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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART SECTION MINISTRY OF CORPORATE AFFAIRS Notification New Delhi dated the 7 G.S.R. 869 (E). with clause (d) of sub in super session of the Cost Accounting Records (Telecommunications) Rules, 2002 vide G.S.R. 689(E), dated the 8 done before such supersession, the Central Government hereby makes the following rules, namely: 1. Records (Telecommunication Industry) Rules, 2011. (2) They shall come into force on the date of their publication in the Official Gazette. 2. (a) (b) by a cost accountant in the specified form of compliance report; (c) defined in clause (b) of sub Accountants Act, 1959 (23 of 1959) and who is either a permanent employee of the company or holds a valid certificate of practice under sub section 6 and who is deemed to be in practice under sub that Act and includes a firm of cost accountants; (d) “Cost Accounting Standards” means the standards of cost accounting, issued by the Institute; (e) “cost records” means books of account relating to utilization of materials, labour and other items of cost as applicable to the production, processing, manufacturing or mining activities of the company; (f) “Form other documents with the Central Government in the electronic mode; (g) “Form compliance report; (h) “Generally Accepted Cost Accounting Principles” means the principles of cost accounting issued by the Institute; ‐ (i) “Institute” means the Institute of Cost and Works Accountants of India constituted under the Cost and Works Accountants Act, 1959 (23 of 1959); (j) “product” means any tangible or intangible good, material, substance, article, idea, know human, mechanical, industrial, chemical, or natural act, process, procedure, function, operation, technique, or treatment and is intended for use, consumption, sale, transport, store, delivery or disposal; (k) “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 characteristics and common unit of measurement, and having same or similar usage or application; and in relation to intangible products means a group of homogenous and alike products or services, produced by using similar or same process or inputs, having similar characteristics and common unit of measurement, and having same or similar usage or application; (l) “telecommunication activities” means any act, process, procedure, function, operation, technique, treatment or method employed in relation to telecasting, broadcasting, telecommunicating voice, text, picture, information, data or knowledge through any mode or medium and includes intermediate and allied activities thereof and these activities would, inter alia, include the following services or activities, including such services that require license or registration with the Ministry of Communications and Information Technology, Government of India, namely: (i) Basic Telephone Services; (ii) National Long Distance Services; (iii) International Long Distance Services; (iv) Cellular Mobile Telephone Services; (v) Wireless Local Loop (WLL) (Fixed or Mobile) Telephone Services; (vi) Very Small Aperture Terminal Services; (vii) Public Mobile Radio Trunk Services; (viii) Global Mobile Personal Communication Services; (ix) Internet or Broadband or Wireless Access service; (x) Infrastructure Provider (IP (xi) Passive Telecom Infrastructure including Telecom Tower Facilities; (xii) Cable Landing Stations; and (xiii) Any other related, allied, intermediate or support services in relation to telecommunication activities not indicated above. (m) “turnover” means total turnover made by the company from the sale or supply of all products or services during the financial year and it includes any turnover from job work or loan license operations and the subsidies or grants or incentives received but does not include any non ‐ (n) all other words and expressions used in these rules but not defined, and defined in the Act and rules made under clause (d) of sub Act shall have the same meanings as assigned to them in the Act or rules, as the case may be. 3. defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or rendering of telecommunication activities and wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crores of rupees; or wherein the aggregate value of the turnover made 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 the company’s equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India: Provided that these rules shall not apply to a body corporate governed by any special Act. 4. units and branches thereof shall, in respect of each of its financial year commencing on or after the date of this notification, keep cost records and the books of account so maintained shall contain, inter mentioned in the Schedule annexed to these rules. (2) The cost records referred to in sub manner so as to make it possible to calculate per unit cost of production 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 half (3) The cost records shall be maintained in accordance with the generally accepted cost accounting principles and cost accounting standards issued by the Institute; to the extent these are found to be relevant and applicable and the variations, if any, shall be clearly indicated and explained. (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 required to be furnished under these rules. (5) All such cost records and cost statements, maintained under these rules shall be reconciled with the audited financial statements for the financial year specifically indicating expenses or incomes not considered in the cost records 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, shall be clearly indicated and explained. ‐ (6) All such cost records, cost statements and reconciliation statements, maintained under these rules, immediately preceding a financial year or where the company had been in existence for a period less than eight years, in respect of all the preceding years shall be kept in good order. (7) Every person, referred to in sub 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 manner as he is liable to maintain accounts required under sub section 209 of the said Act. 5. submit a compliance report, in respect of each of its financial year commencing on or after the date of this notification, duly certified by a Cost Accountant, along with the Annexure to the Central Government, in the specified form. 6. compliance report referred to in rule 5 to the Central Government within a period of one hundred and eighty compliance report relates. 7. 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. provisions of these rules, he shall be punishable with fine, which may extend to five thousand rupees. (2) For contravention of these rules, (a) the company shall be punishable as provided under sub 642 of the Act; and (b) every officer thereof who is in default, including the persons referred to in sub under sub 1956). 9. 2002, shall not in any way affect (a) any right, obligation or liabilities acquired, accrued or incurred thereunder; (b) any penalty, forfeiture or punishment incurred in respect of any contravention committed thereunder; and (c) Any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and; any such investigation, legal proceeding or remedy may be instituted, ‐ continued or enforced and any such penalty, forfeiture or punishment may be imposed as if those rules had not been superseded. ‐ FORM with the Central Government [Pursuant to section 209(1)(d), 600(3)(b) of the Companies Act, 1956 and rule 2 of the Cost Accounting Records (Telecommunication Industry) Rules, 2011] PART I Note: All fields marked in * are to be mandatorily filled. 1 (a) *Corporate identity number (CIN) or foreign company registration number of the company Pre (b) Global location number (GLN) of company 2 (a) *Name of the company (b) *Address of the registered office or of the principal place of business in India of the company (c) *E 3 (a) *Financial year covered by the compliance report From (DD/MM/YYYY) To (DD/MM/YYYY) (b) *Date of Board of directors’ meeting in which annexure to the compliance report was approved (DD/MM/YYYY) 4. (a) *Category of the cost accountant Individual Cost accountant’s firm (b) In case of individual, whether the cost accountant is in permanent employment of the company or in practice In Employment In Practice (c) *Name of the cost accountant or the cost accountant’s firm who has certified the cost records of the company (d) *Income tax permanent account number of the cost accountant or the cost ‐ accountant’s firm (e) *Membership number of cost accountant or cost accountant’s firm’s registration number (f) Address of the cost accountant or cost accountant’s firm (i) Line I Line II (ii) City (iii) State (iv) Country (v) Pin Code (g) *E cost accountant’s firm 5. S. Net Sales No. Name of the Product or Service Group Unit Annual Production (Quantity) (Quantity) (Value in Rupees) A Produced or Manufactured Product Groups 1. 2. 3. etc. B Services Groups 1. 2. 3. etc. C Trading Activities (Product Group 1. 2. 3. etc. D Other Income Total Income as per Financial Accounts PART Attachments: 1 Compliance report as per the Cost Accounting Records (Telecommunication Industry) Rules, 2011. Attach 2 Optional attachments(s) – if any List of attachments Remove attachment Verification: To the best of my knowledge and belief, the information given in this form and its attachments is correct and complete. I have been authorized by the Board of directors’ resolution number dated (DD/MM/YYYY) To sign and submit this form. I am authorized to sign and submit this form. To be digitally signed by: Managing Director or director or manager or secretary (in case of an Indian company) or an authorized representative (in case of a foreign company) Digital Signatures *Designation *Director identification number of the director or Managing Director; or Income the manager or of authorized representative; or Membership number, if applicable or income quote his/her income Director of the company Digital Signatures Director identification number of the director Modify Check Form Pre This e basis of statement of correctness given by the filing company ‐ FORM FORM OF COMPLIANCE REPORT [See rule 2, and rule 5] 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 (Telecommunication Industry) Rules, 2011 of …........................................................... (mention name of the company) (mention registered office address of the company) examined the books of account prescribed under clause (d) of sub said Act, and other relevant records for the period/year ............................. year) 1 I or We have or have not obtained all the information and explanations, which to the best of my or our knowledge and belief were necessary for the purpose of this compliance report. 2 In my or our opinion, proper cost records, as per the Cost Accounting Records (Telecommunication Industry) Rules, 2011 prescribed under clause (d) of sub section 209 of the Companies Act, 1956, have or have not been maintained by the company so as to give a true and fair view of the cost of production or operation, cost of sales and margin of all the products and activities of the company. 3 Detailed unit respect of the product groups or activities are or are not kept in the company. 4 In my or our opinion, the said books and records give or do not give the information required by the Companies Act, 1956 in the manner so required. 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 Institute of Cost and Works Accountants of India, to the extent these are found to be relevant and applicable. Dated: this ____ day of _________ 20__ at _________________ ( signing this report SIGNATURE AND SEAL OF THE COST ACCOUNTANT (S) MEMBERSHIP NUMBER (S) ‐ NOTES: (i) Delete words not applicable. (ii) If as a result of the examination of the books of account, the cost accountant desires to point out any material deficiency or give a qualified report, he shall indicate the same against the relevant para. (iii) Briefly give your observations and suggestions, if any, relevant to the maintenance of cost accounting records by the company. (iv) Cost accountant may use separate sheet(s) for (ii) and (iii) above, if required. ANNEXURE TO THE COMPLIANCE REPORT [See rule 2 and rule 5] 1. GENERAL: a) Name of the company: b) Registered office address: c) Financial year to which the Compliance Report relates. 2. QUANTITATIVE INFORMATION: Sno. Name of the Product or Service Net Sales Group Unit Annual Production (Qty.) (Qty.) (Value in Rupees) A Produced or Manufactured Product Groups 1. 2. 3. etc. B Services Groups 1. 2. 3. etc. C Trading Activities (Product Groupwise) 1. 2. 3. etc. D Other Income Total Income as per Financial Accounts ‐ 3. RECONCILIATION STATEMENT: Net Margin (Profit or Loss) as per Cost Accounts (In Rupees) A. From Produced or Manufactured Product Groups B. From Services Groups C. From Trading Activities Total as per Cost Accounts Add: Incomes not considered in Cost Accounts (if any) Less: Expenses not considered in Cost Accounts (if any) Add/Less: Difference in Stock Valuation Profit or (Loss) as per Financial Accounts NOTES: (i) For produced or manufactured product groups, use the nomenclature as used in the Central Excise Act or Rules, as applicable. (ii) For services groups, use the nomenclature as used in the Finance Act or Central Service Tax Rules, as applicable. SIGNATURE NAME COST ACCOUNTANT (S) MEMBERSHIP NUMBER (S) SEAL DATE "SCHEDULE” [See rule 4] PROFORMA ‘A’ Service Name of the Company: Name of Service: ‐ Licensed Area (if any) Period: (Rs. in Lacs) Particulars Current Year Previous Year Revenue (Net of Taxes) Sales or Services Advertisement Content Sale Rentals Others (specify) Total Revenue A. Employee cost: Salaries, Wages, Incentives and Allowances Contribution to Provident fund etc. Staff Welfare Expenses Medical Expenses Training and Recruitment Others Sub B. Administration cost: Rent (Other then Switching and Cell sites rent) Rates and taxes Insurance charges (Other than Network Elements) Communication costs Electricity Traveling and conveyance expenses Legal and professional charges Printing and Stationary Audit fees Maintenance �� �� Outsourcing Charges �� �� Others Sub ‐ Particulars Current Year Previous Year C. Sales and Marketing cost: Advertisement and sales promotion expenses Sales commission and Incentive Provision for bad and doubtful debts Bad debts write off Outsourcing Charges for customer care services Others Sub D. Government charges: License fee License fee penalty, if any WPC Charges �� �� Others Sub E. Depreciation: Buildings Plant and Machinery Others Sub F. Leased Rentals: Equipment Real estate IT related services Customer Care Others Sub G. Network Operating cost : Leased Circuits and Gateway Charges Royalty or Fee for technical know how Switching and Cell sites rent Installation Charges Maintenance Charges (New Elements) Network Consumables and spares Power and fuel Interconnection: a) Pass Through Charges ‐ Particulars Current Year Previous Year b) Port charges c) Others Passive Infrastructure Charges Insurance Charges (Network Elements) Outsourcing Charges Others Sub H. Other Cost: Corporate office expenses Common cost Loss on sale of fixed assets (net) Others Sub I. Finance charges: Interest Bank charges Others Sub Total Cost (A to I) Profit or (loss) before tax Total Capital Employed Return on Capital Employed (%) Return on Turnover (%) PROFORMA ‘B’ Product or Network Service Name of the Company: _______________________________________ Name of Service: ____________________________________________ Licensed Area (if any): _____________________________________________ Period: ___________________________ (Rs. In Lacs) Particulars Products or Network Services against each service ‐ A B C etc. Total Revenue (Net of Taxes) Sales or Services Advertisement Content Sale Rentals Others Total Revenue (I) Direct Cost: A. Employee cost: Salaries, Wages, Incentives and Allowances Contribution to Provident fund etc. Staff Welfare Expenses Medical Expenses Training and Recruitment Others Sub B. Administration cost: Rent (Other then Switching and Cell sites rent) Rates and taxes Insurance charges (Other than Network Elements) Communication costs Electricity Traveling and conveyance expenses Legal and professional charges Printing and Stationary Audit fees Maintenance �� �� Outsourcing Charges �� �� Others ‐ Particulars Products or Network Services against each service A B C etc. Total Sub C. Sales and Marketing cost: Advertisement and Sales promotion expenses Sales commission and Incentive Provision for bad and doubtful debts Bad debts write off Outsourcing Charges for customer care services Others Sub D. Government charges: License fee License fee penalty, if any Expenses on amortization (one time entry fee ) WPC Charges �� �� Others Sub E. Depreciation: Buildings Plant and Machinery Others Sub F. Leased Rentals: Equipment Real estate IT related services Customer Care Others Sub Total Direct Cost (A+B+C+D+E+F) (II) Network Element Operating cost (as per ‐ Particulars Products or Network Services against each service A B C etc. Total Proforma “C” ) X Y Z Etc Total Network Element Operating Cost (II) (III) Support Function or Department Cost ( as per Proforma “D2”) Total Support Function or Department Cost (III) Total (I) + ( II) + (III) Capital Employed ( as per Proforma F) Return on Capital Employed (%) Return on Turnover (%) PROFORMA 'C' Cost Sheet Name of the Company: _______________________________________ Name of Service: ____________________________________________ Licensed Area (if any): ______________________________________________ Period: _____________________________ (Rs. In Lacs) Particulars Network Elements X Y Z etc Total (I) Network Direct Cost: ‐ Particulars Network Elements X Y Z etc Total A. Employee cost: Salaries, Wages, Incentives and Allowances Contribution to Provident fund etc. Staff Welfare Expenses Medical Expenses Training and Recruitment Others Sub B. Administration cost: Rent (Other then Switching and Cell sites rent) Rates and taxes Insurance charges (Other than Network Elements) Communication costs Electricity Traveling and conveyance expenses Legal and professional charges Printing and Stationary Audit fees Maintenance Building Others Outsourcing Charges Billing Services Other administrative activities Others Sub C. Network Operating cost: Leased Circuits and Gateway Charges Royalty or Fee for technical know how Rent (Network elements equipments and cell sites) Power and fuel Interconnection: i) Port charges ‐ Particulars Network Elements X Y Z etc Total ii) Others Passive Infrastructure Charges Outsourcing Charges for network element equipments Others Sub D Government charges: WPC Charges – DOT ( other than on revenue sharing) Paid to Government agencies other than DOT Sub E Depreciation Building Plant and Machinery Others Sub F Leased Rentals Equipment Real Estate Others Sub G Total Network Direct Cost ( A+B+C+D+E+F) H. Support Function cost as per Proforma E Sub Total H Total (G+H) ‐ * Apportionment of Support Functions to various Services (For PROFORMA ‘D2’) (Rs. In Lacs) ‐ Support Function or Department Cost Basis of Apportionment to Sub specify Service 1 Service 2 Service 3 Service 4 etc Total Administration Billing Branch Office Corporate Office Customer Care Finance & Accounts HR Insurance IT or EDP Legal or Regulatory Maintenance Marketing and Sales Planning and Development Quality Stores or Logistics Total ‐ PROFORMA ‘D2’ Apportionment of Support Functions to various Products (For PROFORMA ‘B’) (Rs. In Lacs) Service from Proforma D 1 Service from Proforma D1 Support Function or Department Cost Basis of Total subsequent apportionment to Products specify Product 1 Product 2 etc Product 1 Product 2 etc Administration Billing Branch Office Corporate Office Customer Care Finance & Accounts HR Insurance IT or EDP Legal or Regulatory Maintenance Marketing and Sales Planning and Development Quality Stores or Logistics Total ‐ PROFORMA 'E' Statement of CAPITAL EMPLOYED Name of the Company: _______________________________________ Name of Service: ____________________________________________ Licensed Area (if any): ______________________________________________ Period: _____________________________ (Rs. In Lacs) Network Elements Particulars Total X Y Z Etc. Fixed Assets – (Gross Book Value) Tangible Assets Land Building Plant and Machinery Computers Office equipment Furniture and fixtures Vehicles Others Intangible Assets License Patents or technical know how Total fixed assets Less : Accumulated depreciation Net Book Value (I) Capital Work Current Assets Inventories Cash and bank balance Debtors Loans and advances Others Sub total Current Liabilities Sundry creditors Other Liabilities Provisions, etc. Security deposit ‐ Network Elements Particulars Total X Y Z Etc. Advance Rentals and Prepaid Card Revenue Sub total Net Working Capital (III) Total Capital Employed (I+II+III) PROFORMA – ‘F’ Statement of Allocation or Apportionment of Capital Employed to Products or Network Services Name of the Company: _______________________________________ Name of Service: ____________________________________________ Licensed Area (if any): ______________________________________________ Period: _____________________________ (Rs. In Lacs) Particulars Products or Network Services A B C Etc Total (a) Network element wise Capital Employed Radio Network: X Y Z Etc Subtotal ( A) (b) Support Function or Departments Administration Billing Branch Office Corporate Office Customer Care Finance and Accounts HR Insurance IT or EDP Legal or Regulatory ‐ Particulars Products or Network Services A B C Etc Total Maintenance Marketing and Sales Planning and Development Quality Stores or Logistics Any Other Item (Specify) Subtotal (b) Total (a + b) PROFORMA – ‘G’ Profit and Loss Reconciliation Statement Name of the Company: _______________________________________ Period: _____________________________ (Rs. in Lacs) Particulars Revenue Cost Net Profit or (Loss) Service 1 Service 2 Service 3 Etc. Total Adjustments: Return on capital employed on network elements Non regulated business Elimination of inter business transactions Non relevant items: − − − − − − ‐ Particulars Revenue Cost Net Profit or (Loss) − fire or theft etc. − Unallocated items Any other items (specify) Sub Total Total as per Audited Accounts PROFORMA – ‘H’ Capital Employed Reconciliation Statement Name of the Company: _______________________________________ Period: _____________________________ (Rs. in Lacs) Item Capital employed Service 1 Service 2 Service 3 Etc. Total Adjustments: For non regulated business Elimination of inter business assets or liabilities Non relevant items − − − − − − − (i) Unallocated items (ii) Any other items (specify) Sub total (B) Total as per audited accounts (A ‐ Notes: 1. Separate Proforma shall be prepared for each service or product and network elements in the Proforma prescribed for each area of operation or circle or licensed. 2. The cost shall be allocated or apportioned product wise as specified in appendix as far as possible 3. Proper record shall be maintained explaining the basis of allocation or apportionment for various elements of cost in respect of product or service or network elements & supporting functions. 4. The items of the cost shown in the Proforma are indicative and same shall be reflected keeping in mind the materiality of the item of the cost in the service or product or network service or network elements & support functions. 5. Capital Employed means average of net fixed assets (excluding intangible assets, effect of revaluation of fixed assets, and capital work in progress) plus net current assets existing at the beginning and close of the financial year. [F. No. 52/7/CAB B.B.GOYAL Adviser (Cost) |
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The Reserve Bank of India will shortly issue Rs. 2000 denomination banknotes in the Mahatma Gandhi (New) Series, with
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