Relaxation of additional fees and extension of last date of filing of CRA-4 (Form for filing of Cost Audit Report) for FY 2019-20 under the Companies Act, 2013

MCA (Ministry of Corporate Affairs) vide General Circular dated September 10, 2020, has extended the last date of filing of e-form CRA-4 for FY 2019-20 as well as relaxed the additional fees in view of the extraordinary disruption caused due to COVID-19. 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 November 30, 2020, then the same would not be viewed as a violation of Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014. Consequently, the cost audit report for the financial year ended on March 31, 2020, shall be filed in e-form CRA-4 within 30 days from the date of receipt of the copy of the cost audit report by the company. However, in case a company has availed extension of time for holding an Annual General Meeting then e-form CRA-4 may be filed within the timeline provided under the proviso to Rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014.

http://www.mca.gov.in/Ministry/pdf/circular_10092020.pdf

Judicial Pronouncement

In the matter of M/s. Mohindera Chemicals Private Limited vs. Registrar of Companies, NCT of Delhi & Haryana & Ors., the present appeal has been filed claiming that the name of the Appellant Company was wrongly struck off by RoC from the Register of Companies with effect from August 8, 2018, due to non-filing of the Balance Sheets of the company. The Appellant argued that merely because the Balance Sheet remained to be filed, the RoC presumed that the company is not functional and the name got struck off. It is stated that if the name is not restored the Appellant will seriously suffer as there are huge outstanding dues that the company has to receive and the debtors are ready to pay but are unable to pay because the name is struck off. NCLAT held that the Appellant Company has been functional as can be seen from the content of the submitted Balance Sheets and directed the RoC to restore the name of the company in the Register of Companies.

Last Updated: 16th September 2020 This article is contributed by:

Munesh Gaur Manager, Legal

Tag: Ministry of Corporate Affairs