ANNEXURE - COST AUDIT REPORT - Companies (Cost Audit Report) Rules, 2011

ANNEXURE TO THE COST AUDIT REPORT [See rule 2 and rule 6] 1. GENERAL INFORMATION: 1. CIN or GLN of the company: 2. Name of the company: 3. Registered office address: 4. Corporate office address: 5. E-mail address of the company: 6. Company's financial year to which the Cost Audit Report relates: 7. Name, address, membership number and e-mail of the Cost Auditor(s): 8. SRN Number and date of Filing of Form 23C with the Central Government: 9. Date of Board of Directors' meeting wherein the Annexure to the cost audit report were approved: 10. No. of Audit Committee meetings held by the company, and attended by the Cost Auditor during the ( sic .) 2. COST ACCOUNTING POLICY: (1) Briefly describe the cost accounting policy adopted by the Company keeping in view the requirements of the Companies (Cost Accounting Records) Rules, 2011, the Companies (Cost Audit Report) Rules, 2011, cost accounting standards and its adequacy or otherwise to determine correctly the cost of production/operation , cost of sales, sales realization and margin of the product/activity groups under reference separately for each product/activity group. The policy should cover, inter alia , the following areas: ( a ) Identification of cost centres/cost objects and cost drivers ( b ) Accounting for material cost including packing materials, stores and spares etc., employee cost, utilities and other relevant cost components ( c ) Accounting, allocation and absorption of overheads ( d ) Accounting for Depreciation/Amortization ( e ) Accounting for by-products/joint-products, 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 ) In case the Company has adopted IFRS, variations (if any) in treatment of cost accounting arising out of adoption of IFRS in Financial Accounting ( j ) 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/activity group(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. 3. PRODUCT GROUP DETAILS (for the company as a whole) Sl. No. Name of each Product Group Names of Products/Activities included in the Product Group Net Sales (net of taxes, duties, etc.) (Rs. Lakh) Covered under Cost Audit (Yes/No) A Manufactured Product Groups 1. 2. 3. 4. etc. Sub-Total (A) B Services Groups 1. 2. 3. 4. etc. Sub-Total (B) C Trading Activities (Product Group-wise) 1. 2. 3. 4. etc. Sub-Total (C) D Other Incomes E Total Income as per Audited Annual Report (A+B+C+D) NOTES: (1) For manufactured product groups, use the nomenclature as used in the Central Excise Act and Rules, as applicable. (2) For service groups, use the nomenclature as used in the Finance Act/Central Service Tax Rules, as applicable. 4. QUANTITATIVE INFORMATION (for each product group separately) Name of the Company Name of the Product Group Name of the Products covered in the Product Group Financial Year From ______ To _________ 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 ( 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 Utilization (in-house) 5. Stock Purchased for Trading ( a ) Domestic Purchase ( b ) Imports ( c ) Total Purchases 6. Stock Other Adjustments ( 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( e ) + 5( c ) - 6( d )] 8. Actual Sales ( a ) Domestic Sales (manufacturing) ( b ) Domestic Sales (trading) ( c ) Export Sale (manufacturing) ( d ) Export Sale (trading) ( e ) Total Quantity Sold 5. ABRIDGED COST STATEMENT (for each product group separately) Sl. No. Particulars Units Quantity Rate (Rs.) Amount (Rs.) Rate per Unit (Rs.) Current Year Previous Year 1 Materials Consumed (specify details) ( a ) Indigenous Purchased ( b ) Imported ( c ) Self-Manufactured/Produced 2 Process Materials/Chemicals (specify) 3 Utilities (specify details) 4 Direct Employees Cost 5 Direct Expenses 6 Consumable Stores Spares 7 Repairs Maintenance 8 Quality Control Expenses 9 Research Development Expenses 10 Technical know-how Fee/Royalty, if any 11 Depreciation/Amortization 12 Other Production Overheads 13 Total (1 to 12) 14 Add/Less: Work-in-Progress Adjustments 15 Less: Credits for Recoveries, if any 16 Primary Packing Cost 17 Cost of Production/Operations (12 + 13 to 17) 18 Increase/Decrease in Stock of Finished Goods 19 Less: Self/Captive Consumption (incl. Samples, etc.) 20 Other Adjustments (if any) 21 Cost of Production/Operation of Goods/Services Sold (17 + 18 to 20) 22 Administrative Overheads 23 Secondary Packing Cost 24 Selling Distribution Overheads 25 Interest Financing Charges 26 Cost of Sales (21 + 22 to 25) 27 Net Sales Realization (Net of Taxes and Duties) 28 Margin [Profit/(Loss) as per Cost Accounts] (27 - 26) NOTES : 1. Separate cost statement shall be prepared for each product/activity group 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 product/activity group. 3. The Proforma may be suitably modified to meet the requirement of the industry/product/activity group. 4. In case the company follows a pre-determined or standard costing system, the above cost statement should reflect figures at actuals after adjustment of variances, if any. 6. OPERATING RATIO ANALYSIS (for each product group separately) Sl. No. Particulars Units Current Year Previous Year-1 Previous Year-2 Ratio of Operating Expenses to Cost of Sales 1 Materials (incl. Process Materials) Cost % 2 Utilities Cost % 3 Direct Employees Cost % 4 Direct Expenses % 5 Consumable Stores Spares % 6 Repairs Maintenance Cost % 7 Depreciation/Amortization Cost % 8 Packing Cost % 9 Other Expenses % 10 Stock Adjustments % 11 Production Overheads % 12 Administrative Overheads % 13 Selling Distribution Overheads % 14 Interest Financing Charges % 15 Total % 7. PROFIT RECONCILIATION (for the company as a whole) Sl. No. Particulars Current Year 1st Previous Year 2nd Previous Year 1 Profit or Loss as per Cost Accounting Records ( a ) For the audited product groups ( b ) For the un-audited product groups 2 Add: Incomes not considered in cost accounts: ( a ) (specify) ( b ) ( c ) ( d ) ( e ) 3 Less : Expenses not considered in cost accounts: ( a ) (specify) ( b ) ( c ) ( d ) ( e ) 4 Add: Overvaluation of closing stock in financial accounts 5 Add: Undervaluation of opening stock in financial accounts 6 Less: Undervaluation of closing stock in financial accounts 7 Less : Overvaluation of opening stock in financial accounts 8 Adjustments for others, if any (specify) 9 Profit or Loss as per Financial Accounts 8. VALUE ADDITION AND DISTRIBUTION OF EARNINGS (for the company as a whole) (Rupees in Lakh) Sl. No. Particulars Current Year Previous Year-1 Previous Year-2 Value Addition: 1 Gross Sales (excluding returns) 2 Less: Excise duty, etc. 3 Net Sales 4 Add: Export Incentives 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 Spares ( d ) Utilities (e.g. power fuel) ( e ) Others, if any Total Cost of bought out inputs 7 Value Added 8 Add: Income from any other sources 9 Earnings available for distribution Distribution of Earnings to: 1 Employees as salaries wages, retirement benefits, etc. 2 Shareholders as dividend 3 Company as retained funds 4 Government as taxes (specify) 5 Others, if any (specify) Total distribution of earnings 9. FINANCIAL POSITION AND RATIO ANALYSIS (for the company as a whole) Sl. No. Particulars Units Current Year Previous Year-1 Previous Year-2 A. Financial Position 1 Paid-up Capital Rs/Lakh 2 Reserves Surplus Rs/Lakh 3 Loans (secured unsecured) Rs/Lakh 4 ( a ) Gross Fixed Assets Rs/Lakh ( b ) Net Fixed Assets Rs/Lakh 5 ( a ) Total Current Assets Rs/Lakh ( b ) Less: Current Liabilities Provisions Rs/Lakh ( c ) Net Current Assets Rs/Lakh 6 Capital Employed Rs/Lakh 7 Net Worth Rs/Lakh B. Financial Performance 1 Cost of Production Rs/Lakh 2 Cost of Sales Rs/Lakh 3 Net Sales Rs/Lakh 4 Value Added Rs/Lakh 5 Profit before Tax (PBT) Rs/Lakh C. Profitability Ratios 1 PBT to Capital Employed (B5/A6) % 2 PBT to Net Worth (B5/A7) % 3 PBT to Net Sales (B5/B3) % 4 PBT to Value Added (B5/B4) % D. Other Financial Ratios 1 Debt-Equity Ratio % 2 Current Assets to Current Liabilities % 3 Valued Added to Net Sales % E. Working Capital Ratios 1 Net Working Capital to Cost of Sales excl. depreciation Months 2 Raw Materials Stock to Consumption Months 3 Stores Spares to Consumption Months 4 Work-in-Progress Stock to Cost of Production Months 5 Finished Goods Stock to Cost of Sales Months Notes: (1) Capital Employed means average of net fixed assets (excluding intangible assets, effect of revaluation of fixed assets, and capital work-in-progress) plus net current assets existing at the beginning and close of the financial year. (2) Net Worth means share capital plus reserves and surplus (excluding revaluation reserves) less accumulated losses and intangible assets. 10. RELATED PARTY TRANSACTIONS (for the company as a whole) Sl. No. Name Address of the Related Party Name of the Product/Service Group Nature of Transaction (Sale, Purchase, etc.) Quantity Transfer Price Amount Normal Price Basis adopted to determine the Normal Price 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 NOTES: (1) Details should be furnished for each sale / purchase separately. (2) Details of Related Party transactions without indicating the Normal Price and the basis thereof shall be considered as incomplete information. 11. RECONCILIATION OF INDIRECT TAXES (for the company as a whole) Particulars Assessable Value Excise Duty Service Tax Cess Others VAT Total Clearances Domestic Export Stock Transfers (Net) Others, if any Total Duties/Taxes Payable Duties/Taxes Paid Cenvat/VAT Credit Utilised - Inputs Cenvat/VAT Credit Utilised - Capital Goods Cenvat/VAT Credit Utilised - Input Services Cenvat/VAT Credit Utilised - Others Total Paid through PLA/Cash Total Duties/Taxes Paid Duties/Taxes Recovered Difference between Duties/Taxes Paid and Recovered Interest/Penalty/Fines Paid SIGNATURE SIGNATURE SIGNATURE NAME NAME NAME COST AUDITOR (S) COMPANY SECRETARY/DIRECTOR DIRECTOR MEMBERSHIP NUMBER (S) MEMBERSHIP/DIN NUMBER DIN NUMBER SEAL STAMP STAMP DATE DATE DATE Notes: (1) Wherever, there is any significant variation in the current year's figure over the previous year's figure for any item shown under each para of the Annexure to the Cost Audit Report, reasons thereof shall be given by the Cost Auditor. (2) Wherever, duration of the current year or the previous year is not 12 (twelve) months, same shall be clearly indicated in the Report.