Cost Audit Report – Form CRA 4 Due Date Extension for FY 2020-21
Cost Audit Report –Form CRA 4 Due Date Extension for FY 2020-21
On account of extraordinary disruption caused due to the COVID 19 pandemic, the Ministry of Corporate Affairs (MCA) vide Circular dated 27.10.2021 has announced the extension of the CRA 4 (Cost Audit Report) filing period for the fiscal year FY 2020-2021. As per the MCA notification, the Cost Audit Report deadline for FY 2020-2021 has been extended to 30th November 2021, if the Cost Audit report is submitted by the Cost Auditor to Board by October 31st, 2021.
The Ministry also provided relaxation of additional fees under the Companies Act, 2013. This article summarizes the extensions provided and attempts to clarify the basics of the Cost Audit Report.
The Gist of MCA Notification
The Ministry of Corporate Affairs is provided relaxation of additional fees and extension of the last date for filing of Form CRA-4 for the financial year 2020-2021.
- If the cost audit report for the financial year 2020-2021 is submitted by the cost auditor to the Board of Directors of the companies by October 31st, 2021 then the same will not be viewed as a violation of rule 6(5) of Companies (Cost Records and Audit) Rules 2014.
- The cost audit report for the fiscal year ending March 31, 2021, will be archived in the CRA 4 electronic form within 30 days from the date of receipt of the copy of the cost audit report by the company
- If a company has made use of an extension of the deadline for holding an annual general meeting (AGM), then the electronic form CRA4 must be filed within the timeline provided under the provision of rule 6(6) of the Companies (Cost Records and Audit Rules), 2014)
The official notification of the Ministry of Corporate Affairs is attached here for reference:GeneralCircularNo15_27092021
According to the MCAs, earlier announcement Cost Auditor needs to submit CRA report till 30.09.2021 and Company need to file Form CRA-4 till 30th Oct 2021.
As mentioned above, MCA now announced that the Cost Audit Report deadline for FY 2020-2021 has been extended to November 30th, 2021.
Cost Audit Report
Cost audit is the process of verification of cost accounts of a company to ascertain the accuracy of cost accounting records. Cost audit will verify whether the cost accounting records are on track with the costing principles, plans, objectives, and procedures.
The cost audit usually involves the following processes:
- Verification of accuracy of costing records
- Detection of errors in the cost records
- Checking of cost books, accounts, and records
Governing Law – Cost Audit Report
The requirements concerning Cost Records and Cost Audit applicability are provided in Section 148 of the Companies Act, 2013.
Details of the company that are required to keep Cost Records, undergo a Cost Audit, and submit a Cost Audit Report are provided under Rule 3 of the Companies (Cost Records and Audit) Rules, 2014
Companies Required Conducting a Cost Record Audit
The below-mentioned companies are required to file the Cost Audit Report in Form CRA-4 to the board
- Non-regulated sectors dealing with specified goods or services and overall annual total turnover from all products or services is Rs.100 Crore or more
- Non-regulated sectors dealing with specified goods or services aggregate turnover from the individual product or service is Rs.35 Crore or more
- Regulated sectors dealing with specified goods or services which overall annual total turnover from all products or services is Rs.50 Crore or more
- Regulated sectors dealing with specified goods or services which aggregate turnover from the individual product or service is Rs.25 Crore or more
Exemption from Conducting a Cost Record Audit
The following companies are exempted from Conducting a Cost Record Audit
- The company’s export revenue in foreign exchange exceeds 75% of total revenue
- The company operates from a Special Economic Zone (SEZ)
- The company is engaged in the production of electricity through Captive Generating Plant
Form CRA 4 – Cost Audit Report
Form CRA 4 is used for filing a Cost Audit Report with the Government. On the receipt of the Cost audit report from Cost auditors, the firm needs to submit the same to MCA in form CRA-4 within 30 days from obtaining the audit report. The applicant needs to access the official website of the Ministry of Corporate Affairs (MCA) for the Filing of eForm.
The format of the e-Form CRA-4 is attached here for ready reference:Form_CRA-4
Fee for filing CRA 4 (Cost Audit Report)
The fee for filing CRA 4 (Cost Audit Report) is tabulated here for reference according to the Companies (Registration Offices and Fees) Rules, 2014
|Sl.No||Nominal Share Capital of the Company||Fee applicable|
|1||Less than 1,00,000||Rs. 200 per document|
|2||1,00,000 to 4,99,999||Rs.300 per document|
|3||5,00,000 to 24,99,999||Rs. 400 per document|
|4||25,00,000 to 99,99,999||Rs. 500 per document|
|5||1,00,00,000 or more||Rs. 600 per document|
The fee for filing CRA 4 in case a company does not have share capital is Rs.200 per document.
Penalty for Late Filing of Form CRA-4
|Sl.No||Period of Delays||All Forms|
|1||Up to 30 days||2 times of normal fees|
|2||More than 30 days and up to 60 days||4 times normal fees|
|3||More than 60 days and up to 90 days||6 times normal fees|
|4||More than 90 days and up to 180 days||10 times of normal fees|
|5||More than 180 days||12 times of normal fees|
Note: As per the MCA notification dated 27.10.2021, the companies are exempted from the payment of an additional fee.
Click here to know more about the Documents Required, Procedure for Filing of eForm CRA-4