Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com COST ACCOUNTING RECORDS (DYES) RULES, 1976 CONTENTS 1. Short title and commencement 2. Application 3. Definitions 4. Maintenance of Records 5. Penalty SCHEDULE 1 :- 1 1. Materials 2. Salaries and Wages 3. Service Department Expenses 4. Utilise 5. Workshop/Repairs and Maintenance 6. Depreciation 7. Overheads 8. Multi-purpose vessels and plants 9. Research and Development Expenses 10. Expenses on Export 11. By-products 12. Dyes transferred from captive consumption 13. Packing 14. Work-in-progress and finished goods stock 15. Cost statements 16. Production Record 17. Reconciliation of Cost and Financial Accounts 18. Adjustment of cost variances 19. Records of physical verification 20. Inter-company transactions 21. Statistical Records SCHEDULE 2 :- 2 COST ACCOUNTING RECORDS (DYES) RULES, 1976 G.S.R. 605, dated 22nd April, 1976 1.-In exercise of the powers conferred by sub-section (1) of Section 642, read with Cl. (d) of sub- section (1) of Sec. 209 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, namely:- 1. Short title and commencement :- (a) Raw Materials.-Proper records shall be maintained showing all receipts, issues, and balances both in quantities and cost of each item of raw material required and actually used in producing, processing or manufacturing of Dyes. These records for raw materials shall contain such details as to enable the company to determine the quantity, cost of receipts (including all direct charges incurred up to the works), issues and balances of each item of raw materials. The basis on which the said quantities and costs have been calculated shall be indicated in the cost records. (b) Process Materials.-Proper record shall be maintained to show the receipts, issues and balances, both in quantities and cost of each item of process materials. The costs shall include all direct charges up to the works, wherever specifically incurred. The issues shall be properly identified with the departments, cost centres and products manufactured. In case intermediates/processed materials/chemicals required in the production of other intermediates/Dyes are manufactured by the company, separate records showing the cost of manufacture of such items indicating the break-up of raw materials consumed for the production as well as conversion costs shall be maintained in proforma 'A' or in any other proforma as near thereto as may enable the company to determine the cost of such intermediate/processed materials/chemicals produced. In case such of those process materials (like caustic soda) which are already covered under the relevant Cost Accounting Records Rules prescribed are manufactured, proper records shall be maintained as per those rules so as to arrive at the cost of those items. (c) Recoveries of process chemicals.-Proper records shall be maintained indicating the quantity and cost of the chemicals recovered in the different processes. In the case of certain chemicals thus recovered which cannot be used back in the process or disposed of without processing, adequate records of cost involved for such further processing shall be maintained. Sales realisation, if any, on account of disposal of such items may be indicated in the records and necessary adjustment carried out in the cost of relevant chemicals/process. (d) Consumable stores, small tools, machinery spares, etc (i) Proper records shall be maintained to show the receipts, issues and balances. both in quantities and cost of each items of consumable stores, small tools and machinery spares. The costs shall include all direct charges up to works wherever specifically incurred. (ii) In the case of consumable stores and small tools, the costs of which are insignificant, the company may, if it so desires, maintain such records for the main group of such items. (iii) The cost of issues of consumable stores, small tools and machinery spares shall be charged to the relevant heads of account such as production, repairs to plant and machinery, repairs to buildings, materials consumed on capital works such as additions to buildings, plant and machinery, and other assets shall be shown under the relevant capital heads. (c) Wastages, spoilages, rejections, losses, etc., of materials.-Proper records shall be maintained to show the quantity and cost of wastages, spoilages, rejections and losses of raw materials, process materials, consumable stores, small tools and machinery spares, whether in transit, storage, manufacture or any other reasons. The method followed for adjusting the above losses as well as the income derived from the disposal of rejected and wastage materials, if any, in determining the cost of the product shall be indicated in the cost records. 2 \Application [. .-They shall apply to every company engaged in the production, processing or manufacture of dyes excepting those companies falling under the category of small scale industrial undertakings. 2 [Explanation.-for the purposes of this rule, the expression "small scale industrial undertaking" means a company,- (a) the aggregate value of the machinery and plant installed wherein does not exceed sixty lakh rupees as on the last day of the preceding financial year. and for this purpose the value of any machinery or plant shall be,- (i) in the case of any machinery or plant owned by the company the cost thereof to the company;, and (ii) in the case of any machinery or plant held by the company on lease or by hire purchase, the cost thereof as in the case of owner of such machinery or plant; and (b) the aggregate value of the realisation made by the company from the sale or supply of all its products during the preceding financial year does not exceed ten crore rupees.]] 1. Subs. by G.S.R. 558, dated 22nd July, 1989, (w.e.f. 5th August, 1989). 2. Subs. by G.S.R. 318 (E), dated 24th March, 1993 (w.e.f. 24th March, 1993). 3. Definitions :- Detailed records shall be maintained to indicate expenses for each service department or cost centres. These expenses shall be apportioned to other service and production departments on an equitable basis and applied consistently. 4 \Maintenance of Records . (1) Every company to which these rules apply shall in respect of each of its financial year commencing on or after the commencement of these rules keep proper books .of account containing, inter alia, the particulars specified in Schedules I and II annexed to these rules relating to the utilisation of materials, labour and other items of cost in so far as they are applicable to the Dyes referred to in rule 2 : rule 2. (2) The books of account referred to in sub-rule (1) shall be kept in such a way as to make it possible to calculate the cost of production and cost of sale of items referred to in rule 2 during a financial year (hereinafter referred to as the relevant period) from the particulars entered therein and every such books of account and the proformae specified in Schedule II shall be completed within ninety days from the end of the financial year of the company to which they relate. (3) It shall be the duty of every person referred to in sub-section (6) and sub-section (7) of Sec. 209 of the Companies Act, 1956 (1 of 1956). to take all reasonable steps to secure compliance by the company with the provision of sub-rules (1) and (2) in the same manner as they are liable to maintain financial accounts required under sub-section (1) of Section 209 of die said Act. 5. Penalty :- Proper records showing the expenditure incurred by the workshop under different heads and on repairs and maintenance by the various departments and cost centres shall be maintained. The records shall also indicate the basis of charging the workshop expenses to different departments and cost centres. Expenditure on major repair works from which benefit is likely to accrue for more than one financial year shall be shown separately in the cost records indicating the method of accounting in determining the cost of Dyes manufactured during the relevant period. Expenditure incurred on works of a capital nature shall be capitalised. The cost of such jobs shall include the expenditure on material, labour and a share of the overheads. The jobs carried out by the workshop of Dye unit for other units of the company and vice versa shall be charged on a reasonable basis and applied consistently. 5 \Penalty . .-If a company contravenes the provisions of rule 4. the company and every officer thereof who is in default including the persons referred to in sub-rule (3) of rule 41 [shall, subject to the provisions of Sec. 209 of the Companies Act, 1956 (1 of 1956), be punishable] with fine which may extend to five hundred rupees and where the contravention is a continuing one with a further fine which may extend to fifty rupees for every day after (he first during which such contravention continues. 1. Subs. by G.S.R. 791, dated 3rd June, 1977 (w.e.f. 25th June, 1977). SCHEDULE 1 1 1. Materials :- (a) Raw Materials.-Proper records shall be maintained showing all receipts, issues, and balances both in quantities and cost of each item of raw material required and actually used in producing, processing or manufacturing of Dyes. These records for raw materials shall contain such details as to enable the company to determine the quantity, cost of receipts (including all direct charges incurred up to the works), issues and balances of each item of raw materials. The basis on which the said quantities and costs have been calculated shall be indicated in the cost records. (b) Process Materials.-Proper record shall be maintained to show the receipts, issues and balances, both in quantities and cost of each item of process materials. The costs shall include all direct charges up to the works, wherever specifically incurred. The issues shall be properly identified with the departments, cost centres and products manufactured. In case intermediates/processed materials/chemicals required in the production of other intermediates/Dyes are manufactured by the company, separate records showing the cost of manufacture of such items indicating the break-up of raw materials consumed for the production as well as conversion costs shall be maintained in proforma 'A' or in any other proforma as near thereto as may enable the company to determine the cost of such intermediate/processed materials/chemicals produced. In case such of those process materials (like caustic soda) which are already covered under the relevant Cost Accounting Records Rules prescribed are manufactured, proper records shall be maintained as per those rules so as to arrive at the cost of those items. (c) Recoveries of process chemicals.-Proper records shall be maintained indicating the quantity and cost of the chemicals recovered in the different processes. In the case of certain chemicals thus recovered which cannot be used back in the process or disposed of without processing, adequate records of cost involved for such further processing shall be maintained. Sales realisation, if any, on account of disposal of such items may be indicated in the records and necessary adjustment carried out in the cost of relevant chemicals/process. (d) Consumable stores, small tools, machinery spares, etc (i) Proper records shall be maintained to show the receipts, issues and balances. both in quantities and cost of each items of consumable stores, small tools and machinery spares. The costs shall include all direct charges up to works wherever specifically incurred. (ii) In the case of consumable stores and small tools, the costs of which are insignificant, the company may, if it so desires, maintain such records for the main group of such items. (iii) The cost of issues of consumable stores, small tools and machinery spares shall be charged to the relevant heads of account such as production, repairs to plant and machinery, repairs to buildings, materials consumed on capital works such as additions to buildings, plant and machinery, and other assets shall be shown under the relevant capital heads. (c) Wastages, spoilages, rejections, losses, etc., of materials.-Proper records shall be maintained to show the quantity and cost of wastages, spoilages, rejections and losses of raw materials, process materials, consumable stores, small tools and machinery spares, whether in transit, storage, manufacture or any other reasons. The method followed for adjusting the above losses as well as the income derived from the disposal of rejected and wastage materials, if any, in determining the cost of the product shall be indicated in the cost records. 2. Salaries and Wages :- (a) Proper records shall be maintained to show the attendance and earnings of all employees and the departments or cost centres and the work on which they are employed. The records shall also indicate separately :- (i) Overtime wages earned; (ii) Piece-rate wages earned; (iii) Incentive wages earned, either individually or collectively as production bonus or under any other scheme based on output; (iv) earnings of casual labour. (b) Idle time shall be separately recoed under classified headings indicating the reasons therefor. The method followed for accounting of idle time payments in determining the cost of the products shall be disclosed in the cost records. (c) Any wages and salaries allocable to capital works such as additions to plant and machinery, buildings or other fixed assets shall be accounted for under the relevant capital heads. 3. Service Department Expenses :- Detailed records shall be maintained to indicate expenses for each service department or cost centres. These expenses shall be apportioned to other service and production departments on an equitable basis and applied consistently. 4. Utilise :- (a) Water.-Proper records showing the quantity and cost of water treated and consumed for the manufacture of Dye in different departments/cost centres, etc., shall be maintained in such detail as may enable the company to furnish the necessary particulars in Annexure I to this schedule. The cost of treated water allocated shall be on a reasonable basis and applied consistently. (b) Steam.-Where steam is raised by the company, proper records showing the quantity and cost of steam raised and consumed for the production of Dyes in different departments/cost centres shall be maintained in such details as may enable the company to furnish the necessary particulars in Annexure II to this Schedule. The cost of steam consumed by the Dye factory and other units of the company shall be calculated on a reasonable basis and applied consistently. Where steam is raised and supplied by any other unit of the company to the Dye factory, the cost of steam so supplied shall be charged on a reasonable basis and applied consistently. (c) Power.-Proper records shall be maintained of the quantity and cost of power purchased. Where power is generated by the company, adequate records shall be maintained to show the cost of power generated and consumed for production of Dyes in different departments/cost centres, etc., in such detail as may enable the company to furnish the necessary particulars in Annexure III to this Schedule. Where power is generated and supplied by any other unit of the company to Dye factory, adequate records shall be maintained to assess the quantity and cost of power so supplied. The rate charged by that unit shall be on a reasonable basis and applied consistently. The cost of power allocated to production of Dyes shall be on a reasonable basis and applied consistently. 5. Workshop/Repairs and Maintenance :- Proper records showing the expenditure incurred by the workshop under different heads and on repairs and maintenance by the various departments and cost centres shall be maintained. The records shall also indicate the basis of charging the workshop expenses to different departments and cost centres. Expenditure on major repair works from which benefit is likely to accrue for more than one financial year shall be shown separately in the cost records indicating the method of accounting in determining the cost of Dyes manufactured during the relevant period. Expenditure incurred on works of a capital nature shall be capitalised. The cost of such jobs shall include the expenditure on material, labour and a share of the overheads. The jobs carried out by the workshop of Dye unit for other units of the company and vice versa shall be charged on a reasonable basis and applied consistently. 6. Depreciation :- (a) Proper records shall be maintained showing the cost and other particulars of fixed assets in respect of which depreciation is to be provided, These records shall, inter alia, indicate the cost of each item of assets including installation charges, if any, the date of installation and rate of depreciation. In respect of those assets, the original cost of acquisition of which cannot be ascertained without an unreasonable expenditure or delay, the valuation shown In the books on the first day of the financial year beginning on or after the commencement of these rules shall be taken as the opening balance. (b) The basis on which depreciation is calculated and allocation to the various departments and cost centres and to products shall be clearly indicated in the records. Depreciation chargeable to the different departments and cost centres shall not be less than the amount of depreciation chargeable in accordance with the provisions of sub-section (2) of Sec. 205 of the Companies Act, 1956 (1 of 1956), and shall relate to plant, machinery and other fixed assets utilised in such departments and cost centres. In case the amount of depreciation charged in the cost records in any financial year is higher than the amount of depreciation chargeable under the aofresaid provisions of the Companies Act, the amount so charged in excess, the incidence of such excess depreciation on the unit cost of production shall be indicated clearly in the cost records. The cumulative depreciation charged in the cost records against any individual item of asset shall not, however, exceed the original cost of the respective asset. 7. Overheads :- Proper records shall be maintained showing the various items of expenses comprising overheads. These expenses shall be analysed, classified and grouped into work, administration and selling and distribution overheads. Where the company is engaged in the manufacture of any other products in addition to Dyes, the records shall clearly indicate the basis followed f o r apportionment of the common overheads including head office expenses of the company to the Dye activity and other activities. In case a n y expense included in the above categories of overheads can be identified with a particular activity/product such expense shall be segregated and charged to the relevant activity/product at the first instance and thereafter the common expenses under the above categories of overheads shall be allocated on an equitable basis and applied consistently. Overheads allocable to capital work shall be indicated separately in the cost records. The methods followed for the levy and absorption of the above categories of overheads to the products shall be indicated in the cost records and the basis followed shall be equitable and applied consistently. 8. Multi-purpose vessels and plants :- When processing of more than one product (dye-intermediate) is carried out in a particular vessel (s)/plant(s), proper records about the utilisation of such vessel(s)/plant(s) for different products (dyes/intermediates) shall be kept. The cost of utilisation of such vessel (s)/ plant (s) shall be charged to the different products (dyes/intermediates) on an equitable basis such as equipment occupancy hours and applied consistently. 9. Research and Development Expenses :- Proper records showing the details of expenses, if any, incurred by the company for the research and development according to the nature, namely, development of products existing and new, processes-existing and new, design and development of plant facilities, market research for the existing and new products, shall be maintained separately Wherever the utility of such research expenses extends over for more than one financial year such expenses shall be treated as deferred expenses and charged to the cost of the products on an equitable basis which is to be followed consistently. The method followed for charging these expenses to the cost of production of dyes/intermediates during any year shall be indicated in the relevant cost record's and the basis followed shall be equitable and applied consistently. 10. Expenses on Export :- Records showing the expenses incurred on the export of Dyes. if any, shall be separately maintained, so that the cost of export sales can be determined correctly. The expenses incurred on exports as well as any export incentives earned shall be reflected in the cost statements relating to export sales. 11. By-products :- Proper records shall be maintained for each item of by-product, if any, produced showing the receipts, issues and balances both in quantity and values. The basis adopted for valuation of the by-products for giving credit to the respective dyes/intermediates shall be equitable and consistent. Records indicating the expenses incurred on further process, if any, as well as the actual sales realisation of by-products shall be maintained. 12. Dyes transferred from captive consumption :- Proper records shall be maintained showing the quantity and cost of Dyes/intermediates transferred to another department/unit of the company for captive consumption. Such transfers shall be effected on actual cost and disclosed in the cost records. 13. Packing :- Proper records shall be maintained showing the quantity and cost of various packing materials such as tins, gunny bags and for wages and other expenses incurred in respect of different sizes of packs adopted for marketing of Dyes. Where such expenses are incurred in common for other products also. the basis of apportioning the expenses between the relevant products shall be clearly indicated in the cost records, and applied consistently. Detailed records of the expenses incurred on export packing shall also be kept separately and exhibited in the relevant cost statements for exports. 14. Work-in-progress and finished goods stock :- The method followed for determining the cost of work-in-progress and finished goods stocks shall be indicated in the cost records so as to reveal the cost elements that have been taken into account in such computation. The method adopted shall be followed consistently. 15. Cost statements :- Separate cost statements shall be maintained in respect of each Intermediate/Dye showing the cost of production and cost of sales in Proformae 'A', 'B' and 'C' respectively. Exports of Dyes shall be exhibited in separate cost statements as in Proforma 'C'. In case special processing i s involved for export quality, cost statements in Proformae 'A' and 'B' shall also be maintained separately and the same excluded from the cost statements meant for sales in internal market. 16. Production Record :- Quantitative records of all Finished and packed production, issues for sales and balances of different Dyes and intermediates produced by the company shall be maintained. The cost of all finished and packed production, issues and balances may be kept in detail or in the form of control accounts for each product group provided the cost of the balances according to such control accounts are reconciled periodically, at least. once in a year with the cost of the quantities shown in the quantitative account of each Dye. 17. Reconciliation of Cost and Financial Accounts :- The cost records shall be reconciled preferably periodically with the financial books of account so as to ensure accuracy. Variation, if any, should be clearly indicated and explained. The period for which such reconciliation is effected shall not exceed the period of the financial year of the company. The reconciliation shall be done in such a manner that the profitability of the product under reference can be correctly adjudged and reconciled with the overall profits of the company. A statement showing the total expenses incurred and the income received by the company and the share applicable to the Dyes activity shall be maintained in Proforma D duly reconciled with the financial accounts. 18. Adjustment of cost variances :- Where the company maintains cost records on any basis other than actuals, such as . standard costing, the records shall indicate the procedures followed by the company in working out the cost of the products under such procedures. The method followed for adjusting the cost variances in determining the actual cost of the product shall be indicated clearly in the cost records. The cost variances shall be shown against the relevant heads in the respective proformae of Schedule II. The reasons for variances shall be indicated in the cost records. 19. Records of physical verification :- Recurds of physical verification shall be maintained in respect of all items held in stock such as raw materials, process materials, packing materials, consumable stores, machinery spares, intermediates, fuels, finished goods and fixed assets. Reasons for shortages/surpluses arising out of such verification and the method followed for adjusting the same in the cost of the products shall be indicated in the records. 20. Inter-company transactions :- In respect of supplies made or services rendered by the company to its holding company or a subsidiary or a company in the same management, as defined in Sec. 370 (1-B) of the Companies Act, 1956, or a company in which the director of the company is also a director in such companies and vice versa, records shall be maintained showing contracts entered into, agreements or understandings reached, in respect of:- (a) purchase and sale of raw materials, process materials, finished products, by- products and fixed assets; (b) utilisation of plant facilities: (c) supply of utilities; and (d) administrative, technical, managerial and any oilier consultancy services, These records shall also indicate the basis followed for arriving at the rates charged between them so as to enable determination of the reasonableness of the rates charged or paid for such services. 21. Statistical Records :- Data such as plant utilisation, the equipment occupancy hours for different kinds of intermediates/dyes in respect of plants, raw material consumption plant-wise, product- wise. batch-wise and yield records batch-wise of different kinds of intermediates/dyes, stock statistics such as raw materials, finished products, work-in-progress, plant stoppages indicating reasons under classified headings, various operating efficiency and recovery efficiencies shall be kept. Records as will enable the company to identify as far as possible, the capital employed separately for the Dye manufacturing activity shall be maintained. Fresh investments on fixed assets that have not contributed to the production during the relevant period shall also be indicated in (he records. The records shall in addition show assets added as replacement and that added for increasing the existing capacity. Statistical and other records maintained in compliance with the provisions of this Schedule and Schedule II shall be such as to enable the company to exercise, as far as possible, control over the various operations with a view to achieve optimum economies in costs and to provide the necessary data required by the cost auditor to suitably report on all the points referred to in Cost Audit (Report) Rules, 1968, as amended from time to time. The data maintained in the cost records shall be reconciled with the periodical records submitted by the company to excise and oilier authorities. SCHEDULE 2 2 [See rule 4] PROFORMA 'A ' Name of the Company....................................... Name and address of the Chemical Factory (Dye Unit) .................................... Statement showing the cost of intermediate (name).........................,..................... manufactured and used either in production of other intermediate products or Dyes during the year ending. ______________________________________________________________________ Sl. Particulars Quantity. Rate Total Cost No. (Units) (Rs.) (Rs.) ______________________________________________________________________ (1) (2) (3) (4) (5) ______________________________________________________________________ 1. Opening Balance of stock 2. Quantity produced and the related expenses as under : (i) (a) Raw Materials purchased (to be specified) (b) Intermediates if any manufactured within the works (to be specified) (ii) Consumable Stores (other than those allocated to repairs and maintenance) (iii) Salaries and Wages (iv) Utilities : (a) Water (b) Steam (c) Power (d) Refrigeration (v) Milling Charges (vi) Repairs and Maintenance (vii) Other works overheads (viii) Royalty (ix) Depreciation (x) Administration overheads 3. Total of 2 (i) to (x) 4. (*) Adjustment for cost variances (where standard costing system is adopted) (a) Materials (b) Labour (c) Overheads 5. Total of (3) and (4) 6. Less : Value of by- products/wastages, if any 7. TOTAL 8. Adjustment for opening and closing stock of work-in-progress _____________________________________________________________________ (1) (2) (3) (4) (5) ______________________________________________________________________ 9. TOTAL 10. Total of (1) and (9) 11. Less : Closing Stock 12. Total cost of Intermediate available for transfer ______________________________________________________________________ Qty. Value ______________________________________________________________________ Transferred to: (i) Other intermediates, if any (ii) Dyes(Proforma'B') (iii) Other Departments ______________________________________________________________________ (*) Applicable to companies maintaining records on standard costing system only. NOTES :- (1) This proforma may be used for each Intermediate manufactured by the company and used in the production of Dyes/other intermediates. (2) The basis on which the value for rejections/waste is determined shall be clearly indicated. Expenditure, if any. incurred for the disposal of such items shall be deducted from the disposal value to arrive at the figures at item 6. (3) Bonus to employees other than incentive bonus, provision for statutory gratuity and interest charges shall be shown in Prodformae'C' and 'D' only. PROFORMA 'B' Name of the Company Name and address of the Chemical Factory (Dye Unit) Statement showing the cost of Dyestuff ..................................... manufactured during the year ending Classification Specification Colour Index Trade Name ______________________________________________________________________ Current Year Previous year ______________________________________________________________________ Quantity produced : ______________________________________________________________________ Cost per tonne SI. Particulars Qty. Rate Amount ______________ No. (Units) (Rs.) (Rs.) Current Previous year year (Rs.) (Rs.) ______________________________________________________________________ (1) (2) (3) (4) (5) (6) (7) ______________________________________________________________________ 1. Opening Balance of stock 2. Quantity produced and related expenses : (i) Raw materials (purchased) (items to be specified) ______________________________________________________________________ (1) (2) (3) (4) (5) (6) (7) ______________________________________________________________________ (ii) Intermediate manufactured within the works as per proforma 'A' (items to be specified) (iii) Consumable Stores (other than those allocated to repairs and maintenance) (iv) Salaries and Wages (v) Utilities : (a) Water (b) Steam (c) Power (d) Refrigeration (vi) Milling charges (vii) Repairs and maintenance (viii) Other works overheads (ix) Royalty (x) Depreciation {xi) Administration overheads (xii) (*) Adjustment for cost variances, if any (a) Materials (b) Labour (c) Overheads 3. Total 2 (i) to 2 (xii) 4. Less :Credils for recoveries of by-products/ wastages, if any (to be specified) 5. Total 6. Adjustment for opening and closing work-in- progress 7. Adjustment of self-consumption 8. Total 9. Total (1 )and (8) 10. Less :.Closing Balance 11. Total cost of naked dyestuff for packing (transferred to Proforma 'C') ______________________________________________________________________ *Applicaole to companies maintaining records on standard costing system only. NOTES:- (1) Separate cost statements shall be maintained in respect of different types of dyes manufactured suitably filling in the appropriate items in this Proforma. (2) The apportionment of head office expenses and other common overheads to the product under reference in the case of multi-product units-shall be equitable. (3) The basis on which the value for rejections/waste is determined shall be clearly indicated. Expenditure.if any.incurred for the disposal of such item shall be deducted from disposal value to arrive at figures at item 4. (4) Bonus to employees other than incentive bonus, provision for statutory gratuity and interest charges shall be shown in Proformae 'C' and 'D' only. PROFORMA 'C' Name of the Company .............................. Name and address of the Chemical Factory (Dye Unit) .............................. Statement showing the cost of sales of packed Dyestuff/ Intermediate during the year ending .............................. \Classification................................. \Specification................................. \Colour Index No............................ \Trade Name.................................... ______________________________________________________________________ Sizes of packing Current year Previous year ______________________________________________________________________ Kg. Kg. (a) Quantity packed (b) Quantity sold (c) Quantity used for self-consumption by other units of the company ______________________________________________________________________ ______________________________________________________________________ Sl. Particulars Qty. Rate Total Cost Cost per pack No. Kg. per unit ________________ Current Previous year year (Rs.) (Rs.) (Rs.) (Rs.) ______________________________________________________________________ (1) (2) (3) (4) (5) (6) (7) ______________________________________________________________________ 1. (a) Cost of naked Dyestuff/ Intermediate as per Proforma 'B'/'A'. (b) Packing Cost (i) Tins (ii) Polythene bags (iii) Card-boards (iv) Other packing materials (v) Salaries and Wages (vi) Repairs and Maintenance (vii) Depreciation Total (c) Stock adjustments ______________________________________________________________________ (1) (2) (3) (4) (5) (6) (7) ______________________________________________________________________ Add: Opening stock Less: Closing stock (d) Net cost of quantity packed for sales 2. Selling and Distribution Expenses (for quantity sold only) (i) Salaries and Wages (ii) Commission to selling agents (iii) Freight and transport (iv) Loading and unloading charges (v) Godown rent (vi) Advertisement (Vii) Other charges (viii) Share of Administration expenses 3. Total cost including selling and distribution expenses. 4. Annual bonus to employees (other than incentive bonus). 5. Provision for statutory gratuity. 6. Interest charges. 7. Other expenses not included in cost (items to be specified) Total 8. Less other income not considered in cost (items to be specified) 9. Total expenses excluding excise duty for quantity sold within the country. 10. Total sales realisation, excluding excise duty for quantity sold within the country. 11. Margin. ______________________________________________________________________ NOTES :- (1) Separate cost statements shall be maintained in respect of each Dyestuff/Intermediate and for each size of packing. (2) The apportionment of common selling and distribution expenses to the various products in the case of multi-product units shall be equitable and consistent. (3) Bonus to employees other than incentive bonus, provision for statutory gratuity and interest charges shall be shown separately in Proformae 'C' and 'D' and not in any other Proforma. (4) If the entire or part of the packing plant is used for packing of other products in addition to dyes, the apportionment of the operating expenses of the packing plant including labour costs to the different products shall be equitable and applied consistently. The basis of apportionment of such expenses shall be clearly indicated in the cost records. (5) Separate cost statements under Proforma 'C' (with a suitable modification) shall be maintained in respect of Dyestuff/Intermediate exported. Expenses incurred on exports and incentives earned thereon shall be shown in the relevant cost statements. PROFORMA 'D' Name of the Company........................................................................... Name and address of the Chemical Factory (Dye Unit) ..................................... Statement showing the allocation of total expenses incurred and incomes received by the company between Dye activity and other activities during the year ending............... _______________________________________________________________________ Sl. No. Particulars Total actual Share applicable to expenses/incomes __________________ Dye activity Other \ \activities (Rs.) (Rs.) (Rs.) _______________________________________________________________________ (1) (2) (3) (4) (5) _______________________________________________________________________ 1. Raw material consumed 2. Process chemical/material consumed 3. Consumable Stores 4. Bulk packing materials 5. Salaries and wages 6. Milling expenses 7. Utilities 8. Repairs and maintenance 9. Other works overheads 10. Depreciation 11. Administration overheads Total 12. Adjustment for difference between opening and closing balance of work-in-progress. 13. Less credits for recoveries (i) By-products (ii) Others 14. Stock adjustment for difference between opening and closing stock. 15. Packing expenses. 16. Selling and Distribution Expenses Total _______________________________________________________________________ (1) (2) (3) (4) (5) _______________________________________________________________________ 17. Annual bonus to employees other than incentive bonus 18. Provision for statutory gratuity 19. Interest charges 20. Other expenses not included in cost (items to be specified) 21. Less : other income not considered in cost (items to be specified) 22. Total excluding excise duty 23. Deduct export benefits, if any 24. Net sales realisation (excluding excise duty) 25. Margin _______________________________________________________________________ NOTE :-All items of expenses and incomes in this Proforma shall be reconciled with the financial accounts for the relevant period.