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The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-Section (i)

PUBLISHED BY AUTHORITY

No. 29] NEW DELHI, SATURDAY, JANUARY 27. 1979/MAGHA 7, 1900

Separate paging is given to this Part in order that it may be filed as a separate compilation.

1131 GI/78—1

(73)

U31 GI/78—2

MINISTRY OF LAW, JUSTICE AND COMPANY

AFFAIRS

2. Application.—They shall apply to every company enga- ged in the production, processing oi mimuf actui ing of any type of dry cell batteries and components thereof.

(Department of Company Affairs)

NOTIFICATION

New Delhi, the 31st January, 1979

Sub :—Cost Accounting Record (Dry Cell Batteries) Rules.

1978.

G.S.R 45(E).—In exercise of the powers conferred by sub- section (1) of section 642 read with clause (d) of sub-section (1) of flection 209 of Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, namely :—

J. Short title and commencement,—(1) These rules may be called the Cost Accounting Records (Dry Cell Batteries) Rules, 1978.

(2) They shall come into force on the 1st day of February, 1979.

3. Maintenance of records .—tl) Every company to which these rules apply shall in respect of each of its financial year commencing on or after the commencement of these rules, keep proper books of account containing intor-alia the parti- culars specified in Schedules 1 and 11 annexed to these rules relating to the utilisation of materials, labour and other items of cost in so far as these arc applicable to the dry cell bat- teries and components thereof.

Provided that if the said company is manufacturing any other product or is engaged in other activities in addition to items referred to in rule 2, the particulars relating to the utilisation of materials, labour and other items of cost in so far as they are applicable lo such other products or activities shall not be included in tlie cost of dry cell batteries and components thereof.

(2) The books of account referred to in sub-rule (1) shall b" kept on a regular basia in such u way as to make it possible to calculate the cost of production and cost of sale

of all types of dry cell batteries referred to in rule 2 at the end of every quarter during a financial year (thereinafter) re- ferred to as the relevant period) as well as for the financial year as n whole from the piri'cular?¹ entered therein and every suoa oook, of UCGLJU ...IU U\C p.oforma specified in Schedule 11 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 Act to take all reasonable steps to secure compliance by the com- pany with the provisions, of sub-rules (1) and (2) in the same manner aa they are liable to maintain financial accounts re- quired under sub-section (I) of section 209 of the Act.

(4) Penalty.—If a company contravenes the provisions of rule 3 of these lules, the company and every officer thereof who is in default including the persons referred to in sub- rule (3) of rule 3, ahall subject to the provisions of section 209 of the Act be punishable with fine which may extend to five hundred rupees and where he contravention is a conti- nuing one, with a further fine which may extend to fifty- rupees for every day after the first during which the contra- vention continues.

SCHEDULE—I

(.See rule 3)

I. Materials

(a) Raw Materials.—(i) Proper records shall be maintained showing all the receipts, issues and balances both in quanti- ties and cost of zinc, manganese ore lead, electrolytic man- ganese di-oxide, cadmium, acetylene black, carbon rods prin- ted metal sheets, heat shrinking PVC tubes and other mate- rials purchased and used in the manufacture of dry cell batteries of different types and qualities. The costs of such raw materials shall include all direct charges incurred upto the works. Such records shall be maintained separately for purchases both from indigenous and imported sources.

(b) Manufactured Components and ingredients.—(1) Zinc Cans,—in the case of zinc cans manufactured by the com- pany, separate records, shall be maintained showing the cost of manufacture of each size of zinc can in such details as may enable the company to fill up the necessary particulars in Proforma 'A' of Schedule II or in a proforma as near thereto as may be possible.

(ii) Other components and ingredients.—In the case of other components like carbon rods, brass caps, metal jackets, paper covers, washers and ingredients like electrolytic manganese- dioxide, electrol>te paste manufactured by the company the records shall be maintained showing the cost of manufacture of such items in Proforma B of Schedule II or in a proforma as near thereto as practicable. If, however the value of any such component constitutes less than 5 per cent of the value of direct material cost including primary packing materials of any type of dry cell battery the detailed costing thereof shall not be necessary.

(iii) Records of quantities and costs of components and ingredients manufactured, accepted, rejected, consumed and balances sha1! be kepi separately for each batch. The method of dealing with losses on account of rejection in the calcula- tion of costs shall be indicated in the cost records.

(iv) If any of the manufactured components or process materials are sold to outsiders proper records of the quantity, cost of sales and value realised therefrom shall be recorded separately and also shown in the respective cost statements.

(c) Diev and punches.—In respect of dies and punches records shall be maintained showing the quantity and cost of receipts in the case of bought out items which shall in- clude all direct charges incurred upto the works. In the case of own manufactured items, adequate records shall be main- tained showing the cost of dies and punches. The method adopted foi charging the cost of dies and punches in the cost of production shall be reasonable taking into account trc life of the dies and punches. The same shall be indicated in the cost records and shall be applied consistently.

(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 spares. The costs shown shall include all direct charge incurred upto the works wherever specifically incurred.

(ii) 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.

(iii) The cost of consumable stores, small tools and machi- nery spares 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 and to buildings, plant and machinery and other assets shall be shown under the relevant capital heads.

(e) Wastages, spoilages, rejections, losses, etc. of mate- rials.—Proper records shall be maintained showing the quan- tity and coj* of wastages, spoilages, rejections and losses of raw materials, own manufactured components and ingredients consumable stores, small tools and machinery spares, dies and punches whether in transit, storage, manufacture or for any other reasons. The method followed for the adjustments of the above losses shall be indicated in the cost records.

(ii) Proper records shall be maintained showing the quan- tity and cost of rejected batteries. Records for the income derived from the disposal of rejected and waste materials in- cluding scrap, if any, and the value of components recovered from rejected batteries and re-used in process, shall also be maintained separately and the method adopted for adjusting the aforesaid recoveries in the cost of production shall be indicated in the cost records.

II. Wages and Salaries

(a) Proper records shall be maintained to show the atten- dance and earnings of all employees in the cost centres and departments and the work in which they are employed. The records shall also indicate separately for each cost centre and department.

(i) Piece-rate wages earned;

(ii) incentive wages earned, either individually or collec- tively as production bonus or under any other scheme based on output;

(iii) overtime wages earned ;

(iv) earnings of casual labour.

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

(c) Any wages ami salaries allocable to capital works such as additions or major repair works 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 immediate expen- ses incurred for each service department or cost centre. These expenses shall be apportioned to other services and produc- tion departments on an equitable basis and applied consisten- tly.

IV. Utilities

(i) Power.—Adequate records shall be maintained for the quantity and cost of power purchased where power is gene- rated by the company itself, adequate records shall be main- tained to show the cost of power generated. The records shall also show the consumption of power by the various cost centres and departments. The cost of power allocated to the cost centres and further to the individual products i.'hall be on a reasonable basis and applied consistently.

V. Workshop repairs and maintenance

Proper records showing the expenditure incurred by the workshop under different heads and on repairs and main- tenance by the various cost centres and departments shall be maintained. The records shall also indicate the basis oi" charging the workshop expenses to different departments and cost centres.

Expenditure 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 the various pro- ducts manufactured during the relevant period.

Expenditure incurred on works of a capital nature shall be capitalised. The cost of such jobs shall include the ex- pendilure on materials, labour and a share of the over heads. The jobs carried out by the workshop of dry cell batteries unit for other units of the company and vice-versa "hml! be charged on a reasonable basis and applied consistently,

VI. Depredation

s

(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 indicale the cost of each item of asset including installation charges, if any, the date of its installation and rale 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 finan- cial 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 allo- cated to the various departments and coat centres and to the products shall be clearly indicated in the records. Deprecia- tion 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 sec- tion 205 of the Companies Act, 1956 (1 of 1956), and shall relate to plant, machinery and other fixed assets utilised in such cost centres and departments. In case the amount of depre- ciation charged in the cost accounts in any financial year is higher than the amount of depreciation chargeable under the aforesaid provisions of the Companies Act, rhe amount so charged in excess and the incidence of such excess depreciation on the unit cost of production of the individual dry cell batler- rics manufactured shall be indicated clearly in the cost re- cords. The cumulative depreciation charged in the cost re- cords against any individual item of asset shall not, however, exceed the original cost of the respective assets.

VIT. Overheads

Proper records shall be maintained showing the various items of expenses comprising the overheads. These expenses shall be analysed, classified and grouped into works, adminis- tration an ^selling and distribution overheads. The methods followed for alteration/absorption of the nbove categories of overheads to the departments/coit centres/products shall be indicated in the cost records.

Where the company Is engaged in the manufacture of any other products in addition to dry cell batteries, the records ahall clearly indicate the basis followed for apportionment of the common overheads including head office expenses of the comapny to the dry cell batteries activity, other activities and capital works. The basis followed for apportionment of the overheads shall be equitable nnd consistent. In case any expenses included in the above categories of overheads can be identified with a particular activity /product, such ex- penses shall be segregated and charged to the relevant acti- vity/product at the first instance and there after the remain- ing common expenses under the above categories of overheads shall be apportioned on a reasonable and equitable basis and applied consistently,

VIT. A Interest :—

Proper records shall be maintained showing interest char- ges. The amount of interest shall be allocated to dry eell batteries nnd other activities on a reasonable and equitable basis which is to be followed consistently. The basis of such allocation shall be spelt out deafly in the costs. Basis for further apportionment of the share of interest for dry cell batteries to different types thereof shall also be reason- able and equitable and the same shall be followed consis- tently.

VITI. Expenses on export :—•

Record showing the expenses incurred on export of dry bat- teries, if any, shall be' separately maintained so that the cost of export sales can be detei-mined correctly. The expenses incurred on exports, as well as any export incentives earned shall be reflected in the cost of sales statements relating to export sales.

IX. PHcktng :—

Proper records shall be maintained showing the quantity and cost of various packing materials such as card board boxes, wooden boxes used for packing different types of dry- cell batteries. If such packing materials are manufactured by the company, proper record showing the cost of production of such items shall also be maintained. Records shall also be maintained showing wages and other expenses incurred In respect of different types and sizes of packages adopted for marketing dry cell batteries.

Where packing expenses are incurred in common, the basis of apportionment of such expenses amongst different types and sizes of dry cell batteries shall be equitable and clearly indicated in the cost records and applied consistently.

Separate records of special expenses incurred on a export packing in respect of different types and sizes of dry cell bat- teries, if any, shall be maintained and exhibited in the relevant cost of sales statements for exports.

X. Research and development expenses :—

Proper records showing the details of expenses, if any, incurred by the company for the research and development according to the nature of such research viz. development of products, existing and new design and development of new plant facilities, market research for new products etc. shall be maintained separately. The method of charging these ex- penses to be cost of products during any year shall be indica- ted in the coil records. Wherever the utility of such research extends over more than one financial year such expenses shall be treated as deferred expenses and charged to the cost of products on some equitable basis which is to be followed con- sistently,

XI. Work-ln-progresi HIH! 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 adop- ted shall be followed consistently. Records showing the value of work in progress and the quantities and value of finished items shall be maintained in Proforma 'F' of Schedule II,

XTI. Cost Statements :—

(i) Cost statements showing the cost of production and cost of sales of different type and sizes of dry cell batteries shall be maintained in proforma 'C and 'D' respectively. Such cost statements shall be maintained for the production ob- tained under different methods of manufacture, if any, like partly manual or automatic lines. The cost statements shall also be maintained separately in respect of each size of dry cell batteries corresponding with international standards like IR-20, TR-14, IR-fi as well as for different types like paper clad, metal clad and cellulose acetate batteries, flat cells, layer cells and inert cells of different specifications. Such cost statements shall be maintained separately for different facto- ries/units of the company.

Ui) Export of dry cell batteries shall be covered by separate cost statements under Proforma D and the same shall be exclu- ded from the cost statements meant for sale in the internal market.

XIIT, Reconciliation of tost and financial accounts :—

The cost records shall be reconciled preferably periodically wiih the financial books of account so as o ensure accuracy.

or understandings reached, in respect of :—

(a) purchase and sale of raw materials and process mate-

rials, components rejected goods including scrap and

fixed assets.

VaraitioiL,, if any, shiiil be dearly indicated anti explained.

The period for which such reconciliation is effected shall not

exceed ihe period of the financial year of the company. The

reconciliation shall be done in such a manner that the profita-

bility of the product under reference can be correctly adjudg-

ed and reconciled with the overall profits of the company.

(b) utilisation of plant facilities;

(c) supply of utilities; and

fd) administrative, technical managerial and any other

consultancy services.

A statement showing the total expenses incurred and income

received by the company and the share applicable to dry cell

batteries shall be maintained in profonna 'E' duly reconciled

with the financial acounts.

XTV. Adjustment of cost variances :—

These records shall Indicate the basis followed for arriving

at the rates charged between them so as to enable determina-

tion of the reasonableness of the rates charged/paid for such

survices.

XVII. Statistical records :—

Data such as melt less of zinc and different types of wasta-

ges including rejections incurred in the manufacture of dollies,

carbon rods and assembly of different types and sizes of dry

cell batteries shall be maintained to enable control of pro-

cess losses.

Data regarding available machine hours /labour hours in the

different production departments and assembly line and the

machine hours/labour hours actually utilised shall also be

maintained.

Where the company maintains cost records on any basic

other than actuals such as standard costing, the records shall

indicate the procedures followed by the company hi 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 proforma of Schedule IX.

The variances in respect of materials shall inter-alia be fur-

nished separately for major materials, components and pri-

mary packing materials. Variance analysis shall be made

periodically say quarterly. The reasons for the variances

shall be detailed in the cost records.

XV. Records of pfajyrical verification ;—

Records as will enable the company to identify, (net fixed

assets and working capital) the capital employed separately

for dry cell batteries and other activities shall also be main-

tamed. Fresh investments on fixed assets that have not con-

tributed to the production during the relevant period shall

be Indicated in the records. The records shall In addition

show assets added as replacement and that added for increas-

ing existing capacity.

Records of physical verification shall be maintained in res-

pect 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 followed for adjusting the same in the cost of

the products shall be Indicated in the records.

XVI. Inter-company tramactlons :—

In respect of supplies made or services rendered by the

company to its holding company or a subsidiary or a company

in the same management as defined In section 370 (1 B) of

the Act or a company in which a Director of the company

is also a Director in such companies and vice-verse, records

shall be maintained showing contracts entered into, agreements

Statistical and other records maintained in compliance with

the provisions of this Schedule and Schedule II shall be such

as to enable the company to exercise as far as possible, con-

trol over the various operations and costs with a view to

achieve optimum economics in costs and to provide the neces-

sary data required by the cost auditor to suitably report on

all the points referred to In the Cost Audit (Report) Rules,

1968 as amended from time to time. Such records shall be

reconciled with the returns submitted to the Excise Depart-

ment and other authorities from time to time.

SCHEDULE II (See rule 3)

Proforma A

for use in dry cell batter

Name and Address of the company

Name and Address of the dry cell batteries manufacturing unit

SUte-mnt showing the enst oF Zinc can manufactured during the year ending

No. IR 6/IR-14/IR-20.

Type and size of zinc can produced

Current year Previous year

Tones/Nos. Tonncs/Nos.

Quantity produced

1. Sheets

2. Callots

3. Cans.

Melt loss (as % of input)

Particulars

1

A. M a n u a c t u re of z i pk s h e e ts

1. R aw M a t e r i a ls

( a) Z i nc i n g o ts . . . .. (b) Z i nc s c r ap . . . ..

2. W f t g es a nd s a l a r i es . . . ..

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

% %

Q u a n t i ty R a te

C o st p er u n it

T o t al A m o u nt

C u r r e nt Y e ar ( R s.

( R s .)

( R s .)

Previous Year (Rs.)

4

2

3

5

6

4. R o p a i rs a nd m a i n t e n a n ce . . . . . .. 5. U t i l i t i es :

( a) P o w er ( b) F u el

\

(c) Other services to be specifiod

6. Depreciation 7. Other works overheads

8. Adjustment for difference in opening and closing balance of

work-in-progress

8. (a) Adjustment for cost variances (where standard costing

system is adopted)

(a) Material (b) Labour (c) Overheads Total cost of zinc sheets

9. Less : Quantity and value of recoveries in the form of scrap

10. Net cost of zinc sheets produced 11. Adjustment for opening and closing stock . . ..

A d d: Opening Qnty Value Less: Closing Qnty Value

12. Total 13. Cost of zinc sheets transferred to item B (Zinc callots)

B. Zinc Callots :

1. Cost of zinc sheet transferred from A-l 3 . . .. 2. Wages and salaries 3. Consumable stores 4. Ropairs and maintenance . . . . . .. 5, Utilitlos :

(i) Power

(11) Lubricants and oils

6. Depreciation 7, Other works overheads 8. Adjustment for work-in-prgress

8a. Adjustments for cost variances (where standard costing sys-

tem is adopted)

(a) Materials (b) Labour (c) Overheads Total cost

9. Less : Credit for recoveries

10, Net cost of callots produced

11. Adjustment for opening and closing stock

A d d: Opening Qnty Value Less: Closing Qnty. Value

12. Total 13. Cost of zinc callots transferred to Item C (zinc cans)

C. Zinc Cans

1. Zinc Callots (13 of item B) 2. Wages and salaries 3. Punches/dies 4. Consumable stores . . . . . . .. 5. Repairs and maintenance 6. Utilities :

, .

(a) Power (b)T Others 7. Depredation 8. Other works overheads 9. Share of administration overheads

10. Adjustments for difference in opening and closin > balance of

work in progress

.

1131 GI/78—3.

10a

i. Adjustment for cost variances (where standard costing system

is adopted)

(a) Mateiial (b) Labour (c) Overhead . . ..

. ..

. .

11. 12. 13.

Total cost Less : credit for scrap . Adjustment for opening and closing stock

Add : Opening Stock Qnty Value Less : Closing Stock Qnty Value

, Net cost of zinc cans transferred to proforma C . Qty. and cost of items sold if any and sales realisation.

14. 15

1. Separate cost statements in the above Proforma shall be maintained in respect of each size of zinc cans produced corresponding to the different types of dry cell batteries produced.

2. Credit afforded for scrap shall bcieasonableand the basis shall be consistent.

3. Data relating to the number of days/hours worked for the different type of callots/cans shall be maintained.

4. Interest, bonus to employees other than incentive bonus, provision for statutory gratuity charges shall be shown in Proforma 'D' and 'E' only.

5. If any of the items like zinc shoets/callots/cans and the like arc sold, the proportionate share of administrative, selling and distri- bution and Head Office overheads shall be levied on an equitable basis and applied consistently. Direct and allocable ttpentes rolatidg to packing shall also be added to arrive ai the cost of sale of such items sold. The respective sales realisation shall be indicated in this Proforma.

6. Whore standard costing system is adopted, the cost variances shall be shown under the relevant heads.

7. Proper records for scrap produced at various stages and their re-use for making zinc cans shall be maintained boih in quantity and value.

B. If any unit is making zinc cans from ingots by extrusion process the stages of manufacture given in this proforma shall be suitably modified and cost sheets furnished taking into account the sequence of manufacture.

Proforma 'B'

Name and address of the company Name and address of the dry cell batteiies manufacturing unit Statement showing the cost of other components like brass caps, printed metal jackets/paper tubes, washers carbon reds ard inpredients like electrolytic manganese di-oxidc, acetylene black etc. manufactured during the period

Name of ingredient/component

Current Year Previous Year Quantity produced :

Particulars

Quantity Rate

Cost per unit

Total Cost

Rs.

Current Previous Year year Rs. Rs,

Rs.

4

2

3

1

5 6

1. Raw materials . . .. (To be specified)

(a) (b) (c) Less : credit for scrap

Wages and salaries Consumable stores Repairs & maintenance Utilities :

2. 3. 4. 5.

(a) Power . . .. (b) Fuel (c) Others . . .. (Items to be specified)

. Depreciation . . ..

6. 7. 8. 9,

Other works overheads Share of Administration Overheads Adjustment for difference in opening and closing balance of work in progress . . . . . . . ..

9a . Adjustment for cost variances (where standard costing system is adopted) . . . . . . . ..

(a) Material . . . . . . . .. (b) Labour . . . . . . . .. (c) Overheads . . . . . . . ..

10. Net cost of quantity produced . . . . ..

11. Adjustment for opening and closing stock . . .. Add : Opening Stock Qnty. Value Less : Closing Stock. Qnty. Value

12, Quantity consumed in the manufacture of dry cell batteries and cost thereon . . . . . . . ..

Quantity and cost of items and amount realised

13.

N O T E S :—

1. Separate cost statements shall be maintained in respect of each ingredient/component produced corresponding to the different dry cell batteries. Tf, however, the value of any such component constitutes less than 5 % of the value of direct Material cost in- cluding primary packing materials of any type of tattery cost statement of such component shall not he necessary.

2. Credit afforded for scrap shall be reasonable and the basis applied shall be consistent.

3. Data relating to the number of days/hours worked for the production of each type o(" component/ingredient shall be maintained,

4. Interest, bonus to employees other than incentive bonus, provision for statutory gratuity charges shall be shown in Proforma ' D' only.

5. If any of the items like electrolytic manganese de-oxide, acetylene black, carbon rods are sold the proportionate share of ;idminis- rration, selling and distribution and Head Office overheads shall be levied on an equitable basis and applied consistently. Direct and allocablo expenses relating to packing shall also be added to arrive at the cost of sale of such items sold. The respective sales reasllsation shall be indicated in this Proforma.

6. Where standard costing is adopted, the cost variances shall be shown under the relevant heads.

Proforma 'C

Name and address of thecompany Name and address of the dry cell batteries manufacturing unit Statement showing the cost of production of different types of dry cell batteries manufactured during the year ending

Description/type

International standard No if available. Brand Name Manufacturer's code No

Typa of packing : paper clad/metal clad/cellulose acetate

Current year Previous year

Quantity produced

Quantity Rate

Particulars

Cost per unit

Total Cost

Current year

Previous year

(Rs.)

(Rs.)

(Rs.)

(Rs.)

2

1

3

4

5

6

Components

1,

(i) Zinc cans (transferred from Proforma 'A') (ii) Carbon rods (hi) Dry mix (iv) Electrolyte (v) Acetylene black (vi) Ammonium chloride

(vii) Other materials

(Items to be specified)

2. Wages and salaries

3. Consumable stores

4. Repairs and maintenance . . . . ..

3. Services :

(i) Power (il) Fuel (iii) Other services (to be specified)

6. Depreciation

7. Other works overheads

8. Research and development oxpenses

9. Share of Administration Overheads

10. Adjustments for difference in the opening and closing balance of

work in progress

10a. Adjustment for cost variances : (where standard costingsystom is adopted) . . . . . . . . ..

.

(a) Material

(b) Labour

(c) Overhead

11. Total

12. Less : Credit for rejections/scrap

13. Total cost of pre-packed dry cell batteries . . ..

14. Packing expenses

(1) Primary packing materials :

(a) Paper tube (Proforma B) (b) Cellulose acetate tube (c) Metallic top (d) Metal jacket (e) Polythene washer (f) Other materials (to be specified)

(il) Wages

(Ui) Depreciation

(iv) Overheads . . . . . . . ..

15. Total Primary packing c o s t:

16. Total cost of packed Dry cell batteries (13+15)

17. Less: Credit for rejections and scrap

17a. Adjustment for cost variances

(whero standard costing system is adopted)

(a) Material (primary packing) . . . . .. (b) Labour (primary packing) (o) Overheads (primary packing)

18. Total cost of dry cell batteries produced . . ..

19. Add : opening stock Qnty. Value Less : closing stock Qnty. Value

20. Cost of dry cell batteries transferred to Proforma ' D'

N O TM : — 1. Separate cost statements shall be maintained in respect of each type and size of dry cell battery manufactured. Separate cost statements shall also be maintained for production under automatic lines.

2. Credit for scrap and rejections shall be reasonable and the basisapplied shall be consistent.

3. Bonus to employees other than incentive bonus, provision for statutory gratuity and interest charges shall be shown in Proforma ' D' only and not in this Proforma.

4. Where standard costing system is adopted, the cost variances shall be shown under the relevant heads.

Froforma 'D'

Name and address of the company

Name and address of the dry cell batteries manufacturing unit Statement showing the cost of sales of different types of dry cell batteries sold during the year ending Type/size :

(Indicate International standard No.

Brand name

Manufacturer's code No.

Type of packing : Paper clad/cellulose acetate/metal jacket

Current year Previous year

. . Quantity sold

Nos-

• Nos.

Particulars

Quantity Rate

Total Cost

Cost per unit

Previous

year

Current year (Rs.)

(Rs.)

(Rs.)

(Rs.)

3

2

4

1

5

6

1. Cost of dry cell batteries transferred from Proforrna 'C .

2. Secondary packing cost

(a) Packing materials (to be specified) (b) Depreciation

(c) Overheads (d) Other expenses

?. Stock Adjustments :

Add : Openlhg'SloCk . : ' . " : Less : Closing Stock

4. Selling & distribution overheads

(For good sold only)

(i) Salaries and Wages

(li) Commission to selling agents "

(iii) Depot expenses (iv) Freight and transport charges

(v) Other expenses, if any

5. Share of Administration expenses . . . . ..

6. Total cost including selling and distribution expenses

7. Interest charges 8. Annual bonus to employees

9. Provision for statutory gratuity

. ,„

-p m •—,— —r ^ 10. Other expenses not included in cost (to be specified) . . —

Total

11. Les.5 : Qther incomes not considered in cost

(items to be specified)

12. Total expenses excluding excise duty for quantity sold with in the

country . . . . . . . . ..

13. Sales realisation excluding excise duty for quantity sold within tbe country . . . . . . . ..

14. Margin , • .• . . . . . . . .. ^ .,

Note : 1. Sopai ate cost statements shall be maintained in respect of each type/size of dry cell batteries.

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

3. Interest charges, actually incurred shall only be shown against item 7.

4. .BoniiS.tQ employees other th&n.lnccntive bonus, provision for statutoiy gratuity and interest charges shall be shown separa¹- tely in this Proforma only and not in any other Proforma.

5. Sales realisation shall be shown separately for each type of dry cell batteries sold against item 13 of this Proforma.

6. Separate cost statements under this Proforma (suitable modified) shall be maintained in respect of dry cell batteries exported wherein expenses incurred on exports and incentives earned thereon shall be shown.

7. Self consumption if, any shall be shown separately.