Central Government to specify audit of items of cost in respect of certain companies
Section 148 of the Companies Act, 2013 deals with central Government to specify audit of items of cost in respect of certain companies. Notwithstanding anything contained in this Chapter, the Central Government may, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to oth The Act came into force on 01 Apr 2014.
(1) Notwithstanding anything contained in this Chapter, the Central Government may, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed shall also be included in the books of account kept by that class of companies:
Provided that the Central Government shall, before issuing such order in respect of any class of companies regulated under a special Act, consult the regulatory body constituted or established under such special Act.
(2) If the Central Government is of the opinion, that it is necessary to do so, it may, by order, direct that the audit of cost records of class of companies, which are covered under sub-section (1) and which have a net worth of such amount as may be prescribed or a turnover of such amount as may be prescribed, shall be conducted in the manner specified in the order.
(3) The audit under sub-section (2) shall be conducted by a 1[cost accountant] who shall be appointed by the Board on such remuneration as may be determined by the members in such manner as may be prescribed:
Provided that no person appointed under section 139 as an auditor of the company shall be appointed for conducting the audit of cost records:
Provided further that the auditor conducting the cost audit shall comply with the cost auditing standards.
Explanation.-- For the purposes of this sub-section, the expression cost auditing standards mean such standards as are issued by the 2[Institute of Cost Accountants of India], constituted under the Cost and Works Accountants Act, 1959 (23 of 1959), with the approval of the Central Government.
(4) An audit conducted under this section shall be in addition to the audit conducted under section 143.
(5) The qualifications, disqualifications, rights, duties and obligations applicable to auditors under this Chapter shall, so far as may be applicable, apply to a cost auditor appointed under this section and it shall be the duty of the company to give all assistance and facilities to the cost auditor appointed under this section for auditing the cost records of the company:
Provided that the report on the audit of cost records shall be submitted by the 3[cost accountant] to the Board of Directors of the company
(6) A company shall within thirty days from the date of receipt of a copy of the cost audit report prepared in pursuance of a direction under sub-section (2) furnish the Central Government with such report along with full information and explanation on every reservation or qualification contained therein.
(7) If, after considering the cost audit report referred to under this section and the information and explanation furnished by the company under sub-section (6), the Central Government is of the opinion that any further information or explanation is necessary, it may call for such further information and explanation and the company shall furnish the same within such time as may be specified by that Government.
(8) If any default is made in complying with the provisions of this section,
(a) the company and every officer of the company who is in default shall be punishable in the manner as provided in sub-section (1) of section 147;
(b) the cost auditor of the company who is in default shall be punishable in the manner as provided in sub-sections (2) to (4) of section 147.
Section 148, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 34
- Andhra Pradesh Goods and Services Tax Act s. 71 Access to business premises
- Arunachal Pradesh Goods and Services Tax Act s. 71
- Arunachal Pradesh Goods and Services Tax Act s. 71 Access to business premises
- Assam Goods and Services Tax Act s. 71
- Bihar Goods and Services Tax Act s. 192
- Central Goods and Services Tax Act s. 71 Access to business premises
- Chhattisgarh Goods and Services Tax Act s. 71
- s. 2 Definitions
- s. 143 Powers and duties of auditors and auditing standards
- Delhi Goods and Services Tax Act s. 71
- Goa Goods and Services Tax Act s. 71 Access to business premises
- Gujarat Goods and Services Tax Act s. 174
and 22 more
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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M/s Nusun Genetic Research Limited v. Registrar of Companies
Court's Decision & Legal Precedent
Prosecution for failure to file cost-audit report under s.148(8)/s.147 is not quashed on limitation where limitation under CrPC ss.468–469 runs from ROC knowledge (show-cause notice date), not from sanction date; whether seed manufacturers fall under Cost Records Rules is a trial issue when the company itself classified under edible oil seeds.
On this section: Charge and analysis centre on s.148 cost-audit filing duty and s.148(8) offence; petitions to quash dismissed.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
9 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- G.S.R. 206(E)-Companies (Audit and Auditors) Amendment Rules, 2021.Rule 2021
- G.S.R. 248(E)-Companies (Audit and Auditors) Second Amendment Rules, 2021Rule 2021
- No. 41/GST-2 Notification regarding Exemption of foreign airlines from not furnishing reconciliation statement in FORM GSTR-9C under the HGST Act, 2017Notification 2020
- Notification no. 09-2020Notification 2020
- Companies (cost records and audit) Amendment Rules, 2018Rule 2018
- Companies (cost records and audit) Second Amendment Rules, 2017.Rule 2017
- Companies (cost records and audit) Amendment Rules, 2016Rule 2016
- The Companies (Cost Records and Audit) Amendment Rules,2014Rule 2014
- The Companies (cost records and audit) Rules, 2014Rule 2014
Another 9 instruments name this provision in its title or its text without being made under it.
- CARO 2020 dated 25.02.2020Order 2020
- Companies (Accounts) Amendment Rules, 2018Rule 2018
- Companies (Auditor's Report) Order, 2016Order 2016
- Companies (Audit and auditors) Amendment Rules ,2015Rule 2015
- Companies (Filing of documents and forms in XBRL) Rules, 2015Rule 2015
- The Companies (Auditor’s Report) Order, 2015Order 2015
- The Companies (Cost Records and Audit) Amendment Rules, 2015Rule 2015
- Chapter X - The Companies (Audit and Auditors) Rules, 2014.Rule 2014
- The Companies (Audit and Auditors) Amendment Rules, 2014Rule 2014
Questions about Section 148
What have the courts held on Section 148 of the Companies Act?
M/s Nusun Genetic Research Limited v. Registrar of Companies (17 Oct 2023) is the leading judgment on this section among those set out below: Charge and analysis centre on s.148 cost-audit filing duty and s.148(8) offence; petitions to quash dismissed.
How do I find court cases under Section 148 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 148, section 148 Companies Act, section 148 of the Companies Act. People searching for it also type section 148 of companies act and companies act section 148 1. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with M/s Nusun Genetic Research Limited v. Registrar of Companies (17 Oct 2023).
What should I read with Section 148 of the Companies Act, and has it changed?
Its own text turns on section 139 (Appointment of auditors), section 143 (Powers and duties of auditors and auditing standards), section 147 (Punishment for contravention), so none of them can safely be read on its own. 34 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 9: most recently G.S.R. 206(E)-Companies (Audit and Auditors) Amendment Rules, 2021. (2021), then G.S.R. 248(E)-Companies (Audit and Auditors) Second Amendment Rules, 2021 (2021), and 7 more.
When did Section 148 of the Companies Act come into force?
Section 148 of the Companies Act, cited as Companies Act 148, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.