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RM-IIM OF THE COST AUDIT REPORTrule 2 and rule 6]
having been appointed as Cost Auditor(s) under Section
panies Act, 1956 (1 of 1956) of ing its registered office at
company) (hereinafter referred to as the company), have audited the books of account prescribed under clause (d) of sub-section (1) of section 209 of the said Act, and other relevant records in respect of the
(mentions name/s of product group/s) for the period/year
financial year) maintained by the company and report, in addition to my/our observations andestions in para 2.
I/We have/have not obtained all the information and explanations, which to the best of my/our wledge and belief were necessary for the purpose of this audit.
In my/our opinion, proper cost records, as per Companies (Cost Audit Report) Rules, 2011 prescribed
er clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, have/have not been
ntained by the company so as to give a true and fair view of the cost of production/operation, costales and margin of the product/activity groups under reference.
In my/our opinion, proper returns adequate for the purpose of the Cost Audit have/have not been
ived from the branches not visited by me/us.In my/our opinion and to the best of my/our information, the said books and records give/do not give
information required by the Companies Act, 1956, in the manner so required.In my/our opinion, the said books and records are/are not in conformity with the Cost Accounting
dards issued by The Institute of Cost and Works Accountants of India, to the extent these are found
e relevant and applicable.In my/our opinion, company has/has not adequate system of internal audit of cost records which to
our opinion is commensurate to its nature and size of its business.
Detailed unit-wise and product/activity-wise cost statements and schedules thereto in respect of theuct groups/activities under reference of the company duly audited and certified by me/us are/are
kept in the company.
As required under the provisions of The Companies (Cost Audit Report) Rules, 2011, I/we have furnishedormance Appraisal Report, to the company, on the prescribed form.
Observations and suggestions, if any, of the Cost Auditor, relevant to the cost audit.
ed: this ____ day of _________ 20__ _________ (mention name of place of
ing this report) NATURE & SEAL OF THE COST AUDITOR (S)
MBERSHIP NUMBER (S)
TES:
Delete words not applicable.
If as a result of the examination of the books of account, the Cost Auditor desires to point out any
erial deficiency or give a qualified report, he shall indicate the same against the relevant para (i) to) only in the prescribed form of the Cost Audit Report giving details of discrepancies he has come
ss.
The report, suggestions, observations and conclusions given by the Cost Auditor under this paragraphl be based on verified data, reference to which shall be made here and shall, wherever practicable,
ncluded after the company has been afforded an opportunity to comment on them.
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EXURE TO THE COST AUDIT REPORT
rule 2 and rule 6]
ENERAL INFORMATION:
CIN or GLN of the company:
Name of the company:
Registered office address:
Corporate office address:
E-mail address of the company:
Company's financial year to which the Cost Audit Report relates:
Name, address, membership number and e-mail of the Cost Auditor(s):
SRN Number and date of Filing of Form 23C with the Central Government:
Date of Board of Directors' meeting wherein the Annexure to the cost audit report were approved:
No. of Audit Committee meetings held by the company, and attended by the Cost Auditor during the
OST ACCOUNTING POLICY:
riefly describe the cost accounting policy adopted by the Company keeping in view the requirements of the
panies (cost Accounting Records) Rules, 2011, the Companies (Cost Audit Report) Rules, 2011, cost
unting standards and its adequacy or otherwise to determine correctly the cost of production/operation,
of sales, sales realization and margin of the product/activity groups under reference separately for eachuct/activity group. The policy should cover, inter alia, the following areas:
Identification of cost centres/cost objects and cost drivers.
Accounting for material cost including packing materials, stores and spares etc., employee cost, utilities
other relevant cost components.
Accounting, allocation and absorption of overheads
Accounting for Depreciation/Amortization
Basis for Inventory Valuation
tion of IFRS in Financial Accounting.
riefly specify the changes, if any, made in the cost accounting policy for the product/activity group(s) under
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t during the current financial year as compared to the previous financial year.
bservations of the Cost Auditor regarding adequacy or otherwise of the Budgetary Control System, if any,
wed by the company.
RODUCT GROUP DETAILS (for the company as a whole)
Name of each Product Group
Manufactured Product Groups
c.
-Total (A)
Services Groups
c.
-Total (B)
ding Activities (Product
up-wise)
c.
-Total (C)
Other Incomes
Total Income as per Audited
ual Report (A+B+C+D)
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TES:
or manufactured product groups, use the nomenclature as used in the Central Excise Act and Rules, as
licable.
or service groups, use the nomenclature as used in the Finance Act / Central Service Tax Rules, aslicable.
UANTITATIVE INFORMATION (for each product group separately)e of the Companye of the Product Group
e of the Products covered in the Product Group
ncial Year
Unitvailable Capacitynstalled Capacity
apacity enhanced during the year, if any
apacity available through leasing arrangements, if apacity available through loan license / third parties
otal available Capacity
ctual Productionelf manufactured
roduced under leasing arrangements
roduced on loan license / by third parties on job work otal Production
roduction as per Excise Recordsapacity Utilization (in-house)
tock Purchased for Tradingomestic Purchase
mports
otal Purchases
tock & Other Adjustmentshange in Stock of Finished Goods
elf / Captive Consumption (incl. samples etc.)ther Quantitative Adjustments, if any (wastage etc.)
otal Adjustments
otal Available Quantity for Sale [2(e) + 5(c) - 6(d)]
ctual Salesomestic Sales (manufacturing)
omestic Sales (trading)xport Sale (manufacturing)
xport Sale (trading)
otal Quantity Sold
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RIDGED COST STATEMENT (for each product group separately)
Particulars
Materials Consumed (specify details)
a) Indigenous Purchased
b) Imported
c) Self Manufactured / Produced
Process Materials/Chemicals (specify)
Utilities (specify details)
Direct Employees Cost
Direct Expenses
Consumable Stores & Spares
Repairs & MaintenanceQuality Control Expenses
Research & Development Expenses
Technical know-how Fee / Royalty, if any
Depreciation/Amortization
Other Production Overheads
Total (1 to 12)
Add/Less: Work-in-Progress Adjustments
Less: Credits for Recoveries, if any
Primary Packing Cost
Cost of Production/Operations (12 + 13 to 17)
Increase/Decrease in Stock of Finished Goods
Less: Self/Captive Consumption (incl. Samples, etc.)
Other Adjustments (if any)
Cost of Production/Operation of Goods/Services Sold (17 + 18 to 20)
Administrative Overheads
Secondary Packing Cost
Selling & Distribution Overheads
Interest & Financing Charges
Cost of Sales (21 + 22 to 25)
Net Sales Realization (Net of Taxes and Duties)
Margin [Profit/(Loss) as per Cost Accounts] (27 - 26)
ES:
Separate cost statement shall be prepared for each product/activity group
The items of cost shown in the Proforma are indicative and the same should be reflected keeping in mind the materiality of the
item of cost in the product/activity group.
The Proforma may be suitably modified to meet the requirement of the industry/product/activity group.
In case the company follows a pre-determined or standard costing system, the above cost statement should reflect figures at
ls after adjustment of variances, if any.
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PERATING RATIO ANALYSIS (for each product group separately)
Particulars
Ratio of Operating Expenses to Cost of SalesMaterials (incl. Process Materials) CostUtilities Cost
Direct Employees Cost
Direct ExpensesConsumable Stores & Spares
Repairs & Maintenance Cost
Depreciation / Amortization CostPacking Cost
Other Expenses
Stock AdjustmentsProduction Overheads
Administrative OverheadsSelling & Distribution OverheadsInterest & Financing Charges
Total
ROFIT RECONCILIATION (for the company as a whole)
Particulars
Profit or Loss as per Cost Accounting
ords(a) For the audited product groups
(b) For the un-audited product groupsAdd: Incomes not considered in cost
unts:
specify)
Less: Expenses not considered in cost
unts:
specify)
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Add: Overvaluation of closing stock in
financial accounts
Add: Undervaluation of opening stock infinancial accounts
Less: Undervaluation of closing stock infinancial accounts
Less:: Overvaluation of opening stock infinancial accounts
Adjustments for others, if any (specify)
Profit or Loss as per Financial Accounts
ALUE ADDITION AND DISTRIBUTION OF EARNINGS (for the company as a whole)
pees in Lakh)
Particulars
Value Addition:Gross Sales (excluding returns)Less: Excise duty, etc.
Net Sales
Add: Export Incentives
Add/Less: Adjustment in Finished StocksLess: Cost of bought out inputs
ost of Materials Consumedrocess Materials / Chemicals
onsumption of Stores & Spares
tilities (e.g. power & fuel)thers, if any
l Cost of bought out inputs
Value Added
Add: Income from any other sourcesEarnings available for distribution
Distribution of Earnings to:Employees as salaries & wages, retirement benefits, etc.
Shareholders as dividend
Company as retained fundsGovernment as taxes (specify)
Others, if any (specify)
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l distribution of earnings
INANCIAL POSITION AND RATIO ANALYSIS (for the company as a whole)
Particulars
Financial PositionPaid-up CapitalReserves & Surplus
Loans (secured & unsecured)
(a) Gross Fixed Assets
(b) Net Fixed Assets(a) Total Current Assets
(b) Less: Current Liabilities & Provisions(c) Net Current Assets
Capital Employed
Net Worth
Financial PerformanceCost of ProductionCost of Sales
Net Sales
Value AddedProfit before Tax (PBT)
Profitability RatiosPBT to Capital Employed (B5/A6)
PBT to Net Worth (B5/A7)PBT to Net Sales (B5/B3)
PBT to Value Added (B5/B4)
Other Financial RatiosDebt-Equity RatioCurrent Assets to Current Liabilities
Valued Added to Net Sales
Working Capital Ratios Net Working Capital to Cost of Sales excl. depreciation
Raw Materials Stock to Consumption
Stores & Spares to ConsumptionWork-in-Progress Stock to Cost of Production
Finished Goods Stock to Cost of Sales
es:apital Employed means average of net fixed assets (excluding intangible assets, effect of revaluation
ixed assets, and capital work-in-progress) plus net current assets existing at the beginning and close of
financial year.Net Worth means share capital plus reserves and surplus (excluding revaluation reserves) less
mulated losses and intangible assets.
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RELATED PARTY TRANSACTIONS (for the company as a whole)
Name &
Address of
the Related
Party
TES:
etails should be furnished for each sale / purchase separately.
etails of Related Party transactions without indicating the Normal Price and the basis thereof shallonsidered as incomplete information.
RECONCILIATION OF INDIRECT TAXES (for the company as a whole)
Assessable
ticulars
Value
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al Clearances
estic
ort
k Transfers (Net)
ers, if any
l
ies/Taxes Payable
ies/Taxes Paid
vat/VAT Credit Utilised - Inputs
vat/VAT Credit Utilised - Capital Goodsvat/VAT Credit Utilised - Input Services
vat/VAT Credit Utilised - Othersl
through PLA/Cash
l Duties/Taxes Paidies/Taxes Recovered
erence between Duties/Taxes Paid and Recovered
rest/Penalty/Fines Paid
SIGNATURE
NAME
COMPANY SECRETARY/DIRECTOR MEMBERSHIP/DIN NUMBER
STAMP
DATE
es:
herever, there is any significant variation in the current year's figure over the previous year's figure for any item
n under each para of the Annexure to the Cost Audit Report, reasons thereof shall be given by the Cost Auditor.
herever, duration of the current year or the previous year is not 12 (twelve) months, same shall be clearly
cated in the Report.
RM-IIIM OF THE PERFORMANCE APPRAISAL REPORT
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e of Company: __________________________ Period of Report: ______________
icative list of areas to be covered in the report)
apacity Utilization Analysis
roductivity/Efficiency Analysistilities/Energy Efficiency Analysisey-Costs & Contribution Analysisroduct/Service Profitability Analysisarket/Customer Profitability Analysisorking Capital & Inventory Management Analysisanpower Analysis
mpact of IFRS on the Cost Structure, Cash-Flows and ProfitabilityApplication of Management Accounting Tools
Signature of the Cost Auditor(s)Membership Number(s)
es:
reas included in this form are indicative; these are to be included/excludedending upon the size/scale and type of operations, nature of the industry,agement requirements, etc.
requency of this report viz. half yearly/annual to be decided by the Companyagement.
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233B of the
(mention name of the company)(mention registered office address of the
(mention
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e) Accounting for by-products/joint-products, scarps, wastage etc.
g) Methodology for valuation of Inter-
h) Treatment of abnormal and non-rec
Other relevant cost accounting policy adopted by the Company
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Names of Products/ Activities Net Sales (net of
included in the Product Group taxes, duties, etc.)
(Rs. Lakh)
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From _________ To __________
Current Year Previous Year
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Units Quantity
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Units Current
Year
%%
%
%%
%
%%
%
%%
%%%
%
Current Year 1st Previous
Year
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Current Previous
Year Year-1
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Units Current
Year
Rs/LakhRs/Lakh
Rs/Lakh
Rs/Lakh
Rs/LakhRs/Lakh
Rs/LakhRs/Lakh
Rs/Lakh
Rs/Lakh
Rs/LakhRs/Lakh
Rs/Lakh
Rs/LakhRs/Lakh
%
%%
%
%%
%
Months
Months
MonthsMonths
Months
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Name of the Nature of
Product / Transaction
Service Group (Sale,
Purchase,
etc.)
Excise Service
Duty Tax
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SIGNATURE
NAME
DIRECTOR DIN NUMBER
STAMP
DATE
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nit/Inter Company and Related Party transactions.
rring costs including classification of other non-cost items.
In case the Company has adopted IFRS, variations (if any) in treatment of cost accounting arising out of
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Covered
under Cost
Audit
(Yes/No)
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Rate Amount Rate per Unit (Rs.)
(Rs.) (Rs.)Current Previous
Year Year
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Previous Previous
Year-1 Year-2
2nd Previous
Year
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Previous
Year-2
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Previous Previous
Year-1 Year-2