TMI BlogCost Accounting Records (Electricity Industry) Rules, 2001.X X X X Extracts X X X X X X X X Extracts X X X X ..... (g) any other source of energy; (2) Transmission and bulk supply of electricity; (3) Distribution and retail supply of electricity : Provided that these rules shall not apply to a company,- (a) the aggregate 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 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 or activities during the preceding financial year does not exceed ten crores of 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 commencement of these rules , keep proper books of account relating to utilisation of materials, labour and other items of cost in so far as they are applicable to any of the activities referred to in rule 2. The books of account, so maintained, shall contain, inter-alia , the particulars specified in the Schedule annexed to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. MATERIALS : (1) The proper records shall be maintained showing all receipts, issues and balances both in quantities and values of all major fuel such as coal, lignite, gas, naphtha, bagasse alongwith their calorific values and other materials used in the generation, transmission, distribution or supply of electricity. These records shall contain such details so as to enable the company to determine the quantity and cost of receipt (including all direct charges upto the works in respect of major materials/fuels), issues and balances in quantity as well as value of each item of all such materials. The basis on which said cost of issue and consumption have been calculated shall be indicated in the cost records and followed consistently. The records shall indicate quantity and expenses incurred for loading and unloading, transport, handling, grinding charges etc. The quantity and cost of transportation of material by different modes of transportation viz. road, conveyer, rail, pipeline, rope way etc shall be indicated separately. In the case of imported materials/fuels proper records of quantity and value shall be maintained for each item showing FOB value, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stores/spares should be shown after adjusting such credit or benefits. 2. SALARIES AND WAGES : (1) The proper records shall be maintained to show the attendance and earnings of all employees function-wise or activity-wise and the works on which they are employed. The records shall also indicate the following separately for each such function or activity: (a) piece rate wages (wherever applicable); (b) incentive wages, either individually or collectively as production bonus or under any other scheme based on output; (c) overtime wages; (d) earnings of casual or contractual labour; (e) bonus or gratuity, statutory as well as other; (f) contribution to superannuation scheme; and (g) any other earnings of the nature specified in (a) to (f) above. (2) The records shall be maintained in such a manner as to enable the company to furnish necessary particulars under this head in Proformae A, B, C, D, E and F of Schedule I annexed to these rules. The records may be maintained to book these expenses function-wise or activity-wise. Where the employees work in such a manner that it is not possible to iden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apportionment of such expenses to other products or activities shall be on equitable and reasonable basis and applied consistently. 4. UTILITIES : (1) The proper records showing quantity and cost of water collection, water treatment, ash handling, effluent treatment etc. shall be maintained by the company for the activities under reference. (2) The cost statements for each utility shall be maintained separately in respect of each such utility in Proforma 'A'. 5. WORKSHOP OR REPAIRS AND MAINTENANCE OR TOOL ROOMS: (1) The proper records showing the expenditure incurred by the workshop or tool room under different heads and on repairs and maintenance shall be maintained function-wise or activity-wise. The amount incurred on schedule/annual maintenance shall be separately recorded under the head preventive maintenance. The records shall also indicate the basis of charging the workshop or tool room or repairs and maintenance expenses to different activities. Where maintenance work is done by direct workers of any of the generation, transmission, distribution supply department, the wages and salaries of such workers shall be treated as direct expenses of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such amount of excess or lower depreciation shall be indicated clearly in the cost records. The cost records shall also show the effect of such excess or lower depreciation, as the case may be, on the per unit cost of activity. 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. LEASING CHARGES: In the case of leasing arrangements, proper record shall be maintained showing details of terms and conditions, leasing charges paid or payable as well as received or receivable. 8. OTHER OVERHEADS: (1) The proper records shall be maintained for the activities under reference showing the various items of expenses comprising the other overheads. These expenses shall be analyzed, classified and grouped according to functions, namely, operation, administration and sales for each activity under reference. (2) Where the company is manufacturing products other than the products or activities under reference, the records shall clearly indicate the basis followed for apportionment of the common overheads including head office expenses of the company to such products and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the costs attributable to the output or process can be separately identified; (ii) the technical feasibility of the output or process has been demonstrated; (iii) the management of the enterprise has indicated its intention to produce and market or use the output or process; (iv) there is a reasonable indication that current and future research and development costs to be incurred on the project together with expected production, administrative and selling costs are likely to be more than covered by related future revenues or benefits; and (v) adequate resources exist or are reasonably expected to be available to complete the project and market the output or process. (3) The expenses incurred by the Research and Development Department for providing technical know-how to outsiders shall be recorded separately and excluded from the cost of activities under reference. The amount recovered for providing technical know-how to outsiders shall also be indicated separately and excluded from the income arising from the sale of outputs or activities under reference. 11. INTEREST: The proper records shall be maintained for money borrowed for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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