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

Vindhya Cements Ltd received the cost audit report on 12 March. The report contains two qualifications. As per section 148 of the Companies Act, 2013, which action is required of the company in respect of the Central Government?

The company must send the cost audit report to the Central Government within thirty days from the date it receives the report, together with full information and explanation on every reservation or qualification in it. The period runs from receipt, not from the AGM or year-end.

  1. AFurnish the report along with full information and explanation on every reservation or qualification within thirty days from the date of receipt of the reportCorrect
  2. BFurnish only the qualifications, within sixty days from the end of the financial year
  3. CFurnish the report only if the Central Government calls for it
  4. DFurnish the report within thirty days of the annual general meeting

Explanation

Section 148(6) requires the company, within thirty days from the date of receipt of a copy of the cost audit report prepared under a direction under sub-section (2), to furnish it to the Central Government with full information and explanation on every reservation or qualification. The time runs from receipt of the report, not from the AGM or the year-end.

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