TaxTMI 
TaxTMI 
The Cost Accounting Records (Fertilizer Industry) Rules, 2011
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....eans the Companies Act, 1956 (1 of 1956); (b) "compliance report" means the compliance report duly authenticated and signed by a cost accountant in the specified form of compliance report; (c) "Cost Accountant" for the purpose of these rules means a cost accountant as 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 sub‐section (1) of section 6 and who is deemed to be in practice under sub‐section (2) of section 2 of that Act and includes a firm of cost accountants; (d) "Cost Accounting Standards" means the standards of cost accounting, issued by the Institute; (e) "cost records" means books of account relating to utilisation of materials, labour and other items of cost as applicable to the production, processing, manufacturing or mining activities of the company; (f) "fertilizer activities" means production, processing, manufacturing or mining of any type of fertilizers whether nitrogenous, phosphatic, potassic or complex (organic, inorganic or mixed) and includes all types of fertilizers....
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....ules, as the case may be. 3. Application, - These 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 of fertilizer activities and wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crores of rupees; or wherein 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 wherein 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: Provided that these rules shall not apply to a body corporate governed by any special Act. 4. Maintenance of records, - (1) Every company to which these rules apply, including all units and branches thereof shall, in respect of each of its financial year commencing on or after the date of this notification, keep cost records and the books of account so maintained shall contain, inter‐alia, the particulars specified in Proformae A to G m....
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....Cost Accountant, along with the Annexure to the Central Government, in the specified form. 6. Time limit for submission of Compliance Report, - Every company shall submit the compliance report referred to in rule 5 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. 7. Authentication of Annexure to the Compliance Report, - The Annexure to the compliance report shall be approved by the Board of Directors and certified by the Cost Accountant before submitting the same to the Central Government by the company. 8. Penalties, - (1) If default is made by the Cost Accountant in complying with the provisions of these rules, he shall be punishable with fine, which may extend to five thousand rupees. (2) For contravention of these rules, ‐ (a) the company shall be punishable as provided under sub‐section (2) of section 642 of the Act; and (b) 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‐sections (5) and (7) of section 209 of Com....
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....rtificate of practice under sub-section (1) of section 6 and who is deemed to be in practice under sub-section (2) of section 2 of that Act and includes a firm of cost accountants; (d) "Cost Accounting Standards" means the standards of cost accounting, issued by the Institute; (e) "cost records" means books of account relating to utilisation of materials, labour and other items of cost as applicable to the production, processing, manufacturing or mining activities of the company; 1 (f) “fertilizer activities†means production, processing, manufacturing or mining of any type of fertilizers whether nitrogenous, phosphatic, potassic or complex (organic, inorganic or mixed) and includes all types of 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) or included under Chapter 31 of the Central Excise Tariff Act, 1985 (5 of 1986), and further includes the intermediate products and articles or allied products or activities thereof; (g) “Form-A†means the form specified in these rules for filing compliance re....
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....eceding financial year exceeds five crores of rupees; or wherein 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 wherein 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: Provided that these rules shall not apply to a body corporate governed by any special Act. 4. Maintenance of records, - (1) Every company to which these rules apply, including all units and branches thereof shall, in respect of each of its financial year commencing on or after the date of this notification, keep cost records and the books of account so maintained shall contain, inter-alia, the particulars specified in Proformae A to G mentioned in the Schedule annexed to these rules. (2) The cost records referred to in sub-rule (1) shall 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 for ever....
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....eriod of one hundred and eighty days from the close of the company's financial year to which the compliance report relates. 7. Authentication of Annexure to the Compliance Report, The Annexure to the compliance report shall be approved by the Board of Directors and certified by the Cost Accountant before submitting the same to the Central Government by the company. 8. Penalties, - (1) If default is made by the Cost Accountant in complying with the provisions of these rules, he shall be punishable with fine, which may extend to five thousand rupees. (2) For contravention of these rules, - (a) the company shall be punishable as provided under sub-section (2) of section 642 of the Act; and (b) 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-sections (5) and (7) of section 209 of Companies Act, 1956 (1 of 1956). 9. Savings, · The supersession of the Cost Accounting Records (Fertilizers) Rules, 1993, shall not in any way affect- (a) any right, obligation or liabilities acquired, accrued or incurred thereunder; (b) ....
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.... (Value in Rupees) A B C Produced or Manufactured Product 1. 2. 3. etc. Services Groups 1. 2. 3. etc. Trading Activities (Product Group-wise) 1. 2. 3. etc. D Other Income Total Income as per Financial Accounts PART-II Attachments: 1 Compliance report as per the Cost Accounting Records 7 Attach (Fertilizer Industry) Rules, 2011 - 2 Optional attachments(s) – if any Attach List of attachments Remove attachment Verification: To the best of my knowledge and belief, the information given in this form and its attachments is correct and complete. I have been authorised by the Board of directors' resolution number to sign and submit this form. dated (DD/MM/YYYY) I am authorised to sign and submit this form. To be digitally signed by: Managing Director or director or manager or secretary (in case of an Indian company) or an authorised representative (in case of a foreign company) *Designation *Director identification number of the director or Managing Director; or Income-tax PAN of the manager or of authorised representative; or Membership number, if....
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....ant and applicable. Dated: this signing this report) day of 20 - at (mention name of place of SIGNATURE AND SEAL OF THE COST ACCOUNTANT (S) MEMBERSHIP NUMBER (S) 9 NOTES: (i) Delete words not applicable. (ii) If as a result of the examination of the books of account, the cost accountant desires to point out any material deficiency or give a qualified report, he shall indicate the same against the relevant para. (iii) Briefly give your observations and suggestions, if any, relevant to the maintenance of cost accounting records by the company. (iv) Cost accountant may use separate sheet(s) for (ii) and (iii) above, if required. ANNEXURE TO THE COMPLIANCE REPORT [See rule 2 and rule 5] 1. GENERAL: a) Name of the company: b) Registered office address: c) Financial year to which the Compliance Report relates. Net Sales (Value in Rupees) 2. QUANTITATIVE INFORMATION: Sno. Name of the Product or Service Unit Group Annual Production (Qty.) (Qty.) A Produced or Manufactured Product Groups 1. 2. 3. etc. Services Groups B 1. 2. 3. etc. C Trading Activitie....
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.... of the Intermediate Product/Product For the Period/Year A. Quantitative Information: Sno. Particulars 1. (i) Installed capacity (ii) Capacity enhanced during the year by leasing arrangement etc. Actual Production: 2. (i) Self Manufactured 3. 4. (ii) Third parties on job work, if any (iii) Loan License, if any Capacity Utilization Major Outputs (specify) a) b) c) etc 5. 6. 4. 5. 6.. By Products (Specify) Yield percentage (outputs/inputs Quantity used for Captive Consumption Quantity transferred for: (a) Domestic Sale (b) Export Sale (c) Others (specify) Opening Stock (Finished Goods) 7. Closing Stock (Finished Goods) (6+2-4-5) B. Cost Information: Sno. Particulars 1. Materials Consumed (specify details) a) Indigenous b) Imported 2. 3. c) Self manufactured or produced d) Sub total Utilities(specify) Process Materials/Chemicals (specify) 4. Direct Employees Cost 5. Direct Expenses 6. Consumable Stores and Spares 7. Repairs and Maintenance 13 13 (Unit: MT) Current Year Quantity Rate Units Rs. ....
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.... Margin (36-32) Rate Amount Cost per MT (Rupees) Rs. per Rs. Current Previous Unit Year Year 15 45 Sno Particulars Name of the Company Name and address of the Unit For the Period/Year 1 2 Production (Qty) Purchases Raw Materials Consumed 3 Power 4 Duty on Power Produced 5 Fuel 6 Water 7a. Packing Material - Bags 7b. 8. Sub Total 9 Packing Material -Thread Salaries and Wages- 10 Employee Welfare Overheads 11 Contract Labour 12 Chemicals and Stores 13 Catalyst 14 Repairs and Maintenance 15. Factory Overheads 16 17 18 Administrative Overheads Insurance (excl Loss of Profit Policy Premium) Insurance (Loss of Profit Policy Premium) PROFORMA 'C' Statement showing Element wise Unit cost of Production Quantity Unit Utilities or Offsites or Intermediates or Finished Products Process Water DM Water Steam Captive Others Ammonia Urea NPK Qty Rs/MT Qty Rs/MT Qty Rs/MT Power Plant (specify) Qty Rs/MT Etc Qty Rs/MT Qty Rs/MT - 16- Sno Particulars Quantity ....
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....Plant Rs/MT Qty Rs/MT Qty Rs/MT Qty Rs/MT Others (specify) Ammonia Urea NPK Etc Qty Rs/MT Qty Rs/MT - 19 - PROFORMA 'E' Statement showing Activity wise allocation of Assets and Liabilities of the Company Name of the Company Name and address of the Unit As at Sno. Particulars 1 2 Share Capital (specify Equity, Preference Share etc separately) Reserves and Surplus (specify) Total Net worth 3 Borrowings Long Term Loans Short Term Loans 4 Cash Credit Inter Activity Transfer Total Borrowings Total Capital Employed Gross Fixed Assets@ Less: Accumulated Depreciation@ Net Fixed Assets@ Direct Allocation to Fertilizer Activity of the Unit Utilities/ offsites/ intermediates Final Product Total allocated for each Finished Product-wise (Direct Plus Indirect) Product 1 Product 2 - 20 - 9 Sno. Particulars 5 Capital Work in Progress 6 Investments Relating to Business Not Relating to Business 7 Current Assets Current Liabilities Net Working Capital 8 Misc. Expenditure Total as per Annual Accounts for the c....
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....ation Post Tax Profit Profitability Ratios 28 Gross Profit to Total Income % 29 Pre-tax Profit to Net Worth % 30 Post tax Profit to Net Worth % 31 Pre tax Profit to Capital Employed % - 23 - PROFORMA 'G' Statement of Profit Reconciliation (for the company as a whole) Name of the Company For the Period/Year Sno. Particulars 1 Profit or Loss as per Cost Accounting Records a) For the Product Groups covered under these Rules b) For all other Product Groups 2 Add: Incomes not considered in cost accounts: (a) Specify (b) (c) (d) 3 Less: Expenses not considered in cost accounts: (a) Specify (b) (c) (d) Add: Overvaluation of Closing Stock in Financial Accounts 4 5 Add: Undervaluation of Opening Stock in Financial Accounts 6 Less: Undervaluation of Closing Stock in Financial Accounts 7 Less:: Overvaluation of Opening Stock in Financial Accounts 8 Adjustments for others, if any (specify 9 Profit or Loss as per Financial Accounts Current Year (Rs) Previous Year (Rs) NOTES: 1. Separate cost statement shall be prepared for each utility, activity, ....