By publishing a notification dated 15th October 2019, the Ministry of Corporate Affairs (MCA) has published the Companies (cost records and audit) Amendment Rules, 2019 to further amend the Companies (cost records and audit) Rules, 2014. With this Notification, the MCA has amended Form CRA-1 and Form CRA-3 in the Annexure of the Companies (Cost Records and Audit) Rules,2014 with retrospective effect from 1st April 2018.
Cost record audit of a company means books of account relating to the utilization of materials, labour and other items of cost as applicable to the production of the goods or provision of services as provided in the Companies Act and the Companies (Cost Records and Audit) Rules which is audited by a cost accountant. The amended provisions brought by this notification are as follows-
- Companies who have already filed their Cost Audit Report in form CRA-4 for the financial year 2018-19 with the Central Government before the publication of this notification are not required to file their Cost Audit Report for the said financial year. CRA-4 is the Form for filling Cost audit report with the Central Government which is required to filed by the Board of Directors. Every company 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 in Form CRA-4 along with full information and explanation on every reservation or qualification in Extensible Business Reporting Language.
- Form CRA-1 & CRA-3 in the Annexure of Principal Rules have been amended which prescribes Cost Audit Report. Every company shall maintain cost records in form CRA-1. Form CRA-3 is for every cost auditor, who conducts an audit of the cost records of a company. Such cost auditor shall submit the cost audit report along with his or its reservations or qualifications or observations or suggestions in Form CRA-3.