Companies Cost Records and Audit Rules, 2025: CRA-2 and CRA-4 Forms Updated [ Read Notification]

The focus of this amendment is to replace and modernize two key forms used by companies: Form CRA-2 and Form CRA-4. These forms are used to appoint cost auditors and to file cost audit reports with the Central Government. Let’s break down the updates in simple terms.

What Are CRA-2 and CRA-4 Forms?

• Form CRA-2: This is the form companies use to inform the government about the appointment of a cost auditor.
• Form CRA-4: This form is used to submit the actual cost audit report to the government after it is completed.

Step by Step Guide of Preparing Company Balance Sheet and Profit & Loss Account Click Here

What’s New in the 2025 Amendment?

Updated CRA-2 Form

The revised CRA-2 form is more detailed and covers different types of auditor appointments:

• Original appointment
• Appointment due to company merger or demerger
• Appointment due to a vacancy (for example, if the previous auditor resigned or passed away)
• Appointment when new products or services are added

New features include:

• Selection of the reason for filing.
• Financial year details.
• Complete details of the cost auditor(s) including membership number, PAN, firm registration number, contact details, and the scope of work.
• Specifics on industries or services audited, both regulated and non-regulated.
• Declaration that the auditor’s consent and certificate have been obtained as per rules.

This ensures transparency and accuracy in reporting who is responsible for auditing the company's cost records.

Updated CRA-4 Form

The CRA-4 form has been updated to make cost audit reporting more precise and accountable. It now includes:

• Whether there has been any change in the financial year.
• If an AGM extension was granted and related SRN details.
• Information about the board meeting in which the audit report was approved.
• The number of regulated and non-regulated products or services covered under the audit.
• Auditor details, including whether the audit was qualified, had reservations, adverse remarks, or recommendations.
• A mandatory upload of the cost audit report in XBRL format (a digital standard used for financial reporting).

These updates help the government standardize and digitize cost audit submissions for easier analysis and better compliance monitoring.

Why These Changes

1. Better clarity and structure in the forms make it easier for companies to comply correctly.
2. Digital reporting (XBRL) improves data accuracy and analysis by regulators.
3. Clear guidelines for exceptional cases like mergers, vacancies, and product additions remove confusion.
4. Improved transparency with detailed auditor and company information.
   
   

Step by Step Guide of Preparing Company Balance Sheet and Profit & Loss Account Click Here

No. 1/40/2013-CL-V

Who Needs to Use These Forms?

Any company that is required to maintain cost records and conduct a cost audit under Section 148 of the Companies Act, 2013, must use the new CRA-2 and CRA-4 forms for filings made on or after July 14, 2025.

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