Form CRA 2 and GNL 4: Additional compliances for company appointing cost auditor and submission of further details

Form CRA-2- Form of Intimation of appointment of cost auditor by the company to Central Government

Pursuant to section 148(3) of Companies Act, 2013 and rule 6(2) of the Companies (cost records and audit) Rules, 2014, E-Form CRA-2 shall be filed.   images9

Section 148(3):

The Central Government may, if it feels necessary, direct by an order that an audit of the Cost Records kept by a Company shall be conducted in the prescribed manner.The audit shall be conducted by a Cost Accountant in practice who shall be appointed by the Board on such remuneration as may be determined by the members in such manner as may be prescribed.

Rule 6:

1. Companies covered under class of company require appointing of cost auditor within 180days from the commencement of the financial year.

2. Every company referred to in sub-rule (1) shall inform the cost auditor concerned of his or its appointment as such and file a notice of such appointment with the Central Government.

Form CRA-2 of Appointment of Cost Auditor needs to be filed – Earlier of:

  • 30days from the Board meeting in which such appointment is made

or

  • 180 days of the commencement of the financial year.

Note:

Every company covered under the Cost (record and audit) Rules, 2014 including all units and branches shall, in respect of each of its financial year commencing on or after 1st April 2014, maintain cost records in e-form CRA- 1.

Amendment in Rule 10:

As we were getting familiar to all the forms released by the Ministry of Corporate Affairs (MCA), the MCA has made further amendment in Rule 10 by the Companies (Registration Offices and Fees) Amendment Rules, 2015 vide Notification dated 24 February 2015.

Rule 10 of the Companies (Registration Offices and Fees) Amendment Rules, 2014 provides for procedure to be undertaken by the Registrar on receipt of any application/ form/ document electronically. Further, where on examination of any application/ form/ document Registrar requires any further information/ documents then additional information/ documents shall be submitted with Registrar within prescribed time limit.

Rule 10 has been amended that for submission of further/ additional information/ documents called for, in respect of application/ e-form/ document filed electronically with the MCA in Form No. GNL – 4.

Thus, Form CRA 2 and GNL 4 are the additional compliance to abide.

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