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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. 107] NEW DELHI, FRIDAY, APRIL 1,1977 CHAITRA II, 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 1st April 1977

THE COST ACCOUNTING RECORDS (NYLON) RULES, 1977

G.S.R. 157(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 following rules, namely —

1 Short title and Commencement—(1) These rules may be called the Cost Accounting Records (Nylon) 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 production!

processing or manufacturing of any of the following Nylon products, namely (a) Nylon Yam (b) Nylon Tyre Yarn/Cord (c) Nylon tyre cord fabric.

Provided further that if the said company manufactures in addition to Nyloa Yarns, any other product such as polyster filament yarn, using the same plant or machinery, fully or partly, these rules shall apply to such products also

(561)

3. Maintenance

Provided that If the said company is manufacturing any other product (s) in addition to those referred to in rule 2 or is engaged in other activities, the parti- culars 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 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 sale of each product referred to in rule 2 during a financial year (hereinafter referred to as the relevant period) from the particulars entered therein, and every such book of account and the proforma specified in Schedule II shall be completed within ninety days from the end of the relevant period

(3) It shall be the duty of every person referred to in sub-section (0) and sub- section (7) of section 209 of the Conijjanies Act, 1958 (1 of 1956), to take all reason- able steps 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 ?ub- rule (3) of rule 3, shall, subject to the provisions of section 209 of the Companies Act, 1956 (1 of 1956), 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:

(a) Raw Materials.— (i) Proper records shall he maintained showing separately the quantity and cost of Caprolactum and other materials used in the manufacture of nylon/chips which are used In the manufacture of nylon yarn/nylon tyre yarn. Where Caprolactum is obtained from different sources the records shall be main- tained In such a manner that the cost of Caprolactum obtained from imported and indigenous sources is available separately. If Caprolactum is manufactured by the company, detailed records indicating the break up of raw materials consumed for the production and conversion cost

(ii) The records shall also indicate the proportion of indigenous and imported Caprolactum used for the manufacture of different qualities of noylon yarn/nylon tyre yarn.

(ill) Proper records shall also be maintained showing the quantity and co&t of Caprolactum lecovered from waste obtained after the polymerisation and re- used for production of polymerised caprolactum chips or nylon chips

(IV) Proper records shall be maint/ilnpd to arrive at the cost of Caprolactum purchased "by the company Inclusive of all direct charges such as freight, insurance, octroi, etc Incurred upto works The records shall show the receipts, Issues and balances both in quantity and cost of Caprolactum separately for Indigenous and imported purchases and for different qualities

If polyster filament yarn is also produced by the company using the same plant and machinery, similar records as mentioned m para I(i) to (iv) above shall be maintained for Polvster chips In case Polyster Chips are manufactured, similar records for Dimethyl terephthatate, ethyleneglycol, recovered methanol and catalyst shall also be maintained.

(b) Process chemicals—Proper records shall be maintained to show the re- ceipts, issues and balances both in quantities and cost of each item of process che- micals such as Acetic Acid, Titanium di-oxide, etc The costs shall include all direct

charges upto the works wherever specifically incurred. The Issues shall be properly identified with the departments, cost centres and products manufactured. Where these process chemicals are produced by the company, separate records showing the cost of manufacture of each such chemical indicating the break-up of raw metenals consumed for the production and conversion cost shall be maintained In such details as may enable the company to determine the cost of such process chemicals produced

(c) Recoveries of •process chemicals—PropLr records shall be maintained indi- cating the quantity of chemicals recovered in the different processes, In the case of certain chemicals thus recovered which cannot be re-used in process due to lower chemical content and are sold, the realisations from the same shall be re- corded and adjusted against the cost of consumption of respective chemicals, if practicable, or adjusted against the procebs concerned on a reasonable basis.

In case further processing is necessary to make these chemicals useable or sale- able, proper records of cost incurred for such further processing shall be main- tained If such further processing is done by an outside agency, records to show the quantity send for processing, quantity processed and the cost Involved thereon shall be maintained in detail

(d) 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 spare* referred to in rule 2. The costs shown shall Include all direct charges upto works wherever specifically Incurred

(li) In the case of consumable stores and small tools the costs of which are in- significant, the company may, if it so desires, maintain such records for the main .arroups of such items

dii) The cost of consumable stores, small tools and machinery spaces issued shall be charged to the relevant heads of account such as production, repairs to plant and machinery and repairs 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.—Proraer records shall be maintained showing the quantity and cost of wastages, spoilages, rejections and Losses of raw materials, process materials, consumable stores, small tools and machinery spares, whether in transit, storage, manufacture or for other reasons.

The total waste in terms of Caprolactum in the polymerisation process as well as wo stage incurred In the spinning process shall be recorded separately to enable control of such wastages. If facilities for recovery of Caprolactum from the wash water and spinning wastes exist, the records shall also show the extent of Caprolac- tum recovered and the net losses in terms of both quantity and value The method followed for the adjustments of the above losses in the cost of production of Nylon Yarn/Nylon Tyre Yarn shall be indicated In the cost records

Similar records regarding wastes and recovery shall also obe maintained in

respect of Polyster yarn, if manufactured 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 department and cost centre

(I) piece-rate wages earned; (II) Incentive wages earned, either individually or collectively as production

bonus or under any other scheme based on output,

(in) overtime wages earned, (iv) earnings of casual labour engaged on casual work

(b) Idle time shall be separately recorded under classified headings In Pro- forma F of Schedule II indicating the 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.

m. Service department expenses:

Detailed recordc shall be maintained to indicate expenses incurred for each service department or cost centre. These expenses s>hali be apportioned to other services and production departments on an' equitable basis, and applied consis- tently.

IV. Utilities

(1) Nitrogen—Proper records showing the cost of nitrogen purchased by the company for use in the production of Nylon chops Nylon yarn/Nylon tyre yarn and Polyster filament yarn shall be maintained. These records shall show the cost of Nitrogen delivered upto the works including all direct charges. If Nitrogen is produced by the company, proper recoids showing the quantity and cost of nitrogen produced shall be maintained in such details as to enable the company to furnish necessary particulars in Annexure I appended to thin Sche- dule or in a forrn as near thereto as far as possible. The records shall aUo show the cost of Nitrogen' consumed by the Nylon yarn and Nylon tyro yarn umt3 separately. The cost of Nitrogen shall be chaiged to the individual pro- ducts on a reasonable basis and applied consistently.

(ii) Steam •—If steam is raised by the Nylon factory of the company proper rocords showing the quantity and cost of steam raised and consumed for the production of Nylon yarn and Nylon tyre yarn and polyater Filament v "n shall be maintained in such details as may enable the compan to furnish the necessary particulars m Anexure II to this Schedule The cost of steam consumed by the Nylon factory and other units of the company if any, shall be calculated on a reasonable basis and applied consistently. The, cost of steam charged to Nylon chips used for the manufacture of Nylon yarn/Nylon tyre yarn and other activi- ties shall also be on a reasonable basis and applied consistently.

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

(lii) Power—Proper records shall be maintained for the quantity and cost of power purchased. If any expenses are included for the distribution of power this purchased, proper records to show such expenses shall be maintained. In case power is generated and supplied by any other unit of the company, proper records shall be maintained to show the quantity and cost of nower supplied Where power is also generated by the company. Adequate records shall be maintained to show the cost of power generated m a similar proforma as for steam. The rate charged by the supplying unit shall be °n reasonable basis The records shall also show the consumption of power by the various departments and cost centres The cost of power allocated to the cost centres and further to the individual products shall be on a reasonable basis and applied consistently.

(ivj Chilled Water,—Proper records shall be maintained to show the cost of chilled water chargeable to the Nylon chips manufactured and used for the production of different qualities of Nylon yam/Nylon tyre va rn The cost of chilled water allocated to the cost centres and further to the individual products Shall be on a leasonable basis and applied consistently

(v) AiT-conditionvng.—Proper records shall be maintained to enable deter- mination of the cost of air conditioning and its distribution to different depart- ments and coftt centres. These records shall be maintained in such details as may enable the company to furnish the necessary particulars in Annexure III to this Schedule.

V. Workshop/repairs and maintenance:

Proper records showing the expenditure incurred by the wrokshop under different hads and on repairs and maintenance bv the various departments and CD3t centres shall be maintained The records shall also indicate the basis of charging the workshop expenses to different departments and cost centres.

Expenditure on major repair works from which benefit is likejy 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 the various products manufactured, during the relevant period.

5*5

Expenditure incurred on works of a capital nature shall be capitalised. The coat of such jobs shall include the expenditure on material, labour and a share of the overheads The jobs earned out by the workshop of the Nylon factory for other units of the company and vice-versa *hall be charged/credited 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 xnter-aha indicate the cost of each item of assets including installation charges, if any, the date of installation and rate of depreciation In retpect 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 da^ of the financial year beginnine 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 tne different departments and COB\ centres shall not be less than the amount of depreciation chargeable in accor- dance with the provisions of sub-section (2) of Section 205 of the Companies Act, 1B56 (1 of 1956), and shall relate to plant, machinery and other fixed assets utilised in such departments and coat centres In case tnp amount of deprecia- tion charged in the cost records in any financial year is higher than the amount of depreciation chargeable under the aforesaid provisions of the Companies Act, the amount so charged in excess and the incidence of such excels depreciation and its impact on tne unit cost of production of the individual Nylon products manufactured shall be indicated clearly in the cost records. The cumulative depreciation changed in the cost records against anv individual item of asset shall not, however, exceed the original cost of the respective asset.

VIL Overheads:

Proper records shall b"> maintained showing the various items of expensea cwnprialng the overheads. These expenses shall be analysed, classified end grouped into works, administration ind selling and distribution overheads. Tho methods followed for allocation and absorption of the abovp categories of overheads to the Departments/Cost Cftntres/Produets shall be indicated in the cost records

Where the company is engaged m the manufacture of anv other productg in addition to Nylon products, the record., shall cleaT-ly indicale the basis followed for apportionment of the common overheads including head office expenses of the company to the Nylon products activity, other activities and capital works The basis followed for apportionment of the overheads shall be equitable In case, any expense included in the above categories of overheads can be identified with a particular activity/product such expenses .shall be swegated and charged to the relevant activity/product in the first instance and thereafter the remaining common expenses under the above categories of overheads shall be allocated on ft reasonable basis end applied consistently.

The details of administration, oelling and distribution expensei and share thereof applicable to Nylon activity and to individual Nylon products shall be maintained in such R manner as to enable thp ™mmn^ to fPI uo the particulars in¹ the cost of production and cost of sales statements in Proformae 'A' to !>' of Schedule II.

Vll(a). Expenses on Export;

Records showing the expenses incurred on export of Nvlon products, if any, shall be separately maintained ?t> that the mat nf -^no^t wiim can be determined correctly The expenses incurred on exports a" w"11 as anv pxonrt incentives earned shall be reflected in the cost statements relating to export sales. Vm, Packing;

PTIITKT records Rhnii be mn^+iined showma the uuantity and cost of various packing materials such as bobbins, cops paper boxes, -wooden and card board boxf>" ft?, used for mckinp NVlnn vRrn/Nvion +ir*-" VRTTI nnivstpv filament varn. Records shall also be maintained showing the total quantity of first stage bobbins used and for returnable enr* TICMUM qn^ r ^ - n .^ It T^O+IIIV prlpc. a re manvi, factured by the company, detailed records Indicating the break up of raw mate- rials consumed for the production end conversion post shall be maintained to

enable determination of cost of such cops produced. Records shall also be maintained showing wages and other expenses .incurred m respect of different types and sizes of packages adopted for marketing Nylon varn and other pro- ducts Where such expenses ure incurred in common the basis of apportion- ment of expenses between different Nylon products shall be equitable and clearly- indicated m the cost records and applied consistently.

Separate records of special expenses incurred on a particular export packing in respect of Nylon yarn/Nylon tyre yarn cord/fabric if any, shall be maintained indicating special expenses so that the cost of export sales can be determined correctly

IX. Research and development expenses:

Proper records showing the details of expenses incurred by the company for the development of existing products or new products or processes, if any, shall be maintained separately. Such records shall indicate the expense$ 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 development of the plant facilities, the appropriate share thereof shall be capi- talised. The method of charging research and development expenses to the cost of production shall be indicated in the relevant cost records and such expenses shall be charged to Nylon Yarn of different end uses, Nylon tyre yarn and polys- ter filament yarn on a reasonable basis.

Wherever the utility of such research extends over more than one financial year such expenses 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 au'd Development department for fur- nishing technical know-how to outsiders shall 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, Nylon Goods transferred for self-consumption:

If Nylon yarn/Nylon tyre yarn is used for self consumption proper record* shall be maintained showing the quantity and cost of each item of Nylon pro- ducts transferred to another department/unit of the company for self consump- tion. The rates at which such transfers are effected shall be at cost.

Self consumption of finished Nylon products by the company for other uses shall also be shown separately in Proformae 'C¹ and 'D' indicating the quantity, rate and value thereof.

XI. Work-in-progress and finished goods stock;

The method followed for determining the cost of work in progress and finished 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 be followed consistently Records showing the value of work-in-progress and quantities and cost of finished items shall be maintained in such details as to enable the company to fill up the particulars in Proforma 'G' of Schedule II. XH. Cost statements;

(i) Separate cost statements showing the cost of production of Nylon chips shall be maintained in Proforma 'A' or m a form as near thereto as practicable

(u) Cost statements showing the cost of production and cost of sales of Nylon yarn Nylon tyre yarn fabric and Polyster filament yarn shall be maintained in Proformae *B', 'C and 'D' respectively. Such cost statements shall be main- tained for the production obtained under extrusion and grid processes separately. The cost statements shall also be maintained separately m respect of eqch quality of Nylon yarn like plain, semi dull, mono filaments, multi-filament and for yarn used for fishing nets, parachutes as well as for each denier of Nylon yarn,

('lii) Cost statements shall also be maintained for each quality of tyre yarn produced in Proformae 'B' and 'D'. If Nylon tyre cord and fabrics are algo manufactured and sold by the company similar cost statements incorporating

the additional expenses incurred for the manufacture and sale of tyre cord/fab- ncs bhall be maintained in Prolorma "D\

(Iv) Export of Nylon yarn/Nylon tyro yarn/cord/fabrics shall be exhibited sepal ateiy m respective cost .statements and the same shall be excluded from the tost statements meant for sale in the internal market

tv) Similar cost statements shall b,; in^j^t.'ined for polyester filament yarn of diffeient qualmes and demers produced by substituting appropriate raw materials in a suitable manner in the Proformae 'B' and 'C'.

XIII. Reconciliation of cost and financial accounts:

The cost records shall be reconciled preferably periodically with the finan- cial books of account so as to ensure accuracy. Variations, if any, shall be clear- ly indicated and explained The period for which tuch reconciliation is effected shall not exceed the period of the financial year of the company The reconcilia- tion shall bo done in such u manner that the profitability of the product under lefeience can be correctly adjudged and reconciled with the overall profits of the company.

A statement showing the total production as well as total expenses incurred and income received by the company and the share applicable to Nylon products thall be maintained m Ptoforma 'E duly reconciled with the financial accounts.

XIV 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 product under such a system The method followed for adjusting 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 heads in the respective proformae of Sche- dule II The reasons for the variances shall be detailed in the cost records. XV. 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, con- sumable stores, machinery spares chemicals, fuels, finished goods and fixed assets. Reasons for shortages/surpluses arising out of such verification and the method followed for adjusting the same in the cost of the products shall be indi- cated in the records XVI, 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 management as defined under section 37O(1))-B of the Companies Act, 195B (1 of 1958), or 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 and by-

products;

(b) utilisation of plant facilities, (c) supply of utilities; (d) administrative, technical, managerial and any other consultancy services;

and

(e) sale of finished products

These records shall indicate the basis followed for arriving at the rates charg- ed between them so as to enable determination' of the reasonableness of the rates charged/paid for such services XVII. Statistical records;

Data such as loss of Caprolactum different types of wastes occuring in poly- merisation, spinning and other stages shall be maintained to enable control of process losses Data regarding plant utilisation for different types of yarn pro- duced including yarn produced from regenerated cellulosic fibre or non-cellu- losic fibre permitted under Textile Commissioner Order No, 2(10)-64 Control,

dated the 14th August, 1961, if any. shall also be kept. Statistical data regard- ing available machine hours/Tepindle houria and actual machine hours/spindle hours worked shall also be maintained Reasons for plant stoppages shall also be recorded under classified headings as per proforma 'G'.

Records as will enable the company to identify, as far as possible, the capital employed separately for Nylon yarn. Nylon Tyre yarn and other activities shall also be maintained Fresh investments on fixed assets that.have not contributed to the production during the relevant period shall also be indicated in the re~ cords. The records shall in addition show assets added as replacement, and that added for increasing existing capacity,

Statistical and other records maintained in accordance with the provisions of this Schedule and Schedule II shall be such as to enabled 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 thP cost Audit (Report) Rules, 1968 as amended from time to time. Such records shall be reconciled with the returns submitted to the Textile Commissioner under the Art Silk Textiles (Production & Distribution) Control OrderJ_1962 and Notifica- tions issued thereunder as well as the returns submitted to excise and other authorities

ANNEXURE I

Name of rhr Company Namo nud addrcii "f r>>c Nylon factory .

Statement showing the cost of Nitrogen prod iced and consumed during the year ending .. Annual installed capacity : No. of unit* produced . . . Th NM3 No, of units purchased . . Th NM3 Consumption including other louses . . Th NM3 Net units consumed . . .. Th NM3

P a r t i c u l a rs

Qiaiitv (Units)

Rate (Rs.l

Amount (R".) SI No,

" r 1

2

1

5

4

(T>) A ci a t ed A l um i i i um ( c) M o l e c u l ar s i e v es . .. ( d) O t h er m a t e r i a ls ( to br s p e c i f i e d) C o n s u m a b le S t o r es . . . .. Other services :

3-

4- 5. 6.

7-

T O T AL

. . ..

Nitrogen purchared

B.

•

•

TOTAL (A+B) Less : Recoveries, if any

TOTAL

Coat per unit (Purchased and produced)

Delete items not applicable

Consumed in :

Quantity

Amount (EU.)

(a) Nylon Yam;

• • • *

• P • t

(i) Polymerisation (U) Spinning

(b) Nylon Tyre Yarn : (i) Polymerisation (ii) Spinning

• • " #

(c) Polyester Filament Yarn : fi) Polymerisation . (ii) Spinning

(d) Other units

TOTAL

NOTE :—(i) Bonus to employees other than incentive bonus, provision for statutory gratuity and iritereBt charges shall be shown in proforma 'C* and TD' only.^,

ANNEXURE II

Name of the Company Name and address of the Nylon Factory

Statement showing the cost of steam raised 'consumed during the year ending

Installed steam generation capacity : Tonnes at Kg./hr. at Kg./cm 2g.

Quantity of Steam raised Tonnes pressure : Kg'cm2g

Rate

s.

Quantity CUnita)

Particulars

Amount (Re.)

(Rs.)

No.

Ct st'per tonne oi steam raised

2

6 i

4

5

3

i Water

Fuels :

Coal " * * • •

Fuel Oil

. . ..

Electricity • * • •

(a) (b) (c)

Other fuels, if any (to be specified).

(d)

O t h er D i r e ct E x p e n s es ( S u ch as Boiler I n s-

4

5

6 7

8 T O T AL . . ..

9

10 II i Nyoln Yarn Plant •

2 •

³ •

NOTES :

57i

ANNEXURE III

Name of the Company

Name and addrets of the Nylon Factory

. . . ..

Statrnicnt showing the cost of Air Conditioning during the year ending

Annual installed capacity • Million B.T.U. (Basis to be Indicaed)

Average hourly workload • B.T.U./hour

No. of working woikers during the year Hours

P a r t i c u l ar

s

Rates (RB.)

Quantity (Units)

Amount (Rs.) No.

i

2

3

4

5

i C h e m i c a ls . ..

. ..

" S a l a r i es a nd W a g es . . . ..

*I

Power and other services:

3

( a) P o w ei

( b) W a t er

C o n s u m a b le s t o r es , . . , ..

4

Repairs and maintenance

5

W o r ks o v e r h e a ds .

. ..

6

D e p r e c i a t i on

. . . . . ..

7

T O T AL C O ST

Apportionment

Percentage

Cost (Rs.)

I Nylon Yarn :

( i)  P o l y m e r i s a t i on                       .         .          .         .         ..
( l l)  S p i n n i ng                                  .         .         .         .         ..
( l l i) C o n i ng               .                                           .         .        ..

2 Nylon Tyre Yarn .

(l) Polymerisation

(ii) Spinning (ill) Coning

Polyester Filament Yarn

3

(i) Polymerisation (ii) Spinning (m) Coning

A

f Others } . .

NOTES :

(1) The apportionment oE Air Conditioning COBI to the different departments and cost centres shall be done on scientific and reasonable basis and applied consistently.

(2) Bonus to employees other than Incentive bonus} provision for gratuity and intercut charges shall be shown in Proforma 'C and 'D' only.

SCHEDULE II

( SM rule 3)

PROFORMA 'A'

Name of the Company Name and address of Nylon Factory

Statement showing the cost of production of Nylon chips produced for the manufacture of

Nylon Yarn/Nylon Tyre Yarn for the year ending

1. Installed Capacity

Tonnes

2. Budgeted capacity

T o n n es

3. Achieved capacity (Production) . . .. Tonnes

4. Caprolactum consumed

Tonnes

5. Production of Nylon chips

T o n n os

6. W a s te % on Input

Cost per tonne

Particulars

(tfSts)

Rate (R"0

s. No.

Total Cost (Rs.)

Previous year (Rs.)

Current year (Rs.)

2

6

7

3

4

5

r

3

4

I

a

7

5 6

3 /' 4

(b) Steam

(c) Power

(d) Chilled Water

Stores and spares

5-

6. Other Works Overheads

Repairs & Maintenance

7-

t Research & Development tn-

penscs . . ..

Depreciation

9-

10. Share of Administration Over-

... . •—

heads ' . . . —

TOTAL .

II

... _. .

LeBS credits for recoveries, if any, ', , ,. . . .

r "• Adjustment for opening and clos- ing stock of work-in-progress

Stock adjustments:

13

Add : Opening Stock

. r 1 1 -1

._*

• 1 ^ Less -. Closing Stock . -

14. Total CoBt of 'Nylon chips trans- ferred for spinning Nylon YarnfNylon Tyre Yarn

NOTES :

(1) The quantity of Caprolactum recovered/realised should be recorded on a reason- able basis in addition to quantity of Irrecoverable -waste.

(2) Separate cost statements shall be maintained in respect of Nylon chips manufactured for the production of Nylon textile yarn and Nylon tyre yam.

(3) The basis on -which the cost of Caprolactom recovered has been arrived at Bhall be indicated

in the records.

(4) Records shall be maintained to show the nylon chips sold, if any, Indicating share of selling expenses and scales realisation.

(5) The apportionment of Head Office overheads and other common overheads to the pro-

duct under reference shall be equitable.

(6) Bonus to employees other than incentive bonus provision for statutory gratuity and interest charges shall be shown in Proforma "C '& D' only.

PROFORMA 'B'

Name of the Company

Name and address of the Nylon factory

Statement showing the cost of production of nylon yarn/nylon tyre yarn/polyester filament

Process Extension/GridJOther Processes,

if any

Product :

Production

Category :

Denier:

Previous year

Current year

Nylon chips/Polyester chips consumed :

Production :

Tonnes TS5o. o£ hours of operation

Tonnes No. of hours of operation

Nylon yam|Nylon tyre yarn/Polyester

Filament yam

Waste % on input:

Cost per Kg.

Particulars

Q u a n t i ty ( U n i t s)

R a te (Rs.)

S. No.

Total cost (Rs.)

Previous year

(Rs.)

Current year (Rs.)

i

2

6

7

5

4

Materials :

(a) Nylon chips transferred from Proforma 'A'

(b) Nylon chips purchased, if

any

*(c) Polyester chips

Process Materials (to be speci-

fied)

Utilities :

3-

(a) N i t r o g en - . .. (b) Airconditioning (c) P o w er (d) O t h e r s, . ..

Salaries & wages

4-

B o b b i ns . . ..

5- 6. P a p er cones C o ps . . . ..

7- 8. O t h er w o r ks o v e r h e a ds .

R e p a i rs & M a i n t e n a n ce

9-

R e s e a r ch & D e v e l o p m e nt E x- p e n s es . . ..

Depreciation . . .

I I.

Share of Administrative over-

1 2.

,__

_ —

heads . . • —

TOTAL

Less : Credit for :

(a) Spinning weste . (b) Other wastes . -

13-

Adjustments for opening and closing stock of work-in-pro- gress . . ..

14.

1 1 1

Stock Adjustments : Add : Opening stock Less : Closing stock . . —

15-

-

Cost of Nylon yarn/Nylon tyre yarn/Polyester filament yarn transferred to Proforma 'C' & 'D> . . ..

NOTES :

(1) *In case poly ster chips are produced appropriate cost statement similar to Proforma 'A

shall be maintained.

(2) Separate cost statements shall be maintained for each category like Textile Nylon Yam, Nylon Yarn used for fishing nets, parachutes and for each denier of Nylon Yarn/ Nylon tyre yarnfPolyester filament yarn. Separate cost statements shall also be main- tained for production under alternate processes.

(3) The basis on which denier wise cost is ascertained shall be eqmtable and consistant.

The basis adopted shall be revealed in the records.

(4~) The cost of bobbins charged shall be based on their life and be realistic. Proper counts shall be maintained for returnable cops reused and charges therefor shall be on realistic basis. If Nylon cops are manufactured by the companv, pr oper records showing the cost of cops manufactured shall also be maintained.

(5) Credit for spinning wastefother wastes shall be reasonable. (6) Extra cost incurred, if any for special treatments like crimping shall be shown separately

in relevant cost statements.

(7) Bonus to employees other than incentive bonus, provision for statutory gratuity shall be

shown in Proforma 'C and 'D' only and not in any other Proforma.

PROFORMA "C

Name of the Company Name and address of the Nylon Factory

Statement showing the cost of sales of Nylon yarnJPolye&ter filament yarn (.category of Nylon yarnfPolyester filament yarn to be specified) Packed and sold during the year ending

Current year

Previous year

(Quantity)

(Quantity")

Kg.

Kg.

Hanks/Cones/Cops

1. Quantity packed

Quantity sold

Cost per Kg.

Quantity

Particulars C

S. No.

Previous

Rate (Rs.)

Total cost (R".)

Current year (Rfc)

yeat CRsO

6

2

7

4

i

i.

2-

—™

TOTAL .

(iii) Freight and transport charges less recovered from customers

(iv) Loading and unloading

charges .

(v) Godown rent (vi) Retail sales office expen-

ses

(vn") Other expenses

(viil) Share of Administration

overheads

6. TVal cost including selling and

distribution expenses

Interest charges

7 8.

9-

10.

Annual Bonus to employees Provision for statutory gratuity Other expenses not included in

cost (to be specified)

TOTAL

Less : Other incomes not con-

i i-

sidered in cost (to be specified)

i a. Total expenses excluding excise duty for quantity sold within the country

i3- Sales realisutior excluding excise duty for quantity sold within the country in the form of banks/concs|cop8 '.

(a) At prices under voluntary

agreement

(b) At prices under free sales

Margin : (1) Under voluntary

14.

agreement

(2) Under free sale

price

NOTES:

(1) Separate coit statements shall be maintained in respect of each category of Nylon Yarn/ Polyester Filamsnc Yam manufactured anl sold a'll 'a;h tvpj of winimg like hanks, cones or cops

(2) Only appropriate packing expenses are to be charged In cue of 9;lf-c:>n9umption.

(3) Separate cost statements shall be maintained for the respective production obtained under Extrusion of Grid or other alternative processes

(4) The apportionment of common selling and distribution empjnw to th; prol ict m i or

reference in the case of multi-product unit* shall be equitable aa.1 cjimnji .

(5) Interest charges, actually incurred shall only be sin HA agumt item 7. (6) 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 othsr Froforma.

(7) Separate cost statements under this Proforma (suitably modified) shall be maintained in respect of Nylon Yarn/Polyster Filament Yarn exported wherein expenses incurred on exports and incentives earned thereon shall be shown.

(8) Expenses incurred on brand promotion Bhall be excluded from costs and charged to profits

and loss account direct.

PROFORMA 'D'

Name of the Company ,. Name and address of the Nylon Factory Statement showing the cost of sales of Nylon Tyre Yarn/Cord/Fabric (quality to be specified) packed and sold during the year ending

Current Year

PrcviouB Year

(Qty.) Kg.

(Qty) Kg.

(I Total tyre yarn input Tyre Cord produced Waste % of input Tyre Cord input Fabric output Waste % of input Quantity packed Quantity sold

(2 3 4 5 6) 7) 85

Particulars

Quantity Rate

Cost per Kg.

Total Cost

S. No.

Current Previous

(Rs.)

(Rs)

(Units) J

year

year

(Rs.) (Rs.)

2

6

4

5

7

3

Coat of Nylon Tyre Yarn trans- ferred from Proforma 'B' or tyre yarn/ cord *purchased

2 Expenses on Secondary conmg : (a) Salaries and wages

b) Powe: c) Repairs & maintenance 'd) Depreciation e) Other overheads

3

4-

Expenses on cord making : (a) Salaries & wages (b) Power fc) Repairs & maintenance (d) Depreciation (cj Other overheads Expenses on Fabric making . a) Cotton weft b) Salaries & wages c) Power d) Repairs & maintenance e) Depreciation f) Other overheads

(a) Adjustment for opening and

5-

closing work-m-progresi

(b) Stock adjustments Add : Opening itock Less : Closing stock

6. Packing expenses • (For quantity packed only) a) Cops b) Cones c) Bobbins d) Polls e) Wooden toxes

(f) Other materials, if any fg) Salaries & wgge" (n) Repairs & maintenance (i) Depreciation Q) Other overhead*

Total :

I

3 4 5 6 7

7-

• • Stock Adjustment* '. Add Opening stock Less : Closing stock

Total

Selling and Distribution Expenses ;

8.

(For quantities sold only) (a) Salaries and wages (b) Commission to selling agents (c) Freight and Transport charges —less recovered from customers (d) Loading and unloading charges (c) Other expenses (f) Share of administration overheads

Total cost including selling and

9

distribution expenses

10 Interest charges Annual bonus to emp'oyces

I I.

1 2. Provision for statutory gratuity Other expenses not included in

13-

cost Cto be specified)

Total

14. Less": Other incomes not consi-

dered in cost

(Items to be specified)

15- Total expenses excludihg excise duty for quantity sold within the country

16. Sales realisation for Nylon tyre yarn; cord, fabric exclud- ing excise duty for quantity sold withiin the country.

Margin

17

* For companies manufacturing Nylon, tyre cord fabric only.

NOTES :

(1) Delete items not applicable for any one product. (2) Separate cost state ments shall be maintained for each quantity of Nylon Tyre Yarn, Cord/ Fabrics manufactured and sold.

(3) The apportionment of common selling and distribution expenses to the. product under re-

ference in the case of multi-product units shall be equitable and consistent.

(4) Interest charges, actually incurred shall only be shown against item io. (5) Bonus to employees other than incentive bonus, provision for statutory grumpy aua interest charges ahll be shown separately in this Proforma only and not m any other Proforma.

(6) Separate cost statements under Prjforma (suitably modified) shall be maintained in respect of Nylon Tyre Yarn/Cord /Fabric- exported wherein expenses incurred on exports and incentive* earned thereon shall also be shown.

(7) If tyre yarn is got converted into fabric by outside parties, necessary records relating to conversion cost paid shall be maintained and the same indicated under item 4 of this Proforma.

{8) Adjustment for work-in-progress and finished stocks shall be made at different stages.

PROFORMA 'E'

. . . ..

Name of the Company Name and address of the Nylong Factory

Statement showing total production of Nylon Products and allocation of total rxpen^es and Iiicome of ttic coniptny bciwetn Nylon Yam/Nylon Type Yain/polyester Filamtnt Yarn and) other activities for the year ending ..

A. Production Data for the year ending ,

Polyester Filament yarn Nylon Yarn

Nylon Tyre Yarn

Previous year Current year

Current year

Previous year

Previous year

Current year

Qty. No. of

Qty. No. of

Qty. No. of

Qty. No. of

Qty. No. of hours opera- ted Qty., No. of hours oper- ted

houry opera- ted

hours opera- ted

hours opera- ted

hours opera- ted

I. Licensed Capacity 2. Installed Capacity (basis to be indicated) 3- Pudgeted capacity

i'basjs to be indicated)

4. Actual utilisation/production during the year

(basis to be indicated)

5. Percentage of (4) to (2) 6. Percentage of (4) to (3)

B. Allocation of total expenses and income for the year ending

Particulars

Share Applicable to

s.

No.

Total Actual expenses (Rs.)

Other activities (Rs)

Polyester Filament Yarn (Rs.)

Nylon Tyre Yarn (Rs.)

Nylon (• Tyre tYftrn (Rs.)

1

2

6

4

5

7

3

i.

2.

V

Raw materials consumed Process materials consumed Packing materials Salaries & wages

4-

5- 6.

7 8.

IS

Utilities Stores and spares Repaiis & maintenance Other works overheads Research & Development expense

9- 1 0,

Depreciation Administration overheads

I I,

Total

58i

I

2 3

4 5 6 7

12 Adjustments for difference between opening and closing balance of work-in-progress

Total

Less : Credits for recoveries

13

(i) Spinning wastes (u) Others

14 Packing cost Stock Adjustments for difference between

15

opening and closing stock

16 Selling and distribution expenses Annual bonus to employees other than

incentive bonus

18

20

Provision for statutory gratuity Interest charges Other expenses not included in cost

(Items to be specified)

21 Less ; Other incomes not considered in cost

(Items to be specified)

22

24

Total excluding excis? duty Deduct : Export benefits, if any Net sales realisation

(excluding excise duty")

Margin

25

NOTE :

All items of income and expenditure in this Proforma shall be reconciled with the financial accounts for the relevant period.

PROFORMA 'F

Name of the Company Name and address of the Nylon Factory , . .. . . . ..

Statement showing reas }ns for lois of production during the year ending Name of the Section (*) (e.g. Nylon yarn, Nylon tyre yarn, polyester filament yarn, poly- merisation unit, power house, air conditioning unit, boiler unit, any other)

Remarks

Production losses ]

Reasons for loss of production '.

Under utilisation of installed ca- pacity (Percen- tage)

2

1

3

4

[ I.

2.

3- 4- 5- 6.

Routine plant maintenance ("Please indicate the nature of maintenance) Unforeseen break-down of plant and machinery Shortage of raw materials Power failure Strike, lock-out, etc. Any other reasons

• Data in accordance with the above Proforma haj to bi maintained separately for each section mentioned above.

PROFORMA 'G*

Name of the Company

Name and address of the Nylon factory

, . ,, .

Statement showing the value of the work in progress at the end of the year..

(Particulars)

1. Opening work in progress as on

2. Add : Expenses relating to production of Nylon products referred to in rule 2 ., .,

Total

3. Less * Goat of production of the items referred to in rule 2

4. Closing work in progress as on . ..

II. Statement showing finished stock of Nylon yarn, Nylon tyre yarn, Polystcr filament yarn and other products as on

Type of products Production during] the year

Closing stock

Sold/consumed during the year

Physical stock ad- justment, if "ny|

Qty.

Qty

Qty. Cost Qty.

Cost Rs.

. Cost Rs.

Rs.

Cost Rs.

1

2

8

6

9

4

7

5

(1) (U)

a.

Cm)

NOTES :

58*

5"5

589"

6oi

60$

6oy

PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1977