Section 7: Accounting measures

(1)The State Government shall ensure that the State Distribution Licensees establish, within six months from the date of coming into force of this Act, an Empowered Committee to ensure identification, provisioning and write offs of receivables and bad and doubtful debts in the books of accounts of the State Distribution Licensee: Provided that the State Distribution Licensees shall prepare accounting policies which shall provide for its financial management and management of its receivables and provisioning for bad and doubtful debts containing timeline for writing them off. (2) The State Government shall ensure that the Distribution Licensees complete physical verification and prepare fixed assets register as per accounting standards prescribed under the Companies Act, 2013 (Central Act No. 18 of 2013) within two years of the enactment of this Act. (3) The State Government shall, by notification in the Official Gazette, establish an Empowered Committee for each State Distribution Licensee. The Empowered Committee shall consist of the following namely:- (i) Secretary in charge of the Energy Department of the State - Chairperson; (ii) Managing Director of the State Distribution - Member- 9 Licensee Secretary; and (iii) Director (Finance) of the State Distribution Licensee concerned - Member Explanation.- For the purpose of this sub-section, “Secretary in charge” means the Secretary in charge of the Department and includes an Additional Chief Secretary and Principal Secretary when he is in charge of a department.