_27

MINISTRY OF LAW, J USTICE AND COMPANY AFFAIRS

(Department of Company Affairs)

NOTIFICATION

New Delhi, the 21st December, 2001

G.s.R9i3(E).—In exercise of the powers conferred by sub-section (1) of section

642, read with clause (d) of sub-section (1) of section 209 of the Companies Act, 1956

(1 of 1956), the Central Government hereby makes the following rules, namely:-

1 Short title and commencement .-

(1) These rules may be called the Cost Accounting Records (Electricity

Industry) Rules, 2001.

(2) They shall come into force on the date of their publication in the Official

Gazette.

2. Application .- These rules shall apply to every company engaged in any of the

following activities, namely :-

(1) Generation of electricity from:-

(a) thermal power

(b) gas turbine

(d) atomic power

(e) solar power

(f) wind power

(g) any other source of energy;

(2) Transmission and bulk supply of electricity;

(3) Distribution and retail supply of electricity :

Provided that these rules shall not apply to a company, -

(a)

the aggregate value of the machinery and plant installed wherein, as on the

last date of the preceding financial year, does not exceed the limits as

specified for a small scale industrial undertaking under the provisions of

Industries (Development and Regulation) Act, 1951 (65 of 1951); and

(b)

the aggregate value of the turnover made by the company from sale or

supply of all its products or activities during the preceding financial year

does not exceed ten crores of rupees.

3. Maintenance of records.- (1) Every company to which these rules apply shall,

in respect of each of its financial year commencing on or after the

commencement of these rules, keep proper books of account relating to

utilisation of materials, labour and other items of cost in so far as they are

applicable to any of the activities referred to in rule 2. The books of account, so

maintained, shall contain, inter-alia, the particulars specified in the Schedule

annexed to these rules and Proformae A, B C, D, E and F mentioned in the said

Schedule:

Provided that if the said company is manufacturing any other product(s)or

is engaged in other activities in addition to generation, transmission, distribution

and supply of electricity, the particulars relating to utilisation of materials, labour

and other items of cost in so far as they are applicable to such other products or

activities shall not be included in the cost of the activities referred to in rule 2.

(2)

The books of account referred to in sub-rule (1) shall be kept on a regular

basis in such a manner as to make it possible to calculate the cost of each

activity referred to in rule 2 for every financial year from the particulars entered

therein. Every such book of account and the proformae specified in the said

Schedule, shall be completed not later than ninety days from the close of the

financial year of the company to which it relates,

(3)

The statistical and other records shall be maintained in accordance with

the provisions of the Schedule to these rules in such a manner 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 cost. These records shall

also provide the necessary data required by the Cost Auditor to suitably report on

all the points referred to in the Cost Audit (Report) Rules, 1996 as amended from

time to time.

(4) It shall be the duty of every person, referred to in sub-section (6) and (7) of

section 209 of the companies Act, 1956 (1 of 1956), to take all reasonable steps

to secure compliance by the company with the provisions of sub-rules (1),(2)and

(3) of this rule in the same manner as he is liable to maintain accounts required

under sub-section (1) of section 209 of the said Act.

4. Penalty .- If a company contravenes the provisions of rule 3, the company and

every officer thereof who is in default, including the persons referred to in sub-

rule (4) of rule 3 shall, subject to provisions of section 209 of Companies

Act, 1956 (1 of 1956) be punishable with fine which may extend to five thousand

rupees and where the contravention is a continuing one, with a further fine which

may extend to five hundred rupees for every day, after the first day during which

such contravention continues.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART U—SEC. 3(i)1

SCHEDULE

[See rule 3]

MATERIALS:

(1) The proper records shall be maintained showing all receipts, issues and

balances both in quantities and values of all major fuel such as coal, lignite, gas,

naphtha, bagasse alongwith their calorific values and other materials used in the

generation, transmission, distribution or supply of electricity. These records shall

contain such details so as to enable the company to determine the quantity and

cost of receipt (including all direct charges upto the works in respect of major

materials/fuels), issues and balances in quantity as well as value of each item of

all such materials. The basis on which said cost of issue and consumption have

been calculated shall be indicated in the cost records and followed consistently.

The records shall indicate quantity and expenses incurred for loading and

unloading, transport, handling, grinding charges etc. The quantity and cost of

transportation of material by different modes of transportation viz. road,

conveyer, rail, pipeline, rope way etc shall be indicated separately. In the case of

imported materials/fuels proper records of quantity and value shall be maintained

for each item showing FOB value, overseas freight, insurance, customs duty,

clearing charges, inland freight etc. If both indigenous and imported materials are

consumed, the records showing details of percentage mix of the same, have to

be maintained for each item. In the case of imported materials, proper records

shall also be maintained showing' license-wise allowed quantities, actual

quantities imported, actual quantities consumed, quantities in stock and

quantities yet to be imported out of total licensed quantities.

(2) Where any material such as coal, lignite etc are used from mines owned or

leased by the company or by its wholly owned subsidiary, separate records

showing the cost of raising such materials shall be maintained in such details as

may enable the company to fill up particulars in proforma 'B' or any other

proforma as thereto practicable.

(3) The proper records shall be maintained showing the receipts, issues and

balances both in quantity and value of each item of consumable stores (station

stores), small tools and other materials required for any of the activities referred

to in rule 2. The value shown shall include all direct charges up to works

whenever specifically incurred. In the case of consumable stores, the value of

which are not significant, the company may, if so desires, maintain such records

for the main group of such items. The value of consumable stores, consumed for

the power system shall be charged to the relevant head of accounts.

(4) The proper records shall be maintained showing the quantity and value of

wastage, spoilage, rejections and losses of input materials/fuels and consumable

stores whether in transit, storage, operation or at any other stage. The method

followed for adjusting the above losses as well as income derived from the

disposal of rejected and waste materials including spoilage, if any, in determining

the cost of activities, shall be indicated in the cost records.

(5) The proper records shall also be maintained to indicate the value of materials

which have not moved for more than twelve months for effective control of

inventory.

(6) Where any credit under Central Value Added Tax

(CENVAT) under the

Central Excise Act, 1944 (1 of 1944) or any other benefits of the nature of

CENVAT credit, are received/receivable on any item of material and/or

consumable stores or spares, the cost of such material and/or consumable

stores/spares should be shown after adjusting such credit or benefits.

SALARIES AND WAGES:

(1) The proper records shall be maintained to show the attendance and earnings

of all employees function-wise or activity-wise and the works on which they are

employed. The records shall also indicate the following separately for each such

function or activity:

(a) piece rate wages (wherever applicable);

(b) incentive wages, either individually or collectively as production bonus

or under any other scheme based on output;

(d) earnings of casual or contractual labour;

(e) bonus or gratuity, statutory as well as other;

(f) contribution to superannuation scheme; and

(g) any other earnings of the nature specified in (a) to (f) above.

(2) The records shall be maintained in such a manner as to enable the company

to furnish necessary particulars under this head in Proformae A, B, C, D, E and F

of Schedule I annexed to these rules. The records may be maintained to book

these expenses function-wise or activity-wise. Where the employees work in

such a manner that it is not possible to identify them with any specific function or

activity, the employees cost shall be apportioned to the functions or activities on

• equitable and reasonable basis and applied consistently.

(3) The idle labour cost, other than due to backing down demand from

customers, shall be separately recorded under classified headings indicating the

reasons therefor. The method of accounting followed for accounting of idle time

payments shall be disclosed in the cost records.

(4) Any wages and salaries allocable to capital works, such as, additions to plant

and machinery, buildings or other fixed assets shall be accounted for under the

relevant capital heads. Similarly, payments in the nature of deferred revenue

expenditure shall be separately recorded under separate classified headings

indicating the reasons therefor. The method followed for accounting of such

payments in determining the cost of the product or service shall be on equitable

THE GAZETTE OF INDIA: EXTRAORDINARY

[PARTI^—SEC, 3(i)1

and reasonable basis and applied consistently. The said method shall be

disclosed in the cost records also.

(5) The cost of termination benefits payable to employees shall be recorded

under separate head. The method followed for such cost in determining the cost

of the electricity generated, transmitted or distributed shall be on equitable and

reasonable basis, applied consistently and disclosed separately. Only the

termination benefits say in respect of voluntary retirement scheme, which are

payable in addition to the normal retirement benefits and that are likely to provide

benefits in terms of savings in cost in future shall be treated as deferred revenue

expenditure over a period not exceeding five years. These costs shall not form

part of salaries and wages and shall be shown separately. Such costs shall be

excluded from valuation of inventories since these do not result in putting the

inventories to their present location and condition.

SERVICE DEPARTMENT EXPENSES:

The proper records shall be maintained to indicate expenses incurred in respect

of each service department or function like laboratory, welfare measures, safety

implementation, transport, dispensary, school, creche, township etc. These

expenses shall be apportioned to other services and power activities on equitable

and reasonable basis and applied consistently. Where these services are utilized

for other products or activities of the company also, the basis of apportionment of

such expenses to other products or activities shall be on equitable and

reasonable basis and applied consistently.

UTILITIES:

(1) The proper records showing quantity and cost of water collection, water

treatment, ash handling, effluent treatment etc. shall be maintained by the

company for the activities under reference.

(2) The cost statements for each utility shall be maintained separately in respect

of each such utility in Proforma 'A'.

WORKSHOP OR REPAIRS AND MAINTENANCE OR TOOL ROOMS:

(1) The proper records showing the expenditure incurred by the workshop or tool

room under different heads and on repairs and maintenance shall be maintained

function-wise or activity-wise. The amount incurred on schedule/annual

maintenance shall be separately recorded under the head

preventive

maintenance. The records shall also indicate the basis of charging the workshop

or tool room or repairs and maintenance expenses to different activities. Where

maintenance work is done by direct workers of any of the generation,

transmission, distribution & supply department, the wages and salaries of such

workers shall be treated as direct expenses of the respective function or

department. If the services are utilized for other products or activities also, the¹

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SEC. 3(Q]

manner of charging a share to such products or activities shall be on equitable

and reasonable basis and applied consistently.

(2) The records shall also indicate the quantity and amount and also the

proportion of closing inventories of stores and spare parts representing items

which have not moved for over twenty four months.

(3) The expenditure on major repair work from which benefit is likely to accrue for

more than one financial year shall be allocated over the period expected to

benefit on equitable and reasonable basis and applied consistently. Such costs

shall be shown separately and the method of accounting alongwith the basis of

allocation of such costs shall also be clearly indicated in cost records.

FIXED ASSETS AND DEPRECIATION:

(1) The proper and adequate records shall be maintained for assets used for

each of the activities 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, date of acquisition and rate of

depreciation.

(2) Also such records as will enable to identify and/or allocate gross fixed

assets, accumulated depreciation upto the year and net fixed assets under the

heads; land and building, plant and machinery, furniture and fixtures etc.

employed for the production of activities under reference alongwith the method

and rate of depreciation shall be maintained. The basis of apportionment of

common assets to the product(s) under reference shall also be indicated. In case

of revaluation of assets, the same shall be indicated separately. The basis of

allocation of indirect assets to the products under reference shall be on equitable

and reasonable basis and applied consistently.

(3) The basis on which depreciation is calculated and allocated or apportioned to

various cost centres or activities and absorbed on such activities 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 prescribed

and applicable to the company under the Electricity (Supply) Act, 1948 or under

the provisions of sub-section (2) of Section 205 of the Companies Act, 1956, as

the case may be, 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.

LEASING CHARGES:

In the case of leasing arrangements, proper record shall be maintained showing

details of terms and cohditions, leasing charges paid or payable as well as

received or receivable.

OTHER OVERHEADS:

(1) The proper records shall be maintained for the activities under reference

showing the various items of expenses comprising the other overheads. These

expenses shall be analyzed, classified and grouped according to functions,

namely, operation, administration and sales for each activity under reference.

(2) Where the company is manufacturing products other than the products or

activities under reference, the records shall clearly indicate the basis followed for

apportionment of the common overheads including head office expenses of the

company to such products and to power activities including capital works. Where

certain expenses forming part of overheads can be identified with a particular

activity or a product, such expenses shall be first segregated and charged to the

relevant activity or product and thereafter the residual expenses under the above

categories of overheads shall be apportioned on equitable and reasonable basis

and applied consistently. The overheads chargeable to capital works shall be

indicated separately in the cost records. The basis of apportionment or

absorption of overheads to the cost centres or activities and the products shall be

indicated in the cost records. The Records shall be maintained in such a manner

as to indicate the details of operation, administration and sales overheads.

ROYALTY OR TECHNICAL KNOW-HOW FEE :

The adequate records shall be maintained showing royalty and/or technical

know-how fee including other recurring or non-recurring payments of similar

nature if any, made for the activities under reference to collaborators or

technology suppliers in terms of agreements entered into with them. Such

records shall be kept separately in respect of each such collaborator or supplier.

The basis of charging such amount, including lump sum payment and its

treatment shall be indicated in the cost records.

10. RESEARCH AND DEVELOPMENT EXPENSES:

(1) The proper records showing the details of expenses, if any, incurred by the

company on the research and development work of the activities covered under

these rules shall be maintained.

(2) The method of charging these expenses to the cost of activities under

reference and all other products or activities shall be indicated in the cost

records. Where the utility of such research and development work extends over

more than one financial year, such expenses shall be treated as deferred

revenue expenses and charged to the cost of activities under reference and all

other products if any, on equitable and reasonable basis and applied

consistently. The detailed criteria on which it has been decided to extend the

utility period of these expenses to more than one financial year shall be disclosed

in the cost records. The following criteria, which are only indicative and not

exhaustive, may be adopted in such cases :

-. V¹ /r:'i / ^ r /

THE GAZETTE OF INDIA. EXTRAORDINARY

| PART II—SEC.3(i)1

(i)

the output or process is clearly defined and the costs attributable to the

output or process can be separately identified;

(ii)

the technical feasibility of the output or process has been demonstrated;

(iii) the management of the enterprise has indicated its intention to produce

and market or use the output or process;

(iv) there is a reasonable indication that current and future research and

development costs to be incurred on the project together with expected

production, administrative and selling costs are likely to be more than

covered by related future revenues or benefits; and

(v)

adequate resources exist or are reasonably expected to be available to

complete the project and market the c tyut or process.

(3) The expenses incurred by the Research and Development Department for

providing technical know-how to outsiders shall be recorded separately and

excluded from the cost of activities under reference. The amount recovered for

providing technical know-how to outsiders shall also be indicated separately and

excluded from the income arising from the sale of outputs or activities under

reference.

11.

INTEREST:

The proper records shall be maintained for money borrowed for each project

and/or working capital and interest charges thereon. The amount of interest shall

be allocated or apportioned to the activities covered under these rules and other

activities on equitable and reasonable basis and applied consistently. The basis

of further charging of the share of the interest to the various types of such

activities shall also be equitable and reasonable and applied consistently. The

basis of such allocation or apportionment shall be spelt out clearly in the cost

records and statements. Net interest incurred on borrowed money or outlays for

projects under execution, shall be capitalized for the period between the date of

conceivement of the project and commencement of commercial activities.

12.

EXPENSES OR INCENTIVES ON EXPORTS:

The proper records showing the expenses incurred on the export sales, if any, on

the products or services under reference, shall be separately maintained so that

the cost of export sales can be determined correctly. Separate cost statement

shall be prepared for power exported giving details of export expenses incurred

and incentive earned. In case, duty free imports of input materials are made, the

cost statements should reflect this fact.

13.

COST STATEMENTS:

(1)

The cost statements showing details of installed capacity, generation,

peak load and all elements of cost of the current financial year and previous year

shall be prepared for each process and/or activity under reference in Proformae

A, B, C, D, E and F.

_J5

(2)

The activity emerging from a process, which forms input for a subsequent

process, shall be valued at the cost upto the previous stage.

(3)

If the company is operating more than one plant or factory, separate cost

statements as specified above shall be prepared in respect of each plant or

factory.

14.

PRODUCTION RECORDS:

The quantitative records of each activity relating to generation, transmission,

distribution and supply of electricity shall be maintained. The proper records

shall also be maintained for backing down of generation and diversion of energy

(DOE) recovery.

15.

RECONCILIATION OF COST AND FINANCIAL ACCOUNTS:

(1) The cost statements shall be reconciled with the financial statements for the

financial year specifically indicating the expenses or incomes not considered in

the cost records or statements so as to ensure accuracy and to adjudge the profit

of the activity under reference with the overall profit of the company. The

variations, if any, shall be clearly indicated and explained.

(2) A statement showing the total expenses incurred and income received by the

company under different heads of accounts and the share applicable to other the

activities or services shall be prepared and reconciled with the financial

statement.

16.

ADJUSTMENT OF COST VARIANCES:

Where the company maintains cost records on any basis other than actual such

as standard costing, the records shall indicate the procedure followed by the

company in working out the cost of the activities and services under such

system. The cost variances shall be shown against the separate heads and

analysed into material, labour, overheads and further segregated into quantity,

price and efficiency variances.

The method followed for adjusting the cost

variances in determining the actual cost of the activities and services shall be

indicated clearly in the cost records. The reasons for the variances shall be duly

explained in the cost records and statements.

17.

STATISTICAL RECORDS:

(1) The records regarding installed capacity of power plant, peak load demand

(normal/maximum demand), plant load factor (PLF), power generated, power

consumed at the generating station/sub-stations, number of stations/ sub-

stations/auxiliaries, captive consumption, etc., transmission of power under

different voltages, such as HV, EHV, LV, length of transmission lines, and area

covered, consumer served under different sectors, viz. agriculture, industry,

commercial and domestic sector, operational losses, transmission losses, plant

-T6

THE GAZETTE OF INDIA: EXTRAORDINARY

| PAR I II—SEP. 3(i)1

hours

available,

and

actually

utilized,

man

power

per

ML)

generated/transmitted/per 1000 consumer, shall be maintained. The suitable

records for computation of idle time of machines and/or plants, average

frequency, details of power supplied, tariff rate structure for different consumers,

etc. shall also be maintained and analysed.

(2) The adequate records shall be maintained to enable the company to identify

the capital employed, net fixed assets and working capitaJ separately for different

activities under reference and other products and activities. Fresh investments on

fixed assets that have not contributed to the production or processing of activities

under reference during the year shall be indicated in the cost records. The

records shall, in addition, show assets added as replacement and those added

for increasing existing capacity.

(3) In the case of new projects for activity under rule 2, proper records shall be

maintained indicating the funds raised from different sources, their utilization,

stage-wise cost incurred and progress of the project as per the project report.

Cost and time over run shall also be analyzed with reference to the cost of

services/activity and profitability of the company.

(4) Whenever WTO provisions are attracted, proper records shall be maintained

to identify the competitiveness of the product in the domestic as well as global

market and the expenses, if any, incurred to combat the competition arising out

of WTO provisions. Adequate statistical records shall also be maintained to

identify the market share of the product manufactured and the likely impact

thereon on account of competitive goods imported in to the country.

These

records shall indicate, inter-alia, the total volume of imports, names of importers,

countries of origin and contain such empirical evidence as to show whether such

imports can be construed as dumping and affecting the market share of the

product. Proper records shall also be maintained, containing such details as may

be necessary to show that the export price of the product is not such as to be

construed as dumping in the importing country, by applying the provisions of

WTO regarding anti-dumping measures under Article VI of GATT 94.

18.

CAPTIVE CONSUMPTION:

If power is used for captive consumption, proper records shall be maintained

showing the quantity and cost of power transferred to other departments or units

of the company for self-consumption and sold to outside parties. The rates at

which the transfers are effected shall be at cost only.

19.

POLLUTION CONTROL:

The Expenditure incurred by the company on various measures to protect the

environment like effluent treatment, control of pollution of air, water, ash pond,

ash mound, etc., should be properly recorded.

37

20. HUMAN RESOURCES DEVELOPMENT:

Expenditure incurred by the company on the human resources development

activity shall be recorded separately.

21.

RELATED-PARTY TRANSACTIONS:

(1)

In respect of related party transactions or supplies made or services

rendered by a company to its holding company or subsidiary or a

company termed "related party relationship" as defined below and vice-a-

versa, records shall be maintained showing contracts entered into,

agreements or understanding reached in respect of:

(a)

purchase and sale of raw materials, finished products, process materials,

chemicals and rejected goods including scraps, etc;

(b)

utilisation of plant facilities and technical know-how;

(c)

supply of utilities and any other services;

(d)

administrative, technical, managerial or any other consultancy services;

(e)

purchase and sale of capital goods including plant and machinery;

(f)

any other payments related to generation, transmission, distribution and

supply of power or activity under reference.

These records shall also indicate the basis followed for arriving at the rates

charged or paid for such products or services so as to enable determination of

the reasonableness of such rates in so far as they are in any way related to

activity under reference.

(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 mansfjement in common with the reporting

enterprise.

THE GAZETTE OF INDIA • EXTRAORDINARY

| PART II—SEC. 3(i)]

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

(a)

two companies simply because they have & Director in common,

notwithstanding paragraph (d) or (e) above (unites the Director is able to

affect the policies of both companies in their rri-fn ---.i dealings);

(b)

a single customer, supplier, franchiser, disiMt;?.

or general agent with

whom an enterprise transacts a significant VG'UP C of business merely by

virtue of the resulting economic dependence; arxi

(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 parfet

-/-IO 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 uk; financial or operating

policy decisions of an enterprise, but not contro! 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);

(I)

"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.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SEC. 3(i)I

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. :

Quantitative Information:

Serial

Number

A1.

B1.

Particulars

Installed capacity

Quantity produced

Capacity utilization %

Quantity re-circulated

Quantity purchased, if any

Self-consumption including other

losses (to be specified)

Net units consumed

Gross fixed assets at the end of

the year /period (Rs./Lakhs)

Net fixed assets at the end of the

year/period (Rs./Lakhs)

Date of commissioning

Unit

Current

Year

Cost Information:

Serial

Number

A 1 .

Particulars

Materials (specify)

(a)

(b)

(c)

Utilities (specify)

(a)

(b)

(c)

Wages and salaries

Consumable stores and

Cua-

ntity

Rate

(Rupees

per unit)

Amount

(Rupees)

Cost per unit

Current

Year

(Rupees)

Year

(Rupees)

10.

spares

Repairs and maintenance

Depreciation

Other overheads

Total

Less: Credits, if any

Net total

Apportioned to cost

centre/ activity:

ii.

iii.

iv. etc.

Notes:-

Separate cost sheet is to be prepared for each major utility.

If any of the utility or service, which is manufactured by the company, is

sold to outside parties, proper credit should be given in the cost of

production of the respective utility.

Delete utilities/items not applicable.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—frc 3QM

PROFORMA 'B'

Name of the company :

Name and address of the plant:

Statement showing the cost of procurement of coal, lignite, gas, naphtha, fuel oil,

bagasse or any other primary or secondary conventional or non-conventional

fuel:

Serial

Number

Particulars

Purchase :

(a) Total purchased

(b) Less: deduction for driage,

loss in transit etc.

gate

Other incidental charges:

(a) Commission/brokerage

paid

(b) Loading and unloading

(d) Transportation charges

(e) Others, if any (specify)

(f) Subtotal

Total 1(c) + 2(f)

Fuel procured from own/ leased

land/companies

Opening balance in the land/

companies

Procurement during the year

and the related expenses :

(a) Royalty

(b) Storage

centres (specify)

(d) Share of land development

expenses, if any

(e) Sub total

Less : expenses for driag^,

burning, pilferage etc.

Less: closing stock

Net quantity transferable to

Qua-

ntity

Rate

Rupees

per unit

Amount

Rupees

Cost |lerunlt

Current

Year

(Rupees)

Year

(Rupees)

factory gate

Other incidental charges:

(a) Loading and unloading

(b) Transportation charges

Sub total

Total quantity/ cost at the

factory gate (5+6)

Total (A3+B7)

Cost of issues from storage :

Opening balance at storage

Transferred from gate (item C

above)

Sub total (1+2)

Less : deduction for driage and

other losses at storage

Less : closing balance

Cost of net quantity transferred

to Proforma "C'

Notes:-

Separate cost statement shall be prepared for the different kind of

materials/fuels such as coal, lignite, gas naphtha, bagasse etc.

Delete items not applicable.

Where the company has its own facilities/mines to produce coal, lignite,

etc., cost of raising such material shall be worked out in detail using

proforma 'A' prescribed for utilities.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PARTII—Sac. 3(i)l

Proforma 'C

Name of the company :

Name and address of the Generating Unit;

Statement showing the Cost of generation of Power (Thermal/ Hydro-electric/Gas

Turbine/ Atomic, etc) during the year /period :

Quantitative Information:

Serial

No.

A 1 .

10.

11.

12.

13.

14.

15.

16.

B 1.

csi

Particulars

Installed capacity

Minimum power to be purchased under PPA

Planned outage

Forced outage

Plant availability

Loss due to backing down

Reserve outage

Partial unavailability factor

Power generated

Plant load factor

Auxiliary power consumption

Free supply, if any, to employees and office

Net power generated

Add power purchased, if any

Power available for transmission

Station Heat Rate (KCal/KWH)

Gross fixed assets at the end of the

year/period (Rs./Lakhs)

Net fixed assets at the end of the year/period

(Rs./Lakhs)

Date of commissioning

Unit

Current

Year

Cost Information:

Serial

No.

Particulars

Material/Fuel cost:

(a) Coal

(b) Lignite

(d) Gas

(e) Bagasse

(f) Others (specify)

Quantity

and

calorific

value of

the fuel

used

Rate

(Rupees

per unit)

Amount

(Rupees)

Cost per unit

(Rs./KWH)

Current

Year

Previ-

ous

Year

10.

11.

12.

13.

14.

15.

16.

17,

18.

19.

20.

21.

22.

23.

24.

(g) Total fuel cost

Utilities, if any (specify)

Direct wages and salaries

Consumable stores and spares

Repairs and maintenance

(a) Building

(b) Plant and machinery

Insurance

Depreciation

Lease rent, if any

Ash handling

Royalty or technical know-how

fee, if any (specify)

Research and development

Other plant overheads

Administrative overhead

(a) Salaries and wages

(b) Others (specify)

Total (1 to 13)

Less: Credits, if any (specify)

Cost of generation

(a) Fixed cost

(b) Variable cost

Selling expenses, if any

Cost of sales

Interest and finance charges :

(a) for manufacturing activity

(b) Others (specify)

Total

cost

generation

(excluding electricity duty and

other statutory levies) transferred

to Proforma 'D'

Add

Shortfall

minimum

offtake quantity of power by

Electricity Board, etc.

Total (20+21)

sold,

sales

realisation

(excluding electricity duty and

other statutory levies)

Margin (23-22)

Notes:-

1.-

Separate plantwise/unitwise Proforma shall be prepared for each type of

generation viz. Hydro-electric, Thermal, Atomic etc.

THE GAZETTE OF INDIA: EXTRAORDINARY

[FART II—SEC, 3(i)]

2 -

Separate proforma shall be prepared for the power used for captive

consumption, power sold within the country and the power exported.

Expenses incurred on export and the incentive earned thereon shall be

indicated in the proforma applicable for the quantity produced and exported.

3 -

Separate proforma shall be prepared in respect of related party transactions

referred to in para 21 of Schedule.

4.-

Cost per unit shall be computed with reference to net units of power

generated.

Delete items not applicable.

_47

Profonma^fD'

Name of the company :

Name and address of the transmitting unit:

Statement showing the cost of Transmission/Distribution during the year/period

Quantitative Information:

Serial

No.

A1.

B1.

Particulars

Installed capacity

Power received from generating units

including purchased, if any

Loss in transmission/distribution

Self consumption for employees and

office

Net power transmitted/distributed

Length of transmission/Distribution lines

Gross fixed assets at the end of the

year/period (Rs./Lakhs)

Net fixed assets at the end of the

year/period (Rs./Lakhs)

Date of commissioning

Unit

Current

Year

Hrxtt fnfrtrmflt'lrtn-

Serial

No.

Particulars

Cost of power:

(a) self generated transferred

from Proforma 'C

(b) purchased -

(i) Thermal

(ii) Hydro-electric

(iii) Atomic, etc.

Utilities, if any (specify)

Direct wages and salaries

Consumable stores and spares

Repairs and maintenance:

(a) Sub-station

(b) Transmission lines

Insurance

Depreciation

Lease rent, if any

Qua

ntity

Rate

(Rupe

es per

unit)

Amount

(Rupees)

Cost per unit

Current

Year

(Rupees)

Year

(Rupees)

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SEC. 3(t)l

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Royalty or technical know-how

fee, if any (specify)

Research and development

Other plant overheads

Administrative overheads:

(a) Salaries and wages

(b) Others (specify)

Total (1 to 12)

Less: Credits, if any (specify)

Cost of transmission/distribution

Selling expenses, if any

Cost of sales

Interest and finance charges :

(a) for manufacturing activity

(b) Others (specify)

Total

cost

transmission/

distribution

transferred

Proforma 'E'

sold,

sales

realisation

(excluding electricity duty and

other statutory levies, if any)

Margin (20-19)

Add: Export benefits and

incentives, if any

Total Margin (21 + 22)

Notes: -

1. Separate proforma shall be prepared for working out cost of transmission and

cost of distribution.

2. Proforma used for working out cost of transmission shall be named as D-l and

shall be prepared for each major zones/areas.

3. Proforma used for working out cost of distribution after suitably modifying the

above proforma, shall be named as D-l I and shall be prepared voltage-wise for

each major zones/areas.

4. Separate proforma shall be prepared for the power used for captive

consumption, power sold within the country and the power exported. Expenses

incurred on export and the incentive earned thereon shall be indicated in the

proforma applicable for the quantity produced and exported.

5. Separate proforma shall be prepared in respect of related party transactions

referred to in para 21 of Schedule.

6. If the company enters into a wheeling arrangement for transmission, necessary

payment/receipt may be recorded as separate item under this proforma.

7. Delete items not applicable.

Proforma 'E'

Name of the company :

Name and address of the supplying unit:

Statement showing the cost of supply (consumer servicing and billing, etc.) during

the year/period:

I. Quantitatlva Information'

Serial

Number

A1.

B1.

II.

Seri

No.

Particulars

Installed capacity

Power received

Power supplied :

(a)

Domestic

(b)

Commercial

(c)

Industrial

(d)

Public Lighting

(e)

Agriculture

(f)

Others

Total (a to f)

Losses

Area covered (square KM)

Gross fixed assets at the end of the

year/period (Rs./LaJ<hs)

Net fixed assets at the end of the

year/period (Rs,/Lakhs)

Date of commissioning

Cost Information:

Particulars

Cost of Power:

(a) transferred from

Proforma 'D'

(b) purchased

Wages and salaries:

(a)

Maintenance of lines

(b)

Billing including meter

reading

(c)

Others( specify)

Sub total (a to c)

Consumables stores and

Qty

Current Year

Previous Year

Number

of consu-

mers

Unit

Number

of consu-

mers

Unit

Rate

(Rs.

per

unit)

Amount

(Rupees)

Cost per unit

Current

year

r^{JRupees)^}

Previo-us

Year

(Rupees)

'.i^y c//y^/-y

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SBC, 3(i)l

spares

Servicing and contract work

Insurance

Depreciation

Lease rent, if any

Other supply overheads

Administrative overhead :

(a) Salaries and wages

(b) Others (specify)

Total (1 to 8)

Selling expenses

Interest (net of interest on

consumer deposits)

Total cost of sales

Sales realization

Margin (14-13)

Average sale realization

(a)

Domestic

(b)

Commercial

(c)

Industrial

(d)

Public Lighting

(e)

Agriculture

(f)

others

Notes:-

1. Separate proforma shall be prepared voltage-wise for working out cost of

supply of major zones/areas.

2. Delete items not applicable

PROFORMA 'F'

Name of the company :

Statement showing the allocation/apportionment of total expenses/ income of the

company between activities covered under rule 2 and other activities during the

year/period :

Serial

No.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

Particulars

Material/fuel (specify)

Process materials and

chemicals

Utilities, if any (specify)

Wages and salaries

Consumable stores and

spares

Repairs and maintenance

Insurance

Depreciation

Lease rent

Royalty and technical

know-how fee, if any

Research and

development

Works overheads

Administrative overheads

Total (1 to 13)

(a) Fixed

(b) Variable

Stock Adjustment, if any

Less : Credits, if any

Self Consumption, if any

Interest Charges

Selling expenses

Add : any other expenses

not included in cost

Less : any other income

not considered in cost

Total

actual

expenses

Share applicable to activities

covered under rule 2

Gene-

ration

Trans-

mission

Distrib-

ution

Supp

ly/billi

applicable

to other

activities

Basis

alloca

tion

^f ^

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—Shc.3(i)]

23.

24.

25.

26.

Total cost of sales

(excluding electricity duty

and other statutory levies,

if any)

Sales realisation

(excluding electricity duty

and other statutory levies,

if any)

Margin (23-22)

Add : Export benefits and

incentives, if any

Total margin (24+25)

Notes:-

1. All items of income and expenditure in this Proforma shall be reconciled with

the financial accounts for the relevant period/year.

2. Delete items not applicable

[F. No. 52/13/CAB-2001]

A. RAMASWAMY. Jt. Secy.

Printed by the Manager, Oovt. of India Prew, Ring Road, Mayapuri, New Delhi-110064

and Published by the Controller of Publications, Delhi-110054.