Once the Cost Auditor is appointed, what are the regulatory and other compliances a company needs to carry out ?

Every company required to get cost audit conducted under Section 148 of the Companies Act, 2013 has to carry out various regulatory and other compliances after appointment of Cost Auditor at the Board Meeting such as: Rule 6(2) of the Companies (Cost Records and Audit) Rules, 2014 provides that the company shall inform the cost auditor concerned of his/its appointment. According to Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the audit committee, if constituted by the company recommends to the Board a suitable remuneration to be paid to the cost auditor which shall be approved and considered by the Board of Directors. In case of other companies which are not required to constitute an audit committee, the Board shall consider and approve the remuneration of the Cost Auditor. Subsequently, the approved remuneration shall be ratified by the shareholders of the company. Further, a company is required to file a notice of such appointment with the Central Government in Form CRA-2, along with the specified fees within a period of 30 days of Board Meeting in which such appointment is made or within a period of 180 days of the commencement of the financial year, whichever is earlier. Within a period of 30 days from the date of receipt of a copy of the cost audit report in Form CRA-3, the company is required to furnish the same to the Central Government in Form CRA-4 along with specified fees. Such form shall contain full information and explanation on every reservation or qualification contained in the cost audit report. The company including all units and branches thereof is required to maintain cost records in Form CRA-1.