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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART
SECTION
‐II,‐3, SUB‐SECTION (i)]
MINISTRY OF CORPORATE AFFAIRS
Notification
New Delhi dated the 7
G.S.R. 874 (E).
read with clause (d) of sub
1956), and in supersession of the Cost Accounting Records (Bulk Drugs) Rules, 1974 vide
G.S.R. 130(E), dated the 14
Rules, 1988 vide G.S.R. 452, dated the 22
omitted to be done before such supersession, the Central Government hereby makes the
following rules, namely:
th, Dec, 2011‐ In exercise of the powers conferred by sub‐section (1) of section 642,‐section (1) of section 209 of the Companies Act, 1956 (1 ofth March, 1974 and Cost Accounting Records (Formulations)nd April, 1988, except as respects things done or‐
1.
Records (Pharmaceutical Industry) Rules, 2011.
(2) They shall come into force on the date of their publication in the Official Gazette.
2.
Short Title and Commencement, – (1) These rules may be called the Cost AccountingDefinitions and Interpretations, – In these rules, unless otherwise requires,‐‐‐
(a) “Act” means the Companies Act, 1956 (1 of 1956);
(b)
including its salts, esters, stereo
such or as an ingredient in any formulation and shall include any bulk drug
included in any bona fide Allopathic, Ayurvedic, Homeopathic, Sidha or Unani
(Tibb) systems of medicine;
“bulk drugs" means any pharmaceutical, chemical, biological or plant product‐isomers and derivatives, which are used as
(c)
signed by a cost accountant in the specified form of compliance report;
(d) “Cost Accountant” for the purpose of these rules means
defined in clause (b) of sub
Accountants Act, 1959 (23 of 1959) and who is either a permanent employee
of the company or holds a valid certificate of practice under sub
section 6 and who is deemed to be in practice under sub
2 of that Act and includes a firm of cost accountants;
“compliance report” means the compliance report duly authenticated anda cost accountant as‐section (1) of section 2 of the Cost and Works‐section (1) of‐section (2) of section
(e) “Cost Accounting Standards” means the standards of cost accounting, issued
by the Institute;
(f) “cost records” means books of account relating to utilisation of materials,
labour and other items of cost as applicable to the production, processing,
manufacturing or mining activities of the company;
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(g) “Form
and other documents with the Central Government in the electronic mode;
(h) “Form
the compliance report;
(i) "formulations" means any medicine processed out of or containing one or
more bulk drugs with or without the use of any pharmaceutical aids for
internal or external use for or in the diagnosis, treatment, mitigation or
prevention of disease in human beings or animals and shall include any
medicine included in any bona fide Allopathic, Ayurvedic, Homeopathic, Sidha
or Unani (Tibb) systems of medicine;
(j) “Generally Accepted Cost Accounting Principles” means the principles of cost
accounting issued by the Institute;
(k) “Institute” means the Institute of Cost and Works Accountants of India
constituted under the Cost and Works Accountants Act, 1959 (23 of 1959);
(l) “pharmaceutical activities” means production, processing, or manufacturing of
bulk drugs or formulations and includes the meaning assigned to them under
the Drugs (Prices Control) Order 1995 as amended from time to time, or
included under Chapters 29 and 30 of the Central Excise Tariff Act, 1985 (5 of
1986), and further includes the intermediate products and articles or allied
products thereof;
(m) “product” means any tangible or intangible good, material, substance, article,
idea, know
human, mechanical, industrial, chemical, or natural act, process, procedure,
function, operation, technique, or treatment and is intended for use,
consumption, sale, transport, store, delivery or disposal;
(n) “product group” in relation to tangible products means a group of
homogenous and alike products, produced from same raw materials and by
using similar or same production process, having similar physical or chemical
characteristics and common unit of measurement, and having same or similar
usage or application; and in relation to intangible products means a group of
homogenous and alike products or services, produced by using similar or same
process or inputs, having similar characteristics and common unit of
measurement, and having same or similar usage or application;
(o) “turnover” means total turnover made by the company from the sale or supply
of all products or services during the financial year and it includes any turnover
from job work or loan license operations and the subsidies or grants or
incentives received but does not include any non
(p) all other words and expressions used in these rules but not defined, and
defined in the Act and rules made under clause (d) of sub
‐A” means the form specified in these rules for filing compliance report‐B” means the form of the compliance report and includes Annexure to‐how, method, information, object, service, etc. that is the result of‐operational income;‐section (1) of section
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209 of the Act shall have the same meanings as assigned to them in the Act or
rules, as the case may be.
3.
as defined under section 591 of the Act, which is engaged in the production,
processing, or manufacturing of pharmaceutical activities and wherein, the aggregate
value of net worth as on the last date of the immediately preceding financial year
exceeds five crores of rupees; or wherein the aggregate value of the turnover made
by the company from sale or supply of all products or activities during the
immediately preceding financial year exceeds twenty crores of rupees; or wherein
the company’s equity or debt securities are listed or are in the process of listing on
any stock exchange, whether in India or outside India:
Application, – These rules shall apply to every company, including a foreign company
Provided that these rules shall not apply to a body corporate governed by any
special Act.
4.
units and branches thereof shall, in respect of each of its financial year commencing
on or after the date of this notification, keep cost records and the books of account
so maintained shall contain, inter
mentioned in the Schedule annexed to these rules.
(2) The cost records referred to in sub
such manner so as to make it possible to calculate per unit cost of production
or cost of operations, cost of sales and margin for each of its products and
activities for every financial year on monthly or quarterly or half
annual basis.
(3) The cost records shall be maintained in accordance with the generally
accepted cost accounting principles and cost accounting standards issued by
the Institute; to the extent these are found to be relevant and applicable and
the variations, if any, shall be clearly indicated and explained.
(4) The cost records shall be maintained in such manner so as to enable the
company to exercise, as far as possible, control over the various operations
and costs with a view to achieve optimum economies in utilization of
resources and these records shall also provide necessary data which is
required to be furnished under these rules.
(5) All such cost records and cost statements, maintained under these rules shall
be reconciled with the audited financial statements for the financial year
specifically indicating expenses or incomes not considered in the cost records
or statements so as to ensure accuracy and to reconcile the profit of all
product groups with the overall profit of the company and the variations, if
any, shall be clearly indicated and explained.
Maintenance of records, – (1) Every company to which these rules apply, including all‐alia, the particulars specified in Proformae A to I‐rule (1) shall be kept on regular basis in‐yearly or
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(6) All such cost records, cost statements and reconciliation statements,
maintained under these rules,
financial years immediately preceding a financial year or where the company
had been in existence for a period less than eight years, in respect of all the
preceding years shall be kept in good order.
relating to a period of not less than eight
(7) Every person, referred to in sub
Companies Act, 1956 (1 of 1956), shall take all reasonable steps to secure
compliance by the company with the provisions of these rules in the same
manner as he is liable to maintain accounts required under sub
section 209 of the said Act.
5.
submit a compliance report, in respect of each of its financial year commencing on or
after the date of this notification, duly certified by a Cost Accountant, along with the
Annexure to the Central Government, in the specified form.
6.
compliance report referred to in rule 5 to the Central Government within a period of
one hundred and eighty
the compliance report relates.
7.
compliance report shall be approved by the Board of Directors and certified by the
Cost Accountant before submitting the same to the Central Government by the
company.
8.
provisions of these rules, he shall be punishable with fine, which may extend to five
thousand rupees.
(2) For contravention of these rules,
‐section (6) and (7) of section 209 of the‐section (1) ofForm of the Compliance Report, – Every company to which these rules apply shallTime limit for submission of Compliance Report, – Every company shall submit thedays from the close of the company’s financial year to whichAuthentication of Annexure to the Compliance Report, – The Annexure to thePenalties, – (1) If default is made by the Cost Accountant in complying with the‐
(a) the company shall be punishable as provided under sub
section 642 of the Act; and
(b) every officer thereof who is in default, including the persons referred to in
sub
under sub
1956).
9.
and Cost Accounting Records (Formulations) Rules, 1988, shall not in any way affect
‐section (2) of‐section (6) of section 209 of the Act, shall be punishable as provided‐sections (5) and (7) of section 209 of Companies Act, 1956 (1 ofSavings, – The supersession of the Cost Accounting Records (Bulk Drugs) Rules, 1974‐
(a) any right, obligation or liabilities acquired, accrued or incurred
thereunder;
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(b) any penalty, forfeiture or punishment incurred in respect of any
contravention committed thereunder; and
(c) any investigation, legal proceeding or remedy in respect of any such right,
privilege, obligation, liability, penalty, forfeiture or punishment as
aforesaid, and; any such investigation, legal proceeding or remedy may be
instituted, continued or enforced and any such penalty, forfeiture or
punishment may be imposed as if those rules had not been superseded.
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FORM
documents with the Central Government
[Pursuant to section 209(1)(d), 600(3)(b) of the Companies Act, 1956 and rule 2 of the Cost Accounting
Records (Pharmaceutical Industry) Rules, 2011]
PART I
Note: All fields marked in * are to be mandatorily filled.
‐A Form for filing Compliance Report and other‐ GENERAL INFORMATION
1 (a) *Corporate identity number (CIN) or
foreign company registration number of
the company
Pre
‐Fill
(b) Global location number (GLN) of
company
2 (a) *Name of the company
(b) *Address of the registered office or of
the principal place of business in India
of the company
(c) *E
3 (a) *Financial year covered by the
compliance report
From
(DD/MM/YYYY)
To (DD/MM/YYYY)
(b) *Date of Board of directors’ meeting in which annexure
to the compliance report was approved
(DD/MM/YYYY)
4.
‐mail Address of the companyDetails of the cost accountant
(a) *Category of the cost accountant Individual Cost accountant’s
firm
(b) In case of individual, whether the cost accountant
is in permanent employment of the company or in
practice
In Employment In Practice
(c) *Name of the cost accountant or the
cost accountant’s firm who has certified
the cost records of the company
(d) *Income tax permanent account number of the cost accountant or the cost
accountant’s firm
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(e) *Membership number of cost accountant or cost accountant’s firm’s
registration number
(f) Address of the cost accountant or cost accountant’s firm
(i) Line I
Line II
(ii) City
(iii) State
(iv) Country
(v) Pin Code
(g) *E
cost accountant’s firm
5.
‐mail ID of the cost accountant or*Quantitative Information
Sno. Name of the Product or Service Group Unit Annual Net Sales
Production
(Quantity)
(Quantity) (Value in
Rupees)
A Produced or Manufactured Product
1.
2.
3. etc.
B Services Groups
1.
2.
3. etc.
C Trading Activities (Product Group
1.
2.
3. etc.
D Other Income
Total Income as per Financial Accounts
‐wise)
PART
Attachments:
‐II
1
Compliance report as per the Cost Accounting
Records(Pharmaceutical Industry) Rules, 2011
Attach
2 Optional attachments(s) – if any
Attach
List of attachments
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Remove attachment
Verification:
To the best of my knowledge and belief, the information given in this form and its attachments is correct
and complete.
I have been authorised by the Board of directors’
resolution number
dated
(DD/MM/YYYY)
to sign and submit this form.
I am authorised to sign and submit this form.
To be digitally signed by:
Managing Director or director or manager or secretary (in case of an Indian company)
or an authorised representative (in case of a foreign
company)
Digital
Signatures
*Designation
*Director identification number of the director or Managing Director; or Income
of the manager or of authorised representative; or Membership number, if applicable or
income
may quote his/her income
Director of the company
Digital
Signatures
Director identification number of the director
‐tax PAN‐tax PAN of the secretary (secretary of a company who is not a member of ICSI‐tax PAN)
Modify Check Form Pre
This e
on the basis of statement of correctness given by the filing company
‐scrutiny Submit‐form has been taken on file maintained by the Central Government through electronic mode and
FORM
‐B
FORM OF COMPLIANCE REPORT
[See rule 2, and rule 5]
I or We ........................................... being in permanent employment of the company or in
practice, and having been appointed as cost accountant under Rule 5 of the Cost Accounting
Records (Pharmaceutical Industry) Rules, 2011 of …...........................................................
name of the company)
registered office address of the company)
examined the books of account prescribed under clause (d) of sub
said Act, and other relevant records for the period/year .............................
year)
(mentionhaving its registered office at ..................................................... (mention(hereinafter referred to as the company), have‐section (1) of section 209 of the(mention the financialand certify as under:
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1 I or We have or have not obtained all the information and explanations, which to the best of
my or our knowledge and belief were necessary for the purpose of this compliance report.
2 In my or our opinion, proper cost records, as per the Cost Accounting Records (Pharmaceutical
Industry) Rules, 2011 prescribed under clause (d) of sub
Companies Act, 1956, have or have not been maintained by the company so as to give a true
and fair view of the cost of production or operation, cost of sales and margin of all the
products and activities of the company.
3 Detailed unit
respect of the product groups or activities are or are not kept in the company.
4 In my or our opinion, the said books and records give or do not give the information required
by the Companies Act, 1956 in the manner so required.
5 In my or our opinion, the said books and records are or are not in conformity with the
generally accepted cost accounting principles and cost accounting standards issued by The
Institute of Cost and Works Accountants of India, to the extent these are found to be relevant
and applicable.
Dated: this ____ day of _________ 20__ at _________________ (
signing this report
SIGNATURE AND SEAL OF THE COST ACCOUNTANT (S)
MEMBERSHIP NUMBER (S)
NOTES:
(i) Delete words not applicable.
(ii) If as a result of the examination of the books of account, the cost accountant desires to
point out any material deficiency or give a qualified report, he shall indicate the same
against the relevant para.
(iii) Briefly give your observations and suggestions, if any, relevant to the maintenance of cost
accounting records by the company.
(iv) Cost accountant may use separate sheet(s) for (ii) and (iii) above, if required.
‐section (1) of section 209 of the‐wise and product or activity‐wise cost statements and schedules thereto inmention name of place of)
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ANNEXURE TO THE COMPLIANCE REPORT
[See rule 2 and rule 5]
1. GENERAL:
a) Name of the company:
b) Registered office address:
c) Financial year to which the Compliance Report relates.
2. QUANTITATIVE INFORMATION:
Sno. Name of the Product or Service Net Sales
Group
Unit Annual
Production
(Qty.)
(Qty.) (Value in
Rupees)
A Produced or Manufactured Product
Groups
1.
2.
3. etc.
B Services Groups
1.
2.
3. etc.
C Trading Activities (Product Groupwise)
1.
2.
3. etc.
D Other Income
Total Income as per Financial Accounts
3. RECONCILIATION STATEMENT:
Net Margin (Profit or Loss) as per Cost Accounts (In Rupees)
A. From Produced or Manufactured Product Groups
B. From Services Groups
C. From Trading Activities
Total as per Cost Accounts
Add: Incomes not considered in Cost Accounts (if any)
Less: Expenses not considered in Cost Accounts (if any)
Add/Less: Difference in Stock Valuation
Profit or (Loss) as per Financial Accounts
NOTES:
(i) For produced or manufactured product groups, use the nomenclature as used in the
Central Excise Act or Rules, as applicable.
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(ii) For services groups, use the nomenclature as used in the Finance Act or Central
Service Tax Rules, as applicable.
SIGNATURE
NAME
COST ACCOUNTANT (S)
MEMBERSHIP NUMBER (S)
SEAL
DATE
"SCHEDULE”
[See rule 4]
PROFORMA ‘A’
Statement showing cost of Utilities like Water or Power etc
.
Name of the Company
Name of the Unit
Name of the Utility
For the period
I Quantitative Information
Sno. Particulars Unit Current year Previous year
1 Installed Capacity
2 Quantity Produced
3 Capacity Utilization (%)
4 Quantity re
5 Quantity Purchased, if any
6 Self consumption including losses (to be specified)
7 Net Units Available
‐circulated
II Cost Information
:
Quantity Rate per Cost per Unit
unit
Amount
Current
Year
Previous
Year
Sno. Particulars
Unit Rs. Rs. Rs. Rs.
1 Materials Consumed (specify)
Indigenous
Imported
Self Manufactured/Produced
2. Process Materials/ Chemicals
(specify)
3. Utilities (specify):
4. Direct Employees Cost
5. Direct Expenses (specify)
6. Consumable Stores and Spares
7. Repairs and Maintenance
8. Depreciation
9. Lease rent, if any
10. Other overheads
11. Sub
12. Less: Credit, if any
‐total (1 to11)
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Quantity Rate per Cost per Unit
unit
Amount
Current
Year
Previous
Year
Sno. Particulars
Unit Rs. Rs. Rs. Rs.
13. Total cost (12
Apportionment: (cost centre
‐11)‐wise)
1. Cost Centre 1
2. Cost Centre 2
3. Cost Centre 3
Total
PROFORMA ‘B’
Statement showing Summary Quantitative Details of all Intermediates or Bulk Drugs
Processed or Manufactured
Name of the Company
Name and address of the Factory
Drug Licence No. & Date
For the period
Sno. Particulars Unit Current Year Previous Year
1. i) Installed Capacity
ii) Capacity by leasing arrangements etc
Total Capacity
2.
Production:
a. Dedicated Plant
b. Multipurpose Equipment or Plant
c. Under Loan Licence if any
Total
3. Average Working Hours per day
4. Actual Operating Days in a year
Particulars Quantity per Unit Quantity per Unit
5.
Gross Inputs: Standard Actual Standard Actual
a)
Intermediate or Ingredient 1:
Materials Consumed (specify)
Process Chemicals (specify)
Utilities ( specify)
Total
b)
Intermediate or Ingredient 2:
Materials Consumed (specify)
Process Chemicals (specify)
Utilities ( specify)
Total
c)
Intermediate or Ingredient 3:
Materials Consumed (specify)
Process Chemicals (specify)
Utilities ( specify)
Total
Provide details of all Intermediates or Ingredients or Bulk Drugs separately as above under Sno. 5.
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PROFORMA ‘B
Statement showing Cost of Production of Intermediates or Bulk Drugs Processed or
Manufactured
‐1’
Name of the Company
Name and address of the Factory
Drug Licence No. and Date
Name of Ingredient or Intermediate or Bulk Drug
For the period
I. Quantitative Information:
Sno. Particulars Unit Current Year Previous Year
1. Batch Size
2. Number of Batches Produced
3. Actual Yield %
4. Standard Yield %
5. Production
II Cost Information:
Rate Amount Cost per Unit
Current
Year
Previous
Year
Sno. Particulars Unit Quantity
Rs. Rs. Rs. Rs.
1. Materials Consumed (specify)
a) Indigenous purchased
b) Imported
b) Self manufactured/ produced
Total
2 Process Chemicals (specify)
3 Utilities (specify)
4 Direct Employees Cost
5 Direct Expenses (specify)
6 Consumable Stores and Spares
7 Repairs and Maintenance
8 Quality Control Expenses
9 Research and Development
10 Technical know
11 Depreciation or Amortization
12 Other Production Overheads
‐how Fee
13 Total ( 1 to 12)
14 Add, Opening Stock in Process
Less, Closing Stock in Process
Balance
15 Less: Credits from Recoveries
16 Cost of Production
III ALLOCATED TO
1.
2.
3. (specify)
Total
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PROFORMA ‘C’
Statement showing Cost of Sales, Sales Realization and Margin in respect of
Intermediates or Bulk Drug Processed or Manufactured and Sold
Name of the Company
Name and address of the Factory
Drug Licence No. and Date
Name of Ingredient or Intermediate or Bulk Drug
For the period
I. Quantitative Information:
Sno. Particulars Unit Current Year Previous Year
1. Production Transferred
2. Less, Captive Consumption
Balance
Opening Stock – Unpacked
Closing Stock – Unpacked
Packed Production
3. Opening Stock – Packed
4. Closing Stock – Packed
5. Balance
6. Quantity transferred for:
(a) Domestic Sale
(b) Export Sale
(c) Others (specify)
II Cost Information:
Rate Amount Cost per Unit
Current
Year
Previous
Year
Sno. Particulars Unit Quantity
Rs. Rs. Rs. Rs.
1. Cost of Production b/f
(Proforma B)
2. Less: Captive Consumption
for:
(a) Product 1
(b) Product 2 (etc.)
3. Balance Packed
4. Add, Opening Stock –
Unpacked
Less, Closing Stock –
Unpacked
5. Packing Cost
(a) Materials
(b) Others
6. Cost of Packed Production
7. Add, Opening Stock – Packed
Less, Closing Stock – Packed
8. Balance
9. Administrative Overhead
10. Selling and Distribution
Overheads
11.
Cost of Sales
12. Interest and Financing
charges
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Rate Amount Cost per Unit
Current
Year
Previous
Year
Sno. Particulars Unit Quantity
Rs. Rs. Rs. Rs.
13.
Total Cost
14. Net Sales Realisation
15. Margin
16. Add: Export Benefits and
Incentives, if any
17. Total Margin (including
export benefits)
PROFORMA ‘D’
Statement showing Cost of Production of Intermediates or Bulk Drug or Formulation
processed on Job Charges basis
Name of the Company
Name and address of the Job Processor
Drug Licence No. and Date
Name of Ingredient or Intermediate or Bulk Drug
For the period
I. Quantitative Information:
Sno. Particulars Unit Current Year Previous Year
1.
Material Sent to Processor (specify details}
a) Raw Materials
b) Ingredients
c) Bulk Drugs
d) Packing Materials
2.
Opening Stock of Materials
a) Raw Materials
b) Ingredients
c) Bulk Drugs
d) Packing Materials
3.
Closing Stock of Materials
a) Raw Materials
b) Ingredients
c) Bulk Drugs
d) Packing Materials
4.
Material Consumed (specify details}
a) Raw Materials
b) Ingredient
c) Bulk Drugs
d) Packing Material
5.
Normal wastage of material
6. Abnormal wastage of material
7.
Quantity Produced
a) Bulk Drugs
b) Formulations
8.
Quantity Produced (as per Excise Records)
a) Bulk Drugs
b) Formulations
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II Cost Information:
Rate Amount Cost per Unit
Current
Year
Previous
Year
Sno. Particulars Unit Quantity
Rs. Rs. Rs. Rs.
1. Materials Consumed by
Processor (specify)
2. Processing Charges
3. Add, Opening Stock in
Process
Less, Closing Stock in Process
Balance
4. Less: Credits from
Recoveries
5. Cost of Production
6. Add, Opening Stock –
Unpacked
Less, Closing Stock –
Unpacked
7. Packing Material Cost
8. Cost of Packed Production
Add, Opening Stock – Packed
Less, Closing Stock – Packed
9. Balance Received from
Processor
ALLOCATED TO:
1.
2.
3. (etc.)
17
PROFORMA ‘E’
Statement showing Allocation and Apportionment of Total Expenses and Conversion and Packing Cost for various Cost Centres
Name of the company
Period
(Amount in Rupees)
Sno. Particulars Total
Expenses as
per Audited
Financial
Accounts
Utilities
(separately
for each)
Production
Cost Centres
(specify
separately)
1
Packing Cost
Centres (specify
primary or
secondary
separately)
2
Factory
Overheads
Administration
Overheads
Marketing or
Selling and
Distribution
Other
Activities
Non Cost
Expenses
Quantitative Details
No. of Batches
Quantity Input
Quantity Output
Machine Hours or Labour Hours
a) Available
b) Worked
Cost Information:
1. Direct Materials (specify)
2. Process Chemicals(specify)
3. Chemicals (specify)
4. Power and Fuel
5. Employee Benefits:
a) Salaries, Wages, Bonus Etc.
b) Contribution to Provident and Other Funds
c) Staff Welfare Expenses
6. Consumable Stores and Spares
7.
Repairs and Maintenance
a) Plant and Machinery
18
Sno. Particulars Total
Expenses as
per Audited
Financial
Accounts
Utilities
(separately
for each)
Production
Cost Centres
(specify
separately)
1
Packing Cost
Centres (specify
primary or
secondary
separately)
2
Factory
Overheads
Administration
Overheads
Marketing or
Selling and
Distribution
Other
Activities
Non Cost
Expenses
b) Buildings
c) Others
8. Other Direct Expenses (specify)
9. Rent
10. Insurance
11. Rates and Taxes
12. Payment To Auditors
13. Traveling and Conveyance
14. Communication Expenses
15. Printing and Stationery
16. Bank Charges
17. Security Force Expenses
18. Sales Promotion Expenses
19. Handling Expenses
20. Miscellaneous Expenses
21. Transportation Charges
22. Quality Control
23. Royalty or Technical Know
24. Technical Assistant Fees
25. Other Statutory Levies
26. Lease Rent
27. Research and Development
28. Packing Expenses
29. Borrowing Charges
30. Loss on Assets Sold, Lost or Written Off
‐how
19
Sno. Particulars Total
Expenses as
per Audited
Financial
Accounts
Utilities
(separately
for each)
Production
Cost Centres
(specify
separately)
1
Packing Cost
Centres (specify
primary or
secondary
separately)
2
Factory
Overheads
Administration
Overheads
Marketing or
Selling and
Distribution
Other
Activities
Non Cost
Expenses
31. Exchange Rate Fluctuations
32. Provision For Doubtful Debts, Advances,
Claims and Obsolescence
33. Provision for Contingencies
34. Depreciation or Depletion
35.
Total Expenses
36.
Allocation of Utilities (specify)
37.
Apportionment of Overheads (specify
38.
Total
39.
Components
Less, Cost of Materials and Bought Out
40.
Conversion Cost (38‐39)
41.
Hour
Cost per Machine Hour or Direct Labour
42.
Current Year
43.
Previous Year
1. Specify cost centres as Weighing and Mixing, Filtration, Tablet Making, Preparation, Inspection, Testing, Quality Control etc under Production cost centres, as applicable.
2. Packing cost centres to be shown separately under Cartooning, Boxing, etc. under Primary or Secondary Packing cost centres.
20
Reconciliation Control:
Sno. Particulars Total
Expenses as
per Audited
Financial
Accounts
Utilities
(separately
for each)
Production
Cost Centres
(specify
separately)
Packing Cost
Centres
(specify
primary or
secondary
separately
Factory
Overheads
Administration
Overheads
Marketing or
Selling and
Distribution
Other
Activities
Non Cost
Expenses
1. Total Expenses b/f as per Sno. 35 above
2. Add, Opening Stock in Process
Less, Closing Stock in Process
3. Less, Credit for Recoveries
4. Less, Self Consumption, if any,
5. Add, Opening Stock – Finished
Less, Closing Stock – Finished
6.
Total (excluding Excise Duty)
7. Excise Duty Paid
8.
Total (including Excise Duty)
9.
Duty
Total Sales Realization (excluding Excise
10. Excise Duty Recovered
11.
Total Sales (including Excise Duty)
12. Add: Export Benefit, if any
13.
Profit as per Profit and Loss Account
21
PROFORMA ‘F’
Statement showing Apportionment of Conversion Cost and Packing Cost for various Products
Name of the Company
Name and address of the Factory
Drug Licence No. and Date
For the period
Sno. Product or Formulation
(specify)
Size Qty Total Cost Centres
as Weighing & Mixing, Filtration, Tablet Making,
Preparation, Inspection, Testing, Quality Control
etc. in columns below)
(Specify Names of cost centres such
Total Cost Centres
as Weighing & Mixing, Filtration, Tablet Making,
Preparation, Inspection, Testing, Quality Control
etc. in columns below)
(Specify Names of cost centres such
1 2 3 4 5 6 7 8 9 10 11 12 13 14
X Y X Y X Y X Y X Y X Y X Y X Y X Y X Y
Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs.
Apportionment of A. Conversion Cost to Product or Formulations B. Packing Cost to Product or Formulations
1
2
3
4
4
6
Etc.
Total
X = Actual direct labour or machine hours utilized as per actual recording or any other appropriate basis of apportionment.
Y = Conversion Cost in rupees
22
PROFORMA ‘G’
Statement showing Cost of Production, Cost of Sales, Sales Realization and Margin in
respect of Formulation
Name of the Company
Name and address of the Factory
Drug Licence No. and Date
Name of the Formulation/Drug
For the period
Sno. Particulars
1 Name of the formulation (with trade mark) manufactured or marketed and its composition
2 Type of Formulations: Plain or Coated Tablet, Soft or Hard or Printed Capsules with or without
Band, Sterile or Non sterile Liquid Powder or Ointment or Cream etc. (specify)
3 Type of Packing: Aluminum or Paper or Cellophane or Blister or Stripe or Vials or Ampoule or
Bottle or Tin or Jar etc. (specify)
4 Size of Packing (specify)
5 Batch Size (Specify)
Standard Actual
6
Year
Previous
Year
Current
Year
Previous
Year
Production Current
I No. of Batches Charged
II No. of Batches Produced
III Total Quantity Produced
IV Quantity Packed
V Packed Quantity Sold
(a) Quantity Sold in each pack size
(b) Total number of Packs Sold
VI Assessable Value of the product reconciled with
Excise Records
Quantity Sno. Particulars Unit Rate Amount Cost Per unit
Theoretical
Actual Rs. Rs. Current
Year
Previous
Year
A Materials Consumed
(a) Imported (specify input)
(b) Indigenous (specify inputs)
(c) Own Produced or Manufactured
(Specify major items)
(d) Less : Wastes or Rejects
(e)
B Primary Packing Material
Total Material Cost (A)
(a) Aluminum or PVC or Cellophane,
Blister Foil etc. for front use
(b) Aluminum or PVC or Cellophane,
Blister Foil etc. for back side
(c) Bottle or Container or Tube etc
(d) Ampoules/Vials etc
(e) Capsules etc.
(f) Leaflets
(g) Cartons
(h) Others (specify)
(i) Less : Wastes or Rejects
(j)
C Conversion Cost
Total Packing Materials (B)
23
Sno. Particulars Unit Quantity Rate Amount Cost Per unit
Theoretical
Actual Rs. Rs. Current
Year
Previous
Year
(a) Weighing and Mixing
(b) Filtration
(c) Preparation of Solution or
Ointment
(d) Inspection
(e) Quality Control
(f) Testing
(g) Research and Development
(h) Others (specify)
(i)
D Packing Cost (D)
E Other Expenses
Total Conversion Cost (C)
(a) Royalty
(b) Storage
(c) Others (specify)
(d)
F Total Cost (A+B+C+D+E)
G Add: Opening Work
Less: Closing Work
H Adjustment for Cost Variance
I Total Production Cost (F to H)
J Secondary Packing Materials
Total (E)‐in‐Progress‐in‐Progress
(a) Cartoons
(b) Leaflets
(c) Dropper
(d) Boxes
(e) Gum Tapes
(f) Others (specify)
(g) Less : Wastes or Rejects
(h)
K Secondary Packing Cost or
Charges
Total (a to g)
(a) Cartooning
(b) Boxing
(c) Others (specify)
(d)
L Total Cost of Packed Production
(I+J+K)
M
Sample or Trails etc.
Total (a to c)Less: Transfer for Clinical or
N Balance (L+M)
O
Less: Closing Stock – Packed
Add: Opening Stock – Packed
P Balance Sold
Q Administration Overheads
R Cost of Goods Sold (P+Q)
(a) Domestic Sales
(b) Export Sales
(c) Total (a+b)
S
‐1 Distribution Cost (specify)
a)
b)
c) etc
24
Sno. Particulars Unit Quantity Rate Amount Cost Per unit
Theoretical
Actual Rs. Rs. Current
Year
Previous
Year
S
‐2 Sales Promotion Expenses
(a) Wholesalers
(b) C and F Agents
(c) Retailers
(d) Others (specify)
S
‐3 Trade Commission
(a) Wholesalers
(b) C and F Agents
(c) Retailers
(d) Others (specify)
T Total (R+S1+S2+S3)
U
Interest and Financing Charges
V
included in Cost (give details)
Other Expenses or Income not
W
Excise Duty
Total Cost of Sales excluding
X
Excise Duty
(a)
(b)
(c)
Domestic Sales
Export Sales
Add: Export Benefits and
Incentives
(d)
Y
Net Sales Realization excludingTotal (a to c)Margin( N‐M)
Z
Excise Duty
‐1 Maximum Retail Price excluding
Z
applicable
‐2 Maximum Price under DPCO as
Z
‐3 Assessable Value of the Product
Z
‐4 Excise Duty
25
Proforma ‘H’
Statement showing Activity
Activities
‐wise Capital Cost of Plant and Machinery/Equipment relating to Bulk Drugs, Formulations and Other Common Services &
Name of the company:
For the Period:
(Amount in Rupees)
Sno. Particulars Gross Block Depreciation Net Block
Cost as at
beginning
of the year
Additions or
Transfers
during the
year
Deductions
or Transfer
during the
year
Total Cost
at the end
of the year
As at
beginning
of the year
For the year On
deductions
during the
year
Total at the
end of the
year
As at
beginning
of the year
As at the
end of the
year
A. Ingredients (specify)
1.
2.
etc
B. Bulk Drug Activity (specify)
1.
2.
etc
C. Formulations (specify)
1.
2.
etc
D. Packing
1.
2.
etc
E. Utilities (specify)
1.
2.
etc
F. Common (Production/Administrative/Marketing) Overheads (specify)
1.
2.
etc
H. Grand Total (A to G)
26
PROFORMA ‘I’
Statement of Profit Reconciliation (for the company as a whole)
Name of the Company
Drug Licence No. and Date
For the period
Sno. Particulars Current Year Previous Year
Rs. Rs.
1. Profit or Loss as per Cost Accounting Records
a) For Product Groups under these Rules
b) For the Product Groups outside these Rules
2. Add: Incomes not considered in cost accounts:
(a) Specify
(b)
Total
3. Less: Expenses not considered in cost accounts:
(a) Specify
(b)
Total
4. Add: Overvaluation of Closing Stock in Financial Accounts
5. Add: Undervaluation of Opening Stock in Financial Accounts
6. Less: Undervaluation of Closing Stock in Financial Accounts
7. Less:: Overvaluation of Opening Stock in Financial Accounts
8. Adjustments for others, if any (specify
9. Profit or Loss as per Financial Accounts
NOTES
1 Separate cost statement shall be prepared for each utility or each activity or sub
or inter
Formulations in the prescribed proforma. In case Intermediates or Bulk Drugs or
Formulations are processed through outside agency on job charges basis, separate cost
statement shall be prepared in the prescribed proforma indicating job processing
charges separately.
2 In case the company follows a pre
statement shall reflect figures at actual after adjustment of variances, if any. Reasons
for variations between standards and actual shall be clearly recorded. This information
is to be indicated for two years. Circumstances leading to revision of standards, if any
shall also be indicated in the form of a foot note.
3 If the drug is manufactured by fermentation process the following information shall be
:‐activity‐unit and inter‐company transfers relating to Intermediates or Bulk Drugs or‐determined or standard costing system, the cost
27
maintained on annual average basis:
‐
(a) number of fermenters with their operating capacity or volume, average
fermentation hours and turnaround time;
(b) average whole broth volume, whole broth potency and filtered broth potency per
batch;
(c) stage
from the fermented broth;
(d) average batch output and number of batches processed and drained;
(e) average potency/purity of the finished drug; and
(f) stage
including solvents usage shall be maintained along with quantity produced at each
stage. Similarly details of consumption of primary utilities of in respect of the drug
shall be maintained.
4 If the drug is manufactured by chemical process, the following details shall also be
maintained, namely:
‐wise and overall percentage recovery efficiency of both drug and intermediate‐wise annual average quantity consumption of all major raw materials‐
(a) In the case of dedicated facilities, details such as name of the equipment and
designed capacity, number of equipments available, position or code number of the
equipment, reaction or operation carried out in the equipment, batch size (input or
batch and output or batch), occupancy time hour, yield and WIW with respect to
main input at each stage and the cumulative yield, by
solvents etc. (Kg. or Ltr.).
(b) In case any other product is manufactured in the above set of equipment similar
data shall be maintained for such item and allocation of time at each equipment
alongwith basis of allocation.
5 Appropriate chemical equation of reaction with molecular weight and recovery levels of
solvents and by
in the process of technology and the consequential benefit there from during the year
or in the recent past shall be maintained.
6 Actual quantity consumed including overages, if any should be included in Proforma ‘G’.
7 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.
8 Separate proforma shall be prepared for the quantity sold within the country and the
quantity exported. Expenses incurred on export and the incentive earned thereon shall
be indicated in the proforma applicable for the quantity produced and exported. The
value of export incentives and other benefits received on exports shall be included in
sales realization. Separate cost details shall be maintained for expenditure incurred for
getting accreditation from overseas regulatory authorities and its recurring expenditure
thereof, if any. This cost shall be charged to products exported on scientific and
‐product or recoveries of‐product at each stage shall also be kept. Further, in case of any change
28
equitable basis.
9 Sales realizations shall be separately indicated for the quantities of product under
reference sold (i) at the notified prices under Drug (Prices Control) Order, 1995 and (ii)
at prices fixed by the company.
10 The quantitative basis of apportionment of common overheads should be enclosed
separately.
11 The items of cost shown in the proforma are indicative and the same shall be reflected
keeping in mind the materiality of the item of cost in the product and activity group.
12 Details of apportionment of depreciation to respective activity shall be specified
separately for common fixed assets.
13 The conversion cost shall be indicated cost center
capsules, syrups, injectables, ointment etc in relevant proforma.
14 Liabilities, if any, of overcharging on account of selling at a price higher than the price
fixed by the Government shall be furnished.
15 The packing cost shall be indicated cost center
capsules, syrups, injectables, ointment etc.
16 The abnormal Loss, if any, both in quantity and cost shall be shown in a separate
statement indicating the reasons and per unit impact thereof.
17 All items of income and expenditures in Proforma ‘I’ shall be reconciled with the
financial accounts for the relevant period.
[F. No. 52/7/CAB
B.B.GOYAL
Adviser (Cost)
‐wise separately in respect of tablets,‐wise separately in respect of tablets,‐2011]
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