(1) These rules may be called the Competition Commission of India (Form of Annual Statement of Accounts) Rules, 2009.

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

(1) In these rules, unless the context otherwise requires,

(a) Act means the Competition Act, 2002 (12 of 2003);

(b) Commission means the Competition Commission of India established under sub-section (1) of Section 7 of the Act;

(c) Fund means the Competition Fund constituted under sub-section (1) of Section 51 of the Act;

(d) Form means Form annexed to these rules;

(e) Schedule means the Schedule to the form annexed to these rules;

(f) Year means the financial year beginning on 1st April and ending on 31st March of the year immediately following.

(2) The words and expressions used in these rules but not defined shall have the same meanings respectively assigned to them in the Act.

The Commission shall maintain its accounts in the Form of financial statements annexed to these rules. In maintaining the financial statements, the Commission shall follow the instructions and accounting principles as are indicated by the Central Government from time to time.

Every officer of the Commission incurring or authorizing expenditure from the Competition Fund should be guided by the Standards of financial propriety and other rules of General Financial Rules, 2005.

(1) At the end of a period of twelve months ending with 31st March of every year, the Commission shall prepare the following financial statements along with necessary schedules, notes on accounts and significant accounting policies in accordance with the notes and instructions for compilation of financial statements prescribed by Government of India, Ministry of Finance, Controller-General of Accounts as modified and annexed to these rules:

(i) balance sheet,

(ii) income and expenditure account,

(iii) receipt and payment account.

(2) The balance sheet, income and expenditure account and receipt and payment account and the schedules referred to in sub-rule (1), shall be approved and adopted by the Commission or a Committee authorised by the Commission in this behalf and, for purposes of authentication, be signed by the Chairman and one Member of the Commission.

(3) The approved accounts of the Commission shall be forwarded by the Commission to the Comptroller and Auditor-General of India or any other person appointed by him on his behalf within three months after the expiry of the year for the purposes of audit.

(4) The annual accounts of the Commission, as certified by the Comptroller and Auditor General of India or any other person appointed by him in his behalf, together with the audit report thereon after adoption by the Commission shall be forwarded to the Central Government for laying before both the Houses of Parliament.

The Commission shall preserve the balance sheet, income and expenditure account, schedules to above statements, and the receipt and payment account, referred to in sub-rule (1) of Rule 4 for a minimum period of ten years, following the year to which they relate.

(See Rule 3)

Name of Entity:Competition Commission of India

(Amount Rs.)

For Competition Commission of India

MEMBER

CHAIRMAN

Place: Delhi

Date:

Receipt and Payment accounts for the period/year ended

(See Rule 5)

(Amount-Rs)

For Competition Commission of India

MEMBER

CHAIRMAN

Income and Expenditure Accounts

For the period/year ended

(See Rule 5)

(Amount-Rs)

For Competition Commission of India

MEMBER

CHAIRMAN

Place: Delhi

Date:

Competition Commission of India

Schedules forming part of balance sheet as at

(See Rule 5)

(Amount-Rs)

(Amount-Rs)

(Amount-Rs)

Notes. (1) Disclosures shall be made under relevant heads based on conditions attaching to the grants.

(2) Plan Funds received from the Central/State Governments are to be shown as separate Funds and not to be mixed up with any other Funds.

(Amount Rs)

(Amount Rs)

(Amount-Rs)

(Amount-Rs)

(Amount-Rs)

(Amount-Rs)

(Irrevocable Grants and Subsidies Received)

(Amount-Rs)

(Amount-Rs)

(Income on Invest. From Earmarked/Endowment Funds transferred to Funds)

(Amount-Rs.)

(Amount-Rs)

(Amount-Rs)

(Amount-Rs)

(Amount-Rs)

Other Administrative Expenses

(Amount-Rs)

(Amount-Rs)

Note. Name of the Entities, their Activities along with the amount of Grants/subsidies are to be disclosed.

(Amount-Rs)

1. Accounting Convention. The financial statements are prepared on the basis of historical cost convention, unless otherwise stated and on the accrual method of accounting. .

2. Investments

2.1 Investments classified as long term investments are carried at cost. Provision for decline, other than temporary, is made in carrying cost of such investments.

2.2 Investments classified as Current are carried at lower of cost and fair value. Provision for shortfall on the value of such investments is made for each investment considered individually and not on a global basis.

2.3 Cost includes acquisition expenses like brokerage, transfer stamps.

3. Fixed Assets

3.1 Fixed Assets are stated at cost of acquisition inclusive of inward freight, duties and taxes and incidental and direct expenses related to acquisition. In respect of projects involving construction, related pre-operational expenses (including interest on loans for specific project prior to its completion), form part of the value of the assets capitalized.

3.2 Fixed Assets received by way of non-monetary grants (other than towards the Corpus Fund), are capitalized at values stated, by corresponding credit to Capital Reserve.

4. Depreciation

4.1 Depreciation is provided on straight-line method as per rates specified in the Income Tax Act, 1961 except depreciation on cost adjustments arising on account of conversion of foreign currency liabilities for acquisition of fixed assets, which is amortized over the residual life of the respective assets.

4.2 In respect of additions to/deductions from fixed assets during the year, depreciation is considered on pro-rata basis.

4.3 Assets consisting Rs 5000 or less each are fully provided.

5. Miscellaneous expenditure. Deferred revenue expenditure is written off over a period of 5 years from the year it is incurred.

6. Accounting for sales. Sales include excise duty and are net of sales returns, rebate and trade discount.

7. Government Grants/Subsidies

7.1 Government grants of the nature of contribution towards capital cost of setting up projects are treated as Capital Reserve.

7.2 Grants in respect of specific fixed assets acquired are shown as a deduction from the cost of the related assets.

7.3 Government grants/subsidy are accounted on realization basis.

8. Foreign currency transactions

8.1 Transactions denominated in foreign currency are accounted at the exchange rate prevailing at the date of the transaction.

8.2 Current assets, foreign currency loans and current liabilities are converted at the exchange rate prevailing as at the year end and the resultant gain/loss is adjusted to cost of fixed assets, if the foreign currency liability related to fixed assets, and in other cases is considered to revenue.

Lease rentals are expensed with reference to lease terms.

10. Retirement Benefits

10.1 Liability towards gratuity payable on death/retirement of employees is accrued based on actuarial valuation.

10.2 Provision for accumulated leave encashment benefit to the employees is accrued and computed on the assumption that employees are entitled to receive the benefit as at each year end.

Contingent Liabilities and Notes on Accounts (Illustrative)

1. Contingent liabilities

1.1 Claims against the Entity not acknowledged as debts Rs .

(Previous year Rs )

1.2 In respect of:

Bank guarantees given by/on behalf of the Entity Rs .

(Previous year Rs )

Letters of Credit opened by Bank on behalf of the Entity Rs .

(Previous year Rs. )

Bills discounted with banks Rs

(Previous year Rs )

1.3 Disputed demands in respect of:

1.4 In respect claims from parties for non-execution of orders, but contested by the Entity-Rs (Previous year Rs )

2. Capital commitments

Estimated value of contracts remaining to be executed on capital account and not provided for (net of advances) Rs (Previous year Rs )

3. Lease obligations

Future obligations for rentals under finance lease arrangements for plant and machinery amount to Rs (Previous year Rs )

4. Current assets, loans and advances. In the opinion of the Management, the current assets, loans and advances have a value on realization in the ordinary course of business, equal at least to the aggregate amount shown in the Balance Sheet.

5. Taxation. In view of there being no taxable income under Income Tax Act, 1961, no provision for Income tax has been considered necessary.

6. Foreign Currency Transactions

6.1 Value of Imports calculated on C.I.F Basis:

Purchase of finished Goods.

Raw Materials & Components (Including in transit)

Capital Goods

Stores, Spares and Consumables

Expenditure in foreign currency:

(d) Travel

(e) Remittances and Interest payment to Financial Institutions/Banks in Foreign Currency

(f) Other expenditure:

- Commission on Sales

- Legal and Professional Expenses

- Miscellaneous Expenses

Earnings:

Value of Exports on FOB basis

Remuneration to auditors:

As Auditors

- Taxation matters

- For Management services

- For certification

Others

7. Corresponding figures for the previous year have been regrouped/rearranged, wherever necessary.

8. Schedules 1 to 23 are annexed to and form an integral part of the Balance Sheet as at and the Income and Expenditure Account for the year ended on that date.

1 Ministry of Corporate Affairs, Noti. No. G.S.R. 204(E), dated March 27, 2009, published in the Gazette of India, Extra., Part II, Section 3(i), dated 27th March, 2009, pp. 14-31, No. 174.