MCA: Extension of Due Date of Cost Audit Report for the F.Y 2020-21

Last Updated On: Sept. 28, 2021, 11:11 p.m.
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MCA- Extended last Date of filing Cost Audit Report for F.Y 2020-21

The MCA vide its General Circular dtd. 27th September, 2021, has extended the last date of filing Cost Audit Report (CAR) to the Board of Directors under rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014.

Accordingly, the cost auditor can submit the CAR for the F.Y. 2020-21 to the Board of Directors of the companies by 31st October, 2021 and it shall not be considered as a violation of rule 6(5). As per rule 6(5), the report is to be submitted by a cost auditor within 180 days from the end of F.Y. i.e., 27th September of every year.

Consequently, the companies shall file the CAR in e-form CRA-4 within 30 days from the date of receipt of a copy of CAR from cost auditor. However, as the companies have got general extension to hold AGM under 96(1), then e-form CRA-4 may be filed within resultant extended period of filing financial statements under section 137 of the Companies Act, 2013.

 

Rule 6(5), (6) of the Companies (Cost Records and Audit) Rules, 2014]

(5) Every cost auditor shall forward his duly signed report to the Board of Directors of the company within a period of one hundred and eighty days from the closure of the financial year to which the report relates and the Board of Directors shall consider and examine such report, particularly any reservation or qualification contained therein.

(6) Every company covered under these rules shall, within a period of thirty days from the date of receipt of a copy of the cost audit report, furnish the Central Government with such report along with full information and explanation on every reservation or qualification contained therein, in Form CRA-4 in Extensible Business Reporting Language format in the manner as specified in the Companies (Filing of Documents and Forms in Extensible Business Reporting language) Rules, 2015 along with fees specified in the Companies (Registration Offices and Fees) Rules, 2014.

Provided that the Companies which have got extension of time of holding Annual General Meeting under section 96 (1) of the Companies Act, 2013, may file form CRA-4 within resultant extended period of filing financial statements under section 137 of the Companies Act, 2013.

 

In view of the extraordinary disruption caused due to the pandemic, it has been decided that if cost audit report for the financial year 2020-21 by the cost auditor to the Board of Directors of the companies is submitted by 31st October, 2021 then the same would not be viewed as violation of rule 6(5) of Companies (cost records and audit) Rules, 2014. Consequently, the cost audit report for the financial year ended on 31″ March, 2021 shall be filed in e-form CRA-4 within 30 days from the date of receipt of the copy of the cost audit report by the company. However, in case a company has got extension of time for holding Annual General Meeting under section 96(1) of the Act then e-form CRA-4 may be filed within the timeline provided under the proviso to rule 6(6) of the companies (Cost Records and Audit) Rules, 2014.

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