Section 8 in Haryana Distribution and Retail Supply Licence
8. Separate Accounts for Separate Business.
- 8.1 The financial year of the licence shall run from the first of April to the following thirty-first of March.8.2The Licensee shall in respect of each Separate Business(a)keep such accounting records as would be required to be kept in respect of each such Separate Business as if it were carried on by a separate company, so that the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to, each Separate Business are separately identifiable in the books of the Licensee from those of any other business in which the Licensee is engaged, whether or not authorised by the Commission; and(b)prepare on a consistent basis from such accounting records :(i)for each financial year, accounting statements, comprising a profit and loss account, a balance sheet and a statement of source and application of funds, together with notes thereto, and showing separately in respect of each Separate Business the amounts of any revenue, cost, asset, liability, reserve or provision, which has been either :(a)charged from or to any other business (whether or not a Separate Business) together with a description of the basis of that charge; or(b)determined by apportionment or allocation between any Separate Business and any other business of the Licensee or its Affiliate (whether or not a Separate Business) together with a description of the basis of the apportionment or allocation; and(ii)in respect of the first six months of the first financial year and of each subsequent financial year, an interim profit and loss account; and(c)provide, in respect of the accounting statements prepared in accordance with this Condition 8, an Auditor's report in respect of each financial year, stating whether in their opinion these statements have been properly prepared in accordance with this Condition 8 and give a true and fair view of the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to, the Separate Business to which the statements relate; and(d)deliver to the Commission a copy of each interim profit and loss account not later than three months after the end of the period to which it relates, and copies of the accounting statements and Auditor's report not later than six months after the end of the financial year to which they relate.8.3Unless permitted to do by the Commission, the Licensee shall not change the bases of charge or apportionment or allocation referred to in Condition 8.2(b)(i) in relation to the accounting standards in respect of a financial year from those applied in respect of the previous financial year.8.4Where, in relation to the accounting statements in respect of a financial year, the licensee had changed such bases of charge or apportionment or allocation from those adopted for the immediately preceding financial year, the Licensee shall, if requested by the Commission, in addition to preparing accounting statements on those bases which it has adopted, prepare such accounting statements on the bases which applied in respect of the immediately preceding financial year.8.5Accounting statements for each Separate Business prepared under Condition 8.2(b)(i) shall, unless otherwise approved or directed by the Commission :(a)be in the form prescribed by the Indian Companies Act, 1956 (1 of 1956) and the Indian Electricity Rule, 1956;(b)be prepared in accordance with generally accepted accounting practices;(c)state the accounting policies adopted; and(d)be published with the annual accounts of the Licensee, in the manner prescribed in the Regulations.8.6References in this Condition 8 to costs or liabilities of, or reasonably attributable to any, Separate Business shall be construed as excluding taxation, and capital liabilities which do not relate principally to that Separate Business and Interest thereon.8.7The Licensee shall ensure that the accounting statements in respect of each financial year prepared under Condition 8.2(b)(i) and the Auditor's report in respect of each financial year referred to in Condition 8 are made available to any person requesting them at a price not exceeding the reasonable cost of duplicating them.
