xbrl manual-for-cost-audit-final

Manual for Step by Step filling up of Cost Audit Report in

Convert2xbrl ‘EXCEL’ file

Preamble

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Preamble

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The Cost Audit Report and Compliance Report as approved by the Boardshould be used as source for creation of the XBRL instances

Though the XBRL instances of Cost Audit Report / Compliance Report areprepared on the basis of the Cost Statement of the company approved bythe Board, they are not the exact replication of the statements. Theprocess of conversion of approved cost statements into XBRL instancesrequires application of judgment, including, in matters of mapping thecost statement items to the appropriate tags in the costing taxonomy

For every fact, where some detailed information or bifurcation needs to begiven; a footnote can be attached to it. Every footnote element must belinked to at least one fact [to insert footnote, please right click at desiredcell]

As per the business rules, all mandatory items shall have values [to knowwhether the given element is mandatory or not, please right click at desiredcell]

Preamble

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Creation of the Cost Audit Report in XBRL format, as approved by the Boardand certified by the Cost Auditor, is the responsibility of the company.However, filing the Cost Audit Report in XBRL format with the CentralGovernment is the responsibility of the Cost Auditor, who has to ensure thecorrectness of data and other information contained in the XBRL InstanceDocument

For the current year, the MCA-21 system would allow re-filing of the revisedCost Audit Report/ Compliance Report of the company only in case of anerror in the original fillings

Hindi Taxonomy is also available on right click in element properties

- Source : Exposure Draft - XBRL-Training – Guidance Manual by ICAI

Preamble

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The attached Excel file is a code file containing macros. Hence, your MS Excelshould be macro enabled

In case of data of company and cost auditor(s), MCA is going to validate fromits own database. Hence, name and address of the company shall be as perMCA database and name and address shall be as per ICAI database

It is recommended that copy, at any given cell, should not be made byinserting links from another file. Since the excel file is coded file and isportable, while opening again link may not activate the data as source mighthave changed.

The First Step : Enable Macros in EXCEL file

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Steps :How to Enable Macro in Office 2007

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Do the following Steps to Enable Macro

Press Office Button

Press Excel Option

Steps :How to Enable Macro in Office 2007

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Enable : Developer Tab

Steps :How to Enable Macro in Office 2007

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Press DeveloperPress Macro

Security

Steps :How to Enable Macro in Office 2007

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Enable all Macros then press OK

The First Step : Enable Macros in EXCEL file

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Steps :How to Enable Macro in Office 2010

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Press “Trust Center”

Press “Trust Center Settings”

Steps :How to Enable Macro in Office 2010

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Press Macro Security

Enable all macros and also put TICK mark on Trust

access to the VBA project object model

Press Ok to complete the procedure. Now Save the file and reopen

General Guidelines

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General Guidelines

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User shall create a new file by using “SAVE AS” and keep the original fileintact for future use

To know business Rule, use right click at the desired cell

CIN No. must be 21 Digits only

Pre fill button is provided for adding correct name and address of thecompany with help of online database of MCA

PAN No. must be 10 Digits only

Reporting Currency of entity is fixed as ‘INR’

Footnote can be added at any filled in cell where data exist by right clickand entering data into Insert Comment Box

Copy and paste will paste ‘Values’ only

General Guidelines

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Para 4 to 6 are hidden, it will generate only after filling up data in Para 3

Para 4 to 6 will be generated for each product group which is added atPara 3

Wherever “Text Block” is available simply click on button “Text Block” toadd details by copy and paste or add text

At Para – 5 value of product will automatically derived after filling up ofQty and Rate. User can remove the same and put value as per theirrequirement

At Para – 6 Operating Ratios will automatically derived from Para – 5; Usercan remove the same and put % as per their requirement

Copy and Pate from Word and Excel files is available for Text Block

Important Tips

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To copy and paste from another file(s), use Paste Special Value function –Alt - E + S + V (from excel Files) or Alt – E + S + Text (from Doc. Files)

While moving from one file to another file, if Alt + Tab is not working thentry Ctrl + Tab

To handle many sheets and move around , it recommended to use Homebutton or Ctrl +H at any sheet to go to home screen. A window lists allvisible sheets in the file. By clicking on desired sheet name user can reachto the said sheet.

Basic Information : Use of Buttons

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Use of Buttons

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To go to home screen, Press ‘Home Screen’ Button or PressCTRL+H

By using this button user can validate sheet; user will get redcolored cell(s) where data is missing or improper

By using this button user can add numbers of product/activitygroup at Quantitative Information

User can remove Product/activity Group one by one by usingthis button at Quantitative Information

By using this button user can add information or dataincluding Table

By using this button user can get the Name and Address ofthe company from MCA website (keep internet on)

Basic Information : Use of Buttons

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This button is at PARA – 4, 5 & 6. It will take user back toPARA 3

By using this button user can add numbers of Auditors

By using this button user can add number of lines at Profitreconciliation for Income/Expenses not considered in costAccounts

By using this button user can delete number of lines at Profitreconciliation for Income/Expenses not considered in costAccounts

By using this button user can add related party transaction

By using this button user can delete related party transaction

Basic Information : Use of Buttons

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This button is at PARA – 4, 5 & 6. It will unlock allthe freeze formulae

This button is at PARA – 4, 5 & 6. It will lock all thecell where formulae available

This button is at Home Screen, it generates reportand user will see it in Internet Browser. It isrecommended to use ‘Google Chrome’ browser as itprovided PDF conversion facility also.

This button is at Home Screen. It validates all sheets.It is recommended that this process be carried outprior to Generating XBRL Instance document

This button is at Home Screen, it will Generate XBRLInstance file in xml

Home Page

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To Reach to Home Screen, Press ‘Home’ Button or CTR + H at any place in the workbook.

Twelve Sheets to Complete XBRL

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i. General Information Statementii. Form of Cost Audit Reportiii. Cost Accounting Policyiv. Product Group Detailsv. Quantitative Informationvi. Abridge Cost Sheet

i. Material Costsii. Utilities Costsiii. Industry Specific Cost Elements

vii. Operating Ratiosviii. Profit Reconciliationix. Value Addition x. Financial Position of Companyxi. Related Party Transactionxii. Form of Compliance Report

General Information

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General Information

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By using ‘Prefill’ Button, User will get Name and Registeredoffice Address automatically from internet

General Information

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Fill the date in “DD-MM-YYYY” format only If there is no details of previous year then do not fill the data in First

previous financial year. When user have data of P.Y.; then after filling up date as required

above, then when user validate sheet it will showing error; but whenuser fill the product group at PARA 3 with selecting “Yes” at previousyear figures has reported; then revalidate this sheet it will not showingerror afterwards.

Hint is available wherever date is required

General Information

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Select level of rounding in (E)(i) by using drill down arrow Actual Thousand Lakhs Millions Crores Billions

Reporting Currency of Entity is fixed as ‘INR’

General Information

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If Option sleeted as “Yes” at qualification or anyreservation or adverse remarks; Tex Block is mandatory forthe Comment s

Text Block for Consolidated observations and suggestionsare mandatory

User have to select “Yes” or “No” whether company hasRelated Party Transactions or not. If user select no it willnot allow to fill data at PARA – 10 Related PartyTransactions

Form of Cost Audit Report

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Details of Cost Auditor

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This is new concept. Numbers of Auditor can be added Where there is only one Cost Auditor no need to click on button ‘Add Cost

Auditor’ Options for ‘’Whether cost auditor is Lead Auditor are ‘Yes’ or ‘No’ Options for ‘Category of Cost account’ are ‘Firm’ or ‘Sole Proprietor’

Details of Cost Auditor

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User can add only certain number of auditors which already mentionedat “General Information E(iii).

By using button “Add or Delete Cost Auditor” user can Add or deleteauditor(s)

Lead auditor for the company is only one. Only single auditor can beselected as Lead Auditor.

PARA – 3 : Product Group Details

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PARA – 3 : Product Group Details

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By using “ADD or DELETE PRODUCT / ACTIVITY GROUP” a product/ activitygroup can be added

Insert item code at Product/ Activity group column as above selected asred round circle.

Name of Product or Activity group and CETA will appear automatically. Press F2 at CETA and modify codes as required.

PARA – 3 : Product Group Details

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When at the column “whether product or activity group covered undercost audit (Yes/No)” is select as “YES” then only it will generate sheets withsuffix 1,2,3…n with PARA – 4 to 6 for the said product group

When at the column “whether previous year figures reported (Yes/No)” isselected as “No” then data cells for previous year will get locked at sheetsfor PARA – 4 to 6 for the said product / activity group and Text Block willbe mandatory for details for P.Y.

Last 3 columns which links takes you to the desired PARA 4 to 6. Whereproduct / Activity does not fall under Cost Audit at said row this link willnot work.

PARA – 3 : Product Group Details

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If user wants to change from “Yes” to “No” at “Whether product or activitygroup covered under cost audit (Yes/No)”, then the corresponding sheets forPara – 4 to 6 will also get deleted

If user wants to delete desired product group, user can put cell on saidproduct group and by selecting “delete product group” delete it. However, if“Yes” was chosen at “whether product/activity group covered under costaudit”, then the corresponding sheets for Para – 4 to 6 will also get deleted.

Para – 4 : Quantitative Information

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PARA – 4 : Quantitative Information

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Name and Code of Product groups will automatically bederived from PARA – 3

Simply fill other details in relevant cells

Para – 5 : Abridge Cost Statement

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PARA – 5 : Abridge Cost Statement

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This portion will appear automatically as per the data of PARA – 4Quantitative Information

Para – 5 : Abridge Cost Statement

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Formulae for Cost per unit data is already provided. No need to enter data.However user may remove formula and add his/her own value by usingbutton Unlock formulae.

To add Materials, Utilities and Industry Specific Operations Expenses, click onrelevant links.

It will take user to another sheet where in data for maximum of ten line itemsis made available as per taxonomy. Totals at main sheet will appearautomatically.

For other cost elements, simply fill data

Para – 5 : Abridge Cost Statement : Materials

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Name and Code of Product groups will automatically derived from PARA – 3 User will allowed to fill up to maximum ten numbers of material Options for Nature of Material Consumed are:

Indigenous Imported Self Manufactured Material

Line wise Text Block are also available for any clarifications

Para – 5 : Abridge Cost Statement : Utilities

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User will allowed to fill up to maximum ten numbers of Utilities Details are required to submit for two years Line wise Text Block are also available for any clarifications Link as “Back to Abridge Cost Statement” will take back to Para - 5

Para – 5 : Abridge Cost Statement : Industry Specific Cost Element

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User will allowed to fill up to maximum ten numbers of Utilities Details are required to submit for two years Line wise Text Block are also available for any clarifications Link as “Back to Abridge Cost Statement” will take back to Para - 5

Para – 5 : Abridge Cost Statement

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Cost per Unit of Increase/Decrease in FG and Self or Captive Consumption arenot available in taxonomy, so it will freeze and indicated as yellow cell

Cost per Unit of Other adjustment will derived from Cost of Production orOperation of Goods or services sold less Total cost of production andpurchases

User can remove formulae by using button on top of the sheet as “unlockformulae” and put their own value

PARA – 6 : Operating Ratios

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PARA – 6 : Operating Ratios

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Name and Code of Product groups will automatically derived from PARA – 3 % will automatically derived from PARA – 5

PARA – 6 : Operating Ratios : Mapping

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Mapping of elements of Abridge cost statement and Operating ratios is asabove

To unlock Formulae press “Unlock Formulae” button. It is advisable to relockformulae after changes

Once formula is changed, it can not be undone.

Elements of Abridge Cost Sheet Elements of Operating Ratios (%)Cost of materials consumed Ratio of materials including process materials cost (%)

Cost of process materials or chemicals consumed Ratio of materials including process materials cost (%)Cost of utilities consumed Ratio of utilities cost (%)

Cost of direct employees Ratio of direct employees cost (%)Cost of direct expenses Ratio of direct expenses (%)

Cost of stores and spares consumed Ratio of stores and spares consumed (%)Cost of repairs and maintenance Ratio of repairs and maintenance cost (%)

Cost of quality control Ratio of production overheads (%)Cost of research and development Ratio of production overheads (%)

Cost of technical knowhow fee or royalty Ratio of production overheads (%)Cost of depreciation or amortization Ratio of depreciation and amortization cost (%)Cost of other production overheads Ratio of production overheads (%)

Cost of industry specific operating expenses Ratio of industry specific operating cost (%)Cost of increase/decrease in work-in-progress Ratio of stock adjustments (%)

Credits for recoveries Ratio of production overheads (%)Cost of primary packing Ratio of Packing cost (%)

Cost of finished goods purchased Ratio of finished goods purchased (%)Cost of increase/decrease in finished goods Ratio of stock adjustments (%)

Cost of self or captive consumption Ratio of other expenses (%)Cost of other adjustments Ratio of other expenses (%)

Cost of administrative overheads Ratio of administrative overheads (%)Cost of secondary packing Ratio of Packing cost (%)

Cost of selling and distribution overheads Ratio of selling and distribution overheads (%)Cost of interest and financing charges Ratio of Interest and financing charges (%)

PARA – 7 : Profit Reconciliation

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Para – 7 Profit Reconciliation

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Use Buttons to ADD or DELETE the number of items atIncomes and/or Expenses not considered in cost accounts

PARA – 8 : Value Added

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Para – 8 Value Addition

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Add or Remove buttons are not available at this sheet,simply fill the data as required in relevant cells

Para – 9 : Financial Ratios

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Para – 9 : Financial Ratios

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Add or Remove buttons are not available at this sheet,simply fill the data as required in relevant cells

Para – 10 : Related Party Transaction

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Para – 10 : Related Party Transactions

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Related party data is divide in two parts viz. data about the relatedparty and transaction data.

Insert CIN will automatically fill Name of the Company. Hence, do fillCIN first wherever applicable.

Drill down button is available for selecting country. By pressing Add Related Party, user is asked whether user want to add

transaction with the said party. If yes then related party data will getcopied automatically.

Para – 10 : Related Party Transactions

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New element called ‘Product or activity eight digit code’ is required . Itis a mandatory field.

Please refer :ITC HS Code: (for products)http://www.mca.gov.in/XBRL/pdf/ITC_HS_codes.pdf

NPSC Code : (for Services) http://www.mca.gov.in/XBRL/pdf/NPCS_codes.pdf

Para – 11 : Reconciliation of Indirect Taxes

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Para – 11 Reconciliation of Indirect Taxes

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Simply fill the data as required in relevant cells

Generation of Report & XBRL Instance

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Generation of Report

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Press Button Generate Report a window will open

Generation of Report

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Save HTML file at desire folder

Generation of Report

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View of HTML Report – Preferable BrowserGoogle Chrome – Printer Friendly Version

Generation of XBRL Instance

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Press Button Generate XBRL Instance File; a window will open

Generation of XBRL Instance

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Save XML file at desire folder

Validation of Instance Document with MCA Tool

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Validation of Instance Document

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Home Screen of MCA validation tool

Validation of Instance Document

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Taxonomy> Select Taxonomy> Cost Audit Report 2012

Validation of Instance Document

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This message will appear when taxonomy loaded.

Validation of Instance Document

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This message will appear when taxonomy loaded.

Validation of Instance Document

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Now open xml file which generated from Excel base XBRLsoftware . File > Open>

Validation of Instance Document

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Now Select XML from document

Validation of Instance Document

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Message will appear when xml loaded

Validation of Instance Document

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Select element it will show details below which filled byuser in XBRL software

Validation of Instance Document

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User can validate sheet by : File > Validate

Validation of Instance Document

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Final Validation Message

Validation of Instance Document

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User can also get PDF from MCA Tool also by: File> Export to PFD

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