User:Vraghava/Cost audit

Cost Audit:Indian Companies Act 1956 defines Books of Accounts as follows; Section 209. BOOKS OF ACCOUNT TO BE KEPT BY COMPANY. (1) Every company shall keep at its registered office proper books of account with respect to - (a) all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place; (b) all sales and purchases of goods by the company; (c) the assets and liabilities of the company; (d) in the case of a company pertaining to any class of companies engaged in production, processing, manufacturing or mining activities, such particulars relating to utilization of material or labor or to other items of cost as may be prescribed, if such class of companies is required by the Central Government to include such particular in the books of account. Provided that all or any of the books of account aforesaid may be kept at such other place in India as the Board of directors may decide and when the Board of directors so decides, the company shall, within seven days of decision, file with the Registrar a notice in writing giving the full address of that other place. (2) Where a company has a branch office, whether in or outside India, the company shall be deemed to have complied with the provisions of sub-section (1), if proper books of account relating to the transactions effected at the branch office are kept at that office and proper summarised returns, made up to dates at intervals of not more than three months, are sent by the branch office to the company at its registered office or the other place referred to in sub-section (1). (3) For the purposes of sub-sections (1) and (2), proper books of account shall not be deemed to be kept with respect to the matters specified therein, - (a) if there are not kept such books as are necessary to give a true and fair view of the state of the affairs of the company or branch office, as the case may be, and to explain its transactions; and (b) if such books are not kept on accrual basis and according to the double entry system of accounting. (4) The books of account and other books and papers shall be open to inspection by any director during business hours. (4A) The books of accounts of every company relating to a period of not less than eight years immediately preceding the current year together with the vouchers relevant to any entry in such books of account shall be preserved in good order : Provided that in the case of a company incorporated less than eight years before the current year, the books of account for the entire period proceeding the current year together with vouchers relevant to entry in such books of account shall be so preserved. (5) If any of the persons referred to sub-section (6) fails to take all reasonable steps to secure compliance by the company with the requirements of this section, or has by his own willful act been the cause of any default by the company there under, he shall, in respect of each offence, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both: Provided that in any proceedings against a person in respect of an offence under this section consisting of a failure to take reasonable steps to secure compliance by the company with the requirements of this section, it shall be a defence to prove that a competent and reliable person was charged with the duty of seeing that those requirements were complied with and was in a position to discharge that duty: Provided further that no person shall be sentenced to imprisonment for any such offence unless it was committed willfully. (6) The persons referred to in sub-section (5) are the following, namely:- (a) where the company has a managing director or manager, such managing director or manager and all officers and other employees and agents as define in sub-section (6) of section 240 but excluding bankers, auditors and legal adviser ; (b) where the company has neither a managing director nor manager, every director of the company; (c) every officer and other employee and agent (defined as aforesaid) of the company. (7) If any person, not being a person referred to in sub-section (6), having been charged by the managing director, manager or Board of directors, as the case may be, with the duty of seeing that the requirements of this section are complied with, makes default in doing so, he shall, in respect of each offence, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both Cost Audit as: Section 233B. AUDIT OF COST ACCOUNTS IN CERTAIN CASES. (1) Where in the e opinion of the Central Government it is necessary so to do in relation to any company required under clause (d) of sub-section (1) of section 209 to include in its books of account the particulars referred to therein, the Central Government may, by order, direct that an audit of cost accounts of the company shall be conducted in such manner as may be specified in the order by an auditor who shall be a cost accountant within the meaning of the Cost and Works Accounts Act, 1959 (23 of 1959) : Provided that if Central Government is of opinion that sufficient number of cost accountants within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959), are not available for conducting the audit of the cost accounts of companies generally, that Government may, by notification in the Official Gazette, direct that, for such period as may be specified in the said notification, such chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), as possesses the prescribed qualifications, may also conduct the audit of the cost accounts of companies, and thereupon a chartered accountant possessing the prescribed qualifications may be appointed to audit the cost accounts of the company. (2) The auditor under this section shall be appointed by the Board of directors of the company in accordance with the provisions of sub-section (1B) of section 224 and with the previous approval of the Central Government : Provided that before the appointment of any auditor is made by the Board, a written certificate shall be obtained by the Board from the auditor proposed to be so appointed to the effect that the appointment, if made, will be in accordance with the provisions of sub-section (1B) of section 224. (3) An audit conducted by an auditor under this section shall be in addition to an audit conducted by an auditor appointed under section 224. (4) An auditor shall have the same powers and duties in relation to an audit conducted by him under this section as an auditor of a company has under sub-section (1) of section 227 and such auditor shall make his report to the Central Government in such form and within such time as may be prescribed and shall also at the same time forward a copy of the report to the company. (5)(a) A person referred to in sub-section (3) or sub-section (4) of section 226 shall not be appointed or re-appointed for conducting the audit of the cost accounts of a company. (b) A person appointed, under section 224, as an auditor of a company, shall not be appointed or re-appointed for conducting the audit of the cost accounts of that company. (c) If a person, appointed for conducting the audit of cost accounts of a company, becomes subject, after his appointment, to any of the disqualifications specified in clause (a) or clause (b) of this sub-section, he shall, on and from the date on which he becomes so subject, cease to conduct the audit of the cost accounts of the company. (6) Upon receipt of an order under sub-section (1), it shall be the duty of the company to give all facilities and assistance to the person appointed for conducting the audit of the cost accounts of the company. (7) The company shall, within thirty days from the date of receipt of a copy of the report referred to in sub-section (4), furnish the Central Government with full information and explanations on every reservation or qualification contained in such report. (8) If, after considering the report referred to in sub-section (4) and the information and explanations furnished by the company under sub-section (7), the Central Government is of opinion that any further information or explanation is necessary, that Government may call for such further information and explanation and thereupon the company shall furnish the same within such time as may be specified by the Government. (9) On receipt of the report referred to in sub-section (4) and the in formations and explanations furnished by the company under sub-section (7) and sub-section (8), the Central Government may take such action on the report, in accordance with the provisions of this Act or any other law for the time being in force, as it may consider necessary. (10) The Central Government may direct the company whose cost accounts have been audited under this section to circulate to its members, along with the notice of the annual general meeting to be held for the first time after the submission of such report, the whole or such portion of the said report as it may specify in this behalf. (11) If default is made in complying with the provisions of this section, the company shall be liable to be punished with fine which may extend to five thousand rupees, and every officer of the company who is in default, shall be liable to be punished with imprisonment for a term which may extend to three years, or with the fine which may extend to five thousand rupees, or with both. Cost Audit Branch of the Ministry of Corporate Affairs Government of India has the following: Cost Audit Branch under the Ministry of Corporate Affairs is manned by professionals drawn from the Indian Cost Accounts Service (ICAS) and primarily deals with sections 209 (1) (d) and 233B of the Companies Act, 1956.

The Branch, under section 209 (1) (d) formulates & notifies Cost Accounting Records Rules (CARRs) for various industries. Such rules prescribe the manner in which cost records are to be maintained by specified class of companies. The Branch also undertakes rationalization of existing CARRs to reflect the changes in technology, manufacturing processes and accounting standards.

Under section 233B, orders are issued to individual companies for conducting cost audit of cost records in accordance to Cost Audit Report Rules from a Cost Auditor appointed by the Board of Directors with the prior approval of the Ministry.

To view/download full text of section 209 (1) (d), click here.

To view/download full text of section 233B, click here.

* Scope of Functions * Cost Accounting Record Rules (CARRs) * Cost Audit Report Rules * General Guidelines for appointment of Cost Auditors and for Exemption/Withdrawal of Cost Audit Orders * Frequently Asked Questions (FAQs) * CAB Directory * Disclaimer * Cost Audit Orders issued under Section 233B

Scope Of Functions

Cost Audit Branch (CAB) under the Ministry of Corporate Affairs performs the following functions:

1. Matters falling under section 209 (1) (d) of the Companies Act, 1956:

* Prescription of Cost Accounting Records Rules in respect of various industries / products. * Rationalization of existing Cost Accounting Record Rules to reflect the changes in technology, manufacturing processes and accounting standards. * Holding of meeting of the Informal Advisory Committee, which includes all the three professional Institutes (ICAI, ICSI, and ICWAI), Tariff Commission and Ministry of Finance, Industry Associations, etc. for finalization of new Rules and amendments in the existing Rules. * Laying the notified rules in both Houses of Parliament after legal vetting and publication in the Gazette.

2. Matters falling under section 233B of the Companies Act, 1956:

* Prescription of Cost Audit Report Rules, including review and rationalisation of the existing ones. * Issue of Cost Audit Orders on eligible companies. * Processing of applications (Form 23C) for approval of appointment of Cost Auditors. * Processing of requests for exemption/withdrawal of Cost Audit Orders. * Receipt and review of Cost Audit Reports. * Providing Cost Audit Reports and other information/analytical data to other Government departments/organizations/agencies, as and when required. * Monitoring of compliance with the provisions of Section 209 (1) (d) and Section 233B of the Companies Act, 1956 and issue of show cause notices to defaulting companies. * Initiating prosecution proceedings against the errant companies for defaults/violations by referring the matter to the concerned Registrar of Companies. * Initiating action against the errant Cost Auditors under Section 224 and Section 233B of the Companies Act, 1956.

3. To carry-out data mining and industry-wise economic analysis of all industries/sectors. 4. Inspection of companies under Section 209A (1) of the Companies Act. 5. Providing expert opinion on various matters as referred to Cost Audit Branch. 6. Attending to all Court and Parliament matters relating to Cost Audit Branch. Top

Cost Accounting Record Rules (CARRs)

In exercise of the powers conferred by sub-section (1) of section 642, read with clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, Central Government has prescribed Cost Accounting Record Rules for various industries and products. All companies engaged in production, processing, manufacturing or mining activities, in respect of industries or products specified in the Cost Accounting Record Rules, as applicable, are required to keep at its registered office proper books of account relating to utilisation of material or labour or to other items of cost as prescribed under the said Rules.

These rules do not apply to a company, -

1. wherein, the aggregate value of machinery and plant installed as on the last date of the preceding financial year, does not exceed the limit as specified for a small scale industrial undertaking under the provisions of Industries (Development and Regulation) Act, 1951 (65 of 1951); and 2. the aggregate value of the turnover made by the company from sale or supply of all its products or activities during the preceding financial year does not exceed ten crores of rupees.

To view/download full list of industries and products covered under section 209 (1) (d) of the Companies Act, 1956 and to view/download full text of each Cost Accounting Record Rules, Rules, click here. Top

Cost Audit Report Rules

In exercise of the powers conferred by sub-section (4) of section 233B, read with sub-section (1) of section 227 and clause (b) of sub-section (1) of section 642 of the Companies Act, 1956, Central Government has notified Cost Audit Report Rules from time to time. In supersession of the Cost Audit (Report) Rules, 1996, Cost Audit Report Rules, 2001 were notified vide G.S.R. 924(E) dated 27 th December 2001. These rules were further amended in the year 2006 vide The Cost Audit Report (Amendment) Rules, 2006.

Cost Audit Reports are required to be e-filed for every financial year within 180 days from the date of close of its financial year.

To view/download full text of Cost Audit Report Rules, 2001 and the Cost Audit Report (Amendment) Rules, 2006, click here. Top

General Guidelines

FOR APPOINTMENT OF COST AUDITORS:

* Forms Required

Application for obtaining prior approval for appointment of Cost Auditors, in Form 23C as per proforma prescribed by the Companies (Central Governments) General Rules and Forms, 1956 has to be e-filed along with prescribed fees and other documents, for every financial year within 45 days from the date of commencement of its financial year. All the relevant information and guidelines in this regards is available in the MCA portal.

To view/download Form 23C, click here.

* Fees

Section 637A of the Companies Act, 1956 empowers the Central Government to accord approval, etc., subject to conditions and to prescribe fees on applications. Sub section 2 of Section 637A, inter alia, provides that every application, which may be made to the Central Government under any provisions of this Act, shall be accompanied by such fee as may be prescribed.

Vide Notification No. GSR 501 (E) dated 6.7.1999 read with Notification No. GSR 578 (E) dated 5.8.1999, the Ministry of Law, Justice & Company Affairs (Department of Company Affairs) has prescribed the application fee as under.

A 	B 	C Company having an authorized capital of 	Less than Rs.25 lakh 	Rs.25 lakh or more but less than Rs.5 Crores 	Rs.5 Crores or more Amount of fees to be paid 	Rs.500 	Rs.1000 	Rs.2000

* Check List * Duly Filled in Form 23C * Challan G.S.R. 7 for requisite fees * Boards Resolution effecting appointment of Cost Auditor * Certificate from Cost Auditor under section 224 of Companies Act.

FOR EXEMPTION FROM COST AUDIT ORDERS:

The exemption from Cost Audit on year-to-year basis is granted in situations arising out of temporary closure of the company and/or its manufacturing facilities, negligible production/activity, etc. Applications for seeking exemption are required to be made to the Central Government, along with fee, as prescribed above. The fee for each year for which approval for exemption is sought may be remitted through demand draft drawn in favour of Pay and Accounts Officer, Ministry of Corporate Affairs, payable at New Delhi. Following documents are required to be furnished along with application for exemption:

* Printed or attested true copy of complete Annual Report containing balance sheet and profit and loss account for the year for which exemption is being sought along with copies of the same pertaining to preceding two years. * An affidavit containing full facts of capacity utilization, turnover and financial status of the company such as sick or not, duly signed by two Directors of the company and authenticated by a Notary Public. * A brief note/status report on steps taken by the management for revival of the company and/or the said unit.

FOR WITHDRAWAL OF COST AUDIT ORDERS:

The withdrawal of Cost Audit is considered in case of permanent closure or sale or merger/amalgamation of production activities for the product under reference. Following documents are required to be furnished along with application for withdrawal:

* Printed or attested true copy of complete Annual Report containing balance sheet and profit and loss account for the year for which exemption is being sought along with copies of the same pertaining to preceding two years. * An affidavit containing full facts of capacity utilization, turnover and financial status of the company such as sick or not, duly signed by two Directors of the company and authenticated by a Notary Public. * A brief note / status report on steps taken by the management for revival of the company and/or the said unit. * Documentary evidences substantiating closure/winding-up, sale, merger, amalgamation, etc. e.g. Courts order, surrender of licenses, sale of plant and machinery, power disconnection, manpower reduction, etc.

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Frequently Asked Questions

* What is CARR?

Reply: In exercise of the powers conferred by section 642 (1) read with section 209 (1) (d) of the Companies Act, 1956, the Central Government is prescribes Cost Accounting Record Rules for the maintenance of cost records for various industries/products.

* What does it contain?

Reply: It contains the particulars relating to utilisation of material or labour or other item of cost as may be prescribed to include such details in the books of accounts. The broad categories under which the detailed cost records are required are materials, labour, utilities, overheads, depreciation, royalty/technical know-how, research & development expenses, incentives on exports, interest and other borrowing costs, captive consumption, pollution control, inter-company transaction etc. It also contains various proformae to enable the industry to calculate the cost of production and cost of sales effectively.

* To whom are they applicable?

Reply: They are applicable to the companies pertaining to any class of companies engaged in the production, processing, manufacturing or mining activities except the small scale industries having their total turnover less than rupees ten crores.

* What are the objectives for framing CARR?

Reply: The Cost Accounting Record Rules are sincere efforts to induce the companies to have control over their operations and costs with a view to achieve optimum economics in utilization of resources. These Rules inculcate a system so that such records are maintained under generally accepted cost accounting principles in a systematic way and on a uniform basis among the various companies of an industry. In the absence of any common prescribed Rules, the cost calculated by different companies may not be comparable due to usage of different methods, procedures and practices adopted by various accountants. The cost accounting record rules form the vary basis for compilation of cost audit reports.

* What is the criterion for selection of an industry/product?

Reply: Industries covered are selected considering the various factors such as, consumer products and services, products of mass consumption, items crucial for infrastructure development, products where substantial subsidies are granted by government, inputs required by various regulatory authorities on the basis of economic conditions, need to protect the government revenue, etc.

* How many CARRs have been notified so far?

Reply: Ministry of Corporate Affairs has so far prescribed 44 Cost Accounting Record Rules for the maintenance of cost records in various industries/products.

* Are these Rules modified keeping in pace with technological changes or socio economic needs?

Reply: Yes, the simplification and rationalisation of the existing Cost Accounting Record Rules is done due to the changes in the technological processes over a period of time and perceptional shift in accounting methods and techniques.

* How does it differ from the Financial Accounts?

Reply: Under financial accounts, every company is required to maintain the books of accounts under section 209 of the Companies Act, 1956 for all sums of money received and expended by the company, sales and purchases of goods and details of assets and liabilities. This is required to enable the determination of financial status and total profit or loss of the company for the particular period. In cost accounts, the cost records are maintained under section 209 (1) (d) of the Companies Act, 1956 to ascertain the amount incurred on materials, labour and all other heads of expenditure to ascertain the actual cost of the individual product produced or service rendered by the company. Cost Accounting Standards: Resources Cost Accounting Standards CAS No 	Title 	Objective 	Useful for CAS1(Final) 	Classification of Cost 	For preparation of Cost Statements Assessment of excise duty and other taxes, anti-dumping measures, transfer pricing etc. CAS2(Final) 	Capacity Determination 	For determination of capacity Proper allocation, apportionment and absorption of cost. CAS3(Final) 	Overheads

For Collection, Allocation, Apportionment and Absorption of overheads Determining Cost of products, services or activities CAS4(Final) 	Cost of Production for Captive Consumption 	To determine the assessable value of excisable goods used for captive consumption. Determining Cost of products, services or activities CAS5(Final) 	Average (equalized) Cost of Transportation 	To determine averaged/equalized transportation cost 	Calculating the amount of deduction from assessable value of excisable goods, freight subsidy, Insurance claim valuation, etc CAS6(Final) 	Material Cost 	To bring uniformity and consistency in the principles and methods of determining the material cost with reasonable accuracy in an economically feasible manner. Applicable to all cost statements which require measurement, assignment,  classification   and presentation of material costs. To be followed in all cost statements requiring assurance including attestation. CAS7(Final) 	Employee Cost 	To bring uniformity and consistency in the principles and methods of determining the Employee cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Employee cost including those requiring attestation CAS8(Final) 	Cost of Utilities 	To bring uniformity and consistency in the principles and methods of determining the Cost of Utilities with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Cost of Utilities including those requiring attestation CAS9(Final) 	Packing Material Cost 	To bring uniformity and consistency in the principles and methods of determining the Packing Material Cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Packing Material Cost including those requiring attestation CAS10(Final) 	Direct Expenses 	To bring uniformity and consistency in the principles and methods of determining the Direct Expenses with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Direct Expenses including those requiring attestation CAS11 (Final) 	Administrative Overheads 	To bring uniformity and consistency in the principles and methods of determining the Administrative Overheads with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Administrative Overheads including those requiring attestation CAS12 (Final) 	Repairs And Maintenance Cost 	To bring uniformity and consistency in the principles and methods of determining the Repairs and Maintenance Cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Repairs and Maintenance Cost including those requiring attestation

Cost Accounting Standards Board: PREFACE TO COST ACCOUNTING STANDARD BOARD 1. Introduction Due to open competition for globalization, the Cost Management has gained special importance in the business activities. Cost Accounting Standard Board ( hereinafter called CASB) set up by the Council of the Institute of Cost and Works Accountants of India ( ICWAI ) and following statements are issued to define the objectives, operating procedures, scope and applicability and authority of CASB. 2. Constitution 2.1 The CASB will have a Chairman as appointed and nominated by the Council of the Institute and other members will also be appointed and nominated by the Council. 2.2 The terms and period of appointment will also be decided by the council of the Institute. 2.3 The Director( Technical ) will be the Secretary of the CASB. 2.4 The CASB will prepare a report of its work each year and send it to the Council. 3. Objective The work of CASB is to develop Cost Accounting Standard on important issues/topics relating to Cost and Management Accounting with the following objectives : 3.1 To equip the profession with better guidelines on standard cost accounting practices 2 3.2 To assist the Cost Accountants in preparation of uniform cost statements 3.3 To provide guidelines to Cost Accountants to make standard approach towards maintenance of Cost Accounting Record Rules and Undertaking Cost Audit under section 209 (1) (d) and section 233B of Companies Law respective and various other Acts like Income Tax Act, Central Excise Act, Customs Act, Sales Tax Act, etc. 3.4 To assist the management to follow the standard cost accounting practices in the matter of compliance of statutory obligations. 3.5 To help Indian industry and the Government towards better cost management 4. Operating Procedure and policies of CASB 4.1 Organizing and initiating discussion and deliberation at national level to identify the areas/topics in respect of which needs for standards are felt 4.2 Generating information on all alternative cost accounting practices in respect of selected practices 4.3 Preparation of draft on the standard cost accounting practices in respect of chosen areas/topic in cost accounting and circulate it to the members of the Institute, national accounting institute and other end user bodies like industry association, Chambers of Commerce and Industry, Government bodies etc 4.4 Allowing sufficient time for consideration and comments on the exposure draft 4.5 Pronouncement of the exposure draft as ‘standard’ after giving due consideration to the suggestions and modification generated on the circulated exposure drafts from such individuals and agencies as mentioned in 4..3 above. 4.6 To fix a date for the standard to be effective 3 4.7 To propagate and generate acceptance and commitment to follow the ‘standards’ prescribed by CASB 4.8 To revise the ‘standards’ once issued, if dictated by environment, government, legal authority and other situation. 5. Scope and Applicability 5.1 The ‘standards’ issued by CASB will be recommendatory in nature and every member of the institute is expected to honour the same. 5.2 A standards will always make sure that it complies with the legal regulations in respect of the matter covered by it. However, a standard by its vary nature will have to be more definite and specific than its legal requirements. 5.3 Any limitation in application of a ‘standard’ in specific circumstances must be spelt out in the ‘standard’ itself. 5.4 Every standard will broadly have two parts – (a) explanatory part and (b) the operative part. The explanatory section will set out topic covered, the premises, the need for standardization and methodology and rationale for practice recommended. The second part, the operative portion will be the definite direction on the matter. 5.5 Every standard will indicate the date from which it will be operative. 5.6 The standards will be applicable to preparation of cost statements and other documents where the concepts embedded in the standard will be applicable. 5.7 As far as maintenance of cost accounting record rules under section 209 (1) (d) is concerned, relevant matter covered under the standards , wherever applicable, will be followed. 5.8 Cost Auditors will adopt and encourage the adoption of the standards, wherever applicable, in maintenance of Cost Accounting Record Rules under section 209(1)(d) and report the deviations, if any, in the Cost Audit Reports under section 233B. 5.9 The Institute will take up the standards with National Accounting Standard Board to enforce them and to include in Companies Act, 1956. 6. Authority attaching to the standard 6.1 So long the standards are not enforced by National Accounting Standard Board or by Companies Act, the CASB does not possess the legal authority to impose its views as statutory regulations but it is by only persuasion the standard can be followed as normal practice by the members of the profession 6.2 ICWAI will be duty bound to protect its members who respect and adhere to the standard prescribed. 6.3 Disciplinary restriction may be imposed by the Council of the Institute at appropriate stages as may be felt necessary for not complying with or not honouring the standard

Resources Cost Accounting Standards CAS No 	Title 	Objective 	Useful for CAS1(Final) 	Classification of Cost 	For preparation of Cost Statements Assessment of excise duty and other taxes, anti-dumping measures, transfer pricing etc. CAS2(Final) 	Capacity Determination 	For determination of capacity Proper allocation, apportionment and absorption of cost. CAS3(Final) 	Overheads

For Collection, Allocation, Apportionment and Absorption of overheads Determining Cost of products, services or activities CAS4(Final) 	Cost of Production for Captive Consumption 	To determine the assessable value of excisable goods used for captive consumption. Determining Cost of products, services or activities CAS5(Final) 	Average (equalized) Cost of Transportation 	To determine averaged/equalized transportation cost 	Calculating the amount of deduction from assessable value of excisable goods, freight subsidy, Insurance claim valuation, etc CAS6(Final) 	Material Cost 	To bring uniformity and consistency in the principles and methods of determining the material cost with reasonable accuracy in an economically feasible manner. Applicable to all cost statements which require measurement, assignment,  classification   and presentation of material costs. To be followed in all cost statements requiring assurance including attestation. CAS7(Final) 	Employee Cost 	To bring uniformity and consistency in the principles and methods of determining the Employee cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Employee cost including those requiring attestation CAS8(Final) 	Cost of Utilities 	To bring uniformity and consistency in the principles and methods of determining the Cost of Utilities with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Cost of Utilities including those requiring attestation CAS9(Final) 	Packing Material Cost 	To bring uniformity and consistency in the principles and methods of determining the Packing Material Cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Packing Material Cost including those requiring attestation CAS10(Final) 	Direct Expenses 	To bring uniformity and consistency in the principles and methods of determining the Direct Expenses with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Direct Expenses including those requiring attestation CAS11 (Final) 	Administrative Overheads 	To bring uniformity and consistency in the principles and methods of determining the Administrative Overheads with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Administrative Overheads including those requiring attestation CAS12 (Final) 	Repairs And Maintenance Cost 	To bring uniformity and consistency in the principles and methods of determining the Repairs and Maintenance Cost with reasonable accuracy. Applicable to cost statements which require classification, measurement, assignment, presentation and disclosure of Repairs and Maintenance Cost including those requiring attestation