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

Under section 148 of the Companies Act, 2013, within what period must a company furnish the Central Government with a cost audit report prepared under a direction, along with full information and explanation on every reservation or qualification?

The company must furnish the report within thirty days from the date it receives a copy of the cost audit report. Section 148(6) also requires full information and explanation on every reservation or qualification. The period does not run from the AGM or year end.

  1. AThirty days from the date of receipt of a copy of the cost audit reportCorrect
  2. BSixty days from the close of the financial year
  3. CThirty days from the date of the annual general meeting
  4. DNinety days from the date of appointment of the cost auditor

Explanation

Section 148(6) requires the company, within thirty days from the date of receipt of a copy of the cost audit report, to furnish the Central Government with the report and full information and explanation on every reservation or qualification. The clock starts on receipt of the report, not on the AGM or the financial year end.

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