Cost Accounting Records (Caustic Soda) Rules, 1967
1G.S.R. 1261, dated the 11th August, 1967.--In exercise of the powers conferred by sub-section (1) of Sec. 642, read with Cl. (d) of sub-section (1) of Sec. 209 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, namely:--
1. Short title and commencement.--
(1) These rules may be called the Cost Accounting Records (Caustic Sod
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Rules,1967.
(2) They shall come into force on the 1st day of October,1967.
2[2. Application. --
They shall apply to every company engaged in the production or manufacture of caustic soda in any form excepting those companies falling under the category of small scale industrial undertakings.Explanation. --
For the purpose of this rule, the expression, 'Small scale industrial undertaking' shall have the same meaning as given in the notification issued from time to time under the Industries (Development and Regulation) Act, 1951.]3. Maintenance of Records.--
(1) Every company to which these rules apply shall, in respect of each of its accounting years commencing on or after the 1st day of October,1967 5[but before the 31st day of March, 1999] keep at its registered office or at any other place in India as the Board of Directors of the company may decide in this behalf, proper books of account containing inter alia the particulars specified in Schs. I and II annexed to these rules relating to utilisation of material, labour and other items of cost so far as they are applicable thereto.
(2) Such books of account shall be kept so as to make possible the calculation of the cost of production of Caustic Soda produced during the financial year of the company (hereinafter in these rules referred to as the relevant period) 3[from the particulars entered therein].
5[(3) Every company to which these rules apply shall, in respect of each of its financial year commencing on or after the 1st day of April, 1999, keep proper books of account containing, inter alia, the particulars specified in Schedule III and Pro forma 'A' and Pro forma 'B' mentioned in the said Schedule annexed to these rules relating to the utilisation of materials, labour and other items of cost in so far as they are applicable to caustic soda in any form:
Provided that if the said company is manufacturing any other product(s) or is engaged in other activities in addition to manufacture of caustic soda in any form, the particulars relating to utilisation of materials, labour and other items of cost in so far as they are applicable to such other products or activities shall not be included in the cost of caustic soda in any form.
(4) The books of account referred to in sub-rule (3) shall be kept on a regxilar basis in such a manner as to make it possible to calculate the cost of production and cost of sales of all forms of caustic soda for every financial year from the particulars entered therein and every such books of account and the pro forma specified in Schedule III annexed to these rules shall be completed not later than ninety days from the closing of the financial year of the company to which they relate.
(5) Statistical and other records shall be maintained in accordance with the provisions of the Schedule III annexed to these rules, which shall be such 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 cost and provide the necessary data required by the cost auditor to suitably report, on all the points referred to in the Cost Audit (Report) Rules, 1996.
(6) It shall be the duty of every person, referred to in sub-section (6) and sub-section (7) of section 209 of the Companies Act, 1956 (1 of 1956), to take all reasonable steps to secure compliance by the company with the provisions of sub-rules (1), (2), (3), (4) and (5) of this rule in the same manner as he is liable to maintain accounts required under sub-section (1) of section 209 of the said Act.]
4. Penalty.--
If a company contravenes the provisions of rule 3, the company and every officer of the company who is in default other than the persons referred to in subsection (6) of Sec. 209 of the Companies Act, 1956 (1 of 1956) 4[shall, subject to the provisions of Sec. 209 of the Companies Act, 1956 (1 of 1956) be punishable] with fine which may extend to five hundred rupees and where the contravention is a continuing one, with a further fine which may extend to fifty rupees for every day after the first during which such contravention continues.
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Adequate records shall be maintained showing receipts, issues and balances, both in quantities and values, of each item of raw material required for the production of Caustic Soda in any form. The basis on which the value of purchases and issues have been calculated shall be clearly indicated in the cost records or, if so desired by the company in a separate manual of procedure, if any, maintained by the company or in foot-notes or separate explanatory notes to the cost statements for the relevant period. Such basis shall be applied consistently throughout the relevant period. The values shall include all direct charges up to works, such as, freight and insurance. Any wastage whether in storage, transit or for other reasons shall be shown separately and the method of dealing with such issues in the calculation of costs indicated in the cost Accords by way of foot-notes or explanatory notes or in other suitable manner.
(b) If the value of raw materials consumed is determined on any basis other than actuals, the method adopted for such valuation as well as the method of reconciling such consumption with actuals and the method of dealing with variations, if any, shall be disclosed in the cost records or indicated by way of foot-notes, explanatory notes or in other suitable manner.
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Proper and systematic records shall be maintained with respect to the attendance of workers and other operational staff, indicating the department in which and the work on which they were employed. Where payments to workers are made on piece-rate basis, the records relating thereto shall be so maintained as to enable assessment of wages payable to such workers. Proper records shall also be maintained in respect of all payments made for overtime work. Where any payments for incentive are made, whether in the shape of production bonus or other forms of incentives based output achieved by workers individually or collectively, such payments shall be included as part of wages.
(b) The records shall further show separately the cost of all wages and salaries relating to various manufacturing departments or units or cost centres in the factory being the amounts payable and allocated to the different departments or units or cost centres and to the products manufactured therein. Any wages and salaries being expenditure on additions to plant, machinery or other assets shall be allocated to the relevant capital heads in the accounts. Any idle-time arising and the reasons for such idle-time shall be recorded separately. The method of its treatment in calculating the costs of products shall also be indicated in the records in foot-notes, explanatory notes or in other suitable manner.
(c) If the wages are allocated to the departments or units or to cost centres or to the products manufactured in such departments or units or cost centres on any basis other than actuals, the method of reconciling such wages with actuals and the method of dealing with variations, if any, shall be disclosed in the cost records or indicated by way of footnotes, explanatory notes, or in other suitable manner.
Detailed and adequate records shall be maintained to show the receipts, issues and balances, both in quantities and values of various items of chemicals, stores and spare parts required for the production of Caustic Soda. The value shown shall include all direct charges up to works, such as, freight and insurance. The values of the issues, and balances of stores may, if the company so desires, be recorded monthly or at shorter intervals as the company decides or kept in the form of control accounts for main groups of stores provided in the latter case the value of the balance according to such control accounts are reconciled periodically at least once a year with the values of the quantities shown by the quantity accounts for each item of store.
The value of stores and spare parts consumed shall be charged to the relevant heads of expenditure, such as, manufacture, repairs to plant and machinery, repairs to buildings, township and maintenance of vehicles. The value of stores charged to manufacture shall further be allocated to the different departments or manufacturing units or cost centres and to products manufactured therein,if any. Similarly stores issued for capital works, such as, addition to plant, machinery or other assets, shall also be separated and shown under relevant capital heads. Stores shall be valued on a reasonable basis and consistently applied during the relevant period. The records shall also indicate the method of valuation adopted. Any wastage whether in storage, transit, or for other reasons shall be shown separately. The method of dealing with such losses in the calculation of costs shall also be indicated in the cost records, or in foot-notes, explanatory notes or in other suitable manner.
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Detailed records shall be maintained to ascertain the cost of services, such as, power, fuel, water, electricity, air and steam produced and utilised in manufacturing operations.
(b) Where power is purchased, the cost of power shall include the cost of units of power consumed and fixed charges payable and duties, if any, payable by the consumer. Where power, water or steam is produced by the company itself, separate records shall be maintained to show, in sufficient detail, the different items making up the cost of such power, water or steam produced and consumed.
(c) The records shall be so maintained...
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