“fact Ho Hho Uete-33004 Hid a The Gazette of Audia EXTRAORDINARY rT 11—avg 330 (il) PARTAI—Section 3Sub-seetion (i) vif & werner 7 PUBLISHED BY AUTHORITY 2530) “aad feeet, amare, Feet 20, 2070/rmeTaT 2 No. 2530), NEW DELHI, MONDAY, DECEMBER 20, 2010/AGRAHAYANA 29, 1932 REGD.NO.D.L.-3300499 738 feeeft, 20 fear, 2010 ‘aor am, 2979(at) afar spe 150 BAT wee ert a weilr ace eT, eT at ZU TERED A frie wd aertervtan st Fore & freafafad car Here Fruits et, Faiq—vea RHR TAT A, THT aT wen ian; a, Ter ed a ea a (PaMracee afi) wt acer cera gH wes svi wees ea sree | 2. ane Hart Ben Be | ax alte aoa ae fate Parent A marl gra at Tell ete wae dah arrest at fate wet t, rei, ‘aca GT Wem fea were — (), (1) 5 Bea she aa went eae F aE 292 sie 293 at flea Bh sh Are eh reat “soa at anced avert at tera sere ae ag se wh eae Fae aren Tet ane Paalita I ae, Se Bde mene gra zoel ee aa BT aera, Hae yo aA TUM sree the ap ales eT wt stern, THT ART, ie aeart deonail at site 8 fee sere we ATA Ua see BT aay Be Fare Te eet CA vera eq EAT sh ete em are gre ret feed ia, ara art th feet een at ere wt aree ara sik sara seer, ae samt Gee, shee pe ee eel aree ee aq ah ahr, Fre, ard fa ote mere at eee arte Pat wg er ey oT fea were a et 1 eae safe, sox aa ar site fee eens, Frket ae card, Preah wean, afeerant ofc worefermail ed qe a aah seer, wa sree ate ae we TATAT sgt ah arcret a eid fore me aed sage a vt onefead a oh € ai Ace fate smelter I oa eta aoe Pe yes ae oe a a aT eA amet ee A a et Mes fore aTt—w aTe we a TA cert a 1 ere Pret ct ahaa at cen fae A fateh aahra ai art are eall star feast Bee fe Poorer wre oh ah Eb ae fe, se wear aha ste Prva gro at art are Sa af afe ee sonal afe aftc aera we OMA & forged oh wet stat wi aed Se G1 vet we, Tes eee sik tH es Ae (faurrise ate) a wear grr area at art & (2) sat iain frm, geant sahral, wean derail, facta cera, ee Frere she wifiereot at gee eatirs fers te bara: & ed EMH fre moet GE 1 eae feces Pe a eR gre Te wR aT aeeT 4921 Gu2010 w uss2 ___‘THE GAZETTE OF INDIA: EXTRAORDINARY __[Pat II—-See. 3(i)] she ra var wean at ae eed at ere fe ee Paar | ga a een aratera aor a a se at Ha seg fer} are ard reer ee ae we aT eT ao wher | ens, ee ea re A ar feat arene ag are gro Sth ett meet at Seat Ie eM email a wae a eA ers eT EH ar gars wee eh | een war een aes wa ge & te afer 2a ater safes ae Bet Se eee wait! 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(vi) wed fare ait sere; (vil) sr see; (viii) VEE sweet fener — (2) we ser eee wr Ser eT eet TT lr fre ane er ik a wea a aa ee “ah ret (Fee er arn) te feo ae were fe For 1-4-2010 FH see gee aT AT seater far fern fare were et SET | (3) arabe 63 fafa wan sage Tes Sot fine rare wae ae AEE ce THT ACT se prerrnines afrs a a oy BH eee ft Perel A er wet ee see fran ae | ere ann ae oer wend ateee alt tha facies (ae condfeat st ee) caftraran wedges wT (eI) afta (oA) anfeal a agar) (=a) aie (wIR) “4 2 3 4 s 2 aie drm em) wee ata A aarT Oe weer seen OH serene fare Sifter Seifert (ere) wer we aint 6 z 8 9 10 a (Ce) ae eee a aed ea a at weal fea Pert oe se Se wah sn se: A ee t otra ferro : feat % fere, Wh (sent siete ate wewed atte va oh der Pac (ee antec tem) airmen media) marr (Bw) fea (wa) ate at hewD) (a) vafet (ee) 1 2 3 4 s - aS OS ee Saif ‘srifea 7 (BAT) we et aint 6 7 8 9 “10 I saree Bot bq ra ita: een wa aot ait a wie der wiewee iat at & dhe facta (wee Garew Saints affraid marr (em) ate (owe) fee si lew) (aU) anifedi adem) aft (eT) 1 2 3 4 5 a arra (Waseda wa se sem UH aa Fer Sie iT wre) rT ang % 7 a 3 on vara a oat ore,(em are 343i) MINISTRY OF FINANCE, (Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION ‘New Delhi the 20th December, 2010 S.0, 2979(E)—In exercise ofthe powers conferred by article 150 ofthe Constitution, the President of India, onthe aaviee ofthe Comptroller and Auditor General of India, hereby makes the following accounting standard namely--- Indian Government Accounting Standards, Guarantees given by Governments: Disclosure Requirements relating tothe form of accounts ofthe Union, States and Union Teritory Governments (with legislature). 2 The Indian Government Accounting Standards specifies the disclosure requirements in the Financial Stte- ‘ments ofthe Union and the State Governments of Guarantees given by Governments, namely: — Guarantees given by Governments: Disclosure Requirements Introduction — A. (A) The Union Government and the State Governments give Guarantees for repayment of borrowings within such limits, fany, as may be fixed upon the security ofthe Consolidated Fund of India or of the State, as the ease may be, in terms ‘of articles 292 and 298 of the Constitution. Guarantees are also given by the Union Government for payment of interest on borrowings, repayment of share capital and payment of minimum annual dividend, payment against agreements for sup- plies of materials and equipments on credit basis on behalf ofthe State Governments, Union territories, local bodies railways, government companies or corporations, joint stock companies, financial institutions, port tuts, electricity boards and co-operative institutions. Guarantees are also given by the Union Government to the Reserve Bank of India, other banks and financial institutions for repayment of principal and payment of interest, cash credit facility, financing seasonal agricultural operations and for providing working capital in respect of companies, corporations, co-operative societies and co-operative banks. Further, guarantees are also given in pursuance of agreements entered into by the Union Government wit international financial institutions, foreign lending agencies, foreign governments, contactors and con- sultans towards repayment of principal, payment of interest and payment of commitment charges on loans. The Uiion Government also gives performance guarantees for fulfilment of contracts or projects awarded to Indian companies in foreign countries as well as foreign companies in foreign countries besides counter-guarantees to banks in consideration ofthe banks having issued leters of credit to foreign suppliers for supplies or services rendered by them on credit hasis in favour of companies or corporations. Furthermore, guarantees are given by the Union Government to railways, and electricity boards for duc and punctual payment of dues and freight charges by the companies and corporations. Similarly Guarantees are also given by the State Governments and Union Teritory Governments (with legislature) 2) As the statutory corporations, government companies, co-operative institutions, financial institutions, au- ‘onomous bodies and authorities are distinct legal entities, they ae responsible for their debts. Their financial obligations ‘may be guaranteed by @ Government and thus the Government hasa commitment to sce that these are fulfilled, When these entities borrow directly from the market, it reduces a Government's budgetary support to them and the magnitude of a Government's borrowings. However, it adds to the level of Guarantees given by the Governments. In consideration ofthe Guarantees given by the Governments, the beneficiary entities are required to pay guarantee commission or fe tothe Govermments. The Guarantees have an important economic influence and result in transactions or other economic flows when the relevant event ot conditions actually occur. Thus, Guarantees normally constitute contingent lability of the Governments B. Objective — ‘The objective of this Standard is to set out disclosure norms in respect of Guarantees given by the Union, the State Goverments and Union Territory Governments (with legislature in their respective Financial Statements to ensue uniform and complete disclosure of such Guarantees. ©. Seope— (1) This Standard applies to preparation of the Statement of Guarantees for inclusion and presentation in the Financial Statements of the Governments. Financial Statements should not be described as complying with this Standard unless these comply with all its requirements, @) The Authority in the Government which prepares the Statement of Guarantees for inclusion and presentation in the Financial Statements shall apply this Standard, The Accounting Authority is responsible for inclusion and presentation of the Statement of Guarantees in the Financial Statements as provided by the Authority in the Government. YE AG Ie ~‘THE GAZETTE OF INDIA: EXTRAORDINARY, [Pane Sec. 3G) In this Standard, unless the context otherwise requires, - (@) Accounting Authority.—means the Authority which prepares the Financial Statements ofthe Government: (©) Authority in the Government.—means the tracking (monitoring) unit or Authority for Guarantees and ints absence, the Ministry or the Department of Finance, s the case may be; (©) Automatic Debit Mechanism.—means the arrangement whereby the Government’ cash balance is affected on a specified ‘ate or on the occurrence of specified events to meet certain obligations arising out of Guarantees given by its (@) Financial Statements.—mean the Annual Finance Accounts ofthe Governments; (©) Guarantee.—means an accessory contract, by which the promisor undertakes tobe answerable to the prom- isee forthe debt, default ormiscarriage of another person, whose primary liability to the promise must exist or be contemplated; and (© Structured :Payment Arrangement.—means the arangement whereby the Government agrees to transfer funds to the designated account in case the beneficiary entity fails to ensure availability of adequate funds for servicing the debts, as per stipulations. E. Disclosure.— (1) The Financial Statements ofthe Union Government, the State Governments andthe Union Territory Governments (with legistature) shall disclose the following details conceming class or sector of Guarantees in the format specified in paragraph M: (@)_ maximum amount for which Guarantees have been given during the year, additions and deletions (other than invoked during the year) as well as Guarantees outstanding atthe beginning and end of the year, (b) amount of Guarantees invoked and discharged or not discharged during the year; (©) details of Guarantee commission or fee and its realisation; and (@ oxher material details (2) The Financial Statements of the Union Government, the State Governments and the Governments of Union “Teritoris (with legislature) shal disclose in the notes the following details conceming class or seetor of Guaran- tees (@) limit, ifany, fixed within which the Government may give Guarantee; (6) whether Guarantee Redemption or Reserve Fund exists and its details including disclosure of balance avail- able inthe Fund a the beginning ofthe year, any payments made and balance atthe end ofthe year (©) details of subsisting external foreign currency guarantes in terms of Indian rupees on the date of Financial Statements; (@) details concerning Automatic Debit Mechanism and Structured Payment Arrangement, if any (©) whether the budget documents of the Government contain details of Guarantees; (© details ofthe tracking unit or designated authority for Guarantees inthe Government; and () other material details The Financial Statements disclose whether details of Guarantees are published in the annual budget presented to the Parliament and State Legislature, as the case may be G __Imorder that a proper database is maintained for all Guarantees annually sanctioned, annulled and outstanding, a tracking unit for Guarantees is usually designated inthe Ministry or Department of Finance in the respective Governments The Financial Statements disclose the details concerning the tracking unit for guarantees or any concemed authority in charge ofthis responsibility HL Many Governments have setup either a Guarantee Redemption Fund or a Guarantee Reserve Fund. Some Govern- iments have made arrangement for Automatic Debit Mechanism for discharging the obligations arising out of such Guaran- tees executed by the Government, There are also Structured Payment Arrangements. The Financial Statements disclose full details concerning these arrangements. L When Guarantees are invoked and payments made, the payment is treated as loan to the beneficiary on whose ‘behalf the Guarantees were given and recoveries there-against are monitored. The expenditure, loan and recoveries are distinctly classified inthe Financial Statements. If, in due course, the whole or part ofthe loan amount is finally held to be(srr are 3¢4)) A TH: SITET imecoverable, the same is adjusted (a) where a Guarantee Reserve Fund exists, by debit to such Fund and (b) where the Guarantee Reserve Fund does not exist, by debit o “recoverable loan writen off” under the function for which the loan has been guaranteed and where the purpose cannot be identified, by debit to “Miscellaneous General Services” J. Forthe purposes of paragraphs E and M the class or sector under which disclosure in the Financial Statements of the Union Government, the State Governments and Union Territory Governments (with legislature) shall be made are as below:— Class (Guarantees given to the Reserve Bank of India other banks and financial institutions for repayment of principal and payment of interest, cash credit facility, financing seasonal agricultural operations and for providing working, capital to companies, corporations and cooperative societies and banks; (i) Guarantees given for repayment of share capital, payment of minimum annual dividend and repayment of bonds or loans, debentures issued or raised by the statutory corporations and financial institutions; (ii) Guarantees given in pursuance of agreements entered into by the Government of India with international financial institutions, foreign lending agencies, foreign governments, foreign contractors, foreign supplies and foreign ‘consultants towards repayment of principal, payment of interest or commitment charges on loans and for payment ‘against supplies of material and equipment or for services rendered: Gv) Counter-guarantees to banks in consideration of the banks having issued letters of credit to foreign suppliers for supplies made or services rendered; (¥) Guarantees given to Railways/State Electricity Boards and other entities for due and punctual payment of dues by ‘companies or corporations; (08) Performance guarantees given for fulfilment of contracts or projects awarded to Indian companies or eorporations in foreign countries; (vii) Performance guarantees given for fulfilment of contracts or projects awarded to foreign companies or corpora- tions in foreign countries; (vii) Any other. Sector @ Power; (Co-operative; ii) _trigation; Gv) Roads and Transport; (¥) State Financial Corporations; (vi) Urban Development and Housing; (vi) Other Infrastructure; (iil) Any other. Effective date. K. This Indian Government Accounting Standard becomes effective for Financial Statements covering periods beginning on or after 1-4-2010 for class-wise disclosures inthe Financial Statements ofthe Union Government and sector- ‘wise disclosures in the Financial Statements ofthe State Governments and Union Territory Governments (with legislature), L___Sector-wise disclosures for each class, as per the format specified in paragraph M are encouraged to be made in the Financial Statements of the Union Government as well asthe State Governments or Union Territory Governments with legislature. Sector(No.of Maximumamount Outstanding at the Additions during Deletions (other than Guarantees ‘guaranteed beginning of the the year (Rs.) invoked) during the Within bracket) during the year (Rs.) _year(Rs.) year (Rs.) 1 2 3 4 5 - Invoked during the Outstanding atthe Guarantee Commission ———_—Other material details year(Rs.) ___endof the year (Rs.) or foe (Rs.) ~ Discharged Not Receivable “Received Discharged 6 7 8 we8 THE GAZETTE OF INDIA: EXTRAORDINARY [Per MS, 3 Formats for diselosure M__ Formats for class-wise and sector-wise disclosures in the Financial Statements of the Union Government and the State/UT Governments respectively are given below: (Class-wise details: For warantees Class (No.of Maximumamount Outstanding at the Additions during Deletions (other than Guarantees guaranteed during beginning of the the year (Rs.) invoked) during the within brackets) the year (Rs.) year (RS) year(Rs.) 1 a 3 7 4 3 Invoked during the Outstanding at the Guarantee Commission Other material deta year(Rs.) end af the year (Rs.) or fee (Rs.) Discharged Not Receivable Received Discharged _6 7 8 9 0 f ‘Sector-wise details for each Class : For Guarantees (Class and Sector‘ Maximumamount Outstanding at the Additions during Deletions (other than (No.of Guarantees guaranteed during beginning of the the year(Rs.) invoked) during the within bracket) the year (Rs.) year (Rs.) year(Rs.) 1 2 3 4 Invoked during the ‘Outstanding at the Guarantee Commission (Other material details vyear(Rs.) end ofthe year (Rs.) or fee(Rs.) Discharged Not Receivable «RECENT Discharged 9 0 W 6 7 By Order of the President of India SHAKTIKANTA DAS, Jt Secy. Printed by the Manager, Goveroment of India res, Ring Road, Mayapur, Now Delhi-1 10068 and Published by the Controller of Publications, Delhi-1 10054,