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Compliance rarely goes wrong because a business did not care. It goes wrong because a notification was missed, a form changed, or a due date slipped past quietly on a Friday afternoon. The Knowledge Hub closes that gap.
We have been practising as cost accountants since 2001. Today that work covers four pillars: global accounting and compliance for clients across 9 countries (US, UK, UAE, Australia, Fiji, Singapore, Hong Kong, Brazil, Canada); cost management accounting and cost audit under India's statutory framework; strategic cost systems built on activity-based costing and MyABCM; and physical verification of inventory and fixed assets.
For companies covered by the Companies (Cost Records and Audit) Rules, 2014, the cost audit cycle runs on three forms, each with its own clock. Missing any one of them creates a cascading problem for the ones that follow, so the sequence is worth setting out plainly.
For years, cost records compliance under Section 148 was treated casually by many companies. That era is ending: MCA now cross-checks data companies already file elsewhere — most powerfully, HSN-wise turnover in GST annual returns (GSTR-9) — against the sector schedules and thresholds of the Cost Records and Audit Rules.
The single biggest predictor of a difficult cost audit is cost records reconstructed at year-end. The Rules require records in Form CRA-1 format — material costs, employee costs, utilities, overheads, and joint/by-product costs, captured at the product or service level as part of the books of account, on a continuous basis.
The Cost Accounting Standards Board of ICMAI has issued Cost Accounting Standard 25 (CAS-25), on the Valuation of Inventory, effective from 12 February 2026 for the preparation and certification of cost accounting statements.
The Corporate Laws Amendment Bill, 2026 proposes to name the managing director, whole-time director in charge of finance, Chief Financial Officer (CFO), or designated officers as personally accountable for compliance with the cost records provisions of Section 148.
Practical procedural guidelines for physical verification of plant machinery, raw materials, WIP, and finished goods, reconciliation of physical counts with books, and fixed asset tagging.
Regulatory guide for foreign companies establishing Wholly Owned Subsidiaries (WOS) or Branch Offices in India, covering Form FC-GPR filings, FIRC issuance, and RBI annual returns.
Operational framework for cross-border intercompany transactions, transfer pricing documentation, local file & master file requirements, and BEPS Action 13 compliance.
Essential compliance guidelines for US LLCs and C-Corps, covering 1099-NEC filing rules, economic sales tax nexus thresholds across states, and cash vs. accrual accounting.
Applicable legislation: Section 148 of Companies Act, 2013 and Companies (Cost Records and Audit) Rules, 2014, as amended.
Appointment of Cost Auditor
Within 30 days of Board meeting approving appointment, or within 180 days of commencement of FY, whichever is earlier.
The company must file Form CRA-2 electronically with the Central Government (MCA) to intimate the appointment of its statutory cost auditor.
Cost Audit Report Submission
Within 180 days from the close of the financial year (by 27 September for a 31 March close).
The cost auditor submits the audit report in Form CRA-3 to the Board of Directors, detailing unit costs, product-wise margins, reservations, qualifications, and suggestions.
Filing of Cost Audit Report with MCA
Within 30 days from the date of receipt of the cost audit report by the company.
The company files the cost audit report with the Central Government in Form CRA-4 in XBRL format under Costing Taxonomy, including explanations on any auditor qualifications.
• Updated CRA Forms (Effective 14 July 2025):
The Ministry of Corporate Affairs notified revised Forms CRA-2 and CRA-4 effective 14 July 2025. All intimations and filings must be executed using the latest versions on the MCA V3 portal.
• Continuous Records Maintenance (Form CRA-1):
Companies meeting Rule 3 turnover thresholds (≥ ₹35 Crore) must maintain cost records on a continuous monthly basis, rather than preparing retrospective reconciliations at year-end.
Statutory Disclaimer: This compliance calendar is provided for general informational purposes and does not constitute formal legal or tax opinion. Compliance obligations and filing deadlines may vary according to the company's industry, sector classification, and turnover mix. Please consult our certified cost accountants or the Ministry of Corporate Affairs for specific case applicability.
Our statutory cost accountants, tax advisors, and compliance experts are available to clarify complex MCA notifications, CRA filings, or global transfer pricing rules.