(a) in sub-rule (1), after the figures, letters and words "1st day of October 1967", the words, letters and figures "till the 31st day of March, 2000 shall be inserted";

(b) after sub-rule (2), the following sub-rules shall be inserted, namely:-

(1) Proper records shall be maintained showing separately all receipts, issues and balances both in quantities and cost of each item of raw material like HIP granules, foaming chemicals, CRC sheets, including bought out components like compressor, baffle tray, crisper tray, thermostat etc. required for the production of each type of Refrigerators and components thereof. These records shall contain such details so as to enable the company to determine the quantity and cost of receipt (including all direct charges upto the works such as freight and insurance in respect of major raw materials), issues and balances in quantity as well as value of each item of all such raw materials. The basis on which the said quantities and costs of issue and consumption have been calculated shall be indicated in the cost records and followed consistently. In the case of imported raw materials records shall be maintained showing separately details such as FOB value, Overseas Freight, Insurance, Custom Duty and Inland freight charges. If both indigenous and imported materials are consumed, records showing details of percentage mix of the same have to be maintained for each item. Materials processed through outside parties shall be recorded separately.

(2) In case of major components manufactured by the company itself separate records shall be maintained for the quantity manufactured and the cost of manufacture/production of such components.

(3) Proper records shall be maintained to show the receipts, issues and balances, both in quantities and cost of each item of consumable stores, tools and machinery spares etc. The cost shall include all direct charges upto works.

(4) In the case of consumable stores and small tools the cost of which are insignificant, the company may, if it so desires, maintain such records for the group of such consumable stores and tools.

(5) The cost of consumption of consumable stores, small tools and machinery spares shall be charged to the relevant cost centre/department on the basis of actual issues.

(6) Proper records shall be maintained showing the quantity and value of wastage, spoilage, rejections and losses of raw materials, whether in transit or storage manufacture or at any other stage. The method followed for adjusting the above rejected and waste materials including spoilage, if any, in determining the cost of product shall be indicated in the cost records. Any abnormal wastage or spoilage or rejection shall be indicated distinctly and separately along with reasons thereof. The records shall also be maintained to indicate the value of raw materials and components, finished and semi-finished which have not moved for more than 12 months.

(7) Where any credit under Modified Value Added Tax (MODVAT) or any other benefit under the Central Excise, 1944 (1of 1944) are available on any item of material, the cost of such material should be shown after adjusting such credit or benefits.

(1) Proper records shall be maintained to show the attendance and earnings of all employees of the cost centres/departments and the work on which they are employed. The records shall also indicate the following separately for each cost centre or department:

(2) The records shall be maintained in such a manner as to enable the company to furnish necessary particulars under this head in Proforma of Schedule III annexed to these rules. Records may be maintained to book these expenses cost centrewise/departmentwise like fabrication shop, paint shop, vacuum foaming shop, assembly shop etc. Where the employees work in such a manner that it is not possible to identify them with any cost centre/department, the labour charges shall be apportioned to the cost centres or departments on equitable basis and applied consistently.

(3) Idle time shall be separately recorded under classified headings indicating the reasons therefor. The method followed for accounting of idle time payments in determining the cost of the product shall be disclosed in the cost records.

(4) Any wages and salaries allocable, to capital works such as additions to plant and machinery, buildings or other fixed assets shall be accounted for under the relevant capital heads.

(1) Power - Proper records shall be maintained for the units and cost of power purchased for the production of refrigerators in different cost centres/ departments. Where power is generated by the company itself, adequate records, showing all elements of cost shall be maintained to show the cost of power generated and consumed for the production of the Refrigerators and components thereof in different cost centres /departments. Records shall also indicate installed capacity, number of units generated losses and consumption in each cost centre/department separately. Where power is generated and supplied by any other unit of the company to the Refrigerators plant adequate records shall be maintained to indicate the quantity and cost of power so supplied. The cost of power allocated to the production or manufacture of Refrigerators and components thereof shall be on a reasonable basis and applied consistently. Records should state clearly the measures taken on conservation of energy and its corresponding impact on unit cost of proudction.

(2) Other Utilities - Proper records showing quantity and cost shall be maintained in respect of any other utilities other than power produced or purchased by the company for the production or manufacture of Refrigerators and components thereof.

(1) Proper records showing the expenditure incurred by the workshop/tool rooms under different heads and on repairs and maintenance by the various cost centres/departments shall be maintained. The records shall also indicate the basis of charging the workshop/tool room expenses to different cost centres/departments. Where maintenance work is done by direct workers of any production cost centre/department, the wages and salaries of such workers shall be treated as direct expenses of the respective cost centre/department. If the services are utilized for other product also, the manner of charging a share to such products shall be equitable and clearly indicated in records and applied consistently. In addition to the above, records should indicate the amount and also the proportion or closing inventory of stores and spare parts representing items which have not moved for over 24 months.

(2) Expenditure on major repair works from which benefit is likely to accrue for more than one financial year shall be shown separately in the cost records indicating the method of accounting in determining the cost with reference to the period for which the benefit of such expenditure is likely to last.

(1) Proper records shall be maintained for the product under reference showing the various items of expenses comprising the other overheads. These expenses shall be analysed, classified and grouped according to functions, namely, works, administration, selling and distribution.

(2) Where the company is manufacturing products other than Refrigerators and components thereof, the records shall clearly indicate the basis followed for apportionment of the common overheads including head office expenses of the company to such products and Refrigerators and components thereof, including capital works. Where certain expenses forming part of overheads can be identified with a particular activity or a product, such expenses shall be segregated and charged to the relevant activity or product in the first instance and thereafter the residue expenses under the above categories of overheads shall be apportioned on a reasonable and equitable basis and applied consistently. Overheads chargeable to capital works shall be indicated separately in the cost records. Basis of apportionment or absorption of overheads to the cost centres/departments and products shall be indicated in the cost records.

(3) The records shall be maintained in such a manner so as to indicate the details of works, administration, selling and distribution overheads.

(1) Proper records showing the details of expenses, if any, incurred by the company for the research and development work on the product covered under these rules according to the nature of development of products, existing and new product, development of process of manufacture, existing and new, design and development of new plant facilities and market research for the existing and new products etc., shall be maintained separately.

(2) The method of charging these expenses to the Refrigerators and components thereof and all other products shall be indicated in the cost records. Where the utility of such research and development work extends over more than one financial year, such expenses shall be treated as deferred expenses and charged to the cost of production of Refrigerators and components thereof and all other products if any, on a

(3) Expenses incurred by the Research and Development Department for providing technical know-how to outsiders shall be recorded separately and excluded from the cost of Refrigerators and components thereof. The amount recovered for providing technical know-how to outsiders shall also be indicated

(1) Proper records shall be maintained showing the quantity and cost of various packing materials and other expenses incurred on packing for marketing of the Refrigerators and components thereof. Where such expenses are incurred in common for other products also, the basis of apportioning the expenses between the relevant products shall be clearly indicated in the cost records and applied consistently.

(2) Detailed records of the expenses incurred on export packing, if any, shall also be kept separately and exhibited in the relevant cost statements for exports.

(1) Cost statement showing details of installed capacity, production, wastage, issues and sales and all elements of cost of the current financial year and previous year shall be prepared for each process adopted in manufacture or production of Refrigerators and components thereof.

(2) Components manufactured in different production centres going in to final assembly of the product under reference shall be valued at the cost of production upto the stage of such transfer.

(3) If the company is operating more than one plant/factory, separate cost statements as specified above shall be maintained in respect of each plant/factory.

(1) Cost statements shall be reconciled with the financial statements for the financial year specifically indicating the expenses/incomes not considered in the cost records/statements so as to ensure accuracy. Variations, if any, shall be clearly indicated and explained.

(2) A statement showing the total expenses incurred and income received by the company under different heads of accounts and the share applicable to the products shall be prepared and reconciled with the financial statement.

(1) Records regarding available machine hours/direct labour hours in different production departments and actually utilised shall be maintained and shortfall suitably analysed. Suitable records for computation of idle time of machines also shall be maintained and analysed.

(2) Adequate records shall be maintained to enable the company to identify the capital employed, net fixed assets and working capital separately for the production/manufacture of Refrigerators and components thereof, other products and other activities. Fresh investments on fixed assets that have not contributed to the production during the relevant period shall be indicated in the cost records. The records shall, in addition, show assets added as replacement and those added for increasing existing capacity.

2. Separate proforma shall be prepared for the quantity sold within the country and the quantity exported. Expenses incurred on export and the incentive earned thereon shall be indicated in the proforma applicable for the quantity produced and exported."