TaxTMI 
TaxTMI 
The Cost Accounting Records (Sugar Industry) Rules, 2011
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....ions and Interpretations, - In these rules, unless otherwise requires,‐‐‐ (a) "Act" means 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) "Form‐A" means the form specified in these rules for filing compliance report....
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....xpressions used in these rules but not defined, and defined in the Act and rules made under clause (d) of sub‐section (1) of section 209 of the Act shall have the same meanings as assigned to them in the Act or rules, 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, or manufacturing of sugar 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 f....
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....ance Report, - 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, duly certified by a 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) ....
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....s to give a true and fair view of the cost of production or operation, cost of sales and margin of all the products and activities of the company. 3 Detailed unit‐wise and product or activity‐wise cost statements and schedules thereto in respect of the product groups or activities are or are not kept in the company. 4 In my or our opinion, the said books and records give or do not give the information required by the Companies Act, 1956 in the manner so required. 5 In my or our opinion, the said books and records are or are not in conformity with the generally accepted cost accounting principles and cost accounting standards issued by The Institute of Cost and Works Accountants of India, to the extent these are found to be relevant and applicable. Dated: this ____ day of _________ 20__ at _________________ (mention name of place of signing this report) SIGNATURE AND SEAL OF THE COST ACCOUNTANT (S) MEMBERSHIP NUMBER (S) 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 agai....
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....ese rules for filing compliance report and other documents with the Central Government in the electronic mode; (g) "Form-B" means the form of the compliance report and includes Annexure to the compliance report; - 1 - (h) "Generally Accepted Cost Accounting Principles" means the principles of cost accounting issued by the Institute; (i) "Institute" means the Institute of Cost and Works Accountants of India constituted under the Cost and Works Accountants Act, 1959 (23 of 1959); (j) "product" means any tangible or intangible good, material, substance, article, idea, know-how, method, information, object, service, etc. that is the result of human, mechanical, industrial, chemical, or natural act, process, procedure, function, operation, technique, or treatment and is intended for use, consumption, sale, transport, store, delivery or disposal; (k) "product group" in relation to tangible products means a group of homogenous and alike products, produced from same raw materials and by using similar or same production process, having similar physical or chemical characteristics and common unit of measurement, and having same or similar usage or application; and in relati....
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.... 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 I 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 every financial year on monthly or quarterly or half-yearly or annual basis. (3) The cost records shall be maintained in accordance with the generally accepted cost accounting principles and cost accounting standards issued by the Institute; to the extent these are found to be relevant and applicable and the variations, if any, shall be clearly indicated and explained. (4) The cost records shall be maintained in such manner so as to 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 and these records shall also provide necessary data which is required to be furnished under these ....
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....sons 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 (Sugar) amended Rules, 1997 and Cost Accounting Records (Industrial Alcohol) Rules, 1997, shall not in any way affect- (a) any right, obligation or liabilities acquired, accrued or incurred thereunder; (b) any penalty, forfeiture or punishment incurred in respect of any contravention committed thereunder; and (c) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and; any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if those rules had not been superseded. - 4 - Form for filing Compliance Report and other documents with the Central Government FORM-A [Pursuant to section 209(1)(d), 600(3)(b) of the Companies Act, 1956 and rule 2 of the Cost Accounting Records (Sugar Industry) Rules, 2011] PART I - GENERAL INFORM....
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....ector or director or manager or secretary (in case of an Indian company) or an authorised representative (in case of a foreign company) Digital Signatures *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 applicable or income-tax PAN of the secretary (secretary of a company who is not a member of ICSI may quote his/her income-tax PAN) Director of the company Digital Signatures Director identification number of the director Modify Check Form Pre-scrutiny Submit This e-form has been taken on file maintained by the Central Government through electronic mode and on the basis of statement of correctness given by the filing company FORM-B FORM OF COMPLIANCE REPORT [See rule 2, and rule 5] - 7 - I or We being in permanent employment of the company or in practice, and having been appointed as cost accountant under Rule 5 of the Cost Accounting Records (Sugar Industry) Rules, 2011 of (mention name of the company) having its registered office at (mention registered office address of the company) (hereinafter referred to as....
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....ty.) (Value in Rupees) A Produced or Manufactured Product Groups 1. 2. 3. etc. B Services Groups 1. 2. 3. etc. C Trading Activities (Product Group- wise) 1. 2. 3. etc. D Other Income Total Income as per Financial Accounts 3. RECONCILIATION STATEMENT: Net Margin (Profit or Loss) as per Cost Accounts (In Rupees) A. From Produced or Manufactured Product Groups B. From Services Groups C. From Trading Activities Total as per Cost Accounts Add: Incomes not considered in Cost Accounts (if any) Less: Expenses not considered in Cost Accounts (if any) Add/Less: Difference in Stock Valuation - 9 - Profit or (Loss) as per Financial Accounts NOTES: (i) For produced or manufactured product groups, use the nomenclature as used in the Central Excise Act or Rules, as applicable. (ii) For services groups, use the nomenclature as used in the Finance Act or Central Service Tax Rules, as applicable. SIGNATURE NAME COST ACCOUNTANT (S) MEMBERSHIP NUMBER (S) SEAL DATE "SCHEDULE" [See rule 4] PROFORMA 'A' Statement showing Cost of Utilities like Water or Steam or Power etc. Name of the Company Name a....
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....enance Total (a+b+c+d) 7. Loading and Unloading Charges 8. Taxes and Levies a) Cane Cess b) Purchase Tax c) Octroi d) Other Levies (specify) e) Total (a+b+c+d) 9. Stock adjustment , if any a) Add: Opening Stock of Cane b) Less: Closing Stock of Cane 10. Cost of Material (specify) PROFORMA 'C' Statement showing Cost of Sugar Produced and Sold Name of the Company Name and address of the Factory or Unit Short Name and Code No. allotted by Directorate of Sugar Name of the Raw Material For the Period/Year A. Quantitative information: - 12 - Sno. Particulars Unit Current Year Previous Year 1 Crushing Capacity Per day 2 Quantity of Material Crushed or Processed 3 Duration of Crushing or Processing Season From. To. No. of days .. 4 Average Sugar Content (% in cane) 5 Average Recovery of Sugar (% in cane) 6 Quantity of Sugar Produced 7 Quantity of Sugar Captively Consumed 8 Quantity of Sugar Sold a) At Levy or Controlled Price b) At Rate for Free Sale B. Cost Information: Sno. Particulars Quantity Unit Rate (Rupees) Amount (Rupees) Cost per MT (Rupees) Current Year Previous Year 1. M....
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.... wise) 2. Transport and Handling Charges 3. Excise Duty, if any, on Molasses (a) Transfer from Own Sugar Factory (b) Purchased Molasses 4. Other Expenses including Taxes, Fees (specify) 5. Less: Losses a) Transit Losses b) Storage Losses, if any c) Other Losses (specify) d) Total (a to c) 6. (a) Add: Opening Stock (b) Less: Closing Stock 7. Consumption transferred to Proforma F PROFORMA 'E' Statement showing Cost of various processing operations for Alcohol and their apportionment Name of the Company Name and address of the Factory or Unit Short Name and Code No. allotted by Directorate of Sugar Name of the Product For the Period/Year A. Quantitative Information Sno. Particulars Unit Current Year Previous Year 1. Installed Capacity 2 Batch Size 3. Number of Batches Produced 4. Quantity of Molasses Processed 5. (a) Alcohol Produced (specify alcohol content %) K.Ltrs (b) Alcohol Produced in terms of 100% Alcohol K.Ltrs 6. Quantity used for Captive Consumption 7. Quantity Transferred to Sales 8. Total Sugar % in Molasses 9. Total Fermentable Sugar % in Molasses - 15 - 10 Actual Recovery of Alcohol 1....
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....8. Depreciation or Amortization 9 Other Production Overheads 10 Total (1 to 8) 11. Add: Opening Stock-in-Process Less: Closing Stock-in-Process 12. Less Credits (from wastages and by products) or Recoveries, if any (specify item wise) - 17 - Sno. Particulars Quantity Unit Rate Rs./Unit Amount Rs. Cost per MT (Rupees) Current Year Previous Year 13 Cost of Production 14. Add: Opening Stock - Finished Goods Less: Closing Stock - Finished Goods 15 Packing Cost a) Materials b) Others (specify) 16. Cost of Production (a) Packed Quantity (b) Unpacked Quantity 17 Add: Opening Stock - Packed Less: Closing Stock - Packed 18. Finished Goods Purchased, if any 19. Total cost of Packed Goods 20. Administrative Overheads 21. Selling and Distribution Overheads (a) Employee Cost (b) Freight and Transport Charges (c) Commission to Selling Agents (d) Royalty on Sales, if any (e) Others(specify) (f) Total ((a) to (e) 22 Interest and Financing Charges 23 Cost of Sales 24 Sales Realisation 25 Less Excise Duty and other Statutory Levies 26 Net Sales Realization (25-26) 27 Margin (27-24) 28 Sales Realization from customers (a) Sales ....
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....ancial Accounts Total as per Annual Accounts of sugar Units Accounts of Total as per Annual Alcohol Units Other Activities Utilities (separately for each) Factory Overheads Administra- tion Overheads Marketing or Selling and Distribu- tion Other cost centres (specify) Non Cost Expenses 10. Insurance 11. Rates and Taxes 12. Payment To Auditors 13. Travelling and Conveyance 14. Communication Expenses 15. Printing and Stationery 16. Bank Charges 17. Sales Promotion Expenses 18. Packing Materials 19. 20. Handling Expenses Miscellaneous Expenses 21. Transportation Charges 22. Quality Control 23. Royalty or Technical Know-how 24. Technical Assistant Fees 25. Other Statutory Levies 26. Cess 27. Lease Rent 28. Research and Development 30. Packing Expenses 31. Borrowing Charges 32. Loss on Assets Sold, Lost or Written Off Exchange Rate Fluctuations 33. 34. Provision For Doubtful Debts, Advances, Claims and Obsolescence Total as per Annual Accounts of sugar Units Accounts of Total as per Annual Alcohol Units 21 Sno. Particulars Total Expenses as per Audited Financial Accounts Total as per Annual Accounts....