Form CRA-3

[See rule 6(4) of the Companies (Cost Records and Audit) Rules, 2014]

FORM OF THE COST AUDIT REPORT

I/vve,...................... having been appointed as Cost Audiio(s) under sutssection (3) of section 148 of the Companies Act, 2013 (18 of 2013) of .-........................(mention name of the company) having its registered office at .............. ......... (mention registered office address of the company) (hereinafter refened to as the company), have audited the Cost Records maintained under seclion 148 of the said Act, in compliance with lhe cosl auditing standards, in respect of the.... ..lmention name (s) of Produc(s) / service(s)l for the peraod/year............ (mention the financial year) maintained by lhe company and report, in addition lo my/our observations and suggestions in paragraph 2.

(i)  l/We have/have not obtained all the information and explanations, which to the best of my/our knowledge and belief were necessary for the purpose of this audit.

(ii) In my/our opinion, proper cost records, as per rule 5 of the Companies (Cost Records and Audit) Rules, 2014 have/have not been maintained by the company in respect of prodlct(s)/service(s) under reference.

(iii) In my/our opinion, proper relums adequate for the purpose of the Cost Audit have/have not been received from the branches not visited bv me/us.

(iv) In my/our opinion and to the best of my/our information, the said books and records give/do not give the information required by the Companies Act, 2013, in the manner so required.

(v) In my/our opinion, the company havdoes not have adequate system of internal audit of cost records which to my/our opinion is commensurate to its nature and size of its business.

(vi) In my/our opinion, information, statements in the annexure to this cost audit report giveydoes not give a true and fair view of the cost of production of product(s)/rendering of service(s), cost of sales, margin and other information relating lo product(syservice(s) under reference.

(vii) Detailed unilwise and producuservice-wise cost statements and schedules thereto in respect of the producvservice under reference of the company duly audited and certified by me/us arelare not kept in the company.

2. Observations and suggestions, if any, of the Cost Auditor, relevant io the cost audit.

Dated: this day of ......20_at _ (mention name of place of signing lhis report) SIGNATURE ANO SEAL OF THE COST AUDITOR (S) MEMBERSHIP NUMBER (S)

¹"(3) The Unit of Measurement (UOM) for each Customs Tariff Act Heading, wherever applicable, shall be the same as provided for in the Customs Tariff Act, 1975 (51 of 1975) corresponding to that particular Customs Tariff Act Heading.”

NOTES:

(1) Delete words not applicable.

(2) lf as a result of the examination of the books of account, the Cost Auditor desires to point out any material deficiency or give a qualified report, he or she shall indicate the same against the relevant para (i) to (vi) in the prescribed form ofthe Cost Audit Report giving details ofdiscrepancies he/she has come across.

(3) The report, suggestions, observations and conclusions given by the Cost Auditor under this paragraph shall be based on verified data, reference to which shall be made here and shall, wherever practicable, be included afterthe company has been afforded an opportunity to comment on ihem.

1. Inserted by Notification Dated 3rd December, 2018 -  Original Content.