4 October 2021
MCA grants extension for filing Cost Audit Report under Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014
 
Taking into consideration, the various representations received from the stakeholders for the extension in the last date of filing, the Ministry of Corporate Affairs (MCA) vide its General Circular No.15/2021 dated 27 September 2021 has granted a relaxation for filing of Cost Audit Report to the Board of Directors under Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014 due to the impact of COVID-19 pandemic.
 
Highlights of the Circular:
  • If the Cost Audit Report is submitted for FY 2020-21 by the Cost Auditor to the Board of Directors by 31 October 2021 then the same would not be viewed as violation of rule 6(5) of Companies (Cost Records and Audit) Rules, 2014.
  • Pursuant to rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014 the Cost Audit Report 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.
  • In case a Company has got an extension for holding Annual General Meeting (AGM) under section 96(1) of the Act then e-form CRA-4 may be filed within the above mentioned timeline.
Our Comments

Considering the disruptions caused due to the pandemic, we believe that the extension is being available to:

  • The Cost Auditor to prepare and submit the Cost Audit Report by 31 October 2021, thus cases where the Cost Auditor has provided their Report within the Original due date, then pursuant to rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014 the Cost Audit Report shall be filed in e-form CRA-4 within 30 days from the date of receipt of the same.
  • For Companies who have applied for AGM extension and have received confirmation thereon, will be required to comply with the provisions of rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014.
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