News from the desk of Ministry of Corporate Affairs (MCA)
September 30, 2021
Extension of time to issue Cost Audit Report
Upon receipt of several references and representations from the stakeholders, Ministry of Corporate Affairs (“MCA”) had on 27th day of September, 2021 issued a General Circular No. 15/2021 (“Circular”) with regard to the extension of due date of filing of Cost Audit Report (to the Board of Directors) as mandated under the Companies (Cost Records and Audits) Rules, 2014 (“Rules”) for the above stated purpose.
The abovesaid Circular provides that if cost audit report for financial year 2020-21 (by the cost auditor to the Board of Directors of the company) is submitted by 31st October, 2021, then the same would not be viewed violation of rule 6(5) of the Rules. It is to be noted that prior to the issuance of this Circular, the said report was required to be issued within a period of 180 (one hundred eighty) days from the close of the financial year.
Consequently the cost audit report for the financial year ended on 31st March, 2021 shall be filed in e-form CRA-4 within 30 (thirty) days from the date of receipt of the copy of the cost audit report by the company.
The complete text of the General Circular may be viewed at below link:
https://www.mca.gov.in/bin/dms/getdocument?mds=UxuGnG2gQZrVxQ%252Fz%252FehiFg%253D%253D&type=open
Extension of time to hold Annual General Meeting
Upon receipt of several references and representations from the companies, industries and professional institutes; pointing out that several companies are finding it difficult to hold their Annual General Meeting (AGM) for the financial year ended on 31st March, 2021 on account of ongoing pandemic.
Section 96(1) provides that every company (other than One-Person Company) shall, in each year hold a general meeting as its AGM and the third proviso of the same section empowers registrar to extend the time (for any special reason) to hold the AGM (other than the first AGM).
Therefore, Ministry of Corporate Affairs (“MCA”) through Office Memorandum dated 23rd September, 2021 (“Office Memorandum”) had directed all the respective Registrar of Companies to issue orders granting extension of time for Companies to hold AGM by a period of 02 (two) months from the date on which the AGM of the Company is ought to have been held without the requirement of filing application for seeing such extension.
In this regard pursuant to the abovementioned Office Memorandum, the Registrar of Companies (NC of Delhi & Haryana) had issued an Order no. ROC/Delhi/ AGM Ext./ 2021/ 5464 (“Order”) directing extension of time by additional 02 (two) months.
The Order also states and clarifies that extension period granted shall also cover:-
- Pending applications for extending AGM which are yet to be approved,
- Applications for extending AGM which were rejected,
- Applications for extending AGM where approval was granted for less than two months.
Last updated: 30/09/2021
Article contributed by:
Associate - Legal
