TaxTMI 
TaxTMI 
Cost Accounting Records (Electronic products) Rules, 2001.
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....endix to these rules : Provided that these rules shall not apply to a company, (a) the aggregate value of the machinery and plant installed wherein, as on the last date of the preceding financial year, does not exceed the limits as specified for a small scale industrial undertaking under the provisions of the Industries (Development and Regulation) Act, 1951 (65 of 1951); and (b) the aggregate value of the turnover made by the company from sale or supply of all its products during the preceding financial year does not exceed ten crore rupees. 3. Maintenance of records - (1) Every company to which these rules apply shall, in respect of each of its financial year commencing on or after the 1st day of April, 2001 keep proper books of account containing, inter-alia, the particulars specified in Schedule I annexed to these rules and Proformae A,B,C and D, relating to the utilization of materials, labour and other items cost in so far as they are applicable to the manufacture or production of Electronic products and components referred to in rule 2: Provided that if the said company is manufacturing any other product(s) or is engaged ....
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....of rule 3, the company and every officer thereof who is in default, including the persons referred to in sub-rule (4) of rule 3, shall, subject to the provisions of section 209 of the Companies Act, 1956 (1 of 1956) 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 day during which such contravention continues. APPENDIX (See rule 2) List of Electronic products and components for which the rule shall apply : 1. All Consumer electronics such as television both black & white and colour, video cassette recorder, video cassette player, audio compact disc player, video compact disc player, digital video compact disc player, radio receiver, tape recorder & combination, electronic watch and electronic clock, etc. 2. Industrial electronics including all control instrumentation and automation equipment. 3. Computer including personal computer, laptop, note book, server, workstations, supercomputers, data processing equipment and peripherals like m....
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....es in quantity as well as value of each item of all such raw materials. The basis on which the said quantities and costs of issue and consumption have been calculated, shall be indicated in the cost records and followed consistently. In the case of imported raw materials, records shall be maintained showing FOB value, overseas freight, insurance, customs duty and inland freight charges. If both indigenous and imported materials are consumed, the records showing details of percentage mix of the same have to be maintained for each item. Materials processed through outside parties shall be recorded separately. (2) The proper records shall be maintained to show the receipts, issues and balances, both in quantities and cost of each item of consumable stores, tools and machinery spares etc. The cost shall include all direct charges upto works. (3) In the case of consumable stores and small tools the cost of which are insignificant, the company may, if it so desires, mai....
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....p; (c) overtime wages; (d) earnings of casual labour; (e) bonus or gratuity, statutory as well as other; (f) contribution to superannuation scheme (g) any other earning. (2) The records shall be maintained in such a manner as to enable the company to furnish necessary particulars under this head in Proformae A, B, C and D of Schedule I annexed to these rules. The records may be maintained to book these expenses cost centrewise or departmentwise as related to manufacture of Electronic products. Where the employees work in such a manner that it is not possible to identify them with any cost centre or department, the labour charges shall be apportioned to the cost centres or departments on equitable and reasonable basis and applied consistently. (3) The idle labour cost shall be separately recorded under classified headings indicating the reasons therefor. The method followed for accounting of idle time ....
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....g impact on unit cost of production. (2) Other Utilities- Proper records showing quantity and cost shall be maintained in respect of utilities other than power produced or purchased by the company for the production or manufacture of Electronic products and components thereof. 5. WORKSHOP OR REPAIRS AND MAINTENANCE OR TOOL ROOMS: (1) The proper records showing the expenditure incurred by the workshop or tool room under different heads and on repairs and maintenance in the various cost centres or departments shall be maintained. The records shall also indicate the basis of charging the workshop or tool room expenses to different cost centres or departments. Where maintenance work is done by direct workers of any production cost centre or department, the wages and salaries of such workers shall be treated as direct expenses of the respective cost centre or department. If the services are utilized for other products also, the manner of charging a share to such products shall be on equita....
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....of the common overheads including head office expenses of the company to such product(s) and Electronic products and components thereof, including capital works. Where certain expenses forming part of overheads can be identified with a particular activity or a product, such expenses shall be first segregated and charged to the relevant activity or product and thereafter the residue expenses under the above categories of overheads shall be apportioned on a reasonable and equitable basis and applied consistently. The overheads chargeable to capital works shall be indicated separately in the cost records. The basis of apportionment or absorption of overheads to the cost centres or departments and products shall be indicated in the cost records. The records shall be maintained in such a manner as to indicate the details of works, administration, selling and distribution overheads. The proper records shall be maintained for the critical spare parts supplied along with the product and shall be shown as part of the selling & distribution expenses. 8. ROYALTY OR TECHNICAL KNOWHOW FEE: The adequate records shall be maintained showing the royalty and/or technical know-how fee inc....
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....nbsp; 11. INTEREST: The proper records shall be maintained for interest charges paid. The amount of interest shall be allocated or apportioned to the product covered by these rules and other activities on a reasonable and equitable basis and applied consistently. The basis of further charging of the share of the interest to the various types of such products shall also be on a reasonable and equitable basis and applied consistently. The basis of such allocation or apportionment shall be spelt out clearly in the cost records or statements. 12. EXPENSES OR INCENTIVES ON EXPORTS: The proper records showing the expenses incurred on the export sales, if any, of the Electronic products and components shall be separately maintained so that the cost of export sales can be determined correctly. Separate cost statement shall be prepared for Electronic products and components exported giving details of export expenses incurred ....
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....cturing in different production centres and going into final assembly of the product under reference, shall be valued at the cost of production up to the stage of such transfer. (3) If the company is operating more than one plant or factory, separate cost statements as specified above shall be prepared in respect of each plant or factory. 17. PRODUCTION RECORDS: Quantitative records of all finished goods, whether packed or unpacked, showing production, issues for sales and balances of different types of the product under reference shall be maintained. 18. RECONCILIATION OF COST AND FINANCIAL ACCOUNTS: (1) The cost statements shall be reconciled with the financial statements for the financial year specifically indicating the expenses or incomes not considered in the cost records or statements so as to ensure accuracy and to adjudge the profit of the product under reference with the overall profit of the company. The variations, if any, shall be clearly indicated and explained. (2) A state....
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....ely impact thereon on account of competitive goods imported in to the country. These records shall indicate, inter alia, the total volume of imports, names of importers countries of origin and contain such empirical evidence as to show whether such imports can be construed as dumping and affecting the market share of the product. Proper records shall also be maintained, containing such details as may be necessary to show that the export price of the product is not such as to be construed as dumping in the importing country, by applying the provisions of WTO regarding anti dumping measures under Article VI of GATT 94. 21. POLLUTION CONTROL: Expenditure incurred by the company on various measures to protect the environment like effluent treatment, control of pollution of air, water, etc., should be properly recorded. 22. HUMAN RESOURCES DEVELOPMENT: &nbs....
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.... Statement showing the cost of components or casting produced or manufactured during the year/period : A. Quantitative Information: In Numbers Sl. No Particulars Current Year Previous Year 1. Installed Capacity 2. Quantity Produced 3. Capacity Utilization 4. Quantity sold (a) Domestic (b)Export 5. Captive consumption 6. Closing stock 7. Opening stock B. Financial Information: Serial Number Particulars Quantity Rate Amount Per(in Unit) Rupees per unit (Rupees) Current Year (Rupees) Previous Year (Rupees) 1. Material cost : (item wise covering 80% of value) (a) Raw materials (specify major items) (b) Bought out semi- finished components (c) Others (d)Total(a to c) 2. Direct Wages and Salaries 3. Outside Job Charges &n....
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....; 6. Closing stock 7. Opening stock B. Financial Information: Serial Number Particulars Quantity Rate Amount Per(in Unit) Rupees per unit (Rupees) Current Year (Rupees) Previous Year (Rupees) 1. Material cost : (itemwise covering 80% of value) (a) Raw materials (specify major items) (b) Manufactured component (c) Bought out component (d) Others (e) Total(a to d) 2. Direct Wages and Salaries 3. Outside job charges 4. Utilities (a) Power (b) Others (specify major items) (c) Total(a and b) 5. Consumable Stores and spares 6. Depreciation 7. Repairs and maintenance 8. ....
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.... : Name and address of the factory : Statement showing the total production and allocation of total actual expenses and income of the company among various Electronic products and other activities for the year ending : A. Production Data: Serial Number Particulars Current Year Previous Year Current Year Previous Year Product 1 Product 2 1. Installed capacity 2. Budgeted capacity 3. Actual production during the year 4. Percentage of (3) to(1) 5. Percentage of (3) to(2) B. Allocation of total expenses and income for the year ending : Serial number Particulars Total actual expenses Share applicable to other activities not under reference Share applicable to Electronic Product 1 Share applicable to Electronic Product 2 and so on 1. Raw-material consumed 2. Process materials/chemicals consumed ....