model cost audit report 2011-12-2
TRANSCRIPT
MODEL COST AUDIT REPORT
ANNEXURE TO COST AUDIT REPORT RULES, 2011
CAMAP
INTER ACTIVE WORKSHOP
on 22nd FEB 2012
BY
Y R DOSHI AND ASSOCIATES
COST ACCOUNTANTS
MUMBAI
PRESENTATION
1 CIN or GLN of the company:
L12345MH1234BLCO55578
2 Name of the company:
Rajkumar Paper Mills Limited
3 Registered office address:
Chinchwad, Pune 411 039.
4 Corporate office address:
R.S.Gandhi Marg, Fort, Mumbai 400080
5 E-mail address of the company:
6 Company's financial year to which the Cost Audit Report relates:
1st April 2011 to 31st March 2012
7 Name, address, membership number and e-mail of the Cost Auditor's):
M/S X Y Z & Co.
Mr.X M. NO. 10000
Mr.Y M. NO. 20000
ANNEXURE TO THE COST AUDIT REPORT
[See rule 2 and rule 6]
CHAPTER - 1
GENERAL INFORMATION
Mr.Y M. NO. 20000
Mr.Z M. NO. 30000
J. B. Nagar, Borivli , Mumbai 400 092.
E-Mail : [email protected]
8 SRN Number and date of Filing of Form 23C with the Central Government:
A63826384
9 Date of Board of Directors' meeting wherein the Annexure to the cost audit report were approved:
Annexure to cost audit report were approved by the Board of Director in meeting held on __ _ __ _ _,2012.
10 No. of Audit Committee meetings held by the company, and attended by the Cost Auditor during the year under
review.
The Company held _ _ Audit committee meetings and _ _ meetings were attended by Cost Auditors during the year under
review.
1
1.00
Basics of Costing Policy
1.01
1.02
1.03 Identification of cost centers/cost objects and cost drivers:
The company follows the historical process cost convention on accrual basis of accounting in accordance with the
Generally Accepted Cost Accounting Principle (GACAP) and Cost Accounting Standards keeping in view the
requirements of the Companies (Cost Accounting Records) Rules, 2011, the Companies (Cost Audit Report) Rules, 2011,
The preparation of cost statements requires that the management of company makes reasonable estimates and assumptions
that affects the allocation / apportionment and absorption of expenses recognized in the period to determine correctly the
cost of production / operation, cost of sales realization and margin of the product / activity groups separately of the unit /
plant.
The company emphasis on direct identification of expenses with product / plant and common expenses as classified
overheads as under:
CHAPTER - 2
COST ACCOUNTING POLICY
Briefly describe the cost accounting policy adopted by the Company keeping in view the requirements of the
Companies (cost Accounting Records) Rules, 2011, the Companies (Cost Audit Report) Rules, 2011, cost accounting
standards and its adequacy or other wise to determine correctly the cost of production / operation, cost of sales,
sales realization and margin of the product / activity groups under reference separately for each product / activity
group. The policy should cover, inter alia, the following areas:
Cost accounting policy adopted by the company for the following areas are as under:
Plant Cost Centers and Cost Objects Cost Drivers
Waste Paper Plant Production in Tonnage
Stock preparation & Paper Machine No 1 Machine Hour Utilization / Available
Stock preparation & Paper Machine No 2 Machine Hour Utilization / Available
Rewinder Machine Hour Utilization / Available
Super Calenders Machine Hour Utilization / Available
Slitting Machine Hour Utilization / Available
Cutting Machine Hour Utilization / Available
Finishing and Packing. Tonnage
Common Utilities and Services
Pump House for water treatment Water Utilization (KL)
Boiler House for steam generation Steam Utilization (MT)
Power House for distribution of electricity Power Utilization (KWH)
Effluents treatment plant Strategy Treated Water (KL)
Plant Maintenance (Work shop) Estimated % of Utilization
Factory O/h including Administration Purpose & Nature of expenses
Administration and Corporate O/h Purpose & Nature of expenses
Selling & Distribution O/h Purpose & Nature of expenses
1.10 Material and Stores Accounting :
1.11 Material Cost
1.12 Packing Material
1.13 Stores & Spares
1.20 Employees Cost
1.21
Accounting for material cost including packing materials, stores and spares etc., employee cost, utilities and other
relevant cost components.
Indegenous materials and stores receipt are valued at landed cost inclusive of all expenses incurred for the procurement of
the materials but net off VAT/CENVAT subject to set off. Imported material are accounted at the custom exchange rates
prevailing at the time of receipts an includes all incidental expenses like, insurance, freight, import duty, clearing charges,
etc.
The Stores' issue is booked at moving weighted average rate / FIFO. Normal shortages/excesses observed during physical
stock verification are periodically adjusted in consumption of respective materials.
Packing material used for packing of reels and reams are identified on the basis of packing recipe & charged to product.
Secondary packing like palatisation, etc.is considered as dispatching cost .
Consumption of wrapping paper manufactured and consumed as packing material is transferred and valued at COP during
the year.
Consumable Stores and spares are identified with consumption cost centre. Machinery spares issues are treated as repairs
to Plant & machinery.
Employee Records are maintained Cost center wise for direct allocation of employee cost. Employee cost includes
benefits payable available such as over time, incentives, payment & provision for leave salary, Company's contribution to
1.22
1.30 Utilities :
1.31 Repairs & Maintenance
1.40 Accounting, allocation/apportionment and absorption of overheads
1.41
benefits payable available such as over time, incentives, payment & provision for leave salary, Company's contribution to
Provident / Pension Fund and Employees State Insurance, linked insurance, Provision for bonus & Gratuity, etc.
The engagement of contractor's labour for certain specific jobs/operations are identified and allocated as direct labour cost.
The Common labour payment is considered as either Works Overhead or Administration overhaed as per the nature of
The cost of each utilities like power, raw water, treated water, steam, Power generation plant, Cooling water and ETP is
worked out for each of the above cost centres. The utilisation of utilities allocation / apportionment are done on the basis
of monthly utilisation of these facilities by recipient plants on technical basis and are reconciled.
Machinery spares and repairs job labour bills are identified with respective plant and machinery. Repairs to building is
apportioned on the basis of area and other repairs are considered as plant overheads or administration overheads.
Expenses are identified with cost center / activity / product as far as possible. In case where it is not possible to identify
directly, the same is considered as production / administration / selling and other overheads based on nature & purpose of
expenses in the inbuilt system of Financial Accounting on the basiss of Generally Accepted Cost Accounting Principles.
1.42 Absorption (into product cost)
Factory Overheads
Corporate Administrative Overheads
Selling and Distribution Overheads
1.50 Accounting for Depreciation/Amortization
1.60 Accounting for by-products/joint-products, scarps, wastage etc.
The total conversion cost of the production departments including factory administration overheads are then divided by
the Machine Hours worked during the year to obtain Machine Hour Rate for each production department. The actual time
taken for each lot are recorded in the Departmental log books from where total time worked during the year for producing
each variety of paper is ascertained. This cumulated time multiplied by the Departmental Machine Hour Rate gives the
total conversion cost for each variety of paper produced. Whereas, finishing and packing department expenses are
absorbed on the basis of tonnage packed in reels and reams.
The Corporate administrative overheads are absorbed directly into the variety of paper on the basis of sales realization of
paper sold.
The element wise selling and distribution overheads are absorbed either on the basis of quantity sold or the net sales
realization depending upon nature of expense. Commission on Sales is identified with each type of paper. Cost of the
samples is ascertained separately & considered as Selling & Distribution expenses.
Depreciation on machinery & building has been provided on straight line method and on the other assets on written down
value method in accordance with Schedule XIV of the Companies Act,1956 as in force as on the date of Balance sheet.
Depreciation on all assets is in the first instance departmentalized, based on the locations of the assets. Depreciation on
Buildings is apportioned on the basis of area occupied by each cost centers. Depreciation on Machinery is allocated on the
basis of identification. Depreciation on furniture, office equipments and fixtures, vehicles etc. is considered as overheads
depending upon location and usage.
1.60 Accounting for by-products/joint-products, scarps, wastage etc.
1.70 Basis for Inventory Valuation
1.71
1.73
1.74
Share of common utilities and services in respect of security, communication, Quality Control, Space utilization, etc. on
the appropriate cost basis considering common cost of salaries, direct allocated expenses, etc. for each type of services.
Interest received is on account on loan given is charged at the prevailing bank rate.
There are no by-products or joint products generated while manufacture of paper. Broke is waste generated while finishing
of paper which is reused as pulp. Broke is valued at average cost of waste paper purchased since the sales realization of
Broke is not feasible and quality of broke resembles waste paper.The scrap generated due to sale of empty drums, MS
scrap, etc. is analysed and credited on approrpiate basis.
Raw material, Packing material, Stores & Spares are valued at landed cost on moving weighted average / FIFO method.
Methodology for valuation of Inter-Unit/Company and Related Party transactions
Direct Cost of job work processing of Pulp and Steam plus share of fixed overheads allocated / apportioned and
absorption on the basis of normal capacity utilization and reasonable profit margin. Raw material at landed cost of
purchases at relevant time and sale of finished goods at comparable price on arms length basis.
Semi finished and Finished goods is valued at variety / gram age wise cost of production according to the stage of
completion and location where stored excluding any taxes and duties.
1.75
1.80
1.81 Treatment of Foreign exchange gain/(Loss) on Plant & Machinery, imported material, sales of FG, etc.
1.82 Company Social responsibility
1.83 Treatment of expenditure during construction period.
1.84 Financial Cost
1.90
1.91 Domestic Realisation
1.92 Export realisation
1.93 Export benefits
1.94 Central excise duty and service tax.
2)
Change in Method of WIP & Finished goods Inventory valuation, Identification of overheads, etc.
Revenue sales recognition
Treatment of abnormal and non-recurring costs including classification of other non-cost items.
In case of significant under utilization normal conversion cost per production is considered for absorption of labour &
overheads.
Non cost / Non recurring income and expenses such as Provision for obsolete items, Loss on Sale of Fixed Assets,
Donations, Provision of doubtful Debts and Bad Debts written off, etc. and Other Income such as Exchange diff, interest /
Dividend on Investments, etc.
Other relevant cost accounting policy adopted by the Company
Interest on term loans, premium on redemption of Debenture/Debts, interest on working capital.
Briefly specify the changes, if any, made in the cost accounting policy for the product / activity group(s) under audit
during the current financial year as compared to the previous financial year.
3)
4)
Not Applicable.
Observations of the Cost Auditor regarding adequacy or otherwise of the Budgetary Control System, if any,
followed by the company.
In case the Company has adopted IFRS, variations (if any) in treatment of cost accounting arising out of adoption
of IFRS in Financial Accounting.
Sr.
no.
Names of
Products/
Activities
included in
the Product
Group
Covered
under Cost
Audit
2011-12 2010-11 (Yes/No)
A Manufactured Product Groups
1 White Printing Paper
Maplitho,
M.G. Poster,
etc.
3507.98 Yes
2Sanitary
Tissues4016.01 Yes
3
4
- 7523.98
B
1
2
3
4
- -
C Trading Activities (Product Group-wise)
1
Services Groups
Name of each Product Group
Tissue Paper
Sub-Total (A)
Sub-Total (B)
Net Sales (net of taxes,
duties, etc.) (Rs. Lakh)
CHAPTER - 3
PRODUCT GROUP DETAILS (for the company as a whole)
etc.
1
2
3
4
- -
D
1 12.57
2 Profit on Sales of Fixed Assets 2.07
3 5.20
- 19.84
E Total Income as per Audited Annual Report (A+B+C+D) - 7543.82
Increase / Decrease in turnover is due to ………………………………………………………………………….
NOTES: 1)
2) For service groups, use the nomenclature as used in the Finance Act / Central Service Tax Rules, as applicable.
Sub-Total (D)
Sub-Total (C)
Other Incomes
Dividend, Interest
Misc., Scrap Sales, etc.
For manufactured product groups, use the nomenclature as used in the Central Excise Act and Rules, as applicable.
etc.
Name of the Company : Rajkumar Paper Mills Limited
Name of the Product Group : White Printing Paper
Name of the Products covered in the Product Group : Paper (Qty. in MT)
Financial Year 2011-12 2010-11
S.N. Particulars Cur. Year Prev. Year
1. Available Capacity
(a) Installed Capacity 9000 9,000
(b) Capacity enhanced during the year, if any
(c) Capacity available through leasing arrangements, if 0
(d) Capacity available through loan license / third parties
(e) Total available Capacity 9,000 9,000
2. Actual Production
(a) Self manufactured - 8086
(b) Produced under leasing arrangements
(c) Produced on loan license / by third parties on job work
(d) Total Production - 8086
3. Production as per Excise Records - 8086
4. Capacity Utilization (in-house) - 90
5. Stock Purchased for Trading
(a) Domestic Purchase
(b) Imports - 0
(c) Total Purchases - 0
6. Stock & Other Adjustments
(a) Change in Stock of Finished Goods - -40
(b) Self / Captive Consumption (incl. samples etc.) - 0
(c) Other Quantitative Adjustments, if any (wastage etc.) - 0
QUANTITATIVE INFORMATION
CHAPTER - 4 (A)
(c) Other Quantitative Adjustments, if any (wastage etc.) - 0
(d) Total Adjustments - -40
7. Total Available Quantity for Sale [2(d) + 5(c) - 6(d)] - 8046
8. Actual Sales
(a) Domestic Sales (manufacturing) 8046
(b) Domestic Sales (trading)
(c) Export Sale (manufacturing)
(d) Export Sale (trading)
(f) Total Quantity Sold - 8046
Notes :
The variation in the utilisation of installed capacity is due to change in the product mix which is dependent
upon demand of various types and grammage of paper and on account of loss due to set up time for the lot
change from time to time.
Name of the Company : Rajkumar Paper Mills Limited
Name of the Product Group : Tissue Paper
Name of the Products covered in the Product Group : Paper (Qty. in MT)
Financial Year 2011-12 2010-11
Sr.no.Particulars Cur. Year Prev. Year
1. Available Capacity
(a) Installed Capacity 10,000 10,000
(b) Capacity enhanced during the year, if any
(c) Capacity available through leasing arrangements, if - -
(d) Capacity available through loan license / third parties
(e) Total available Capacity 10,000 10,000
2. Actual Production
(a) Self manufactured 8865
(b) Produced under leasing arrangements
(c) Produced on loan license / by third parties on job work
(d) Total Production - 8865
3. Production as per Excise Records - 8865
4. Capacity Utilization (in-house) - 89
5. Stock Purchased for Trading
(a) Domestic Purchase
(b) Imports
(c) Total Purchases - -
6. Stock & Other Adjustments
(a) Change in Stock of Finished Goods - -124
QUANTITATIVE INFORMATION
CHAPTER - 4 (B)
(a) Change in Stock of Finished Goods - -124
(b) Self / Captive Consumption (incl. samples etc.)
(c) Other Quantitative Adjustments, if any (wastage etc.)
(d) Total Adjustments - -124
7. Total Available Quantity for Sale [2(d) + 5(c) - 6(d)] - 8741
8. Actual Sales
(a) Domestic Sales (manufacturing) - 8726
(b) Domestic Sales (trading)
(c) Export Sale (manufacturing) - 15
(e) Export Sale (trading)
(f) Total Quantity Sold - 8741
Notes:
The variation in the utilisation of installed capacity is due to change in the product mix which is dependent
upon demand of various types and grammage of paper and on account of loss due to set up time for the lot
change from time to time.
Tissue Paper In Rupees
Sr.no. Units Quantity Rate Amount
2010-11 2009-10
1 Materials Consumed
a) Imported (MT) 2193 26063 57156758 6471 3859
b) Indigenous Purchased (MT) 1755 22897 40193234 4551 3424
c) Self Manufactured / Produced (MT) 6927 23915 165666176 18757 18681
Total (a to c) 10876 263016168 29779 25964
2 Process Materials/Chemicals
a) Sizing & Loading Materials 156707 5085646 576 696
b) Dyes & other chemicals 25564 9388018 1063 1079
Total (a to b) 14473664 1639 1775
3 Utilities
Power (KWH) 9638311 5 48384321 5478 5529
Steam (MT) 37017 961 35581481 4029 3647
Water (KL) 513454 5 2310543 262 215
E.T.P. 1017957 115 64
4 Direct Employees Cost 10362714 1173 1077
5 Direct Expenses 960035 109 20
6 Consumable Stores & Spares 6153481 697 681
7 Repairs & Maintenance 2347438 266 154
8 Quality control
9 Research & Development Exps 237437 27 16
10 Technical know-how Fee / Royalty, if any
11 Depreciation/Amortization 3928990 445 586
12 Other Production Overheads 4526362 512 548
ABRIDGED COST STATEMENT (for product group - Paper)
Cost Rate per UnitParticulars
CHAPTER - 5
12 Other Production Overheads 4526362 512 548
13 Total (1 to 12) 398361209 45103 40704
14 Add/Less: Work-in-Progress Adjustments 32 1259649
15 Less: Credits for Recoveries, BROKE -11191839
16 Primary Packing Cost 6500614 733 811
17 Cost of Production/Operations (13 + 14 to 16) 8865 394929633 44549 39197
18 Increase/Decrease in Stock of Finished Goods -124 -9422853 -1400
19 Less: Self/Captive Consumption (incl. Samples, etc.)
20 Other Adjustments (if any)
21 COP of Goods/Services Sold (17 + 18 to 20) 8741 385506780 44102 38986
22 Administrative Overheads 5060618 573 428
23 Secondary Packing Cost
24 Selling & Distribution Overheads 8287341 948 902
25 Interest & Financing Charges 2428609 278 220
26 Cost of Sales (21 + 22 to 25) 8741 396222730 45328 40916
27 Net Sales Realization (Net of Taxes & Duties) 8741 401600823 45943 41710
28 Margin [P/(L) as per Cost Accounts] (27 - 26) 8741 5378093 615 794
There is no significance variance since increase in cost is conpensated by increase in sales realisation
NOTES 1 Separate cost statement shall be prepared for each product/activity group
2
3 The Proforma may be suitably modified to meet the requirement of the industry/product/activity group.
4
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.
In case the company follows a pre-determined or standard costing system, the above cost statement should reflect
figures at actuals after adjustment of variances, if any.
White Printing Paper In Rupees
Sr.no. Units Quantity Rate Amount
2010-11 2009-10
1 Materials Consumed
a) Imported (MT) 2873 26802 76992685 9557 3768
b) Indigenous Purchased (MT) 2228
c) Self Manufactured / Produced (MT) 6639 24309 161398272 20034 18955
Total (a to c) 9512 238390957 29591 24951
2 Process Materials/Chemicals
a) Sizing & Loading Materials 526332 10994790 1365 1307
b) Dyes & other chemicals 47211 13181430 1636 1393
Total (a to b) 24176220 3001 2700
3 Utilities
Power (KWH) 5548908 5 27855518 3458 3848
Steam (MT) 21182 961 20360626 2527 2431
Water (KL) 324531 5 1460390 181 151
E.T.P. 643407 80 45
4 Direct Employees Cost 6273267 779 750
5 Direct Expenses(cutting & Reeling chgs) 2672679 332 337
6 Consumable Stores & Spares 2351715 292 338
7 Repairs & Maintenance 1300530 161 96
8 Quality control
9 Research & Development Exps 210618 26 15
10 Technical know-how Fee / Royalty, if any
11 Depreciation/Amortization 3378804 419 591
12 Other Production Overheads 3067995 381 419
ABRIDGED COST STATEMENT (for product group - Paper)
Particulars Cost Rate per Unit
CHAPTER - 5
12 Other Production Overheads 3067995 381 419
13 Total (1 to 12) 336416430 41759 37062
14 Add/Less: Work-in-Progress Adjustments 23 1590414
15 Less: Credits for Recoveries, BROKE 431 -6203652
16 Primary Packing Cost 6177045 767 1025
17 Cost of Production/Operations (13 + 14 to 16) 8086 337980237 41798 37475
18 Increase/Decrease in Stock of Finished Goods -40 -4225392 -1400
19 Less: Self/Captive Consumption (incl. Samples, etc.)
20 Other Adjustments (if any)
21 COP of Goods/Services Sold (17 + 18 to 20) 8046 333754845 41479 37471
22 Administrative Overheads 4273704 530 390
23 Secondary Packing Cost
24 Selling & Distribution Overheads 6769785 841 770
25 Interest & Financing Charges 2100081 261 205
26 Cost of Sales (21 + 22 to 25) 8046 342624711 42581 39036
27 Net Sales Realization (Net of Taxes & Duties) 8046 350797659 43597 37257
28 Margin [P/(L) as per Cost Accounts] (27 - 26) 8046 8172948 1016 -779
Increase in margin is due to increase in sales realisation
NOTES 1 Separate cost statement shall be prepared for each product/activity group
2
3 The Proforma may be suitably modified to meet the requirement of the industry/product/activity group.
4
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.
In case the company follows a pre-determined or standard costing system, the above cost statement should reflect
figures at actuals after adjustment of variances, if any.
Tissue Paper
Sr.
no.
Units 2011-12 2010-11 2009-10
Ratio of Operating Expenses to Cost of Sales
1 % 67.21 67.79
2 % 22.03 23.11
3 % 2.62 2.63
4 % 0.24 0.05
5 % 1.55 1.66
6 % 0.01 0.38
7 % 0.99 1.43
8 % 1.64 1.98
9 % 0.06 0.04
10 % (1.47) (4.20)
11 % 1.14 1.34
Direct Expenses
OPERATING RATIO ANALYSIS (for each product group separately)
Materials (incl. Process Materials) Cost
Utilities Cost
Other Expenses
Particulars
Consumable Stores & Spares
CHAPTER - 6
Stock Adjustments
Depreciation / Amortization Cost
Repairs & Maintenance Cost
Packing Cost
Production Overheads
Direct Employees Cost
11 % 1.14 1.34
12 % 1.28 1.05
13 % 2.09 2.20
14 % 0.61 0.54
15 % 100.00 100.00
Note:
There are no significance variance in operating ratio
Interest & Financing Charges
Total
Production Overheads
Administrative Overheads
Selling & Distribution Overheads
White Printing Paper
Sr.
no.
Units 2011-12 2010-11 2009-10
Ratio of Operating Expenses to Cost of Sales
1 % 73.08 74.22
2 % 14.34 17.38
3 % 1.79 2.01
4 % 0.76 0.90
5 % 0.67 0.91
6 % 0.37 0.26
7 % 0.96 1.59
8 % 1.76 2.75
9 % 0.06 0.04
10 % 1.58 (4.85)
11 % 0.87 1.12
Repairs & Maintenance Cost
Depreciation / Amortization Cost
Packing Cost
Other Expenses
Stock Adjustments
Production Overheads
Materials (incl. Process Materials) Cost
Utilities Cost
Direct Employees Cost
Direct Expenses
Consumable Stores & Spares
Particulars
CHAPTER - 6
OPERATING RATIO ANALYSIS (for each product group separately)
11 % 0.87 1.12
12 % 1.22 1.05
13 % 1.93 2.07
14 % 0.60 0.55
15 % 100.00 100.00
Note:
There are no significance variance in operating ratio
Selling & Distribution Overheads
Interest & Financing Charges
Total
Production Overheads
Administrative Overheads
Rs. In lakhs
Sr.
no.
Particulars
2011-12 2010-11 2009-10
1 Profit or Loss as per Cost Accounting Records
a) For the audited product groups 135.51 209.57
b) For the un-audited product groups -
2 Add: Incomes not considered in cost accounts:
a) Profit on sale of Fixed Assets 2.07
b) Dividend Received 12.57 8.19
c) Cr.Balance write off
150.15 217.76
3 Less: Expenses not considered in cost accounts:
a) Donations 5.00 2.00
b) Doubtful debts 10.15 5.78
c) Loss on sale of Fixed Assets 1.15
15.15 8.93
4 Add: Overvaluation of closing stock in financial accounts
5 Add: Undervaluation of opening stock in financial accounts 11.69
6 Less: Undervaluation of closing stock in financial accounts 19.11 11.69
7 Less:: Overvaluation of opening stock in financial accounts 16.35
8 Adjustments for others, if any
a) (specify)
b)
9 Profit as per cost accounts for other activities
CHAPTER - 7
PROFIT RECONCILIATION (for the company as a whole)
10 Profit or Loss before tax as per Financial Accounts 127.58 180.79
(for the company as a whole)
Rs. In Lakhs
Sr.
no.
2011-12 2010-11 2009-10
A Value Addition:
1 Gross Sales (excluding returns) 8276.38 7299.10
2 Less : Excise duty etc. 752.40 663.56
3 Net sales 7523.98 6635.55
4 Add: Export Incentives - -
5 Add/Less: Adjustment in Finished Stocks 107.98 52.22
6 Less: Cost of bought out inputs
a) Cost of Materials Consumed 4840.12 4047.11
b) Process Materials / Chemicals 386.50 372.78
c) Consumption of Stores & Spares 85.05 87.67
d) Utilities (e.g. power & fuel) 1376.14 1359.13
e) Others, if any 523.92 500.68
Total Cost of bought out inputs 7211.73 6367.37
7 Value added 420.23 320.40
8 Add : Income from any other activities 14.64 8.19
9 Earnings available for distribution 434.87 328.59
B Distribution of Earnings to:
1 Employees as salaries & wages, retirement benefits, etc. 166.36 155.71
2 Shareholders as dividend 82.00 41.00
3 Company as retained funds 23.42 63.49
4 Government as taxes (Tax on Income) 44.72 4.95
CHAPTER - 8
VALUE ADDITION AND DISTRIBUTION OF EARNINGS
Particulars
4 Government as taxes (Tax on Income) 44.72 4.95
5 Others, if any (Depreciation and Interest) 118.36 63.44
Total distribution of earnings 434.87 328.59
Rs. In Lakhs
No
.
Units 2011-12 2010-11 2009-10
A Financial Position
1 Paid-up Capital Rs/Lakh 820.00 820.00
2 Reserves & Surplus Rs/Lakh 10370.29 11352.37
3 Loans (secured & unsecured) Rs/Lakh 4499.57 6822.54
4 (a) Gross Fixed Assets Rs/Lakh 24546.97 24516.06
(b) Net Fixed Assets Rs/Lakh 9528.94 11082.05
5 (a) Total Current Assets Rs/Lakh 13521.72 13937.82
(b) Less: Current Liabilities & Provisions Rs/Lakh 5786.80 3885.96
(c) Net Current Assets Rs/Lakh 7734.92 10051.86
6 Capital Employed Rs/Lakh 17263.86 21133.91
7 Net Worth Rs/Lakh 11190.29 12172.37
B. Financial Performance
1 Cost of Production Rs/Lakh 7192.62 6365.00
2 Cost of Sales Rs/Lakh 7388.47 6538.32
3 Net Sales Rs/Lakh 7523.98 6420.56
4 Value Added Rs/Lakh 420.23 320.40
5 Profit before Tax (PBT) Rs/Lakh 127.58 180.79
C. Profitability Ratios
1 PBT to Capital Employed (B5/A7) % 0.74 0.86
2 PBT to Net Worth (B5/A8) % 1.14 1.49
3 PBT to Net Sales (B5/B3) % 1.70 2.82
4 PBT to Value Added (B5/B4) % 30.36 56.43
D. Other Financial Ratios
Particulars
FINANCIAL POSITION AND RATIO ANALYSIS (for the company as a whole)
CHAPTER - 9
D. Other Financial Ratios
1 Debt-Equity Ratio % 40.21 56.05
2 Current Assets to Current Liabilities % 233.66 358.67
3 Valued Added to Net Sales % 5.59 4.99
E. Working Capital Ratios
1 Net Working Capital to Cost of Sales excl. dep. Months 119.22 153.74
2 Raw Materials Stock to Consumption Months 1.89 1.62
3 Stores & Spares to Consumption Months 12.12 12.77
4 Work-in-Progress Stock to Cost of Production Months 0.03 0.04
5 Finished Goods Stock to Cost of Sales Months 0.77 0.73
Notes: (1)Capital Employed means average of net fixed assets (excluding intangible assets, effect of revaluation of fixed assets, and
capital w-i-p) plus net current assets existing at the beginning and close of the financial year.
(2)Net Worth means share capital plus reserves and surplus (excluding revaluation reserves) less accumulated losses and
intangible assets.
Sr.
no.
Name &
Address
of the
Related
Party
Nature of
Transactio
n (Sale,
Purchase,
etc.)
Quantity Transfer
Price (Rs.)
Amount
(Rs. In
Lakhs)
Normal Price Basis
adopted to
determine
the Normal
Price
1 ABC P. Ltd Purchase 374 MT 25824 96.58 25000 At cost
2 PVR & Co. Job Work 51329 MT 198 101.63 200
3 PVR & Co. 30.68
4 PVR & Co. Wrapping Sales 12 MT 40200 4.82 40000
NOTES:
(1) Details should be furnished for each sale / purchase separately.
Normal cost
of processing
+ Profit
Comparable
Sales
Activity
Service cost
Computer, Security, etc. Common
Services
Pulp
Steam Processing
Name of the Product /
Service Group
RELATED PARTY TRANSACTIONS (for the company as a whole)
(2) Details of Related Party transactions without indicating the Normal Price and the basis thereof shall
be considered as incomplete information.
CHAPTER - 10
Rs. In Lakhs
Assessable
Value
Excise Duty Service Tax Cess & Others VAT
Total Clearances
Domestic 7523.98 752.40 22.57 331.06
Export
Stock Transfers (Net)
Others, if any 10.00 0.50 0.42
Total 7533.98
Duties/Taxes Payable 752.90 22.57 331.48
Duties/Taxes Paid
Cenvat/VAT Credit Utilised - Inputs 451.74 13.55 232.03
Cenvat/VAT Credit Utilised - Capital Goods 25.96 0.78 12.98
Cenvat/VAT Credit Utilised - Input Services 12.50 22.34 0.38 -
Cenvat/VAT Credit Utilised - Others 0.50 4.30
Total - 490.70 22.34 14.71 249.31
Paid through PLA/Cash 216.78 7.87 82.16
Total Duties/Taxes Paid - 707.48 22.57 331.48
Duties/Taxes Recovered 707.48 22.57 331.48
Difference between Duties/Taxes Paid and Recovered - - -
Interest/Penalty/Fines Paid - - -
Particulars
Signature Signature
Name
Signature
Name Name Mr. X
CHAPTER - 11
RECONCILIATION OF INDIRECT TAXES (for the company as a whole)
Notes:
(2)Wherever,duration of the current year or the previous year is not 12 (twelve) months, same shall be clearly indicated in the
report.
Seal
(1)Wherever,thereis any significant variation in the current year's figure over the previous year's figure for any item shown
under each para of the Annexure to the Cost Audit Report, reasons thereof shall be given by the Cost Auditor.
CS/Director
Date Date Date
Mem./DIN No.
Stamp Stamp
Membership No. (s) 10000
Name
Cost Auditor (s) Director
DIN No.
Name Name Mr. X