Monday, 30 June 2014


Companies (cost records and audit) Rules, 2014 notified by MCA on 30-06-2014. 

They shall come into force on the date of publication in the Official Gazette

Salient Features:

1. Scop of cost audit limited to very few companies
2. Companies coming under this rules  has to appoint a cost auditor within 180 days from the beginning of the financial year
3. company file a notice of such appointment with the Central Government within a period of thirty days of the Board meeting in which such appointment  is made or within a period of one hundred and eighty days of the commencement of the financial year, whichever is earlier, through electronic mode, in form CRA-2, alongwith the  fee as specified in Companies (Registration Offices and Fees) Rules, 2014

4.cost audtor shall submit his/her report in form CRA 3
5. cost auditor shall forward his /.her report to board of directors of the company within 180 days from the closure of the financial year
6. company shall submit report along with explanantion for any observation in file CRA 4 to central government within 30 days from the receipt of cost audit report

Following new forms have been introduced :
CRA 1: - maintain cost records in form CRA-1. 
CRA 2: - file appointment of cost auditor with the Central Government in form CRA-2,
CRA 3: - Cost auditor to submit cost audit report to company in form CRA-3
CRA 4: - Company to furnish to the Central Government such report in form CRA-4

compiled by:
Krishna Dasan.A
A.Krishna Dasan & Co.
Cost Accountants
2 & 12(FF), DDA Commercial Complex
C-2-C Block, Pocket 2, Janak Puri,
New Delhi-110058
Mob: 98711-28831, 93111-28831