Policy

Covid-19 impact: MCA gives India Inc time till Nov 30 to file cost audit report

KR Srivats New Delhi | Updated on September 15, 2020 Published on September 15, 2020

In view of the pandemic disrupting businesses, the Ministry of Corporate Affairs (MCA) has given companies more time to submit their electronic forms on cost audit reports.

Cost auditors, who hitherto had to furnish their cost audit reports for FY20 to the company boards by September 30, have now been given time till November 30 to do so.

“In view of the extraordinary disruption caused due to the pandemic, it has been decided that if the cost audit report for the financial year 2019-20 by the cost auditor to the board of directors of the companies is submitted by November 30, 2020, then the same would not be viewed as violation of rule 6(5) of Companies (cost records and audit) Rules, 2014,” said an MCA circular.

Consequently, the cost audit report can be filed with the MCA in e-form CRA-4 within 30 days from the date of receipt of the copy of the cost audit report by the company, the circular added.

In the case of companies that had availed extension of time for holding their AGM, the MCA has said e-form CRA-4 can be filed within the resultant extended period.

Prior to this circular, the Company Law required cost auditors to submit their cost audit reports by September 30 (180 days after the end of the financial year). Companies had 30 days more to file their e-form CRA-4 with the MCA.

Slew of measures

The MCA’s latest move is among steps it has taken to relax various compliance requirements amid the pandemic.

Besides allowing companies to hold both board and shareholder meetings virtually, the MCA has extended the applicability of CARO 2020 by one year and extended the last date for registration of details of independent directors in the Independent Directors Data Bank by three months, up to September 30.

Also, the last date for filing of form NFRA-2 (to be filed by auditors with the audit regulator) has been extended.

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Published on September 15, 2020
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