[TOBEPUBLISHEDINTHEGAZETTEOFINDIA,EXTRAORDINARY,PARTII,

SECTION3,SUBSECTION(i)]
MINISTRYOFCORPORATEAFFAIRS
Notification
NewDelhidatedthe7th,Dec,2011

G.S.R. 874 (E). In exercise of the powers conferred by subsection (1) of section 642,
readwithclause(d) ofsubsection(1)ofsection209 oftheCompaniesAct,1956 (1of
1956),andinsupersessionoftheCostAccountingRecords(BulkDrugs)Rules,1974vide
G.S.R. 130(E), dated the 14th March, 1974 and Cost Accounting Records (Formulations)
Rules,1988videG.S.R.452,datedthe22ndApril,1988,exceptasrespectsthingsdoneor
omittedtobedonebeforesuchsupersession,theCentralGovernmentherebymakesthe
followingrules,namely:
1.ShortTitleandCommencement,(1)TheserulesmaybecalledtheCostAccounting
Records(PharmaceuticalIndustry)Rules,2011.
(2)TheyshallcomeintoforceonthedateoftheirpublicationintheOfficialGazette.
2. DefinitionsandInterpretations,Intheserules,unlessotherwiserequires,
(a) ActmeanstheCompaniesAct,1956(1of1956);
(b) bulkdrugs"meansanypharmaceutical,chemical,biologicalorplantproduct
including its salts, esters, stereoisomers and derivatives, which are used as
such or as an ingredient in any formulation and shall include any bulk drug
includedinanybonafideAllopathic,Ayurvedic,Homeopathic,SidhaorUnani
(Tibb)systemsofmedicine;
(c) compliance report means the compliance report duly authenticated and
signedbyacostaccountantinthespecifiedformofcompliancereport;
(d) CostAccountantforthepurposeoftheserulesmeansacostaccountantas
defined in clause (b) of subsection (1) of section 2 of the Cost and Works
AccountantsAct,1959(23of1959)andwhoiseitherapermanentemployee
ofthecompanyorholdsavalidcertificateofpracticeundersubsection(1)of
section6andwhoisdeemedtobeinpracticeundersubsection(2)ofsection
2ofthatActandincludesafirmofcostaccountants;
(e) Cost Accounting Standards means the standards of cost accounting, issued
bytheInstitute;
(f) cost records means books of account relating to utilisation of materials,
labour and other items of cost as applicable to the production, processing,
manufacturingorminingactivitiesofthecompany;

(g) FormAmeanstheformspecifiedintheserulesforfilingcompliancereport
andotherdocumentswiththeCentralGovernmentintheelectronicmode;
(h) FormBmeanstheformofthecompliancereportandincludesAnnexureto
thecompliancereport;
(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
medicineincludedinanybonafideAllopathic,Ayurvedic,Homeopathic,Sidha
orUnani(Tibb)systemsofmedicine;
(j) GenerallyAcceptedCostAccounting Principlesmeanstheprinciplesofcost
accountingissuedbytheInstitute;
(k) Institute means the Institute of Cost and Works Accountants of India
constitutedundertheCostandWorksAccountantsAct,1959(23of1959);
(l) pharmaceuticalactivitiesmeansproduction,processing,ormanufacturingof
bulkdrugsorformulationsandincludesthemeaningassignedtothemunder
the Drugs (Prices Control) Order 1995 as amended from time to time, or
includedunderChapters29and30oftheCentralExciseTariffAct,1985(5of
1986), and further includes the intermediate products and articles or allied
productsthereof;
(m) productmeansanytangibleorintangiblegood,material,substance,article,
idea,knowhow,method,information,object,service,etc.thatistheresultof
human, mechanical, industrial, chemical, or natural act, process, procedure,
function, operation, technique, or treatment and is intended for use,
consumption,sale,transport,store,deliveryordisposal;
(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
characteristicsandcommonunitofmeasurement,andhavingsameorsimilar
usageorapplication;andinrelationtointangibleproductsmeansagroupof
homogenousandalikeproductsorservices,producedbyusingsimilarorsame
process or inputs, having similar characteristics and common unit of
measurement,andhavingsameorsimilarusageorapplication;
(o) turnovermeanstotalturnovermadebythecompanyfromthesaleorsupply
ofallproductsorservicesduringthefinancialyearanditincludesanyturnover
from job work or loan license operations and the subsidies or grants or
incentivesreceivedbutdoesnotincludeanynonoperationalincome;
(p) all other words and expressions used in these rules but not defined, and
definedintheActandrulesmadeunderclause(d)ofsubsection(1)ofsection

209oftheActshallhavethesamemeaningsasassignedtothemintheActor
rules,asthecasemaybe.
3. Application,Theserulesshallapplytoeverycompany,includingaforeigncompany
as defined under section 591 of the Act, which is engaged in the production,
processing,ormanufacturingofpharmaceuticalactivitiesandwherein,theaggregate
value of net worth as on the last date of the immediately preceding financial year
exceedsfivecroresofrupees;orwhereintheaggregatevalueoftheturnovermade
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
thecompanysequityordebtsecuritiesarelistedorareintheprocessoflistingon
anystockexchange,whetherinIndiaoroutsideIndia:
Providedthattheserulesshallnotapplytoabodycorporategovernedbyany
specialAct.
4. Maintenanceofrecords,(1)Everycompanytowhichtheserulesapply,includingall
unitsandbranchesthereofshall,inrespectofeachofitsfinancialyearcommencing
onorafterthedateofthisnotification,keepcostrecordsandthebooksofaccount
so maintained shall contain, interalia, the particulars specified in Proformae A to I
mentionedintheScheduleannexedtotheserules.
(2) The cost records referred to in subrule (1)shall be kept on regular basis in
suchmannersoastomakeitpossibletocalculateperunitcostofproduction
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 halfyearly or
annualbasis.
(3) The cost records shall be maintained in accordance with the generally
acceptedcostaccountingprinciplesandcost accountingstandards issuedby
theInstitute;totheextentthesearefoundtoberelevantandapplicableand
thevariations,ifany,shallbeclearlyindicatedandexplained.
(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
requiredtobefurnishedundertheserules.
(5) Allsuchcostrecordsandcoststatements,maintainedundertheserulesshall
be reconciled with the audited financial statements for the financial year
specificallyindicatingexpensesorincomesnotconsideredinthecostrecords
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,shallbeclearlyindicatedandexplained.

(6) All such cost records, cost statements and reconciliation statements,
maintained under these rules, relating to a period of not less than eight
financialyearsimmediatelyprecedingafinancialyearorwherethecompany
hadbeeninexistenceforaperiodlessthaneightyears,inrespectofallthe
precedingyearsshallbekeptingoodorder.
(7) Every person, referred to in subsection (6) and (7) of section 209 of the
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
mannerasheisliabletomaintainaccountsrequiredundersubsection(1)of
section209ofthesaidAct.
5. Form of the Compliance Report, Every company to which these rules apply shall
submitacompliancereport,inrespectofeachofitsfinancialyearcommencingonor
afterthedateofthisnotification,dulycertifiedbyaCostAccountant,alongwiththe
AnnexuretotheCentralGovernment,inthespecifiedform.
6. TimelimitforsubmissionofComplianceReport,Everycompanyshallsubmitthe
compliancereportreferredtoinrule5totheCentralGovernmentwithinaperiodof
onehundredandeightydaysfromthecloseofthecompanysfinancialyeartowhich
thecompliancereportrelates.
7. Authentication of Annexure to the Compliance Report, The Annexure to the
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. Penalties, (1) If default is made by the Cost Accountant in complying with the
provisionsoftheserules,heshallbepunishablewithfine,whichmayextendtofive
thousandrupees.
(2) Forcontraventionoftheserules,
(a) the company shall be punishable as provided under subsection (2) of
section642oftheAct;and
(b) everyofficerthereofwhoisindefault,includingthepersonsreferredtoin
subsection(6)ofsection209oftheAct,shallbepunishableasprovided
undersubsections(5)and(7)ofsection209ofCompaniesAct,1956(1of
1956).
9. Savings,ThesupersessionoftheCostAccountingRecords(BulkDrugs)Rules,1974
andCostAccountingRecords(Formulations)Rules,1988,shallnotinanywayaffect
(a) any right, obligation or liabilities acquired, accrued or incurred
thereunder;

(b) any penalty, forfeiture or punishment incurred in respect of any

contraventioncommittedthereunder;and
(c) anyinvestigation,legalproceedingorremedyinrespectofanysuchright,
privilege, obligation, liability, penalty, forfeiture or punishment as
aforesaid,and;anysuchinvestigation,legalproceedingorremedymaybe
instituted, continued or enforced and any such penalty, forfeiture or
punishmentmaybeimposedasifthoseruleshadnotbeensuperseded.


FormforfilingComplianceReportandother
documentswiththeCentralGovernment
[Pursuanttosection209(1)(d),600(3)(b)oftheCompaniesAct,1956andrule2oftheCostAccounting
Records(PharmaceuticalIndustry)Rules,2011]

FORMA

PARTIGENERALINFORMATION
Note:Allfieldsmarkedin*aretobemandatorilyfilled.
1 (a) *Corporateidentitynumber(CIN)or
foreigncompanyregistrationnumberof
thecompany

(b) Globallocationnumber(GLN)of
company

PreFill

2 (a) *Nameofthecompany

(b) *Addressoftheregisteredofficeorof
theprincipalplaceofbusinessinIndia
ofthecompany

(c) *EmailAddressofthecompany

3 (a) *Financialyearcoveredbythe
compliancereport

From

To

(DD/MM/YYYY)

(b) *DateofBoardofdirectorsmeetinginwhichannexure
tothecompliancereportwasapproved

(DD/MM/YYYY)

(DD/MM/YYYY)

4.Detailsofthecostaccountant
(a) *Categoryofthecostaccountant

Individual

(b) Incaseofindividual,whetherthecostaccountant
isinpermanentemploymentofthecompanyorin
practice

Costaccountants
firm

InEmployment

(c) *Nameofthecostaccountantorthe
costaccountantsfirmwhohascertified
thecostrecordsofthecompany

(d) *Incometaxpermanentaccountnumberofthecostaccountantorthecost
accountantsfirm

InPractice

 (e) *Membershipnumberofcostaccountantorcostaccountantsfirms
registrationnumber

(f) Addressofthecostaccountantorcostaccountantsfirm

(i)LineI
LineII
(ii)City
(iii)State
(iv)Country
(v)PinCode

(g) *EmailIDofthecostaccountantor
costaccountantsfirm

5.*QuantitativeInformation
Sno. NameoftheProductorServiceGroup

Unit

ProducedorManufacturedProduct
1.

Annual
Production
(Quantity)

2.
3.etc.
ServicesGroups
1.

2.
3.etc.
TradingActivities(ProductGroupwise)
1.

2.

3.etc.
D OtherIncome
TotalIncomeasperFinancialAccounts

NetSales
(Quantity)
(Valuein
Rupees)

PARTII
Attachments:
CompliancereportaspertheCostAccounting
1
Records(PharmaceuticalIndustry)Rules,2011
2 Optionalattachments(s)ifany

Attach

Attach

Listofattachments

Removeattachment

Verification:

Tothebestofmyknowledgeandbelief,theinformationgiveninthisformanditsattachmentsiscorrect
andcomplete.
IhavebeenauthorisedbytheBoardofdirectors
(DD/MM/YYYY)

dated
resolutionnumber
tosignandsubmitthisform.

Iamauthorisedtosignandsubmitthisform.

Tobedigitallysignedby:

ManagingDirectorordirectorormanagerorsecretary(incaseofanIndiancompany)
oranauthorisedrepresentative(incaseofaforeign

company)

*Designation

Digital
Signatures

*DirectoridentificationnumberofthedirectororManagingDirector;orIncometaxPAN
ofthemanagerorofauthorisedrepresentative;orMembershipnumber,ifapplicableor

incometaxPANofthesecretary(secretaryofacompanywhoisnotamemberofICSI

mayquotehis/herincometaxPAN)

Directorofthecompany

Directoridentificationnumberofthedirector

Modify

CheckForm

Prescrutiny

Digital
Signatures

Submit

ThiseformhasbeentakenonfilemaintainedbytheCentralGovernmentthroughelectronicmodeand
onthebasisofstatementofcorrectnessgivenbythefilingcompany

FORMB
FORMOFCOMPLIANCEREPORT
[Seerule2,andrule5]
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(PharmaceuticalIndustry)Rules,2011of...........................................................(mention
name of the company) having its registered office at ..................................................... (mention
registered office address of the company) (hereinafter referred to as the company), have
examinedthebooksofaccountprescribedunderclause(d)ofsubsection(1)ofsection209ofthe
saidAct,andotherrelevantrecordsfortheperiod/year.............................(mentionthefinancial
year)andcertifyasunder:

1 IorWehaveorhavenotobtainedalltheinformationandexplanations,whichtothebestof
myorourknowledgeandbeliefwerenecessaryforthepurposeofthiscompliancereport.
2 Inmyorouropinion,propercostrecords,aspertheCostAccountingRecords(Pharmaceutical
Industry) Rules, 2011 prescribed under clause (d) of subsection (1) of section 209 of the
CompaniesAct,1956,haveorhavenotbeenmaintainedbythecompanysoastogiveatrue
and fair view of the cost of production or operation, cost of sales and margin of all the
productsandactivitiesofthecompany.
3 Detailed unitwise and product or activitywise cost statements and schedules thereto in
respectoftheproductgroupsoractivitiesareorarenotkeptinthecompany.
4 Inmyorouropinion,thesaidbooksandrecordsgiveordonotgivetheinformationrequired
bytheCompaniesAct,1956inthemannersorequired.
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
InstituteofCostandWorksAccountantsofIndia,totheextentthesearefoundtoberelevant
andapplicable.
Dated: this ____ day of _________ 20__ at _________________ (mention name of place of
signingthisreport)
SIGNATUREANDSEALOFTHECOSTACCOUNTANT(S)
MEMBERSHIPNUMBER(S)
NOTES:
(i) Deletewordsnotapplicable.
(ii) Ifasaresultoftheexaminationofthebooksofaccount,thecostaccountantdesiresto
point out any material deficiency or give a qualified report, he shall indicate the same
againsttherelevantpara.
(iii) Brieflygiveyourobservationsandsuggestions,ifany,relevanttothemaintenanceofcost
accountingrecordsbythecompany.
(iv) Costaccountantmayuseseparatesheet(s)for(ii)and(iii)above,ifrequired.

ANNEXURETOTHECOMPLIANCEREPORT
[Seerule2andrule5]
1.GENERAL:
a) Nameofthecompany:
b) Registeredofficeaddress:
c) FinancialyeartowhichtheComplianceReportrelates.
2.QUANTITATIVEINFORMATION:
Sno. NameoftheProductorService
Group
A

ProducedorManufacturedProduct
Groups

1.

2.

3.etc.
B ServicesGroups

1.

2.

3.etc.
C TradingActivities(ProductGroup
wise)

1.

2.

3.etc.
D OtherIncome
TotalIncomeasperFinancialAccounts

Unit

NetSales
(Qty.)
(Valuein
Rupees)

Annual
Production
(Qty.)

3.RECONCILIATIONSTATEMENT:
NetMargin(ProfitorLoss)asperCostAccounts
A.FromProducedorManufacturedProductGroups
B.FromServicesGroups
C.FromTradingActivities
TotalasperCostAccounts
Add:IncomesnotconsideredinCostAccounts(ifany)
Less:ExpensesnotconsideredinCostAccounts(ifany)
Add/Less:DifferenceinStockValuation
Profitor(Loss)asperFinancialAccounts

(InRupees)

NOTES:
(i) Forproducedormanufacturedproductgroups,usethenomenclatureasusedinthe
CentralExciseActorRules,asapplicable.

10

(ii) For services groups, use the nomenclature as used in the Finance Act or Central
ServiceTaxRules,asapplicable.

SIGNATURE

NAME

COSTACCOUNTANT(S)

MEMBERSHIPNUMBER(S)

SEAL

DATE

"SCHEDULE
[Seerule4]

PROFORMAA
StatementshowingcostofUtilitieslikeWaterorPoweretc.

NameoftheCompany
NameoftheUnit
NameoftheUtility
Fortheperiod

IQuantitativeInformation
Sno.
1
2
3
4
5
6
7

Particulars
InstalledCapacity
QuantityProduced
CapacityUtilization(%)
Quantityrecirculated
QuantityPurchased,ifany
Selfconsumptionincludinglosses(tobespecified)
NetUnitsAvailable

Unit

Currentyear

Previousyear

IICostInformation:
Sno.

Particulars

MaterialsConsumed(specify)
Indigenous
Imported
SelfManufactured/Produced
2.
ProcessMaterials/Chemicals
(specify)
3.
Utilities(specify):
4.
DirectEmployeesCost
5.
DirectExpenses(specify)
6.
ConsumableStoresandSpares
7.
RepairsandMaintenance
8.
Depreciation
9.
Leaserent,ifany
10. Otheroverheads
11. Subtotal(1to11)
12. Less:Credit,ifany

Quantity Rateper
unit

Amount

CostperUnit
Current Previous
Year
Year
Rs.
Rs.

Unit

Rs.

Rs.

11

Sno.

Particulars

13.

Totalcost(1211)
Apportionment:(costcentrewise)
1.CostCentre1
2.CostCentre2
3.CostCentre3
Total

Quantity Rateper
unit

Amount

Unit

Rs.

Rs.

CostperUnit
Current Previous
Year
Year
Rs.
Rs.

PROFORMAB
StatementshowingSummaryQuantitativeDetailsofallIntermediatesorBulkDrugs
ProcessedorManufactured

NameoftheCompany

NameandaddressoftheFactory

DrugLicenceNo.&Date

Fortheperiod

Sno. Particulars
Unit
CurrentYear
PreviousYear
1.
i)InstalledCapacity

ii)Capacitybyleasingarrangementsetc

TotalCapacity

2.
Production:

a. DedicatedPlant

b. MultipurposeEquipmentorPlant

c. UnderLoanLicenceifany

Total

3.
AverageWorkingHoursperday

4.
ActualOperatingDaysinayear

Particulars

QuantityperUnit
QuantityperUnit
5.
GrossInputs:

Standard
Actual Standard
Actual
a)
IntermediateorIngredient1:

MaterialsConsumed(specify)

ProcessChemicals(specify)

Utilities(specify)

Total

b)
IntermediateorIngredient2:

MaterialsConsumed(specify)

ProcessChemicals(specify)

Utilities(specify)

Total

c)
IntermediateorIngredient3:

MaterialsConsumed(specify)

ProcessChemicals(specify)

Utilities(specify)

Total

ProvidedetailsofallIntermediatesorIngredientsorBulkDrugsseparatelyasaboveunderSno.5.

12

PROFORMAB1
StatementshowingCostofProductionofIntermediatesorBulkDrugsProcessedor
Manufactured

NameoftheCompany
NameandaddressoftheFactory
DrugLicenceNo.andDate
NameofIngredientorIntermediateorBulkDrug
Fortheperiod

I.QuantitativeInformation:
Sno. Particulars
1.
BatchSize
2.
NumberofBatchesProduced
3.
ActualYield%
4.
StandardYield%
5.
Production

IICostInformation:
Sno. Particulars
Unit

Unit

CurrentYear

Quantity

Rate

Amount

CostperUnit
Current
Previous
Year
Year
Rs.
Rs.

Rs.
1.

2
3
4
5
6
7
8
9
10
11
12
13
14

15
16
III

MaterialsConsumed(specify)
a) Indigenouspurchased
b)Imported
b) Selfmanufactured/produced
Total
ProcessChemicals(specify)
Utilities(specify)
DirectEmployeesCost
DirectExpenses(specify)
ConsumableStoresandSpares
RepairsandMaintenance
QualityControlExpenses
ResearchandDevelopment
TechnicalknowhowFee
DepreciationorAmortization
OtherProductionOverheads
Total(1to12)
Add,OpeningStockinProcess
Less,ClosingStockinProcess
Balance
Less:CreditsfromRecoveries
CostofProduction
ALLOCATEDTO
1.
2.
3.(specify)
Total

PreviousYear

13

Rs.

PROFORMAC
StatementshowingCostofSales,SalesRealizationandMargininrespectof
IntermediatesorBulkDrugProcessedorManufacturedandSold

NameoftheCompany
NameandaddressoftheFactory
DrugLicenceNo.andDate
NameofIngredientorIntermediateorBulkDrug
Fortheperiod

I.QuantitativeInformation:
Sno.
Particulars
1.
ProductionTransferred
2.
Less,CaptiveConsumption

Balance

OpeningStockUnpacked

ClosingStockUnpacked

PackedProduction
3.
OpeningStockPacked
4.
ClosingStockPacked
5.
Balance
6.
Quantitytransferredfor:
(a) DomesticSale
(b) ExportSale
(c) Others(specify)

IICostInformation:
Sno. Particulars
Unit

Unit

CurrentYear

Quantity

Rate

Amount

CostperUnit
Current
Previous
Year
Year
Rs.
Rs.

Rs.
1.
2.

3.
4.

5.

6.
7.
8.
9.
10.
11.
12.

CostofProductionb/f
(ProformaB)
Less:CaptiveConsumption
for:
(a) Product1
(b) Product2(etc.)
BalancePacked
Add,OpeningStock
Unpacked
Less,ClosingStock
Unpacked
PackingCost
(a) Materials
(b) Others
CostofPackedProduction
Add,OpeningStockPacked
Less,ClosingStockPacked
Balance
AdministrativeOverhead
SellingandDistribution
Overheads
CostofSales
InterestandFinancing
charges

PreviousYear

14

Rs.

Sno.

Particulars

13.
14.
15.
16.

TotalCost
NetSalesRealisation
Margin
Add:ExportBenefitsand
Incentives,ifany
TotalMargin(including
exportbenefits)

Unit

Quantity

Rate

Amount

CostperUnit
Current
Previous
Year
Year
Rs.
Rs.

Rs.

17.

Rs.

PROFORMAD
StatementshowingCostofProductionofIntermediatesorBulkDrugorFormulation
processedonJobChargesbasis

NameoftheCompany
NameandaddressoftheJobProcessor
DrugLicenceNo.andDate
NameofIngredientorIntermediateorBulkDrug
Fortheperiod

I.QuantitativeInformation:
Sno. Particulars
1. MaterialSenttoProcessor(specifydetails}

a) RawMaterials

b) Ingredients

c) BulkDrugs

d) PackingMaterials
2. OpeningStockofMaterials

a) RawMaterials

b) Ingredients

c) BulkDrugs

d) PackingMaterials
3. ClosingStockofMaterials

a) RawMaterials

b) Ingredients

c) BulkDrugs

d) PackingMaterials
4. MaterialConsumed(specifydetails}

a) RawMaterials

b) Ingredient

c) BulkDrugs

d) PackingMaterial
5. Normalwastageofmaterial
6. Abnormalwastageofmaterial
7. QuantityProduced

a) BulkDrugs

b) Formulations
8. QuantityProduced(asperExciseRecords)

a) BulkDrugs

b) Formulations

Unit

15

CurrentYear

PreviousYear


IICostInformation:
Sno. Particulars

Unit

Quantity

Rate

Amount

CostperUnit
Current
Previous
Year
Year
Rs.
Rs.

Rs.
1.
2.
3.

4.
5.
6.

7.
8.

9.

MaterialsConsumedby
Processor(specify)
ProcessingCharges
Add,OpeningStockin
Process
Less,ClosingStockinProcess
Balance
Less:Creditsfrom
Recoveries
CostofProduction
Add,OpeningStock
Unpacked
Less,ClosingStock
Unpacked
PackingMaterialCost
CostofPackedProduction
Add,OpeningStockPacked
Less,ClosingStockPacked
BalanceReceivedfrom
Processor
ALLOCATEDTO:
1.
2.
3. (etc.)

16

Rs.

PROFORMAE
StatementshowingAllocationandApportionmentofTotalExpensesandConversionandPackingCostforvariousCostCentres

Nameofthecompany

Period

(AmountinRupees)
Total
Expensesas
perAudited
Financial
Accounts

Sno. Particulars

Utilities
(separately
foreach)

Production
PackingCost
CostCentres Centres(specify
(specify
primaryor
separately)1
secondary
separately)2

Factory
Overheads

Administra
tion
Overheads

Marketingor
Sellingand
Distribution

Other
Activities

NonCost
Expenses

QuantitativeDetails

No.ofBatches

QuantityInput

QuantityOutput

MachineHoursorLabourHours

CostInformation:

1.

DirectMaterials(specify)

2.

ProcessChemicals(specify)

3.

Chemicals(specify)

4.

PowerandFuel

5.

EmployeeBenefits:

b) ContributiontoProvidentandOtherFunds

c) StaffWelfareExpenses

a)

b) Worked

Available

a) Salaries,Wages,BonusEtc.

6.

ConsumableStoresandSpares

7.

RepairsandMaintenance

a) PlantandMachinery

17

Total
Expensesas
perAudited
Financial
Accounts

Sno. Particulars

Utilities
(separately
foreach)

PackingCost
Production
CostCentres Centres(specify
primaryor
(specify
secondary
separately)1
separately)2

Factory
Overheads

Administra
tion
Overheads

Marketingor
Sellingand
Distribution

Other
Activities

NonCost
Expenses

b) Buildings

c) Others

8.

OtherDirectExpenses(specify)

9.

Rent

10.

Insurance

11.

RatesandTaxes

12.

PaymentToAuditors

13.

TravelingandConveyance

14.

CommunicationExpenses

15.

PrintingandStationery

16.

BankCharges

17.

SecurityForceExpenses

18.

SalesPromotionExpenses

19.

HandlingExpenses

20.

MiscellaneousExpenses

21.

TransportationCharges

22.

QualityControl

23.

RoyaltyorTechnicalKnowhow

24.

TechnicalAssistantFees

25.

OtherStatutoryLevies

26.

LeaseRent

27.

ResearchandDevelopment

28.

PackingExpenses

29.

BorrowingCharges

30.

LossonAssetsSold,LostorWrittenOff

18

Total
Expensesas
perAudited
Financial
Accounts

Sno. Particulars

Utilities
(separately
foreach)

PackingCost
Production
CostCentres Centres(specify
primaryor
(specify
secondary
separately)1
separately)2

Factory
Overheads

Administra
tion
Overheads

Marketingor
Sellingand
Distribution

Other
Activities

NonCost
Expenses

31.

ExchangeRateFluctuations

32.

ProvisionForDoubtfulDebts,Advances,
ClaimsandObsolescence

33.

ProvisionforContingencies

34.

DepreciationorDepletion

35.

TotalExpenses

36.

AllocationofUtilities(specify)

37.

ApportionmentofOverheads(specify

38.

Total

39.

Less,CostofMaterialsandBoughtOut
Components

40.

ConversionCost(3839)

41.

CostperMachineHourorDirectLabour
Hour

42.

CurrentYear

43.

PreviousYear

1.

SpecifycostcentresasWeighingandMixing,Filtration,TabletMaking,Preparation,Inspection,Testing,QualityControletcunderProductioncostcentres,asapplicable.

2.

PackingcostcentrestobeshownseparatelyunderCartooning,Boxing,etc.underPrimaryorSecondaryPackingcostcentres.

19

ReconciliationControl:
Sno. Particulars

Total
Expensesas
perAudited
Financial
Accounts

Utilities
(separately
foreach)

Production PackingCost
CostCentres
Centres
(specify
(specify
separately) primaryor
secondary
separately

Factory
Overheads

Administra
tion
Overheads

Marketingor
Sellingand
Distribution

Other
Activities

NonCost
Expenses

1.

TotalExpensesb/fasperSno.35above

2.

Add,OpeningStockinProcess

Less,ClosingStockinProcess
3.

Less,CreditforRecoveries

4.

Less,SelfConsumption,ifany,

5.

Add,OpeningStockFinished

Less,ClosingStockFinished
6.

Total(excludingExciseDuty)

7.

ExciseDutyPaid

8.

Total(includingExciseDuty)

9.

TotalSalesRealization(excludingExcise
Duty

10.

ExciseDutyRecovered

11.

TotalSales(includingExciseDuty)

12.

Add:ExportBenefit,ifany

13.

ProfitasperProfitandLossAccount

20

PROFORMAF
StatementshowingApportionmentofConversionCostandPackingCostforvariousProducts

NameoftheCompany
NameandaddressoftheFactory
DrugLicenceNo.andDate
Fortheperiod

Sno. ProductorFormulation
(specify)

Apportionmentof

Etc.

Total

Size

Qty

CostCentres(SpecifyNamesofcostcentressuch
asWeighing&Mixing,Filtration,TabletMaking,
Preparation,Inspection,Testing,QualityControl
etc.incolumnsbelow)
5
6
7
8
9
X
Y
X
Y
X
Y
X
Y
X
Y
Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs.
A. ConversionCosttoProductorFormulations

Total

Total

CostCentres(SpecifyNamesofcostcentressuch
asWeighing&Mixing,Filtration,TabletMaking,
Preparation,Inspection,Testing,QualityControl
etc.incolumnsbelow)
10
11
12
13
14
X
Y
X
Y
X
Y
X
Y
X
Y
Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs. Hrs Rs.
B. PackingCosttoProductorFormulations

X=Actualdirectlabourormachinehoursutilizedasperactualrecordingoranyotherappropriatebasisofapportionment.
Y=ConversionCostinrupees

21

PROFORMAG
StatementshowingCostofProduction,CostofSales,SalesRealizationandMarginin
respectofFormulation

NameoftheCompany

NameandaddressoftheFactory

DrugLicenceNo.andDate

NameoftheFormulation/Drug

Fortheperiod

Sno. Particulars
1
Nameoftheformulation(withtrademark)manufacturedormarketedanditscomposition

2
TypeofFormulations:PlainorCoatedTablet,SoftorHardorPrintedCapsuleswithorwithout
Band,SterileorNonsterileLiquidPowderorOintmentorCreametc.(specify)
3
TypeofPacking:AluminumorPaperorCellophaneorBlisterorStripeorVialsorAmpouleor

BottleorTinorJaretc.(specify)
4
SizeofPacking(specify)

5
BatchSize(Specify)

Standard
Actual
6
Production
Current
Previous
Current
Previous
Year
Year
Year
Year
I
No.ofBatchesCharged

II
No.ofBatchesProduced

III
TotalQuantityProduced

IV
QuantityPacked

V
PackedQuantitySold

(a) QuantitySoldineachpacksize
(b) TotalnumberofPacksSold
VI
AssessableValueoftheproductreconciledwith

ExciseRecords

Quantity
Rate Amount
CostPerunit
Sno. Particulars
Unit
Theore
Actual
Rs.
Rs.
Current
Previous
tical
Year
Year
A
MaterialsConsumed

(a) Imported(specifyinput)

(b) Indigenous(specifyinputs)

(c) OwnProducedorManufactured

(Specifymajoritems)
(d) Less:WastesorRejects

(e) TotalMaterialCost(A)

B
PrimaryPackingMaterial

(a) AluminumorPVCorCellophane,

BlisterFoiletc.forfrontuse
(b) AluminumorPVCorCellophane,

BlisterFoiletc.forbackside
(c) BottleorContainerorTubeetc

(d) Ampoules/Vialsetc

(e) Capsulesetc.

(f) Leaflets

(g) Cartons

(h) Others(specify)

(i) Less:WastesorRejects

(j) TotalPackingMaterials(B)

C
ConversionCost

22

Sno.

Particulars

(a) WeighingandMixing
(b) Filtration
(c) PreparationofSolutionor
Ointment
(d) Inspection
(e) QualityControl
(f) Testing
(g) ResearchandDevelopment
(h) Others(specify)
(i) TotalConversionCost(C)
D
PackingCost(D)
E
OtherExpenses
(a) Royalty
(b) Storage
(c) Others(specify)
(d) Total(E)
F
TotalCost(A+B+C+D+E)
G
Add:OpeningWorkinProgress
Less:ClosingWorkinProgress
H
AdjustmentforCostVariance
I
TotalProductionCost(FtoH)
J
SecondaryPackingMaterials
(a) Cartoons
(b) Leaflets
(c) Dropper
(d) Boxes
(e) GumTapes
(f) Others(specify)
(g) Less:WastesorRejects
(h) Total(atog)
K
SecondaryPackingCostor
Charges
(a) Cartooning
(b) Boxing
(c) Others(specify)
(d) Total(atoc)
L
TotalCostofPackedProduction
(I+J+K)
M
Less:TransferforClinicalor
SampleorTrailsetc.
N
Balance(L+M)
O
Add:OpeningStockPacked

Less:ClosingStockPacked
P
BalanceSold
Q
AdministrationOverheads
R
CostofGoodsSold(P+Q)
(a) DomesticSales
(b) ExportSales
(c) Total(a+b)
S1
DistributionCost(specify)

a)

b)

c)etc

Unit

Quantity
Theore
Actual
tical

CostPerunit
Current
Previous
Year
Year

23

Rate
Rs.

Amount
Rs.

Sno.

S2
(a)
(b)
(c)
(d)
S3
(a)
(b)
(c)
(d)
T
U
V
W
X
(a)
(b)
(c)
(d)
Y
Z1
Z2
Z3
Z4

Particulars

Unit

Quantity
Theore
Actual
tical

SalesPromotionExpenses
Wholesalers
CandFAgents
Retailers
Others(specify)
TradeCommission
Wholesalers
CandFAgents
Retailers
Others(specify)
Total(R+S1+S2+S3)
InterestandFinancingCharges
OtherExpensesorIncomenot
includedinCost(givedetails)
TotalCostofSalesexcluding
ExciseDuty
NetSalesRealizationexcluding
ExciseDuty
DomesticSales
ExportSales
Add:ExportBenefitsand
Incentives
Total(atoc)
Margin(NM)
MaximumRetailPriceexcluding
ExciseDuty
MaximumPriceunderDPCOas
applicable
AssessableValueoftheProduct
ExciseDuty

CostPerunit
Current
Previous
Year
Year

24

Rate
Rs.

Amount
Rs.

ProformaH
StatementshowingActivitywiseCapitalCostofPlantandMachinery/EquipmentrelatingtoBulkDrugs,FormulationsandOtherCommonServices&
Activities
Nameofthecompany:
ForthePeriod:

(AmountinRupees)

Sno. Particulars
Costasat
beginning
oftheyear
A.
1.
2.
etc
B.
1.
2.
etc
C.
1.
2.
etc
D.
1.
2.
etc
E.
1.
2.
etc
F.
1.
2.
etc
H.

GrossBlock
Additionsor Deductions
Transfers
orTransfer
duringthe
duringthe
year
year

Ingredients(specify)

BulkDrugActivity(specify)

Formulations(specify)

Packing

Utilities(specify)

Common(Production/Administrative/Marketing)Overheads(specify)

GrandTotal(AtoG)

TotalCost
attheend
oftheyear

Asat
beginning
oftheyear

Totalatthe
endofthe
year

NetBlock
Asatthe
Asat
beginning
endofthe
oftheyear
year

Depreciation
Fortheyear
On
deductions
duringthe
year

25

PROFORMAI
StatementofProfitReconciliation(forthecompanyasawhole)

NameoftheCompany
DrugLicenceNo.andDate
Fortheperiod

Sno.

Particulars

1.

CurrentYear
Rs.

PreviousYear
Rs.

ProfitorLossasperCostAccountingRecords

a)

ForProductGroupsundertheseRules

b) FortheProductGroupsoutsidetheseRules

2.

Add:Incomesnotconsideredincostaccounts:

(a)Specify

(b)

Total

Less:Expensesnotconsideredincostaccounts:

(a)Specify

(b)

Total

4.

Add:OvervaluationofClosingStockinFinancialAccounts

5.

Add:UndervaluationofOpeningStockinFinancialAccounts

6.

Less:UndervaluationofClosingStockinFinancialAccounts

7.

Less::OvervaluationofOpeningStockinFinancialAccounts

8.

Adjustmentsforothers,ifany(specify

9.

ProfitorLossasperFinancialAccounts

3.

NOTES:
1

Separatecoststatementshallbepreparedforeachutilityoreachactivityorsubactivity
or interunit and intercompany transfers relating to Intermediates or Bulk Drugs or
Formulations in the prescribed proforma. In case Intermediates or Bulk Drugs or
Formulationsareprocessedthroughoutsideagencyonjobchargesbasis,separatecost
statement shall be prepared in the prescribed proforma indicating job processing
chargesseparately.

In case the company follows a predetermined or standard costing system, the cost
statement shall reflect figures at actual after adjustment of variances, if any. Reasons
forvariationsbetweenstandardsandactualshallbeclearlyrecorded.Thisinformation
istobeindicatedfortwoyears.Circumstancesleadingtorevisionofstandards,ifany
shallalsobeindicatedintheformofafootnote.

Ifthedrugismanufacturedbyfermentationprocessthefollowinginformationshallbe

26

maintainedonannualaveragebasis:
(a)number of fermenters with their operating capacity or volume, average
fermentationhoursandturnaroundtime;
(b)average whole broth volume, whole broth potency and filtered broth potency per
batch;
(c)stagewiseandoverallpercentagerecoveryefficiencyofbothdrugandintermediate
fromthefermentedbroth;
(d)averagebatchoutputandnumberofbatchesprocessedanddrained;
(e)averagepotency/purityofthefinisheddrug;and
(f) stagewise annual average quantity consumption of all major raw materials
includingsolventsusageshallbemaintainedalongwithquantityproducedateach
stage.Similarlydetailsofconsumptionofprimaryutilitiesofinrespectofthedrug
shallbemaintained.
4

If the drug is manufactured by chemical process, the following details shall also be
maintained,namely:
(a)In the case of dedicated facilities, details such as name of the equipment and
designedcapacity,numberofequipmentsavailable,positionorcodenumberofthe
equipment,reactionoroperationcarriedoutintheequipment,batchsize(inputor
batch and output or batch), occupancy time hour, yield and WIW with respect to
main input at each stage and the cumulative yield, byproduct or recoveries of
solventsetc.(Kg.orLtr.).
(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
alongwithbasisofallocation.

Appropriatechemicalequationofreactionwithmolecularweightandrecoverylevelsof
solventsandbyproductateachstageshallalsobekept.Further,incaseofanychange
intheprocessoftechnologyandtheconsequentialbenefittherefromduringtheyear
orintherecentpastshallbemaintained.

Actualquantityconsumedincludingoverages,ifanyshouldbeincludedinProformaG.

The items of cost shown in the Proforma are indicative and the same should be
reflectedKeepinginmindthematerialityoftheitemofcostintheproduct.

Separateproformashallbepreparedforthequantitysoldwithinthe countryandthe
quantityexported.Expensesincurredonexportandtheincentiveearnedthereonshall
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
salesrealization.Separatecostdetailsshallbemaintainedforexpenditureincurredfor
gettingaccreditationfromoverseasregulatoryauthoritiesanditsrecurringexpenditure
thereof, if any. This cost shall be charged to products exported on scientific and

27

equitablebasis.
9

Sales realizations shall be separately indicated for the quantities of product under
referencesold(i)atthenotifiedpricesunderDrug(PricesControl)Order,1995and(ii)
atpricesfixedbythecompany.

10

The quantitative basis of apportionment of common overheads should be enclosed

separately.

11

Theitemsofcostshownintheproformaareindicativeandthesameshallbereflected
keepinginmindthematerialityoftheitemofcostintheproductandactivitygroup.

12

Details of apportionment of depreciation to respective activity shall be specified

separatelyforcommonfixedassets.

13

Theconversioncostshallbeindicatedcostcenterwiseseparatelyinrespectoftablets,
capsules,syrups,injectables,ointmentetcinrelevantproforma.

14

Liabilities,ifany,ofoverchargingonaccountofsellingatapricehigherthantheprice
fixedbytheGovernmentshallbefurnished.

15

The packing cost shall be indicated cost centerwise separately in respect of tablets,
capsules,syrups,injectables,ointmentetc.

16

The abnormal Loss, if any, both in quantity and cost shall be shown in a separate
statementindicatingthereasonsandperunitimpactthereof.

17

All items of income and expenditures in Proforma I shall be reconciled with the
financialaccountsfortherelevantperiod.

[F.No.52/7/CAB2011]

B.B.GOYAL
Adviser(Cost)

28