HARYANA ELECTRICITY REGULATORY COMMISSION
SCO 180, SECTOR 5, PANCHKULA 134 109, HARYANA

FILING NO. 4 OF 2001

Date of Order: 30.01.2001

In the matter of Application filed by Haryana Vidyut Prasaran Nigam Limited for extension of time upto 31.03.2001 for filing of Copies of Accounting Statements and Auditors Repot for the financial year 1999-2000for the Distribution and Retail Supply Business.

Present:

Shri V. S. Ailawadi, Chairman
Shri R. Chandra, Member
Shri K. S. Chaube, Member

ORDER

This application has been filed by the HVPNL, licensee for extension of time upto 31.03.2001 for filing Accounting Statements and Auditors Report for the financial year 1999-2000.

As per clause 8.2 (d) of the Distribution and Retail Supply Licence HVPNL has to submit to the Commission copies of the Accounting Statements and Auditors Report not later than six months after the end of the financial year to which they relate. Accordingly HVPNL had to file the Accounting Statements and Auditors Report for the financial year 1999-2000 by 30.09.2000. An application was filed by the HVPNL on 03.10.2000 requesting the Commission to grant an extension of three months i.e. upto 31.12.2000 for filing the Accounting Statements and Auditors Report for the year ending 31.03.2000. The Commission sought information from the HVPNL as to whether it had obtained the permission from the Registrar of companies prescribed under the Company Law for filing the report after 30.9.2000. Letter No. 1747/HER/PRO – 2 of 2000, dated 15/18.12.2000 was written to the Managing Director, HVPNL in this connection but no reply to this letter has been received. Now the present application has been filed by the HVPNL for extension of time upto 31.03.2001 for filing Accounting Statements and Auditors Report for the financial year 1999-2000.

No valid ground for extension has been given in the application. Sh. M.K. Mittal, CAO during his oral submissions explained that they have obtained one time extension from the Registrar of Companies for submission of Accounts for the financial year 1999-2000 as a result of the meeting held by the Chief Secretary, Haryana with the Registrar of companies. Mr. Mittal submitted that Government of Haryana has issued a circular in this respect. Sh. Mittal was directed to send a copy of the minutes of the meeting held by the Chief Secretary with the Registrar of companies   and also a copy of the circular issued by the Government of Haryana. Sh. Mittal explained that unaudited accounts for the year 1999-2000 had been compiled and also approved by the Board of the company. The accounting Statements and Auditors Report were required to be submitted to the Commission upto 30.09.2000 as per licence condition 8.2(d). The licensee did not care to send reply to the information sought by the Commission vide its letter dated 15/18.12.2000. Extension has been sought on the ground of delay in the finalization of accounts. This ground is hardly tenable as this shows the laxity of administrative control in the utility. The Commission feels that submission of Accounting Statement and Auditors Report is an important requirement under the licence conditions and the Commission must have it in time to satisfying itself that the funds under various heads were being utilized in an efficient and economical manner. Accounting Statement and Auditors Report is also an important document which has a bearing on the proper analysis is of the ARR of the utility. During the hearing on the applications filed by the HVPNL for the approval of ARRs for the financial year 1999-2000 and Tariffs there were strong protests from the public about the non availability of the audited accounts for the financial year 1999-2000 because this denied the public the opportunity of making many meaningful comments. The Commission is expected to set up a process in which the public is afforded ample opportunity to comment on the working of the licencee and also on the revenue requirement as projected by the licensee. This process will be seriously jeopardized if such like important information is not made available at the right time.

After taking into account all the relevant factors, the Commission grants extension of time upto 31.03.2001 for filing Accounting Statements and Auditors Report for the financial year 1999-2000.

Dated: 30^th January, 2001

Place: Panchkula