Section 7 in The Cost Accounting Records (Plantation Products) Rules, 2002
7. Fixed Assets and Depreciation. - (1) The proper and adequate records shall be maintained for assets used for each of the products under reference in respect of which depreciation has to be provided for. These records shall inter-alia, indicate the cost of acquisition of each item of asset including installation charges, capitalised cost of plantation or replantation, date of acquisition/ plantation and rate of depreciation. The adequate records shall be maintained to enable the company to identify the capital employed, net fixed assets and working capital separately for the product(s) under reference and other activities or product(s). Fresh investment on fixed assets that have not contributed to the product(s) referred to in the Appendix shall be indicated in the cost record.
(2)The basis on which depreciation is calculated and allocated or apportioned to various cost centres or departments and absorbed on such products shall be clearly indicated in the cost records. If depreciation charged or chargeable to the cost centres or departments is in excess or lower than the depreciation calculated by applying the rates of depreciation prescribed under the provisions of section 205 of the Companies Act, 1956, such amount of excess or lower depreciation shall be indicated clearly in the cost records. The cost records shall also show the effect of such excess or lower depreciation, as the case may be, on the per unit cost of activity. The cumulative depreciation charged in the cost records, against any individual item of asset shall not, however, exceed the original cost of the respective asset.
