MODEL COST AUDIT REPORT

ANNEXURE TO COST AUDIT REPORT RULES, 2011

CAMAP
INTER ACTIVE WORKSHOP
on 22nd FEB 2012

PRESENTATION
BY
Y R DOSHI AND ASSOCIATES
COST ACCOUNTANTS
MUMBAI
yrdassociates@gmail.com

ANNEXURE TO THE COST AUDIT REPORT

[See rule 2 and rule 6]
CHAPTER - 1
GENERAL INFORMATION
1

CIN or GLN of the company:

L12345MH1234BLCO55578

Name of the company:

Rajkumar Paper Mills Limited

Registered office address:

Chinchwad, Pune 411 039.

Corporate office address:

R.S.Gandhi Marg, Fort, Mumbai 400080

E-mail address of the company:

rk@rajkumar.com

Company's financial year to which the Cost Audit Report relates:

1st April 2011 to 31st March 2012

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
Mr.Z
M. NO. 30000
J. B. Nagar, Borivli , Mumbai 400 092.
E-Mail : xyzco123@yahoo.com

SRN Number and date of Filing of Form 23C with the Central Government:
A63826384

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.

CHAPTER - 2
COST ACCOUNTING POLICY
1

1.00

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:
Basics of Costing Policy

1.01

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,

1.02

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.

1.03

Identification of cost centers/cost objects and cost drivers:

The company emphasis on direct identification of expenses with product / plant and common expenses as classified
overheads as under:
Plant Cost Centers and Cost Objects
Waste Paper Plant
Stock preparation & Paper Machine No 1
Stock preparation & Paper Machine No 2
Rewinder
Super Calenders
Slitting
Cutting
Finishing and Packing.

Cost Drivers
Production in Tonnage
Machine Hour Utilization / Available
Machine Hour Utilization / Available
Machine Hour Utilization / Available
Machine Hour Utilization / Available
Machine Hour Utilization / Available
Machine Hour Utilization / Available
Tonnage

Common Utilities and Services

Pump House for water treatment
Boiler House for steam generation
Power House for distribution of electricity
Effluents treatment plant Strategy
Plant Maintenance (Work shop)

Water Utilization (KL)

Steam Utilization (MT)
Power Utilization (KWH)
Treated Water (KL)
Estimated % of Utilization

Factory O/h including Administration

Administration and Corporate O/h
Selling & Distribution O/h

Purpose & Nature of expenses

Purpose & Nature of expenses
Purpose & Nature of expenses

Accounting for material cost including packing materials, stores and spares etc., employee cost, utilities and other
relevant cost components.
1.10
1.11

Material and Stores Accounting :

Material Cost
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.

1.12

Packing Material
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.

1.13

Stores & Spares

Consumable Stores and spares are identified with consumption cost centre. Machinery spares issues are treated as repairs
to Plant & machinery.

1.20
1.21

Employees Cost
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
Provident / Pension Fund and Employees State Insurance, linked insurance, Provision for bonus & Gratuity, etc.

1.22

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

1.30

Utilities :
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.

1.31

Repairs & Maintenance

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.

1.40

Accounting, allocation/apportionment and absorption of overheads

1.41

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
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.
Corporate Administrative Overheads
The Corporate administrative overheads are absorbed directly into the variety of paper on the basis of sales realization of
paper sold.
Selling and Distribution Overheads
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.

1.50

Accounting for Depreciation/Amortization

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.

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.

1.70
1.71

Basis for Inventory Valuation

Raw material, Packing material, Stores & Spares are valued at landed cost on moving weighted average / FIFO method.

1.73

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.

1.74

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.
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.

1.75

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.

1.80
1.81
1.82
1.83
1.84

Other relevant cost accounting policy adopted by the Company

Treatment of Foreign exchange gain/(Loss) on Plant & Machinery, imported material, sales of FG, etc.
Company Social responsibility
Treatment of expenditure during construction period.
Financial Cost
Interest on term loans, premium on redemption of Debenture/Debts, interest on working capital.

1.90

Revenue sales recognition

1.91
1.92
1.93
1.94

Domestic Realisation
Export realisation
Export benefits
Central excise duty and service tax.

2)

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.
Change in Method of WIP & Finished goods Inventory valuation, Identification of overheads, etc.

3)

Observations of the Cost Auditor regarding adequacy or otherwise of the Budgetary Control System, if any,
followed by the company.

4)

In case the Company has adopted IFRS, variations (if any) in treatment of cost accounting arising out of adoption
of IFRS in Financial Accounting.
Not Applicable.

CHAPTER - 3
PRODUCT GROUP DETAILS (for the company as a whole)
Sr. Name of each Product Group
no.

Names of
Net Sales (net of taxes,
Products/
duties, etc.) (Rs. Lakh)
Activities
included in
the Product
Group
2011-12

Covered
under Cost
Audit

2010-11

(Yes/No)

A Manufactured Product Groups

1 White Printing Paper
2 Tissue Paper
3
4 etc.
Sub-Total (A)
B Services Groups
1
2
3
4
Sub-Total (B)
C Trading Activities (Product Group-wise)
1
2
3
4 etc.
Sub-Total (C)
D Other Incomes
1 Dividend, Interest
2 Profit on Sales of Fixed Assets
3 Misc., Scrap Sales, etc.
Sub-Total (D)
E Total Income as per Audited Annual Report (A+B+C+D)

Maplitho,
M.G. Poster,
etc.
Sanitary
Tissues

3507.98

Yes

4016.01

Yes

7523.98

12.57
2.07
5.20
19.84
7543.82

Increase / Decrease in turnover is due to .

NOTES: 1) For manufactured product groups, use the nomenclature as used in the Central Excise Act and Rules, as applicable.
2) For service groups, use the nomenclature as used in the Finance Act / Central Service Tax Rules, as applicable.

CHAPTER - 4 (A)
QUANTITATIVE INFORMATION
Name of the Company
:
Name of the Product Group
:
Name of the Products covered in the Product Group : Paper
Financial Year
S.N. Particulars
1. Available Capacity
(a) Installed Capacity
(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
2. Actual Production
(a) Self manufactured
(b) Produced under leasing arrangements
(c) Produced on loan license / by third parties on job work
(d) Total Production
3. Production as per Excise Records
4. Capacity Utilization (in-house)
5. Stock Purchased for Trading
(a) Domestic Purchase
(b) Imports
(c) Total Purchases
6. Stock & Other Adjustments
(a) Change in Stock of Finished Goods
(b) Self / Captive Consumption (incl. samples etc.)
(c) Other Quantitative Adjustments, if any (wastage etc.)
(d) Total Adjustments
7. Total Available Quantity for Sale [2(d) + 5(c) - 6(d)]
8. Actual Sales
(a) Domestic Sales (manufacturing)
(b) Domestic Sales (trading)
(c) Export Sale (manufacturing)
(d) Export Sale (trading)
(f) Total Quantity Sold

Rajkumar Paper Mills Limited

White Printing Paper
(Qty. in MT)
2011-12
2010-11
Cur. Year
Prev. Year
9000

9,000
0

9,000

9,000

8086

8086
8086
90

0
0

-40
0
0
-40
8046
8046

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.

CHAPTER - 4 (B)
QUANTITATIVE INFORMATION
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
10,000
10,000
(a) Installed Capacity
(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
8865
(a) Self manufactured
(b) Produced under leasing arrangements
(c) Produced on loan license / by third parties on job work
(d) Total Production
8865
8865
3. Production as per Excise Records
89
4. Capacity Utilization (in-house)
5. Stock Purchased for Trading
(a) Domestic Purchase
(b) Imports
(c) Total Purchases
6. Stock & Other Adjustments
-124
(a) Change in Stock of Finished Goods
(b) Self / Captive Consumption (incl. samples etc.)
(c) Other Quantitative Adjustments, if any (wastage etc.)
(d) Total Adjustments
-124
8741
7. Total Available Quantity for Sale [2(d) + 5(c) - 6(d)]
8. Actual Sales
8726
(a) Domestic Sales (manufacturing)
(b) Domestic Sales (trading)
15
(c) Export Sale (manufacturing)
Export
Sale
(trading)
(e)
8741
(f) Total Quantity Sold
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.

CHAPTER - 5
ABRIDGED COST STATEMENT (for product group - Paper)
Tissue Paper
Sr.no.
Particulars

NOTES 1

2
3
4

Units

Quantity

Rate

Amount

In Rupees
Cost Rate per Unit
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
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
811
6500614
733
17 Cost of Production/Operations (13 + 14 to 16)
8865
394929633
44549
39197
18 Increase/Decrease in Stock of Finished Goods
-1400
-124
-9422853
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
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 actuals after adjustment of variances, if any.

CHAPTER - 5
ABRIDGED COST STATEMENT (for product group - Paper)
White Printing Paper
Sr.no.
Particulars
Units
Quantity
Rate
Amount

NOTES 1

2
3
4

In Rupees
Cost Rate per Unit
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
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
1025
6177045
767
17 Cost of Production/Operations (13 + 14 to 16)
8086
337980237
41798
37475
18 Increase/Decrease in Stock of Finished Goods
-1400
-40
-4225392
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
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 actuals after adjustment of variances, if any.

CHAPTER - 6
OPERATING RATIO ANALYSIS (for each product group separately)
Tissue Paper
Sr. Particulars
Units
2011-12
2010-11
no.

2009-10

Ratio of Operating Expenses to Cost of Sales

1 Materials (incl. Process Materials) Cost

67.21

67.79

2 Utilities Cost

22.03

23.11

3 Direct Employees Cost

2.62

2.63

4 Direct Expenses

0.24

0.05

5 Consumable Stores & Spares

1.55

1.66

6 Repairs & Maintenance Cost

0.01

0.38

7 Depreciation / Amortization Cost

0.99

1.43

8 Packing Cost

1.64

1.98

9 Other Expenses

0.06

0.04

10 Stock Adjustments

(1.47)

(4.20)

11 Production Overheads

1.14

1.34

12 Administrative Overheads

1.28

1.05

13 Selling & Distribution Overheads

2.09

2.20

14 Interest & Financing Charges

0.61

0.54

15 Total

100.00

100.00

Note:
There are no significance variance in operating ratio

CHAPTER - 6
OPERATING RATIO ANALYSIS (for each product group separately)
White Printing Paper
Sr. Particulars
Units
2011-12
2010-11
no.

2009-10

Ratio of Operating Expenses to Cost of Sales

1 Materials (incl. Process Materials) Cost

73.08

74.22

2 Utilities Cost

14.34

17.38

3 Direct Employees Cost

1.79

2.01

4 Direct Expenses

0.76

0.90

5 Consumable Stores & Spares

0.67

0.91

6 Repairs & Maintenance Cost

0.37

0.26

7 Depreciation / Amortization Cost

0.96

1.59

8 Packing Cost

1.76

2.75

9 Other Expenses

0.06

0.04

10 Stock Adjustments

1.58

(4.85)

11 Production Overheads

0.87

1.12

12 Administrative Overheads

1.22

1.05

13 Selling & Distribution Overheads

1.93

2.07

14 Interest & Financing Charges

0.60

0.55

15 Total

100.00

100.00

Note:
There are no significance variance in operating ratio

CHAPTER - 7
PROFIT RECONCILIATION (for the company as a whole)
Sr.
no.
1
a)
b)
2
a)
b)
c)
3

2011-12
Particulars
Profit or Loss as per Cost Accounting Records
For the audited product groups
For the un-audited product groups
Add: Incomes not considered in cost accounts:
Profit on sale of Fixed Assets
Dividend Received
Cr.Balance write off

Less: Expenses not considered in cost accounts:

a) Donations
b) Doubtful debts
c) Loss on sale of Fixed Assets

2010-11

135.51
-

Add: Overvaluation of closing stock in financial accounts

Add: Undervaluation of opening stock in financial accounts
Less: Undervaluation of closing stock in financial accounts
Less:: Overvaluation of opening stock in financial accounts
Adjustments for others, if any
(specify)

209.57

2.07
12.57

8.19

150.15

217.76

5.00
10.15

2.00
5.78
1.15
8.93

15.15
4
5
6
7
8
a)
b)
9

Rs. In lakhs
2009-10

11.69
19.11

11.69
16.35

Profit as per cost accounts for other activities

10 Profit or Loss before tax as per Financial Accounts

127.58

180.79

CHAPTER - 8
VALUE ADDITION AND DISTRIBUTION OF EARNINGS
(for the company as a whole)
Sr. Particulars
no.
A
1
2
3
4
5
6
a)
b)
c)
d)
e)
7
8
9
B
1
2
3
4
5

Value Addition:
Gross Sales (excluding returns)
Less : Excise duty etc.
Net sales
Add: Export Incentives
Add/Less: Adjustment in Finished Stocks
Less: Cost of bought out inputs
Cost of Materials Consumed
Process Materials / Chemicals
Consumption of Stores & Spares
Utilities (e.g. power & fuel)
Others, if any
Total Cost of bought out inputs
Value added
Add : Income from any other activities
Earnings available for distribution
Distribution of Earnings to:
Employees as salaries & wages, retirement benefits, etc.
Shareholders as dividend
Company as retained funds
Government as taxes (Tax on Income)
Others, if any (Depreciation and Interest)
Total distribution of earnings

2011-12

2010-11

Rs. In Lakhs
2009-10

8276.38
752.40
7523.98
107.98

7299.10
663.56
6635.55
52.22

4840.12
386.50
85.05
1376.14
523.92
7211.73
420.23
14.64
434.87

4047.11
372.78
87.67
1359.13
500.68
6367.37
320.40
8.19
328.59

166.36
82.00
23.42
44.72
118.36
434.87

155.71
41.00
63.49
4.95
63.44
328.59

CHAPTER - 9
FINANCIAL POSITION AND RATIO ANALYSIS (for the company as a whole)
No
.
A
1
2
3
4

Notes:

Particulars

Units

2011-12

2010-11

Rs. In Lakhs
2009-10

Financial Position
Paid-up Capital
Rs/Lakh
820.00
Reserves & Surplus
Rs/Lakh
10370.29
Loans (secured & unsecured)
Rs/Lakh
4499.57
(a) Gross Fixed Assets
Rs/Lakh
24546.97
(b) Net Fixed Assets
Rs/Lakh
9528.94
Rs/Lakh
13521.72
5 (a) Total Current Assets
(b) Less: Current Liabilities & Provisions
Rs/Lakh
5786.80
(c) Net Current Assets
Rs/Lakh
7734.92
Rs/Lakh
17263.86
6 Capital Employed
Rs/Lakh
11190.29
7 Net Worth
B. Financial Performance
Rs/Lakh
7192.62
1 Cost of Production
Rs/Lakh
7388.47
2 Cost of Sales
Rs/Lakh
7523.98
3 Net Sales
Rs/Lakh
420.23
4 Value Added
Rs/Lakh
127.58
5 Profit before Tax (PBT)
C. Profitability Ratios
%
0.74
1 PBT to Capital Employed (B5/A7)
%
1.14
2 PBT to Net Worth (B5/A8)
%
1.70
3 PBT to Net Sales (B5/B3)
%
30.36
4 PBT to Value Added (B5/B4)
D. Other Financial Ratios
%
40.21
1 Debt-Equity Ratio
%
233.66
2 Current Assets to Current Liabilities
%
5.59
3 Valued Added to Net Sales
E. Working Capital Ratios
Months
119.22
1 Net Working Capital to Cost of Sales excl. dep.
Months
1.89
2 Raw Materials Stock to Consumption
Months
12.12
3 Stores & Spares to Consumption
Months
0.03
4 Work-in-Progress Stock to Cost of Production
Months
0.77
5 Finished Goods Stock to Cost of Sales
(1)Capital Employed means average of net fixed assets (excluding intangible assets, effect of revaluation of fixed
capital w-i-p) plus net current assets existing at the beginning and close of the financial year.

820.00
11352.37
6822.54
24516.06
11082.05
13937.82
3885.96
10051.86
21133.91
12172.37
6365.00
6538.32
6420.56
320.40
180.79
0.86
1.49
2.82
56.43
56.05
358.67
4.99
153.74
1.62
12.77
0.04
0.73
assets, and

(2)Net Worth means share capital plus reserves and surplus (excluding revaluation reserves) less accumulated losses and
intangible assets.

CHAPTER - 10
RELATED PARTY TRANSACTIONS (for the company as a whole)
Name &
Address
Sr. of the
no. Related
Party

Name of the Product / Nature of Quantity Transfer

Service Group
Transactio
Price (Rs.)
n (Sale,
Purchase,
etc.)

1 ABC P. Ltd Pulp

2 PVR & Co. Steam Processing

Purchase
Job Work

3 PVR & Co. Computer, Security, etc. Common

Services
PVR
&
Co.
Wrapping
Sales
4

374 MT
51329 MT

12 MT

25824
198

40200

Amount
(Rs. In
Lakhs)

Normal Price

Basis
adopted to
determine
the Normal
Price

96.58
101.63

25000 At cost
200 Normal cost
of processing
+ Profit

30.68

Activity
Service cost
40000 Comparable
Sales

4.82

NOTES:
(1) Details should be furnished for each sale / purchase separately.
(2) Details of Related Party transactions without indicating the Normal Price and the basis thereof shall
be considered as incomplete information.

CHAPTER - 11
RECONCILIATION OF INDIRECT TAXES (for the company as a whole)
Assessable Excise Duty
Value

Particulars
Total Clearances
Domestic
Export
Stock Transfers (Net)
Others, if any
Total
Duties/Taxes Payable
Duties/Taxes Paid
Cenvat/VAT Credit Utilised - Inputs
Cenvat/VAT Credit Utilised - Capital Goods
Cenvat/VAT Credit Utilised - Input Services
Cenvat/VAT Credit Utilised - Others
Total
Paid through PLA/Cash
Total Duties/Taxes Paid
Duties/Taxes Recovered
Difference between Duties/Taxes Paid and Recovered
Interest/Penalty/Fines Paid

Signature
Name
Mr. X
Cost Auditor (s)
Membership No. (s) 10000
Seal
Date

Signature
Name
CS/Director
Mem./DIN No.
Stamp
Date

7523.98

752.40

10.00
7533.98

0.50

Service Tax Cess & Others

22.57

Rs. In Lakhs
VAT

331.06

0.42

752.90

22.57

331.48

451.74
25.96
12.50
0.50
490.70
216.78
707.48
707.48
-

13.55
0.78
0.38

232.03
12.98
4.30
249.31
82.16
331.48
331.48
-

22.34
22.34

14.71
7.87
22.57
22.57
-

Signature
Name
Director
DIN No.
Stamp
Date

Notes:
(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.
(2)Wherever,duration of the current year or the previous year is not 12 (twelve) months, same shall be clearly indicated in the
report.