XBRL Presented By: CMA Malav Dalwadi

Standardisation

XBRL International XBRL International A non profit organization consisting of more than 600 members at the present time Organizational Structure Comprised of local jurisdictions which represent countries regions or international bodies and focus on the progress of XBRL in their areas as well as contributing to international development.

XBRL Around the World

XBRL Projects in India RBI Taxonomy MCA ( C & I Taxonomy) Mandatory XBRL filing of Balance sheet & Profit & Loss A/c to the certain class of companies IND As Taxonomy MCA ( Cost Audit & Cost Compliance Taxonomy) Mandatory to file Cost Audit & Cost Compliance Report in XBRL format RBI Taxonomy Mandatory for banks to file report in XBRL format

XBRL Projects in India SEBI Common Reporting Filing for Stock Exchanges Compliance Reporting BSE NSE MSE

Moving Ahead XBRL International Recognition Formula within Taxonomy iXBRL Format

Cost Audit XBRL

Annexure to Cost Audit Report Part-A General Information, General Details of Cost Auditors, Cost Accounting Policy, Product/Service Details –for the company as a whole.

Product or Service Details CETA Code wrong by users- not taking pain to find correct CETA CETA codes Changes to be Custom Tarrif Act (CTA) Notification number GSS 1526 E dated 20-12-2017 with retrospective effect from 1st July 2017 Last 4 digit – There is not CETA Excise changes to GST Guidance Note 0000

Capacity Measurement Textile Industry Spinning output - Weight – Kgs/ tones Install capacity :- Spindle shifts Capacity Utilisation : Actual measurement of capacity is arrived at by converting actual production to equivalent production by linking conversion factors to arrive at spindle shifts worked

Capacity Measurement Chemical industry Output: Kgs, tones or in terms of volume – Ltrs / Killo Ltrs Installed capacity and utilization shall be Vessel hrs – Killo Ltr – Hrs

Tablets Manufacturing Output of tablets is measured in Nos Tablet manufacturing passes thorough mixing & Granulation, Compression and Packing process having different UOMs for output measurements viz. Kgs or nos (or strips)

QUANTITATIVE INFORMATION For many Industry, where common plant facilities are producing products of different CETA (Earlier Product Groups and now CTA) e.g. Engineering Industry, Chemical Industry etc In nutshell, capacity measurement with reference to product Group/ CETA/ CTA is not correct in many cases.

Moving Ahead Proposals for making this para more value adding for the clients: Separate para for reporting installed Capacity, Capacity utilization Plant-wise. Capacity Shall be reported unit wise and company as whole Institute should come out with industry-wise guidelines for reporting capacities, conversion factors etc.

Annexure to Cost Audit Report Part B - 2 [ABRIDGED COST STATEMENT (for product separately)] Format is ok Guidelines shall be issued for Ind AS issues like Revenue Other Operating revenues Presentation of Employee costs Repairs & maintenance costs Prosed Changes CETA be replaced by HSN A row for no. products under the given HSN group being reported may be added for control purpose In GST era, concept of Value Added under each HSN should brought in. This will certainly enhance value of cost audit reports

Annexure to Cost Audit Report Part C - 1 [QUANTITATIVE INFORMATION (for each Service separately)] Issues: Presentation of Capacity is biggest issue For example in a Construction industry what should be the Capacity for: Township developer Road building contractors where composite contract for road along with overbridged and underpass which will be completed over a period of time. Same issues apply to selection of Unit of Measure In certain service industry stocks – WIP and FG are present Proposed Solution: Introduce Rows/ Column for UOM Remove columns for UOM and add columns for cumulative figures for the given projects Institute & MCA needs to create industry specific Groups of experts with time bound program and come out with guidelines

Format is more or less OK. Annexure to Cost Audit Report Part D - 3 [Value addition and distribution of earnings (company as whole)] Format is more or less OK. We need to deliberated about presentation of this format for providing more meaningful information by introducing more tables for: GSTIN wise of the given company HSN/SAC wise; State wise; and Rate wise This should be done in consultation with GST authorities as required under sect 148(1) of the companies Act, 2013 Guidelines need to be issued for Ind As issues like adjustment for Taxes/duties, Marketing expenses in revenue

Annexure to Cost Audit Report Part D - 5 [Related Party Transactions] Format of current Rules is OK. Insert one column for – HSN /SAC wise & Rate wise?

Annexure to Cost Audit Report Part D - 6 [Reconciliation Of Indirect Taxes] ?

malav@cmadalwadiasso.com (m) 81417 38822 www.cmadalwadiasso.com