144allreports and statements shall be prepared in

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1.4.4Allreports and Statements shall be prepared in accordance with the Contract and the laws of India and, wheretherearenorelevantprovisionsineitherofthese,inaccordancewithgenerallyacceptedaccounting practicesintheinternationalpetroleumindustry. 1.4.5Eachoftheentities constituting the Contractor shall be responsible for maintaining its own accounting records in order to comply with all legal requirements and to support all returns or any other accounting reports required by any Government authority in relation to the Petroleum Operations. However, for the purposesofgivingeffecttothis AccountingProcedure,thePartyconstitutingtheContractorwhoisthe Operator shall be responsible for maintaining, at its business office in India, on behalf of the Contractor, alltheaccountsofthePetroleumOperationsinaccordancewiththeprovisionsoftheAccountingProcedure andtheContract. 1.5 LanguageandUnitsofAccount Allaccounts,records,books,reportsandStatementsshallbemaintainedandpreparedintheEnglishlanguage usingmercantilebasisofaccounting.TheaccountsshallbemaintainedinUnited StatesDollars,whichshall be the controlling currency of account for RevenueSharing purposes. Metric units and Barrels shall be employed for measurements required under the Contract.Where necessary for clarification, theContractormayalsomaintainaccountsandrecordsinotherlanguages,currenciesandunits. 1.6Payments 1.6.1 Subjectto theforeignexchangelawsandregulationsprevailingfrom time to time, all payments between the Parties shall, unless otherwise agreed, be in United States Dollars
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75 andshallbemadethroughabankdesignatedbyeachreceivingParty. 1.6.2 Unlessotherwisespecified,allsumsdueundertheContractshallbepaidwithinfortyfive(45)daysfrom thedateonwhichtheobligationtopaywasincurred. 1.6.3 AllsumsduebyonePartytotheotherundertheContractduringanyMonthshall,foreachdaysuchsums are overdue during such Month, bear interest compounded daily at the applicable LIBOR plus two (2) percentagepoints. 1.7AuditandInspectionRightsoftheGovernment 1.7.1 Withoutprejudiceto statutory rights, the Government, upon at least twenty (20) Business Days advance writtennoticetotheContractor,shallhavetherighttoinspectandaudit,duringnormalbusinesshours,all records and documents supporting income, such as the Contractor’s accounts, books, records, invoices, price lists or similar documentation with respecttothePetroleumOperationsconductedhereunderineach Year,withinthree(3)Years(orsuch longerperiodasmayberequiredinexceptionalcircumstances)fromtheendofsuch Year. 1.7.2 TheGovernmentmayundertaketheconductoftheauditeitherthroughitsownrepresentativesorthrough afirmofcharteredaccountants,registeredinIndiaorareputedconsultingfirm,appointedforthepurpose bytheGovernmentandthecostsofauditincaseofGovernmentauditor(s)shallbebornebytheGovernment, whereasforoutsideauditor(s),thisshallbebornebytheContractor.
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  • Winter '14
  • Bijay K Behra
  • Government, Petroleum Operations, Contract Area

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