28. PROFIT RECONCILIATION. Particular | Current year | 1st prev year | 2nd prev year | 1. Profit or loss as per cost accounting records | | | | 2. Add. Income not considered in cost accounts. | | | | (a) (specify) | | | | (b) | | | | (c) | | | | 3. Less. Expenses not considered in cost accounts. | | | | (a) (specify) | | | | (b) | | | | (c) | | | | 4. Add. Overvaluation of closing stock in financial accounts | | | | Add. Under-valuation of opening stock in financial account | | | | 5. Less. Under-valuation of closing stock in financial account | | | | Less. Over valuation of opening stock in financial accounts | | | | 6. Adjustment for others, If any (specify) | | | | 7. Profit or loss as per financial accounts | | | |
Explanation.- for the purpose of these rules- (a) "CAPITAL EMPLOYED" means average of fixed assets at net book value (excluding intangible assets, effect of revaluation of fixed assets, capital works-in-progress) and current assets minus current liabilities and provisions existing at the beginning and close of the financial year. (b) "NET WORTH" means share capital plus reserve and surplus (Excluding revaluation reserve) less accumulated losses and intangible assets. (c) "PROFIT" means operating profit after providing for depreciation and all other expenses except interest on borrowings including debentures but before providing for taxes on income. (d) "NET SALES" means sales excluding sales returns, excise duties, sales tax, octroi, other local taxes and expenses refundable/recoverable from buyers/customers. (e) "VALUE ADDITION" means the difference between the net output value (net sales adjusted for work-in-progress and finished goods stock) and cost of bought out materials and services for the product under reference. (f) "NON MOVING STOCKS" means value of raw materials and components, finished and semi-finished which have not moved for more than twelve months. The period shall be twenty-four month in case of consumable stores and spare used in workshop, tool rooms or repairs and maintenance. (g) "NORMAL PRICE" means price charged for comparable and similar products in the ordinary course of trade and commerce where the price charged is the sole consideration of sale and such sale is not made to a related party. NOTES.- (1) If there is any change in the share capital due to merger, acquisition, buy back of share, bonus issue etc. during the year under reporting, special mention may be made with the reasons therefor. (2) The profit arrived at for the factory, company and the product shall not include interest and dividend received on investments outside the business, capital gains, and any other income which is neither normal nor of recurring nature. The profit so arrived shall be the normal operating profit earned during the current financial period of the company. (3) Wherever, there is any significant variation in the current years figure over the previous years figure, reason thereof shall be given. (4) If the company had more than one factory producing the product under reference, separate details shall be indicated in the prescribe annexures in respect of each factory. (5) If the factory is engaged in the production of the product under reference and any other activities, separate details shall be indicated in the prescribed annexure for the factory as a whole and for the product under reference. (6) Figures shall be given for the year under audit and for the two preceding years in respect of paragraphs 4 to 26 Signature Signature Signature Name Name Name Cost Auditor Company Secretary Director Seal Stamp Stamp Date Date Date | 
