PRACTICAL
ASPECTS RELATING TO COMPLIANCE CERTIFICATION UNDER COMPANIES (COST ACCOUNTING
RECORDS) RULES , 2011
1. Introduction
The Central Government has mandated filing the Compliance
Report with the Central Government by the companies meeting the threshold
limits as per the below mentioned notifications and are not in exempted
categories as indicated in General Circular No. 67/2011 dated 30th November
2011 issued by the Ministry of Corporate Affairs read with MCA vide aforesaid
letter No F. No. 52/1/CAB‐2012 dated 25th May 2012.
1 GSR 429(E) dated 3rd June,
2011 issued Companies (Cost Accounting Records) Rules, 2011
(
Common CARR)
2 Industry specific Cost
Accounting Records Rules 2011 for six industries issued on 7th December 2011 (IS CARR)
(a)
GSR 869(E) – Cost Accounting Records (Telecommunication
Industry) Rules, 2011,
(b)
GSR 870(E)- Cost Accounting Records (Petroleum Industry)
Rules 2011,
(c)
GSR 871(E)- Cost Accounting Records (Electricity Industry)
Rules 2011,
(d)
GSR 872(E)- Cost Accounting Records (Sugar Industry) Rules
2011,
(e)
GSR 873(E)- Cost Accounting Records (Fertilizer Industry)
Rules 2011
(f)
GSR 874(E)- Cost Accounting Records (Pharmaceutical
Industry) Rules 2011,
2. Applicability
(a)
Common- CARR
As
per Rule 3 of the Common CARR, the rules shall apply to every company,
including a foreign company as defined under section 591 of the Act, which is
engaged in the production, processing, manufacturing, or mining activities and
wherein any one or more of the conditions given hereinafter are met. The
Common CARR are not applicable to the activities or products covered in the
IS-CARR.
(b)
IS-CARR
As
per Rule 3 of the respective IS- CARR, the rules shall apply to every
company, including a foreign company as defined under section 591 of the Act,
which is engaged in the production, processing, manufacturing, or activities as
mentioned in the respective CARR (e.g. Telecommunication, Petroleum,
Electricity, Sugar, Fertilizer and Pharmaceutical) and wherein any one or more
of the conditions given hereinafter are met.
The Conditions as prescribed in Common- CARR and IS-CARR are as follows:
1.
the aggregate value of net worth as on the last date
of the immediately preceding financial year exceeds five crores of rupees;
or
2. the
aggregate value of the turnover made by the company from sale or supply of all
products or activities during the immediately preceding financial year exceeds
twenty crores of rupees;
or
3.
the company’s equity or debt securities are listed or
are in the process of listing on any stock exchange, whether in India or
outside India.
The above conditions are mutually exclusive and a
company meeting with any of the condition shall be covered under the respective
cost accounting records rules.
The Common- CARR or IS-CARR
shall not apply to a body corporate governed by any special Act. Further,
Common CARR are not applicable on the companies/ industries covered under the
IS-CARR.
3
Compliance
Report
As per Rule 2 of respective CARR defines “Compliance
Report” means Compliance Report duly authenticated and signed by a cost
accountant in the prescribed form of compliance report.
3.1
Filing of Compliance Report
(a)
Common- CARR
As per Rule 5 of
the Companies (Cost Accounting Records) Rules 2011, every company to which
these rules apply shall submit a compliance report, in respect of each of its
financial year commencing on or after the 1st
day of April, 2011, duly certified by a cost accountant, along with the
Annexure to the Central Government, in the prescribed form.
(b)
IS-CARR
As per Rule 5 of respective Industry Specific Cost
Accounting Records Rules 2011, every company to which these rules apply shall
submit a compliance report, in respect of each of its financial year commencing
on or after the date of this notification (i.e. 7th December 2011 onwards), duly
certified by a Cost Accountant, along with the Annexure to the Central
Government, in the specified form.
3.2 Exemption from Filing Compliance Report
3.2.1
MCA vide General Circular No. 67/2011 dated 30th November
2011, clarified that the Companies (Cost Accounting
Records) Rules, 2011 are not applicable to:
(i) Wholesale or retail trading activities.
(ii)
Banking, financial, leasing, investment, insurance, education, healthcare,
tourism, travel, hospitality, recreation, transport services,
business/professional consultancy, IT & IT enabled services, research &
development, postal/courier services, etc. unless any of these have been
specifically covered under any other Cost Accounting Records Rules.
(iii)
Companies engaged in rendering job work operations or contracting/
sub-contracting activities, and are paid only the job work or conversion
charges, such as tailoring, baking, repairing, painting, printing,
constructing, servicing, etc.
(iv)
Companies engaged in the production, processing, manufacturing or mining
activities till such time they commences their commercial operations.
(v) Ancillary products/activities of companies
incidental to their main operations (i.e. products/activities that do not
constitute their main line of business) and wherein the total turnover from the
sale of each such ancillary products/activities do not exceed 2% of the total
turnover of the company or Rs.20 crores, whichever is lower. However, required
details of all such ancillary products/activities may be maintained under a
miscellaneous group and disclosed appropriately.
3.2.2
Ministry of Corporate Affairs vide letter no. F. No.
52/1/CAB-2012 dated 25th May 20112 clarified that there is no exemption
from filing of Compliance Report by the Construction Industry and mentioned the
following:
a) All
companies engaged in the construction and/or development (real estate)
businesses who meet with the threshold limits laid down in Rule 3 of the
Companies (Cost Accounting Records) Rules, 2011 shall be required to maintain
cost accounting records and file compliance report with the Central Government
in accordance with the provisions of these Rules. This includes companies
undertaking construction jobs with the use of own materials [whether
self-manufactured/produced or procured from outside] and/or development of
residential, commercial or industrial estates i.e. development of township,
residential units, commercial complex, office blocks, industrial parks
[including SEZ], etc. or construction of highways, rails, roads, bridges,
industrial & non-industrial structures, or other infrastructure facilities
etc. or construction activities undertaken under BOT/BOOT mode, or the projects
undertaken as EPC contractor or the projects undertaken abroad by a company
incorporated in India.
b) As per
MCA’s General Circular No. 67/2011 dated 30th November 2011, companies engaged
in construction business as contractors or sub-contractors wherein they are
paid only the conversion charges are exempted from the applicability of
Companies (Cost Accounting Records) Rules, 2011.
c) Companies (Cost Accounting Records) Rules, 2011 do
not apply to such Joint Ventures that are non-corporate entities [i.e. not
companies registered under the Companies Act] or to unlisted companies that are
below the specified threshold limits or to a body corporate governed by any
special Act.
d) As on date, no cost audit is applicable on the
companies engaged in the construction and/or development (real estate)
business. Hence, these companies are only required to maintain cost accounting
records and file compliance report with the Central Government that can be
signed by their employee cost accountant as defined in Rule 2(c) of the
Companies (Cost Accounting Records) Rules, 2011.
e) MCA vide aforesaid letter No F. No. 52/1/CAB‐2012
dated 25th May 2012 also clarified
that Joint Ventures that are non‐corporate entities [i.e. not companies
registered under the Companies Act] or to unlisted companies that are below the
specified threshold limits or to a body corporate governed by any special Act
are not required to file the compliance report.
3.2.4 MCA
General Circular No. 12/2012 dated 4th
June 2012 further clarified that in case of companies engaged in
production, processing, manufacturing or mining of multiple
products/activities, if any of their products/activities are not covered under
the industry specific Cost Accounting Records Rules, but are covered under the
Companies (Cost Accounting Records) Rules, 2011 notified vide GSR 429(E) dated
June 3, 2011 and wherein such products/activities are not covered under cost
audit vide cost audit orders dated June 30, 2011 and January 24, 2012; such
companies shall be required to file compliance report with the Central
Government in accordance with the clarifications given vide para (a) of the
MCA’s General Circular No. 68/2011 dated 30th November, 2011.
Provisions as per Para (a) of the MCA’s General
Circular No. 68/2011 dated 30th November, 2011 are as follows:
“That the companies covered under Companies (Cost
Accounting Records) Rules, 2011 shall only file a simple compliance report as
per the notified Form-B (copy enclosed) and no other details of cost records
are required to be filed with the Government. If all the products/activities of
a company, excluding the exempted categories, are covered under cost audit,
then the company will not be required to separately file the compliance
report.”
if one or more product(s)/activity(s) of a company is
covered under Cost Audit and there are other products covered under Common-CARR
or any of the IS-CARR but not covered under Cost Audit as per industry specific
Cost Audit Orders dated 2nd May, 2011, 30th June, 2011 or 24th January 2012,
the Company will be required to file a Compliance Report for the Company as a
whole covering products under cost audit and products not under cost audit.
Further, if one or more product(s)/activity(s) of a
company is covered under Cost Audit and there are other products not covered
under either Common-CARR or any of the IS-CARRs, then the company will not be
required to file a Compliance Report since the product(s)/activity(s) other
than product(s)/ activity(s) under Cost Audit are in the exempted category.
3.3 Form of Compliance Report
As per Rule 5 of the Common- CARR and IS-CARR, the
Compliance Report is to be filed in the prescribed/ specified Form. The
Compliance Report consists of (a) the e-Form to be filed by the Company; and
(b) Compliance Report and its Annexure:
(a) Form A
for filing Compliance Report and other documents with the Central Government
consists of Part I providing General Information of the Company and Part II
consists of the attachments and digital signatures on behalf of the Company.
(b) Form B is the Compliance Report and Annexure to
the Compliance Report.
However, Ministry of Corporate Affairs, vide
General Circular No. 8 dated 10th May 2012 has
mandated filing of Compliance Reports (Form-A) for the year 2011-12 onwards by
using the XBRL taxonomy.
3.4 Time Limit for Submission of Compliance Report
Every company to which respective cost accounting
records rules apply is required to submit the compliance report, to the Central
Government within a period of one hundred and eighty days from the close of
the company’s financial year to which the compliance report relates.
Time
Limit for the FY 2011-2012 : 31st January 2013
In case financial accounts are not ready or are yet to
be adopted in the AGM, the same was clarified by the Cost Audit Branch earlier
that the cost auditor can submit the report based on provisional accounts and
submit a supplementary report of reconciliation in case there are materials
differences in the final adopted accounts.
3.5 Authentication and Certification of Compliance
Report:
The Annexure to the compliance report is required to
be approved by the Board of Directors and certified by a Cost Accountant before
submitting the same to the Central Government by a company.
As per the respective Cost Accounting Records Rules,
2011 only Cost Accountant or Firm of Cost Accountants is eligible
to authenticate and issue the Compliance Report. The term "cost
accountant" as defined in the Rules means a cost accountants defined in
clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants
Act, 1959 (23 of 1959) and who is either a permanent employee of the company or
holds a valid certificate of practice under subsection (1) of section 6 and who
is deemed to be in practice under subsection (2) of section 2 of that Act and includes
a firm of cost accountants.
As
clarified by the Institute of the Cost Accountants of India through Frequently
Asked Questions that employee-cost accountant shall be eligible to authenticate
the Compliance Report of that Company only where he is working as permanent
employee and shall not be eligible to authenticate Compliance Report of any
other company even under the same group.
3.6 Mode and Period of Appointment of Cost Accountant
The Rules have not prescribed the
procedure for appointment of cost accountant in practice to authenticate the
Compliance Report. In case a company desires to have its Compliance Report
certified by a Practicing Cost Accountant, it is advisable to appoint the cost
accountant in practice by the Board of Directors since the Board has been made
responsible to approve the Annexure to Compliance Report before the same is
submitted to the Central Government. In case a company decides to get it
certified by a permanent employee of the organisation, nominating/authorizing
the employee cost accountant would be an internal matter of the company.
3.7 Maintenance of Cost Accounting Records
The Compliance Report should be prepared based on Cost
Accounting Records maintained by the Company including its units and branches,
in respect of each of its financial year. These cost records are required to be
kept on regular basis in such manner so as to make it possible to calculate per
unit cost of production or cost of operations, cost of sales and margin for each
of its products and activities carried out at individual production units or
locations for every financial year on monthly/quarterly/half-yearly/annual
basis.
Rule 4(3) of the respective cost accounting records
rules stipulates that the cost accounting records should be maintained in
accordance with the Generally Accepted Cost Accounting Principles (GACAP) and
Cost Accounting Standards (CAS) issued by the Institute of Cost Accountants of
India to the extent these are found relevant and applicable.
The cost records including statistical, quantitative
and other records which enable the company to exercise, as far as possible,
control over the various operations and costs with a view to achieve optimum
economies in utilization of resources are required to be maintained. Cost
records are required to be maintained on continuous basis from the basic stage
of inputs to the final output. These rules also require that the records should
be maintained in such a manner so that they are able to provide necessary data
which is required to be furnished under these rules.
The rules also require that all
such cost records and cost statements, maintained under these rules shall be
reconciled with the audited financial statements for the relevant financial
year specifically indicating expenses or incomes not considered in the cost
records or statements so as to ensure accuracy and to reconcile the costing profit
of all its products/activities with the overall profit of the company. The cost accountant is required to
clearly indicate and explain any variation, if any, in his compliance report or
cost audit report as the case may be.
3.8 Filing of Compliance Report in XBRL Format
Ministry of Corporate Affairs
(MCA) vide General Circular No. 8/2012 dated May 10, 2012 has mandated filing
of Cost Audit Reports and Compliance Reports in XBRL format from the financial
year 2011-12.
Central
Government vide General Circular no. 43/2012 dated December 26, 2012 has
extended filing of the Compliance Report in XBRL format till January 31, 2013.
Any valid Member of the Institute of Cost Accountants
of India who is either in full-time employment with the concerned company or is
holding full-time Certificate of Practice can only certify the Compliance
Report. Provided he is not signing the Compliance Report as Company Secretary
or as Director of the company.
General Instruction for Filing the Compliance Report
in XBRL Format
1. The
Compliance Report approved by the Board should be used as source for creation
of the XBRL instance Document.
2. The Compliance Report instance document should be
generated are as per the costing taxonomy notified by MCA. The instance
document should comply with the following conditions:
a. Completeness:
All the required information is reported in accordance with the Business
Rules in respect of Costing Taxonomy i.e. ensure that all mandatory items are
reported.
b. Mapping:
The elements tagged should be consistent with the meaning of the associated
cost concepts in the Compliance Report.
c. Accuracy:
The amounts, dates, other attributes (for example, Monetary units), and
relationships (order and calculations) in the instance document should be
consistent with the Compliance Report.
d. Structure: XBRL instances are structured in
accordance with the costing taxonomy.
3. The
XBRL Instance Document of Compliance Report is to be prepared on the basis of
audited/certified cost data and other statements of the company. To fulfill the
requirement of filing the cost data and other information as per the notified
costing taxonomy, the MCA has issued necessary amendments for both cost audit
report rules and compliance report.
4. The
Compliance Report should be prepared in hard copy for the approval of the Board
of Directors containing all the data that is to be filed with signatures of the
cost accountant, Company Secretary and a Director. The cost accountant should
take a human readable printout of the final instance document rendered by the
software tool to create the Instance Document and the same should be preserved
before uploading the requisite files on the MCA21 Portal.
As of now
the costing taxonomy does not permit any extensions. All the facts need to be
reported with the help of elements defined in the taxonomy.
6. “Product or Activity Group classification” in the
instance document should be strictly in accordance with the notification issued
by the Ministry of Corporate Affairs vide S.O. No. 1747(E) dated 7th August 2012.
The Companies (Cost Accounting Records) Rules 2011 as
well as the 6 Regulated Industries cost accounting records rules notified by
the MCA contained the Compliance Report format and Annexure to the Compliance
Report. A number of information was contained in the e-Form for filing of the
Compliance Report. In the Costing Taxonomy for Compliance Report, the
information contained under “General Information” in the e-form has been merged
and the entire information has now been made a part of the information required
to be filed in the Compliance Report
Frequently Asked Questions
Some of the FAQ on companies (Cost
Accounting Records) Rules ,2011 and the answer given by the institute of Cost
Accountants of India is reproduced here for your information:
1. What is the legal authority of the Companies (Cost
Accounting Records) Rules 2011?
Central
Government, in exercise of the powers conferred by clause (b) of sub-section (1)
of section 642 read with clause (d) of section 209 of the Companies Act, 1956
(1 of 1956), has notified Companies (Cost Accounting Records) Rules 2011.
2.
Under
which authority the Companies (Cost Audit Report) Rules are issued?
Central Government, in exercise of the
powers conferred by clause (b) of sub-section (1) of section 642 read with
sub-section (4) of section 233B, and sub-section (1) of section 227 of the
Companies Act, 1956 (1 of 1956), and in supersession of the Cost Audit Report
Rules, 2001 has issued these rules.
3.
What does turnover mean under these Rules? Is gross turnover Inclusive of
excise
duty?
As
per Rule 2(p), “Turnover” means gross turnover made by the company from the
sale or supply of all products or services during the financial year. It
includes any turnover from job work or loan license operations but does not include any non-operational income.
The term “Turnover” defined in the Companies (Cost Accounting Records) Rules,
2011 shall exclude taxes & duties. It shall have the same meaning, wherever
it appears, in all other orders/rules issued in connection with the cost
accounting records and cost audit.
4.
What constitutes the cost records under Rule 2(e)? Whether the format of
“Abridged
Cost statement” prescribed in the Companies (Cost Audit Report) Rules,
2011
can be considered as a sample cost statement?
Books of account and other records relating
to utilization of materials, labour and other items of cost that provides
data/information to compute the cost of production, cost of sales and margin of
each of the products/activities of the company on
monthly/quarterly/half-yearly/annual basis are considered part of the cost
records. It includes statistical, quantitative and other records which enable
the company to exercise, as far as possible, control over the various
operations and costs with a view to achieve optimum economies in utilization of
resources. Cost records are required to be maintained on continuous basis from
the basic stage of inputs to the final output.
There cannot be any exhaustive list of cost
records. This would depend on the materiality of cost components in the cost of
the product/activity.
The abridged cost statement can be used as
a sample cost statement. This may be modified according to the need of the
company.
5.A
company has been in existence since 1990 and is covered under cost audit for
the first time in 2011-12. Whether it is mandatory to indicate previous year
figure while submitting the report?
A company coming under the purview of the
Cost Audit for the first time, the cost auditor shall mention figures for the
previous year (s) certifying by means of a note that the figures so stated are
on the basis of information furnished by the management, for which he has
obtained a certificate from them.
6.
What are circumstances under which a company can apply for exemption from
application of the Companies (Cost Accounting Records) Rules 2011 or Companies
(Cost Audit Report) Rules 2011?
There is no exemption available to a company
from the provisions of Companies (Cost Accounting Records) Rules 2011 or
Companies (Cost Audit Report) Rules 2011.
PENAL PROVISIONS FOR NON-COMPLIANCE:
NON-COMPLIANCE BY COMPANY
If a Company contravenes any provision
of this circular, the company and every officer thereof who is in default,
including the persons referred to in sub-section (6) of Section 209 of the Act
shall be punishable as provided under sub-section (2) of Section642 read with
sub-section (5) and (7) of Section 209 and sub-section (11) of Section 233B of
Companies Act, 1956.
Relevant provisions of Section 209 of the Companies Act,
1956 are as follows:
Sub-section (5) of Section 209
provides that if any of the persons referred to in sub-section (6) fails to
take all reasonable steps to secure compliance by the company with the
requirements of this section, or has by his own wilful act been the cause of
any default by the company there under, he shall, in respect of each offence,
be punishable with imprisonment for a term which may extend to six months, or
with fine which may extend to ten thousand rupees, or with both:
Provided that in any proceedings
against a person in respect of an offence under this section consisting of a failure
to take reasonable steps to secure compliance by the company with the
requirements of this section, it shall be a defence to prove that a competent
and reliable person was charged with the duty of seeking that those
requirements were complied with and was in a position to discharge that duty:
Provided further that no
person shall be sentenced to imprisonment for any such offence unless it was
committed wilfully.
Sub-section (6) of
Section 209 provides that the persons referred to in sub-section (5) are the
following, namely:—
(a) where the company has a managing director or
manager, such managing director or manager and all officers and other employees
of the company; and
(d)
where the company has neither a managing director nor manager, every director
of the company;
Sub-section
(7) of Section 209 provides that if any
person, not being a person referred to in sub-section (6), having been charged
by the managing director, manager or Board of directors, as the case may be,
with the duty of seeing that the requirements of this section are complied with
makes default in doing so, he shall, in respect of each offence, be punishable
with imprisonment for a term which my extend to six months, or with fine which
may extend to ten thousand rupees, or with both.
Relevant provision
of Section 642 of the Companies Act 1956
is as under:
Sub-section
(2) of Section 642 provides that any rule made under sub-section (1) may
provide that a contravention thereof shall be punishable with fine which may
extend to five thousand rupees and where the contravention is a continuing one,
with a further fine which may extend to five hundred rupees for every day after
the first during which such contravention continues.
Non
compliance by Cost Auditor:
If default ismade by the cost
auditor in complying with the aforesaid provisions, he shall be punishable with
fine, which may extend to five thousand rupees.
ANNEXURE TO THE COMPLIANCE REPORT
|
[See
rule 2 and rule 5]
|
1. GENERAL:
|
|
|
|
|
a
|
Name of the company
|
XXXX Private Limited
|
b
|
Registered office address:
|
New Delhi
|
c
|
Financial Year to which the Compliance Report Relates
|
2011-2012
|
|
|
2. QUANTITATIVE INFORMATION:
|
|
|
|
|
Sno.
|
Name or the Product or Service group
|
Unit
|
Annual
Production
|
Net
Sales
|
|
|
|
(Quantity)
|
(Quantity)
|
(Value in Rupees)
|
A
|
Produced /Manufactured Product Groups
|
|
|
|
|
1
|
Tools ……………… (4013)
|
Nos
|
|
|
|
2
|
NA
|
|
|
|
|
B
|
Services Groups
|
|
|
|
|
1
|
NA
|
|
|
|
|
2
|
NA
|
|
|
|
0.00
|
C
|
Trading Activities ( Product Group wise)
|
|
|
|
|
1
|
Wholesale Trading of ……. (8013)
|
Kgs
|
NA
|
|
|
2
|
Wholesale Trading of Segments (8013)
|
Nos
|
NA
|
|
|
3
|
Wholesale Trading of …………………(8013)
|
Mtr
|
NA
|
|
|
D
|
Other Income
|
|
|
|
|
1
|
Interest Income
|
|
|
|
|
2
|
Income Tax refund
|
|
|
|
|
3
|
Others
|
|
|
|
|
4
|
|
|
|
|
|
5
|
|
|
|
|
|
|
Total
|
|
|
|
|
3
|
RECONCILIATION STATEMENT
|
|
|
|
(Value in Rupees)
|
Net Margin (Profit /Loss) as per Cost Accounts
|
|
|
|
|
A
|
From Produced / manufactured Product Groups
|
|
|
|
|
B
|
From Services Groups
|
|
|
|
|
C
|
From Trading Activities
|
|
|
|
|
Total as per Cost Accounts
|
|
|
|
|
Add: Incomes not considered in Cost Accounts
|
|
|
|
|
a
|
Interest Income
|
|
|
|
|
b
|
Income Tax refund
|
|
|
|
|
c
|
Others
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub Total
|
|
|
|
|
Less: Expenses not considered in Cost Accounts
|
|
|
|
|
a
|
Provision for
Waranties
|
|
|
|
|
|
Exchange Difference(net)
|
|
|
|
|
|
Bad Debts Written
off
|
|
|
|
|
|
Provision for doubtful
Debts
|
|
|
|
|
|
Loss on sale of
Fixed Assets
|
|
|
|
|
|
|
|
|
|
|
|
Sub Total
|
|
|
|
|
Add/less: Difference in Stock Valuation
|
|
|
|
|
Profit/(Loss) as per Financial Accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
:
The
above given annexure looks very simple but professionals and corporate
management must take seriously the importance of Net Margin ( Profit/loss) as
per Cost Accounts from
----
produced /manufactured product groups
----
Trading Activities
----
Service Groups
Normally
financial statement shows net profit from all activities , includes both operational
and non-operational income . Though it is relatively easy to separate
operational income and non-operational income , normally it is very difficult
to separate net margin from manufacturing activity and trading activity from
the financial statement. To arrive at exact
margin under various activities , the company has to prepare documents as companies
(cost accounting records) rules ,2011 .
A proforma to
finding costing profit/loss under various heads is given below. The proforma
gives a broad idea only . The company has to prepare detailed cost sheet for each product to find profitability of
each product and sum up those to arrive at the costing profit / loss of company
as a whole.
STATEMENT SHOWING COST OF PRODUCTION
AND SALES
|
XXXXXXX PRIVATE LIMITED
|
|
|
|
|
|
|
|
Mannufacturing
|
Trading
|
Service
|
|
Sl.No
|
Particulars
|
Product
1
|
Product
2
|
|
|
Total
|
1
|
Material
-Imported
|
|
|
|
|
|
|
Material
-Indegenous
|
|
|
|
|
|
2
|
Processing
Charges , if any
|
|
|
|
|
|
3
|
Utilities
|
|
|
|
|
|
4
|
Direct
Employee Cost (Note 2)
|
|
|
|
|
|
5
|
Direct
Expenses (Note 3)
|
|
|
|
|
|
6
|
Consumables
and Stores
|
|
|
|
|
|
7
|
Repair
& maintanance
|
|
|
|
|
|
8
|
Quality
Control Expenses
|
|
|
|
|
|
9
|
Research
& Development Expenses
|
|
|
|
|
|
10
|
Technical
Knowhow Fee / Royalty
|
|
|
|
|
|
11
|
Depreciation
/ Amortisation
|
|
|
|
|
|
12
|
Other
production Overheads (Note 4)
|
|
|
|
|
0
|
13
|
Total
(1 to 12)
|
0
|
0
|
0
|
0
|
0
|
14
|
Add/Less:
WIP Adjustments (Note 5)
|
|
|
|
|
|
15
|
Less:
Credits for recoveries
|
|
|
|
|
0
|
16
|
Primary
Packing Cost
|
|
|
|
|
0
|
17
|
Cost
of Production/ Operations(12+13 to 17)
|
0
|
0
|
0
|
0
|
0
|
18
|
Increase
/Decrease in Stock of Finished Goods (Note 6)
|
|
|
|
|
0
|
19
|
Less:
Self/Captive Consumption
|
|
|
|
|
0
|
20
|
Other
Adjustements(if any)
|
|
|
|
|
0
|
21
|
Cost
of Production/ Operations/services sold(17+18 to 20))
|
0
|
0
|
0
|
0
|
0
|
22
|
Administrative
Overheads (Note 7)
|
|
|
|
|
0
|
23
|
Secondary
Packaging Cost
|
|
|
|
|
|
24
|
Selling
& Distribution Overheads (Note 8)
|
|
|
|
|
0
|
25
|
Interest
& Finance Charges
|
|
|
|
|
0
|
26
|
Cost
of Sales(21+22 to 25)
|
0
|
0
|
0
|
0
|
0
|
27
|
Net
Sales Realisation(Net of Taxes and Duties) (Note 9)
|
|
|
|
|
|
28
|
Margin
(Profit/(Loss) as per cost Accounts (27-26)
|
0
|
0
|
0
|
0
|
0
|
List of Industry/Activity under Cost Audit
as on date
Effective on all Companies
having turnover of Rs. 20 crores or more or having net worth of Rs. 5 crore
or listed or getting listed in any Stock Exchange
|
S.No.
|
Name of the Industry
|
Description of Activity
and Relevant Chapter Heading of the Central Excise Tariff Act, 1985
|
Effective from Financial
Year commencing
|
1.
|
Telecommunication Industry
|
Act, process, procedure,
function, operation, technique, treatment or method employed in relation to
telecasting, broadcasting, telecommunicating voice, text, picture,
information, data or knowledge through any mode or medium
|
1st April 2011
|
2.
|
Petroleum Industry
|
Chapter 27 of CETA 1985 or
Production, processing,
manufacturing or mining of crude oil, gases [including Natural Gas,
Compressed Natural Gas, Liquefied Petroleum Gas and regasified gases, etc. as
defined in the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of
2006)] or Biogas or any other petroleum products
|
1st April 2011
|
3.
|
Electricity Industry
|
Generation of electricity
from any source of energy, and includes transformation, transmission,
distribution, and/or supply of electricity by any mode, or medium
|
1st April 2011
|
4.
|
Sugar Industry
|
Chapters 17 and 22 of CETA
1985 or
Production, processing, or
manufacturing of any form or grade of sugar, molasses, or alcohol (including
ethyl alcohol, rectified spirit, absolute alcohol, denatured alcohol, power
alcohol, or solvent blends etc. but excluding potable alcohol) by using any raw
materials
|
1st April 2011
|
5.
|
Fertilizer Industry
|
Chapter 31 of CETA 1985 or
Fertilizers as defined in
clause (h) of Section 2 of the Fertilizer (Control) Order, 1985 made under
Section 3 of the Essential Commodities Act, 1955 (10 of 1955)
|
1st April 2011
|
6.
|
Pharmaceutical Industry
|
Chapters 29 and 30 of CETA
1985 or
Production, processing, or
manufacturing of bulk drugs or formulations and includes the meaning assigned
to them under the Drugs (Prices Control) Order 1995
|
1st April 2011
|
List of Industry/Activity
under Cost Audit as on date
Effective on all Companies
having turnover of Rs. 100 crores or more or listed or getting listed in any
Stock Exchange
|
SNo.
|
Name of the Industry
|
Description of Activity
and Relevant Chapter Heading of the Central Excise Tariff Act, 1985
|
Effective from Financial
Year commencing
|
7.
|
Cement
|
Chapter 25, 38 and 68 of CETA
1985
|
1st April 2011
|
8.
|
Tyres & Tubes
|
Chapter 40 of CETA 1985
|
1st April 2011
|
9.
|
Steel
|
Chapter 72 and 73 of CETA
1985
|
1st April 2011
|
10.
|
Paper
|
Chapter 47 and 48 of CETA
1985
|
1st April 2011
|
11.
|
Insecticides
|
Chapter 38 (includes all
classes of Insecticides as defined under clause (e) of section 3 of the
Insecticides Act, 1986 (46 of 1968) and included in the schedule annexed to
the said Act and as amended from time to time.
|
1st April 2011
|
12.
|
Glass
|
Chapter 70 of CETA 1985
|
1st April 2011
|
13.
|
Paints & Varnishes
|
Chapter 32 of CETA 1985
|
1st April 2011
|
14.
|
Aluminum
|
Chapter 76 of CETA 1985
|
1st April 2011
|
15.
|
Jute, Cotton, Silk, Woolen or
Blended Fibers/Textiles
|
Chapters 50 to 63 of CETA
1985
|
1st April 2012
|
16.
|
Edible Oil Seeds and Oils
(including vanaspati)
|
Chapters 12 and 15 of CETA
1985
|
1st April 2012
|
17.
|
Packaged Food Products
|
Chapters 2 to 25 (except
Chapters 5, 6, 14, 23 and 24) of CETA 1985
|
1st April 2012
|
18.
|
Organic & Inorganic
Chemicals
|
Chapters 28, 29, 32, 38 and
39 of CETA 1985
|
1st April 2012
|
19.
|
Coal & Lignite
|
Chapter 27 of CETA 1985
|
1st April 2012
|
20.
|
Mining & Metallurgy of
Ferrous & Non-Ferrous Metals
|
Chapters 26 and 74 to 83
(except Chapters 76 and 77) of CETA 1985
|
1st April 2012
|
21.
|
Tractors & other Motor
Vehicles (incl. automotive components)
|
Chapters 84, 85 and 87 of
CETA 1985
|
1st April 2012
|
22.
|
Plantation Products
|
Chapters 8, 9, 21 and 40 of
CETA 1985
|
1st April 2012
|
23.
|
Engineering Machinery (incl.
|
Chapters 84 and 85 of CETA
1985
|
1st April 2012
|
compiled by :
CMA Krishna Dasan.A
Mob: 9871128831
Email: aknair2002@cmaglobal.net.in