Cost auditors can now submit report till November 30 as MCA extends deadline : 11-09-2020

Cost auditors have till November 30 to submit their report to the boards of companies, as the ministry of corporate affairs (MCA) extended the cost audit report deadline for 2019-20 by a month in light of disruptions due to the pandemic.

“In view of the extraordinary disruption caused due to the pandemic, it has been decided that if cost audit report for the financial year 2019-20 by the cost auditor to the Board of Directors of the companies is submitted by 30th November, 2020 then the same would not be viewed as a violation,” said the circular issued on Thursday.

It also waived the additional fees a company has to pay for filing the CRA-4 form (cost audit report) with the government.

The move follows representations from stakeholders to extend the deadline due to the impact of the pandemic.

Statutory cost auditors are required to submit their audit of a company’s cost records within 180 days of the closing of the financial year, which means the deadline for FY20 falls in this month.

Normally, companies have 30 days from the time they receive the cost audit report to submit the CRA-4 form to the MCA along with the board’s comments, effectively making the deadline November 30.

However, companies that have availed the extension for holding annual general meetings (AGM) have been granted leeway on this timeline but must adhere to the 30 day period upon receiving the report.

On Tuesday, the MCA gave companies time till December to hold AGMs by directing all offices of the Registrar of Companies to extend the deadline by three months from September in their respective jurisdictions.

However, companies that have availed the extension for holding annual general meetings (AGM) have been granted leeway on this timeline but must adhere to the 30 day period upon receiving the report.

On Tuesday, the MCA gave companies time till December to hold AGMs by directing all offices of the Registrar of Companies to extend the deadline by three months from September in their respective jurisdictions.

Source : Finaicila Express