Appendix 13

COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988

[Issued by the Ministry of Industry, Department of Company Affairs vide File No. 14/46/85‑CL.V dated 31‑12‑1988.]

NOTIFICATION

GSR No. 1029‑ In exercise of the powers conferred by section 642 read with clause (e) of subsection (1) of section 217 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, namely:

(1) These rules, may be called the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988.

(2) They shall come into force on the 1st day of April, 1989.

2. Every company shall, in the report of its Board of directors disclosure particulars with respect to the following matters, namely:

(A) Conservation of energy

(a) energy conservation measures taken;

(b) additional investments and proposals, if any, being implemented for reduction of consumption of energy;

(c) impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods;

(d) total energy consumption and energy consumption per unit of production as per Form‑A of the Annexure in respect of industries specified in the Schedule thereto.

(B) Technology Absorption

(e) efforts made in technology absorption as per Form‑B of the Annexure;

(C) Foreign Exchange Earnings and Outgo

(f) activities relating to exports; initiatives taken to increase exports; development of new export markets for products and services; and export plans;

(g) total foreign exchange used and earned.

Sd/-

(U.P.MATHUR)

Director.

ANNEXURE

FORM A

(See Rule 2)

Form for disclosure of particulars with respect to conservation of energy

(A) Power and Fuel Consumption

1. Electricity (a) Purchased Unit Total Amount Rate/Unit		Current Year	Previous year
	(b) Own Generation (i) Through Diesel Generator Unit Units per Ltr. of Diesel Oil Cost/Unit (ii) Through Steam Turbine/Generator Units Units per Ltr. of Fuel oil/Gas Cost/Unit
	2. Coal (Specify Quality and where used) Qty. (Tonnes) Total Cost Avg. Rate
	3. Furnace Oil Qty. (K. Ltrs.) Total Amount Avg. Rate
	4. Otherstinternal generation (please give details) Qty. Total Cost Rate/Unit

(B) Consumption per unit production

	Standard (if any)	Current year	Previous year
		1	2
Products (with) details unit
Electricity
Furnace Oil
Coal (specify quality)
Others (specify)

Notes:

1. Please give separate details for different products/items produced by the company and covered under these rules.

2. Please give reasons for variation in the consumption of power and fuel from standard and previous year.

3. In case of production of different varieties/specifications consumption details may be given for equivalent production.

SCHEDULE

(See Rule 2)

List of industries which should furnish information in Form A

(1) Textile; (2) Fertilizer; (3) Aluminium; (4) Steel; (5) Refineries; (6) Petro‑chemicals; (7) Cement; (8) Dairy & Food Processing; (9) Cold Storage Plant; (10) Electric Arc Furnaces; (11) Chlor Alkali; (12) Edible Oil; (13) Engineering (Steel forging and re‑rolling); (14) Glass; (15) Jute; (16) Paper; (17) Refractory and Pottery; (18) Tea; (19) Tyre; (20) Sugar; (21) Drugs & Pharmaceuticals.

Guidelines for filling the form:

1. Particulars of conservation of energy to be given in this form in the Board's Report should include the details as required for only the financial year for which the Board's Report made.

2. Any default in including the disclosures in the Board's Report is punishable with imprisonment for a term of 6 months or with fine of up to Rs. 20,000/‑ or with both.

3. For the text of the Specimen filled up Form, refer BHANDARI'S GUIDE TO COMPANY LAW PROCEDURES Vol. 3.

4. For Specimen Drafts of Company Precedents, Agreements, Deeds and Documentations, see BHANDARI'S GUIDE TO COMPANY LAW PROCEDURES, Vol, 4, (17th Edn., 2002).

FORM B

(See Rule 2)

Form for disclosure of particulars with respect to Absorption

Research and Development (R & D)

1. Specific areas in which R & D carried out by the Company.

2. Benefit derived as a result of the above R & D.

3. Future Plan of action.

4. Expenditure on R & D

(a) Capital.

(b) Recurring.

(d) Total R & D expenditure as a percentage of total turnover.

Technology absorption, adaptation and innovation

1. Efforts, in brief, made towards technology absorption, adaptation and innovation.

2. Benefit derived as a result of the above efforts e.g. product improvement, cost reduction, product development, import substitution, etc.

3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year), following information may be furnished

(a) Technology imported.

(b) Year of Import.

(d) If not fully absorbed, areas where this has not taken place, reasons therefor, and future plans of action.

PARTICULARS IN DIRECTORS' REPORT WITH RESPECT TO CONSERVATION OF ENERGY, ETC.‑EFFECTIVE DATE

GSR No. 1028‑ In exercise of the powers conferred by sub‑section (2) of section 1 of the Companies (Amendment) Act, 1988 (31 of 1988), the Central Government hereby appoints the lst day of April, 1989 as the date on which the provisions of section 30(a) (in so far as it relates to inclusion of particulars with respect to the conservation of energy, technology absorption, and foreign exchange earnings and outgo) shall come into force.

[Issued by the Ministry of Industry, Department of Company Affairs vide File No. 14/46/85‑CL-V, dated 31‑12‑ 1988]

Guidelines for filling the form:

1. Details in this form is to be given even for these industries which are not included in Schedule to Form A.

2. Any default made in giving the disclosures is punishable with imprisonment of 6 month or with fine of up to Rs. 20,000/‑ or with both.

3. For the text of the Specimen filled up Form, refer BHANDARI'S GUIDE TO COMPANY LAW PROCEDURES Vol. 3.

4. For Specimen Drafts of Company Precedents, Agreements, Deeds and Documentations, see BHANDARI'S GUIDE TO COMPANY LAW PROCEDURES, Vol. 4, (17th Edn., 2002).