(1) The trading licensee shall conduct study on its total financial planning, budgeting and restructuring to determine an optimal capital structure, including key financial parameters which the trading licensee shall follow in order to monitor its financial performance.
(2) Unless otherwise permitted by the Commission the financial year of the trading licensee for the purposes of these general conditions, contained in these regulations, and matters relating to the licensed business shall run from the first of April to the following thirty-first of March.
(3) The trading licensee shall, in respect of the licensed business and any other business, -
(a) keep such accounting records as would be required to be kept in respect of each such business so that the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to the licensed business are separately identifiable in the books of the trading licensee, from those of other business in which the trading licensee may be engaged;
(b) prepare on a consistent basis from such accounting records and deliver to the Commission, the accounting statements, namely:-
(1) in respect of the first six months of each financial year, a half yearly profit and loss account, cash flow statement and balance sheet together with such supporting documents and information, as the Commission may direct from time to time. Such statements and documents shall be published in the manner directed by the Commission;
(2) in respect of the accounting statements prepared, an auditor’s report for each financial year, stating whether in their opinion these statements have been properly prepared in accordance with this clause and give a true and fair view of the revenues, costs, assets, liabilities, reserves and provisions of, or reasonably attributable to such business to which the statements relate; and
(3) a copy of each half yearly 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.
Compendium of HPERC Regulations, March 2021 5
(4) The trading licensee shall not normally change the basis of charge or apportionment or allocation of revenues or expenses in relation to the preparation of the accounting statements in respect of a financial year from those applied in respect of the previous financial year, without prior intimation to the Commission. Any change, if proposed, in the basis of charge or apportionment of revenues or expenses shall be consistent with the provisions of the Companies Act, 1956, (1 of 1956) the accounting standards or regulations and any guidelines issued by the Commission in this regard.
(5) Where, in relation to the accounting statements in respect of a financial year, the trading licensee has changed the basis of charge or apportionment or allocation from those adopted for the immediately preceding financial year, the trading licensee shall, if directed by the Commission, (in addition to preparing accounting statements on those basis which it has adopted), prepare and deliver to the Commission such accounting statements on the basis which it applied in respect of the immediately preceding financial year.
(6) The accounting statements under sub-regulation (3) shall, unless or otherwise approved or directed by the Commission, -
(a) be prepared and published with the annual accounts of the trading licensee, in the manner provided herein;
(b) state the accounting policies adopted;
(c) be prepared in accordance with generally accepted Indian accounting standards; and
(d) be prepared in the form as the Commission may stipulate from time to time.
(7) The references to costs or liabilities of, or reasonably attributable to licensed business or other business shall be construed as excluding taxation, and capital liabilities which do not relate principally to such business and interest thereon.
(8) The trading licensee shall ensure that the accounting statements in respect of each financial year prepared under sub-regulation (3) and the auditor’s report in respect of each financial year are publicised in such manner as the Commission may direct and are made available to any person requesting them at a price not exceeding the reasonable cost of duplicating them.