Records for physical verification may be maintained in respect of all items held in the stock such as raw material, 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:
t
(iv)
(v) Form CRA3 [See rule 6(4) of the Companies (Cost Records and Audit) Rules, 2014] FORM OF THE COST AUDIT REPORT 1/vve,...................... having been appointed as Cost Audiio(s) under sutssection (3) of section 148 of the Companies Act, 2013 (18 of 2013) of .-........................(mention name of the company) having its registered office at .............. ......... (mention registered office address of the company) (hereinafter refened to as the company), have audited the Cost Records maintained under seclion 148 of the said Act, in compliance with lhe cosl auditing standards, in respect of the.... ..lmention name (s) of Produc(s) / service(s)l for theperaod/year............ (mention the financial year) maintained by lhe company and report, in addition lo my/our observations and suggestions in paragraph 2.
(D l/We have/have not obtained all the information and explanations, which to the best of my/our knowledge and belief were necessary for the purpose of this audit.
(ii) In my/our opinion, proper cost records, as per rule 5 of the Companies (Cost Records and Audit) Rules, 2014 have/have not been maintained by the company in respect of prodlct(s)/service(s) under reference.
(iii) In my/our opinion, proper relums adequate for the purpose of the Cost Audit have/have not been received from the branches not visited bv me/us.
In my/our opinion and to the best of my/our information, the said books and records give/do not give the information required by the Companies Act, 2013, in the manner so required.
In my/our opinion, the company havdoes not have adequate system of internal audit of cost records which to my/our opinion is commensurate to its nature and size of its business.
(vi) In my/our opinion, information, statements in the annexure to this cost audit report giveydoes not give a true and fair view of the cost of production of product(s)/rendering of service(s), cost of sales, margin and other information relating lo product(syservice(s) under reference.
(vii) Detailed unilwise and producuservice-wise cost statements and schedules thereto in respect of the producvservice under reference of the company duly audited and certified by me/us arelare not kept in the company.
2. Observations and suggestions, if any, of the Cost Auditor, relevant io the cost audit.
Dated: this dav of 20_at _ (mention name of place of signing lhis report) SIGNATURE ANO SEAL OF THE COST AUDITOR (S) MEMBERSHIP NUMBER (S) NOTES:
(1) Delete words not applicable.
(2) lf 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 or she shall indicate the same against the relevant para
(i) to (vi) in the prescribed form ofthe Cost Audit Report giving details ofdiscrepancies 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 afterthe company has been afforded an opportunity to comment on ihem.
28 o Annexure tg the Cost Audit Report Part-A 1 Corporate identity number or foreign company regislration numDer Name of company Address of registered ofnce or of principal place of business in India of company Address of corporate office of company 5 Email address of company 6 Date of beginning of reporting Financial year ddlmmlyyyy 7 Date of end of reporting Financial year dd/mm/yyyy I Oate of beginning ot previous financial year dd/mm/yyyy 9 Oate of end of previous financial year dd/mm/yyyy 10 Level of rounding used in cost statements (in INR) Absolute/thousands/lacs/crores 11 Whether lndian Accounting Standards are applicable to the company Yes/No 12 Number of cost audltors for reporting period '13 Date of board of directors meeting in which annexure to cost audil report was approved 14 Whether cost auditors report has been qualified or has any reservations or contains adverse remarks 15 Consolidated qualifications, reservations or adverse remarks of all cost auditors 16 Consolidated observations or suggestions of all cost auditors 't7 Whether company has related party transactions for sale or purchase of goods or services
2.
1 Whether cost auditor is lead auditor 2 Category of cost auditor Firm's registration number 4 Name of cost auditor/cost auditor's tirm 5 PAN of cost auditor/cost auditor's lirm o Address of cost auditor or cost auditor's firm 7 Email id of cost auditor or cost auditor's firm I Membership number of member signing report Name of member signing report 10 Name(s) of product(s) or service(s) with CETA Headinos - 29- , 11 SRN number of Form 23C / GRA-2 12 Number of audit committee meeting aitended by cost auditor during year 13 Date of signing cost audit report and annexure by cost auditor '14 Place of signing cost audit report and annexure by cost auditor 3, Cost Accountinq Policv
(1) Briefly describe the cost accounting poticy adopted by the company and its adequacy or otherwise lo determine correctly the cost of production/operation, cost of sales, sales realisation ind margin of the product(s)/service(s) under reference separalely for each product(s)/service(s). The policy siould cover, inter alia, the following areas:
a) ldentification of cost centres/cost objects and cost drivers.
b) Accounting for material cost including packing materials, stores and spaies, employee cost, utilities and other relevant cost comDonents.
c) Accounting, allocation and absorption of overheads d) Accounting for 0epreciation/Amortisation e) Accounting for by-products/joint-products or services, scarps, wastage etc.
f) Basis for Inventory Valuation g) Methodology for valuation of Inter-UniUlnter Company and Related party transactions.
h) Treatment of abnormal and non-recurring costs including classification of other non-cost items.
i) Other relevant mst accounting policy adopted by the Company
(2) Briefly specify the changes, if any, made in the cost accounting policy for the product(s)iservice(s) under audit du ng the current financial year as compared lo 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.
Name of Product(s) /Service(s) Total Net revenue from Operations Other Incomes of Company Total revenue as per Financial Accounts Exceptional, Extra Ordinary and Other Comprehensive Income, if any 30 a Total Revenue including Exceptional, Extra Ordinary and Other Comprehensive Income, if any Turnover as per Excise/Sorvice Tax Records Note:
1) Explain the difference, if any, between Tumover as per Financial Statements and Tutnover as pel Exciserservice Tax Records.
PART.B FOR MANUFACTURING SECTOR
1. QUANTfTATIVE f NFORMATTON (for each product wifft CEIA Heading sePantetyl Name of Product CETA Heading Particulars Unit Current Year Previous Year
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 work
(d) Total Production
3. Production as per Excise Records
4. Capacity Utilisation (in-house)
5. Finished Goods Purchassd
(a) Domestic Purchase of Finished Goods
(b) lmports of Finished Goods
(c) Total Finished Goods Purchased
6. Stock and Other Adiustments
(a) Change in Stock of Finished Goods
(b) Self / Captive Consumption (incl. samples etc.)
(c) Other Quantitative Adjustments, if any (wastage etc.)
(d) Total Adjustments
7. Total Available Quantity for Sale [2(d) + 5(c] + 6(d)l
8. Actual Sales
(a) Domestic Sales of Product - 31 - Domestic Sales of Traded
(c) Export Sale of Product
(d) Export Sale of Traded Product
(e) Total Quantity Sold
2. ABRIDGED COST STATEMENT (for each product with CETA Heading separately) Finished Stock Adjustmen t Materials Consumed (specify details as per Para 2A) Process Materials/Chemicals Utilities (specify details as per 2B) Direct Employees Cost Direct Expenses Consumable Slores and Spares Reoairs and Maintenance Qualiiy Control Expenses Research and Development Expenses Technical know-how Fee / Royalty DeDreciation/Amortisation Other Production Overheads lndustry Specific Operaling Expenses (specify details as per Para 2C) 1 2 3 5 6 7 I I 10 11 12 13 Total (1 to 13) Increase/Decrease in Work-in-Progress Less: Credits for Recoveries, if any Primary Packing Cost Cost of Production/Operations (14 + '15 to 17) Cost of Finished Goods Purchased Total Cost of Production and Purchases ( 18 + 19) lncrease/Decrease in Stock of Finished Goods Less: Self/Captive Consumption (incl. Samples, etc.)
Other Adjustments (if anY) 24 25 Cost of Production/Operation of Product Sold (20 + 21 to 23) Administrative Overheads 32 26 27 Secondary Packing Cost Selling and Distribution Overheads Cost of Sales before Interest (24 to 27) Finance Cost Cost of Sales (28 + 29) Net Sales Realisation (Net of Taxes and Outies) Margin lProfiu(Loss) as per Cost Accountsl (31 - 30) case the same produc;t has measure. separate cost statement shall be provided for different unit of measures.
The items of cost shown in the Proforma are mind the materiality of the item of cost in the product. The Proforma may be suitably modified to In case the company follows a pre-determined or standard costing system, the above cost statement shall reflect fiqures at actuals after adiustment of variances, if anv.
2A. Dotails of Materials Consumed Name of Product CETA Heading Doscription of Mato al Category UOM Curront Year Previous Ysar Quantity Rate per Unit (Rs.)
Amount Quantity Rate po.
Unit (Rs.)
Amount 1
2.
4.
5.
7.
8.
9.
10.
Category: Indigenous/ lmported/ Self Manufactured
28. Details of Utilities Consumed Name of Product CETA Heading Description of Material uoit Cun€nt Year Prcvious Year Quantity Rate per Unit (Rs.)
Amount Quantity Rate per Unit (Rs.)
Amount 1 33 o
3.
5.
o-
7.
6.
L
10.
2C. tletails of Industry Speciftc Operating Expenses Name of Product CETA Heading Description of Industry Specific Operating Expenses Current Year Previous Year Amount Amount 1
2.
4.
5.
7.
8.
9.
'10.
PART-C FOR SERVIGE SECTOR
1. QUANTITATIVE INFORMATION (for each service sepaftrtety) Name of Service Service Code (if applicable) Particulars Unit of Measurement Current Yeal Previous Year
1. AYailable Capacity
(a) lnstalled Capacity
(b) Capacity enhanced during the year, if any
(c) Total available Capacity
2. Actual Services Provided
(a) Own Services
(b) Services under contractual arrangements
(c) Outsourced Services -a+-
(d) Total Services
3. Total Services provided as per Service Tax Records
(a) Services rendered - Domestic
(b) Services rendered - Export
(c) Total Services Rendered
2. ABRIDGED COST STATEMENT (for each service separatety) Materials Consumed (specify details as per Para 2A) Utilities (specify details as per Para 2B) Direci Employees Cost Direcl Expenses Consumable Stores and Spares ReDairs and Maintenance Quality Control Expenses Research and Development Expenses Technical know-how Fee / Royalty Depreciation/Amortisation Other Overheads lndustry Specific Operating Expenses (specify details as per Para 2C) Total ('l to 12) Less: Credits for Recoveries, if any Cost of Services provided (13 - 14) Cost of Outsourced/Contractual Services Total Services available Less: Self/Captive Consumption Other Adjustments (if any) 20 2'l Cost of Services Sold (17 - 18 + '19) Administrative Overheads 35 o 22 Selling and Distribution Overheads 24 Cost of Sales before Interest (20+21+22) Finance Cost zc 26 Cost of Sales (23 + 24) Net Sales Realisation (Net of Taxes and Duties) 27 Margin [ProfiU(Loss) as per Cost Accountsl (26 - 25) NOTES:
1. Separate cost statement shall be prepared for each service
2.
The items of cost shown in the proforma are indicative and the same should 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.
4.
In case the company follows a pre-determined or standard costing system, the above cost stalement should reflect figures at actuals after adjustment of variances, if any.
24. Details of Matsrials Consumed Name of Service Service Code (if applicable) Description of Material Category UOM Current Year Provious Year Quantity Rate per Unit (Rs.)
Amount Quantity Rats per Unit (Rs.)
Amount 1
4.
5.
o,
7.
'10.
Category: Indigenous/ lmported/ Self Manufactured
28. Details of Utilities Consumed Name of Service Service code (if applicable) Description of Material uoM Currsnt Y€ar Previous Year Quantity Rate per Unit (RsJ Amount Quantity Rate per Unit (Rs') Amount 1 - 36- o
2.
5.
6.
7.
8.
9.
10.
2C. Details of Industry Specific Operating Expsnses Name of Service Service Code (if applicable) Description of Industry Specific Operating Expenses Current Year Previous Year Amount Amount
1.
c-
6.
7.
9.
10.
PART.D
1. PRODUCT AND SERVICE PROFITABILITY STATEi/IENT (for audited products/services) Sn o.
Particulars Currsnt Year Previous Year Sales Rs.
Cost of Sales Rs, Margin Rs, Sales Rs.
Cost of Sales Rs.
Margin Rs.
Product 1 Product 2 Product 3 . etc.
Service 1 Service 2 Service 3 . etc.
Total -37-
2. PROFIT REGONCILIATION (for the company as a whole) Sno. Particulans Current Year Rs.
Pr€vious Year Rs.
'l Profit or Loss as Der Cost Accountino Records
(a) For the audited product(s)/seNice(s)
(b) For the un-audited product(s)/service(s) Add: Incomes not considered in cost accounts (specify details) a) b) c) d) e) f) s) h) D D J Less: Expenses not considered in cost accounts (specify details) a) b) c) d) e) D s) h) D D 4 Difference in Valuation of stock between financial accounts and cost accounts
5. Other adjustments, if any o Protit or Loss as per Financial Accounts (excluding Other Comprehensive Income for companies following Ind AS) Note: Show abnormal wastages, expenses on strikes/lock-outs and any other items of expenses or incomes of abnormal nature etc. not considered in cost separately - 38-
3. VALUE ADDITION AND DISTRIBUTION OF EARNINGS (for the company as a whole)
4. FINANCIAL POSITION AND RATIO ANALYSIS (for the company as a whole) Sno. Particulars Current Year Rs.
Previous Year Rs.
Value Addition:
1 Gross Sales (excluding sales returns) Less: Excise duty, etc.
J Net Sales 4 Add: Exoort lncentives 5 Add/Less: Adjustment in Finished Stocks 6 Less: Cost of bought out inputs
(a) Cost of Materials Consumed
(b) Process Materials / Chemicals
(c) Consumption of Stores and Spares
(d) Utilities (e.9. power and fuel)
(e) Others, if any Total Cost of bought out inputs 7 Value Added 8 Add: Income from anv olher sources Add: Exceptional, Extra Ordinary and Other Comprehensive Income, if any 10 Earnings available for dislribution Distribution of Earninos to:
1 Employees as salaries and wages, retirement benefits.
etc.
2 Shareholders as dividend 3 Company as retained funds Government as taxes (specify) 5 Exceptional and Extra Ordinary Expenses, if any 6 Others, if any (specify) 7 Total distribution of eamings Sno. Particulars Units C urrent Year Previous Year A.
1 3 5 Financial Position Share Capital (see Note '1) Reserves and Surplus (see Note 1) Long Term Borrowings (see Note 'l)
(a) Gross Fixed Assets
(b) Net Fixed Assets (see Note 1)
(a) Current Assets - 39- o
(b) Less: Cunent Liabilities
(c) Net Current Assets Capital Employed (see Note 2) Net Worth (see Note 3) Financial P6dormance Value Added Net Revenue from Operations of Company Profit before Tax (PBT) Profitability Ratios PBT to Capital Employed (83/AO) PBT to Net Worth (83/47) PBT to Value Added (83/81) PBT to Net revenue from Operations Other Financial Ratios Debt-Equity Ratio Current Assets to Current Liabilities Valued Added to Nel Revenue from Ooerations Working Capital Ratios Raw Materials Stock to Consumption Stores and Spares to Consumption Finished Goods Stock to Cost of Sales o/o o/o Months Months Months 1) In this table, in case of companies to which Indian Accounting Standards apply:
a) Share Capital shall mean 'Equity Share Capital' b) Reserves and Surplus shall mean 'Other Equity.'
c) Long Term Borowings shall mean'Borrowing under Non-Curent Liabilities' o) NetFixeO Assets shall mean the sum total of 'Property, Plant and EquiPment', 'CaPital Work in Progress', 'Goodwill', 'Other intangible assets', 'lntangible assets under development' and 'Biological assets other than bearer Plants'.
2) Capital Employed means average of Net fixed assets (excluding effect of revaluation) plus Non-current investments and net current assets existing at the beginning and close of the financial year.
3) Net Worth is as defined under clause (57) of section 2 of the Companies Act, 2013.
5. RELATED PARw TRANSAGTIONS (for the company as a whole) Sn o.
Name and Address of the Related Party Name of the Product I Servico Naturc of Transactio n (Salo, Purchase stc.)
Quantit v Transfel Price Amount Normal Price Basis adopted to determine the Normal Price 1 4 5 40 1) Details should be fumished for each Related Party and Product /Service separately.
2) Details of Related Party transactions without indicating the Normal Price and the basis thereof shall be considered as incomplete information.
6. Reconciliation of Indirect Taxes (for the Company as a whole) NOTES:
Particulars Assessabl e Value Rs.
Excise Duty Rs.
Service Tax Rs.
Cess and Others Rs.
VAT Rs.
Duties/Taxes Payable Excise Duty Domestic Export Stock Transfers (Net) 4 Duty Free Clearance, Others etc.
5 Total Excise Duty (1 to 4) 6 Service Tax 7 VAT, CST etc.
8 Other State Taxes, if any I Total Duti€s / Taxes Payabls (5 to 8) Duties/Taxes Paid 10 CenvaWAT Credit Utilised - Inouts 11 CenvaWAT Credit Utilised - Gapital Goods 12 CenvaWAT Credit Utilised - lnout Services '13 CenvaWAT Credit Utilised - Others 14 Total (10 to 13) 15 Paid through PLA,/Cash 16 Total Duties/Taxes Paid (14 + 15) 17 Duties/Taxes Recovered 18 Difference between Duties/Taxes Paid and Recovered 19 I nteresUPenaltv/Fines Paid Note: Provide seDarate amounts in notes in respect of ltem 4 above.
SIGNATURE NAME SIGNATURE NAME SIGNATURE NAME o COST AUDITOR MEMBERSHIP NUMBER SEAL DATE Notes:
COMPANY SECRETARY/DIRECTOR MEMBERSHIP/DIN NUMBER STAMP DATE DIRECTOR OIN NUMBER STAMP DATE
(1) Wherever, there is any significant variation in the cunent year's figure over the previous year's tigure for any item shown under each para of the Annexure to the Cosl Audit Report, reasons thereof shall be given by the Cost Auditor.
(2)Wherever, duration ofthe cunent year orthe previous year is not twelve months, same shall be clearly indicated in the reoort.'
,40/2013-CL-Vl nT4,- AMARDEEP SINqH tsHATIA, Joint Secretary, Governmbnt of India Explanatory Memorandum: lt is certified that no person is being adversely affected by giving retrospective effect to this notification. The proposed amendments have been made on account of amendments made in the Companies (lndian Accounting Standards) Rules, 2015.
Note.- The principal rules were published in the Gazette of lndia, Extraordinary, Part ll, Section 3, Sub-section (i), vrde number G.S.R. 425 (E), dated the 30th June, 2014 and amended vrde number G.S.R. 01(E), dated the 31st December, 2014 and vide number G.S.R. 486 (E), Dated the 12rh June, 2015 and ylde number G.S.R. 695 (E), dated the 14h July, 20'16.
42