Filing of e-Form CRA-4 for Cost Audit Report

Filing of e-Form CRA-4 for Cost Audit Report. Every appointed cost auditor must submit the cost audit report to the company within 180 days from the end of the financial year using Form CRA-3. Subsequently, the company is required to submit the report to the Central Government within 30 days of receiving it, along with complete details and justifications for any reservations or qualifications noted by the auditor, using Form CRA-4.
Applicability of Cost Audit
The Companies (Cost Records and Audit) Rules, 2014, mandate cost audits for specific companies based on their sector and turnover.
Covered Sectors
1. Regulated Sectors (Table A): Includes electricity, petroleum, drugs, fertilizers, sugar, etc.
2. Non-Regulated Sectors (Table B): Includes automobiles, cement, steel, paper, textiles, etc.
Turnover Criteria
• Regulated Sectors: Cost audit applies if:

Overall annual turnover is Rs. 50 crores or more.

Turnover from specific products/services is Rs.25 crores or more.

• Non-Regulated Sectors: Cost audit applies if:

Overall annual turnover is Rs.100 crores or more.

Turnover from specific products/services is Rs. 35 crores or more.

Companies meeting these thresholds must undergo a cost audit, but those below the limits are only required to maintain cost records.
Governing Law
Section 148 of the Companies Act, 2013, along with Rule 3 of the Companies (Cost Records and Audit) Rules, 2014, governs cost audit requirements. Companies falling within the prescribed limits must file Form CRA-4 with the MCA.
Exemptions from Cost Audit
Certain companies are exempt from cost audits if they meet the following criteria:
• Export revenue in foreign exchange exceeds 75% of total revenue.
• Operations are conducted from a Special Economic Zone (SEZ).
• Engaged in electricity generation through a Captive Generating Plant.
Form CRA-4 – Cost Audit Report Filing
Form CRA-4 is the official electronic form for submitting the Cost Audit Report to the MCA. Companies must file CRA-4 within 30 days of receiving the cost audit report from the auditor. The form can be accessed and filed through the MCA portal.
Filing Fees for Form CRA-4
The filing fee is based on the company's nominal share capital:

Nominal Share Capital

Fee (Rs. per document)

Less than 1,00,000
200

1,00,000 to 4,99,999
300

5,00,000 to 24,99,999
400

25,00,000 to 99,99,999
500

1,00,00,000 or more
600

No share capital
200

Foreign companies

6,000

Penalty for Late Filing
The MCA has also prescribed penalties for delayed filing:

Delay Period

Penalty (Times of Normal Fees)

Up to 30 days
2x

30-60 days
4x

60-90 days
6x

90-180 days
10x

More than 180 days
12x

However, as per the MCA notification dated October 27, 2021, companies are exempted from additional fees.
Applicable Forms for Cost Audit
1. Form CRA-1: Specifies the format for maintaining cost records.
2. Form CRA-2: Used to notify the MCA about the appointment of a cost auditor within 30 days of the board meeting or 180 days from the financial year's start.
3. Form CRA-3: Format for the Cost Audit Report, covering aspects such as inventory valuation, related party transactions, budgetary control, and cost control suggestions.
4. Form CRA-4: Used for filing the Cost Audit Report with the MCA within 30 days of receiving the audit report.
Documents Required for CRA-4 Filing
• XBRL document of the cost audit report and company’s explanations.
• Any other relevant information as an optional attachment.
Filing Procedure for eForm CRA-4
1. Visit the MCA portal and log in.
2. Enter the required details such as Corporate Identity Number (CIN) and cost auditor details.
3. Attach the necessary documents and digitally sign the form.
4. Pay the applicable fees and submit the form.
5. On successful submission, an SRN (Service Request Number) and challan will be generated for tracking purposes.
6. Once processed, the MCA will send an acknowledgment to the company’s registered email.
Conclusion
Filing e-Form CRA-4 is a crucial yet detailed process to ensure compliance with cost audit regulations under the Companies Act, 2013. Adhering to each step diligently helps in accurate and timely submission. It is essential to stay updated with the latest guidelines and keep track of deadlines to prevent penalties. With proper preparation and organization, companies can efficiently file e-Form CRA-4 without any complications.
FAQs
Q1. Who is required to file Form CRA-4?
Ans. Companies falling under the cost audit applicability criteria as per Section 148 of the Companies Act, 2013, must file Form CRA-4 within 30 days of receiving the cost audit report from the auditor.
Q2. What is the penalty for late filing of Form CRA-4?
Ans. The penalty for late filing ranges from 2x to 12x the normal filing fee, depending on the delay period. However, as per the MCA notification dated October 27, 2021, additional fees have been waived.
Q3. What documents are required for filing Form CRA-4?
Ans. Companies must submit the XBRL document of the cost audit report along with explanations for any qualifications or reservations noted by the auditor. Optional attachments may also be provided.
Q4. Are any companies exempt from cost audit requirements?
Ans. Yes, companies are exempt if their export revenue exceeds 75% of total revenue, operate from an SEZ, or generate electricity through a Captive Generating Plant.
Q5. How is the filing fee for Form CRA-4 determined?
Ans. The filing fee is based on the company’s nominal share capital, ranging from Rs. 200 to Rs. 600 for domestic companies and Rs. 6,000 for foreign companies.
Q6. Where can Form CRA-4 be filed?
Ans. Form CRA-4 must be filed electronically through the MCA portal, with a digital signature and payment of the applicable fees.

Every appointed cost auditor must submit the cost audit report to the company within 180 days from the end of the financial year using Form CRA-3. Subsequently, the company is required to submit the report to the Central Government within 30 days of receiving it, along with complete details and justifications for any reservations or qualifications noted by the auditor, using Form CRA-4.

Applicability of Cost Audit

The Companies (Cost Records and Audit) Rules, 2014, mandate cost audits for specific companies based on their sector and turnover.

Covered Sectors

1. Regulated Sectors (Table A): Includes electricity, petroleum, drugs, fertilizers, sugar, etc.

2. Non-Regulated Sectors (Table B): Includes automobiles, cement, steel, paper, textiles, etc.

Turnover Criteria

• Regulated Sectors: Cost audit applies if:

Overall annual turnover is Rs. 50 crores or more.
Turnover from specific products/services is Rs.25 crores or more.

• Non-Regulated Sectors: Cost audit applies if:

Overall annual turnover is Rs.100 crores or more.
Turnover from specific products/services is Rs. 35 crores or more.

Companies meeting these thresholds must undergo a cost audit, but those below the limits are only required to maintain cost records.

Governing Law

Section 148 of the Companies Act, 2013, along with Rule 3 of the Companies (Cost Records and Audit) Rules, 2014, governs cost audit requirements. Companies falling within the prescribed limits must file Form CRA-4 with the MCA.

Exemptions from Cost Audit

Certain companies are exempt from cost audits if they meet the following criteria:

• Export revenue in foreign exchange exceeds 75% of total revenue.

• Operations are conducted from a Special Economic Zone (SEZ).

• Engaged in electricity generation through a Captive Generating Plant.

Form CRA-4 – Cost Audit Report Filing

Form CRA-4 is the official electronic form for submitting the Cost Audit Report to the MCA. Companies must file CRA-4 within 30 days of receiving the cost audit report from the auditor. The form can be accessed and filed through the MCA portal.

Filing Fees for Form CRA-4

The filing fee is based on the company's nominal share capital:

Nominal Share Capital	Fee (Rs. per document)
Less than 1,00,000	200
1,00,000 to 4,99,999	300
5,00,000 to 24,99,999	400
25,00,000 to 99,99,999	500
1,00,00,000 or more	600
No share capital	200
Foreign companies	6,000

Penalty for Late Filing

The MCA has also prescribed penalties for delayed filing:

Delay Period	Penalty (Times of Normal Fees)
Up to 30 days	2x
30-60 days	4x
60-90 days	6x
90-180 days	10x
More than 180 days	12x

However, as per the MCA notification dated October 27, 2021, companies are exempted from additional fees.

Applicable Forms for Cost Audit

1. Form CRA-1: Specifies the format for maintaining cost records.

2. Form CRA-2: Used to notify the MCA about the appointment of a cost auditor within 30 days of the board meeting or 180 days from the financial year's start.

3. Form CRA-3: Format for the Cost Audit Report, covering aspects such as inventory valuation, related party transactions, budgetary control, and cost control suggestions.

4. Form CRA-4: Used for filing the Cost Audit Report with the MCA within 30 days of receiving the audit report.

Documents Required for CRA-4 Filing

• XBRL document of the cost audit report and company’s explanations.

• Any other relevant information as an optional attachment.

Filing Procedure for eForm CRA-4

1. Visit the MCA portal and log in.

2. Enter the required details such as Corporate Identity Number (CIN) and cost auditor details.

3. Attach the necessary documents and digitally sign the form.

4. Pay the applicable fees and submit the form.

5. On successful submission, an SRN (Service Request Number) and challan will be generated for tracking purposes.

6. Once processed, the MCA will send an acknowledgment to the company’s registered email.

Conclusion

Filing e-Form CRA-4 is a crucial yet detailed process to ensure compliance with cost audit regulations under the Companies Act, 2013. Adhering to each step diligently helps in accurate and timely submission. It is essential to stay updated with the latest guidelines and keep track of deadlines to prevent penalties. With proper preparation and organization, companies can efficiently file e-Form CRA-4 without any complications.

FAQs

Q1. Who is required to file Form CRA-4?

Ans. Companies falling under the cost audit applicability criteria as per Section 148 of the Companies Act, 2013, must file Form CRA-4 within 30 days of receiving the cost audit report from the auditor.

Q2. What is the penalty for late filing of Form CRA-4?

Ans. The penalty for late filing ranges from 2x to 12x the normal filing fee, depending on the delay period. However, as per the MCA notification dated October 27, 2021, additional fees have been waived.

Q3. What documents are required for filing Form CRA-4?

Ans. Companies must submit the XBRL document of the cost audit report along with explanations for any qualifications or reservations noted by the auditor. Optional attachments may also be provided.

Q4. Are any companies exempt from cost audit requirements?

Ans. Yes, companies are exempt if their export revenue exceeds 75% of total revenue, operate from an SEZ, or generate electricity through a Captive Generating Plant.

Q5. How is the filing fee for Form CRA-4 determined?

Ans. The filing fee is based on the company’s nominal share capital, ranging from Rs. 200 to Rs. 600 for domestic companies and Rs. 6,000 for foreign companies.

Q6. Where can Form CRA-4 be filed?

Ans. Form CRA-4 must be filed electronically through the MCA portal, with a digital signature and payment of the applicable fees.