TaxTMI 
TaxTMI 
The Companies (Cost Records and Audit) Amendment Rules,2014.
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.... "3. Application of Cost Records.- For the purposes of sub-section (1) of section 148 of the Act, the class of companies, including foreign companies defined in clause (42) of section 2 of the Act, engaged in the production of the goods or providing services, specified in the Table below, having an overall turnover from all its products and services of rupees thirty five crore or more during the immediately preceding financial year, shall include cost records for such products or services in their books of account, namely:- Table (A) Regulated Sectors Sl. No. Industry/ Sector/ Product/ Service CETA Heading (wherever applicable) 1. Telecommunication services made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature (other than broadcasting services) and regulated by the Telecom Regulatory Authority of India under the Telecom Regulatory Authority of India Act, 1997 (24 of 1997); Not applicable 2. Generation, transmission, distribution and supply of electricity regulated by the relevant regulatory body or authority under the Electricity Act, 2003 ....
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....Economic Regulatory Authority under the Airports Economic Regulatory Authority of India Act, 2008 (27 of 2008); Not applicable. 9. Steel; 7201 to 7229; 7301 to 7326 10. Roads and other infrastructure projects corresponding to para No. (1) (a) as specified in Schedule VI of the Companies Act, 2013; Not applicable 11. Rubber and allied products being regulated by the Rubber Board constituted under the Rubber Act, 1947 (XXIV of 1947). 4001 to 4017 12. Coffee and tea; 0901 to 0902 13. Railway or tramway locomotives, rolling stock, railway or tramway fixtures and fittings, mechanical (including electro mechanical) traffic signalling equipment's of all kind; 8601 to 8608 14. Cement; 2523; 6811 to 6812 15. Ores and Mineral products; 2502 to 2522; 2524 to 2526; 2528 to 2530; 2601 to 2617 16. Mineral fuels (other than Petroleum), mineral oils etc.; 2701 to 2708 17. Base metals; 7401 to 7403; 7405 to 7413; 7419; 7501 to 7508; 7601 to 7614; 7801 to 7802; 7804; 7806; 7901 to 7905; 7907; 8001; 80....
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....ompany which is classified as a micro enterprise or a small enterprise including as per the turnover criteria under sub-section (9) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006). (iii) for rule 4, the following rule shall be substituted, namely:- "4. Applicability for cast audit.- (1) Every company specified in item (A) of rule 3 shall get its cost records audited in accordance with these rules if the overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees fifty crore or more and the aggregate turnover of the individual product or products or service or services for which cost records are required to be maintained under rule 3 is rupees twenty five crore or more. (2) Every company specified in item (B) of rule 3 shall get its cost records audited in accordance with these rules if the overall annual turnover of the company from all its products and services during the immediately preceding financial year is rupees one hundred crore or more and the aggregate turnover of the individual product or products or service or services for which cost re....
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....axing authorities) that can be quantified with reasonable accuracy at the time of acquisition. (c) Finance costs incurred in connection with the acquisition of materials shall not form part of material cost. (d) Self-manufactured materials or captive consumption shall be valued including direct material cost, direct employee cost, direct expenses, factory overheads, share of administrative overheads relating to production but excluding share of other administrative overheads, finance cost and marketing overheads. (e) Spares which are specific to an item of equipment shall not be taken to inventory, but shall be capitalized with the cost of the specific equipment. Cost of capital spares or insurance spares, whether procured with the equipment or subsequently, shall be amortised over a period, not exceeding the useful life of the equipment. (f) Normal loss or spoilage of material prior to reaching the factory or at places where the services are provided shall be absorbed in the cost of balance materials net of amounts recoverable from suppliers, insurers, carriers or recoveries from disposal. (g) Losses due to shrinkage or evaporation a....
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....ty consumed or similar identifiable measure and valued as per above principles. (r) Where the material costs are not directly traceable to the cost object, the same shall be assigned on a suitable basis like technical estimates. (s) Where a material is processed or part manufactured by a third party according to specifications provided by the buyer, the processing or manufacturing charges payable to the third party shall be treated as part of the material cost. (t) Wherever part of the manufacturing operations or activity is subcontracted, the subcontract charges related to materials shall be treated as direct expenses and assigned directly to the cost object. (u) The cost of indirect materials shall be assigned to the various Cost objects based on a suitable basis such as actual usage or technical norms or a similar identifiable measure. (v) The cost of materials like catalysts, dies, tools, moulds, patterns etc, which are relatable to production over a period of time shall be amortized over the production units benefited by such cost. (w) The cost of indirect material with life exceeding one year shall be included in cost over the useful ....
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....t of the employee cost. (k) Penalties, damages paid to statutory authorities or other third parties shall not form part of the employee cost. (1) The cost of free housing, free conveyance and any other similar benefits provided to an employee shall be determined at the total cost of all resources consumed in providing such benefits. (m) Any recovery from the employee towards any benefit provided, namely, housing shall be reduced from the employee cost. (n) Any change in the cost accounting principles applied for the determination of the employee cost shall be made only if it is required by law or a change would result in a more appropriate preparation or presentation of cost statements of an enterprise. (o) Where the employee services are traceable to a cost object, such employees' cost shall be assigned to the cost object on the basis such as time consumed or number of employees engaged or other related basis or similar identifiable measure. (p) While determining whether a particular employee cost is chargeable to a separate cost object, the principle of materiality shall be adhered to. (q) Where the employee costs are not directly trac....
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....oyee cost, direct expenses, factory overheads, distribution cost, share of administrative overheads and marketing overheads. The sale value of such utilities shall also include the margin. (h) Finance costs incurred in connection with the utilities shall not form part of cost of utilities. (i) The cost of utilities shall include the cost of distribution of such utilities. The cost of distribution shall consist of the cost of delivery of utilities up to the point of consumption. (j) Cost of utilities shall not include imputed costs. (k) Where cost of utilities is accounted at standard cost, the price variances related to utilities shall be treated as part of cost of utilities and the portion of usage variances due to normal reasons shall be treated as part of cost of utilities. Usage variances due to abnormal reasons shall be treated as part of abnormal cost. (1) Any subsidy or grant or incentive or any such payment received or receivable with respect to any cost of utilities shall be reduced for ascertainment of the cost to which such amounts are related. (m) The cost of production and distribution of utilities shall be determined based on the no....
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....y, it can be treated as part of overheads. (f) Finance costs incurred in connection with the self-generated or procured resources shall not form part of direct expenses. Direct expenses shall not include imputed costs. (g) Where direct expenses are accounted at standard cost, variances due to normal reasons shall be treated as part of the direct expenses. Variances due to abnormal reasons shall not form part of the direct expenses . (h) Any subsidy or grant or incentive or any such payment received or receivable with respect to any direct expenses shall be reduced for ascertainment of the cost of the cost object to which such amounts are related. (i) Any abnormal portion of the direct expenses where it is material and quantifiable shall not form part of the direct expenses. (j) Penalties, damages paid to statutory authorities or other third parties shall not form part of the direct expenses . 11 (k) Credits or recoveries relating to the direct expenses, material and quantifiable, shall be deducted to arrive at the net direct expenses. (1) Any change in the cost accounting principles applied for the measurement of ....
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....separately. (i) Cost of spares replaced which do not enhance the future economic benefits from the existing asset beyond its previously assessed standard of performance shall be included under repairs and maintenance cost. (j) High value spare, when replaced by a new spare and is reconditioned, which is expected to result in future economic benefits, the same shall be taken into stock. Such a spare shall be valued at an amount that measures its service potential in relation to a new spare which amount shall not exceed the cost of reconditioning the spare. The difference between the total of the cost of the new spare and the reconditioning cost and the value of the reconditioned spare shall be treated as repairs and maintenance cost. 12 (k) The cost of major overhaul shall be amortised on a rational basis. (1) Finance costs incurred in connection with the repairs and maintenance activities shall not form part of Repairs and maintenance costs. (m) Repairs and maintenance costs shall not include imputed costs. (n) Price variances related to repairs and maintenance, where standard costs are in use, shall be treated as part of repairs and ....
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....ing of assets under each good or service, the cost of acquisition of each item of asset including installation charges, date of acquisition and rate of depreciation. (b) Depreciation and amortisation shall be measured based on the depreciable amount and the useful life. The residual value of an intangible asset shall be assumed to be zero unless: (i) there is a commitment by a third party to purchase the asset at the end of its useful life; or (ii) there is an active market for the asset and: 13 a. residual value can be determined by reference to that market; and b.it is probable that such a market will exist at the end of the asset's useful life. c. The residual value of a fixed asset shall be considered as zero if the entity is unable to estimate the same with reasonable accuracy. (c) The minimum amount of depreciation to be provided shall not be less than the amount calculated as per principles and methods as prescribed by any law or regulations applicable to the entity and followed by it. (d) In case of regulated industry the amount of depreciation shall be the same as prescribed by the concerned regulator. (e) While estimating....
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....eciation used shall reflect the pattern in which the asset's future economic benefits are expected to be consumed by the entity. (p) An entity can use any of the methods of depreciation to assign depreciable amount of an asset on a systematic basis over its useful life, namely, Straight-line method; Diminishing balance method; and Units of production method, etc. (q) The method of amortisation of intangible asset shall reflect the pattern in which the economic benefits accrue to entity. (r) The methods and rates of depreciation applied shall be reviewed at least annually and, if there has been a change in the expected pattern of consumption or loss of future economic benefits, the method applied shall be changed to reflect the changed pattern. (s) Spares purchased specifically for a particular asset, or class of assets, and which would become redundant if that asset or class of asset was retired or use of that asset was discontinued, shall form part of that asset. The depreciable amount of such spares shall be allocated over the useful life of the asset. (t) Cost of small assets shall be written off in the period in which they were purchase....
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....s, penalties, damages and similar levies paid to statutory authorities or other third parties shall not form part of the overheads. (j) Credits or recoveries relating to the overheads, material and quantifiable, shall be deducted from the total overhead to arrive at the net overheads. Where the recovery exceeds the total overheads, the balance recovery shall be treated as other income. (k) Any change in the cost accounting principles applied for the measurement of the overheads shall be made only if, it is required by law or a change would result in a more appropriate preparation or presentation of cost statements of an entity. (I) While assigning overheads, traceability to a cost object in an economically feasible manner shall be the guiding principle. The cost which can be traced directly to a cost object shall be directly assigned. (m) Overheads shall be classified according to functions, viz., works, administration, selling and distribution, head office, corporate etc. (n) Assignment of overheads to the cost objects shall be based on either of the following two principles; (1) Cause and Effect - Cause is the process or operation or acti....
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..... (i) Any change in the cost accounting principles applied for the measurement of the administrative overheads shall be made only if it is required by law or a change would result in a more appropriate preparation or presentation of cost statements of an organisation. (j) While assigning administrative overheads, traceability to a cost object in an economically feasible manner shall be the guiding principle. (k) Assignment of administrative overheads to the cost objects shall be based on either of the following two principles; namely:- (i) Cause and Effect - Cause is the process or operation or activity and effect is the incurrence of cost. (ii) Benefits received - overheads are to be apportioned to the various cost objects in proportion to the benefits received by them. 9. Transportation Cost.- (a) Proper records shall be maintained for recording the actual cost of transportation showing each element of cost such as freight, cartage, transit insurance and others after adjustment for recovery of transportation cost. Abnormal costs relating to transportation, if any, are to be identified and recorded for exclusion of computation of averag....
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.... air are to be maintained, which shall be included in total cost of transportation. (m) Inward transportation costs shall form the part of the cost of procurement of materials which shall be identified for proper allocation or apportionment to the materials or products. (n) Outward transportation cost shall form the part of the cost of sale and shall be allocated or apportioned to the materials and goods on a suitable basis. (o) The following basis shall be used, in order of priority, for apportionment of outward transportation cost depending upon the nature of products, unit of measurement followed and type of transport used, namely:- (i) Weight; (ii) Volume of goods; (iii) Tonne-Km; (iv) Unit or Equivalent unit; (v) Value of goods; (vi) Percentage of usage of space. (p) Once a basis of apportionment is adopted, the same shall be followed consistently. (q) For determining the transportation cost per unit, distance shall be factored in to arrive at weighted average cost. (r) Abnormal and non recurring cost shall not be a part of transportation cost. 10. Royalty and Technical Know-how.- (a) Adequate records shall be maintained....
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.... know how shall be treated as cost of production; if related to trademarks or brands shall be treated as cost of sales. 11. Research and Development Expenses.- (a) Research and development costs shall include all the costs that are directly traceable to research or development activities or that can be assigned to research and development activities strictly on the basis of (a) cause and effect or (b) benefits received. Such costs shall include the following elements, namely:- (i) the cost of materials and services consumed in research and development activities. (ii) cost of bought out materials and hired services as per invoice or agreed price including duties and taxes directly attributable thereto net of trade discounts, rebates, taxes and duties refundable or to be credited. (ii) the salaries, wages and other related costs of personnel engaged in research and development activities; (iv) the depreciation of equipment and facilities, and other tangible assets, and amortisation of intangible assets to the extent that they are used for research and development activities; 19 (v) overhead costs, other than general administrative cost....
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....roduction, as the case may be, if the improved process or product is distinctly different from the existing process or product and the product is marketed as a new product. The amount allocated to a particular period shall be included in the cost of production of that period. If the expenditure is only to improve the quality of the existing product or minor modifications in attributes, the principle shall not be applied. (j) Development costs attributable to a saleable service namely, providing technical know-how to outside parties shall be accumulated separately and treated as cost of providing the service. 20 12. Quality control expenses.- (a) Adequate records shall be maintained to indicate the expenses incurred in respect of quality control department or cost centre or service centre for goods or services under reference. Where these services are also utilized for other goods or services of the company, the basis of apportionment to goods or services under reference and to other goods or services shall be on equitable and reasonable basis and applied consistently. (b) Quality control cost incurred in-house shall be the aggregate of the cos....
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....ment to goods or services under 21 reference and to other goods or services shall be on equitable and reasonable basis and applied consistently. (b) Pollution control costs shall be the aggregate of direct and indirect cost relating to pollution control activity. Direct cost shall include the cost of materials, consumable stores, spares, manpower, equipment usage, utilities, resources for testing and certification and other identifiable resources consumed in activities such as waste processing, disposal, remediation and others. Indirect cost shall include the cost of resources common to various pollution control activities such as pollution control registration and such like expenses. (c) Costs of pollution control which are internal to the entity shall be accounted for when incurred. They shall be measured at the historical cost of resources consumed. (d) Future remediation or disposal costs which are expected to be incurred with reasonable certainty as part of onerous contract or constructive obligation, legally enforceable shall be estimated and accounted based on the quantum of pollution generated in each period and the associated cost ....
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....here standard costs are in use, shall be treated as part of pollution control cost. The portion of usage variances attributable to normal reasons shall be treated as part of pollution control cost. Usage variances attributable to abnormal reasons shall be excluded from pollution control cost. (p) Subsidy or grant or incentive or amount of similar nature received or receivable with respect to Pollution control activity, if any, shall be reduced for ascertainment of the cost of the cost object to which such amounts are related. (q) Any Pollution control cost resulting from abnormal circumstances, if material and quantifiable, shall not form part of the pollution control cost. (r) Fines, penalties, damages and similar levies paid to statutory authorities or other third parties shall not form part of the pollution control cost. (s) Credits or recoveries relating to the pollution control activity, material and quantifiable, shall be deducted to arrive at the net pollution control cost. (t) Research and development cost to develop new process, new products or use of new materials to avoid or mitigate pollution shall be treated as research and dev....
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....lated overheads. (f) Cost of services rendered by contractors within the facilities of the entity shall include charges payable to the contractor and cost of materials, consumable stores, spares, manpower, equipment usage, utilities, and other resources provided to the contractors for such services. (g) Cost of services rendered by contractors at their premises shall be determined at invoice or agreed price including duties and taxes, and other expenditure directly attributable thereto net of discounts (other than cash discount), taxes and duties refundable or to be credited. This cost shall also include the cost of resources provided to the contractors. (h) Cost of services for the purpose of inter unit transfers shall also include distribution costs incurred for such transfers. (i) Cost of services for the purpose of inter-company transfers shall also include distribution cost incurred for such transfers and administrative overheads. (j) Cost of services rendered to outside parties shall also include distribution cost incurred for such transfers, administrative overheads and marketing overheads. (k) Finance costs incurred in connection wi....
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....l be maintained separately for domestic and export packing showing the quantity and cost of various packing materials and other expenses incurred on primary or secondary packing indicating the basis of valuation. (b) The packing material receipts shall be valued at purchase price including duties and taxes, freight inwards, insurance, and other expenditure directly attributable to procurement (net of trade discounts, rebates, taxes and duties refundable or to be credited) that can be quantified at the time of acquisition. (c) Finance costs directly incurred in connection with the acquisition of packing material shall not form part of packing material cost. (d) Self-manufactured packing materials shall be valued including direct material cost, direct employee cost, direct expenses, job charges, factory overheads including share of administrative overheads comprising factory management and administration and share of research and development cost incurred for development and improvement of existing process or product. (e) Normal loss or spoilage of packing material prior to receipt in the factory shall be absorbed in the cost of balance mater....
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.... be assigned to the cost object taking into account the number of times or the period over which it is expected to be reused. (s) Cost of primary packing materials shall form part of the cost of production. (t) Cost of secondary packing materials shall form part of distribution overheads. 16. Interest and financing charges. (a) Interest and financing charges are costs incurred by an enterprise in connection with the borrowing of fund or other costs which in effect represent payment for the use of non-equity fund. (b) Interest and financing charges incurred shall be identified for- (i) acquisition or construction or production of qualifying assets including fixed assets; and (ii) other finance costs for production of goods or operations or services rendered which cannot be classified as qualifying assets. (c) Interest and financing charges directly attributable to the acquisition or construction or production of a qualifying asset shall be included in the cost of the asset. (d) Interest and financing charges shall not include imputed costs. (e) Subsidy or grant or incentive or amount of similar nature received or receivable with respect to ....
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....nt. (d) Normal capacity shall be determined vis-a-vis installed capacity after carrying out adjustments for (i) holidays, normal shut down days and normal idle time; (ii) normal time lost in batch change over; (iii) time lost due to preventive maintenance and normal break downs of equipments; (iv) loss in efficiency due to ageing of the equipment; or (v) number of shifts; (e) Capacity utilization is actual production measured as a percentage of installed capacity. 19. Work-in-progress and finished stock. The method followed for determining the cost of work-in- progress and finished stock of the goods and for services under delivery or in-process shall be 27 appropriate and shall be indicated in the cost records so as to reveal the cost element that have been taken into account in such computation. All conversion costs incurred in bringing the inventories to their present location and condition shall be taken into account while computing the cost of work-in-progress and finished stock. The method adopted for determining the cost of work- in progress and finished goods shall be followed consistently. 20. Captive consumption.- If the goo....
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....ure accuracy and to adjust the profit of the goods or services under reference with the overall profit of the company. The variations, if any, shall be clearly indicated and explained. 24. Related party transactions.- (a) Related Party means related party as defined under clause (76) of section 2 of the Companies Act, 2013 (18 of 2013). 28 (b) "Normal" price means price charged for comparable and similar products in the ordinary course of trade and commerce where the price charged in the sole consideration of sale and such sale is not made to a related party. Normal price can be construed to be a price at which two unrelated and non-desperate parties would agree to a transaction and where such transaction is not clouded due to the proximity of the parties to the transaction and free from influence though the parties may have shared interest. (c) The basis adopted to determine Normal price shall be classified as under: Comparable uncontrolled price method; (Resale price method; (Cost plus method; () Profit split method; M Transactional net margin method; or (w) Any other method, to be specified. (d) In respect of related party....
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....c sales at market price, export sales under advance license, export sales under other obligations, export sales at market price, and sales to related party or inter unit transfer. In case of services details of domestic delivery or sales at control price, domestic delivery or sales at market price, export delivery or sales under advance license, export delivery or sales under other obligations, export delivery or sales at market price, and delivery or sales to related party or inter unit transfer. Such details shall be maintained separately for each plant or unit wise or service center wise for total as well as per unit sales realization. 28. Cost statements.- (a) Cost statements (monthly, quarterly and annually) showing quantitative information in respect of each good or service under reference shall be prepared showing details of available capacity, actual production, production as per excise records, capacity utilization (in- house), stock purchased for trading, stock and other adjustments, quantity available for sale, wastage and actual sale during current financial year and previous year. (b) Such statements shall also include details in res....
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....ined in respect of all items held in the stock such as raw materials, process materials, packing materials, consumables stores, machinery spares, chemicals, fuels, finished goods and fixed assets etc. Reasons for shortages or surplus arising out of such verifications and the method followed for adjusting the same in the cost of the goods or services shall be indicated in the records. Document 2 Form CRA-3 [Pursuant to rule 6(4) of the Companies (Cost Records and Audit) Rules, 2014] FORM OF THE COST AUDIT REPORT I/We,.. Act, 2013(18 of 2013) of office at..... having been appointed as Cost Auditor(s) under section 148(3) of the Companies ..........(mention name of the company) having its registered (mention registered office address of the company) (hereinafter referred to as the company), have audited the Cost Records maintained under section 148 of the said Act, in compliance with the cost auditing standards, in respect of the......... [mention name (s) of Product(s)/service(s)] for the period/year.........................mention the financial year) maintained by the company and report, in addition to my/our observations and sugg....
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....them. 1. General Information Annexure to the Cost Audit Report PART-A 1 Corporate identity number or foreign company registration number 2 Name of company 3 Address of registered office or of principal place of business in India of company 4 Address of corporate office of company 5 Email address of company 6 Date of beginning of reporting Financial Year dd/mm/yyyy 32 32 7 Date of end of reporting Financial Year 8 Date of beginning of previous financial year 9 Date of end of previous financial year 10 Level of rounding used in cost statements 11 Reporting currency of entity 12 Number of cost auditors for reporting period 13 33 14. 15 Date of board of directors meeting in which annexure to cost audit report was approved Whether cost auditors report has been qualified or has any reservations or contains adverse remarks Consolidated qualifications, reservations or adverse remarks of all cost auditors 16 Consolidated observations or suggestions of all cost auditors 17 Whether company has related party transactions for sale or purchase of goods or services dd/mm/yyyy....
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....ETA heading (wherever applicable) Whether Covered Net Operational Revenue (net of taxes, duties etc.) under Cost Audit Current Year Previous Year Yes/No Rs. Rs. 1. 2. 3. 4. 34 Total net revenue from operations Other Incomes of company Total revenue as per financial accounts Extra ordinary income, if any Total revenue including extra ordinary income, if any Turnover as per Excise/Service Tax Records Note: Explain the difference, if any, between Turnover as per Annual Accounts and Turnover as per Excise/Service Tax Records. PART-B For Manufacturing Sector 1. QUANTITATIVE INFORMATION (for each product with CETA heading separately) Name of Product CETA heading Particulars 1. Available Capacity (a) Installed Capacity (b) Capacity enhanced during the year, if any (c) Capacity available through leasing arrangements, if any (d) Capacity available through loan license/third parties (e) Total available Capacity 2. Actual Production (a) Self manufactured (b) Produced under leasing arrangements (c) Produced on loan license / by third parties on job wor....
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.... Cost of Sales before Interest (24 to 27) 22 Interest and Financing Charges 30 Cost of Sales (28 +29) 31 Net Sales Realization (Net of Taxes and Duties) 32 Margin [Profit/(Loss) as per Cost Accounts] (31-30) 37 Notes: 1. Separate cost statement shall be prepared for each CETA heading representing the product. 2. In case the same product has different unit of measure, separate cost statement shall be provided for different unit of measures. The items of cost shown in the Proforma are indicative and the same shall be reflected keeping in mind the 3. materiality of the item of cost in the product. The Proforma may be suitably modified to meet the requirement of the industry/product. 4. In case the company follows a pre-determined or standard costing system, the above cost statement shall reflect figures at actuals after adjustment of variances, if any. 2A. Details of Materials Consumed Name of Product CETA heading Current Year Previous Year Description of Category UOM Material Quantity Rate per Unit (Rs.) Amount Quantity Rate per Unit (Rs.) Amount 1. 2. 3. 4. 5. 6. ....
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.... Cost of Outsourced/Contractual Services 17 Total Services available 18 Less: Self/Captive Consumption 19 Other Adjustments (if any) 220 21 Cost of Services Sold (17-18 +19) Administrative Overheads 22 Selling and Distribution Overheads 23 23 Cost of Sales before Interest (20+21+22) Interest and Financing Charges 24 25 25 Cost of Sales (23+24) 41 26 Net Sales Realization (Net of Taxes and Duties) 27 Margin [Profit/(Loss) as per Cost Accounts] (26 - 25) NOTES: 1. Separate cost statement shall be prepared for each service 2. 3. 4. The items of cost shown in the Proforma are indicative and the same shall be reflected keeping in mind the materiality of the item of cost in the service. The Proforma may be suitably modified to meet the requirement of the industry/service. In case the company follows a pre-determined or standard costing system, the above cost statement shall reflect figures at actuals after adjustment of variances, if any. 2A. Details of Materials Consumed Name of Service Service Code (if applicable) Current Year Previous Year Description of Mater....
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....les 4 5 6 Add/Less: Adjustment in Finished Stocks Less: Cost of bought out inputs (a) Cost of Materials Consumed (b) Process Materials/Chemicals (c) Consumption of Stores and Spares (d) Utilities (e.g. power and fuel) (e) Others, if any Total Cost of bought out inputs 7 Value Added 8 Add: Income from any other sources 9 Add: Extra Ordinary Income 10 Earnings available for distribution 1 Distribution of Earnings to: Employees as salaries and wages, retirement benefits, etc. Shareholders as dividend 2 3 Company as retained funds 4 Government as taxes (specify) 5 Extra Ordinary Expenses 6 Others, if any (specify) 7 Total distribution of earnings 4. FINANCIAL POSITION AND RATIO ANALYSIS (for the company as a whole) Sno. Particulars A. Financial Position 1 Share Capital 2 Reserves and Surplus 3 Long Term Borrowings 4 (a) Gross Assets (b) Net Assets 5 (a) Current Assets (b) Less: Current Liabilities Units Current Year Previous Year 46 B. (c) Net Current Assets 6 Capital Employed 7 Net Worth Financial Performanc....