TaxTMI 
TaxTMI 
TaxTMI 
The Companies (Cost Records and Audit) Amendment Rules,2014.
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.... 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 (36 of 2003), other than for captive generation (referred to in the Elect....
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....p; 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; 8003; 8007; 8101 to 8113. 18. Inorganic chemicals, organic or inorganic compounds of precious metals, rare-earth metals of radioactive elements or isotopes, and Organic Chemicals; 2801 to 2853; 2901 to 2942; 3801 to....
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....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 records are required to be maintained under rule 3 is rupees thirty five crore or more. (3) The requirement for cost audit under these rules shall not apply to a company which is covered in rule 3, and - (i) whose revenue from exports, in foreign exchange, exceeds seventy five per cent of its total revenue; or (ii) which is operating from a special economic zone." (iv) in rul....
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....e 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 and gain due to elongation or absorption of moisture etc., before the material is received shall be absorbed in material cost to the extent they are normal, with corresponding adjustment in the quantity. (h) The forex component of imported material cost shall be converted at the rate on the date of the transaction. Any subsequent change in the exchange rate till payment or otherwise shall not form part of the material cost. (i) Any demurrage or detention charges, or penalty levied by transport or other authorities s....
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....d 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 life of the material. 2. Employee Cost.- (a) Proper records shall be maintained in respect of employee costs in such a manner as to enable the company to book these expenses cost centre wise or department wise with reference to goods or services under reference and to furnish necessary particulars. Where the employees work in such a manner that it is not possible to identify them with any specific cost centre or service centre or department, the employees cost shall be apportioned to the cost centre or service centres or departments on equitable and reasonable basis and applied consistently. (b) E....
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....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 traceable to the cost object, the same shall be assigned on suitable basis like estimates of time based on time study. (r) The amortised separation costs related to voluntary retirement, retrenchment, and termination or other related matters for the period shall be treated as indirect cost and assigned to the cost objects in an appropriate manner provided that unamortised amount related to discontinue operations, shall not be treated as employee cost. (s) Recruitment costs, training cost and other such costs shall be treated as overheads and dealt with accordingly. (t) Overtime premium shall be assigned directly to the cost object or treated as overheads depending on the economic feasibil....
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....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 normal capacity or actual capacity utilization whichever is higher and unabsorbed cost, if any, shall be treated as 10 abnormal cost. Cost of a Stand-by Utility shall include the committed costs of maintaining such a utility. (n) Any abnormal cost where it is material and quantifiable shall not form part of the cost of utilities. (o) Penalties, damages paid to statutory authorities or other third parties shall not form part of the cost of utilities. (p) Credits or recoveries relating to the utilities including cost of utilities provided to outside parties, material and quantifiable, shall be deducted from the total cost of utility to arrive at the net cost of utility. (q) Any change in the cost accounting principles applied for the measurement of the cost of util....
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.... 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 the direct expenses 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. (m) Direct expenses that are directly traceable to the cost object shall be assigned to that cost object. 5. Repairs and Maintenance.- (a) Proper records showing the expenditure incurred by the workshop, tool room and on repairs and maintenance in the various cost centres or departments shall be maintained under different heads. (b) Repairs and maintenance cost shall be the aggregate of direct and indirect cost relating to repairs and maintenance activity. Direct cost shall include the cost of materials, consumable stores, spares, manpower, equipment usage, utilities and other identifiable resources consumed in such activity. Indirect cost shall include the cost of resources common to various repairs a....
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....tenance 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 maintenance cost. The portion of usage variances attributable to normal reasons shall be treated as part of repairs and maintenance cost. Usage variances attributable to abnormal reasons shall be excluded from repairs and maintenance cost. (o) Subsidy or Grant or Incentive or amount of similar nature received or receivable with respect to repairs and maintenance activity, if any, shall be reduced for ascertainment of the cost of the cost object to which such amounts are related. (p) Any repairs and maintenance cost resulting from some abnormal circumstances, namely, major fire, explosion, flood and similar events, if material and quantifiable, shall not form part of the repairs and maintenance cost. (q) Fines, penalties, damages and similar levies paid to statutory authorities or other third parties shall not form part of the repairs and maintenance cost. (r) Credits or recoveries relating to the repairs and maintenance activity, material and quantifiable, sha....
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....regulated industry the amount of depreciation shall be the same as prescribed by the concerned regulator. (e) While estimating the useful life of a depreciable asset, consideration shall be given to the following factors: (i) Expected physical wear and tear; (ii) Obsolescence; and (iii) Legal or other limits on the use of the asset. (f) The useful life of an intangible asset that arises from contractual or other legal rights shall not exceed the period of the contractual or other legal rights, but may be shorter depending on the period over which the entity expects to use the asset. (g) If the contractual or other legal rights are conveyed for a limited term that can be renewed, the useful life of the intangible asset shall include the renewal period(s) only if there is evidence to support renewal by the entity without significant cost. The useful life of a re-acquired right recognised as an intangible asset in a business combination is the remaining contractual period of the contract in which the right was granted and shall not include renewal periods. (h) The useful life of an intangible asset, in any situation, shall not exceed 10 years from the date it is availa....
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....n the period in which they were purchased as per the accounting policy of the entity. (u) Depreciation of an asset shall not be considered in case cumulative depreciation exceeds the original cost of the asset, net of residual value. (v) Where depreciation for an addition of an asset is measured on the basis of the number of days for which the asset was used for the preparation and presentation of financial statements, depreciation of the asset for assigning to cost of object shall be measured in relation to the period, the asset actually utilized. (w) Depreciation shall be traced to the cost object to the extent economically feasible. (x) Where the depreciation is not directly traceable to cost object, it shall be assigned 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 and (ii) Benefits received - overheads are to be apportioned to the various cost objects in proportion to the benefits received by them. 7. Overheads. (a) Proper records shall be maintained for various items of indirect expenses comprising overheads pertaining to goods or services unde....
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....efits received - overheads are to be apportioned to the various cost objects in proportion to the benefits received by them. (o) The variable production overheads shall be absorbed to products or services based on actual capacity utilisation. (p) The fixed production overheads shall be absorbed based on the normal capacity. (q) Assignment of Administration Overheads shall be in accordance with para No. 8. (r) Marketing overheads that can be identified to a product or service shall be assigned to that product or service. (s) Marketing overheads that cannot be identified to a product or service shall be assigned to the products or services on the most appropriate basis. 8. Administrative Overheads.- (a) Administrative overheads shall be the aggregate of cost of resources consumed in activities relating to general management and administration of an organisation. 16 (b) In case of leased assets, if the lease is an operating lease, the entire rentals shall be included in the administrative overheads. If the lease is a financial lease, the finance cost portion shall be segregated and treated as part of finance costs. (c) The cost of software (developed in house, purchase....
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....l operating cost of vehicles showing details of various elements of cost, such as salaries and wages of driver, cleaners and others, cost of fuel, lubricant grease, amortized cost of tyres and battery, repairs and maintenance, depreciation of the vehicles, distance covered and trips made, goods hauled and transported to the depot. (c) In case of hired transport charges incurred for despatch of goods, complete details shall be recorded as to date of despatch, type of transport used, description of the goods, destination of buyer, name of consignee, challan number, quantity of goods in terms of weight or volume, distance involved, amount paid and other related details. (d) Records shall be maintained separately for inward and outward transportation cost specifying the details particulars of goods despatched, name of supplier or recipient, amount of freight etc. 17 (e) Separate records shall be maintained for identification of transportation cost towards inward movement of material (procurement) and transportation cost of outward movement of goods removed or sold for both home consumption and export. (f) Records for transportation cost from factory to depot and thereafte....
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....tered into with them. (b) Royalty and technical know-how Fee paid or incurred in lump-sum or which are in the nature of 'one-time' payment, shall be amortised on the basis of the estimated output or benefit to be derived from the related asset. Amortisation of the amount of royalty or technical know-how fee paid for which the benefit is ensued in the current or future periods shall be determined based on 18 the production or service volumes estimated for the period over which the asset is expected to benefit the entity. (c) Amount of the royalty and technical know-how fee shall not include finance costs and imputed costs. (d) Any subsidy or grant or incentive or any such payment received or receivable with respect to amount of royalty and technical know-how fee shall be reduced to measure the amount of royalty and technical know-how fee. (e) Penalties, damages paid to statutory authorities or other third parties shall not form part of the amount of royalty and technical know-how fee. (f) Credits or recoveries relating to the amount royalty and technical know-how fee, material and quantifiable, shall be deducted to arrive at the net amount of royalty and technical kn....
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....esign of tools, jigs, moulds and dies; (x) other costs that can be directly attributed to research and development activities and can be identified with specific projects. (b) Subsidy or grant or incentive or amount of similar nature received or receivable with respect to research and development activity, if any, shall be reduced from the cost of such research, and development activity. (c) Any abnormal cost where it is material and quantifiable shall not form part of the research and development cost. (d) Fines, penalties, damages and similar levies paid to statutory authorities or other third parties shall not form part of the research and development cost. (e) Research and development costs shall not include imputed costs. (f) Credits or recoveries relating to research and development cost, if material and quantifiable, including from the sale of output produced from the research and development activity shall be deducted from the research and development cost. (g) Research and development costs attributable to a specific cost object shall be assigned to that cost object directly. Research and development costs that are not attributable to a specific product or ....
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...., namely, (a) prevention cost; and (b) appraisal cost. (c) Identification of quality control costs shall be based on traceability in an economically feasible manner. (d) Quality control costs other than those referred to above shall be determined on the basis of amount incurred in connection therewith. (e) Finance costs incurred in connection with the self-generated or procured resources shall not form part of quality control cost. (f) Quality control costs shall not include imputed costs. (g) Any Subsidy or grant or incentive or any such payment received or receivable with respect to any quality control cost shall be reduced for ascertainment of the cost of the cost object to which such amounts are related. (h) Any abnormal portion of the quality control cost where it is material and quantifiable shall not form part of the cost of quality control. (i) Penalties, damages paid to statutory authorities or other third parties shall not form part of the quality control cost. (j) Any change in the cost accounting principles applied for the measurement of the quality control cost shall be made only if, it is required by law or a change would result in a more appropriate ....
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....ments. (g) Social costs of pollution are measured by economic models of cost measurement. The cost by way of compensation by the polluting entity either under future legislation or under social pressure cannot be quantified by traditional models of cost measurement. They are best kept out of general purpose cost statements. (h) Cost of in-house pollution control activity shall include cost of materials, consumable stores, spares, manpower, equipment usage, utilities, and other resources used in such activity. (i) Cost of pollution control activity carried out by outside contractors inside the entity shall include charges payable to the contractor and cost of materials, consumable stores, spares, manpower, equipment usage, utilities, and other costs incurred by the entity for such jobs. (j) Cost of pollution control jobs carried out by contractor at its 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 other resources provided to the contractors. (k) Cos....
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....on control such as treatment and disposal of waste shall be assigned directly to the product, where traceable economically. (x) Where these costs are not directly traceable to the product but are traceable to a process which causes pollution, the costs shall be assigned to the products passing through the process based on the quantity of the pollutant generated by the product. (y) Where the pollution control cost is not directly traceable to cost object, it shall be treated as overhead and assigned based on either of the following two principles; namely:- (1) Cause and Effect - Cause is the process or operation or activity and effect is the incurrence of cost and (2) Benefits received - overheads are to be apportioned to the various cost objects in proportion to the benefits received by them. 14. Service department expenses. (a) Proper records shall be maintained in respect of service departments, that is, cost centres which primarily provides auxiliary services across the enterprise, 23 to indicate expenses incurred in respect of each such service cost centre like engineering, work shop, designing, laboratory, safety, transport, computer cell, welfare and other rela....
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....ervice shall be determined based on the normal capacity or actual capacity utilization whichever is higher and unabsorbed cost, if any, shall be treated as abnormal cost. Cost of a stand-by service shall include the committed costs of maintaining such a facility for the service. (p) Any abnormal cost where it is material and quantifiable shall not form part of the cost of the service cost centre. (q) Penalties, damages paid to statutory authorities or other third parties shall not form part of the cost of the service cost centre. 24 (r) Credits or recoveries relating to the service cost centre including charges for services rendered to outside parties, material and quantifiable, shall be reduced from the total cost of that service cost centre. (s) Any change in the cost accounting principles applied for the measurement of the cost of Service cost centre 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. (t) While assigning cost of services, traceability to a cost object in an economically feasible manner shall be the guiding principle. (u) Where the cost of ser....
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.... cost flow, namely, First In First Out, Last In First Out, weighted average rate. The method of valuation shall be followed on a consistent basis. (j) Wherever, packing material costs include transportation costs, the determination of costs of transportation shall be in accordance with para No. 9 on determination of cost of transportation. (k) Packing material costs shall not include imputed costs. (1) Where packing materials are accounted at standard cost, the price variances related to such materials shall be treated as part of packing material cost and the portion of usage variances due to normal reasons shall be treated as part of packing material cost. Usage variances due to abnormal reasons shall be treated as part of abnormal cost. (m) The normal loss arising from the issue or consumption of packing materials shall be included in the packing materials cost. (n) Any abnormal cost where it is material and quantifiable shall be excluded from the packing material cost. (o) The credits or recoveries in the nature of normal scrap arising from packing materials if any, shall be deducted from the total cost of packing materials to arrive at the net cost of packing mat....
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....ncurrence of cost and (2) Benefits received - to be apportioned to the various cost objects in proportion to the benefits received by them. 17. Any other item of cost.- Proper records shall be maintained for any other item of cost being indispensable and considered necessary for inclusion in cost records for calculating cost of production of goods or rendering of services, cost of sales, margin in total and per unit of the goods or services under reference. 18. Capacity determination. (a) Capacity shall be determined in terms of units of production or equivalent machine or man hours. (b) Installed capacity is determined based on- (i) manufacturers' Technical specifications; (ii) capacities of individual or interrelated production centres; (iii) operational constraints or capacity of critical machines; or (iv) number of shifts (c) In case manufacturers' technical specifications are not available, the estimates by technical experts on capacity under ideal conditions shall be considered for determination of installed capacity. In case any production facility is added or discarded the installed capacity shall be reassessed from the date of such addition or discard. In....
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....the point of separation of products or services shall be apportioned to joint products or services on reasonable and equitable basis and shall be applied consistently. The basis on which such joint costs are apportioned to different products or services arising from the process shall be indicated in the cost records. Proper records shall be maintained in respect credits or recoveries from the disposal of joint products or services. 22. Adjustment of cost variances.- Where the company maintains cost records on any basis other than actual such as standard costing, the records shall indicate the procedure followed by the company in working out the cost of the goods or services under such system. The cost variances shall be shown against separate heads and analyzed into material, labour, overheads and further segregated into quantity, price and efficiency variances. The method followed for adjusting the cost variances in determining the actual cost of the goods or services shall be indicated clearly in the cost records. The reasons for the variances shall be duly explained in the cost records and statements. 23. Reconciliation of cost and financial accounts.- The cost state....
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.... Expenses or incentives on exports.- (a) Proper records showing the expenses incurred on the export sales, if any, of the goods or services under reference shall be separately maintained so that the cost of export sales can be determined correctly. Separate cost statements shall be prepared for goods or services exported giving details of export expenses incurred or incentive earned. (b) Proper records shall be maintained giving the details of export commitments license-wise and the fulfillment of these commitments giving the reasons for non-compliance, if any. In case, duty free imports are made, the cost statements shall reflect this fact. If the duty free imports have been made after actual production, the statement shall reflect this fact also. 26. Production Records.- Quantitative records of all finished goods (packed or unpacked) or services rendered showing production, issues for sales and balances of different type of the goods or services 29 under reference, shall be maintained. The quantitative details of production of goods or services rendered shall be maintained separately for self-produced, third party on job work, loan license basis etc. 27. Sales recor....
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....records regarding available machine hours or direct labour hours in different production departments and actually utilized shall be maintained for production of goods or rendering of services under reference and shortfall suitably analyzed. Suitable records for computation of idle time of machines or labour shall also be maintained and analyzed. (b) Proper records shall be maintained to enable the company to identify the capital employed, net fixed assets and working capital separately for the production of goods or rendering of services under reference and other goods or services to the extent such elements are separately identifiable. Non-identifiable items shall be allocated on a suitable and reasonable basis to different goods or 30 services. Fresh investments on fixed assets for production of goods or rendering of services under reference that have not contributed to the production of goods or rendering of services during the relevant period or year shall be indicated in the cost records. The records shall, in addition, show assets added as replacement and those added for increasing existing capacity. 30. Records of Physical Verification.- Records of physical veri....
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....nce. 31 (vii) Detailed unit-wise and product/service-wise cost statements and schedules thereto in respect of the product /service under reference of the company duly audited and certified by me/us are/are not kept in the company. Observations and suggestions, if any, of the Cost Auditor, relevant to the cost audit. Dated: this day of 20 (mention name of place of signing this report) SIGNATURE AND SEAL OF THE COST AUDITOR (S) MEMBERSHIP NUMBER (S) Notes.- (1) Delete words not applicable. (2) If as a result of the examination of the books of account, the cost auditor desires to point out any material deficiency or give a qualified report, he/she shall indicate the same against the relevant para (i) to (vil) in the prescribed form of the Cost Audit Report giving details of discrepancies he/she has come across. (3) The report, suggestions, observations and conclusions given by the cost auditor under this paragraph shall be based on verified data, reference to which shall be made here and shall, wherever practicable, be included after the company has been afforded an opportunity to comment on them. 1. General Information Annexure to the Cost Audit Report PART-A 1 ....
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....nt cost components. (c) Accounting, allocation and absorption of overheads. (d) Accounting for depreciation/amortization. (e) Accounting for by-products/joint-products or services, scarps, wastage etc. (f) Basis for Inventory Valuation. (g) Methodology for valuation of Inter-Unit/Inter Company and Related Party transactions. (h) Treatment of abnormal and non-recurring costs including classification of other non-cost items. (i) Other relevant cost accounting policy adopted by the Company. (2) Briefly specify the changes, if any, made in the cost accounting policy for the product(s)/service(s) under audit during the current financial year as compared to the previous financial year. (3) Observations of the Cost Auditor regarding adequacy or otherwise of the Budgetary Control System, if any, followed by the company. 4. PRODUCT/SERVICE DETAILS (for the company as a whole) Name of Product(s)/Service(s) UOM CETA 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 reven....
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....erating Expenses (specify details as per Para 2C) Total (1 to 13) Increase/Decrease in Work-in-Progress Less: Credits for Recoveries, if any 17 Primary Packing Cost 18 Cost of Production/Operations (14+ 15 to 17) 19 Cost of Finished Goods Purchased 20 Total Cost of Production and Purchases (18+ 19) 220 21 Increase/Decrease in Stock of Finished Goods 22 Less: Self/Captive Consumption (incl. Samples, etc.) 23 Other Adjustments (if any) 24 25 25 Cost of Production/Operation of Product Sold (20 + 21 to 23) Administrative Overheads 26 Secondary Packing Cost 27 Selling and Distribution Overheads 28 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. materialit....
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....chnical know-how Fee / Royalty 10 11 12 22 Depreciation/Amortization Other Overheads Industry Specific Operating Expenses (specify details as per Para 2C) Total (1 to 12) 13 14 Less: Credits for Recoveries, if any 15 Cost of Services provided (13-14) 16 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....
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....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 Performance 1 Value Added 2 3 Net Revenue from Operations of Company Profit before Tax (PBT) C. Profitability Ratios 1 PBT to Capital Employed (B3/A6) % 2 PBT to Net Worth (B3/A7) % 3 PBT to Value Added (B3/B4) % 4 PBT to Net revenue f....