
|
4039
|
Surgical or Medical Instrument and parts thereof
|
9018 to 9022;9033
|
121
|
4040
|
Clocks or Watches and parts thereof
|
9101 to 9114
|
122
|
4041
|
Musical Instruments and Parts thereof
|
9201 to 9202;9205 to 9209
|
123
|
4043
|
Medical or Vehicular or other Furniture and Mattress
and parts thereof
|
9401 to 9404
|
124
|
4044
|
Lights and Fittings
|
9405
|
125
|
4045
|
Prefabricated Buildings
|
9406
|
126
|
4046
|
Toys,games and sports Equipments
|
9503 to 9508
|
127
|
4047
|
Stationery Items
|
9608 to 9612
|
128
|
4048
|
Miscellaneous manufactured articles
|
9601 to 9607;9613 to 9614;9617 to 9618
|
Notes:
1.
(a) The
Product or Activity Groups referred to in Table‐I & II above shall include
all products/activities included in the corresponding CETA Chapter Headings
mentioned therein irrespective of whether Central Excise Duty is levied or not.
(b) In respect of
those Product or Activity Groups mentioned in Table‐I above corresponding to
which no CETA Chapter Headings are applicable, the product/activity groups
shall include all such activities that fall under the meaning of the respective
product/activity group and are covered by the related Cost Accounting Records
Rules mentioned in para 2 above.
(c) In case of all
such activities that are covered under the Cost Accounting Records Rules
mentioned in para 2 above that are also covered under cost audit but for which
no Product or Activity Group has been indicated in Table‐I above, companies
would use the appropriate Product or Activity Group code as given in the
notification issued vide S.O. 1747(E) dated 7th August, 2012.
(d) Any company
engaged in the production, processing or manufacturing of such inorganic or organic
chemicals or any other substances that are primarily meant for pharmaceutical
applications/use and are covered under the Cost Accounting Records
(Pharmaceutical Industry) Rules 2011 shall be subject to cost audit as per the
terms mentioned in para 2 above, irrespective of whether these are covered in
the Product or Activity Groups mentioned in Table‐II above.
(e) Any company
engaged in the storage, transportation or distribution of crude oil or gases or
biogas or any or all types of petroleum products, and is covered by the Cost
Accounting Records (Petroleum Industry) Rules, 2011 shall be subject to cost
audit as per the terms mentioned in para 2 above.
(f) Product Group
No. 2008 – Electrical Energy mentioned in Table‐I above would mean and be
understood as generation of electrical energy or generation of electricity.
(g) Product Group
No. 1026 – Alcoholic Beverages mentioned in Table‐II above would mean and
include all products/activities covered in the Chapter Headings 2203 to 2208 of
the Customs Tariff Act, 1975 (51 of 1975), excluding products of CETA Chapter
Heading 2207 to the extent these are covered in the Cost Accounting Records
(Sugar Industry) Rules, 2011.
(h) In case of any
Product or Activity Group where multiple units of measurement are in use for
the products or activities covered therein, then the relevant Product or
Activity Group shall be repeated against each unit of measurement separately.
(i) Wherever same
CETA Chapter Headings have been shown against two or more Product or Activity
Groups, the actual details shall be shown against the most ppropriate Product
or Activity Group.
2. Every company to which these orders
apply shall get its cost accounting records audited in respect of each of its
financial year commencing on or after the 1st day of January 2013, irrespective
of whether the same was covered or not, either under the company specific cost
audit orders issued prior to 31st March 2011 or under the industry specific
cost audit orders issued after 1st April 2011 till date.
3. All companies that were earlier
covered under industry specific orders dated 2nd May 2011 or 30th June 2011 or
24th January 2012 [subject to their meeting with the qualifying criteria
mentioned therein] shall continue to comply with the earlier orders upto the
financial year commencing prior to the 1st day of January 2013 and in
continuum, with these orders in respect of each of its financial year
commencing on or after the 1st day of January 2013.
4. Every company to which these orders
apply shall follow the revised procedure for appointment of cost auditor as
laid down vide Ministry of Corporate Affairs’ General Circular No. 15/2011
dated 11th April 2011 [as amended vide General Circular No. 36/2012 dated 6th November
2012].
5. The audit shall be conducted in such
manner as will enable the cost auditor to prepare the report in accordance with
the Companies (Cost Audit Report) Rules, 2011 read with the Companies (Filing
of Documents and Forms in Extensible Business Reporting Language) Rules, 2011,
both as amended. The report of the cost Auditor shall be forwarded to the
central government , either by himself or by the lead cost auditor, in the
prescribed XBRL format within the time stipulated under the Companies (Cost
Audit Report) Rules, 2011.
6. If a company contravenes any
provisions of these orders, the company and every officer thereof who is found
to be in default, including the persons referred to in subsection (6) of
section 209 of companies Act, 1956, shall be punishable as per provisions under
subsection 2 of section 642 read with sub-section (11) of 233B of the companies
Act , 1956 (1 of 1956)
7. These ordrs are subject to various
clarifications issued by the ministry of Corporate Affairs on the subject of
cost audit; to the extent these are relevant and applicable. Any specific
exemptions granted earlier to certain class of activities shall remain in force
till further orders.
CMA Krishna Dasan.A
Mob:98711-28831
Email: aknair2002@cmaglobal.net.in
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