The Companies Rules, 2014 prescribes the classes of companies required to include cost records in their books of account, applicability of cost audit, maintenance of records etc. as

(a) Companies Rules, 2014 provides the classes of companies, engaged in the production of goods or providing services, having an overall turnover from all its products and services of 35 crore or more during the immediately preceding financial year, required to include cost records in their books of account.

The said rule has divided the list of companies into regulated sectors and non-regulated sectors. Some of the companies/industry/sector/product/service prescribed under the said rule are given below:

(A) Regulated Sectors-

(i) Telecommunication services made available to users by means of any transmission or reception of signs, signals, images etc.

(ii) Generation, transmission, distribution and supply of electricity regulated by the relevant regulatory body or authority under the Electricity Act, 2003, other than for captive generation.

(iii) Petroleum products regulated by the Petroleum and Natural Gas Regulatory Board, Drugs and Pharmaceutical, Fertilisers, Sugar and industrial alcohol.

(B) Non-Regulated Sectors-

(i) Machinery and mechanical appliances used in defence, space and atomic energy sectors excluding any ancillary item or items.

(ii) Turbo jets and turbo propellers, Tyres and Tubes, Steel, Cement, Production, import and supply or trading of following medical devices, such as heart valves; orthopaedic implants; pacemaker etc. The rule excludes the foreign companies having only liaison offices.