Companies (cost records and audit) Amendment Rules, 2016 Eng

[To be published in the Gazette of India, Extraordinary, Part ll, Section 3, Sub-section (i)l GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION | , ,{'hNew Delhi, the !.:.... July, 2016 G.S.R................. (E).- In exercise ofthe powers conferred by sub-sections (1) and(2) ofsection 469 and section 148 of the Companies Act, 2013 (1.8 of 201.3) (hereinafter referred as the Act), the Central Government hereby makes the following rules further to amend the Companies (cost records and audit) Rules, 2014, namely:- (1) These rules may be called the Companies (cost records and audit) Amendment Rules, 2016. (2) They shall come into force on the date of their publication in the official Gazette. In the Companies (cost records and audit) Rules, 2O14 (hereinafter referred to as the Principal R ules).- in rule 2, for clause (d), the following clause shall be substituted, namely:- "(d) "cost audit report" means the duly signed cost auditor's report on the cost records examined and cost statements which are prepared as per these rules, including attachment, annexure, qualifications or observations attached with or included in such report;" in rule 3, for Table (A) and Table (B), the following Tables shall be substituted, namely:- 1. 2. (i) (ii) ,.TABLE (A) Regulated Sectors sl. No. lndustry/ Sector/ Product/ ServiceCentral Excise Tariff Act Heading (wherever applicable) 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 and regulated by the Telecom Regulatory Authority of India under the Telecom Regulatory Authority of India Act, 7997 (24 of 1997); including activities that requires authorisation or license issued by the Department of Telecommunications, Government of India under Indian Telegraph Act, 1885 (13 of 1885); Not applicable. 000400010007000500020007 000400010005000600030007 000400010006 00230033004600330049002E004B00390047004600050054 004B0049002E0046004A0045003A004A004A003A0047004600050054 00320039004A004B00490038002F004D004B0039004700460054002E004600320054004A004D00480048003E00510054 0047003400540033004000330031004B0049003900310039004B00510054 00230033004600330049002E004B0039004700460052 004900330036004D003E002E004B003300320054 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egulatory Authority under the Airports Economic Regulatgry Authority of India Act,2OO8 (27 of 2OO8); 9.lron and Steel;7 2Ol to 7 229;7 3O7 to 732610.Roads and other infrastructure proiects corresponding to para No. (1) (a) as specified in Schedule Vl ol the Companies Act, 2013 (18 of 2013); Not applicable. 11.Rubber and allied products; including products regulated by the Rubber Board constituted under the Rubber Act, 1.947 (XX|V of 1947); 4OOl to 4077 72.Coffee and tea;0901 to 0902 13.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. L4,2523; 6811 to 581215.Ores and Mineral products;2502 to 2522; 2524 to 2526; 252a 6 2530;26Q1. to 26!7 Mineral fuels (other than petroleum), mineral oils2707 to 2708 77.Base metals;7 40, to 7 4O3; 7 4OS to 7 473; 74L9;7507 to 7508; 7601 to 7674; 78Ql to 7802; 1804; 78O6t 7901, to 7905; 79Ol; 8001; 8003; 8007; 8101 to 8113. 18.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. 19.Jute and Jute Products;5303, 5310 20.Edible Oil;1507 to 1518 27.Construction Industry as per para No. (5) (a) as specified in Schedule Vt 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. 23.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. 24.Milk powder;o402 25.Insecticides;3808 26.Plastics and polymers;3901 to 3914; 3916 to 3921; 3925 27.Tyres and tubes;4011 to 4013 24.Paper;4801 to 4802. 29.Textiles;5004 to 5007; 5106 to 5113; 52OS to 521,2; 5303; 5310; 5401 to 5408;5501 to 5516 30.Glass;7003 to 7008j 7017;7076 31.Other machinery and Mechanical Appliances;8402 to 8487 32.Electricals or electronic machinery;8501 to 8507:8511 to 8512: 8514 to 8515; 8517; 8525 to 8536: 8538 to 8547. 55.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-synchronise therapy ;(xvii) Urethra spinicture devices; (xviii) Sling male or female; (xix) Prostate occlusion device; and (xx) Urethral stents: 9018 to 9022 (iii) (iv) (v) in rule 4, in sub-rule (3), after clause (ii), following clause shall be inserted, namely:- "(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"; 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, as provided in sub-rule (1.A), shall be obtained"; ln rule 6, after sub-rule (1), the following sub-rule shall be inserted, namely:- "(1A) The cost auditor appointed under sub-rule (1) shall submit a certificate that- (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 (23 of 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, so far as may be applicable; (c) the proposed appointment is within the limits laid down by or under the authority of the Act; and (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."; (vi)in rule 6, in sub-rule (3), the following provisos 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, through a board resolution after giving a reasonable opportunity of being heard to the Cost Auditor and 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."; in rule 6, after sub-rule (3A), following sub-rule shall be inserted, namely:- 138) 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 authorised by the Board, for submission to the cost auditor to report thereon"; in rule 6, for sub-rule (5), the following sub-rule shall be substituted, namely:- "(5) 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."; in rule 6, for sub-rule (6), the following sub-rule shall be substituted, namely:- "(6) 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 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.". Joint Secretary to the Government of India Note.- The principal rules were published in the Gazette of India, Extraordinary, Part ll, Section 3, Sub- section (i), vrde number G.S.R. 425 (E), dated the 3oth June, 2Ol4 and amended v,de number G.S.R. 01(E), dated the 31" December, 2Ot4 and vide number G.S.R. 486 (E), Dated the 12th June, 2015. (vii) (viii) (ix) lFile No. 1/40/2013-Ct-Vl '*ffo{'"ta (Amardeep Singh Bhitia)