TaxTMI 
TaxTMI 
The Cost Accounting Records (Plantation Products) Rules, 2002.
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....sp; (a) the aggregate value of machinery and plant installed wherein, as on the last date of the preceding financial year, does not exceed limit as specified for a small scale industrial undertaking under the provisions of 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 crores of 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 commencement of these rules, keep proper books of account relating to utilisation of materials, labour and other items of cost in so far as they are applicable to any of the products referred to Appendix. The books of account, so maintained, shall contain, inter-alia, the particulars specified in Schedule annexed to these rules and Proformae A, B C, D, E and F mentioned in the said Schedule: Provided that if the said company is manufacturing any other....
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....S (1) The proper records shall be maintained showing separately all receipts, issues and balances both in quantities and values of each item of input materials required for production, processing or manufacturing of products referred to in Rule 2. These records shall contain such details so as to enable the company to determine the quantity and cost of receipt (including all direct charges up to Estate/works in respect of materials) issues and balances in quantity as well as value of each item of all such materials used in raising of nursery, clones, plantlets, shade management, cultivation of new sections, re-plantation of the sections, regular maintenance of existing plantation sections and processing of products produced. The basis on which 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 materials proper records shall be maintained showing FOB value, overseas freight, insurance, customs duty and inland freight charges etc. If both indigenous and imported materials are consumed, the records showing details of percentage mix of the same have to be mainta....
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....sp; (1) The proper records shall be maintained to show the attendance and earnings of all employees of the cost centres or estate and the work on which they are employed. The records shall also indicate the following separately for each cost centre or estate: (a) piece rate wages (wherever applicable); (b) incentive wages, either individually or collectively as production bonus or under any other scheme based on output; (c) overtime wages; (d) earnings of casual or contractual labour; (e) bonus or gratuity, statutory as well as other; (f) contribution to superannuation scheme; and (g) any other earning of the nature specified in (a) to (f) above. (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, D, E and F of Schedule annexed to these rules. The records may....
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....icate expenses incurred in respect of major service department or cost centre. These expenses shall be apportioned to other services production and processing departments on equitable and reasonable basis and applied consistently. Where these services are utilised for other products or activities of the company also, the basis of apportionment of such expenses to the products referred to in the Appendix and to other products or activities shall be on equitable and reasonable basis and applied consistently. 4. UTILITIES: (1) Water - The proper records showing the quantity and cost of water consumed, if any for the production, process, manufacture of product under reference shall be maintained. The cost of water shall be apportioned to the different cost centers or departments concerned on equitable and reasonable basis and applied consistently. (2) Steam - Where steam is raised by the company, proper records showing the quantity and cost of steam raised and consumed for the production, processing or manufacturing of the product(s) referred to in the Appendix shall be maintain....
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....sp; 6. DEVELOPMENT COST OF LANDS, NEW PLANTATION OR RE-PLANTATION: (1) The proper record shall also be maintained for new plantation/re-plantation development. These records shall indicate expenses on manuring, sapling, and plantation, pesticides, weedicides, infilling. These records shall be maintained section wise and year wise. (2) The expenses incurred on development of land, and new plantation/re-plantation shall be capitalised or charged off in accordance with the accounting standard/guidelines issued by the Institute of Chartered Accountants of India or other generally accepted accounting principles followed in respective plantation industries. (3) In case new plantation or re-plantation yields some crops during its period of immaturity, credit for sale of such crop shall be given to the development costs. The subsidy received from Government or Commodity Board each year till the new planted or replanted section matures shall be credited to the development cost of new plantation or re-plantation subject to accounting standard or guidelines issued by the Institute of Chartered Accountants of India. The net ca....
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....rding to functions, namely, up keep and maintenance of plantation, manufacturing, administration and sales etc. (2) Where the company is manufacturing product(s) other than the product(s) under reference, the records shall clearly indicate the basis followed for apportionment of the common overheads including head office expenses of the company to such product(s) and to other product(s) or activities 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 residual expenses under the above categories of overheads shall be apportioned on equitable and reasonable 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 and the products shall be indicated in the cost records. 9. ROYALTY OR TECHNICAL KNOW-HOW FEE OR LEASING CHARGES: (1) The adequate records shall be maintaine....
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....the enterprise has indicated its intention to produce and market or use the output or process; (4) there is a reasonable indication that current and future research and development costs to be incurred on the project together with expected production, administrative and selling costs are likely to be more than covered by related future revenues or benefits; and (5) adequate resources exist or are reasonably expected to be available to complete the project and market the output or process (3) The expenses incurred by the Research and Development Department for providing technical know-how to outsiders shall be recorded separately and excluded from the cost of product(s) under reference. The amount recovered for providing technical know-how to outsiders shall also be indicated separately and excluded from the income arising from the sale of product(s) under reference. 11. EXPENSES OR INCENTIVES ON EXPORTS: The proper records sh....
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....tputs shall be indicated in the cost records so as to reveal the cost element that have been taken into account in such computation. The appropriate share of conversion cost up to the stage of completion shall be taken into account while computing the cost of work in progress. The method adopted for determining the cost of work in progress and finished goods shall be followed consistently. 16. COST STATEMENTS (1) The cost statements showing details of total land, cultivated land, production, wastage and sales and all elements of cost of the current financial year and previous year shall be prepared for each product under reference in Proformae A, B, C, D, E and F.The product emerging from a process which forms raw material for a subsequent process, shall be valued at the cost of production upto the previous stage. (2) If the company is operating in more than one garden/manufacturing unit, separate cost statements as specified above shall be maintained in respect of each such garden or manufacturing unit. 17. PRODUCTION RECORDS: (1) The detailed recor....
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....followed for adjusting the cost variances in determining the actual cost of the product(s) shall be indicated clearly in the cost records. The reasons for the variances shall be duly explained in the cost records and statements. 20. STATISTICAL RECORDS: 1. Data regarding productivity and area under different sections namely nursery, re-plantation etc. shall be maintained. Details regarding section wise pruning shall also be maintained. 2. In the case of new projects for product under reference, proper records shall be maintained indicating the funds raised from different sources, their utilisation, stage-wise cost incurred and progress of the project as per the project report. Cost and time over run shall also be analysed with reference to the cost of services/ activity and profitability of the company 3. Whenever World Trade Organisation provisions are attracted, proper records shall be maintained to identify the competitiveness of the product in the domestic as well as global market and the expenses, if any, incurred to combat the competition arising out of World Trade Org....
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....product under reference. These records shall also indicate the basis followed for arriving at the rates charged or paid for such products or services so as to enable determination of the reasonableness of such rates in so far as they are in any way related to product under reference. (2) The transactions by the following "related party relationships" shall be covered under sub rule (1): - (a) enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries); (b) associates and joint ventures of the reporting enterprise and the investing party or venturer in respect of which the reporting enterprise is an associate or a joint venture; (c) individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual; (d) key management personnel and relative....
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....d of Directors in the case of a company or of the composition of the corresponding governing body in case of any other enterprise; or (iii) a substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the enterprise; (d) "significant influence" means participation in the financial and/or operating policy decisions of an enterprise, but not control of those policies; (e) "an Associate" means an enterprise in which an investing reporting party has significant influence and which is neither a subsidiary nor a joint venture of that party; (f) "a Joint venture" means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control; (g) "joint control" means the contractually agreed sharing of power to govern the financial and operating policies of an economic activity so as to obtain benefits from it; (h) "key management personnel" ....
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....p; 3. Wages and Salaries 4. Consumable Stores and spares 5. Repairs and Maintenance 6. Depreciation 7. Other Direct Expenses, if any 8. Other overheads 9. TOTAL 10. Less: Credit, if any 11. Net Total B. Apportioned to cost centre or activity 1. 2. 3. 4.etc. Notes: - 1. Separate cost sheet is to be prepared for each utility. 2. If any of the utilities, which are manufactured by the company, is sold to outside parties, proper credit should be given in the cost of production of the respective utility. 3. The proforma may be modified suitably to incorporate unit specific special features, if any, i....
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.... Other overheads 9. Total Cost of Nursery 10. Less: Credits, if any 11. Net Total (9-10) C. Nursery Plants used in No. of Plants Amount 1. Plantation 1 (to be specified) 2. Plantation 2 3. Plantation 3 Total Note: 1. Separate statement shall be prepared in respect of each type of plantation. 2. Delete items not applicable. 3. The proforma may be modified suitably to incorporate unit specific special features, if any, indicating reasons thereof. PROFORMA 'C' Name of the company : Name and address of Estate : Name of the Product: Statement showing the Cost of Development - New plantation, replantation or rejuvenation Name of Estate or Garden A. Quantitative Information Serial No. Particulars Unit Current y....
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.... Quantity sold to other units 8. Quantity of wastage 9. Net Quantity transferred to factory/works (6-7-8) 10. No of plucking or tapping days 11. No of man days for plucking or tapping 12. Plucking average B. Cost Information SL No Particulars Quantity Unit) Rate/Amount Cost Current Amount Per Unit Previous Amount (Rs) (Rs) (Rs) 1. Materials (Major items to be specified) 2 Wages and Salaries 3 Consumables and Spares 4. Other direct expenses(please specify) 5. Repair and Maintenance 6. Amortisation of cost of development program 7. Depreciation 8. Quality Co....
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....b) Export 13. Closing stock 14. Opening stock B. Cost Information SL. No. Particulars Quantity Rate Amount Cost Current year Per Unit Previous year (Unit) (Rs) (Rs) (Rs) (Rs) 1. Crop produced as per proforma D 2. Crop Purchased 3. Other materials,(specify) 4. Total Material Cost(1 to 3) 5.. Utilities (specify) 6. Wages and Salaries 7. Processing charges paid 8. Other direct expenses, if any 9. Consumable stores 10. Repair and maintenance 11. Depreciation ....
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.... products shall be indicated separately in the cost sheet. 3. The basis on which cost is apportioned to different grades of product along with their sales realisation shall be indicated in this proforma, as far as practicable. 4. Separate proforma shall be prepared for the quantity sold within the country and quantity exported. Expenses incurred on export and incentive earned thereon shall be indicated in the proforma for quantity produced and exported. 5. The proforma may be modified suitably to incorporate unit specific special features, if any, indicating reasons thereof. 6. Separate proformae shall be prepared in respect of related party transfers as defined under the rules. PROFORMA 'F' Name of the company: Statement showing the allocation or apportionment of total expenses or income of the company between activities covered under Appendix and other activities during the year ending: Serial No. Particulars Total actual expenses Share applicable to products covered under Appendix Share applicable to other activities Basis of allocation Plantation Processing Others (to be specified) 1.  ....