law: Companies Act, 2013 
  148.
  
    Central
  
  Government to specify audit of items of cost in respect of certain companies.
  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.
  1.     
  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 Cost Accountant in practice 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 Institute of Cost and Works Accountants of India,
  
  constituted under the Cost and Works Accountants Act, 1959, with the approval
  
  of the Central Government.
  1.     
  2.     
  3.     
  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 cost
  
  accountant in practice to the Board of Directors of the company.
  1.     
  2.     
  3.     
  4.     
  5.     
  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.