7 Companies Cost Audit Report Rules 2011

7/28/2019 7 Companies Cost Audit Report Rules 2011

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RM-IIM OF THE COST AUDIT REPORTrule 2 and rule 6]

having been appointed as Cost Auditor(s) under Section

panies Act, 1956 (1 of 1956) of ing its registered office at

company) (hereinafter referred to as the company), have audited the books of account prescribed under clause (d) of sub-section (1) of section 209 of the said Act, and other relevant records in respect of the

(mentions name/s of product group/s) for the period/year

financial year) maintained by the company and report, in addition to my/our observations andestions in para 2.

I/We have/have not obtained all the information and explanations, which to the best of my/our wledge and belief were necessary for the purpose of this audit.

In my/our opinion, proper cost records, as per Companies (Cost Audit Report) Rules, 2011 prescribed

er clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, have/have not been

ntained by the company so as to give a true and fair view of the cost of production/operation, costales and margin of the product/activity groups under reference.

In my/our opinion, proper returns adequate for the purpose of the Cost Audit have/have not been

ived from the branches not visited by me/us.In my/our opinion and to the best of my/our information, the said books and records give/do not give

information required by the Companies Act, 1956, in the manner so required.In my/our opinion, the said books and records are/are not in conformity with the Cost Accounting

dards issued by The Institute of Cost and Works Accountants of India, to the extent these are found

e relevant and applicable.In my/our opinion, company has/has not adequate system of internal audit of cost records which to

our opinion is commensurate to its nature and size of its business.

Detailed unit-wise and product/activity-wise cost statements and schedules thereto in respect of theuct groups/activities under reference of the company duly audited and certified by me/us are/are

kept in the company.

As required under the provisions of The Companies (Cost Audit Report) Rules, 2011, I/we have furnishedormance Appraisal Report, to the company, on the prescribed form.

Observations and suggestions, if any, of the Cost Auditor, relevant to the cost audit.

ed: this ____ day of _________ 20__ _________ (mention name of place of

ing this report) NATURE & SEAL OF THE COST AUDITOR (S)

MBERSHIP NUMBER (S)

TES:

Delete words not applicable.

If as a result of the examination of the books of account, the Cost Auditor desires to point out any

erial deficiency or give a qualified report, he shall indicate the same against the relevant para (i) to) only in the prescribed form of the Cost Audit Report giving details of discrepancies he has come

ss.

The report, suggestions, observations and conclusions given by the Cost Auditor under this paragraphl be based on verified data, reference to which shall be made here and shall, wherever practicable,

ncluded after the company has been afforded an opportunity to comment on them.



EXURE TO THE COST AUDIT REPORT

rule 2 and rule 6]

ENERAL INFORMATION:

CIN or GLN of the company:

Name of the company:

Registered office address:

Corporate office address:

E-mail address of the company:

Company's financial year to which the Cost Audit Report relates:

Name, address, membership number and e-mail of the Cost Auditor(s):

SRN Number and date of Filing of Form 23C with the Central Government:

Date of Board of Directors' meeting wherein the Annexure to the cost audit report were approved:

No. of Audit Committee meetings held by the company, and attended by the Cost Auditor during the

OST ACCOUNTING POLICY:

riefly describe the cost accounting policy adopted by the Company keeping in view the requirements of the

panies (cost Accounting Records) Rules, 2011, the Companies (Cost Audit Report) Rules, 2011, cost

unting standards and its adequacy or otherwise to determine correctly the cost of production/operation,

of sales, sales realization and margin of the product/activity groups under reference separately for eachuct/activity group. The policy should cover, inter alia, the following areas:

Identification of cost centres/cost objects and cost drivers.

Accounting for material cost including packing materials, stores and spares etc., employee cost, utilities

other relevant cost components.

Accounting, allocation and absorption of overheads

Accounting for Depreciation/Amortization

Basis for Inventory Valuation

tion of IFRS in Financial Accounting.

riefly specify the changes, if any, made in the cost accounting policy for the product/activity group(s) under



t during the current financial year as compared to the previous financial year.

bservations of the Cost Auditor regarding adequacy or otherwise of the Budgetary Control System, if any,

wed by the company.

RODUCT GROUP DETAILS (for the company as a whole)

Name of each Product Group

Manufactured Product Groups

c.

-Total (A)

Services Groups

c.

-Total (B)

ding Activities (Product

up-wise)

c.

-Total (C)

Other Incomes

Total Income as per Audited

ual Report (A+B+C+D)



TES:

or manufactured product groups, use the nomenclature as used in the Central Excise Act and Rules, as

licable.

or service groups, use the nomenclature as used in the Finance Act / Central Service Tax Rules, aslicable.

UANTITATIVE INFORMATION (for each product group separately)e of the Companye of the Product Group

e of the Products covered in the Product Group

ncial Year

Unitvailable Capacitynstalled Capacity

apacity enhanced during the year, if any

apacity available through leasing arrangements, if apacity available through loan license / third parties

otal available Capacity

ctual Productionelf manufactured

roduced under leasing arrangements

roduced on loan license / by third parties on job work otal Production

roduction as per Excise Recordsapacity Utilization (in-house)

tock Purchased for Tradingomestic Purchase

mports

otal Purchases

tock & Other Adjustmentshange in Stock of Finished Goods

elf / Captive Consumption (incl. samples etc.)ther Quantitative Adjustments, if any (wastage etc.)

otal Adjustments

otal Available Quantity for Sale [2(e) + 5(c) - 6(d)]

ctual Salesomestic Sales (manufacturing)

omestic Sales (trading)xport Sale (manufacturing)

xport Sale (trading)

otal Quantity Sold



RIDGED COST STATEMENT (for each product group separately)

Particulars

Materials Consumed (specify details)

a) Indigenous Purchased

b) Imported

c) Self Manufactured / Produced

Process Materials/Chemicals (specify)

Utilities (specify details)

Direct Employees Cost

Direct Expenses

Consumable Stores & Spares

Repairs & MaintenanceQuality Control Expenses

Research & Development Expenses

Technical know-how Fee / Royalty, if any

Depreciation/Amortization

Other Production Overheads

Total (1 to 12)

Add/Less: Work-in-Progress Adjustments

Less: Credits for Recoveries, if any

Primary Packing Cost

Cost of Production/Operations (12 + 13 to 17)

Increase/Decrease in Stock of Finished Goods

Less: Self/Captive Consumption (incl. Samples, etc.)

Other Adjustments (if any)

Cost of Production/Operation of Goods/Services Sold (17 + 18 to 20)

Administrative Overheads

Secondary Packing Cost

Selling & Distribution Overheads

Interest & Financing Charges

Cost of Sales (21 + 22 to 25)

Net Sales Realization (Net of Taxes and Duties)

Margin [Profit/(Loss) as per Cost Accounts] (27 - 26)

ES:

Separate cost statement shall be prepared for each product/activity group

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 product/activity group.

The Proforma may be suitably modified to meet the requirement of the industry/product/activity group.

In case the company follows a pre-determined or standard costing system, the above cost statement should reflect figures at

ls after adjustment of variances, if any.



PERATING RATIO ANALYSIS (for each product group separately)

Particulars

Ratio of Operating Expenses to Cost of SalesMaterials (incl. Process Materials) CostUtilities Cost

Direct Employees Cost

Direct ExpensesConsumable Stores & Spares

Repairs & Maintenance Cost

Depreciation / Amortization CostPacking Cost

Other Expenses

Stock AdjustmentsProduction Overheads

Administrative OverheadsSelling & Distribution OverheadsInterest & Financing Charges

Total

ROFIT RECONCILIATION (for the company as a whole)

Particulars

Profit or Loss as per Cost Accounting

ords(a) For the audited product groups

(b) For the un-audited product groupsAdd: Incomes not considered in cost

unts:

specify)

Less: Expenses not considered in cost

unts:

specify)



Add: Overvaluation of closing stock in

financial accounts

Add: Undervaluation of opening stock infinancial accounts

Less: Undervaluation of closing stock infinancial accounts

Less:: Overvaluation of opening stock infinancial accounts

Adjustments for others, if any (specify)

Profit or Loss as per Financial Accounts

ALUE ADDITION AND DISTRIBUTION OF EARNINGS (for the company as a whole)

pees in Lakh)

Particulars

Value Addition:Gross Sales (excluding returns)Less: Excise duty, etc.

Net Sales

Add: Export Incentives

Add/Less: Adjustment in Finished StocksLess: Cost of bought out inputs

ost of Materials Consumedrocess Materials / Chemicals

onsumption of Stores & Spares

tilities (e.g. power & fuel)thers, if any

l Cost of bought out inputs

Value Added

Add: Income from any other sourcesEarnings available for distribution

Distribution of Earnings to:Employees as salaries & wages, retirement benefits, etc.

Shareholders as dividend

Company as retained fundsGovernment as taxes (specify)

Others, if any (specify)



l distribution of earnings

INANCIAL POSITION AND RATIO ANALYSIS (for the company as a whole)

Particulars

Financial PositionPaid-up CapitalReserves & Surplus

Loans (secured & unsecured)

(a) Gross Fixed Assets

(b) Net Fixed Assets(a) Total Current Assets

(b) Less: Current Liabilities & Provisions(c) Net Current Assets

Capital Employed

Net Worth

Financial PerformanceCost of ProductionCost of Sales

Net Sales

Value AddedProfit before Tax (PBT)

Profitability RatiosPBT to Capital Employed (B5/A6)

PBT to Net Worth (B5/A7)PBT to Net Sales (B5/B3)

PBT to Value Added (B5/B4)

Other Financial RatiosDebt-Equity RatioCurrent Assets to Current Liabilities

Valued Added to Net Sales

Working Capital Ratios Net Working Capital to Cost of Sales excl. depreciation

Raw Materials Stock to Consumption

Stores & Spares to ConsumptionWork-in-Progress Stock to Cost of Production

Finished Goods Stock to Cost of Sales

es:apital Employed means average of net fixed assets (excluding intangible assets, effect of revaluation

ixed assets, and capital work-in-progress) plus net current assets existing at the beginning and close of

financial year.Net Worth means share capital plus reserves and surplus (excluding revaluation reserves) less

mulated losses and intangible assets.



RELATED PARTY TRANSACTIONS (for the company as a whole)

Name &

Address of

the Related

Party

TES:

etails should be furnished for each sale / purchase separately.

etails of Related Party transactions without indicating the Normal Price and the basis thereof shallonsidered as incomplete information.

RECONCILIATION OF INDIRECT TAXES (for the company as a whole)

Assessable

ticulars

Value



al Clearances

estic

ort

k Transfers (Net)

ers, if any

l

ies/Taxes Payable

ies/Taxes Paid

vat/VAT Credit Utilised - Inputs

vat/VAT Credit Utilised - Capital Goodsvat/VAT Credit Utilised - Input Services

vat/VAT Credit Utilised - Othersl

through PLA/Cash

l Duties/Taxes Paidies/Taxes Recovered

erence between Duties/Taxes Paid and Recovered

rest/Penalty/Fines Paid

SIGNATURE

NAME

COMPANY SECRETARY/DIRECTOR MEMBERSHIP/DIN NUMBER

STAMP

DATE

es:

herever, there is any significant variation in the current year's figure over the previous year's figure for any item

n under each para of the Annexure to the Cost Audit Report, reasons thereof shall be given by the Cost Auditor.

herever, duration of the current year or the previous year is not 12 (twelve) months, same shall be clearly

cated in the Report.

RM-IIIM OF THE PERFORMANCE APPRAISAL REPORT



e of Company: __________________________ Period of Report: ______________

icative list of areas to be covered in the report)

apacity Utilization Analysis

roductivity/Efficiency Analysistilities/Energy Efficiency Analysisey-Costs & Contribution Analysisroduct/Service Profitability Analysisarket/Customer Profitability Analysisorking Capital & Inventory Management Analysisanpower Analysis

mpact of IFRS on the Cost Structure, Cash-Flows and ProfitabilityApplication of Management Accounting Tools

Signature of the Cost Auditor(s)Membership Number(s)

es:

reas included in this form are indicative; these are to be included/excludedending upon the size/scale and type of operations, nature of the industry,agement requirements, etc.

requency of this report viz. half yearly/annual to be decided by the Companyagement.



233B of the

(mention name of the company)(mention registered office address of the

(mention



e) Accounting for by-products/joint-products, scarps, wastage etc.

g) Methodology for valuation of Inter-

h) Treatment of abnormal and non-rec

Other relevant cost accounting policy adopted by the Company



Names of Products/ Activities Net Sales (net of

included in the Product Group taxes, duties, etc.)

(Rs. Lakh)



From _________ To __________

Current Year Previous Year



Units Quantity



Units Current

Year

%%

%

%%

%

%%

%

%%

%%%

%

Current Year 1st Previous

Year



Current Previous

Year Year-1



Units Current

Year

Rs/LakhRs/Lakh

Rs/Lakh

Rs/Lakh

Rs/LakhRs/Lakh

Rs/LakhRs/Lakh

Rs/Lakh

Rs/Lakh

Rs/LakhRs/Lakh

Rs/Lakh

Rs/LakhRs/Lakh

%

%%

%

%%

%

Months

Months

MonthsMonths

Months



Name of the Nature of

Product / Transaction

Service Group (Sale,

Purchase,

etc.)

Excise Service

Duty Tax



SIGNATURE

NAME

DIRECTOR DIN NUMBER

STAMP

DATE







nit/Inter Company and Related Party transactions.

rring costs including classification of other non-cost items.

In case the Company has adopted IFRS, variations (if any) in treatment of cost accounting arising out of



Covered

under Cost

Audit

(Yes/No)





Rate Amount Rate per Unit (Rs.)

(Rs.) (Rs.)Current Previous

Year Year



Previous Previous

Year-1 Year-2

2nd Previous

Year



Previous

Year-2



Previous Previous

Year-1 Year-2



Quantity Transfer Amount Normal Basis

Price Price adopted to

determine

the Normal

Price

Cess &

Documents

7 Companies Cost Audit Report Rules 2011