Section 21(2) in The Cost Accounting Records (Electricity Industry) Rules, 2001

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Union of India - Subsection

Section 21(2) in The Cost Accounting Records (Electricity Industry) Rules, 2001

(2)The transactions by the following "related party relationships" shall be covered under sub-rule(1) :-

(a)enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries);

(b)associates and joint ventures of the reporting enterprise and the investing party or venturer in respect of which the reporting enterprise is an associate or a joint venture;

(c)individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual;

(d)key management personnel and relatives of such personnel; and

(e)enterprises over which any person described in (c) or (d) is able to exercise Significant influence. This includes enterprises owned by directors or major shareholders of the reporting enterprise and enterprises that have a member of key management in common with the reporting enterprise.

However, the following shall not be deemed as "related party relationships":-

(a)two companies simply because they have a Director in common, notwithstanding paragraph (d) or (e) above (unless the Director is able to affect the policies of both companies in their mutual dealings);

(b)a single customer, supplier, franchiser, distributor general agent with whom an enterprise transacts a significant of business merely by virtue of the resulting economic dependence; and

(c)the parties listed below, in the course of their normal dealings with an enterprise by virtue only of those dealings (although they may circumscribe the freedom of action of the enterprise or participate in its decision-making process);

(i)providers of finance;

(ii)trade unions;

(iii)public utilities;

(iv)government departments and government agencies including government sponsored bodies.

Explanation: - for the purpose of these rules, -

(a)"related party relationships" means parties who are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions;

(b)"related party transaction" means a transfer of resources or obligations between related parties, whether or not a price is charged;

(c)"control" means -

(i)ownership, directly or indirectly, of more than one-half of the voting power of an enterprise; or

(ii)control of the composition of the Board of Directors in the case of a company or of the composition of the corresponding governing body in case of any other enterprise; or

(iii)a substantial interest in voting power and the power to direct, by statute or agreement, the financial and/or operating policies of the enterprise.

(d)"significant influence" means participation in the financial or operating policy decisions of an enterprise, but not control of those policies;

(e)"associate" means an enterprise in which an investing reporting party has significant influence and which is neither a subsidiary nor a joint venture of that party;

(f)"joint venture" means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control;

(g)"joint control" means the contractually agreed sharing of power to govern the financial and operating policies of an economic activity so as to obtain benefits from it;

(h)"key management personnel" means those persons who have the authority and responsibility for planning, directing and controlling the activities of the reporting enterprise;

(i)"relative" - in relation to an individual, means the spouse, son, daughter, brother, sister, father and mother who may connected by blood relationship;

(j)"holding company" means a holding company within the meaning of Section 4 of the Companies Act, 1956 (1 of 1956);

(k)"subsidiary" means a subsidiary company within the meaning of Section 4 of the Companies Act, 1956 (1 of 1956);

(l)"fellow subsidiary" means a company is said to be a fellow subsidiary of another company if both are subsidiaries of the same holding company;

(m)"state-controlled enterprise" means an enterprise which is under the control of the Central Government or a State Government.

Proforma "A"Name of the company:Name and address of the Plant:Statement showing the cost of utilities like (1) Water collection, (2) Water treatment, (3) Ash handling plant, (4) Effluent treatment, etc.I. Quantitative Information:

Serial Number	Particulars	Unit	Current Year	Previous year
A1	Installed capacity
2	Quantity produced
3	Capacity Utilization %
4	Quantity re-circulated
5	Quantity purchased, if any
6	Self-consumption including other losses (to be specified)
7	Net units consumed
B1	Gross fixed assets at the end of the year/ Period (Rs./ Lakhs)
2	Net fixed assets at the end of the year/ period (Rs./ Lakhs)
3	Date of Commissioning

II. Cost Information:

Serial Number	Particulars	Quantity	Rate	Amount	Cost per unit
			(Rupees per unit)	(Rupees)	Current year (Rupees)	Previous year (Rupees)
A 1	Materials (specify)(a)(b)(c)
2	Utilities (specify)(a)(b)(c)
3	Wages and salaries
4	Consumable stores and spares
5	Repairs and maintenance
6	Depreciation
7	Other overheads
8	Total
9	Less: Credits, if any
10	Net total
	Apportioned to cost centre/ activity:iiiiiiivetc.

Notes:- 1. Separate cost sheet is to be prepared for each major utility.

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Union of India - Subsection

Section 21(2) in The Cost Accounting Records (Electricity Industry) Rules, 2001