The Ministry of Corporate Affairs on 27th September 2021 has decided to extend the last date of filing of the Cost Audit Report to the Board of Directors under Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014.
As per rule 6(5), Every cost auditor shall forward his duly signed report to the Board of Directors of the company within a period of 180days 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.
However, due to the extraordinary disruption caused by the pandemic, It has been decided that if a 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 a violation of rule 6(5) of Companies (cost records and audit) Rules, 2014.
Consequently, the cost audit report for the financial year ended on 31st 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 an 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.
