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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. 89] NEW DELHI, THURSDAY, MARCH 24, 1977 CHAITRA 3,1899

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

as a separate compilation

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

NOTIFICATION

New Delhi the 24th March 1977

COST ACCOUNTING RECORDS (POLYESTER) RULES 1977 G.S. R 126(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, 1956 (1 of 1956), the Central Government hereby makes the follow- ing rules, namely.—

1 Short title and commencement—(1) These rules may be called the Cost Accounting Records (Polyester) Rules, 1977.

(2) They shall come into force on the 1st day of April, 1977.

2 Application—They shall apply to every company engaged in the produc- tion, processing or manufacturing any of the following Polyester products —

(1) Polyester Fibre.

(2) Polyester Filament Yarn.

(437)

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 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 utilisation of materials, labour and other items of cost in so far as these are applicable to the Polyester products referred to in rule 2.

Provided that ]f the said company is manufacturing any other product(s) or is engaged in other activities m addition to the items referred to m rule 2 the particulars relating to the utilisation of materials, labour and other items of cost m so far as they are applicable to such other products or activities shall not be included in the cost of the products referred to m rule 2,

(2) The books of account referred to in sub-rule (I) shall be kept in such a way as to make it possible to calculate the cost of production and cost of tale of each type of Polyester product referred to m rule 2 during a financial year (hereinafter referred to as the relevant period) from the particulars entered therein and every 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

(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 step-s to secure compliance by the company 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 (1) of section 209 of the said Act.

4 Penalty—If a company contravenes the provisions of rule 3, the company and every officer thereof who is in default including the persons referred to in sub-rule (3) of rule 3, shall, subject to the provisions of section 209 of the Com- panies Act, 1956 (1 of 1B56), be punishable with fine which may extend to five hundred rupees and where the contravention is a continuing one, with a further fine which may extend to fifty rupees for every day after the first day during which such contravention continues.

SCHEDULE-I

(See rule 3)

I. Materials:

fa) Raw Materials.—(l) Proper records shall be maintained showing sepa- rately the quantity and cost of Di-Methyl Terephthalate, Ethylene-gjycol and other raw materials used m the manufacture of polyester chips used for the manufacture of Polyester Fibre/Polyester Filament Yarn Where Di-Mcthyl Tercphthnlate is obtained from different sources the records shall be maintained in such a manner that the cost of Di-Methyl Terephthalate obtained fiom im- ported and indigenous sources are available separately If Di-Methyl Tereph- thalate is manufactured by the company, detailed lecords indicating the break up of raw materials consumed for the production and conversion cost shall also be maintained to enable ascertainment of the cost of Di-Methyl Terephthalate in- cluding charges incurred if any, upto the Polyester Factory

(n) The records shall also indicate the proportion of imported and indigenous Di-Methyl Terephthalate used from different sources for the manufacture of chips used for the production of Polyester fibre/polyester Filament Yarn

dii) Proper records shall also be maintained showing the quantity and cost of Di-Methvl Terephthalate recovered from waste obtained after polymerisation and re-used for production of Polyester chips.

(iv) Proper records shall be maintained to arrive at the cost of Di-Methyl Terephthalate purchased by the company inclusive of all direct charges such as freight octroi insurance etc incurred upto works The records shal 1 "how the receipts, issues and balances both in quantity and cost of Di-Methyl Terephtha- late and Ethylene-Glycol separately from imported and indigenous sources of purchase and for different qualities.

4b) Process Materials/Chemicals—Proper records shall be maintained to show the receipts, issues and balances both m quantities and cost of each item of pro- cess materials/chemicals such as catalysts and additives used m the manufacture of Polyester chips used for the manufacture of Polyester Fibre/Polyester Fila- ment Yarn The cost shall include all direct charges upto the works wherever specifically incurred The issues shall be properly identified with the depart- ments, cost centres and products manufactured Where these process materials are produced by the company, separate records showing the cost of manufacture of each such material indicating the break-up of raw materials consumed for tho production and conversion cost shall be maintained in such details as may enable the company to determine the cost of such process materials produced

(c) Recoveries of Process Materials /Chemicals—Proper records shall be main tamed indicating the quantity of the materials/chemicals recovered from the different processes In the case of certain materials/chemicals thus recoveied which cannot be re-used in process due to lower content and are sold the real- isations from the same shall be recorded and adjusted against the cost of con- sumption of respective materials/chemicals if practicable or adjusted against the proce--!, concerned on. a reasonable basis In case further proces^m^ is neces- sary to make the material/chemical useable or saleable adequate records of cost involved for such further processing shall be maintained If such further processing is done by any outside agency records to show the quantity sent for processing quantity processed, and the cost incurred thereon shall be maintained in detail.

Ethylene-glycol—Proper records showing the cost incurred in the recovery of Ethylene glycol and Methanol shall be Separately maintained ThP sales realisation obtained from Methanol shall be adjusted as a by-product recoverv in the final cost

(d) Consumable Stores, Small Tools, Machinery Spares, etc d) Propei le- coids shall be maintained to show the receipts issues and balances both in quan- tities and cost of each item of consumable stoies, small tools and madnneiy jpatps The costs shown shall include all direct charges upto works whereier specifically incurred

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

(m) The cost of consumable stores, small tools and machinery spares con- sumed shall be charged to the relevant heads of account such as production, repairs to plant and machinery and rerans to buildings Materials consumed on capital works such as addition to buildings, plant and machinery and other assets shall be shown under the relevant capital heads

(e) Wastages, Spoilages, Rejections, Losses etc of materials—Proper records shall be maintained showing thp quantity and cost of wastages spoilages, iejec- tions and losses of raw materials, process materials consumable stoies small tools arid machinery spares, whether in transit storage, manufacture or for any othei reasons

The total waslige in terms of Di Methvl Tcrephthalate and Eth\lene-fjlj col in the polymerisation process as well as wastage incurred in the spinning pi o- cess shall be separately recorded to enable contiol of such losses and identifvmg the realisations thereof The method followed for the adjustments of tho above losses m the cost of production of Polyester Fibre/Polyester Filament Yarn shall be indicated m the records

II Salaries and Wages:

(a) Proper records shall be maintained to show the attendance and earnings of all employees in the departments and cost centres and the work on which they are employed The records shall also indicate separately for each depart- ment and cost centre —

(1) piece-rate wages earned,

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

(in) overtime wages earned; (IV) earnings oi casual labour.

(b) Idle time shall be separately recorded under classified headings in Pro- forma E of Schedule II indicating the reasons therefor The method followed for accounting of Idle time payments in determining the cost oi the products ehjll be disclosed in the lecordt.

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

III. 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 betas and applied consistently. IV. Utilities:

(1) Nitrogen,—Proper records showing the cost of nitrogen purchased by the company for ute in the production or Polyester chips as well as polyester Fibre/ Polyester Filament Yarn shall be maintained These records shall t,how the cost of Nitrogen delivered upto the works including all direct charges If nitrogen ia produced by the company, proper records showing the quantity and cobt of nitrogen produced shall be maintained in such details as to enable the company to furnish necessary particulars in Annexure I appended to this Schedule or in a form as near thereto as practicable. The records shall also show the cost of nitrogen consumed by the Polyester Fibre and Polyester Filament Yarn units separately, The cost of Nitrogen shall be charged to the individual products on a reasonable basis and applied consistently

(2) Steam—If steam is raised by the Polyester factory of the company pro- per records showing the quantity and cost of steam raised and consumed for the production of Polyester chips used in the manufacture of Polyester Fibre and Polyester Filament Yarn shall be maintained in such details as may enable the company to furnish the necessary particulars in Annexure II. The cost of steam consumed by the Polyester activity and other units of the company, if any, shall be calculated on a reasonable basis and applied consistently

Where steam is raised and supplied by any other unit of the company to the Polyester factory, the cost of steam so supplied shall be charged to the Polyester activity on a reasonable basis and applied consistently

(3) Power.-—When power is generated by the company, (proper records show- ing the quantity and cost of pow^r generated and consumed for the production of Polyester chips and different Polyester products in different department.,' and cost centres etc, shall be maintained in such detail as may enable the company to furnish the necessary particulars in Annexure III to this Schedule Adequate records shall also be maintained to show the quantity and cost of power purchas- ed. If any expenses are incurred for the distribution of the power thus purchas- ed proper records to show the expenses shall be maintained.

Where power is generated and supplied by any other unit of the company to the Polyester factory, adequate records shall be maintained to assess the quantity and cost of power so supplied. The rate charged bv that unit shall be on fi rea- sonable basis Necessary records shall also be maintained to show the consump- tion of power by various departments or cost centres, The cost of power allo- cated to production shall be on a reasonable basis and applied consistently

(4) Water,—Proper records shall be maintained to show the cost of .water chargeable to the Palyester chips manufactured and used for the production of different qualities of polyester products The cost of water allocated to the c°st centres and further to the individual products shall be on a reasonable basis

(5) Compressed Air.—Proper records shall be maintained to enable determina- tion of the cost of compressed Air and its distribution to different departments, pnd cost centres.

44i

(g) Air-Conditioning.—Proper records shall be maintained to enable deteimi- nation of cost of air conditioning and its distribution to departments or cost •centres like Polyester Fibre/Polyester Filament Yarn plants to enable the com- pany to furnish necessary particulars in Annexure IV to this Schedule.

"V. Workshops/Repairs & Maintenance:

Proper records showing the expenditure incurred by the woikshop under •different heads and on repairs and maintenance by the venous departments and cost cervixes thall be maintained The records shall also indicate the basis of •charging the workshop expenses to different departments, cost centres.

Expenditure on major repair works from which benefit is likely to accrue lor more than one financial year shall be shown separately in the cost records indi- cating the method of its accounting in determining the cost of the various pro- ducts manufactured during the relevant period

Expenditure incurred on works of a capital nature shall be capitalised The <;ost of such lobs shall include the expenditure on materials labour and a share of the overheads- The iobs carried out by the workshop of the Polyester factory for other units of the company and rice verm shall be charged/credited on a reasonable basis and applied consistently.

VI. Depreciation;

(a) Proper lecords shall be maintained lowing the cost and other Pa^icu-

balance

departments and cost r* "nU er than the amount ol depreciation oharse- cost leconi, in nnv financial vear is mnner tnciii i amount so charged

respective assets

VII(i) O\erlieails:

Pr->-,n - r o^ -hall W , n n l , n ,l shn.vir, the v ,rjoi,S ^ g f * * ™ ^^

s&:v;Vo, 'S? "r! t " o ^l ^ ttc ^™ " t r^ of 0 ^ 9^ n ^ c? W ,? tbo r- 'Ki, shall be lndi. ..ted jn t he cost iccord"

Where the company is on^e* m the ™™g}™^f™ t ^ ^ & l S Ud

instance and thereafter the common expenses shall be allocated on a reasonable basis and applied consistently

Details of selling and distribution expenses and share thereof applicable to polyester activity and to individual polj ester products shall be maintained in such a manner as to enable the companv to fill up the particulars in Proforma 'D' of Schedule II The basis followed for apportionment of all categories of overheads shall be rational equitable and applied consistently

VII(b) Expenses on export:

Records showing the expenses incurred on export of Polyester products, if any, shall be separately maintained so that the cost of export sales can be deteimined correctly The expenses incurred on exports as well as any export incentives earned shall be reflected in the cost statements relating to export sales

Vni Packing

Proper recoids shall be maintained showing tho quantity and cost of various packing materials such as polyester sheets, jute sheets, mild steel wires hoops and buckles used for packing different qualities of cut polyester fibres and plo> ester tops as well as cones, cops used for winding polyester filament yarn separately. Records shall also be maintained showing the other expenses incurred in lesoect of packing Where such expenses are incurred In common, the basis of apportion- ment of expenses between different polyester products shall be clearly indicated in th" cost recoids and applied consistently.

Separate records of special expenses incurred on a particular expoit packing in respect of polyester flbre/polvestei filament T. sin if anj, shall be maintained in- dicating special expenses so thai the cost of expoit sales can be determined correctly

IX Research and Development Expenses

Adequate records showing tho details of expenses incurred bv tho company for the development of existing products or new products or processes, If any shall be maintained separately Such records shall indicate the expenses incurred on generic research and brand promotion separately Expenses incurred on brand promotion shall be excluded from costs and charged to profit directly If the Research and Development department is also engaged in the design and develop- ment of the plant facilities the appropriate shares thereof shall be capitalised. The method of charging research and development expenses to the cost of pio- ductlon shall be indicated m the rcle\ ant cost records and such expenses shall be charged to Polvester fibre and polvester filament yarn on a reasonable basis

Wherever the utility of such research extends over more than one financial yeai =;uch expanses shall be treated as deferred expenses and charged to cost of production on some reasonable basis which Is to be followed consistently

Expenses incurred by the Research and Development department for furnishing the technical knov, how lo outsiders snail be recorded separately and excluded from the cost of products referred to in rule (2) of Schedule I The amounts recovered for providing technical know how to outsiders shall also be indicated separately

X. Polyester for Captive Consumption

If Polyester Fibre/Polyester Filament Yarn is used for captive consumption proper records shall be maintained showing the quantity and cost of each item of pol' ester products transferred to another department/unit of the company for self consumption The rates at which such transfers are effected shall be at cost

Self consumption of finished polyester products by the company for other uses shall also be shown separately In Proforma 'D' Indicating the quantity, rate and value thereof.

XI, W<'rk-in-progTess and Finished goods stock

The method followed for determining the cost of work-in progress and finisher! goods stool- shall he 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 be followed consistently Records showing the value of work-in-progress and quantities and cost of finished items shall be maintained in suc'i details es to enable them to fill up the particulars in Proforma 'P' of Schedule II.

XII Cost Statements

(I) Separate cost, statements shall be maintained m respect of different quali- ties of polyester chips produced for the manufacture of Polyester Fibre/Pol,\ ester Filament Yarn of diilerent grades and demers in Proforma 'A' or in a form as near thereto as practicable showing the actual cost of production,

(II) Co-it statements showing the cost of production and cost of sale-, of Polyester Fihre, Polyester Fibre tops and Polyester Filament Yarn shall be main- tained in Proforma B' and 'E' respecliveh Cos.t statements shall be maintained separately m respect of each quality anrt denier of Polyester Fibre/Polyestei Fila- ment Yarn

Export of Polyester Fibre/Polyester Filament Yarn shall he exhibited separate- ly in the relevant cost statements and the same shall be excluded from the cost statements meant tor sale in the internal market

XIII By products.

Proper records shall be maintained for each item of by products derived such as, Methanol showing receipts, issues and balances both in quantity and cost. The basis adopted for valuation of Methanol shall be equitable and applied con- sistently Records indicating the expenses incurred on further processing i£ ar.y, as well as the actual sales realisation from the ultimate by products shall be main- tained Credits afforded for Methanol shall be reasonable

XIV Reconciliation of cost and financial accounts;

T he cost records shall be reconciled preferably periodically with the financial books of account so as to e n s u re accuracy Variations, if any, shall be clearly indicated and evplaJned T he period for which such reconciliation is effected shall not exceed the period of the financial y e ar of the company T he reconciliation shall be done in such a m a n n er tV-it the profitability of t he product u n d er refer- ence can be w m e c t lj dd nidged and reconciled with the overall profits ut tbc- c o m p a ny

A s t a t e m e nt showing the total production as well as total expenses i n c u r r ed by and income received by shalL be maintained in Proforma 'B' duly reconciled with the Unancipl accounts

XV Adjustment of Cost Variances

W h e re the c o m p a ny m a i n t a i ns cost lecords on any basis other t h an actuals, such as s t a n d a rd costing, the r e c o r ds shall indicate the procedures followed by t he - o m p a ny m working out the cost of the product u n d er such a system The method followed for adiusting the cost variances in determining t he a c t u al cost of t he aroduct shall be indicated clearly jn the cost records The cost v a r i a n c es * a l l be shown against the relevant heads in the respective proforma of Schedule II T he reasons for the variances shall be detailed in the cost records

XVI. Records of physical verification:

Records of physical verification shall be maintained in respect of all items hold in stock such at raw material^, process materials, packing materials, consumable btores, machinery spares, chemicals, fuels, finished goods and iixcd assets. Reasons for shortaKes/surpluses arising out ot such verification and the method followed for adjusting the same in the cost of the products shall be indicated in the records

XVII. Inter-company Transactions.

In respect of supplier made or services rendered by the company to its holding company or a subsidiary or a company under the samejnanagement as defined under Section 370(lB) of the Companies Act, 1956 (1 of 1956) or a company in which a Director of the compam is also a Director in such companies ana vlcc- versa, records 5*1811 be maintained showing contracts entered nlo, agreements or understandings leached, in respect of —

(a) pin chase and sale of raw mateilalb and process materials,

(h) utilisation of plant facilities,

(c) supplv of utilities, and

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

vices,

(e) Sale of finished products

These records shall indicate the 1 asis followed for arriving at the rates charged between them to as to enable deteimmation of the reasonableness of the rates charged/paid tor such services

XVIII. Statistical Records;

Data such as wastage of Dl-Methy-Terephthalatc Eth\lene-gloycoi snail be maintained to enable contiol of process losses Data legarding plunt utilisation for dillerent types of yarn produced including yarn produced lrom regeneiated cellulosic fibre or no'i-ceHalosic til le permitted under Textile Commissioner's Older No _M t())-H4-Contrnl date'l the 14th August, 1964, if any, shall also tie kept. Records thowmK the total machine hi

Reconlo L1& vvill enable the enmpan' to identify, as far as possible, the capital emoloved "t paiately foj poheiter HI ie pul\ es>tei lllamont >arn and other activi- ties shall aUi> be m^intairiFil FK.F1 investment¹; on fixe 1 assets that have not cont; b"ter; f"i the production dun'i/ thr> iolcvnnt period shall al'-o he indicated in tV icro ds Ttie records ••hill in addition show assets added as replacement and that t-a kM iii I'U'it. sin? o\ittm^ capacity

SInLtfit'll did othei records m iinl uncd m nccordnnce with the provisions of this, S hedule nnd Scherhil^ II ch-ll 1 e tuch at, to enable the company to exercise, as fa" db intsiMe control n\ er th^ *. armus operation., and costs with a view to achieve oiitimum oeo'vimips in co^'s and to m-uvlde the necessary data required bv t^e cost aurht'ir to Miitabl- lepoit en nil tne points referred to in the Cost Audit (Report) Rules Htb8 as amended from time to time Such records shall be le- conciled with the roturns submitted to the Textile Commissioner under the Art Silk Textile (Production & Distribution) Control Order, 1962 and Notifications issued thereunder ns well the returns submitted to the Excise and other authorities.

ANNEXURE—I

Name of the Company

.

Name and address of the Polyester factory . .

Statement showing the cost of Nitrogtn produced and consumed during the j ear ending

ANNEXURE—II

Name of the Company

, ,, .

Name and address of he Polyester Factory

Statement showing the <.ost of steam rait ed/comumed during the year ending

Annual Installed Capacity

. Tonnes at Kg/Cm2g

Quantity of Steam raised . .. „

S. N o. Particulars

Amount (Rs

Rate (Ra)

Quantity (Units)

Cost per tonne of steam raise

(Rs. )

I 2

6

3

4

5

I Water . .

2 Fuels 00 C o al ft>) F u el O il . .. (c) Electricity (d) Other fuels, if any (to be specified)

3 Other Direct Expenses (Such as

Boiler Inspect on fees)

4 Consumable Stores 5 Salaries and Wages

6 Repairs and Maintenance 7 Other overheads 8 Depreciation

Total

9 Less (a) Cost oi live steam used by power hi use for genera- tion of elect u city (b) Other units ot the com-

pa. y

(c) Outside parties

Balamce quantity and cost of live

steam

Units Amount (Rs.) Consumed in .

1. Polymerisation Plant 2. Polyester fibre spinning plant 3. Polyster filament yarn . . . .. 4. Other units oi the company . . ..

NOTES ;

(1) It steam is supplied to any other outside party, necessary credit for recoveries made shall be given against item 10.

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

(3) The basis oi ol.ocation to be indicated. (4) Bonus to employees other than incentive bonus, provision for statutory gratuity and interest charges shall be shown m Proforma 'C only.

ANNFXURE—in

Name of the Company .

Name and address of the Polyester factory. .

Statement showing the cost of power generated/purchased Jand consumed during the year ending ,

Installed Generation Capacity M.W. No. of Units generated KWH No. of UnitB purchased KWH Consumption in power house including other losses . KWH Net units consumed . . . .. KWH

S. No." Particulars

Quantity (UnitB)

Rate Amount (Rs.) (RS.)

I

2

3

4 5

A. i ( a) S t e am ( as p er A n n e x u re I I / p u r c h a s e d)

( b) O t h er m a t e r i a l s, if a n y, ( to be s p e c i f i e d)

2 C o n s u m a b le S t o r es

3. O t h er D i r e ct c h a r g es

. . ..

( s u ch as E l e c t r i c i ty d u ty e t c .)

A. S a l a r i es a nd W a t t es . . . ..

5. R e p a i rs a nd M a i n t e n a n ce . . ..

6. O v e r h e a ds .

. . . ..

7. D e p r e c i a t i on

•

Total . . ..

B. Power purchased

Total (A+B) . . • Less : Recoveries, it any

Net Total

Cost per unit (purchsed and generated)

Quantity Amount (Rs.) Consumed w •

1 Nit rogen plant . .. 2. Steam generation 3. Air Conditioning 4. Polyester chips plant . . . 5. Polyester fibre/PolyBester filament yarn plant 6. Other units of the company

Total

•

NOTES :

(1) Cost per unit shall be worked out with reference to the net units of powei available for use after deducting consumption in the power house and other losses,

(2) Where meters arc not installed, consumption of powei shall be assessed on a reasonable basis and applied consistently.

(3) Bonus to employees other than incentive bonus, provision for statutory gratuitj and interest charges shall be shown in Proforma 'C only and not in any other Proforma.

ANNEXURE—IV

Name of the C- mpany

Name and address of the Polyester factory

Statement shvwing the c>st of A'r Conditioning during the y;ar ending

Thermal units 'hr

(ft) Installed capacity • . . . ., ^

(b) Average operating load during the year • ,, (c) N c cf h urof ipe-atii n duiingthe -year • •

Quantity Rate Amount (Units) ( R a) (Rs.) S.N". Particulars

I

2

3 4 5

I Chemicals •

p t

2 Salaries and Wagt a •

3 Power and other services

(a") Fi'Nver

•

( bi W a t er

•

4 C o n s u m a b le sb r es . . ..

•

<; R e p ai s a nd M a i n t e n a n ce

* •

6 W ' ^ rl 9 o v e r h e ad . . ..

•

y jJCprcciaiiL IJ

*

T> tal O 9t

•

Apportionment

Co"t (Ra. i Percentage i Polyc>ier fibre

( a ") I V l y m L r i s a t i L ii . . ..

( bj S p i n n i ng . . . ..

( c) F i n i s h i ng . . . ..

•

(d) Others

•

2 Polyester filament yarn

( a) P > l y m i ; r m T ii n . . ..

•

( •) S p i n n i ng .

•

(o C m rg . . . ..

•

(dl Others

•

NOTES

(2) Tne app .rti .ninent L f Air C .niiti,.nmg cost t > the different departments and coat centLes shall be dtnc on scientific and row -nj,ble mann-r und BUpp.ied c msistently.

SCHEDULE—II

(Ssa rule. 3)

PROFORMA 'A'

Name <. f the & mpany

NaEje and address i i the pclytster Facti ry

•••

Statement shnwmg the cost of production oVTVlytster chips, pr. di'ccd ft r the rftiwJactwc ot

Pols<-&ter fibre Pi ly^tcr filament yam fi.r the y< ar ending

Current year

Previous Year Tonnes

Tonnes

I. Installed capacity (Basis to bo indicated )

2. Budgeted capacity ( ,, )

Achieved capacity ( „ )

3-

(produaion)

D.M.T consumed ( „ )

4-

Production efPolyister chips . . ..

•

5-

•

6. Waste percentage

7-

•

Usages per Kg. of Polyester Ca) D.M.T. (b) Ethlenc glycel

Lv nne

Cc st per r

Rate

Current

Quantity (Units)

i. Particulara

S.Nt

Previovi-a year

Total O at (R"0

(RsO

year CRO

7

6

2

i

4

3

5

i Raw Material*

GO Dimethyl tcrephthalate

(0 Inn> rted

(n) Indigentu& • Cm) Rcc vered •

Tottl

(b) Ethykne glycol

(\) Purchased •

(n) Reci vered

Total Raw Mateuala

Less ' By products and recoveries

(a) MetVanol (bj Others, if any •

Net coat of raw materials

Process Chemicals

2

(a) Catalvs s • • • (b) Additives

Salaries & Wages

3

Utilities •

4

(a) Nitrogen

(b) Steam (c¹) TJaermex

(

5

6

7

9

10

II

12

Add' Opning stock Less: Clrstngncck

TSTOTES :

P R O F O R MA 'R'

Name of the Company . • . •

Name and address of the Polysestcr factory . . ..

Statement showing the cost of production of Polyester fibre/Polyester tops Polyester fila- ment yarn during the year ending . . ..

Product •

Quality .

Denier :

polyester chips c insumed Production

Tonnes

Polyester fibre. . . . . . . .

Polyester filament yarn . . . . . . , ,

Waste %

Cost per Kg.

Rate

Particulars Quantity

Total Cost

s.

(Rs.)

(Rs.)

(Units)

No.

previous Year (Rs.)

C u r r e nt Year (Rs.)

ft

7 i

5

4

2 3

Materials

i. A

Ca) Polyester chips transferred

from Proforma 'A' . ..

(b) Polyester chips purchasedj if

any

2. Process Materials'Chemicals (to be specified)

Jtihnes

3- I

. . .

(a) Nitrogen

. ..

( 6) A ir c o n d i t i o n i ng . . . . ..

(c) Power

(d) G i m p r c s s cd A ir . . . .

(is) T h e r m cx .

. ..

Q) S t e am

(g) W a t er

S a l a r i es a nd w a g es . . .

4-

B o b b i ns . . . ..

5-

P a p er c o n es . . . ..

. . ..

6.

Cops

7-

. ..

Other Works overheads . . ..

8.

•

Repairs & Maintenance

9-

. . .

. . . ..

10. Research & Development . . . ..

I I. Deprecation . , , . , ,

12. Share of Administrative overheads

Total

Less : Credit for

13-

(a) Spinning Waste

(b) Other wastes

14. Adjustment for opening and doling

Stock of work-m-progrets

15- Stock Adjustments Add . Opening Stock Less : Closing Stock , . —

16. Total cost of Polyester fibre' Polyester tops Polyester filament yarn transferred to Proforma 'D'

NOTES

(1) In the case of Polyester fibre got converted into top¹;, the appropriate additionil expenses from tow to top shall be added in a separate cost statement maintained for the purpose. If Polyester fibre or yarn is manufactured directly from Dimethyl tcrephthalate and Ethylcne glycol, the costs thereof may be substituted under item 1 with tull details relating to Proforma 'A' in respect of lelevant items upto the stage o f spinning.

(2) Separate cost statements shall be maintained for each quality and denier of Polyester fibre/Polyester filament yarn Separate cost statements, shall also be maintained for production under alternate processes

(3) The cost of bobbins charged shall be based on their life and be reasonable. Proper accounts shall be maintained for returnable cops re-used and cturg es therefore shall be on reasonable basis. If cops are manufactured by the company, pro per records showing the cost of cops manufactured shall also be maintained.

(4) Credit for spinning waste other wastes shall be reasonable.

(5) If the same spinning machines are used for manufacture of any other synthetic yam, appropriate share of the expenses shall be charged to Polyester filament yarn produced and separate cost statements shall be maintained therefor m the Proforou

(6) Extra cost incurred, if any, for special treatments shall be shown separately in relevant cost statements.

(7) Bonus to employees other than incentive bonus, provision for statutory gratuity slnll bo shown in Proforma 'C* only and not in any other Proforma.

PROFORMA 'C

Name of the Company-

,—, ,

Name and address of the Polyester factory

• • . •

Statement showing the cost of sales of Polyester fibre'Polyester fibre tops/Polyester filament yarn (quantity of fibre/Polyester filament yam to be specified) packed and sold during the year ending • • . - •

Current year

Previous Year

Quantity in

Quantity in Kilograms

Kilograms I. 2. 3- 4.

Q u a n t i ty p a c k ed . . . .. Q u a n t i ty s o ld . . . .. Size of p a c k i ng . . . .. T y pe of w i n d i n g: H a n ks f C o n e s / C o p s / T o ps (in the case of Polyester yarn) D e n i er . . . . . ..

5-

Cost per Kilogram S.

Particulars

Quantity Rate

No.

(Rs.)

Total Cost (Rs.)

Current Previous year year (Rs.) (Rs.)

I

6 7 2 3

4

5

i. Cost of Polyester fibre/Polyester fibre tops'Polyester filament yarn transferred from Proforma B\

*2.

Packing Cost :

(a) Packing Materials :

(i) Polythene shect'jute pack sheet . . ..

(n) Cones

(in) Wooden Boxes .

(IV) Card Board Boxes

(v) Other packing materials

(b) Salaries and Wages .

(c) Repairs and Maintenance .

(d) Other overheads

(e) Depreciation

Total : .

3- Stock Adjustments : (Packed goods only)

Add : Opening Stock Less : Closing Stock

Cost of Packed quantity transferred

to—

( a) S a l es . . .. (b) Self Consumption, if any.

4- Setting and Distribution Expenses (For quantities sold only)

(l) Salaries and Wages (n) Commission to Selling Agent*..

• Separate records of packing expenses incurred on Polyester fibre sold in thfc form of tops shall be maintained.

1 23

4 5 6 7

(111) Freight and transport charges- less recovered from customers

(IV) Loading and unloading charges . . ..

(v) Godown rent (vi) Retail sales office expenses

such as rent etc., if any

(vii) Other expenses . (vm) Share of Administration over-

5. Total cost including selling and

distribution expenses

6. Interest charges 7. Annual Bonus to employees . 8. Provision for statutory gratuity

9. Other expenses not included in

1 I n cost (to be specified) . . • Total

10. Lesa : Other incomes not consi- dered in cost (Items to be speci- fied) . . ..

11. Total expenses excluding excise

duty for qu>intiry sold within the country m the form of hunks/cones cops •

12. Sales realisation excluding excise duty for quantity sold within the country :

(a) At prices under voluntary

agreement

(b) At prices under free sale

13. Margin : (1) for voluntary agree-

ment

(2) for free Bale pnee.

NOTES:

(1) Separate cost statements shall be maintained in respect of each quantity of Polyester fibre/Polyester filament yarn manufactured and sold and each type of winding like banks, cones or cops

(2) Separate cost statements shall be maintained for the respective production obtained under alternative processes.

(3) The apportionment of common selling and distribution expenses to the product under relerence in the case of multi-product units shall be equitable and consistent.

(4) Interest charges, actually incurred shall only be shown against item 7.

(5) Bonus to employees other than incentive bonus, provision for statutory gratuity and interest charges shall be shown separately in this Proforma only and not in any other Proforma.

(6) Sales realisation shall be shown separately for each type of Polyester fibre'Polyester filament yarn of different and uses and deniers sold against item 13 of this Proforma.

(7) Separate cost statements under this proforma (Suitably modified) shall be maintained in respect of Polyester fibrc/Polycster filament yarn exported wherein expenses incurred on exports and incentives earned thereou shall be shown.

(8) Sales realisation under item 13 above should indicate the board details such as sales to actual users/exporters/as per Textile Commissioner's Orders; or as per voluntary agree- ment with weavers and at free sale price.

(9) Self consumption, if any, shall be shown separately.

(10) Expenses incurred on brand promotion shall be excluded from costs and charged to profits directly.

PROFORMA 'D'

Name of the Company . .

.

TsTame and address of the Polyester factory . . .— •

Statement showing the total production and allocation of total actual expenses and income of the company between Polyester fibre/Polyester filament yam and other activities for the ycai ending . ,

.... , , . ,

Polyester fibre

filament

Polyester yarn

A. Production date

Previous

Current year year

Current Previous year year

i. Licensed Capacity . . ..

2 Installed Capacity (Basis to be indicated)

Budgeted capacity (Bails to be indicated)

3-

4- Actual utilisation/production during the year .

,

Percentage of (4) to (2)

5-

6. Percentage of (4) to (3)

B. AUu^itioa of total expenses and income for the year ending

Share applical ale

Particulars

Polyester

s. No.

Total actual expenses fibre

Polyester yarn

Other activities

(Rs.)

(Rs)

C*U.)

(Rs)

1

2

6

3

5

4

1. Raw materials consumed

2. Process materials/Chemicals consumed

Packing materials

3-

Salaries & wages .

.

4-

Utilities

'5-

'6. Stores and spares

Repairs & Maintenance .

7-

S. Other worka overheads .

I

2

3 4 5 6

9. Resejrch & Development expenses .

10 Depreciation . . ..

II Administration overheads

Total .

_.

12, Adjustments for different between opening

and closing balance of work-in-progress

Total

Less : Credits for recoveries :

13-

(0 By-products .

(11) Spinning wastes .

(m) Others

Packing cost

14-

Stock Adjustments for difference between

15-

opening and closing stock

Total

16 Selling & Distribution expenses

Total . . . ..

17- Annual bonus to employees other than Incentive bonus . . ..

18 Provision for statutory gratuity

Interest charges . ..

19.

2 0. Other expenses not included in cost

(Items to be specified) —

2 1. Less : Other incomes not considered in

cost (Items to be specified)

22. T o t al excluding excise d u ty

D e d u ct export benefits, if a ny . . -

23.

N et sales realisation . . ..

24.

(excluding excise d u t y)

25. Margin

NOTE :— All Items of income and expenditure in this proforma shall be reconciled with the financla accounts for the relevant period.

PROFORMA 'E'

"Name of the Company

"Name and address of the Polyester Factory .

Statement showing reasons for loss of production during the year ending . . .

• . .

Name of the Section (*) (e g. Polyester fibre, Polyester filament yam, Polymerisation unit,

power house, air conditioning unit, boiler umtj any other unit)

Under utilisation

Reasons for loss of production

REMARKS J

Production

losses

of Installed Capacity (Percentage)

icate

i. Routing plant maintenance (Please ind the nature of maintenance)

2. Unforseen break-down of plant and machinery .

. .

Shortage of raw materials

3

Power failure

4-

n Any other reasons