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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 332] NEW DELHI, FRIDAY, DECEMBER 27, 1974/PAUSA 6, 1896

Separate paging is given to this Part in order that it may be filed

as a separate compilation

MINISTRY OF LAW, JUSTICE ft COMPANY AFFAIRS (Department of Company Affairs)

NOTIFICATION

New Delhi, the 24th December 1974

COST ACCOUNTING RECORDS (INFANT MILK FOODS) RULES, 1974

G.S.R. 701(E).—In exercise of the powers conferred by sub-section (1) of Section 642, read with clause (d) of sub-section (1) of Section 209 of the Com- panies Act, 1966 (1 of 1956), the Central Government hereby makes the following rules, namely: —

l. Short title and commencement.—(1) These rules may be called the Cost Accounting Records (Infant Milk Foods) Rules, 1974.

(2) They shall come into force on the 1st day of January 1975.

2. Application.—They shall apply to every company engaged in the production or manufacture of Infant Milk Foods.

3. Definition.—In these rules, "Infant Milk Food" includes all types of milk food intended for the routine, complementary or supplementary food of infants and children up to the age of five years and other types of modified milk foods for infants which are intended for the feeding of infants and children during the treatment of gastro-intestinal disorders.

4. 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 com- mencement of these rules, keep proper books of account containing inter-alia the particulars specified in Schedules I and II annexed to these rules relating to the

( 2 5 4 3)

utilisation of materials labour and other items of cost in so far as they are appli- cable to infant milk foods.

Provided that if the said company is manufacturing any other products or "en- gaged in other activities in addition to infant milk foods, particulars relating to the utilisation of materials, labour and other items of cost in so far as they are applicable to such other products or activities shall not be included in the cost of the items referred to in rule 2.

(2) The books of account referred to in sub-rule (1) shall be kept in such a way as to make it possible to calculate the cost of production and cost of sales of the items referred to in rule % during a financial year (hereinafter referred to as the relevant period) from the particulars entered therein. Such books of account and the proformae specified in Schedule II shall be completed within ninety days from the end of the financial year of the company to which they relate.

(3) It shall be the duty of every person referred to in sub-section (6) and sub-section (7) of section 209 of the Companies Act. 1956 (1 of 1956) to take all reasonable steps to secure compliance by the company to which the rules apply with the provisions of sub-rules (1) and (2). in the same manner as they are liable to maintain financial accounts required under sub-section (I) of section 209 of the said Act.

5. Penalty.—If a company contravenes the provisions of rule 4, the company and every officer thereof who is in default including the persons referred to in sub-rule (3) of that rule shall be punishable with fine which may extend to five hundred rupees and where the contravention is a continuing owe, with a further fine which may extend to fifty rupees for every day after the first during which such contravention continues.

SCHEDULE I

(Sec rule 4)

I. Materials

(a) Raw Materla-lsj—(i) Proper records shall be maintained showing the quantity and cost of wet milk procured at the different collection centres. De- tails showing the premiums paid for higher fat content in milk and deductions made for lower fat content shall also be kept. The cost records for wet mjik shall contain such details as to enable the company to determine the quantity and cost of receipts (including all direct charges incurred upto the works), issues and balances. The data shall be maintained in such a manner as to enable the company to furnish the necessary particulars in proforma 'a' of Schelule II.

The rate charged for wet milk consumed for the manufacture of infant milk foods, skimmed milk powder and for any other products shall be based on actual fat content of the relevant quantity of milk consumed for the manufacture of such products.

Where the company operates its own transport such as tankers for the trans- portation of wet milk, log books and other detailed records shall be maintained to furnish the necessary particulars in Annexure I to this Schedule or in any form as near thereto, aa practicable.

(ii) If any other raw materials such aa skimmed milk powder, whole milk powder, butter milk powder or maize starch are used for the production of infant milk foods, proper records showing the quantity and cost of receipts including all direct charges incurred upto the works, issues and balances shall be maintained in such a manner as to enable the company to furnish the necessary particulars contained in Annexure II to this Schedule or in any form as near thereto, as practicable. In the case of imported skimmed milk powder allotted by the Na- tional Dairy Development Board records of receipts, issues and balances shall be shown separately. The records shall also show the receipts, issues and balances of skimmed milk powder, sugar and other materials used for production of infant milk food and for other products manufactured by the company separately.

(b) Process Materials*—Proper records shall be maintained to show the re- "relpta, issues and balances both In quantities and costs of each item of process ^material such as sugar, vitamins, iron and other chemicals. The costs shall in- clude all direct charges incurred upto works, wherever specifically incurred. The Issues shall be properly identified with the departments, cost centres and produts.

(c) Consumable stores, small tools, machinery spares, etc.—(i) Proper records shall be maintained to show the receipts, issues and balances both in quantities and cost of each item of consumable stores, small tools and machinery spares. The costs shown shall include all direct charges upto works, wherever specifically in- curred.

(ii) In the case of consumable stores and small tools, the costs of which are insignificant, the company may, if it so desires, maintain such records for the main groups of such items.

(iii) The cost of issues of consumable stores, small tools and machinery spaces shall be charged to the relevant heads of account such as repairs to plant and machinery and repairs to building. Materials consumed for capital works such -as addition to buildings, plant and machinery and other assets shall be shown "under the relevant capital heads.

(d) Wastages, spoilages, rejections, losses etc., of materials.—Proper records shall be maintained showing the quantity and cost of wastages, spoilages, rejec- tions, and losses of wet milk and other raw materials, process materials, consum- able stores, small tools and machinery spares, whether In transit, storage or during manufacture or for any other reasons. Separate records shall also be maintained for the tailings of milk powder declared unfit for processing. The method follow- ed for adjusting the above losses as well as the income derived from the disposal of rejected and waste materials including scrap, if any, in determining the cost •of the product shall be indicated in the cost records.

II. Salaries and Wages

(a) Proper records shall be maintained to show the attendance and earnings •of all employees and the departments or cost centres and the work on which they are employed. The records shall also indicate separately:

(i) overtime wages earned;

(ii) piece-rate wages earned;

(iii) incentive wages earned, either individually or collectively as produc- tion bonus or under any other scheme based on output;

(iv) earning of casual labour.

(b) Idle time shall be separately recorded under classified headings indicating t he reasons therefor. The method followed for accounting of idle time payments in determining the cost of the products shall be disclosed in the cost records.

(c) Any wages and salaries allocable to capital works such as additions to plant and machinery, buildings, or other fixed assets shall be accounted for under the relevant capital heads.

TIL Service Department Expenses

Detailed records shall be maintained to indicate expenses incurred for each Service department or cost centre. These expenses shall be apportioned to other service and production departments on an equitable basis.

IV. Utilities

(a) Steam.—Where steam Is raised by the Infant milk food factory of the company, proper records showing the quantity and cost' of steam raised a'.id con- sumed for the production of infant milk food shall be maintained, in such detail as may enable the company to furnish the necessary particulars in Annexure III to this schedule. The cost of steam consumed by the infant! milk food factory and other units of the company shall be calculated on a reasonable basis and applied

Where steam is generated and supplied by any other unit of the company to the infant milk food factory, the cost of steam so supplied shall be chargect to the infant milk food activity on a reasonable basis and applied consistently.

V. W&rkshop/Repairs and Maintenance

Proper records showing the expenditure incurred by the workshop under different heads and on repairs and maintenance by the various departments and cost centres shall be maintained. The records shall also indicate the basis of. charging the workshop expenses to different departments or cost centres. Expen- diture on major repair works from which benefit' is likely to accrue for more than one financial year shall be shown separately in the cost records indicating the method of its accounting in determining the cost of infant milk foods manufactur- ed during the relevant period.

Expenditure incurred on works of a capital nature shall be capitalised. The cost of such jobs shall include the expenditure on material, labour and a share of the overheads. The jobs carried out by the workshop of the infant¹ milk food unit for other units of the company and vice versa shall be charged on a reasonable basis and applied consistently.

VI. Depreciation

(a) Proper records shall be maintained showing the cost and other particulars of fixed assets in respect of which depreciation is to be provided. These records shall inter-alia indicate the cost of each item of asset including installation charges, if any, the date of installation and the rate of depreciation. In respect of ,those assets, the original cost of acquisition of which cannot be ascertained without an unreasonable expenditure or delay, the valuation shown in the books on the first day of the financial year beginning on or after the commencement of these rules shall be taken as the opening balance.

(b) The basis on which depreciation is calculated and allocated to the various departments and cost centres and to the products shall be clearly indicated in the records. Depreciation chargeable to the different departments and cost centres shall not' be less than the amount of depreciation chargeable in accordance with the provisions of sub-section (2) of section 205 of the Companies Act, 1956 (1 of 1956) and shall relate to plant, machinery and other fixed assets utilised in such departments and cost centres. In case the amount of depreciation charged in the enst records in anv financial year is higher than the amount of depreciation chargeable under the aforesaid provisions of the Companies Act, the amount so charged in excess shall be indicated clearly in the cost records. The cumulative depreciation charged in the cost records afiainst any Individual item of asset shall not, however, exeed the original cost of the respective asset.

VII. Overheads

^ Records showing the expenses incurred on the export of infant milk foods, if any, shall be separately maintained So that the cost of export sales can be de- termined correctly The expenses Incurred on exports, as well as any export incentives earned shall be reflected in the cost statements relating to export sales

VIII By-Products

Proper records shall be maintained for each Item of by-product such as cream extracted showing the receipts, issues and balances both m quantity and value The basis adopted for valuation of the by-products shall be equitable and con- sistent Records indicating the actual sales realisation of by-products shall be maintained

IX. Packing

Proper records shall be maintained showing the quantity and cost of wnous packing materials such as tins, cartons and for wages and other expenses incurred in respect of different sizes of packs adopted for marketing of infant milk foods Where such expenses a ie incurred in common for other products including infant milk foods, the basis of apportioning the expenses between the relevant products shall be clearly indicated in the cost records and applied consistently Wastage, spoilages, rejections and losses of packing materials if any, shall be indicated* separately m the records The method adopted for adjusting these losses and the income denved from disposal of rejected and waste materials", if any in determin- ing the cost of Infant Milk Foods shall be indicated in the cost records

Detailed records of the expenses incurred on export packing shall also be kept separtely and exhibited in the relevant cost statements for exports

X. Work-m-Progress and Finished, Goods

The method followed for determining the cost of work-in-progress and Iimshcd goods stock shall be indicated in the cost records so as to reveal the cost elements that have been taken into account in such computation The method adopted shall t>e followed consistently

XI Cost Statements

Separate cost statements shall be maintained in respect of each brand of infant -milk foods other than modified milk foods for infants and showing the actual cost of production and cost of sales in proformae 'B' and 'C' respectively Cost state merits1 m proiormu. 'D' shall be maintained for the basic ingredients used for the manufacture of modified milk foods for infants by whatever name they may be nw H ^S s t^m e" s usha¹¹ be maintained in respect of each brand of modified milk foods for infants showing the actual cost of production and cost of sales in p r^⁰™af f a n^ F respectively Exports of infant milk foods and modified milk foods for infants shall be exhibited separately ln cost statements 'C and 'F •thSPmtern ^ k ³ a me e x c l u d ed f r om t he c o st statements meant for sales in

XII, Reconciliation of Cost and Financial Accounts

The cost records =hall be reconciled preferably penodicslly with the financial tooks of account so as to ensuie accuracy Variations 1"any shall be clearly 111 dicated and explained The period for winch such reconciliation is effected shall not exceed the period of the financial year of the company The reconciliation sha'l be done in such a manner that the profitability of the product under refeieic = can be correctly adjudged and reconciled with the overall profits of the company

A statement showing the total expenses incurred by the company and the share

IS cSSn feffi A S S ^be maintained L Prof™ ^ ^ ^ o i:

XIII. Adjustment of Cost Variances

Where the company maintains cost records on any basis other than actuals, such as standard costing, the records shall indicate the procedures followed by the company in working out the cost of the products under such system. The method followed for adusting the cost variances in determining the actual cost of the product shall be indicated clearly in the cost records. The cost variances shall be shown against the relevant head.3 in the respective proformae of Schedule II. The reasons for the variances shall be detailed tei the cost records.

XIV. Records of Physical Verification

Records of physical verification shall be maintained in respect of all items held in stock such as raw materials, process materials, packing materials, consumable stores, machinery spares, chemicals, fuels, finished goods and fixed assets. Rea- sons for shortages/surpluses arising out of such verification and the method follow- ed for adjusting the same in the cost of the products shall ,be indicated in the records.

XV. Inter-Company Transactions

In respect of supplies made or services rendered by the company to its hold- ing company or a subsidiary or a company in the same group or a company in which a Director of the company is also, a Director in such companies and vice- versa, records shall be maintained showing contracts entered into, agreements or understandings reached, in respect of:—

(a) purchase and sale of raw materials and process materials;

(b) utilisation of plant facilities;

(c) supply of utilities; and

(d) administrative, technical, managerial and any other consultancy ser-

vices.

These records shall indicate the basis followed for arriving at the rates charged between them so as to enable determination of the reasonableness of the rates charged or paid for such services,

XVI. Statistical Records

Data such as percentage of fat and solid non fat contained in wet milk pur- chased and consumed shall be maintained. Data regarding plant utilisation in- dicating the reasons for stoppages under classified headings shall also be kept. The overall fat and solid non fat contents of the milk based raw materials con- sumed in production during the year shall be reconciled with the sold non fat and fat contents of the total output of infant milk foods, skimmed milk powder and cream.

Records as will enable the company to identify the capital employed separate- ly for the infant milk food activity shall also be maintained. Fresh investments and fat contents of the total output of Infant milk foods skimmed milk powder on fixed assets that have not contributed to the production during the relevant period shall also be indicated in the records.

Statistical and other records maintained in accordance with the provisions of this Schedule and Schedule II shall be such as to enable the company to exercise, as far as possible, control over the various operations and costs with a view to- achieve optimum economies in costs and to provide the necessary data required by the cost Auditor to suitably report on all the points referred to in the Cost Audit (Report) Rules, 196B as amended from time to time.

ANNEXUKB I

Name of the Company

Name and address of tho Infant Milk Food Factory

Statement showing the operating cost of Milk Tankers for the year ending

(i) No. of tankers

(ii) Total No. of Kilometres covered for transporting wet milk

(iii) Total weight of wet milk transported

(iv) Total Tonne Kilometres

Cost per tonne

Kilometre

Rate per

Particulars

Amount

Qty. (Units)

unit¹ Rs.

Current Previous year year Ra. RH.

2

4

3

TOTAL

NET COST

ANNEXUKE II

Name of the Company

Name and address of the Infant Milk Food Factory

Statement showing the cost of raw materials other than wet milk used In the manufacture of in- fant milk foods during the year

Cost

Cast Direct

Particulars

Expenses

Rate per unit

Qty. (Units)

(Rs.)

including all direct expenses (Rs.)

(Re.)

CRe.)

2

I

6

3

4

5

Purchases during the year:

(i) (a) Skimmed Milk powder (Imported)

(b) Skimmed Milk powder (Indigenous)

(ii) Butter Milk powder

(iii) Whole Milk powder

(iv) Sugar

(v) Maize starch (used for the manufacture of modified milk foods for infants).

(vi) Other raw materials (to be specified¹) Add: Opening Stock: Less: Closing Stock Consumption transferred to Proforma 'B* /D, E.

Details of Opening and Closing Stock

Opening Stock

Closing Stock Particulars

Amount

Amount

Qty.

Qty. Rate Ra.

Rs.

Rate Rs.

Rs.

2

I

6

3

4

5

7

(i) fa) Skimmed Milk Powder (Imported)

(b) Skimmed Milk Powder (Indigenous)

(ii) Butter Milk powder

(ili) Whole Milk powder

(iv) Sugar

(v) Maize Starch

(vi) Other raw materials

(to be specified)

TOTAL

NOTE—Items of raw materials shown above not applicable to a particular company may be deleted.

ANNEXURE III

Name of tho Company

,

Name and address of the infant milk foods Factory

Statemmt ab^wlas tti- cojt of steam ] r*is=d/consum;d during the year

'Quantity of steam railed

Amount Particulars Quantity Rate Rs. Rs.

(Units)

a

3

4

1. Water

2. FuehV

(a) Coal

(b) Fuel Oil

(c) Other fuelsj if any (to be specified)

3. Consumable stores

4. Salaries & Wages

5. Repairs & Maintenance ,

•6. Other direct expenses (e.g. Boiler Inspection fees,

7. Dipreciation

TOTAL

8. L*sr. Credits, if any

TOTAL

Allocated to:

Quantity Rate Amount 1. Infant Milk Food

U 2. Other products

(to be specified)

TOTAL

NOTES : (1) If steam is supplied to any other outside party, necessary credit for recoveries made shall be given against item 8.

(ii) Where meters are not installed, consumption of steam shall be assessed on a reasonable basis and applied consistently.

Itii) Bonua to employees other than incentive bonus, provision for statutory gratuity t. and Interest chrges shall be shown in proforma'C'/'F'only and not in any other proforma.

SCHEDULE II

(Se* rule 4},

Proforma

Name of the Compnay

..

Name and address of the [infant milk food factory

Statement showing the cost of wet milk used in the manufacture of infant milk foods produced during the year

Current year Previous

year

(a) Number of collection centres

(b) Total quantity of wet milk despatched from the collection Kgs. Kgs.

centre* including deliveries at the factory.

(c) Loss in transit

(d) Other losses, if any

(e) Total quantity of wet milk received at the factory.

(f) Sales to Canteenj employees etc., if any.

(g) Other Utilisation (other than for infant milk foods)

(h) Utilisation for manufacture of infant milk foods-

Average fat content of wet milk received at the factory % %

Average solid non-fat content of wet milk received at the factory % . %

Cost per Kg.

Particulars

Total cost

Qty. (units)

SI. No.

Rate per unit Rs. Rs.

Current Previous year year Rs. Rs.

1

3

4

5

2

7

3 4 5 6

Expenses incurred OH chilling at centres

3

Development expenses, if any

4

Commission, if any

S

Depredation

0

Transportation cost (Annexure I)

7

Delivery cost of milk at the factory

8

Ltss: Recoveries for sale of milk to canteen,

9

• 1 11 k , employees, etc

to Met total

11 Stock Adjustments

Add; Opening Stock

Less: Closing Stock j]

Total

Q uantity and cost of Wet milk utilised for:

(a) Manufacture of infant mills foods (pr<

rformn B)

(b) Manufacture of other products

TOTAL

NOTES¹, ( I) The records shall indicate the premiums paid for miJk with higher fp* '•"itent and deductions made for lower fat content or for other reasons.

(2) The rate charged for v/et milk consumed for the manufacture of infant milk foods, skimmed milk powder and for any other products shall be based on the actual fat contents of the relevant quantity of milk consumed for the said purposes.

(3) Abnormal losses of milk, If any, shall be indicated both in quantity and cost in " separate statement.

(4) If part of the milk is sold to outside parties, details of the quantity, price and value thereofshallbeshownin the records. The sales realisations shall be shown against item 8.

(5) Bonus to employees other than incentive bonus, provision for statutory gratuity- and interest charges shall be exhibited in Proforma 'C only and not in any other proforma.

Proforma 'B'

Name of the Company • .—,—.—,—.—,—,—,—,—„—.-,—,^__^,__,-_^,_

Name and address of the Infant Milk Food Factory —.—,—.—.——,_—,.-.__,—._—.~_^,—,_

Statement showing the cost of production of bulk infant milk foods produced during the y e a r-

Current Previous

year year (a) Capacity : (i) Licensed

(ii) Installed

(b) Quantity of infant milk food produced under :

(i) Cream extract) on process (ii) Skimmed milk addition process

i (HI) Total of (i) and (ii)

(c) } (i) Average fat content of milk and milk ingredients consumed

(ii) Total weight of fat in inputs

(d) (i) Average solid non-fat content of milk and milk ingredients consumed

(ii) Total weight of solid non-fat in inputs

(c) (i) Average fat content of infant milk food produced

(ii) Total weight of fat in output (iii) Weight of fat in cream recovered

(f) (i) Average solid non-fat content of infant milk food produced

(ii) Total solid non-fat weight in output

S.No

Particulars

Qty. Rate

Cost per Kg.

Total Cost

Rs.

Rs.

Current Previous year year Rs. Rs.

i

2

3

5

4

6 7

•i. Materials

(i) Wet milk (Proforma 'A') Other raw materials (Annexure II)

(ii) Process materials (such as

Vitamin A to be specified)

(iii) Bulk packing materials

2. Direct Salaries and Wages

3. Utilities :

(a) Steam (Annexure III) (b) Power

4. Repairs and Maintenance ,

12

3 4 5 < 57

5. Other works overheads

6. Depreciation . . ..

7. Administration overheads 7K, .

• 8. Adjustment for cost variances,

it" any : (Where standard costing Is adopted)

(a) Materials

(b) Labour

(c) Overheads . , .

TOTAL :

y. Less ; Realisable value of by- products such as cream,

TOTAL :

10. Adjustment for opening and

closing work in progress .

11. Stock Adjustments :

Add : Opening Stock .

Less : Closing Stock

12. Total cost of bulk infant milk food transferred for packing (Proforma 'C')

' Applicable only to companies maintaining records on Btandard costing system.

NOTES : 1. The basis on whicbithe realisable value for by-products is determined shall be clearly indicated.

2. The apportionment of common overheads and head office expenses to the proc'uet in the case of multi-product units shall be equitable and applied corsitttnrly.

3. Borus to employees other then incentive bonus, provision for statutory gratuity and interest charges shall be shewn in Profoima 'C only and not in any other proforma. 4, If entire or part of the plant is used for the manufacture of other products in addition to infant milk foods, the apportionment of the operational expenses of the plant in- cluding labour cost to the different products shall be equitable and applied consistently.

5. Records about the actual quantity and cost of bulk packing matcneis LcnEiuned shall be maintained. These records shall enable determination of the actual share of the cost of bulk packing materials, or the cost of bulk packing materials used less credits for re- use or sale thereof ; which cost only Fhall be charged against item i(iii) above.

Profortna *C

N a me of company —

. 1—1 •—•—1 .—, . .

N a me a nd address of t he infant milk foods factory-^—1 . — 1 — . — , —— .—. . ——

Statement showing t he cost of sales of infant milk foods(*) packed a nd sold d u r i ng t he year .—1—.

Current Previous

year year

Kgs. Kgs.

•(a) Quantity packed

(b) Quantity sold

(c) Size of packing ,

* Brand name of the infant milk foods to be indicated in brackets.

Quantity J

Total Cost

Particulars

Rate

Cost per p ack

per unit

Current Previous year i year

Rs.

Rs.

Rs. R s.

2

1

3

5 6

4

1. Cost of bulk infant milk food as per Proforma ' B' . . ..

2. Packing Cost:

(i) T i ns

(11) C a r t o ns . . ..

(ii) O t h er p a c k i ng m a t e r i a ls

(iv) W a g es . . ..

(v) R e p a i rs a nd M a i n t e n a n ce

(vi) O v e r h e a ds . . ..

(vil) D e p r e d a t i on

T O T AL

-3. Stock Adjustments :

Add : Opening Stock

Less : Closing Stock

Net Cost of quantity packed and

sold . . . ..

I

^{2 3} 4 5 ⁶

- •*

4.

Selling and Distribution Expenset

(i) Salaries and Wages

(ii) Commission and dealers

(iii) Freight and Transport .

(iv) Loading and unloading charges

(v) Godown rent . , .

(vi) Advertisement

(vii) Other expenses

Total coat including selling and dis-

5-

tribution expenses

Interest Charges.

6.

Annual bonus to employees (Other

7-

than incentive bonus), ,

8. Provision for Statutory gratuity ,

Other expenses not included in

9-

cost (to be specified)]

10 . Less other incomes not considered

, , in cost (item to be specified)

11 . Total expenses excluding excise duty

for quantity sold within the country

12 . Total sales realisation excluding ex- cise duty *"or quantity sold within t he c o u n t ry . . ..

. M a r g i n.

13

NOTBS: 1. Separate cost statcm:nts shall bs maintained in respict each brand and "size of pack- ing.

2. The apportionment of common selling and distribution expenses to the products in the case of multi-product units shall be equitable and consistent.

3. Bonus to employees other than incentive bonus, provision for statutory gratuity and ID- terest charges shall be shown separately in Proforma 'C only and not in any other Proforma in respect of infant milk foods.

4. Separate coat statements under Proforma 'C shall be maintained in respect of infant milk foods exported. Expenses incurred for exporting and incentives earned thereon shall b; shown in the relevant cost statements.

5. If the entire or part of the packing plant is used for packing of other products in addition to infant milk foods, the apportionment of the operating expenses of the packing plant in- cluding labour costs to the different products shall be equitable and applied consistently _

Proforma 'D'

Name of the Company —. -~ • >

Name and address of the factory manufacturing modified milk foods for infants y—

Statement showing the production cost of ingredients (•) used for the manufacture of (*) a modified form of Infant Milk food durin g the year — —

Current Previous Year Year (a) Licensed Capacity

(b) Installed Capacity

(c) Quantity produced

(d) Quantity transferred for production of modified milk food for

infants

(e) Quantity sold, if any.

(f) Quantity utilised for other products, if any

(*) Brand names to be indicated.

Cost per Kg.

Particulars

Quantity (units)

Total Cost Rs.

Rate per unit Rs.

Current Previous Year Year Rfl. Rs.

2

i

5 6

4

3

1. Raw Materials :

(a/ Maize Starch (Anncxure II)

(b) Phosphoric Acid

(c) Calcium Carbonate

(d) Maltranilsyrup

(e) Other Raw Materials, if any

2. Process Materials

3. Direct Salaries and Wages :

4. Utilities :

(a) Steam (Annexurc III).

(b) Power

(c) Other Services like Air,

Water, etc.

5. Repairs and Maintenance :

6. Others Works Overheads :

7. Depreciation :

i 2 3 4 5 6

8. Administration Overheads

*9- Adjustment fot cost variances, If any (where standard costing ' •yetem is adopted).

(i) Materials

(ii) Labour

(iii) Overheads

TOTAL I

10. Adjustments for opening and

closing balance of work-in-pro- gress.

TOTAL J

J I. Stock Adjustments :

Add¹: Opening Stock

Lett : Closing Stock

TOTAL :

12. Less : Cost of Ingredient :

(i) Sold

(ii) used for the manu- facture of any other products.

13. Cost of ingredient transferred for production of modified Milk Foo<5 far infant*—Proform.a. .'U',

(*) Applicable only to companies maintaining records on Standard Costing System.

NOTES : I. Separate Cost statements shall be maintained for similar ingredients manufactured by whatever uame they may be called and used for production of an} other modified milk foods for infants.

2. Abnormal losses, if any, shall be indicated both in quantity, and cost In a separate statement.

3. It part of the ingredient is sold, details of the quantity.Jprice and sales realisation thereof shall be shown In the records.

4 Bonus to employees, other than incentive bonus, provision, foi^ statutory gratuity and interest shall be exhibited in Proforma 'P only and not In any other Proforma in refpect of modified milk foods for infants.

5, The apportionment of common overheads and head office expenses to the product in the caBe of multi-product units (hall be equitable and applied consistently.

Proforma 'E'

Name of the Company

Name and address of the factory manufacturing modified milk foods for Infants^- .• —-

Statement showing the cost of production of hulk modified milk food for Infants (•) produced

during the year ..—i— .. . — . • — . • . . .

Current Previous

Year Year

(a) Capacity : (i) Licensed

(ii) Installed

(b) Production of modified milk foods for Infants

(c) (i) Average fat content of whole milk powder, consumed

(ii) Quantity of whole milk powder consumed

(iii) Total fat content of Input—Kgs

(d) (1) Average fat content of modified milk foods for Infants

B (il) Total fat content of output—Kgs

( * ) Brand name to be indicated.

Particulars

Cost per' Kgs.

Quantity

(units) |

Rate

(per unit)

Total

Cost

C'Mtent Previous

Year Year

Rs.

Ri.

Rs. Rs.

i

2

3

5 6

4

i. Materials :

(1) Raw Materials and Process Materials :

(a) Ingredient (Proforma 'D')

(b) Skimmed Milk Powder (Anncxure II).

(c) Whole Milk Powder (Annexure II),

(d) Vitamin A Acetate

(e) Vitamin B6

(f) Vitamin C

(g) Vitamin D2 Dry

(h) Other Process Materials

(ii) Bulk packing materials :

2. Direct Salaries and Wages

1 2 3 4 5 ⁶

3. Powder

4. Repairs and Maintenance

5. Other Works overheads

6. Depreciation.

7. Administration Overheads

*8. Adjustment for cost variances,

if any :

(a) Materials

(c) Overheads

Total :

•9 Adjustment for opening and closing balance of work-in-pro- gress.

10. Stock Adjustments :

Add: Opening Stock

Less: Closing Stock

Total cost of bulk modified form of infant milk food transferred for packing.

• Applicable only to comp*nios maintaining records on standard costing system.

BIJTHS : 1. T h; appjrtunrcunt of com nin overhaads and head office expenses to the product in thj caie of multi-product units shall be equitable and applied consistently.

2. B:nin to employees othjr than incentive bonus, provision for statutory gratuity and interest charge shall be 3h:>wn In Proforma 'F' only and not in any other proforma.

3. Separate C J" statenj:nts shall be maintained for similar modified milk foods for infants by whatever narao they may b" called.

4. Records ab.iut the actual quantity and coat of bulk packing materials consumed shall be maintained. These records shall enable determination of the actual share of the cost of bulk packing materials, or the cost of bulkjpacking materials used less credits for ro-use or sale thereof, which cost only shall be charged against item i(il) above.

Pro forma 'P'

Name of the Company

Name and address of the factory manufacturing modified milk foods for infants —- . - r

Statement showing the cost of ealet of puckcd modified milk feeds for Irfprtf (•' pecked ard fdtf during the year .. _ ^ — ^ ——

Current Previous Year Year

Kgs. Kgs.

(a) Sizes of Packing

(b) Quantity Packed

(c) Quantity Sold

(•) Brand name to be Indicated.

Cost per Pack

Quantity Rate

Particulars

Total Cost

p e r| unit

Current Previous Year Year

Rs. Rs.

Rs.

Rs.

I

2

5 6

4

3

I. (a) Cost of bulk modified milk

foods for infants (Profortna 'E'.)

(b) Packing Cost:

(1) Tins

(il) Cartona

Gfl) Other packing materials

(iv) Wages

(v) Repairs and Maintenance

(vl) Overheads

(vii) Depreciation— . • '. . — _ _ . _— — — — — — — <—

TOTAL I

(c) Stock"} Adjustments :

Add :' Opening Stock

Ltss : ClOBing" Stock.—•—i •———• • ~'—'—

(d) Net Cost of quantity

packed and sold

I 2 3 4 5 6

3. Stlling and Distribution Expemts ;

(I) Salaries and Wiges

(II) Commission to dealers

(iii) Freight and Transport

(IV) Loading and unloading

charges

(v) Godown rent

(vi) Advertisement

3. Total cost including selling and

distribution expenses.

4. Annual bonus to employees (other

than incentive bonus).

5. Provision for statutory gratuity.

[6. Interest charges

7. Other expenses not included in

cost (to be specified),

8. L^ss other incom.notconsHered--' 1 • - — -— • —

in cost (items to be specified).

9. TJtal expanses excluting excise— • —,—..-. — — . — — — — . — . — . - . _ _ _ _ __ duty fox quantity sold within the country.

10. Total sales realisation,, excluding excise duty for quantity sold with- in the country ". • ' •••-- '

11. Margin.

NOTES : 1. S^pata'e cost statements shall be maintained in respect of each brand and size of packing.

2 The apportionment of common selling distribution expenses to the various products ' in the case of multi-product units shall be equitable and consistent.

a Ronus to employees other than incentive bonus, provision for statutory gratuity and interest charges shall be shown separately in Proforma F only and not In any other Proforma in respect of modified milk foods for infants,

A Separate cost statements under Proforma 'F shall be maintained In respect of modified •milk foods for infants exported. Expenses incurred for exporting and Incentives earned thereon shall be shown in the relevant cost statements.

" If the entire or part of the packing plant is used for pactlng ot otner products in ⁵" addition to.modified form of infant milk foods, the apportionment of the operating Expenses of die packing plant including labour costs to the different products shall be equitable and applied consistently.

6 Separate cost statement, in similar form shall be maintained for other modified mills foodifor infants, manufactured, by whatever name they may be called.

Pro/ortna "ff

Name of the Company- • - — • —— - ipu Name and address of the Infant Milk Food Factory • ,— -, — Statement showing the allocation of total expenses of the company between Infant Mitk Foodg and other activities for the year—• ~ — _

Share applicable to Particulars

SI. No.

Total actual Expenses Infant milk Other Foods acti- activities

vity Rs. R s,

Rs.

2

3

1

4 5

1 Raw Materials Consumed 2 procesB materials consumed

' 3 Bulk packing materials

4 Direct salaries and wages 5 Utilities 6 Repairs and Maintenance 7 I Other Works Overheads 8 Depreciation

9 Administration overheads

TOTAL : .. -. • - . , .. _ - ,. , 10 Adjustmentfordifference between opening and

closing balance of work-in-progress

TOTAL :

. —, , .

11 Lett : Cndits for recoveries :

(i) By-products

f(li) Others

12 Packing ,CoBtfl 13 Stock Adjustments for difference between open-

ing and closing stock.

(i) Bulk Stock (ii) Packed Stock

TOTAL : •• —. — . —— -

14 Selling and Distribution Expenses

TOTAL

, , , 15 Annual bonus to employees other than incentive

bonus :

16 Provision for statutory gratuity 17 Interest Charges 18 Other expenses not included In cost (items to be

specified.)——

. ,

19 Less other income not considered in cost (items

to be specified). i|

30 Total excluding excise duty.

21 Deduct export benefits, if nny - _

22 Net soles realisation (excluding excise d u t y ) . — - — . _ _ _ _ _ _ _ _ _ , „ _ _ _ __ 23 Margin. -. •— — . _ . . __^_ All items of Income and expenditure in this Proforma shall be reccndled with the financial accounts fot the relevant period.

[No 52/I43/73-CAB]

P. B. MENON, Jt Secy.

PRINTED BY THE MANAGER. GOVERNMENT OF INDIA PRESS, M I N TO ROM¹, N "W DELHI AND PTJBT/TSHTO BV THE CONTFOLLSH <">*• PUBLIC AT1OM8, DELHI, 1 " 74