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CMA Final · Cost and Management Audit · Companies (Cost Records and Audit) Rules, 2014

Ganga Steels Ltd received a cost audit report that contains a qualification on the allocation of overheads, prepared under a direction under section 148(2). Within what period, and with what accompanying material, must the company furnish it to the Central Government?

The company must furnish the report within thirty days from the date it receives a copy, together with full information and explanation on every reservation or qualification in it. The period runs from receipt of the report, as section 148(6) states.

  1. AWithin sixty days, with the cost auditor's working papers
  2. BWithin thirty days of receipt of the copy of the report, with full information and explanation on every reservation or qualificationCorrect
  3. CWithin thirty days of the close of the financial year, without any explanation unless called for
  4. DWithin one hundred and eighty days, with the Board's resolution only

Explanation

Section 148(6) requires the company, within thirty days from receipt of a copy of the cost audit report, to furnish the Central Government with the report along with full information and explanation on every reservation or qualification. The period runs from receipt of the report, not from year end. Section 148(7) lets the Government call for further information later.

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