1

[TOBEPUBLISHEDINTHEGAZETTEOFINDIA,EXTRAORDINARY,PARTII,
SECTION3,SUBSECTION(i)]
MINISTRYOFCORPORATEAFFAIRS
Notification
NewDelhidatedthe7
th,
Dec,2011

G.S.R.869(E).Inexerciseofthepowersconferredbysubsection(1)ofsection642,read
withclause(d)ofsubsection(1)ofsection209oftheCompaniesAct,1956(1of1956),and
in super session of the Cost Accounting Records (Telecommunications) Rules, 2002 vide
G.S.R.689(E),datedthe8
th
October,2002,exceptasrespectsthingsdoneoromittedtobe
done before such supersession, the Central Government hereby makes the following rules,
namely:
1. Short Title and Commencement, (1) These rules may be called the Cost Accounting
Records(TelecommunicationIndustry)Rules,2011.
(2)TheyshallcomeintoforceonthedateoftheirpublicationintheOfficialGazette.
2. DefinitionsandInterpretations,Intheserules,unlessotherwiserequires,
(a) ActmeanstheCompaniesAct,1956(1of1956);
(b) compliancereportmeansthecompliancereportdulyauthenticatedandsigned
byacostaccountantinthespecifiedformofcompliancereport;
(c) Cost Accountant for the purpose of these rules means a cost accountant as
defined in clause (b) of subsection (1) of section 2 of the Cost and Works
Accountants Act, 1959 (23 of 1959) and who is either a permanent employee of
the company or holds a valid certificate of practice under subsection (1) of
section6andwhoisdeemedtobeinpracticeundersubsection(2)ofsection2of
thatActandincludesafirmofcostaccountants;
(d) Cost Accounting Standards means the standards of cost accounting, issued by
theInstitute;
(e) cost records means books of account relating to utilization of materials, labour
andotheritemsofcostasapplicabletotheproduction,processing,manufacturing
orminingactivitiesofthecompany;
(f) FormAmeanstheformspecifiedintheserulesforfilingcompliancereportand
otherdocumentswiththeCentralGovernmentintheelectronicmode;
(g) FormBmeanstheformofthecompliancereportandincludesAnnexuretothe
compliancereport;
(h) Generally Accepted Cost Accounting Principles means the principles of cost
accountingissuedbytheInstitute;
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(i) InstitutemeanstheInstituteofCostandWorksAccountantsofIndiaconstituted
undertheCostandWorksAccountantsAct,1959(23of1959);
(j) product means any tangible or intangible good, material, substance, article,
idea, knowhow, method, information, object, service, etc. that is the result of
human, mechanical, industrial, chemical, or natural act, process, procedure,
function, operation, technique, or treatment and is intended for use,
consumption,sale,transport,store,deliveryordisposal;
(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
productsorservices,producedbyusingsimilarorsameprocessorinputs,having
similar characteristics and common unit of measurement, and having same or
similarusageorapplication;
(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
withtheMinistryofCommunicationsandInformationTechnology,Governmentof
India,namely:
(i) BasicTelephoneServices;
(ii) NationalLongDistanceServices;
(iii) InternationalLongDistanceServices;
(iv) CellularMobileTelephoneServices;
(v) WirelessLocalLoop(WLL)(FixedorMobile)TelephoneServices;
(vi) VerySmallApertureTerminalServices;
(vii) PublicMobileRadioTrunkServices;
(viii) GlobalMobilePersonalCommunicationServices;
(ix) InternetorBroadbandorWirelessAccessservice;
(x) InfrastructureProvider(IP1);
(xi) PassiveTelecomInfrastructureincludingTelecomTowerFacilities;
(xii) CableLandingStations;and
(xiii) Any other related, allied, intermediate or support services in relation
totelecommunicationactivitiesnotindicatedabove.
(m) turnovermeanstotalturnovermadebythecompanyfromthesaleorsupplyof
allproductsorservicesduringthefinancialyearanditincludesanyturnoverfrom
job work or loan license operations and the subsidies or grants or incentives
receivedbutdoesnotincludeanynonoperationalincome;
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(n) allotherwordsandexpressionsusedintheserulesbutnotdefined,anddefinedin
the Act and rules made under clause (d) of subsection (1) of section 209 of the
Act shall have the same meanings as assigned to them in the Act or rules, as the
casemaybe.
3. Application,Theserulesshallapplytoeverycompany,includingaforeigncompanyas
defined under section 591 of the Act, which is engaged in the production, processing,
manufacturing,orrenderingoftelecommunicationactivitiesandwherein,theaggregate
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 companys
equityordebtsecuritiesarelistedorareintheprocessoflistingonanystockexchange,
whetherinIndiaoroutsideIndia:
Provided that these rules shall not apply to a body corporate governed by any
specialAct.
4. Maintenance of records, (1) Every company to which these rules apply, including all
units and branches thereof shall, inrespect of each of its financialyear commencing on
or after the date of this notification, keep cost records and the books of account so
maintained shall contain, interalia, the particulars specified in Proformae A to H
mentionedintheScheduleannexedtotheserules.
(2) Thecostrecordsreferredtoinsubrule(1)shallbekeptonregularbasisinsuch
mannersoastomakeitpossibletocalculateperunitcostofproductionorcost
of operations, cost of sales and margin for each of its products and activities for
everyfinancialyearonmonthlyorquarterlyorhalfyearlyorannualbasis.
(3) The cost records shall be maintained in accordance with the generally accepted
cost accounting principles and cost accounting standards issued by the Institute;
totheextentthesearefoundtoberelevantandapplicableandthevariations,if
any,shallbeclearlyindicatedandexplained.
(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
theserecordsshallalsoprovidenecessarydatawhichisrequiredtobefurnished
undertheserules.
(5) Allsuchcostrecordsandcoststatements,maintainedundertheserulesshallbe
reconciledwiththeauditedfinancialstatementsforthefinancialyearspecifically
indicatingexpensesorincomesnotconsideredinthecostrecordsorstatements
soastoensureaccuracyandtoreconciletheprofitofallproductgroupswiththe
overallprofitofthecompanyandthevariations,ifany,shallbeclearlyindicated
andexplained.
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(6) Allsuchcostrecords,coststatementsandreconciliationstatements,maintained
under these rules, relating to a period of not less than eight financial years
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
shallbekeptingoodorder.
(7) Every person, referred to in subsection (6) and (7) of section 209 of the
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 subsection (1) of
section209ofthesaidAct.
5. Form of the Compliance Report, Every company to which these rules apply shall
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
AnnexuretotheCentralGovernment,inthespecifiedform.
6. Time limit for submission of Compliance Report, Every company shall submit the
compliancereportreferredtoinrule5totheCentralGovernmentwithinaperiodofone
hundred and eighty days from the close of the companys financial year to which the
compliancereportrelates.
7. Authentication of Annexure to the Compliance Report, The Annexure to the
compliancereportshallbeapprovedbytheBoardofDirectorsandcertifiedbytheCost
AccountantbeforesubmittingthesametotheCentralGovernmentbythecompany.
8. Penalties, (1) If default is made by the Cost Accountant in complying with the
provisions of these rules, he shall be punishable with fine, which may extend to five
thousandrupees.
(2) Forcontraventionoftheserules,
(a) thecompanyshallbepunishableasprovidedundersubsection(2)ofsection
642oftheAct;and
(b) every officer thereof who is in default, including the persons referred to in
subsection (6) of section 209 of the Act, shall be punishable as provided
under subsections (5) and (7) of section 209 of Companies Act, 1956 (1 of
1956).
9. Savings,ThesupersessionoftheCostAccountingRecords(Telecommunications)Rules,
2002,shallnotinanywayaffect
(a) anyright,obligationorliabilitiesacquired,accruedorincurredthereunder;
(b) any penalty, forfeiture or punishment incurred in respect of any
contraventioncommittedthereunder;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,
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continuedorenforcedandanysuchpenalty,forfeitureorpunishmentmaybe
imposedasifthoseruleshadnotbeensuperseded.

FORMA Form for filing Compliance Report and other documents

withtheCentralGovernment
[Pursuanttosection209(1)(d),600(3)(b)oftheCompaniesAct,1956andrule2oftheCostAccountingRecords
(TelecommunicationIndustry)Rules,2011]
PARTIGENERALINFORMATION
Note:Allfieldsmarkedin*aretobemandatorilyfilled.
1 (a) *Corporate identity number (CIN) or
foreign company registration number
ofthecompany

PreFill
(b) Global location number (GLN) of
company

2 (a)
*Nameofthecompany

(b) *Address of the registered office or of

the principal place of business in India
ofthecompany

(c)
*EmailAddressofthecompany

3 (a) *Financial year covered by the

compliancereport
From

(DD/MM/YYYY)

To

(DD/MM/YYYY)
(b) *Date of Board of directors meeting in which annexure
tothecompliancereportwasapproved

(DD/MM/YYYY)
4.Detailsofthecostaccountant
(a) *Categoryofthecostaccountant
Individual Costaccountantsfirm
(b) Incaseofindividual,whetherthecostaccountant
is in permanent employment of the company or
inpractice
InEmployment InPractice
(c) *Name of the cost accountant or the
cost accountants firm who has
certified the cost records of the
company

(d) *Income tax permanent account number of the cost accountant or the cost
7
accountantsfirm
(e) *Membership number of cost accountant or cost accountants firms
registrationnumber

(f) Addressofthecostaccountantorcostaccountantsfirm
(i)LineI
LineII
(ii)City
(iii)State
(iv)Country
(v)PinCode
(g) *Email ID of the cost accountant or
costaccountantsfirm

5.*QuantitativeInformation
NetSales S.
No.
NameoftheProductorServiceGroup Unit Annual
Production
(Quantity)
(Quantity) (Valuein
Rupees)
A ProducedorManufacturedProduct
Groups

1.
2.
3.etc.
B ServicesGroups
1.
2.
3.etc.
C TradingActivities(ProductGroupwise)
1.
2.
3.etc.
D OtherIncome
TotalIncomeasperFinancialAccounts
PARTII
Attachments:
1
Compliance report as per the Cost Accounting Records
(TelecommunicationIndustry)Rules,2011.
Attach
2 Optionalattachments(s)ifany Attach
Listofattachments

Removeattachment
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

resolutionnumber
dated (DD/MM/YYYY)
Tosignandsubmitthisform.
Iamauthorizedtosignandsubmitthisform.
Tobedigitallysignedby:
ManagingDirectorordirectorormanagerorsecretary(incaseofanIndiancompany)
or an authorized representative (in case of a foreign
company)

DigitalSignatures

*Designation

*DirectoridentificationnumberofthedirectororManagingDirector;orIncometaxPANof
the manager or of authorized representative; or Membership number, if applicable or
incometaxPANofthesecretary(secretaryofacompanywhoisnotamemberofICSImay
quotehis/herincometaxPAN)

Directorofthecompany DigitalSignatures
Directoridentificationnumberofthedirector

Modify CheckForm Prescrutiny Submit

ThiseformhasbeentakenonfilemaintainedbytheCentralGovernmentthroughelectronicmodeandonthe
basisofstatementofcorrectnessgivenbythefilingcompany
8

FORMB
FORMOFCOMPLIANCEREPORT
[Seerule2,andrule5]
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) having its registered office at .....................................................
(mentionregisteredofficeaddressofthecompany)(hereinafterreferredtoasthecompany),have
examinedthebooksofaccountprescribedunderclause(d)ofsubsection(1)ofsection209ofthe
saidAct,andotherrelevantrecordsfortheperiod/year.............................(mentionthefinancial
year)andcertifyasunder:
1 IorWehaveorhavenotobtained alltheinformationand explanations,whichto thebestof
myorourknowledgeandbeliefwerenecessaryforthepurposeofthiscompliancereport.
2 In my or our opinion, proper cost records, as per the Cost Accounting Records
(Telecommunication Industry) Rules, 2011 prescribed under clause (d) of subsection (1) of
section209oftheCompaniesAct,1956,haveorhavenotbeenmaintainedbythecompanyso
astogiveatrueandfairviewofthecostofproductionoroperation,costofsalesandmargin
ofalltheproductsandactivitiesofthecompany.
3 Detailed unitwise and product or activitywise cost statements and schedules thereto in
respectoftheproductgroupsoractivitiesareorarenotkeptinthecompany.
4 Inmyorouropinion,thesaidbooksandrecordsgiveordonotgivetheinformationrequired
bytheCompaniesAct,1956inthemannersorequired.
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
InstituteofCostandWorksAccountantsofIndia,totheextentthesearefoundtoberelevant
andapplicable.
Dated: this ____ day of _________ 20__ at _________________ (mention name of place of
signingthisreport)

SIGNATUREANDSEALOFTHECOSTACCOUNTANT(S)
MEMBERSHIPNUMBER(S)
9
NOTES:
(i) Deletewordsnotapplicable.
(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
againsttherelevantpara.
(iii) Brieflygiveyourobservationsandsuggestions,ifany,relevanttothemaintenanceofcost
accountingrecordsbythecompany.
(iv) Costaccountantmayuseseparatesheet(s)for(ii)and(iii)above,ifrequired.

ANNEXURETOTHECOMPLIANCEREPORT
[Seerule2andrule5]
1.GENERAL:
a) Nameofthecompany:
b) Registeredofficeaddress:
c) FinancialyeartowhichtheComplianceReportrelates.
2.QUANTITATIVEINFORMATION:
NetSales Sno. Name of the Product or Service
Group
Unit Annual
Production
(Qty.)
(Qty.) (Valuein
Rupees)
A Produced or Manufactured Product
Groups

1.
2.
3.etc.
B ServicesGroups
1.
2.
3.etc.
C Trading Activities (Product Group
wise)

1.
2.
3.etc.
D OtherIncome
TotalIncomeasperFinancialAccounts

10
3.RECONCILIATIONSTATEMENT:
NetMargin(ProfitorLoss)asperCostAccounts (InRupees)
A.FromProducedorManufacturedProductGroups
B.FromServicesGroups
C.FromTradingActivities
TotalasperCostAccounts
Add:IncomesnotconsideredinCostAccounts(ifany)
Less:ExpensesnotconsideredinCostAccounts(ifany)
Add/Less:DifferenceinStockValuation
Profitor(Loss)asperFinancialAccounts
NOTES:
(i) For produced or manufactured product groups, use the nomenclature as used in the
CentralExciseActorRules,asapplicable.
(ii) Forservicesgroups,usethenomenclatureasusedintheFinanceActorCentralService
TaxRules,asapplicable.
SIGNATURE
NAME
COSTACCOUNTANT(S)
MEMBERSHIPNUMBER(S)
SEAL
DATE

"SCHEDULE
[Seerule4]
PROFORMAA
ServicewiseCostingProfitandLossStatement

NameoftheCompany:
NameofService:
11
LicensedArea(ifany)
Period:

(Rs.inLacs)
Particulars CurrentYear PreviousYear
Revenue(NetofTaxes)

SalesorServices
Advertisement
ContentSale
Rentals
Others(specify)
TotalRevenue

A.Employeecost:
Salaries,Wages,IncentivesandAllowances
ContributiontoProvidentfundetc.

StaffWelfareExpenses
MedicalExpenses
TrainingandRecruitment
Others
Subtotal(A)
B.Administrationcost:
Rent(OtherthenSwitchingandCellsitesrent)
Ratesandtaxes
Insurancecharges(OtherthanNetwork
Elements)
Communicationcosts
Electricity
Travelingandconveyanceexpenses
Legalandprofessionalcharges
PrintingandStationary
Auditfees
Maintenance
OfficeBuilding
Others
OutsourcingCharges
BillingServices
Otheradministrativeactivities
Others
Subtotal(B)
12
Particulars CurrentYear PreviousYear
C.SalesandMarketingcost:
Advertisementandsalespromotionexpenses
SalescommissionandIncentive
Provisionforbadanddoubtfuldebts
Baddebtswriteoff
OutsourcingChargesforcustomercareservices
Others
Subtotal(C)
D.Governmentcharges:
Licensefee
Licensefeepenalty,ifany
WPCCharges

RadioSpectrumcharges

Microwavecharges

Others

Subtotal(D)
E.Depreciation:
Buildings
PlantandMachinery
Others
Subtotal(E)
F.LeasedRentals:
Equipment
Realestate
ITrelatedservices
CustomerCare
Others
Subtotal(F)
G.NetworkOperatingcost:
LeasedCircuitsandGatewayCharges
RoyaltyorFeefortechnicalknowhow
SwitchingandCellsitesrent
InstallationCharges
MaintenanceCharges(NewElements)
NetworkConsumablesandspares
Powerandfuel
Interconnection:
a)PassThroughCharges
13
Particulars CurrentYear PreviousYear
b)Portcharges
c)Others
PassiveInfrastructureCharges
InsuranceCharges(NetworkElements)
OutsourcingCharges
Others
Subtotal(G)
H.OtherCost:
Corporateofficeexpenses
Commoncost
Lossonsaleoffixedassets(net)
Others
Subtotal(H)
I.Financecharges:
Interest
Bankcharges
Others
Subtotal(I)
TotalCost(AtoI)
Profitor(loss)beforetax
TotalCapitalEmployed
ReturnonCapitalEmployed(%)
ReturnonTurnover(%)

PROFORMAB
ProductorNetworkServicewiseCostingProfit&LossStatement
NameoftheCompany:_______________________________________
NameofService:____________________________________________
LicensedArea(ifany):_____________________________________________
Period:___________________________
(Rs.InLacs)
Particulars ProductsorNetworkServicesagainst
eachservice
14
A B C etc. Total
Revenue(NetofTaxes)
SalesorServices

Advertisement

ContentSale
Rentals
Others

TotalRevenue

(I)DirectCost:

A.Employeecost:

Salaries,Wages,IncentivesandAllowances

ContributiontoProvidentfundetc.
StaffWelfareExpenses

MedicalExpenses

TrainingandRecruitment

Others

Subtotal(A)

B.Administrationcost:

Rent(OtherthenSwitchingandCellsitesrent)

Ratesandtaxes
Insurancecharges(OtherthanNetwork
Elements)

Communicationcosts

Electricity

Travelingandconveyanceexpenses
Legalandprofessionalcharges

PrintingandStationary

Auditfees

Maintenance

OfficeBuildings

Others

OutsourcingCharges

BillingServices

Otheradministrativeactivities

Others
15
Particulars ProductsorNetworkServicesagainst
eachservice
A B C etc. Total
Subtotal(B)

C.SalesandMarketingcost:

AdvertisementandSalespromotionexpenses
SalescommissionandIncentive
Provisionforbadanddoubtfuldebts
Baddebtswriteoff
OutsourcingChargesforcustomercareservices
Others
Subtotal(C)

D.Governmentcharges:

Licensefee

Licensefeepenalty,ifany

Expensesonamortization(onetimeentryfee)
WPCCharges
RadioSpectrumcharges
Microwavecharges
Others
Subtotal(D)

E.Depreciation:

Buildings

PlantandMachinery

Others

Subtotal(E)

F.LeasedRentals:
Equipment

Realestate

ITrelatedservices

CustomerCare

Others

Subtotal(F)

TotalDirectCost(A+B+C+D+E+F)

(II)NetworkElementOperatingcost(asper

16
Particulars ProductsorNetworkServicesagainst
eachservice
A B C etc. Total
ProformaC)
X
Y
Z
Etc

TotalNetworkElementOperatingCost(II)

(III)SupportFunctionorDepartmentCost(as
perProformaD2)

TotalSupportFunctionorDepartmentCost
(III)

Total(I)+(II)+(III)

CapitalEmployed(asperProformaF)

ReturnonCapitalEmployed(%)

ReturnonTurnover(%)

PROFORMA'C'
CostSheetNETWORKELEMENTS
NameoftheCompany:_______________________________________
NameofService:____________________________________________
LicensedArea(ifany):______________________________________________
Period:_____________________________
(Rs.InLacs)
Particulars NetworkElements

X Y Z etc Total
(I)NetworkDirectCost:

17
Particulars NetworkElements

X Y Z etc Total
A.Employeecost:

Salaries,Wages,IncentivesandAllowances

ContributiontoProvidentfundetc.
StaffWelfareExpenses

MedicalExpenses

TrainingandRecruitment

Others

Subtotal(A)

B.Administrationcost:

Rent(OtherthenSwitchingandCellsitesrent)

Ratesandtaxes
Insurancecharges(OtherthanNetwork
Elements)

Communicationcosts
Electricity

Travelingandconveyanceexpenses

Legalandprofessionalcharges

PrintingandStationary

Auditfees

Maintenance

Building

Others

OutsourcingCharges

BillingServices

Otheradministrativeactivities

Others
Subtotal(B)

C.NetworkOperatingcost:

LeasedCircuitsandGatewayCharges

RoyaltyorFeefortechnicalknowhow

Rent(Networkelementsequipmentsandcell
sites)

Powerandfuel

Interconnection:

i)Portcharges

18
Particulars NetworkElements

X Y Z etc Total
ii)Others

PassiveInfrastructureCharges

OutsourcingChargesfornetworkelement
equipments

Others

Subtotal(C)

DGovernmentcharges:

WPCChargesDOT(otherthanonrevenue
sharing)

PaidtoGovernmentagenciesotherthanDOT

Subtotal(D)

EDepreciation

Building

PlantandMachinery

Others

Subtotal(E)

FLeasedRentals

Equipment

RealEstate

Others

Subtotal(F)

GTotalNetworkDirectCost
(A+B+C+D+E+F)

H.SupportFunctioncostasperProformaE

SubTotalH

Total(G+H)

19

*PROFORMAD1
ApportionmentofSupportFunctionstovariousServices(ForPROFORMAD2)
(Rs.InLacs)
20
SupportFunctionorDepartmentCost Basisof
Apportionment
toSubService
specify
S
e
r
v
i
c
e

S
e
r
v
i
c
e

S
e
r
v
i
c
e

S
e
r
v
i
c
e

e
t
c

T
o
t
a
l

Administration

Billing
BranchOffice
CorporateOffice
CustomerCare
Finance&Accounts
HR
Insurance
ITorEDP
LegalorRegulatory
Maintenance
MarketingandSales
PlanningandDevelopment
Quality
StoresorLogistics
Total
21
PROFORMAD2
ApportionmentofSupportFunctionstovariousProducts(ForPROFORMAB)
(Rs.InLacs)
Servicefrom
ProformaD1
Servicefrom
ProformaD1
Total
SupportFunctionorDepartmentCost
Basisof
subsequent
apportionment
toProducts
specify
P
r
o
d
u
c
t

P
r
o
d
u
c
t

e
t
c

P
r
o
d
u
c
t

P
r
o
d
u
c
t

e
t
c

Administration

Billing
BranchOffice
CorporateOffice
CustomerCare
Finance&Accounts
HR
Insurance
ITorEDP
LegalorRegulatory
Maintenance
MarketingandSales
PlanningandDevelopment
Quality
StoresorLogistics
Total
22
PROFORMA'E'
StatementofCAPITALEMPLOYED
NameoftheCompany:_______________________________________
NameofService:____________________________________________
LicensedArea(ifany):______________________________________________
Period:_____________________________
(Rs.InLacs))
NetworkElements

Total
Particulars
X Y Z Etc.
FixedAssets(GrossBookValue)
TangibleAssets
Land
Building
PlantandMachinery
Computers
Officeequipment
Furnitureandfixtures
Vehicles
Others
IntangibleAssets
License
Patentsortechnicalknowhow
Totalfixedassets
Less:Accumulateddepreciation
NetBookValue(I)
CapitalWorkinProgress(II)
CurrentAssets
Inventories
Cashandbankbalance
Debtors
Loansandadvances
Others
Subtotal
CurrentLiabilities
Sundrycreditors
OtherLiabilities
Provisions,etc.
Securitydeposit
23
NetworkElements

Total
Particulars
X Y Z Etc.
AdvanceRentalsandPrepaidCardRevenue
Subtotal
NetWorkingCapital(III)
TotalCapitalEmployed(I+II+III)

PROFORMAF
StatementofAllocationorApportionmentofCapitalEmployedtoProductsorNetwork
Services
NameoftheCompany:_______________________________________
NameofService:____________________________________________
LicensedArea(ifany):______________________________________________
Period:_____________________________
(Rs.InLacs)
Particulars ProductsorNetworkServices

A B C Etc Total
(a)NetworkelementwiseCapitalEmployed
RadioNetwork:

X
Y
Z
Etc
Subtotal(A)

(b)SupportFunctionorDepartments
Administration
Billing
BranchOffice
CorporateOffice
CustomerCare
FinanceandAccounts
HR
Insurance
ITorEDP
LegalorRegulatory
24
Particulars ProductsorNetworkServices

A B C Etc Total
Maintenance
MarketingandSales
PlanningandDevelopment
Quality
StoresorLogistics
AnyOtherItem(Specify)
Subtotal(b)
Total(a+b)

PROFORMAG
ProfitandLossReconciliationStatement
NameoftheCompany:_______________________________________
Period:_____________________________
(Rs.inLacs)
Particulars Revenue Cost
NetProfit
or(Loss)
Service1
Service2
Service3
Etc.
Total
Adjustments:
Returnoncapitalemployedonnetworkelements
Nonregulatedbusiness
Eliminationofinterbusinesstransactions
Nonrelevantitems:
Returnoninvestments
Nonoperatingincome
Interestcostsandfinancialcharges
CorporateTax
Othertaxes(ifany)
AmortizationofGoodwill
25
Particulars Revenue Cost
NetProfit
or(Loss)
Extraordinaryitemssuchasabnormallossdueto
fireortheftetc.

Others
Unallocateditems
Anyotheritems(specify)
SubTotal
TotalasperAuditedAccounts

PROFORMAH
CapitalEmployedReconciliationStatement
NameoftheCompany:_______________________________________
Period:_____________________________
(Rs.inLacs)
Item Capitalemployed
Service1
Service2
Service3
Etc.
Total
Adjustments:
Fornonregulatedbusiness
Eliminationofinterbusinessassetsorliabilities
Nonrelevantitems
Investments
DepositsIntercorporate.Etc.
Goodwill
Provisionfortax
Proposeddividend
Longtermborrowings
Others:
(i) Unallocateditems
(ii) Anyotheritems(specify)
Subtotal(B)

Totalasperauditedaccounts(AB)

26

Notes:
1. Separate Proforma shall be prepared for each service or product and network
elementsintheProformaprescribedforeachareaofoperationorcircleorlicensed.
2. Thecostshallbeallocatedorapportionedproductwiseasspecifiedinappendixas
faraspossible
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
networkelements&supportingfunctions.
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
productornetworkserviceornetworkelements&supportfunctions.
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
assetsexistingatthebeginningandcloseofthefinancialyear.

[F.No.52/7/CAB2011]

B.B.GOYAL

Adviser(Cost)