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TMI BlogCost Accounting Records (Electronic products) Rules, 2001.X X X X Extracts X X X X X X X X Extracts X X X X ..... egate value of the machinery and plant installed wherein, as on the last date of the preceding financial year, does not exceed the limits as specified for a small scale industrial undertaking under the provisions of the Industries (Development and Regulation) Act, 1951 (65 of 1951); and (b) the aggregate value of the turnover made by the company from sale or supply of all its products during the preceding financial year does not exceed ten crore rupees. 3. 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 1st day of April, 2001 keep proper books of account containing, inter-alia, the particulars specified in Schedule I annexed to these rules and Proformae A,B,C and D, relating to the utilization of materials, labour and other items cost in so far as they are applicable to the manufacture or production of Electronic products and components referred to in rule 2: Provided that if the said company is manufacturing any other product(s) or is engaged in other activities in addition to manufacture of Electronic products and components thereof, the particulars relating to utilization of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... player, digital video compact disc player, radio receiver, tape recorder & combination, electronic watch and electronic clock, etc. 2. Industrial electronics including all control instrumentation and automation equipment. 3. Computer including personal computer, laptop, note book, server, workstations, supercomputers, data processing equipment and peripherals like monitors, keyboards, disk drivers, printers, digitizers, SMPs, modems, networking products and add-on cards. 4. Communication and broadcasting equipment including cable television equipment. 5. Strategic electronics and systems such as navigation and surveillance systems, radars, sonars, infra-red detection and ranging system, disaster management system, internal security system, etc. 6. Other electronic component and equipment such as picture tube, printed circuit board, etc. SCHEDULE I (See rule 3) 1.1. BOUGHT OUT MATERIALS AND COMPONENTS: (1) The proper records shall be maintained showing all receipts, issues and balances in quantities and values of each item of raw materials and components required for the manufacture of items referred to in rule 2. The cost of raw materials and components bought out sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption of consumable stores, small tools and machinery spares shall be charged to the relevant cost centre or department on the basis of actual issues. (5) The proper records shall be maintained showing the quantity and value of wastage, spoilage, rejections and losses of raw materials, whether in transit, storage, manufacture or at any other stage. The method followed for adjusting the above losses as well as the income derived from the disposal of rejected and waste materials including spoilage, if any, in determining the cost of product, shall be indicated in the cost records. Any abnormal wastage or spoilage or rejection shall be indicated distinctly and separately along with reasons thereof. The records shall also be maintained to indicate the value of raw materials and components, finished and semi-finished, which have not moved for more than 12 months. (6) Where any credit under Modified Value Added Tax (MODVAT) or any other benefits of the nature of MODVAT credit under the Central Excise Act, 1944 (1 of 1944), are available on any item of material, the cost of such material should be shown after adjusting such credit or benefits. (7) If any of the materials purchased i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther products shall be on equitable and reasonable basis and applied consistently. 4. UTILITIES: (1) Power - Where power is purchased, proper records shall be maintained for the units and cost of power consumed for the production of Electronic products and components thereof in different cost centres or departments. Where power is generated by the company itself, adequate records, showing all elements of cost shall be maintained to show the cost of power generated and consumed for the production of the Electronic products and components thereof in different cost centres or departments.Records shall also indicate installed capacity, number of units generated losses and consumption in each cost centre or department separately. Where power is generated and supplied by any other unit of the company to the Electronic products plant, adequate records shall be maintained to indicate the quantity and cost of power so supplied. The cost of power allocated to the production or manufacture of Electronic products and components thereof shall be on a reasonable basis and applied consistently. The records should state clearly the measures taken on conservation of energy and its corresponding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation charged in the cost records, against any individual item of asset shall not, however, exceed the original cost of the respective asset. 7. OTHER OVERHEADS: (1) The proper records shall be maintained for the product under reference showing the various items of expenses comprising the other overheads. These expenses shall be analyzed, classified and grouped according to functions, namely, works, administration, selling and distribution. (2) Where the company is manufacturing product(s) other than Electronic products and components thereof, the records shall clearly indicate the basis followed for apportionment of the common overheads including head office expenses of the company to such product(s) and Electronic products and components thereof, including capital works. Where certain expenses forming part of overheads can be identified with a particular activity or a product, such expenses shall be first segregated and charged to the relevant activity or product and thereafter the residue expenses under the above categories of overheads shall be apportioned on a reasonable and equitable basis and applied consistently. The overheads chargeable to capital works shall be ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded from the income arising from the sale of electronic products. 10. QUALITY CONTROL: The adequate records shall be maintained to indicate the expenses incurred in respect of quality control department or cost centre for product under reference. Where these services are also utilized for other products of the company, the basis of apportionment to Electronic products and to other products shall be on equitable and reasonable basis and applied consistently. 11. INTEREST: The proper records shall be maintained for interest charges paid. The amount of interest shall be allocated or apportioned to the product covered by these rules and other activities on a reasonable and equitable basis and applied consistently. The basis of further charging of the share of the interest to the various types of such products shall also be on a reasonable and equitable basis and applied consistently. The basis of such allocation or apportionment shall be spelt out clearly in the cost records or statements. 12. EXPENSES OR INCENTIVES ON EXPORTS: The proper records showing the expenses incurred on the export sales, if any, of the Electronic products and components shall be separately maintain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) If the company is operating more than one plant or factory, separate cost statements as specified above shall be prepared in respect of each plant or factory. 17. PRODUCTION RECORDS: Quantitative records of all finished goods, whether packed or unpacked, showing production, issues for sales and balances of different types of the product under reference shall be maintained. 18. RECONCILIATION OF COST AND FINANCIAL ACCOUNTS: (1) The cost statements shall be reconciled with the financial statements for the financial year specifically indicating the expenses or incomes not considered in the cost records or statements so as to ensure accuracy and to adjudge the profit of the product under reference with the overall profit of the company. The variations, if any, shall be clearly indicated and explained. (2) A statement showing the total expenses incurred and income received by the company under different heads of accounts and the share applicable to the other products and the products under reference shall be prepared and reconciled with the financial statement. 19. ADJUSTMENT OF COST VARIANCES: Where the company maintains cost records on any basis other than actual such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding anti dumping measures under Article VI of GATT 94. 21. POLLUTION CONTROL: Expenditure incurred by the company on various measures to protect the environment like effluent treatment, control of pollution of air, water, etc., should be properly recorded. 22. HUMAN RESOURCES DEVELOPMENT: Expenditure incurred by the company on the human resources development activity shall be recorded separately. PROFORMA `A' Name of the company : Name and address of the factory : Statement showing the cost of Utilities like Power, Steam, Water, etc., produced and consumed during the year/period : A. Quantitative Information: Serial number Particulars Current Year (unit) Previous Year (unit) 1. Installed capacity 2. Quantity produced 3. Capacity utilisation 4. Quantity recirculated 5. Quantity purchased 6. Self-consumption including other losses 7. Net units consumed B. Cost Information : Serial number Particulars Quantity Rate (Rupees) per unit Amount (Rupees) Cost Per Unit (Rupees) Current Year Previous Year A 1. Materials(specify) (a) (b) (c) 2. Utilities (specify) (a) (b) (c) 3. Consumable stores and spares 4. Salaries and wages 5. Repai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Particulars Current Year Previous Year 1. Installed Capacity 2. Quantity Produced 3. Capacity Utilization 4. Quantity sold (a) Domestic (b) Export 5. Captive consumption 6. Closing stock 7. Opening stock B. Financial Information: Serial Number Particulars Quantity Rate Amount Per(in Unit) Rupees per unit (Rupees) Current Year (Rupees) Previous Year (Rupees) 1. Material cost : (itemwise covering 80% of value) (a) Raw materials (specify major items) (b) Manufactured component (c) Bought out component (d) Others (e) Total(a to d) 2. Direct Wages and Salaries 3. Outside job charges 4. Utilities (a) Power (b) Others (specify major items) (c) Total(a and b) 5. Consumable Stores and spares 6. Depreciation 7. Repairs and maintenance 8. Technical know-how fees 9. Research and development 10. Quality control 11. Other works overhead 12. Administrative overhead 13. Total(1 to 12) 14. Stock Adjustment (Work in progress) 15. Less: Credit for scraps 16. Cost of production (13-15) 17. Stock Adjustment (finished products) 18. Net cost of production 19. Packing Cost 20. Selling and distribution expenses (a) Salaries a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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