Applicability of Cost Audit:

(1) Every Regulated Sector company shall get its cost records audited if the overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees fifty crore (50 cr.)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 is rupees twenty five crore (25 cr.) or more.

(2) Every Non-Regulated company specified shall get its cost records audited 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 (100 cr.)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 is rupees thirty five crore (35 cr.)or more.

(3) The requirement for cost audit under these rules shall not apply to a company of Regulated and Non-Regulated Sector, 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.”