1. Statutory Governance under Companies Act 2013 is:-

2. Application of Cost Records Section Authority Companies to be covered Records to be Sub section (1) of Section 148 of Companies Act 2013 Central Government Producing of Such Articles as may be prescribed,Providing Such Services as may be prescribed Particulars relating to utilization of (A) Materials, (B) Labour or (C) Other items of Cost

3. Application of Cost Audit Section Authority Companies to be covered Condition Sub section (2) of Section 148 of Companies Act 2013 Central Government Companies covered under Section 148(1) of the Act Category Of Companies Regulated Sector and Non Regulated Sector

4. Sector wise bifurcation Manufacturing Sector/Regulated Services Sector/Non Regulated Drugs and Pharmaceuticals (CETA:-2901 to 2942 3001 to 3006) Health Services, namely functioning as or running hospitals, diagnostic centres, clinical centres, test labourites Production, Import and supply or trading of Following medical devices namely Cardiac stents; Drug eluting stents; Catheters; Intra ocular lenses;

5. Bone cements; Heart valves ; Orthopaedic implants; Internal prosthetic replacements ; Scalp vein set ; Deep brain stimulator; Ventricular peripheral shud; Spinal implants ; Automatic impalpable cardiac deflobillator ; Pacemaker (temporary and permanent ); Patent ductus arteriousus, atrial septal defect and ventricular septal defect closure device;

6. Cardiac re-synchronize therapy ; Urethra spinicture devices ; Sling male or female ; Prostate occlusion devices ;and Urethral stents

7. Rule 3 : Application of Cost Records Companies to be covered Services Companies as Specified in Table Turnover of all its products and services is Rs.35 Crore or More during the preceding F.Y. Production Companies as specified in Table

8. Rule 4 : Applicability for Cost Audit Regulated Sector’s Company Whose Overall annual turnover from all its products and services ≥ 50 crore Aggregate turnover of Individual Product or products or service or services ≥ Rs. 25 Crore Rule 4 Non Regulated Sectors Company whose Overall annual turnover from all its products and services ≥ 100 crore Aggregate turnover of Individual Product or products or service or services ≥ Rs. 50 Crore

9. Rule 5(2) : Maintenance of Records Maintenance of Cost Records on regular basis Cost Of Peoduction or Cost Of Operation Of its Products and Activities for every financial year Cost Of sales So as to calculate per unit Margin

10. Identification of cost centres/cost objects and cost drivers: Cost Centre : The Company is solely engaged in the EPC Projects which are categorise in National, State, Urban, Rural, Elevated and Sub Contract-Excavation, and Sub Contract- Buildcon and the same has been identified as independent Cost Centre and all the expenses incurred and allocated to it on actual basis. Cost Centres are identified as below I. National:- National Highways are at-grade roads whereas Express Highways, commonly known as Expressways, are controlled-access highways, mostly 6-lane or above, where entrance and exit is controlled by the use of slip roads (ramps) that are incorporated into the design of the highway. The National Highways Authority of India (NHAI) is the nodal agency responsible for building, upgrading and maintaining most of the national highways network. It operates under the Ministry of Road Transport and Highways. The National Highways Development Project (NHDP) is a major effort to expand and upgrade the network of highways. NHAI often uses a public-private partnership model for highway development, maintenance and toll-collection. and so Projects Come under above Cretira are Classed Cost Centre as National II. State:- State highways in India are numbered highways that are laid and maintained by the state governments. These are not related to national highways and are not involved with the National Highways Authority of India or the central government in any way. The state highways are usually roads that link important cities, towns and district headquarters within the state and connect them with national highways or highways of neighbouring states. These highways provide connections to industries/places from key areas in the state making them more accessible. and so Projects come under above Criteria are Classed Cost Centre as State III.Urban:-These are important roads within a district connecting areas of production with markets and connecting these with each other or with the State Highways & National Highways. It also connects Taluka headquarters and rural areas to District headquarters within the state, are dealt by MDR PMGSY and PWD, hence projects classed in above category are categorising under Cost Centre

11. Thank You Have a Nice Day CMA Rajendra Singh Bhati B.Com (H), ACMA, ACA PGDCMA Regional council Member Rajendra Singh Bhati & Co Cost Accountants www.rsbco.in 09929912555