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Company Law & MCA Compliance

Condonation of Delay — CCFS / MCA Late Filing

Condonation of Delay

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Overview

Condonation of delay is the statutory route by which a company regularises filings made after their due dates under the Companies Act 2013. The Act charges additional fees for late filings under Section 403, and the Registrar has the power to extend time or condone delays under Section 460. Through the Condonation of Delay Scheme (CCFS), the Ministry of Corporate Affairs has from time to time allowed companies to file belated forms — most commonly the annual filings of Form AOC-4 and Form MGT-7 — by paying the additional fee and regularising their MCA record (VERIFY: the validity window of the CCFS scheme current at the time of filing).

The value of condonation is a clean record. Companies that skipped annual filings for a year or more accumulate defaults that show up on every MCA search — a company with missing AOC-4 and MGT-7 filings is flagged as non-compliant, which banks, investors and counterparties read as a governance problem. Condonation lets the company pay the prescribed fee and bring the record current, so the filings read as filed rather than defaulted.

The cost of leaving late filings uncondoned compounds. The additional fee under Section 403 rises with delay, the defaults accumulate across years, and the company's DINs and the company itself face the consequences of a persistently non-compliant record — including the risk of the Registrar's powers under the Act being exercised against the company. At the point of a sale or a funding round, uncondoned defaults are a negotiable and expensive defect.

This service is for companies with late or missing MCA filings — AOC-4, MGT-7 and other forms — that want the record regularised. We compute the additional fee position under Section 403, prepare the belated filings and the condonation application under the applicable scheme and Section 460, pay the prescribed fees, and file everything through to the acknowledgment that brings the company current.

How It Works

  1. 1

    Default Assessment

    We identify every late or missing filing and compute the additional fee position under Section 403.

    Harun Raaj & Associates does this2-3 days
  2. 2

    Scheme Applicability Check

    We confirm the condonation route — the CCFS window or Section 460 — for your filing set.

    Harun Raaj & Associates does this1-2 days
  3. 3

    Belated Filings Preparation

    We prepare the late AOC-4, MGT-7 and other forms with the underlying data.

    Harun Raaj & Associates does this1-2 weeks
  4. 4

    Fee Payment & Filing

    We pay the additional fees and file the forms with the condonation application.

    Harun Raaj & Associates does this1 week
  5. 5

    Acknowledgment & Record Cleanup

    We confirm the filings and verify the MCA record reads current.

    Harun Raaj & Associates does this2-3 days

Frequently Asked Questions

Which companies must maintain cost records and file CCFS for FY 2025-26?
Under Rule 3 read with Rule 4 of the Companies (Cost Records and Audit) Rules 2014, companies in regulated sectors listed in Table A (pharmaceuticals, fertilisers, sugar, electricity, petroleum, etc.) with annual turnover of Rs 50 crore or more, and companies in non-regulated sectors in Table B with turnover of Rs 100 crore or more, must maintain cost records under Section 148(1) of the Companies Act 2013. The Cost Compliance Format Statement (CCFS) certifies that cost records have been maintained in Form CRA-1.
What is Form CRA-4 and when must it be filed?
Form CRA-4 is the MCA21 e-form prescribed under Rule 6(6) of the Companies (Cost Records and Audit) Rules 2014 for submitting the Cost Audit Report together with the full cost statements and CCFS to the Central Government. It must be filed within 30 days of receipt of the Cost Audit Report by the Board of Directors, subject to an outer limit aligned with the financial statement filing deadline under Section 137 of the Companies Act 2013. Additional fees under Section 403 and prosecution under Section 147 apply for late or non-filing.
Who is eligible to conduct a cost audit and how is the Cost Auditor appointed?
Only a Cost Accountant in practice holding a Certificate of Practice from ICAI-CMA (FCMA or ACMA) qualifies as a Cost Auditor under Section 148(3) of the Companies Act 2013. The Board appoints the Cost Auditor before the end of FY and must file Form CRA-2 on MCA21 within 30 days of appointment to intimate the Central Government. The appointment is ratified by shareholders at the Annual General Meeting. An existing statutory auditor cannot hold both roles simultaneously.
What cost records must be maintained and for how long?
Rule 5 of the Companies (Cost Records and Audit) Rules 2014 requires cost records in Form CRA-1 covering material consumption, utilities, direct labour, overheads, royalties, packing costs, and cost of production per product or service. Records must be maintained regularly so that cost of production and cost of sales can be computed for each product covered by the rules. Retention period is a minimum of 8 years from the end of the financial year. The records must be kept at the registered office or principal place of business.
What penalties apply for failure to maintain cost records or file the Cost Audit Report?
Section 147 of the Companies Act 2013 imposes penalties on both the company and every officer in default: imprisonment up to one year, or a fine between Rs 25,000 and Rs 5 lakh, or both. The Cost Auditor who fails to submit the report within the prescribed time faces a fine between Rs 25,000 and Rs 5 lakh. Where cost records are found deficient, the Central Government may order a special audit under Section 148(5). MCA has periodically issued prosecution notices for non-filing of CRA-4, making timely compliance important.

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