Bakul has recently joined the board of Lalan Lubricants Ltd. The company is in manufacturing sector and Bakul is of the opinion that based on the turnover of the company, cost audit might be applicable for financial year

i) Section 148(3) of the Companies Act, 2013 read with Rule 14 of the Companies (Audit & Auditors) Rules, 2014 prescribes that the Board of directors shall appoint, an individual, who is a cost accountant, or a firm of cost accountants in practice, as cost auditor on the recommendations of the Audit committee (if the Company has such a Committee, as the case may be) which shall also recommend remuneration for such cost auditor. ii) Every cost auditor, who conducts an audit of the cost records of a company, shall submit the cost audit report along with his or its reservations or qualifications or observations or suggestions, if any, in Form CRA-3 [Rule 6(4) of the Companies (Cost Records & Audit) Rules, 2014]. iii) As per rule 6(6) of the Companies (Cost Records & Audit) Rules, 2014, every eligible company covered under these rules shall, within a period of 30 days from the date of receipt of a copy of the cost audit report, furnish the Central Government with such report along with full information and explanation on every reservation or qualification contained therein, in Form CRA-4 in Extensible Business Reporting Language format along with fees specified in the Companies (Registration Offices and Fees) Rules, 2014.