Maintenance of Cost records: – Companies engaged in the production of the specified goods or providing specified services with an overall turnover of Rupees thirty five crore or more during the immediately preceding financial year are required to maintain Cost records.
Companies (Cost records and Audit) Rules, 2014 has Specified the products for which cost records are required to be maintained based on the individual headings under the Central Excise Tariff Act (CETA).
Cost records form part of the books of account of the company under the Companies Act, 2013.
Exemption from maintaining cost records has been given to Micro and small enterprises.
 
Requirement of Cost Audit: – Requirement of Cost Audit of the Company is based on whether the company operates in a regulated sector or a non-regulated sector and based on the specified thresholds with respect to the overall turnover of the company and the aggregate turnover of the specified products, respectively.
The revised thresholds are as under:
Regulated sector – Audit is required if the overall annual turnover from all its products and services during the immediately preceding financial year is Rs.50 crore or more and the aggregate turnover of the individual product(s) or service(s) for which cost records are required to be maintained is Rs.25 crore or more.
Non Regulated sectors – Audit is required if the overall annual turnover from all its products and services during the immediately preceding financial year is Rs.100 crore or more and the aggregate turnover of the individual product(s) or service(s) for which cost records are required to be maintained is Rs.35 crore or more.