Ministry of Corporate Affairs (MCA) vide circular dated 1st December, 2020 has extended the last date to submit the cost audit report to the company for the purpose of filing Form CRA-4 (Form for filing Cost Audit Report) for FY 2019-20 to 31st December, 2020.
In view of the extraordinary disruptions caused by COVID-19 pandemic, the MCA had extended the due date to 30th November, 2020 in a previous circular dated 10th September, 2020 which has again been extended to 31st December, 2020 now.
The other requirements remain unchanged, pursuant to which, if a cost audit report for FY 2019-20 is submitted by the Cost Auditors to the Board of Directors of the Company by 31st December, 2020, then the Board of Directors of the Company by 31st December, 2020, the same shall not be viewed as violation of Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014. Consequently, the cost audit report for FY 2019-20 shall be filed within 30 days from the receipt of cost audit report by the Company in E-Form CRA-4.
As per Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014, every cost auditor is required to submit his report to the Board of Directors of the company within a period of 180 days from closure ofFinancial Year to which the report relates and as per Rule 6(6), Company is required to file form CRA-4 within 30 days of receipt of Cost Audit Report.
However, in case company has availed extension of time for holding Annual General Meeting then the e-Form CRA-4 may be filed within the timeline provided underproviso to Rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014.
Source: MCA- General Circular No. 38/2020 – Shreya Nair