COST AUDIT REPORT

I/We, (Name of the Cost Auditor), having been appointed as Cost Auditor(s)
under section 233B of Companies Act 1956 (1 of 1956) of (Name of The Company).,
(hereinafter referred to as the Company), having its registered office at (Registered office).
have examined the books of accounts prescribed under clause (d) of Sub-section (1) of Section
209 of the said Act and other relevant records in respect of the Unit ( Name and Location of the
Unit) for the period/year ended (Financial Year ) relating to (Product under reference)
maintained by the Company and Report, Subject to our comments under the heading "Auditor's
Observations and Conclusions" contained in the Annexure to this Report, that:
1. i) I/We have/ have not obtained all the information and explanations which to the
best of my/our knowledge and belief were necessary for the purposes of this Audit;

ii) Proper Cost Accounting Records required under clause (d) of sub- section (1)
of Section 209 of the Companies Act, 1956 have/ have not been kept by the
company;

iii) Proper returns adequate for the purpose of my/our Cost Audit have/have not
been received from Branches not visited by me/us;

iv) The said books and Records give/do not give the information required by the
Companies Act, 1956 (1 of 1956) in the manner so required,

(v) the cost statements in respect of product or activity under reference as specified
in the Annexures/Proformae of Schedules I, Schedule II or Schedule III of the
concerned Cost Accounting Records (name of product.) Rules duly audited by
me/us are kept in the company.

2. In my/our opinion the Company's Cost Accounting Records have/ have not been
properly kept so as to give a true and fair view of the Cost of Production, cost of sales
and margin of the product under reference, as prescribed under rules.

3. Based on my/our examination of the records of the company subject to aforesaid

qualifications, if any, I/We give my/our observations and suggestions on the following -

(a) the adequacy or otherwise of the cost

accounting system including inventory valuation in
vogue in the company and suggestions for the
improvement thereof. The Cost auditor shall also
indicate the persistent deficiencies in the
system, pointed out in earlier reports but not
rectified;

(b) the adequacy or otherwise of the

budgetary control system, if any, in vogue in the
company;

(c) matters which appear to him to be clearly

wrong in principle or apparently unjustifiable;

(d) cases, where price charged for related

party transactions as defined in the respective Cost

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 Accounting Records Rules is different from normal
price, impact of such lower/higher price on margin of
the product under reference shall be specified;

(e) areas where the company is incurring

losses or where there is considerable decline in
profitability, the cost auditor should comment on the
reasons thereof including indicative break-even
point. The cost auditor shall also comment on the
default, if any on the payments due to the
Government, financial institutions and banks, penal
interest levied thereon and its impact on the cost of
sales and profitability;

(f) steps required to strengthen the

company under the competitive environment
especially with regard to need for protection from
cheaper imports, if any;

(g) export commitments of the company

vis-à-vis actual exports for the year under review.
Also comment on comparative profitability and
pricing policy of the company for domestic and
export sales. Give impact of exports benefits/
incentives offered by the Government on export
profitability;

(h) the scope and performance of internal

audit of cost records, if any, and comment on its
adequacy or otherwise.

4. Suggestion for making further improvements in

the performance in respect of cost control and cost
reduction.

5. other observations and suggestions, if any,

relevant to the cost audit.

DATED THIS --------- OF 200---

at

FOR XYZ & CO.,

COST ACCOUNTANTS

(XYZ)
(MEMBERSHIP No: ----
PARTNER

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 ANNEXURE TO THE COST AUDIT REPORT

1. GENERAL:

(1) (a) Name and address of the registered

office of the company whose accounts are
audited.
(b) Name and address of the place where
the cost accounting records are
maintained viz. registered office, head
office or factory.
(2) Name of the product and location of the
unit to which the Annexure pertains.
(3) The Company's financial year to which
the Cost Audit Report relates.
(4) Date of first commencement of
commercial production of the product
under reference.
(5) Location of other sites manufacturing or
producing or processing or mining the
product or carrying out the activity under
reference.
(6) Name and address of the Cost Auditor.
(7) Membership number of the Cost
Accountant. In case of firm of Cost
Accountants, name and membership
number of all the partners.
(8) Reference number and date of
Government Order under which the Audit
is conducted.
(9) Reference number and date of the
Government letter approving the
appointment of the Cost Auditor.
(10) Date of Board of Directors' meeting
wherein the Annexure and Proforma to
the cost audit report were approved.
(11) The number of Audit Committee meetings
held by the company, and attended by the
Cost Auditor during the year under
reference.
(12) Name, qualification and designation of the
officer heading the cost accounting
section or department of the company.
(13) In case of loan license/ job work
arrangement by the company, mention
the name of the third party and location of
the factory, where the product has been
produced/manufactured.
(14) If there is any foreign technical
collaboration for the product under
reference, the following details shall be
given:

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 (a) name and address of the foreign
collaborators;
(b) main terms of agreement ;
(c) amount of royalty, lump sum payment,
technical aid fee payable and the basis of
calculating the same;
(d) whether the technical collaborator has
contributed to the share capital. If so, the
paid up share capital so held.
(15) If the company is engaged in other
activities besides the manufacture of the
product under reference, the following
details in respect of each such product or
activity shall be given:
(a) list of the products or activities;
(b) list of the products or activities for
which Cost Accounting Records Rules
have been prescribed under section
209(1)(d) of the Act.;
(c) whether Cost Audit Order has been
issued by the government in respect of
any of the products or activities. If so,
number and date of the order.
(16) A printed copy of the Annual Report,
containing audited Profit and Loss
Account, Balance Sheet and Auditor’s
Report in respect of the company's
financial year for which the report is
rendered, shall be enclosed with the Cost
Audit Report.

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 2. COST ACCOUNTING SYSTEM:

(1). Briefly describe the cost accounting system existing in the company, keeping in view the
requirements of the Cost Accounting Records Rules applicable to the class of companies
manufacturing the product under reference and also its adequacy or otherwise to determine
correctly the cost of production, cost of sales, sales realisation and margin of the product under
reference.

(2). Briefly specify the changes, if any, made in the costing system; basis of inventory valuation;
method of overhead allocation; apportionment to cost centers/departments and final absorption to
the product under reference etc., during the current financial year as compared to the previous
financial year.

3. PROCESS OF MANUFACTURE:

A brief note regarding the process of manufacture along with flow chart covering production, utility
and service department of the product.

4. QUANTITATIVE DETAILS :
PARTICULARS
1. Installed Capacity (Multiple Shift)

2. Capacity enhanced during the year by

leasing arrangement etc.,
3. Total available capacity

4. Production during the year

(a) Self Manufactured
(b) Third Party on Job work etc.,
(c) Loan and License basis
5. Total Production Quantity
6. Production as per Excise Records
7. Capacity Utilisation Percentage
8. Opening Stock ( finished quantity)
9. Total available Quantity
10. Quantity captively consumed
11. Quantity sold:
(a) domestic at controlled price
(b) domestic at market price
© export under advance license
(d) export under obligation
(e) export at market price
(f) TOTAL
12. Closing Stock (Finished Quantity)

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 Notes :

1. It should be clarified whether the installed capacity is on single shift or multiple shift basis.
2. In order to have a meaningful comparisons of production and installed capacity, wherever
necessary these details should also be expressed in appropriate units, e.g. standard hours or
equipment/ plant/ vessel occupancy hours, crushing hours, spindle/ loom shifts, equivalent
production, production in terms of standard hours etc.

5(A). MAJOR INPUT MATERIALS / COMPONENTS CONSUMED:

PARTICULARS
1. Indigenous
(a)
(i) Quantity
(ii) Rate per Unit
(iii) Value
2. Self Manufactured
3. Imported
4. Total
(i) Quantity
(ii) Rate per Unit
(iii) Value

Note : Details should be furnished in respect of major input materials each constituting at least
2% of the total raw material cost.

5(B). STANDARD/ ACTUAL CONSUMPTION OF INPUT MATERIALS PER UNIT:

PARTICULARS ACTUALS
UNIT STANDARD
1. Kgs
2.
3.

Note : Details should be furnished in respect of major input materials each constituting at least
2% of the total raw material cost for each major type/ variety/ size etc. of product under reference.

6. BREAK-UP OF COST OF INPUT MATERIALS IMPORTED DURING THE YEAR :

PARTICULARS
1. FOB Price in foreign currency/ rupees
2. Insurance & freight
3. Customs duty
4. Clearing charges
5. Inland freight
6. Other expenses
7. Total

Note : Details should be furnished in respect of major input materials each constituting at least
2% of the total material cost.

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 7 (A). POWER, FUEL AND UTILITIES :

PARTICULARS
1. Electricity (purchased) :
(i) Quantity
(ii) Rate per Unit
(iii) Value
2. Self generated/ produced:
(i) Quantity
(ii) Rate per Unit
(iii) Value
3. Imported
(i) Quantity
(ii) Rate per Unit
(iii) Value
4. Total
(i) Quantity
(ii) Rate per Unit
(iii) Value

Note : Details should be furnished in respect of major items each constituting at least 2% of the
total material cost.

7 (B). STANDARD/ ACTUAL CONSUMPTION OF POWER, FUEL AND UTILITIES IN TERMS

OF
QUANTITY PER UNIT OF PRODUCTION :

PARTICULARS ACTUALS
UNIT STANDARD
1.
2.
3.

Note : Details should be furnished in respect of each major type/ variety/ size etc. of product
under reference.

8. SALARIES AND WAGES:

PARTICULARS
A: QUANTITATIVE DETAILS:
1. Direct Workers:
a. Average No. during the year
b. Mandays available
c. Mandays actually worked for
(i) Own Production
(ii) Job Work
d. Reason-wise analysis of idle mandays
(i) Absenteeism
(ii) Shortage of raw materials
(iii) Power Shortage/ failures
(ii) Others (specify)
2. Indirect Workers
a. Average No. during the year

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 b. Mandays available
c. Mandays actually worked for
(i) Own Production
(ii) Job Work
d. Reason-wise analysis of idle mandays
(i) Absenteeism
(ii) Shortage of raw materials
(iii) Power Shortage/ failures
(ii) Others (specify)
B. COST DETAILS:
1. Direct labour cost on production
2. Indirect employee costs on production
3. Employee costs on administration
4. Employee costs on selling and
administration
5. Other Employee costs
6. Total Employee costs
7.a. Payments under any VRS Scheme
7.b. Amount provided during the year

9. REPAIRS AND MAINTENANCE:

PARTICULARS
1. Land and Building
2. Plant and Machinery
3. Staff quarters and colony
4. Others ( to be specified asset category wise)
5. Total amount
6. Amount capitalized/ deferred during the year
7. Net Amount (5-6)
8. Deferred amounts of earlier years, if any
9. Total amount provided in the cost records
(7+8)

10. FIXED ASSETS REGISTER AND DEPRECIATION:

PARTICULARS
1.Whether fixed assets register maintained
cost centre-wise
2. Method of providing depreciation
3.Amount of depreciation under section 205(2)
of the Companies Act, 1956 or any other
relevant Act, as the case may be
4. Amount of depreciation provided in the
financial records
5. Amount of depreciation absorbed in the cost
records *
6. Shortfall / Excess, if any (3 and 5)

Note : The impact of re-valuation of assets, if any, shall not be included.

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 11. GROSS BLOCK, DEPRECIATION AND LEASE RENT:

PARTICULARS Gross Depreci Lease Total 1st PREV. 2 nd

PREV.
Block ation Rent (b+c) YEAR YEAR
Name of Major Cost
Centres/Products
(a)
(b)
Total

Note : Excluding gross block of assets given on lease, if any.

12. OVERHEADS:

PARTICULARS
1. Factory Overheads
2. Admin. Overheads
3. Selling Overheads
4. Distribution Overheads

Note :The break-up under each head should be furnished in respect of major items
constituting at-least 80% of the overhead cost under each head.

13. RESEARCH AND DEVELOPMENT EXPENSES:

PARTICULARS
1. Process development and improvement
2. Existing product development
3. New Product Development
4. Others, if any
5. Total Amount
6. Amount Capitalized/deferred during the year
7. Net Amount (5-6)
8. Deferred amount of earlier years, if any
9. Total amount provided in the cost records
(7+8)
10. Amount paid to related parties

14. ROYALTY AND TECHNICAL KNOW HOW CHARGES:

PARTICULARS
1. Royalty on production/ sales
2. Lump sum payment of royalty, if any
3. Technical know how charges
4. Others, if any
5. Total amount
6. Amount capitalized/ deferred during the year
7. Net Amount (5-6)
8. Deferred amount of earlier years, if any

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 9. Amount provided in the financial accounts
(7+8)
10. Amount absorbed in the cost records
11. Shortfall/ excess, if any
12. Amount paid to related parties

Note : The details should be furnished in respect of each agreement separately.

15. QUALITY CONTROL EXPENSES:

PARTICULARS
1. ISO Number, if any
2. Name of certifying agency
3. Salaries and wages
4. Others direct expenses
5. Others, if any (specify)
6. Total amount

16. POLLUTION CONTROL EXPENSES:

PARTICULARS
1. Effluent Treatment
2. Control of air pollution
3. Control ash pound/ ash mound
4. Penalty, if any
5. Others, if any
6. Total Amount

17. ABNORMAL NON-RECURRING COSTS:

PARTICULARS
1. Specify
2.
3.
Total

18.(A) NON-MOVING STOCK (at the end of the year) :

PARTICULARS
a1. Total direct material consumption
a2. Closing stock of direct material
a3. Value of non moving stock
a4. Percentage a3 to a2
b1. Total indirect material consumption
b2. Closing stock of indirect material
b3. Value of non moving stock
b4. Percentage b3 to b2
C1. Work-in-progress
C2. Closing stock of WIP
C3. Value of non moving stock

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 c4. Percentage c3 to c2
D1. Finished Goods
D2. Closing stock of finished goods
D3. Value of non moving stock
D4. Percentage d3 to d2
E1. Total
E2. Total Closing stock
E3. Total Value of non moving stock
E4. Percentage e3 to e2

18.(B) WRITTEN OFF STOCK (during the year) :

PARTICULARS
1. Direct Materials
2. Indirect Materials
3. WIP
4. Finished Goods
5. Total

19.(A) INVENTORY VALUATION (at the end of the year) :

PARTICULARS Basis Of
1. Input Material Valuation
(i) Purchased
- Indigenous
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
- Imported
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
(ii) Self Manufactured
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
2. Chemicals, additives and
consumbles
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
3. Stores and spares
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
4. Packing Materials
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
5. Tools and implements, Jigs,
dies and fixtures
(i) Quantity
(ii) Rate per Unit

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 (iii) Amount Rs. In Lacs
6. Work-in-progress
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
(a) Material Cost
(b) Conversion cost
7. Finished Goods
(i) Unpacked
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
(ii) Packed
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
8. Scrap/ wastage
(i) Quantity
(ii) Rate per Unit
(iii) Amount Rs. In Lacs
9. Others, if any

10. Total value of inventory as per

cost accounts
11. Total value of as per financial
accounts
12. Reasons for major
differences, if any

Notes :

(1) In respect of item at Sr. No. 1 and 6 details be furnished in respect of each major input
material constituting at least 2% of the total material cost.
(2) In respect of items at Sr. No. 2 to 5, total amount be given without any quantitative details.
(3) Give in brief the method of inventory valuation system indicating the elements of cost
included therein and the extent thereof.
(4) Capital work-in-progress to be shown separately.

19.(B) PHYSICAL VERIFICATION OF INVENTORY :

Sl. PARTICULARS PERIODICITY SHORTAGE EXCESS NET (Rs)

No OF VALUE (Rs) VALUE (Rs)
VERIFICATION
1. Raw Material
2. Chemicals, additives,
consumables etc.,
3. Stores and Spares
4. Packing Materials
5. Tools and Implements
6. WIP
7. Finished Goods
8. Scrap/ Wastage
9. Total

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 20. SALES OF THE PRODUCT UNDER REFERENCE:

PARTICULARS
1. Purchased Goods
(i) Quantity
(ii) Rate per Unit
(iii) Amount
2. Loan License basis
(i) Quantity
(ii) Rate per Unit
(iii) Amount
3. Own Manufactured
(i) Quantity
(ii) Rate per Unit
(iii) Amount
4. Total Sales
(i) Quantity
(ii) Rate per Unit
(iii) Amount

Notes :

(1) Above details shall be furnished for major product groups/ varieties.
(2) Separate details shall be furnished for indigenous sales and export sales.

21. MARGIN PER UNIT OF OUTPUT:

PARTICULARS
1. Purchased Goods
a) Cost Of Sales
b) Sales Realisation
c) Margin
2. Loan License basis
a) Cost Of Sales
b) Sales Realisation
c) Margin
3. Own Manufactured
a) Cost Of Sales
b) Sales Realisation
c) Margin
4. Total Sales
a) Cost Of Sales
b) Sales Realisation
c) Margin

Notes :

(1) Above details shall be furnished for major product groups/ varieties.
(2) Separate details shall be furnished for margin on indigenous sales and export sales. Where
the product (such as sugar, bulk drugs, formulations, etc.) is sold at different prices in accordance
with government policy, sales realisation and margin on such product at different prices shall be
shown separately alongwith quantity and value.

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 22. COMPETITIVE MARGIN AGAINST IMPORTS:
PARTICULARS
1. Name of product
2. Estimated demand of the product in the
country *
3. Total production in the country *
4. Quantities imported in the country **
5. Total production by the company
6. %age share of the company in total inland
production (item 5/ item 3)
7. a. Cost of production per Unit (Inland sale)
b. Cost of Sale per Unit (Inland sale)
c. Cost of production per Unit (Export sale)
8. Quantity of the product imported by the
company **
9.FOB value of quantity imported by the
company **
10. Weighted average FOB rate for quantities
imported by the company (item 9/ item8) **
11. FOB value of quantity imported in the
country **
12. Weighted average FOB rate of quantities
imported in the country (item 11/ item4) **
13. Competitive margin (item 12 less item 7(A))
**
14. Major exporting countries (other than those
listed in item 4 above)
15.(A) Total import duty paid by the company•
(net of CENVAT)
(B) Weighted average rate of import duty paid
by the company (net of CENVAT) (item 15(A)/
item 8)
16. Bound rate of duty under WTO agreement.

Notes :
(1) * Indicate the source of information.
(2) ** Country-wise details should be furnished in respect of major countries covering at-least
80% of the total and balance should be shown under the head “Others”.

23. VALUE ADDITION AND DISTRIBUTION OF EARNINGS :

PARTICULARS
A. VALUE ADDITION
1. Gross Sales (Excluding Returns)
2. Less: Excise duty, etc.,
3. Net Sales
4. Adjustments in stocks
5. Less: cost of bought out materials and
services
6. Value added
7. Add: Income from any other sources
8. Earnings for distribution
B. DISTRIBUTION OF EARNINGS TO:
1. Employees as salaries and wages,

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 retirement benefits, etc.,
2. Shareholders as dividend
3. Retained funds as depreciation etc.,
4. Government as taxes (specify)
5. Others, if any (specify)
6. Total

24. FINANCIAL POSITION AND RATIO ANALYSIS :

PARTICULARS
Product Factory Compan Produc Factory Compa Produc Factor Compa
Under as a y as a t Under as a ny as a t Under y as a ny as a
Ref whole whole Ref whole whole Ref whole whole
1. Capital employed
2. Net Worth
3. Profit
4. Net Sales
5.Operating expenses as a
percentage of Net Sales:
(a) Material cost
(b) Factory overheads
(c)Royalty on Production, if
any
(d) Salaries & wages
e) Research and
development expenses
(f) Quality control
(g) Administrative overheads
(h) Selling & distribution
(i) Interest
6.Profit as %age of capital
employed
7. Profit as %age of net
worth
8. Profit as %age of net
sales
9. Profit as %age of value
addition
10. Value addition as a
%age of Net Sales
11. Current assets to current
liabilities
12. Net working capital in
terms of number of months
of cost of sales excl.
depreciation.
13. Debt-equity ratio
14. Raw materials stock in
terms of number of months
of consumption
15. Stores & spares stock in
terms of number of months
of consumption

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 16. Work-in-progress stock
in terms of number of
months of cost of production
17. Finished goods stock in
terms of number of months
of cost of sales.

Notes :
(1) Figures given for the company as a whole against serial number 1, 2, 3 and 4 shall be, duly
reconciled with the financial accounts of the company

(2) The figures given for the product against serial number 1, 2, 4 and 5 shall be, duly reconciled
with the cost accounts of the company.

(3) Figures given for the factory as a whole against serial number 1, 3, and 4 shall be, duly
reconciled with the financial accounts of the company.

25. CAPITALISATION OF REVENUE EXPENDITURE:

PARTICULARS
1. Raw Materials
(a) Purchased
- Indigenous
- Imported
2. Direct wages and salaries
3. Consumable Stores
4. Repairs and Maintenance
5. Depreciation
6. Factory Overheads
7. Administration Overheads
8. Other Expenses (specify)
9. Total
10. Capitalisation ( Excisable Value)
11. Capitalisation (Non Excisable Value)

26. RELATED PARTY TRANSACTIONS:

Briefly describe the transfer pricing policy, followed by the company in respect of “related party
relationship” as defined in the relevant cost accounting records rules made under clause (d) of
sub-section (1) of section 209 of the Act. The following particulars may be furnished with regard
to related party transactions :

Particulars of related party Product/ Quantity Rate Amount Normal Price

Activity
1.
2.
3.
4.

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 Note :
(1) Details should be furnished for sale and purchase transactions separately.

27. CENTRAL EXCISE RECONCILIATION FOR THE PRODUCT UNDER REFERENCE :

PARTICULARS CHAPTER- CHAPTER- CHAPTER-

HEADING HEADING HEADING
A. QUANTITATIVE DETAILS: UNIT UNIT UNIT
1. Opening Stock
2. Add : Production
3.Less : Closing Stock
4.Total Sales / Clearances

PARTICULARS ASSESABLE RATE OF DUTY AMOUNT OF

VALUE (Rs) DUTY (Rs)
B. DETAILS OF CLEARANCES:
1.Total Clearances (Chapter heading-wise)
2. Less : Duty Free Clearances (factory)
3. Excisable Clearances (factory)
4. Penalty / Fine / Interest payable if any
5Total Duty Payable ( total 3 & 4 )

PARTICULARS Inputs Capital Goods Total

C. SUMMARY OF CENVAT CREDIT
1. Opening Balance
2. Add : Availed During the year
3.Add Refunds received during year
4.Less : Closing Balance as per Excise
Records
5.Total Cenvat credit utilised during the year
(1+2+3-4)
6.Closing Balance as per Annual Accounts
7.Difference between 4 - 6
8. (State amount and reasons for difference)

PARTICULARS AMOUNT Rs
D. RECONCILLIATION OF DUTY PAID
1. Excise Duty Payable as per ‘B’
2.Total Excise Duty paid through
a). Cenvat Account -( Inputs )
b). Cenvat Account -( Capital Goods )
c). P.L.A.
Total ( a+b+c )
3. Difference between (1-2)
4. (State amount and reasons for difference)
5.Excise Duty as per RT – 12
6. Difference between (2-5)
7. (State amount and reasons for difference)
E. RECONCILIATION OF DUTY PAID AND
RECOVERED :
1. Excise Duty paid as per P & L A/c
2. Excise Duty Recovered as per P & L A/c

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 3. Difference between duty paid and recovered
4. (State amount and reasons for difference)
F.RECONCILIATION OF TURNOVER
1.Turnover as per RT 12
2.Turnover as per Annual Accounts (Net off
Duties & Taxes)
3.Difference between ( 1- 2 )
4.(State amount and reasons for difference)

28. PROFIT RECONCILIATION:

PARTICULARS
1. Profit or Loss as per cost accounting records
2. Add: Incomes not considered in cost
accounts:
(a) (specify)
(b)
©
3. Less: Expenses not considered in cost
accounts:
(a) (specify)
(b)
©
4. Add: Overvaluation of closing stock in
financial accounts
5.Add: Under-valuation of opening stock in
financial accounts
6. Less: Under-valuation of closing stock in
financial accounts
7. Less: overvaluation of opening stock in
financial accounts
8. Adjustment for others, if any (specify)
9. Profit or Loss as per financial accounts

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 WORKINGS FOR COST AUDIT REPORT

CAPITAL EMPLOYED:
Net Fixed Assets
Less: Intangible assets
Less: Revaluation Reserves
Less: Capital Work-in-progress
Add:Current Assets,Loans & Advances
Less: Current Liabilites and provisions

TOTAL

Average Capital Employed

(Curr.Yr+Prev.Yr)/2

NET WORTH:
Share Capital
Add:Reserves & Surplus
Less: Revaluation Reserves
Less: Intangible assets
Less: Profit & Loss A/c(Debit Balance)
Less:Miscellaneous Expend.
TOTAL

PROFIT BEFORE TAX:

Net Profit before Tax
Less: Interest,Dividend and income on
investments outside business
Less: Depreciation not provided
Less: Capital gains
Less: Other Income
Add: Non recurring/ abnormal expenses
Add:Interest on borrowings
TOTAL

Net sales ( excluding sales returns)

Less: excise duty paid
Less: Sales Tax etc., paid
Less: Octoroi and local Taxes., paid
Less: waste, scrap (reduced from
material)
Net Sales

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 VALUE ADDITION:
Net Sales
Add: Closing Stock of Fg
Less: Opening Stock of Fg
Sale Value of Production

Sale Value of Output

BOUGHT OUT :eg
(-) Material Consumed
Packing Materials
Consumable Stores
Govt.Power
Diesel Consumed
Repairs
Brk & Comm on sales
Frt & Handlg
Advt
Insurance
Vehicle Maint
Postage & Telegrams
Printing & Stationery
Travelling Exps

TOTAL

VALUE ADDITION
Equal to Payroll + Interest+depreciation

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