.'
\ .....
\.
i •
) t
i :
I ,
(
~
"
JHE ELECTRICITY (SUPPL
,:,~_,'
!;
---
,
----,
I'
Y) (ANNUAL i'j --,_
.I
ACCQUl'-lTS) RllLES 198!)
,
----
'
}
I
;
/
!
! -
J
/
I
\(~
I
I
-\\ \
,.J. ,
"I _
,
_,....
\
i
'.
~ll • -
J
.
,. ,I, ......
(
GOVERr- MENT OF INDIA . . ." . . j_c.,- ,-, MINI';T ,,)F ENf:RGY' • OEPARn
\_.-
\
",
.
'"
,
ANNEXURE ANNUAL
STATEMENT PART
OF ACCOUNTS
I-STATEMENTS
Page
Sta.tement No.
,.
I
Tith
No.
R2vcnue Account
I
r
r -'
,
5
2.
Net R~'/er'H!e and Aopropciation
3.
Balance Sheet
6
4.
Statement
7
5
Notes to Accounts
6.
Func t io n-vvi se Analysis 01 Revenue and Expenses
1;. . Sources
Account
6
of ACCOun!Hlg Policies
7
and Uses of Funds
i
1I Statement Electricity
1J
12 - '3 14 - 15
of Cap ital Base and Surplu s (under Section 59 of the (Supply) Act- 1948)
i6
of Tech .ica l Particulars
17
\
r' Statement
l
f
PART 11- SCHEDULES
flcvenue
from Sale of Power
2. Element-wise
Analysis of Revenue
TO THE REVENUE ACCOUNT
18 18
3. Average Realisation from Sale of Power
19
4.
20
Revenue Subs idies and Grants
I
5. Other Income
20
6. Purchase of Power
20
1\
7. Generation of Power
21
8. Repairs and Maintenance
21
~.
22
i
I,
_,'.:
12.
Employee Costs Administration
and General Expenses
Depreciation
and Related Debits (Net)
Interest and Finance Charges
3. Interest and Finance Charges Capitalised .4.
Other Expenses Capitalised
15.
Other Debits
6. Extra-ordinary I.
Provision
Items
for Income-tax
2'>
\
,
,J
'.,
t
I
{...
,
\ \
(iii I PART III - SCHEDULES
TO THE BALANCE
SHEET PAGE No.
Schedule
No.
Title
18.
Net Prior Period Credit/Charges
19.
Fixed Assets and Provision for Depreciation
20.
Function-wise
21.
Capital Expenditure in Progress
22.
Assets not in Use
23.
Deferred Costs
24.
Intangible Assets
25.
Investments
26.
Total Current Assets
Break-up of Fixed Asse ts
27 29 29
30 30 31
31 32
>
32
26 (a) Stocks 26 (b) Receivables against Supply of Power 26 (c) Cash and Bank Balances 26 (d) Loans and Advances 26 (e) Sundry Receivables , '27.
26
Security Deposits from Consumers
28.
Other Current Liabilities
29.
Subsidy Receivable from Government
30.
Borrowings
31.
Payments due on Capital Liabilities
32.
Capital Liabilities
33.
Funds from State Government
34.
Contributions,
35.
Reserves and Reserve Funds
for Working Capital
Grants and Subsidies towards Cost of Capital Assets
33
33 34 34 34
35 35 35 36 36 36 37
37
j
,,MINISTRY OF ENERGY ( Department of Power) New Delhi, the 31st October, 1985 G. S. R. 1134 - In exercise of the powers conferred by section 69 of the Electricity (Supply) Act, 1948 ( 54 of 1948 ), the Central Government, in consultation with the Comptroller and Auditor General of India and the State Governments hereby makes the tollowinq rules namely :-
" "
CHAPTER I INTRODUCTORY
,
, , r
1. Short title and commencement- (1) These rules may be called the Electricity Annual Accounts Rules 1985.
(Supply)
(2) They shall come into force with effect from date of their publication in the official Gazette. 2.
Definitions-
(1) In these rules, unless the context otherwise requires -
(a)
"Act"
means the Electricity (Supply) Act.
1948 (54 of 1948).
(b)
"Annexure"
(c)
"Annual Statement of Accounts" means the annual statement of Accounts as defined in sub-rule (1) of rule 5 and include, the Annual Accounts and the Accounts;
(d)
"Financial year" means a period of twelve calendar months ending on the 31 st day of March every year or in the case of the first accounts, a shorter period commencing on the date of constitution of the BOJrd and ending on the 31 st day ef March imrnediatelv following;
(e)
"Notes" or "Notes to Accounts" means the Notes to Accounts contained No, 5 of the Annual Statement of Accounts:
(f)
"Schedule"
(g)
"Statement"
means an Annexure appended to these rules,
in Statement
means a Schedule forming part of the annual Statement of Accounts; means a Statement forming part of the Annual Statement of Accounts.
(2) Words and expressions-used herein and not defined but in the Act. shall have the meaning respectively assigned to them in the Act.
..•.....jj .
,: -~<~~-~~.
CHAPTER COMPILATION
-
II
OF ANNUAL
:B.:
ACCOUNTS
3. Accounting Period - The accounting period for which the annual accounts have to be compil€d by a Board shall be a peri cd of twelve calendar months ending on the 31 st day of March every year or in the case of the [trs t acccuns a shorter period ccrnrnencinq on the date of constitution of the Board and endir.g on the Immediately following the 31 st dar of March. i _ -h 3/ -3
4-
4. Compilation and submission of annual accounts>- Every Board shall at the end of each financial year, compile its annual accounts for that year and within six months from the end of such financial year, SUbmit the said Annual accounts and auditors' report thereon <0 th : Central Electricity Authority and to the concerned State Government. (2) The accounts when submitted to the Cent-at Elecv. Authority and to the State Government shall have the audiror s report at the top followed b'( Annual Statement of Accounts arranged in the order rnentions d in sub-rule (1) of ru.e 5: 5.
Form and contents of Annual Statement of Accoun's:;_'-:
(1) The Annual Statement of Accounts of and SChedules arrar.qed in tile order given below:-
2
Goard shall comprise of the following Statements ...."
Statement No.
Tit.e
1.
Revenue Account
2.
Net Revenue and Appropriation
3.
Balance Sheet
4.
Schedules to the Revenue Account Sheet (Schedule 19 to 35)
4.
Statement of Accounting Policies
5.
Notes to Accounts
6.
Function-wise
7.
Sources and uses of funds
Account
(Schedules 1 to 18) Schedules to the Balance
Analysis of Revenue and expenses
8. Statement of Capital Base and surplus under section 59 of th':! Act. and 9.
Statement of technical particulars
(2) The Annual Accounts shall present a true and fair view of the financial position of the Board at the end of the fins ncial year and of the results of operations of the Board for that year. 6. Chart of Accounts:- (1) The Chart of Accounts, as laid down in Annexure II shall come into Ioice with effect from the date of commencement of these rules. The transactions of a Board which take place after the said date shall, subject to rule 11 be accounted for under the account heads provided in the Chart Accounts as given in the said Annexure.
ot
'"))
A B08rd may, in accordance with the provisions contained in Annexure II, make addi·...tions to the Chart of Accounts jf the local conditions or procedures so warrant.
•
~
-----------
- --3
unted
7. Basic accounting principles and policies(1) The transactions of a Board shall be accofor in accordance with the basic accounting pr inci pl es and policies laid dcwn in Annexure 1I1. (2)
The said basic accounting
principles
and policies
shall be adopted
immediately
on the
(3) The basic account ing principles and policies shall be applied only prospectively, to say, only to the transacrions which take place on the commencement of these rues.
that is
commencement of these rules.
8. Disclosure of accounting policies- A Board shall. in its Annual Accounts, idclude a Statement of accounting policies (Statement 4) confirm: og adherance to the prescribed accounting policies and also stating therein the departures,
if any, made therefrom.
9. Accounting policies for transactions not covered by Annexure- III :- (1) A Board shatt adopt commercia! accounting system of year-and accruals even in respect of transations for which no specific policy is prescribed in Annexure III. The accounting policy adopted in such cases shall be st atcd in the statement of accounting poticies. if the amounts involved are sqnificant .
peculiar
(2) Even the accounting policies ether than transacnons in accordance with suc-rul: (:)
the prescribed policies app'Ie d to a Board's above shall be applied consistently from year to
year.
(3) I n the event of several or all the Boards commencing new activities of the nature not hitherto carried QUt.. the Central Government shall in consultation with rhe Comptroller and Auditor General of India and th a concerned S:a~~ Governrnent s. upon intimation or knowledge thereof, lay down wherever considered necessary the accoun.inq po'icies rel at inq tCJ the transactions arising from the said new set of activities. Appropriate account heads m sv be sp i :ified Central GO'J'omment f;')r booking such transactions. Disclosure requirernent for report irq of such tran33ctions in Annual Accounts shall also be laid down by the Central Government in consultation with the CornlJtrolier and Auditor General of India and the concerned State Governments. 10. Criteria for departure from the prescribed accounting policies- (1) .11. Board may make a departure from the prescribed accounting policies only in the foliowing circumstances namely:(a)
situations in which, for reasons to be recorded in writing, ing pol icies are considered impracticable or unnecessary;
(b)
by adoption of the prescribed accounting
the prescribed
policies, the Board's accounts
accountwould
fail
to give a true and fair view. unting annual after. on the
(2) Any departure from the prescribed accounting policies or change in respect of the accopolicies adopted by the Board under sub-rule (i) of rule 9 shall be disclosed in a Board's accounts for the year of departu re or chanq e as also for the first two years immediately thereSuch disclosure shall also include the reasons for the said departure or change and its effect surplus for the year or on capital base to be considered for the purposes of computation of the
minimum surplus under section 59 of the Act. (3) Where the departure from the prescribed accountir.g policies referred to in sub-rule (2) above involves deviation from the account heads as prescribed in the Chart of Accounts or introduction of new accounts heads, the fact shalf be reported to the Central Government and the Comptroller
and Auditor General of India
11. Process of change-over to the new form of accountsThe procedures to be followed on changing over to the new form of Accounts shall De as laid down in Annexure IV. 12. Uniformity in procedural matter- In order to ensure uniformity in procedural maintenance of accounts a Board shall follow the principles specified in Annexure-V
matters
10
13. Adjustinq EntriesThe Board may make any ad;usting entries in its accounts for the financial year endir.g on the thirty first day of March, 1986, to make such accounts conformable to the provisions of these rules.
CHAPTER III Adoption
of Annual Accounts
14. Adoption of annual accounts by the Board- (1) Annual accountsof a Board shall be considered and initially adopted by the Board before their submission for audit to the Comptroller and Auditor-General of India or to any other person authorised by him in this behalf. (2) These accounts shall, upon completion of the audit by the aforesaid authority and after in corporatinq therein any changes necessitatedbe considered and finally adopted by the Board.
(F. No. 25 (1) 85-0 ( SHB )
SATISH KHURANA, Jt. Secy.
-
- -
-
---------------------------
ANNEXURE 1-ANNUAL
STATEMENT OF ACCOUNTS STATEMENT I (Rs. in lakhs)
REVENUEACCOUNT Schedule Note
This year
Previous year
Units sold (in millilons) INCOME 1 4
5
Revenuefrom Sale of Power RevenueSubsidies and Grants Other Income TOTAL EXPENDITURE
6 7 8
9 10 11 12
Purchaseof Power Generation of Power Repairs and Maintenence EmployeeCosts Administration and General Expenses Depreciation and Related Debits (Net) Interest and FinanceCharges Sub-total
13 14
Less : Expenses Capitalised: Interest and Finance Charges Capitalised Other ExpensesCapitalised Sub-Total
15
Other Debits
16
Extra-ordinarv items TOTAL PROFIT/(LOSS)BEFORE TAX
17
Provision for Income-tax PROFIT/(LOSS)AFTER TAX
18
Net Prior Period Credits/(Charges) SURPLUS/(DEFICIT)
\
Surplus as a percentageof the value of fixed assets of the Board in service at the beginning of the year Minimum specified by the State Government Actual
,. _,.
(Minimum surplus specified by the State Government for 198 ...... 8 ..... subsequent year) is '%,
"f
,0
%
*Schedu'es 2 and 3 relate to Element-wise Analysis of Revenueand Average Realisation from Sale of Power respecitively.
6 NET REVENUE & APPROPRIATION
ACCOUNT
STATEMENT (Rs_ in lakhs
NOTE
This vear Previous year Balance brought forward from last year Surplus (Deficit) from Revenue Account CREDITS Transfer from General Res; rve APPROPRIATiONS
Contributions to Ressrves and Reserve Funds ~'-Sinking Fund for Repayment of Borrowings -General Reserve BALANCE
= Ope.ation
CARRIED
FORWARD
of this account may be held in abeyance STATEMEfH
. BALANCE Schedule
SHEET
(Rs.
Note
As at 31 st March this year
3
in fakhs)
As at 31 st Ma rch Previous year
NET ASSETS ~'!etFixed Assets Gross Block Less: Accumulated Net Fixed Assets ~1
22 23 24
25 26
27 28
29
Capital Expenditure Assets not in Use
Deprec iat icn
in Prngress
Deferred Costs Intangible Assets Investments . -Net Current Assets Total Current Assets less: Total Current Liabilities Security Deposits from Consumers Other Current Liabilities Total Current Liabilities Net CUrrent Assets Subsidy Receivable from Government
_-----_-_ NET ASSETS
30 31
32 33
34 35
FINANCED Borrowinqs
BY for Workings
.e.
Capita!
Payments due on Capital Liabilities Capital liabilities FUnds from Stale Government Contributions, Grants and Subsidies of Capital ASSF S Reserves and Reserve Funds Surplus/ (Deficit)
towards
Cost
TOTAL FUNDS
« Schedu!e 20 relates to Function-wise
Eraak-up of F'xed Assets.
7 STATEMENT OF ACCOUNT!NG
1.
STA TEMENcn'
POL:C!CS
Statement on Compliance with the Provisions of the Electricity (Supply) Rules made thereunder.
4
Act. 1948 and the
The Board has maintained its accounts and compiled its Annual Statement of Accounts in accordance with the relat ed previsions of the Electricity (Supply) Act, 1948 and the Rules made t hereu nder. The following departure from the Basic Accounting Principles end Accounting permitted under the Rules) have been made for the reasons stated thereaginst (a) 2.
(b)
Policies
(as
(c)
Changes in Accounting policies
The accountt.iq policies adopted by the Board year, except for the changes in the following areas:
have been consistently
followed
dur inq the
(For each change in the accounting policy, state -policy
followed hitherto
--policy
adopted during the year
-the amount, if material, by which any item in the Revenue Account, Net Hevenune and Appropriation Account or Balance Sheet. has been affected by the change. For this purpose, a plus/minus change of 3 n or more shall be considered to be material). STATEMENT 5
NOTES TO ACCOUNTS
Notes to accounts are an important requirement in providing a true & fair view. Notes must be as clearly worded as possible and be able to Iullv convey the matter with any ambiguity. Amounts involved must be given wherever relevant, Notes should be split into 2 sections: (A) Notes to Revenue Account and Net Revenue and Appropriation (B) Notes to Balance Sheet. W~erever a note relates to items in both the sections, the
Account and ,:'( .',
note should be given in the Section
for Revenue Account. Cross reference of note number should be given against the relevant item in the Revenue Account. Net Revenue and ll=propriat:cn Acceunt, Balance Sheet or any of the other Statementso;.Schedules.
Similarly,
relevant Schedule number/Statement
number
should also be stated against
the
'note. The matters included in the attached list must be disclosed in 'Note to Accounts' by every 'board except in cases where any of them are not applicable to a Board. This list, however, is not intended to be an exhaustive list and, therefore,a Board would have to select other matters for which a note would be essential in the Annual Accounts. ~Explanation of Certain Terms used in the Notes to Accounts (1) Note 1 refers to 'Contracts placed but not executed and
not provided
for'
This term
means: The total value of the work contracted as on the date of the Balance Sheet . .Less : Contract value of work which is executed and accounted for (i.e. either paid for in favour of the suppller/contrector
or a liability
havir q been provided for) as on that date •
.Less: Amount of advance payments (made
-remains unadjusted as on the da.e of [he Balar ce ~.h8et.
unexecuted
portion
of
contract)
which
8 STATEMENT 5 (Contd.)
NOTES TO ACCOUNTS
The word 'contract' for the purpose of this note covers all types of capital contracts, such as contracts for capital supplies. contracts for erection of capital assets; contracts for supply-cum-erection of capital assets etc. contract value of which exceeds Rs. 1 crore each. (2) Notes 3 and 4 below refer to 'unconditional obligations for purchase and unconditional right of sale of power'. An 'unconditional
purchase obligation'
is any arrangment for purchase of power from other
bodies which is non-cancellable or is cancellable only: -upon the occurrence of some remote contingency or -with the permission of the other party or -If a replacement agreement is signed 'between the same parties or -upon payment of a penalty of such an amount that the continuation
of
the agreement
appears reasonably assured. What is, 'unconditional purchase obligation' for the purchasinq party is 'an unconditional right of sale' for the selling party. (3) Notes 3 and 4 distinguish unconditional purchase obligations "with financing arrangement" from others. Unconditional purchase obligations "with financing agreement" means the purchase arrangement of the type described in (2) above which was negotiated as part of financing for the facilities (generating station. transmission lines etc). that will provide the contracted power. Example of such an arrangement is financing of NTPC projects by the World Bank subject to NTPC entering into agreements with State Electricity Boards for purchase of power to be generated by NTPC. jMATTERS TO BE DISCLOSED IN NOTES TO ACCOUNTS' End of This Year Rs.
1.
End of Previous Year Rs.
Commitments for Capital Expenditure: Contracts placed but not executed and not provided for Works Authorised but not contracted Total:
2.
Aggregate amount of Capital Liabilities -next
3.
falling due for Repayment/Redemption
year
Unconditional Obligations for Purchase of Power -With Financing Arrangement -Others
The disclosure of such obligations should include the nature and term of obligations, the fixed or variable payments to be made for the power purchase under the agreement, the units and value of purchase during the year etc. 4.
separetely for each such obligation,
Unconditional right of Sale of Power -With Financing Arrangement =-Others
The disclosure shall include
information
referred
to
in
note 3 above for
purchase obli-
gations. ~:_,.
5.
In respect of Contingent Liabilities which are in excess of 1 crore each in value. Board shall disclose the total amount contingently payable if the liabilities were to become actual liabilities as of the date of the Balance Sheet.
6.
Lien etc. on Board's assets.
"
9 STATEMENT 5 (Cont'd) NOTES
TO ACCOUNTS
/7.
Conditions, if any, remaining unfulfilled ment grants etc"
as on the date of the Balance Sheet for
govern-
though the grant is received.
8.
Board's assets, whether adequately insured or not.
9.
Accumulated losses and unabsorbed depreciation and investment allowance as at the yearend in the income-tax proceedings.
Previous Year
This Year MT 10
CoaI Receipts, Consumpt ion and Stocks' (Quantities) Opening Stock Gross Receipts Less: Transit Loss
MT
MT
-----
Net Receipts
-----
-----
Opening Stock puis Net Receipts Less:
-----
Consumption
Closing Stock
11.
riin
-------------------
Amount of Liability for customs duty on capital equipments, spares and other materials in Bonded ware-house which is not provided for.
12.
Classification of Expenditure: "All expenses are reflected in Revenue Account under natural heads. Accordinglyexpenses shown under Purchase of Power, Generation of power or Repairs and Maintenance do not include any employee costs, depreciation, administration and general expenses and interest and finance charges which are disclosed separately".
13.
Revenue Account includes the following costs and revenue at trial stage in respect of the under mentioned generating stations, incurred after the capitalisable period i, e. Full period of trial stage or the period of three months from the commencment of trial stage (whichever is shorter) : Location of Generating Station
(1)
14.
(2) (3) (4) (5)
Capacity Period of trial stage Units generated, auxiliary consumption and net generation during the trial stage Revenue from sale of power genetated during trial stage (Total less : capitalised= Credited to Revenue A/c)
(6)
Costs incurred during trial stage-(ltemwise
break-up
(Total less : C3pitalised= Charged to Revenue A/c)
Revenue Account includes the following continuing expenses relating to the undermentioned closed Power Stations Lines, Sub-Stations etc : (1) Details of the closed power Station/Line/Sub-Stations (2) (3)
Date of Closure Total expenses incurred since
(4)
incurred during the year Break-Up of expenses into Employee Costs, Repairs and Maintenance, tion
closure Rs
····of which Rs
······.. .is Administra-
10 NOTES
TO ACCOUNTS STATEMENT 15.
Note regarding reasons for extremely abnormal increase/decrease in Annual Accounts as compared to those in the previous year.
16. Take-over of Licensee. broad details of assets and liabilities
in thJ
5 (Contd.)
value of items
taken over, mortgages etc.
of the assets not released up to the Balance Sheet date. compensation paid/payable and disputes. if any. raised by the licensee regarding the take-over. cornpensa ion of other matters. 17
Generation, Purchase and sale of Power (in million units) THIS YEAR
~-----------------Units Generated Thermal Hydel Gas
Auxilliary Consumprio ')
Net
\/ \./
~
V
V
PREVIOUS YEAR
LIn its Generated
Auxilliary Consumn+ion
Net
,/
V V
V
,/
Purchase Sale
V
T & D Losses
Units &
%
Units & %
18. Generating Stations Location
A. 8. C. 19.
Plants in operation since the beginning of the year Plants commissioned during the year Plants decommissioned during the year
Purchase. Issues and Stocks of Materials (Value recorded in Account should be disclosed here) Balance in Account code
This Year
Ovening Stock -Capital
-OeM
----(B)
Total Purchases -Capital
Rs.
Total
-----------
(C)
Opening Stock Plus purchases
(0)
Issues for Consumption
& M
---
Rs.
---- ----Rs.
-----------22.20 & 22.21 22.22 & 22.23
-Capital
Rs.
.,
2260 & 22.61 22.62 & 22.63
-O&M
-0
heads 22.2 to 22.6
Previous Year
-~------------- ---(A)
Capacity
---- .. _------
22.30 & 22.31 27.32 & 27.33
\i
\/
v'
"\
_ .. _---------(E)
Total Issued to Contractors -Issues -Returns
~--....
22.34 & 22.35 22.36 & 2.237
-¥~~--~- -----Net Issues
v'
11 STATEMENT 5 (Contd.)
NOTES TO ACCOUNTS (F) (G)
Total Issues (0+ E) Closing Stock -Capital
-O&M
22.60 & 22.61 22.62 & 22.63
Total Transfer Inward Transfer Outward
22.40 & 22.41 22.42 & 22.43
20.
Reconciliation
(H)
of Receivables against Sale of Power Previous year
This year
Account
_...-----------------
Code
Rs.
Rs.
Rs.
Rs.
----------------------(A)
Opening Balance
n.1
v'
23.2
\/
23.4
23.5 23.6 23.7
(B)
V
Revsrrre Irorn sale of Power 61.1
v
Gl.2 61.3
V:
61.6
(C)
61.7 61.9 Total Electricity Duty and other Levies 61.501) Charged
t':i 61.539
(0)
Delayed payment Charges
(E)
Total Debits (B to 0)
~
62.250
Vi
V Vi V'
(F) Total (A+ E) (G) Collections from Consumers
V
(H)
23.3 Discount to Consumers for Timely pay78.820} ment of Bills [to 78.839
V
(I) (J)
Bad Debts Written-off Security Deposits from Permanently Disconnected
79.410
v'
Consumers adjusted
(K) Total Credits (G to J) (L) Closing Balance(F-K) (M)
23.1
Break-up of Closing Balance
23.2 2:3.4
235 23.6 23.7 (N) Increase/Decrease in Receivables (A- L) 21. -._-,j"
Bases of determining quantities Stations of the Board.
of Fue! REceipts,
Consumption
and Stocks
at power
12 STATEMENT 6 FUNCTION-WISE
ANALYSIS
Sr. No.
hem
OF REVENUE AND EXPENSES
Function (See Note 1 below)
Transmission
GENERl\TION Hydel
Thermal
Total
Gas
REVENUE
1.
Revenue from Sale of Power
2.
Rever.ue Subsidies and Grants (See Note ?)
3.
Other Income (See Note 3) .-------
4.
TOTAL If'\COME EXPENSES
,.
Purchase of Power (Put it in tota I column)
2.
Generation of Power -Fuel
Consumption
-Other
Fuel related costs
-Operating
Expenses
Sub-total - Fuel related Losses Total 3.
Repairs and Maintenance
4.
Employee Costs
5.
Administration
6.
Depreciation and Related Debits (Net)
7.
interest and Finance Charges
and Genera: Expenses
8. Total Expenses 9.
Less:
Expenses Capitalised
10.
Add:
Expenses Re-allocated
11.
NET EXPENSES
NOTES:
----
-- _-_----_
-.--~-
- ------ -- -- ---
--
.---
-----
(1)
The functions shown in this schedule are oniy illust.ative. Actually the analysis would be for those functions which are incorporated in the Location Codes assigned to accounting units.
(2)
To be shown in the column of the function the subsidy/grant
(3)
This being the income accounts group for different ty;:;es of income including miscellaneous receipts. each function is likely to have some amount of some income. ~ This statement covers columns shown in page-' 2 also.
relates to.
13 L
STATEMENT
\. Construction
Jl
~I'
DISTRIBUTION ------------------HV MV & Pnblic LV Lighting
Total
StoreOrganisation
Management
& Adminis-
tration
6(Contd.) Grand
Total
14
sou RCES AND
USES OF FUNDS
STATEMENT 7 (Rs. in lakhs)
Note
Sr. No.
Particulars
THIS YEAR
PREVIOUS YEAR
FUNDS PROVIDED BY Profit before tax (excluding Revenue Subsidies and Grants)
,\1
Less : Tax payments during the year
V'
Add : Debits to Revenue Account not requiring Cash Outlay
v' v'
+Depreciation -Amortisation less
of deferred costs
-Amortisation of intengible assets Credits to Revenue Account not involving cash receipts
v'
v'
Net Funds from Earnings Flecipts of Revenue Subsidies and Grants Contributions, capital assets
Grants and Subsidies towards cost of
Proceeds from disposal of fixed assets
FUNDS FROM OPERATIONS Increase/(Decrease) -Stocks
·V
in Working Capital V "Ii \1
-Receivables against Supply of Power -loans & Advances -Sundry Receivables Sub-total
V VI
-Security Deposits from Consumers --Current and Accured Liabilities
\1
Net !r:crease/Decrease in Working Capital Increase/Decrease in Cash and Bank Balances Increase/Decreas in Borrowings
fOT
V
Working Capital
FUNDS UTILIISED ON WORKING CAPITAL
\/
V
NET FUNDS FROM OPERATIONS FUNDS UTILISED ON CAPITAL EXPENDITURE on Projects (Refer Annexure to Statement 7 fOT Projectwise break-up)
,,; '\/
v
"I
Intargible assets Deferred costs
TOTAL CAPITAL EXPENDITURE
\/
SHORTFALL IN CAPITAL FUNDS MET FROM EXTERNAL SOURCES
-------------------------
V \/
--------
V ------------
15 STATEMENT 7 (Contd.) SOURCES AND USES OF FUNDS NET INCREASE/(DECREASE) LIABILITIES
IN CAPITAL
Fresh Borrowings State Loans Foreign Currency Loans/Credits
v v'
v'
Other Borrowings Less: Repamyments State Loans Foreign Currency Loans/Credits Other Borrowings Increase/Decrease
,!
V'
V in Payments Due on Capita!
Liabilities Net Increase/(Decrease)
in Capital Liabilities
NET (INCREASE)/DECREASE
IN INVESTMENTS
V'
V'
v
\/ \,1
v -----------------------------\/
NET CAPITAL FUNDS FROM EXTERNAL SOURCES
------------------------------
Net Funds from Operations as Capital Expenditure PROJECT-WISE ANALYSIS
----------
Project Code
OF CAPITAL
8
percentage of Total
EXPENDITURE
------- -----Total
Brief Description
of Project
Annexure to Statement
Project Cost
____ Original Sanction
Cost upto
the end
--of the Revised Previous Sanction Year
Cost Incurred during this year
7
Total cost upto the end of this year
GENERATION (A) Sub-total (A) TRANSMISSION LINES & SUB-STATIONS (B) Sub-total (B) RURAL ELECTRIFICATION (C) OTHER PROJECTS (D) Sub-total (D) Total (A to D) Construction machinery not covered by any project Revenue expenses capitalised Provision for Works completed GRAND TOTAL Note
(1)
Cost incurred dur inq this year does not include thetncreas/decrease in following balances as compared previous year Increase/(decrease) lncrease/Idecrease) (Increase)/decrease
(2)
to these balances at the end of
in advances for capital supplies/capital
Works Rs.
in capital stores at construction locations in liability for capital supplies/capital works NET
_
Rs. Rs. Rs.
_ _ _
In the capital expenditure on take-over of licensee mentioned in project code above.
Compensation paid in cash is
Rs.
and Compensation in form of Bonds/Debentures
is
Rs.
----....__
·
16 STATMENT 8 STATMENT OF CAPITAL BASE AND SURPLUS [under Section 59 of the Electricity (supply) Act, 1948]. Schedule
Particulars
Sr. No.
Less:
Beginning Beginning of this year of the Previous year
19
1. Original Cost of Fixed Assets 2.
At the
At the
19
Accumulated Depreciation
3. Net Block (1-2) 4.
34
Consumer's Cotribution
5, CAPITAL BASE (3-4) (i.e. Value of Fixed assete in Service at the beginning of the year under Section 59) Sr. No.
6.
This year
Particulars
Previous year I
SURPLUS (under Section 59) o' tV
7.
Surplus as a ~ of Capital Base (under Section 59) STATEMENT 9
STATEMENT OF TECHNICAL
This year
Particulars
Sr. No.
1.
PARTICULARS Previcus year
Installed Generating Dapacity (in MIN) at the year-end Hydel Thermal TOTAL
2.
Normal Maximum Demand on the system (in MW) (a)
(b) 3.
Restricted Unrestricted
Plant Capacity avilable a t the time maximum system demand was met (as a .;~of Declared Net Capacity of generating station)
4. 5.
Plant Loc.d Factor Generation (in Million
0;
0'-
j?
:0
KWH)
Hydel Thermal
_ TOTAL
..
_--_.
.------------.-----
.. 17 Sf A TEMENT OF TECHNICAL
STA TEMFNT 9 (Contd.)
PARTICULARS -----_-
6.
Au xiliarv Concumption (in Miltion KWH)
7.
Power Furchases (in Million KWH)
---------~------.-.
Sources TOTA.L
-.-----
S.
Power ivai able f,H sale (in Mit:iGn KWH) (6 -6 ' 7)
9.
Power Sold (in Mil'ion
KVVH)
11'. Transmission a Oistrlbut.on L055-eS --in Million KWH (8--<» -As 8 .~Qf t.otal power availahht for
,."
s.ai~
-.-----.~--- ------ ----._- - --
Fuel (a)
Consurnptio n (in '-"Hi Coal
AFO/FO LO Oil/HSD (b)
Averag3 Calorific Vah.e per kg of Fu~ Consumed (in K. Cal /Kg ) Coal RFO/FO LD Oil/HSD
(c)
Consurnption Coal FRO/FO LO QiljHSD
ner Unit of GenpraliJll
(:n Kg ;'K";','H)
Previous year This yea: ------ ------------------ -----No, of Connected No. of Connee'ed Consurner s load Consumers Load in t'lrvV in MvV ~--- - -- ----- --------_- ---- ----- ---- --- ------~----- ---
Sf No.
Particulars
-----_----_---------_
12.
.... ---
- - - -- -- -
--
_-
Sale of Power Consumer Category: (i) Comestic (ji) Commercia! {iir) Public Lightir.g (iV) Irrigation and Dewaterir.g (V) Pub;ic Wa,er VVork;; (Vi) Industrial (LT/HT. Fowervntens (V'i) Railway Tract io n (Viii) Bulk Supply (iX) Outside Suppl ies (X) Mis:ellaneous TOTAL
ive- S~~eGiai)
.- ._-' -
-._-_-_.------- ------- -- -
- _.-.,_,,- ._--
------ _' ..
PART SCHEDLE
TO
Ti--'E
II
F:!:VHllF
ACCO'
NT SCHEDULE
fiEVENUE --_
Sr
FROM
SAL
1
OF POWER
----_
--Particulars
Previc..s
.L\.ccount Code
No
year Rs. -
1
---'---
2
Rs
.-----_._---
5
3
3 4
c ~n3tHner\J.v;sesubsunder main
ani
cl\;, nun
ace!.,' nt s:
.1
r
-.- -----_--------------
Total Revenue --._-- __ ._------_.
-.----.--~ ..-
16.
fL~ct:-:citv
17. ; 8.
Otr.er St ara levies Recover)! ;''."1e(''1 Rert/Service Line Re nr a i
Duty
Recovery
19.
PBCO'Jeries for Theft" of PO'vverjfviaipracti:::-e
.:.0.
St..ib- !;_?tai
21.
Wheeling
22.
lvIi'·ceilar.eous cha'gps
23.
GROSS REVfNUE
24. 25. ~-----
26. -----
Cba.qes R€coveries
from Consumer.
L_:
1
,0,
10
6' ~" 9
i
10
61 G39
" '.J
6, 7 61.8 t:: 1 "
" ,,
FROrv] SALE CF P .~\\·E"l
Less: Elec'rici:y Ou.y Payable(Con:ro) Other State Levies Pen/able (Contra) --_
6 , G
61 541
to 61 559
G .5G!
to 6
579
- ----~----
'._.._-_._------------------
_-,
_
.. ..
SCHEDULE ELE'v'lEN rWISE Sr
Purt icutars
Account
Cede
This v ear
No
Previous Year
Rs.
P.tVENLE l. e mand
Charjs
s
t est digit of the sub ~ccounts f( r each con su-
Ene gv Charges Fuel Cost J'dustment POW2r
2
Af'~AL YSIS OF REVENUE
Fac
l ha ge
Dry SurC;"il;ge
Adjustmenr s
iO
Past Biii!;'gs
mer c reqorv grouped by (_lemont
Rs.
19
2
3
ELECTRICITY DUTY & OTHER STATE LEVIES E lectr icitv Duty Recovery Other
Stare
Levi ss Recovery
TOfAL
61.501 to 61 519
61.521 to 61.539
.
EXCiSE
\,'ETER
RENT/SEf:;ViCE LINE RENTAL RECOVERIES FOR THEFf OF POWER! tv]ALPRACTICES
61.6
61.7 ();.8
WH EEUNG CHARGES RECOVERI ES (vl1SCELLAN EGUS RECOVERI ES
Fuse Charges
__ _-_ ...
under 61.9
Sub-accounts
_-_ ..__ . __ ... -_._-
.....
---
TOTA.L MISCELLANEOuS Gi-\OSS REvENuE
6!9
FlE·:OVERY
Fi-lOiv1 SALE OF POWER ---_._----
t.e ss
5
4
Ele ct r rcitv Durv
Payab:e
__ .-
.
( Contra)
Other Slat:1 t.evie s ravabte (Co1ltra) ------------------_._-_.
--.'
------------61.541 to 61.5:)9 01.561
to
01.5,9
TOTAL AVERAGE
FEfo,USi\TiON
FROM SALE
OF POVVER
SCHEDULE
---_._--_.__ ._-
This Year
Average Sr. Con
suner
SLn18iS
Unit
N.).
CategOiY
Co n su
c .. f
Units sold
Consume, s Units
s
Units
in pa is e
Ave-
ri_ge of ! oral Urut s sold
Rea:isat icn in
paise per
unit
I\veri-'ge
e hse Ion Lom each care jorv
Fievenue
ironl
of consumers should be comp
ted 3S follows;
Sale of Power !O rhe Consumer Cate ..Dry
Plus [!ecrr:clty Outv :Of;\L
100 .
TOTAL
1 OO'~":' .
divided
and
Other
Srate
Levies Hec overv from th It Category
by the number of 'In'':,, so d to that
crrr qorv.
3
20 REVCNUE SUBSIDIES
SCHEDULE
AND GRANTS
Previous Year Rs.
This Year
Account Code
Particulars
4
Rs.
Each of the sub-accounts under main account 631
--------------------------TOTAL
-------
------_.----OTHER
---- - -- ---SCHEDULE
INCOME
Previous Year This Year ----~ ------- -----Rs_ Rs. Rs. Rs.
Account Coda
Particulars
Sr 1\0.
5
---
---- -----_.----.- -------------------n.er est on Staff l.o ans and Advances 2
Income from lnve strnent s
3_
Interest on Loans & Advances
4_
Celayed Payrrent
5
Interest on Advances 10 Suopliets/Conuac.or
6
Intel est from Banks (other than on Fixed
62.2101062119 (2_'220
to 62_2::9
to Licensees
62_240
Charqes from Consumers
62.'250 s
62260 62_270
Deposits) 7.
I ncorne from Trading
62.3
\/
8
Income from Staff We~f.:Jrc Activities
~"2.6 /
.\
9.
Miscellan tous Receip ;s
629
'\
,OiAL -+----~--.-- ..--.--------~-.-PURCHASE
..-----------.
------_-- ._-_...-_--_--- ..-..--- ..- -.
SCr'EJULE
OF POWER
--------Sr. No.
----
Pa.ticukrs
-- -~-------
Account
. ---
Code
---- -----_This Year Rs.
1.
Power purchased
70.1 Each sub-account ceperatelv
2.
Total Power purchase
:s
Writ~-off
4_
power from other bodies Wheeling charqss
of cost of acquiring r;gh·s to receive
TOTAL
70.3
70.4
--- -
6
---p, ev.ous Year Rs.
21 _--- ------ -- --------_._--_._--;"--GENERATION OF POWER ACCOUNT CODE Sr. PARTICULARS Rs. f'.!o.
Fuel Consump~ ion
1.
Coal
2. 3. 4
Oil Gas
5 6
Total (1 (04) Other Fuel Relatej
7
Sub-,otal
71.110 71.120 71.130 71.140
---.------.--~ SCHEDULE 7 THiS YEAR Rs.
Rs.
PREVIOUS YEAR Rs.
V·
V V
,/
to 71.199
71.271_3 (71.462.7)
Costs
for Fuer Cost
C:; ,6)
Operating Expenses Cost of water ... Hydel Power Thermal Power Lub ncant s and Cons umsb!e
8.
9.
i O. Station
71.5
Stores
Supplies
__
71.6
71.7
_
_-
-- .. ---' _ .._.- ---- -----11. Sub-to tai for Ope a' ing Expen',es (8 to 1C) --_._._---" 2 Cost sf Gener a t io n of Pow-.r (7
+ 11) {72 L 72.2} 72.3
i J. Fuel Hela ted Losses
.'; TOTAL (1 2 13) ---.- _ .._--- - ------.--~
S.
,/ ---------.
Pa.t icu l ar s
No
Repairs and Ma:n:ennnce to P;ant & Machinery Buildings Civil Wo:ks Hvdr au!ic Works Lines. ( < bl ~ 1\ e W .J; k etc. Vehicles Furniture & Fixture Office Equipmcr.!s TOTAL
SCH[:DULE
..
A::c:Junt
Code
74.' 74.2 74.3 74.4 74.5 746 74.7 74.8
This Year Rs.
8
Previous Year Rs.
22 SCHEDL.LE '.I ·-
--.----
:~~r .
Ace.runt -
r'art.cu ars
No. Salaries Overtime
75 2
3.
Dearness Allowance
7'J.3
.Ii
Other
75. 11
.,
Pnnus
:"
SlIb·'otal
Alf ovva nc e s
E·grn-.-d
Rs.
\ \
V ..
\,
;\J1;:dlG;J E xcenses S)
Rs.
v
,
75.5
L'_;dV~
Yea:
~5. 1
i. 2.
R
r'revious
.ive
Enca sb-nent
P vrnent ' n';er Workmen's
I
'\.
,
75.6i~ 75.6 7
t-\:;sistance
--rdV;-;
t-
75 61
Reimbursement
Compensation
"
-5 62,)
Act
\ ..
0 nl 0 I h , S tid
~1
'j'
12.
Sr atf We:fare
......
\
.\
--
-+
..... .-
C J $ t s (1 to; O)
.\
75
Exp nses ----.-.-
....
7
\
75.8
-_
.. _.
V
----
TOTl\L
Sr.
I
cc= u nt
SCHEDUL;: 10 Previous Year
This Year
':ode
; 0
Rs
---:---=-----------,. R8n!', Rates and raxes
-----
Ss
Rs.
Rs.
------::-::---c:-::------
76 i-) t -:-6 10 .. }
t)':.-1.
"
7':; ;, +lU
•~ 11
76. 2 5.
P .rdit Fe
\
0';
76
21
.1 9
Ocher Pr"r'3·:ional Chai qe s C· f'v2y.ncs ;:j. Travel
.1 2 ~ 76 ; to
:0
Oth
- 6 ~0 76.' 5'
r E
to
7;; Fees & Suoscr iprion Books "r Per:() +icals Printirg 8- Stat on-: y
A 'JVf:rI.
'0,
\.
A,;11,'nt s
Contr rbu uous
v'
E ectr.crtv
V
Charqes
Water Charqe s :::nt en <; I(.,:1enl Ivilsceiiane .us l:.·.;...enscs
,i
V' 'V
_.
23 ADi\;iINiSTRAT10\j 11
0'
Total
& GEN::PAL
Other
EXPEi\j
-ES
(Coutd)
S~'E;UE
'0
Expenses 75,210
I
\'
to
76.220 i3
Other Purchase reL}t~d
expenses
76.220 to
i
76299
---------
-_ ----------
T;:i-" L
7G.2
-----
___
i
•
--
--.--~.
Sr.
;'1-,
Pa- ticuiars H_s. DepreciatIOn
PIs
77,1 &
n,2 As sst Dec;rnisioning ')
Costs
:~;'n]L and Low value f
efn:.;
VVritten-of{
77 ~; 77.G
S~_;b-·:c; al
is,
Wrinen
down
'\ \'
val 'e of assets sCfiiDPed
~-:, VIJrite-off of c:efici S of Fix2d
77,71
b
77.720
\
,;n S"lp of Fixed Assels ors :0 7 Total D9biis (4 and 8) L.ess
77.7:_;(]
\
10,
Gain on Sale of Asse rs (excluding Cap;,ai transfc;-rec :0 Ca~~'ii(j: Rese,-ve)
G 4
11
TOTAL
7,
8. 9.
----
L'JS5
Tot at
-_
----~- -------.-----------
C' ",f
':".:,'
Assets ob servcc
.
- ------
.
.-
--------
Particutars
NO.
-.
--------~~- ---- -------SCHEDULE 12 Previous Y"'cH
TIl:s Ye:r Code
Rg, In:erest on State G :-V6rnmcilt Loans 2 3, 4. 5.
Interest on Bonds
Interest on Debentures Interest on Foraic n Currency Loans/Credits Interest on OII1"'f Loans/Deferred Credits
Rs.
73.1 78.2 78.3 78,4 Each Subaccount under
78.5
6.
P",na! Interest in reSiJ8ct of Capital Lij bilities
shown separately 78.591
Previous year Rs.
'\/
to
~
..
, Llnlerest
._-" ------
to Co nsurner s
-_._- - - --,--,------,----------'---------,.
78599 78.6 ------
--,._-------
.. -.
;.;
24 SCHEDULE
_-
INTEREST AND F!NANe
E CHARGES ---~ -------
--------------9.
(COflt~!)
---------,_-_--
------
11.
Interest on Borrowings for Working Capital 73 7 Other Interest and Finance Charges Discount to Consumers for Timely Pavrrent of Bil!s 78 820 to 78.839
, 2.
Interest to Suppliers/Contractors
10.
12
_.-------_.-
\ \
]3.8-41 to
78842 78.8!3Q 78851 7~.852
, 3. Interest on Fixed Deposits t 4. Intereston Contributory Provident Fund 15.
Interest on General Provident
16.
Other Interest
Fund
\ \
V \
Other see- sccoun t under
73.85 17.
-----
Coo, of Raising Finan~ to
18.8£9 18.
19. 20.
21.
22. -.
\/
73.371 78.873 73.881 to 78.889 73.29)
Discount on Issue of 8onGls;Oeben~ures Premium on Redempttcn cfBond;iDebentures Othee Charges
Interest on sums paid by State Govt. ur der Guarantees
\
\
_-- ---- -----~--_.
TOTAL
\
_--- ----_.--_. Note:
.
--.~---- ..- - ~-.-------.------- -
_-'_'"'
The interest charqcs shown 10 the 2ciocduie ar e after
for timely payment of int8!est[timely
d d"ctiPg
a r8:):.:re of R s. 0 ea n'd
repayment of bonO'Nirgs
SCHEDULE INTEREST AND FINA:1CE This Schedule shall
13
CHf-\RGES CAPITAliSED contain
the d stailed
v'forklng:;
for CV1:;:uti 9 (;18 :n')':unt
of capitalised
interest on funds used dur ir q construction stBge. .---.--.-----~----..--.-- ... This Year
__
..•.__
._.- - -.----_------_ ---_._-_ .. _._._-._...._._----._-- --- -------- -------.~.----.-_--.- --.---.--.----.-------~-
Previous Year:
SCHEDULE
14
r-: "E::,REXPENSES C,6.P1T/'.L1SED )\..
Print,--.-.------.--...-..... - - - .. -'- ..-.. A:JVer'ii'C:lIon of Cost of Generation d:.:ring tria! st;:,g'J Contflj·,e Costs capital:::ed E eC1./,stration and Genera! E>:penses capi13ii,,;:d WareciJt.on and reia:ed co s. s c,piiaiiscd .---- -_ .._---_.-- .----E01',C\ L Ivil·-··..---···---··-·--·--·----.-
7i 9
i -;'-j ---- .-----. --_ ..._-_---
---.--.------ ..------.-- ..----.~---
25 SCHEDULE 15 OTHER DEBITS This year
Account code
Particulars
Sr. No.
Previous year
Rs.
Rs.
---------1. 2.
Materials Cost Variance Research & Development Expenses Cost of Trading/Manufac:uring Activities Bad and Doubtful Debts Written off/Provided Miscellaneous Losses & Write-offs Sundry Expenses
3 4
5. 6.
79.1
792 79.3
79.4 79.5
for
79.7 (each sub account separately
TOTAL EXTRAORDINARY
Schedule 16
IEMS ---
.J
,
J
------------------_ .._-------
Extraordinary items are defined as "Those items which ar ise from events or transactions cutside the ordinary activities of the Board and which are both material and expected not to recur frequently or ;-egulariy. They do not include items which, though exceptional in terms of amount and occurrence (and which may therefore require separate disclosure), arise from the events or transactions within th e ordinary activities of the Board. Similarly prior period items are not extraordinary items merely because they relate to a prior year. This year Rs.
) --_._---------1. Extraordlnarv Credits (Including of tlood.fire.
Previous year Rs.
subsidies aqs inst loss on account
cyelone etc. Account Head 63.2) 1
1
2.
Total Credits Extraordinary Lebit s ~losses on Account of Fiood.Cyclone, etc. Account
Fire
Head 79.8)
1
, 1
1"
1 3.
Total Debits Extraordinary
items (Net) SCHEDULE 17
.s"
PROVISION Sr. No.
FOR INCOME U·.X Account code
Praticulars ----Provision for Income Tax TOTAL
-- --.
- -
46.8
-------
This year Rs.
Previous year Rs.
26 NET PRIOR
PERIOD
SCHEDULE 18
CREDIT/CHARGES
Prior period items are defined as those items which arise
-
from retrospective change in the basis of accounting (it may be noted that retrospective changes in the basis of accountipg should be evotoed as far as poss ible}. on correct ion of fundamental error in accounts of prror periods on account of short or excess provision made in previous years,
Waiver of any liability relating to revenue expense of past year (such as waiver of interest for past years by State Government in view of the Board's weak financial position) would be trealed as prior period income,
Sr. No.
Particulars
Account code ---,
1.
---
Income relating to previous years
This year Rs.
Previous year
Rs
-._ -----~---
Separately each subaccount under
65.1 to
65.9 2.
Prior period expenses/losses
Separately for eech sub-account under
83.1 to 3.
Net Prior period credits/Ch arq is (1-2) or (2-1) as the case may be
,
83.9
.J
')
., "
;,
,
.,
-
--------
PART III SCHEDULE
TO THE BALANCE
SHEET SCHEDULE
FIXED ASSET & PROVISION
_--
19
FOR DEPRECIATION
-------._--------------------
------------
Gross Block At the end of
Ace ount
Asset Group
Sr.
code
No.
Add i tions
Deductions
Reclassi-
At the
tication
end of the
previous year
1. Land & Land Rights
10.1
2. Buildings 3. Hydraulic Works
10.2 10.3 10.4 10.5
4. Other Civil Works 5. Piant & Machinery 6.
Lines and Cable Network
7.
Vehicles Furniture & Fixtures Office Equipment
8.
9.
year*
10.6 10.7 10.8
10.9
SUB- TOTAL
10. 11. 12. 13.
I
Capital Expenditure resulting in an asset not belonging to the Board Spare Units/Service Units Capital Spares at Generatinq Stations Asset taken over from Licenseespending final valuation
11.1 112 11.3 11.5
TOTAL
TOTAL for Previous Year
Notes:
(1)
tf2i'\ ~
Previous year's figures should be show in breackets below each figure Disclose by way of a note that "Gross block does no t include value of small and low value assets each costing below Rs. 500, charged to Revenue Account in the year in which they are first put to use. -
Value of suc assets charged to Revenue Account during the year Rs . Total upto the Balance Sheets date (i.e, including Rs
previous
year' write ofts)
.:'
27
28 --------_-Provision
At the End of Previous Year
Depreciation for the Year
---_._-----------
Net Block
for Depreciation
Adjust rnent s on Deductions
Rcclass i fica tion
At the End of the Year
At the End of the Year
At the End of the Previous Year
------------------
(-
BRE.A.K UP OF FIXED ASSETS
FUNCTIONWISE
Gross Block At Addithe t ions end of the previous year
Func· tion
SCHEDULE 20 Net Block
Provision for Depreciation At the end of tile year
Reclassification
Deductions
AdjustDepraciAt the inion on ments end deductions of the previous year
Peclassification
,L\t the end of the year
At the end of the year
At the erd of the previous year
Themal Generation Hydel Generation Transmission Distribution
TOTAL ..
-----_.-
----
---.----~. _-_
---------------------------
-.-
Previous Year ---------_ .._---------------CAPITAL
PROGRESS -- ------ ----------------Account Code Particulars -
1.
Capi ;al Work in-progre:.;s
2.
Cont1dcts-in-prog{ess --------
4.
-------~---- _._--- -- ~
EXPENDITURE!f\]
Sr. No
3.
--
This Year Rs. -- -_._----- .._._._---_.._-----_._---------------
.. -
__
..
SCHEDULE 21 Previous Year Rs.
15 1 .. _
...
_-------.--
Sub-total Revenue Expenses Pending Allocation
over Capital
15.2
Works 5.
Pr.sv is io n for completed work
6.
Construction Facilities (Cost Rs. less Provision for Dspreciatioil
Assets at construction ste qe (3 to 6) Advances for Suppliers/Contractors (Capital)
9.
TOTAL
Note:
1.
2.
3.
25.1 to 25.9
Under the standard rate based valuation certain fast movirg items of stores 2re charged to works at the ir standard rates and not at actual cost. For the year as a whole, the variance between the standard rate and the actual cost accumulated in Materials Cost Variance shows (an excess of standard cost over actual c+st Rs ) (an excess of actual cost over standard co st Rs... ) DO the total prrchases of materials (for use for both capital and & M rr corded during the year Rs . Contracts- in-progress represents the portion of int" rim payments made to contractors for capital works executed in respect of which title is to pass to the Board only upon completion of the contract. Depreciation on construction facilities charged to capital work during the year is Rs .
o
I
Fis ...
8.
7.
j
15.5 15.6
30 ASSETS NOT IN USE --------Balance in the beginning of the previous year Rs.
Additions during the previous year
Deductions during the previous year
Rs
Rs.
SCHEDULE Sr. No.
1.
Asset Group
Account Code
Written down value of obsolete/Scrapped assets
Balance at the end of the previous year Rs.
22
Addilions during the year
Deductions during the year
end of (This year)
Rs.
Rs.
Rs.
Balance
at the
16.1 Each subaccount separatelv disclosed
Totai
DEFERRED Balance in the beginning of the previous year Rs. ---------
SCHEDULE
23
COSTS Cost deferred during
the previous year
Rs
Cost charged to revenue during the previous year Rs.
Particulars
Account code
Deferred Revenue Expenditure - Compensa tion for premature takeover of Licensed
Balance at the end of previous
Costs deferred during the
year
year
Rs.
Rs.
Costs charged to
revenue during the year Rs.
Balance at the end of (this year)
Rs.
17.2
i7.221 Other subaccounts under
17.2 Total Deferred Revenue Expenditure Expenditure on su rvey jfeasibil ity studies of projects not yet sanctioned
-.-----.-
----~-------~------~-
c: 17.3
..
Total Deferred
Costs
17
31 INTANGIBLE Balance in the beginning of the previous year
Rs.
SCHEDULE
ASSETS Cost incurred during the previous year Rs.
Cost charged to revenue during the previous year Rs.
Intangible
Account code
Assets
Balance attha end of previous year
Cost incurred during the year
Rs.
Rs. Payments to acquire right to receive power from other bodies
18.100
Expenses for forming and organising the Board
18.200
--------------------._----------------_._-
Investments realised during the the previous previous year year
Rs.
_ ..
INVESTMENTS Further investments during
Rs.
Balance at the end of this year
---------------------------------------
TOTAL
Balance in the beginning' of the previous year
Costs charged to revenue during the year
SCHEDULE Sr. InvestNo. ment
Account code
Balance
at the end of the
Further invest merits during
previous the year year
1.
Invest-
ments against funds Sub-total 2. Investments other than fund i nves trnen ts Sub-iotal 3. Investments in subsidiaries Sub-total Investments in partnerships/ joint ventures Sub-total
4.
Grand Total
24
20.1 Each subaccount separateiy
20. 2 Each subaccount separately
20. 3 Each subaccount separately
20. 4 Each subaccount separately
Invest-
Balance
merits
at the
realised during
end of (This year)
the year
25
Details of investments, certificates etc. pledged or given as a security deposit
32 SCHEDULE 26 TOTAL CURRENT ASSETS
---
_._-----
---,,-
------ -
26(a)
1.
Stocks
2.
Receivable:; against Supply of Powe i
26(b)
3.
Cash and Bank Balances
26(c)
4.
l.oan dn
5
Sundry Receivables
26(d) 26 (e) -.-
---------
6
Previous year
This y2ar
Schedule
Current Asset
Sr. No
TOTAL
-------- ----- ~-- -..
------------
--------
SCHEDULE
26(a)
S rOCKS ------Sr No
Particulars
--
-------------------------------------~Previous Yesr This Year --- - -- -----------------Rs. Rs. Rs. Rs.
Account Code
------ ----
------21.101 21.105 21.108
Fuel Stocks
\ \ \'
,
21.121
2.
Coal in Transit
3.
Oil in Transit
4.
Stock of Materials
, V -- .-----
21.125
at Construction
Stores
22.60
"
v'
& 22.61
6.
Materials at Site
7.
Materials pcndinq
8.
9.
\/ &
\1
22.64 &
\1
2262 2263
5 .. Stock of Materials at Other Stores
v
22.65
,/ ,/
22.66 &
V
22.67
V
Mater iais in Transit
22.68 & 22.69
\/
Other Materials
227
V'
21.2
\/
22.8
V
Insrection
Accounts
10.
Fuei Stock Excess/Shortages-Pending
11.
Mater ials Stock Excess/ShortageInvestigation
TOTAL
Investigation
Pending
\/
-J
33 SCHEDULE RECEIVA8LES
AGAINST
SUPPLY
OF POWER
--- ----.~- ----.--~---------------------.-------~
._----------_----- ._
---------------.---~- ..------------.-.-.----
Particulars
Sr. No.
1.
Sundry Debtors
for Sale of Power
2. Sundry Debtors for Inter-State Sundry Debtors for Electricity
4.
Provision
5.
Dues-from Permanently Dis-connected security deposits forfeited)
o. __ ._ -- --_
...
-.-
- ------
..
-~-.--..-.----------
.
__
-- --..__
,,_
--_"
This year
Previous year
Code
Rs.
Rs.
23.6
Duty
23.2
234
Revenue
Sundry Debtors-Mlscellan€ous
Account
23.1
Sale of Power
3.
for Unbilled
26(b)
Consumers
(net of 23 5
Receipts from Consumers
23.7 -
_- - ---------._,_-._---,_'_
__
---------------
.
-.-.".- ~
Sub-total
7.
Less Provision
for Doubtful
23.9
does from consumers
TOTAL _---------- -------,._------------------------.-----------------'_-_._._--_._----_._----_
..
_---------------
SCHEDULE CASH AND
BANK
BALANCES ..._-.
Sr.
__ -----
---------- _._-_._--.--_---.-
Particulars
No. ....•---.- ..
---.-.
_
_-------
....
_-_. _._---_._--_._----
.._ .. -------_. __ ._----_._-_-----_ ..
Account
This year
Code
Rs.
Cash on hand
24.1
2.
Cash Irnpr ests with Staff
242
3.
Balance with Banks
4.
Cash in Transit
24.3 & 24.4 24.5 & 24.6
_
_---------_._------_
..- ..
.-
-
----
Previous year Rs.
----
1.
-_._---- ..
26(c}
..
_.-----_._-----_._
...,--------
.----
--_.----------_._-_
TOTAL ---------------------
...
34 LOANS
Sf. No.
Particulars
Account Code
This Year Rs.
1.
2. 3.
4. 5 6. 7.
Previous Year Rs.
Rs.
Rs.
Advances for O&M Supplies/Works Adva nC6S for Fuei Supplies
26.11026.7 26.8
v
Sub -to [eli Loan s Et Advances to Staif Loans & Advances to Licensees Advance Income Tax/deductions Loans & Advances-Others
27.1 Et 27.2 27.3
V \
27.4
\.
27.S
V -.--.--- ..--~-----,-.--.-----------~---_.
27 9
\
Less: Provision
for Doubtful
v
'-'
at source
.------_.------------------
8. TOTAL 9.
26(d)
SCHEDULE
& ADVANCES
.
Loans and
__
-
-----------
Advances 10.
TOTAL
(8-9) SCHEDULE
SUNDRY Sr. No.
26(e)
RECEIVABLES Particulars
ACCOUil t
Previous
This Year
Yc ar
Code
----------_._------------------_ 1, Sundry Debtor - Trading Account 2. Income accrued and due -on investments =-other Income accrued and due 3. Income accrued but not due 4. Amount recoverable from Employees! Ex-Employees 5. Fuel Related Receivables & Claims -- Grade difference of Coal (Net of provision for loss on grade difference) --Railway claims for Coal
---_--_.
..
Rs.
Rs.
28.1
Rs.
Rs.
\
28.210 to 28 240
\,
23.290
\
\.
28.3
284
\
28.511 & 28.5i 2
\. ~"
28.513 & 28.514
-Others
Other Sub-accounts under 28.5
Other Claims & Receivables Deposits
28.7 & 28.8
\
'.
o. 7.
----------- -----
28.9
_---- ---_.- -_._-----_._------_._-----,-.-
TOTAL
-----_------_
....
\ \
--...
----,,-,,---
SCHEDULE SECURITY
DEPOSITS Particulars
Sr. No.
FROM CUSTOMERS -- ------_._ .._----- --Account Code
This Year Rs.
1.
2. 3.
Security Deposits from Consumers (in cash) Security Deposits from Consumers (other than in cash) Interest Payable on Consumers' Deposits
TOTAL
48.1 48.2 48.3
Previous Year Rs.
27
-
..
-
35
o THE
R CUR Ii E N r LI A Bill TI ES
---- ---------
SCHEDULE ------------------
-----------
Account
Particulars
Sr.
28
Code
Previous Year
This Year
No. Rs. -------_ ---------- -
--- -------
1_ Liabitities to Railways for Coal Receipts 2. Liability on account of Grade Differences 3. Unpaid Coal Bills 4. Other Fuel related Liabilities
ments.
Rs.
Rs.
----------------------------------
of Coal
40.1 402
\/ \
40.7
\
Other sub-accounts \ under 40 5. Liabrl it v Io r Purchase of FOIA(1 41_1 &41_2 6. Liability for Capital Supptie syw'orks 42 1.42.2 &.123 7. Liability for O&M Supplies/Works 43_1.43 2 & 43.3 8. Staff related liabilities and provisions 44.1 to 44.4 9. Deposits & Retentions from Suppiiers and contra- 46_1 & 28.930 ctors (Net of deposits received in form of invest10.
Rs_
\-
V \ V
V
etc.)
Electricity
Duty & Other Levies Payable to Govern-
46.3
merit.
11.
46-4 46.6
Liability for Expenses Amount owing to Licensees Accrued/Unclaimed amounts relsiing Provision for Income Tax Other Liabilities and Provisions
12. 13.
14. 15. 16. 17.
Sub- Tota! Deposits for Electrification.Service
18.
to Borrowings
Connection
Sr. No.
Particu lar s
FROM
,/
etc. 47
- --~----- ---.--~--------------------.
RECEiVABLE
\ V
46.9
TOTAL
SUBSIDY
46_7 46.8
\ ---------------_---_---
-----
SCHEDlE
GOVERNMENT
--------
-----
----
---
Account Code
Capital Subsidy/Grant Receivable Revenue Subsidy/Grant Receivable
This Year Rs.
29
Previous Year Rs.
28.610 28.620
TOTAL
BOR ROWIf\JGS FOR WORKI NG CAPITAL Account Code
Particulars
Sr. No. 1. 2.
SCHEDULE
Cash Credit from Bank Overdrafts
50.1
Banks _- .---
---.-------
._-----_._------------------------
TOTAL ----_._-_.
Note:
Temporary
borrowings
-------------
raisrd
50.2 _.
--.- ---.--------
-------
and repaid
during
the years
Rs.------
This Year Rs.
30
Previous Year Rs.
36 PAYMENT
DUE ON CAPITAL
LIABiliTIES Due at' --Be-coming Account Due at the Becoming Payments Sr. Particulars the end due Code No. made due beginning of the during during of previous during previous this year the the year year previous previous year year =--=--:-7":--:-'-~~----------- - ----. --------- ---------~~-- - - _- --~----~-- -_-- ---_-- REPAYMENTS 51.101 to 1. DUE 51.199 each subaccount seoartely ----To-tatRepaymeots------Due
2. INTER ES'( - -~~---
--~ - - - ----
SCHEDULE 31 PayiY,ents made during the year
Due at the end of the year
-
ACCRUED AND DUE 51.201 =-On Capital to Liabilitixs-State 51.799 Government -On other Capital Liabilities -~-----------~-. ------ --------_---~----~.-~-.-...---------------.- .Total Interest Accrued & Due ________ ~----------::___--==-=-=-=--o----3. TOTAL SCHEDULE 32 CAPITAL LIABILITIES Details of Account OutAmount Repay- OutOut Amount Repayments Sr. Particulars interest Code standing recsiv- ments standstanding REceived due during No due inq rate, at the::"'.. ~ ed at the during the the during at the rnoratoend during beginning previous previous the end of rium and of the the of the year year year the rate appliprevious year previous year cable at the year year end of the year ----~-------------~--1. Each 2. subaccount 3. under 52 & 53. 4 -------------------TOTAL Note: 1. In respect of foreign currency loans/credits, the amount shown as received during the year [includes increase of Rs...... ." (previous year Rs )] [is net of decrease of Rs (previous year _ ) ] made consequent upon the realignment the rupee value of loans/credits in terms of exchange rate at the end of the year. 2. Borrowings Power Mexirnum borrowing power under Section 65(B)of Eiectricity(Supply) Act. 1948 Exer ci sed upto the end of the year Less Redeemed during the year Add Balance of exercisable borrowing power as at the end of the year 3 Securities offered against the borrowings. SCHEDULE 33 FUNDS FROM STATE GOVERNMENT Amount Repay- OutstOutstandAccount Amount Repav- Sf. Particulars Details of Outanding ing at the received merits Code received ments No. interest standing during Que at the end during during rate, at the the year during end of of the the the rnoratobeginthe yea r the year previous rium and previous previous ning of year rate appliyear year the cable at previous the end of year the year ---.-------___:_~---=----:---:~---1. Each Subaccount under :;;::::::; 2. 54.1 & 54.2 shown 3. separately' 4_
37
9. 10.
TOTAL LOANS Amount received from 5~.3 & 5t4 State Government from under Guarantees ._------_ .._-_ .._----_.--_ . r , TOT/\L - ._. _ .. - -_ ..__ . -- ..-------------Noles . -The amount ou ts t ondinq at the end of year includes - -Rs. b:::ing the fair value of assets donated by State Government. - - Rs. being fair vaiue of assets received under feo se from the State Government CONnlIBUTIO~'~S TOWARDS COST
._-_
.. _----
-
GRAf\iTS AND SUBSIDIES OF Ci\PITAl ASSETS
--
---
_.
Rer.:.:ei'v'·8C duripg .he
Balance bo;;innin" of the previous year
SCHEDULE
Sr
-- ..------
_. __ .._------
...
PArticulars
Account Code
·... 0
Contribution
'0 , ..., 20 2.1 22
'--'---
_-_
--
Note
_.--. Additions during th·~year
Total at the end of the year
Separately for each subaccount
)
..
..
55.1
2,
----.----------_
_ ... -
Balance at the end of the previous year
pre\'::Ol,S
Consumers'
....
34
Total Consumers' Contribution Subsidies towards cost of Capital Assets 55.2 Grants towards cost of Capital Assets 55.3
--------------------'
-- ..-
__
--.- ._ ..
TOTAL ._--------------------------_
The amount of subsidies, grants etc. becoming refundable (owing to reasons such as Board's failure to fuifil the conditions for subsidies/grants) should be shown as a negative amount in the column fo' 'Additions during the year' and the reasons thereof. should be disclosed by way of a note in this Schedule.
RESEfiVE~A.i\lD
_----_._-;
------_-.
Balance at the beg inn ng of the previous year
RESERVE
FUNDS
------_---_.-
Additions du ring tho pr e . !OUS YGa!
SCH EDUlE . -- --
Deduc-
Sf.
t ioris
No
--------_. __
.
Particular s
---- --------_ .. _-
Account Code
during the previous year
----.--_._ 1.
2. 3.
RESERVES
-_--_
_--
.._-,-------_.
Balance at the end of the previous year
Additions during the year
...
DeducBalance tions at the end during of the the year year
_--_._----_ _---------------
...._..
Each sub-
account under 56 & 57 to be shown
separately (Excluding net Revenue Appropria tion A/c.)
...
35
,
(~
t1.. +t-.
/ ~\.
:'1;,
,_
,\
,
'.
"
SUOI):mpeO!SUOll!PP'Ii
-_ -
----._-
__ ._-----------------_
..
_---------------
,eleua~
--.-.---.--------------------.-----~
1'1101
--..----..... _------ ---'---
10 ..
dn->jB8J8
-~-.-------
9l
....
SONn::l 3/\l:I3S3l:l
--._------
---_._--
'.-.-
.......
SSI\J9S9l:1
----
9AJ8S9H
1I?10l
t L -_. '-
-------_._----
'0 I
_----_.-----------_-_ -- ------_- --------_- -_--_,_ ---.._-----------------------_-_-----------_-_-_-
..
__
8£
-
_-_ _..
,._----------_-,_
39 ANNEXURE
II--CHART
OF ACCOUNTS
SECTION-1 STRUCTURE
1\
COD!f~G
structur cd Chart of Accounts
OF CHART OF ACCOUNTS
has been rr commended
for book inq ;he various n ansaetioos
SCHEME
2.. The Account heads bear a Iive- digit code. The coding scheme IS explained below (1) First and second digits indicate the Account Group. (2) First and second digits along with the third digit indicate the Main Account Code. (3) The fourth and fifth digits are used for coding Sub-Accounts within each Main Accou nt (4)
Code. Main Account
Code along with the Sub-Account
for an Account BOARD'S
Codes froms the specific
Account
Code
Head.
ROLE IN CODli'JG
OF SUS-ACCOUNTS
3
!n severai Main Account Codes, the precise Sub-Accounts shall have to be assigned bV individual Boards depending on their own requirements The examples oi such codes are: (1) Project codes for booking capital work- in- progress, (2) Consumer c ateg orv codes for booking the Revenue from sale of power and Heceivsb les for sale of power,
(3) LOCATION
4.
inter- unit accounts. CODE Each Board shall assign toc aticn codes to all its
Accounting
Units.
These shall be a5si~
gned in such a way that the code also denotes the function performed by the operations under the Accounting Unit. The exact functions to b e recoqn ise d for this purpose shall be those for which separate divisions are in existence. Coding at division level would enable two different codes, transmission and construction, [0 be assigned to two different divisions under a common circle. LOCATION
CODE TO BE A PREFIX TO ACCOUNT
sav
CODES
5. The location code shall be a prefix to the account codes recommended in the uniform Chart of Accounts The location code will remain same for all the transactions at an Accounting Unit. There fore, the location code shall not 'have to be written every time. The code will be pre-printed on all the accounting documents in use at that location. Such a structure of account coding has enabled smaller account code of 5 digits as against 8-digit code in the existing Chart of Accounts. CODING 6.
OF ACCOUNTS An accounting
EXPLAINED UIII! snail record
its transactions
under lhe proposed
Chart
of /:\ccQunt3 in
the manner discussed below: (1) Each a- counting uru t shall be assigned a location code which will indicate. (a) function (generation, transmission etc.) performed at the accounting unit. (b) Specific code given to the account unit. Location code will be a 3 digit code. (2) The location code of a unit shalf be a prefix to each account code used at the accouting unit. III
46.410
i________ _.
. ... _-_
----7Account -.-,. Location
code for Sundry Creditors code-Thermal
for Expenses
Power Generation-Ukai
·'.10 (3)
The use of lccation codo is mainlv ~ll segregate one unit from another at the time \,·...,:'9r: triai balance or accounts statemensysummaries n om various accoununp units are received at one place. For example at the stage of compiling accounts from div.srons and trial balance and account summaries of a large number of circles. so long as an accounting unit sends its [rial balance/accounts summaries. schedules, statements etc. 10 another unit with the Loc ation Code written Oil it, identification of SUC:l loc st ion is ensured
(,.J)
Therefore en a day ro dav basis, the !'JCDton codo nee:] ont be recorded while 'Nriling account code on vouchers etc. instead the code can be pra-pr+n t ed or rubber stamped In advance,
(5)
inter-unit advices uise-j by a location unit can easailv identify th8 advices.
(6}
in relation to the accounts for inter-unit transactions, however, two location codes ilre n valved. (3) Location code o t the unit which record> the tr arsact ion. (b) Location code of the unit to v;/n:ci'; tnt"? transic-ion is debited OJ credited.
must bear the location
code
so that
the
recs iv rg
Fer example, transfer of fixed assets tr orn unit 334 to unit 465. . The lccatlon ccde of the unit reccrdirg the trans act ion i.e. 234 wdi be as ment iorieo e:;, ." pre-pr inted on that unit's vouchers The account code 'Niii be 32 c:65 vVnS(8 3~; is tl.e inter-un.t account for fixed asset s re', transactions and 465 msa ns the transf:::i is to unit 465. Correspondingly unit number 465 f:3S get .rs code pre-printed on its own vouchers Thcr« .ore. it will use the account code 32.33:; ",.here 22 is the inter-unit account for f ixc c asse t. related transactions and 334 means the transfer is from unit number 334.
[!"
'7' [
,'I
BU\NKS
The location codes mentioned on d ivisio nsy ci rc ics accounts would be used for S,:gi€g:' lion of transactions of different functions Bt the time of compilation. The prefix of Ie ca tion code : -of various divisions shall be o mitt ed when circle p i epar es the triai balances of tit8 ;11\/; sions under it The consolidated trial balance would the:: b ea. circle's code as the location code -of various circles shall be omitted v. hen the Head Office conso lidates circlewis e accounts and compile the Board's aCCOUIYS. PROViDED
IN THE CHART
OF ACCOUNTS
7. Blanks have been provided In the Chart of Ace unts at Accr unt Group Ma in as well as the Sub-Account Head levels so as to povide fiexibility for introduction of heads at appropriate leveis as per the procedure ia id down in paragraph 8 belOW iNTRODUCTION
r-\CCOU;;(
new
~ ",-:,'
accouut
OF NEW ACCOUNTS
8_ The Chart of Accounts provides for aii possible transaction envisaged by the Centra! Govsr n rnent If however, a Board observes that sorne of !'5 transactions cannot be booked under any of the account heads or ihat lhev need to be bookc.d \:vith g(8Jier analysis, new accounts, as may be necessan;, shot! be introduced. Purpose and uSJge of i:!'1ch ne'N accounr shall be clear:y defined by the 8eard. :3 Any main account c{;dc or account group concerned.
SUD-ilCGCW1[
c.one so iiltrnoucod
bv a Board must
be ,;,'t,h,';
10. Any main acc)unt code OJ sub-Jccount code so introduced by a Board may. discretion be reclassified 'Nithin the same account group or deieted at any time thereafter
at
th?
Board's
11. intiOduction of a new account group shall require prior approval of the Central Government /\rw c:pproval by the Ministry in this regard sh.:-dl be in consultation with the C & AG add tr.e concerned Slilte (Jovernment. DELETION
OF ACCOUNT
CODeS
12. Boards shall not be permitted to delete ar y account frem the prescrtbed chart of account,; This prohibition shall appl y even in cases where the Boards do not have the type of tr13nsactions covered by an account.
41 SECTION -2 CHART ( ACCOUNT -- .--.
ACCOUNT GROUP CODE -~------10 To 16
OF ACCOUNT
HEADS
-- --- .. -
AND
------------
ACCOUNT
CAPITAL
EXPENDITURE
CODES)
----------_._----
----._------
--_._-----
-------------------------
AND FIXED ASSETS
10 11
Fixed Assets / Other Capital Expenditure/Fixed
12
Provision
,3 14
Provision for Deprec iat inn on other CaplUl1 Exp;:ndi(u(e/fixed Capital Work- in-Progress Accounts > Other Accounts for Assets at Can .trucuo n Stege, Assets not in use
15 16
17 To 19
for Depreciation
Ass ers
Deferred Costs
18
Intangible Assets
20
I NVESTM El'JTS
21 To 29
CURRENT~ASSETS,
21
Fuel Stock Accounts
22
Stocks and Related Accounts Receivables against Supply of Power
23
>
on Fixed AS58ts /
DEFERRED COSTS AND iNTANGIBLE
17
ASSETS
LOANS AND ADVANCES
24
Cash and Bank
25
Advance to Supplier/Contractors(Capital) Advance to suppher s/Contractors-; (O&M) Other loans and Advances Sundry Rece.vable s
26
27
28 30 To 39
INTER UNIT ACCOUNTS
30
Inter-Unit Accounts-Fuel
31
Inte r- Unit Accounts-
32
Inter-Unit
Accounts-Capital
33
Inter-Unit
Accounts-Remittances
34
Inter-Unit
Accounts=-
36
Inter-Unit Accounis-Personnel
37
Inter-Unit
40 To 49 40 41 42
Accounts-
Materials
Expenditure
to Head Office
Other Transactions/Adjustments LIABILITIES
Fuel related liabilities liability
liabiiity
& Fixed Assets
Fur ds Transfer from Head Office
CURRENT AND l\CCRUED
----
GROUP
- ----------
...----.-
ACCOUNT
for Purchase of Power for Capital Supplies/Capital
Works
Assets.""'--
42 ACCOUNT
GROUP
ACCOUNT
CODE 43 44 46
47 48 To 54
!.'o
Liability for O&M Supplies/O&M Works Staff related Liabilities & Provisions Olher Liabilities and Provisions Deposits for Electrification. Service Security Deposits from Consumers CAPITAL
LIABILITIES
AND OTHER BORROWINGS
54
funds from State Government
55
56 57 58 60 'fo 69 61
62 63 65 70 To 89
70 71 72 74
75 76 77 78
79 81
83 9(:: To 99
RESERVES AND SURPLUS Contributions, Grants and Sub sidies towards Cost of Capital Assets Reserves Reserve Funds Sutplus INCOME Revenue from Sale of Power Other Income Subsidies and Grants
Prior Period Income EXPENSES AND LOSSES Power Purchased Account Cost of Generation of Power Fuel related Losses H':pairs & Maintenance Employee Costs Administration and Genera! Expenses Depreciation and other Costs relating to Fr(HJ ,<\ sse Intc~est and other Finance Charges Other Debits (0 Revenue Account Provision tor Income-tax for the year Prior Period Expenses/Losses
MEMORANDUM
91
Costs and Revenue al Trial Stage Memorandum Accounts tion, Sale etc. FIXED ASSETS
10.102 10.103 10.2 10.20
--
J
ACCOUNTS
92
10.1 10.101
etc
52·53
55 To 59
10
Connection
Borrowings Ior Working Capital Payments Due on Capital Liabilities Capita! l.iabll it.es (Other than Stars Government Loans)
51
10.2:01
GROUP
for ReCo(ding No.
01
Units
Of PON:~r
P':
.r
Genera-
)
-
LAND AND LAND RIGHTS Land owned under full title Land held under lease Cost of land devetopmant on leasehold land BUilDINGS Buildings containing gelJerating plant, transmission
Buildings containing Theremo-electrlc Ge Hating
J ..
,I
, .}
and dist,jblll
,:In installations j
Plant
~
j;
-;,.""
43
----------------------_.----- ----------_.-------_. --ACCOUNT GROUP CODE
10.202 10.203 10204- to 10 203 10.207 10208 10.21 '01029 10 2i 1 10 22210233 , O. 3
10.30' 10.305 10.310 10.311
, 0.315 10.320 10322
ACCOUNT
GROUP
Buildings Buildings Blank for Buildings Building"
containing Hydro-electric Generating plant containing Diesel-electric gen:lrating plant buildings containing other types of generating containing Transmission Installations containing Distribution in3ta!!ations
Ancillary
Buildin(:ls
Office buildings Residential colony for staff Other Buildings HYDRAULIC Hydraulic
WORKS
works -forming
Drainage and sewerag~-residentiai OTHER CIVIL WORKS
10.401 10.402 10.412
Pucca roads Kutcha roads Railway sidirgs
10.5
PLANT & MACHiNERY
i 0.501
Boiler plant & equipment Furnace/burners Turbine-generator-steam
10.535 10536
10.537 10.538
part of hydro electric svst ern. dams, spiiways.
Plant foundations
for steam
colony
power generation power plant
Auxiliaries in steam power plant Locomotives and wagons Coal handling plant and handling aquijJment3 Oil storage tanks, oil handlirg plant and equipmen!s Gas station. gas pipelines etc. Hydel power generating plant Plant foundation for hvde l POWEH generatif'g pl ar.t Auxiliaries
in hydel power plant
Gas power plant Plant foundation for gas power plant Auxiliaries in gas power plant Transmission plant--transformers hdV!l'g
il
retirg
0f 100 KV and above
10541 10.p42 Y{543
Other transformers Other transmission
10'551 10.552 10553 10.555
fixed apparatus Material naridlir g equipment -ea nil-movers, bulldc zer s Material handlirg equipment-cement mixers Material hal'dling equipment-cranes Material handlin.g Equipment-others Sv'vitcngear ir.eluding cable cono ect.c r.s
.._./
1 D.5t") 1
weirs.
canals, reinforced concrete flumes and syphon Hydraulic works forming part of hydro electric system, reinforced concrete pipe' lines and suqe tanks, steel pipe-tines. service 93t95. !ltM! 'llJrg~ tanks. hydra· ulic control valves and other hydraulic works Cooling water system Cooling towers Sweet water arrangement including res erv o ir etc. Plant and pipelines for water supply in residential colony
10 4
10502 10.503 10.504 10.509 10.511 10.515 10.516 10.517 10.531 10.532
piant
plant, transformer
kiosks.
sub-station
equipment
and Other
44 -------------
-_---,.
ACCOUNT
,ACCOUNT GROUP CODE
GROUP
Batteries including charging equipment Fabrication shop/workshop plant & equiprnents
10.563 10.565 10.567 10.571 10.572 10.574 10.576 10.577 10.53 & 1059
Air-conditioning plant-staric Air-conditioning plant portable Misceltaneous equipment
10.580 10.581 ~0.582
Refrigerators and water coolers Meter testing laboratory too's & equipment Equipmants in hospitals[clinics
10.583
Tools & tackles Sub-account codes should be introduced tor each major tvne of equipment! which are being grouped at present under one account head 'Miscellaneous
Lightning arrestors Communication equipment-radio & high frequency carrier svste:n Communication equipment-telephone line, & telephones Static machine tools & equipment
10.599
Equipment'. Other rnlsce llaneon s equipments
10.6
LlNt:S,
10.601
Overhead lines (towers. po+e s. fixtures. overhead conductors and devices)-rines on fabricated steel supports operating at nominal voltages higher than 66 KVA.
10.602
Overhead lines (towers, poles. fixtures, overherid conductors and devic9s)lines on steel suoports op eratinq at nominal vo ltaqe higher than 132 KVA but
10.603 10.604
CABLE NETWORK
not exceedinq 66 KVA Overhead lines (towers.
ETC.
poles.
fixtures,
overhead conductors
lines on reinforced concrete supports Overhead lines (rowers. poles, fixtures. overhead conductors i ines on treated Wood Support. Underground cables including joint boxes disconnecting boxes
10.611 i 0.612 10.621 10.625 10.631 10641 10.685
Underground cables -- cable duct system Service connection. Temporary connections for sur-ply of Power Metering equiprnents Street lighting and signal system Misc9ilaneous equipmints
10.7
VEHICLES
10.710 ~O.720 10.730 10.740 10.8
Trucks, tempos trekkers etc, Buses including minibuses Jeeos and motor cars Other ve hicles
11
FURNITURE & FIXTU RES OFFiCE EQUIPMENT Calculators Typewriters Cash Registers in cash offices OTHER CAPITAL EXPENDITURE/FIXED
i 1.1
CAPITAL
10.9
10.901 10.902 10.903
EXPENDITURE
THE BOARD
RESULTING
and devices)and devices)-
ASSETS ACCOUNTS !N AN ASSET Nor
BELONGING TO
45 -------------_. ACCOUNT GROUP CODE
ACCOUNT _. _. __ ._-
_ ..
---_._-------
__ ._-- .-------------------,.---------------~.----~----- _- .-----------_--..
11.101
Roeds on municipal
11.2
SPARE UNlTSjSERVICE
11.3
CAPITAL
11.4
ASSETS TRANSFER
ACCOU NT CODE
__ .----
GROUP
land UNITS
SPARES AT GENERATING
ACCOUNT
STATIONS
INWARD
HEAD
11 401 to 1i .409
Assets transfer inwu rd-rieb its on receipt Sub- accounts similar to broad asset groups in Account Group' I 0'.
11.421 to 11.429
Assets transfer inward--credits Sub-accounts
on transfer to Account Group 10.
sirrular to broad asset groups in Account Group 10.
11.T
ASSETS TAKEN
OVER FROM
11.501 to 11 50S
Assets taken over from licensees pending final valuation Sub- accounts similar to board asset groups in Account Group 10. Thus separate sub-account
LICENSEES-PENDING
groups e g. 511 to 519, 521 to 529 for each licensee
whose taken over assets are not finally
"..., , .... i
2.1
PROVISION
FINAL VALUATION
FOR DEPRECIATION
valued.
ON FIXED ASSETS
12.8 12.9
DEPRECIATION PROVISION-LEASEHOLD LAND AND LAND DEVELOPMENT COSTS DEPRECIATION PROVISION-BUILDINGS DEPRECIATION PROVISION-HYDRAULIC WORKS DEPRECIATION PROVISION-OTHER CIVIL WORKS DEPRECIATION PROVISION-PLANT & MACHINERY DEPRECIATION PROVISION-LINES, CABLE NETWORK DEPRECIATION PROVISION-VEHICLES DEPRECIATION PROVISION-FURNITURE & FIXTURES DEPRECIATION PROVISION-OFFICE EQUIPMENT
13
(Sub-accounts similar to broad classification in Fixed Assets accounts) Under such main account. two sub-accounts should be operated : .. Provision for depreciation 2. Advance Depreciation (Debit Account) -se e Guildelines to Chart of Accounts). PROVISION FOR DEPRECIATION ON OTHER CAPITAL EXPENDITURE/
12.2 12.3 12.4 12.5 12.6 12.7
ETC.
FIXED ASSETS 13. i
13.2 13.3 13.4 13.401 to i 3.409 i 3.42; to 13 429 - 3.5
DEPREOIATION PROVISION ON CAPITAL EXPENDITURE AN ASSET NOT BELONGING TO THE BOARD
RESULTING
IN
DEPRECIATION PROVISION ON SPARE UNITS/SERVICE UNITS DEPRECIATION PROVISION ON CAPITAL SPARES AT GENERATING STATIONS DEPRECIATION PROVISION ON ASSETS TRANSFER INWARD Depreciation provision on assets transfer inward-vcredits Sub-accounts similar to broad asset groups in Account Group 10. Depreciation provision on assets transfer inward-classified to Account Sub-acnounrs similar to Broad asset groups in Account Group 10. DEPRECIATION PROVISION ON ASSETS TAKEN OVER FROM PENDING FINAL VALUATION
Group 12.
LlCENSEES-
46
ACCOUNT
ACCOUNT
CODE
HEAD
_._----_._-_.__ . __ .._----
----------
-----------_._._--------------13501
to
13509
Depreciation provision on assets taken over from licensees-pending ;\nal valua .. tion Sub-accounts similar to broad asset groupS in account group '\0. Thus sub account groupS e 9 1351 i to 13.519. 13 521, to 13.529 fer ?ach j;censae whose assets t aken over are not finai!,! valued CAPITAL WORK-iN-PROGRESS
ACCOUNTS
Sub-accounts
as follows
shall he structured
---------- .-----5th digit
3rd & 4th digits of code
i4
--.---
II1dicating the main
Project Number
Capital WlP
H5d[
Land 2 Buildings 3 Hydraulic works 4 Other civil works 5 Plant & machinery 6 Lines. Cable Network 7 Vehicles 3 Furniture & fixtu{~s 9 OTHER ACCOUNTS '5
-----
.---
grJL:P
·~t,:
Office equipment
FOR ASSETS AT CONSTRUCTION ------~
STAGE
CONTRACTS-PROGRESS
15.1
Sub-account
codes for each project.
REVENUE EXPENSES PENDING
ALLOCATION
OVER CAPITAL
li'iORKS
15.2 SUb-3ccount
for each of the expense account qroups (Not prOjsctwise)
15.201 to 15 209 Head Office Supervision
15.220
PROVISION
15 5
FOR COMPLETED
CONSTRUCTIOf'1
15.6
Charges WORKS
FACILITIES
Construction
EqlJipment- Earthmovir.g €Quipm,"nt and buddo?:er5
Construction
Equipment-Cranes
15601 15.602
Construction Equipment-Cement
mixers and other civil
COllstcuCflon
machne1y
15603 Fabrication
15.631 15.651
to 15.699
shop/construction
Equipment
Provision for depreciation on constiuction facilities Sub-accounts corresponding to sub-accounts for respac{llie asseb r.orn 601 to 649 e.q. 15.603 will have 15.653 as the code tor provision for dep!Elc:atiofl on thai asset.
1G
workshop
ASSETS NOT iN USE
47 ~--------'---'-'----------ACCOUNT
ACCOUNT
CODE ---
HEAD
- _._---------
16.1
WRiTTEN DOWN VALUE OF OBSOLETE SCRAPPED ASSETS (Sub-accounts similar to elassification of f xed assets accounts).
17
DEFERRED
172
DEFERR
i 7 221
Cornpense t ion tor premature takeover of licensees
17.3
EXPENDITURE
COSTS
ED REVENUE
EXPENDITURE
ON SURVEY/FEAS!BILITY
STUDIES OF PROJECTS
NOT YET
S'\NCnONED 18
iNTANGIBLE
18.100
Payments to acquire fight to receive power tram other bodies -
i
e
ASSETS
Expenses for forming and organising the Board
200
20
INVESTMENTS
20 1
INVESTMENTS
20.110
S;aff Pension Fund Investments
4.0.120
GretuiiY Fund Investments
20.2
INVESTMENTS
20.210
Investments
in Government Securities
20.230
Investments
in Bor.ds/Dt bentur es of other Eleetricitv Boards
20.250
investments in Bonds/Debentures of other Bodies engaged in Generation, Transmiss son or Distribution of Power
.2(,.270
ir;·.-estments in Sha.es in Corporations
20.280
i:1vestment«
~-.
AGAINST
FUNDS
OTHER THAN
FUND INVESTlviENTS
and Public Limited Cornparues
in Ira m of Fix Deposits with Banks,
Companies ere.
Other Investments For each o: these acccunt s in 20.1 and 202 sub account codes can be used for .ecordinq investments in each type of bond. share etc. under an account. For example, 20.111 10 20.119 for different rnvestrnent s aqainst staff Pension Fc:nds. 20.2701020.279
for shares in different companies and so
20.3
iNVESTMENTS
2031
!r:vestments in Share in Subsid.aries
22311
tc
20.-3i9
0'1.
IN SU8'31DIAR!ES
Svb-accounts for subsidiarvwise/share capitalwis e (equity/preference) (Separate account for each subsidiary
break-up
48 ACCOUNT
CODE -
ACCOUNT
HEAD
.--------------------~--.-------.---
20.32
Investments
in Debentures/Bonds
-,~----------~-- ----._---------
of Subsidiaries
20.321 to 20.329
Sub-accounts
20.33
Loans to Subsidiaries
20.331 to 20 339
Sub accounts for sub s-diarvwisa/Loanwise
204
INVESTMENTS
20.411 to 20 '~19
Sub-accounts
20.<: 2
l_?Jf1S
20.421 to 20 4L9
Sub-accounts
for firrnwis ey.Join
21
FUEL STOCK
& R ELATED ACCOUNTS
21.1
FUE L STOCK ACCOUNTS
2i.l01
21.125
Coal Stock Oil Stock Gas Coal-in -Transit Oil-in- Transit
21.2
FUEL STOCK EXCESS/SHORTAGE
22
MATERIALS
STOCK & RELATED
ACCOUNTS
22.1 to 22 7
MATERIALS
STOCK & RELATED
ACCOUNTS
22.1
INSURANCE
SPARES STOCK ACCOUNTS
22.2
MATERIALS
PURCHASE
22.20 & 22.2;
Capital Materials
Purchase
22.201
Capita I Materials
Purchase=-Steel
22202
Capital Materials
Purchase-- Cement
22.203
Capital Materials
Purchase - Transformers
22204
Capital Materials
Purchase
22.205
Capital Materials
Purchase-Cables
22.2.)6
Capital
Materials
Purchase - Poles
22.207
Capital
Materials
Purchase - Electric Ught F;ght Fittings
2:-2.208
Capital Materials
22.219
Capital Materials Purchase =Others (Materials grC'ups indlcated by ,he 51h digit can be restructured suitable by the Board.)
21.105 21.108 21.121
~
for subsidiarvwise/inve
for Ilrmwtse/iom:
VENiURES
venturewise
break-up
~r_tne{ship/J~int_Ventures veruu.ew.se/Icanwrse
PENDING
- Metering
break-up
NVESTIGATION
Equipments
& Conductors
.\
Purchase - Spares
Purchase
22.221
o
Purchase - Steel
Materials
t
ACCOUNTS
o & M Materials M
break-up
break-up
ii,J PARTNERSHIPS/JOlf\lT
22.22 & 22 23
&
stmantwtsa
3S
considered
I
-[.
49
ACCOUNT
ACCOUNT
CODE
HEAD
22.223
o & M Materials o & M Materials
22.224
0&
M Materials Purchase-Metering
22.225
o&
M Materials Purchase-Cables
22.226
0& M Materials Purchase-Poles
22.227
0&
M Matarials Purchase - Electric Light Fittings
22223 22239
o & M Materials
o
M Materials Purchase-Spares
22.3
MATERIALS
22.30 & 22.31
Materials
22.222
&
Purchase-Cement Purchase-
t ranstoreier s Equipments & Conductor'
Purchas e-c Other s
ISSUE ACCOUNTS
Issues (Capital)
22_~O' to 22.319 shall be used to bo ok issues as well as returns
Sub-Codes
under each materia's group.
22.32 & 2 ?33
Materiais lssues (O&M) Sub-Codes
22.321 to 22 ~39 shall be used
to book
issues
as well
as returns
under each mate' ials group. 22.34 & 22.::5
Material Issued to Contractors Sub-Codes
/
22 341 to 22.3~9 shall be used to book issues under
each materials
group
22.36 & 22.37
Materials Returned by Contractors Sun-codes 22.361 to 22.379 shall
be used to book
returns
from contractors
under each rnet er ia s group
22.4
MATERIALS
22.40 & 22.41
Materials I; ansfe r Inward Sub-Codes
TRANSFER
ACCOUNTS
22.401 to 22.419 shal: be used
to book
Ma:erials
Transfer
Inward
under each material'> group. 22.42 & 22.43
Materials Transfer Out~ Sub-Cedes 22.421 to 22.439 shal' be used to book Materials under each matarias
grcup.
22.5
MATERlALS
22.50 & 22.51
i\1ilteriais Stock Adjustment Sub-Coces
STOCK ADJUSTMENT
22501
ses/shortages 2252&2253
Materials
ACCOUNTS
A/e (Capital)
to 22.519 shall be us ed to book s iock adjustments
and for each materials
Stock Adjus\mem
for
exces-
group.
Alc (0 & M)
S;_;b-Ccdes '22.521 to 22.539 shall be used sss and shor:,og-.::S
Transfer Outward
!
LO
book stock c'diu3tme'lj
under each materials group.
S
TO! exec s-
50
ODJ
. ACCOUNt!
r.
i _-..-------.-
/
/ ACCc,UN T Ij'EAD
,I
~ __~__ ..
-L--.
r/ -
226
MATERIALS
22.60 & 22.61
Capital Materials
/
/
,.,
STOC K ACCOUNTS Stock A/e
Sub-Codes 22 601 to 22.619 shall be used to consolidate capital malerials stocks under each materials group.
22.62 & n.63
O&M Materials Stock Ale Sub-Codes 72.62' to 22639 shall b : ~;sed Ie consolidate under each materials 9 oup.
2264 & 22.65
["iateria!s at Site
22.6W
Materials at Site (Capital)
22.6S0
Materials at Site (O&M)
22.65 & 22 67
Materials Pending ln snec ion
22.C60
Capital Materials Pending Inspection
22.670 2268
stocks
Ale (!v1A.SA)
O&M Materials Pending Inspection & 22 69
Materials-In-
Transit
22.680
Capital Materials-in-
22.690
OaM Materials-in- Transit
227
OTHER MATERIALS
22.710
Workshop Suspense-Ma:eria's
2.2.720
Materials
22730
Materials Issued on Loan to Parties ether than Contractors
22.740
Capital Equi pments and Capital Spares in Bonded Warehouie
22.750
Materials
22.760
Obsolete Materials Stock
22.8
MATERIALS
22.810 22.830
Stock Shortage
Transit
ACCOUNTS
Issued to Fabricators
in Bonded Warehouse
STOCK EXCESS/SHORTAGE
PENDING
INVESTIGATION
Stock Excess Pending Investigation Pending Investigation
23
RECEIVABLES AGAINST
23.1
SUNDRY
23.101 23.1 (12
Sundry Debtors for Sale of Power-
SUPPLY CF POWER
DEBTORS FOR SALE OF POWER .I
Domestic
Sundry Debtors for sale of Power-Commercial Thus sub-codes 101 to 119 shall be used to identify gory of consumers.
23.2
OaM mal':fl"is
SUNDRY
DEBTORS
FOR ELECTRICITY
Sub-Codes 201 to 219 to ide,tify
receivables to specific
cate-
DUTY
receivables to specific category of consumers.
51
ACCOUNT
23.3
COOE
ACCOUNT
SUNDRY
HEAO
DEBTORS
COLLECTIONS
ACCOUNT
for debiting
day's collections
(Separate sub-account ferring
23.4
them to respective
PROVISION
FOR UNBILLED
Sub-Codes
23.5
DUES FROM PERMANENTLY
501
SUNDRY
to
519
DEBTORS
601
Sub-accounts
23.7
SUNDRY
23.9
PROVISION
10
provisions
to identify
/.
"5. /
SALE OF POWER States.
RECElPTS FROM CONSUMERS.___.-'
DUES FROM
901 to 919 to identify
of consumers.
CONSUMERS
dues to specific
OESTORS-MISCELL.ANEOUS
Sub-codes
on trans-
dues to specific category of consumer
FOR INTER-STATE
FOR DOUBTFUL
crediting
to specific category
DISCONNECTED
to identify
609
and Ior
in 23.1 & 23 2)
REVENUE
401 to 419 to identify
Sub-codes
23.6
acounts
CONSUMERS
(Credit
Account)
dues to spcific category of consumers.
24
CASH AND
8.A.NK
24.1
CASH ACCOUNTS
24.11 G
24.120
Cash on Hand Posiage Stamps on Hand
24.2
CASH IMPRESTS
24.210
24220
Permanent Irnpr est witn Staff Temporary Irnpres t with Staff
24.3
COLLECTING
24.301
Collecting Bank->e g. Bank of Baroda 301 to 399 sub-accounts. to be operated for individual Bank accounts. Each accounting unit shall operate the sub-cedes for the ~ecific Bank accounts
WITH
SATFF
ACCOUNTS
BANKS ACCOUNTS
under its jurisdiction.
BANK ACCOUNTS
24.4
DISBURSEMENT
24.401
Disbursement Bank-·-o.g. Bank of Baroda 401 to 489 sub-e scounts to be operated
tor individual
accounting unit shall operate the sub-codes
for the
Bank
specific
accounts.
Each
Bank accounts
under its jurisdiction.
24.490 24.491
Funds Transfer for Payment of Interest Funds Transfer Io r Payment of Interest
24.5
India) REMITTANCES
24.50i
TO HO IN TRANSIT
o n Bonds (say. Bank of India). on RE Debentures (say, Central
Bank of
.A.CCOUNTS ,.--
Remittances from Division. Sub-Accounts 5;)1 to 54(1. HO will operate Circle- wise Sub-Accounts. Circle will operate Division-wise Sub-Account Sl!b-Pccount codes in use will vary from location to Ic carion. TheE6 sub-Acccuer (OdES are to enable follow-up of remittances from Divisions by 1-10 and Circle. At the time of consolidation Board's ACc:'un!5, tor a: amount in transit can be kncwn at main P./c level 24.5.
52 ACCOUNT
CODE
24.551
ACCOUNT
HEAD
Remittances from Circle. Sub-Accounts 551 to 599. HO will operate Circle-wise Sub-Accounts to monitor remittances from circles.
24_6 24.G01
TRANSFERS
24.9 24.911 to 24.919 24.92 i to 24.929 24.931 to 24.939 24.941 to 24959
CASH INFLOW
Cash Inflow (Capital Receipts) A/e (Credit A/C) Cash Outflow (Capital Payments) Ale (Debit A/c) Cash Inflow (Revenue Receipts) A/e (Credit A/c) Cash Outflow (Revenue Payments) Ajc (Debit A/c)
24.991 24995
Total Cash Inflow A/c-(Debit A/c) Total Cash outflow A/c. (Credit A/c)
25
25.
FROM
HO I N TRANSIT
ACCOUiHS
Transfers from HO AND
OUTFLOW
ACCOUNTS
ADVANCE
TO SUPPLIERS/CONTRACTORS
ADVANCE
TO SUPPLIERS/CONTRACTORS
Sub-codes 2510i
(CAPITAL) (CAPITAL)
INTERES1
BEARiNG
to 25.199 siall be used to identify advances t o
specific
pro-
jects to the extent possible.
25.5
ADVANCE
TO SUPPLIERS/CONTRACTORS
(CAPITAL)
INTEREST FREE
Sub-codes 25.501 to 25.599 shal! be used to identify advances to specific
pro-
jects to the extent possible.
25.7
CONTRACTORS
MATERIALS
CONTROL ACCOUNT
Sub-codes 25.701 to 25.799 shall be
US'
/
(CAP;TALj
d to identify advances to specific
jects. /
26 26. i 26.5
26.7
ADVANCE
•
TO SUPPLIERS/CONTRACTORS
(O&M)-INTEREST
BEARING
ADVANCE
TO SUPPLIERS/CONTRACTORS
(O&M)-INTEREST
FREE,
CONTRACTORS
MATER'ALS
26.8
ADVANCE
26.801 26.805
Advance to Coal Suppliers Advance to Oil Suppliers
27
27.1 27.101 21.102
CONTROL AIC (O&M)
FOR FUEL SUPPL' ES
OTHER LOANS AND ADVANCES LOANS AND ADVANCES
TO STAFF-INTEREST
BEARING
loans and Advances to Staff- House Building Loans and Advances 10 Staff -Scooter Sub-Accounts 101 to 119 for different types of
toa-s.
LOANS AND ADVANCES
TO STAFF~.-INTEREST
27.3
LOANS AND ADVANCES
TO LICENSEES'
27.4
ADVANCE
AND TAX DEDUCTIONS
27.2
INCOME-TAX
FREE
AT SOURCE
pro-
53
ACCOUNT
CODE
27410 27.421 27425
ACCOUNT
Advance Income Tax Income tax deducted at source-Income Income Tax deducted at Source-Other LOANS
27.8
HEAD
AND
PROVISION
ADVANCES
from !nves:ments Receipts
- OTHERS
FOR DOUBTFUL
LOANS & ADVANCES
(CREO!T A/C)
'57.9 SUNDRY
28
RECEIVABLES
SUNDRY
281 28.'01 28.102 2B.103 28.104 28.107 28.108 28.2 28.2\0 28.220
28230
DEBTORS-
TRADlNG
ACCOUNT
Sundry Debtors for Sale of Electrical Plant Manufactured by the Board Sundry Debtors for Sale. Hire Purchase or Hire of Apparatus and wiring Sundry Sundry Sundry Sundry
Debtors Debtors Debtors Debtors
iNCOME
for for for for
Sale of Stores Rental from Property Sale of Steam Other Miscellaneous Income
ACCRUED & DUE
Income accrued and due on Fund Investments Income accrued and due on Investments other than Fund Inv~stme-Its Income accrued and due on Investments in subsidiary companies Income accrued and due on Investments in Partnerships/Joint
Ventures
28.240 28.290
Income accrued and due -Other ~ (Sub-account codes may be operated in respecl at different lncornee within category e g. 28.211 Income accrued on Pension F~H1dInvestments)
28.3 28.310 to 28.340 28.350 28.360 28390
28.4 28401 28402 28.5 23.511 28.512 28513 28.514 29.531 23.532 2855\
28552
INCOME
ACCRUED
BUT NOT DUE
Sub-heads same as in the case of 23 210 to 28.240 above Interest Accrued but not Due-Loans Interest Accrued-Staff
& Advances to Licencees
Loans & Advances
Income Accrued but not Due-Other AMOUNT
RECOVERABLE
FROM EMPLOYEES/EX-EMPLOYEES
Amount Recoverable from Employees Amount Recoverable from Ex-Employees FUEL RELATED
RECEIVABLES
Grade Differences-'nferior
AND CLAIMS
Grade of Coal
Provision for Loss on Inferior Grade of Coal aauwev
Claims for Coal-Coal
Cost
Railway Claims for Coa!-Fraight Ouantitv
Difference -- Short Receipt of Gas
Prevision for Loss on Short Receipts of Gas Freight paid on coal VI/agars not received Erei;Jht paid on 'Ji! Tankers not received
.'
each
54
ACCOUNT
ACCOUNT
CODE
HEAD
28553
Coal Cost Claims for Claims for Claims for
28.&
SUBSIDY/GRANTS
28610
28.620
Capital Subsidy/Grants Revenue Subsidy/Grant
28.7
OTHER
28.72
Cl;,ims for Loss/Damage to Mai er iats
28.72!
28.729
Claims Claims Claims Ctaims CI aims Claims
28 74
Claims for La,s, Damage to Capital Assets
28.741
Claims Claims Claims Claims Claims Claims
28.553
28554 28.655
28.722 28.723
28.72~~ 28725
of wagons not received. Missing Tankers-Oil Cost Missing Tankers-Freight Short Receipts of Gas RECEIVABlE Receivable Receivable
CLAiMS
fo r for for io r for for
Loss/Damage Los5/0amage Less/Damage Loss/Damage Loss/Damage Loss/Damage
to to to to to to
Materials-Railways Materials .. Customs Authoritie3 Materials-Port Tur st Authorities MateriaI5-lnsurJnc~ Companies Materia ls-s-Suppt iers Materials -Othgrs
~
..
28.742
28.743 28.744
28.74:, 28749
for for for for for for
Loss/Damage to Capital As se t s Railways Less/Damage to Capital Assets-Customs' Authorities Loss/Damage to Capital As sets+Port Trust Au~horities Loss/Damag, to Capital Assets-Insurance Campani95 Loss/Damage to Capital Assets-SuPf)liers Loss/Damage to Capital Assets-Others
28.8
OTHER
RECE1VAeu:S
28.810
2881;)
Expenses Recoverable from Suppliers/Contractors Prepaid Expenses
28.357'
Exct3SS Rep:-.yment of Sta:e Go. ar nrr.ent Loans Expef'ses recoverable from SuppLers/Contrac;o;s re:a!e to certain expenses like dernurrage et c. incurred bv them whice ale recove.'~ible from them in terms 01 the pur ch.rse order.
'
289
DEPOSITS
28.911
Deposit wllh Custom i:'uthoriries.
28.912 28.913
Deposit with Port Trust Authorities Deposit with Excise Authorities Deposit with Telephone Authorities
--{-
28.914 28919
Other Deposits
28.95G
Seeur it ies from Suppl iars/ conuacio fS (Deposits in the 'form of Fixed Deposits etc).
28.932
Securities
from C0n~Umei6- (Ceposits
in ~ha fcun of Fixe{~ D~p("sits etc J
"
;,
if
55 ---_,.._-------_----------
ACCOUNT
CODE
ACCOUNT
--"
_---
-----_.--
HEAD
30
I NTER-UNIT
ACCOU NTS-·FUEl
31
INTER-UNIT ACCOUNTS.._--.--_ -MATERiALS - --- __ .._--_. _---
32
lNTER-UNlT
ACCOUNTS-CAPITAL
33
INTER-UNIT
ACCOUNTS-
34
INTER-UNIT
ACCOUNTS-FUNDS
36
INTER-UNIT
ACCOUNTS
37
iNTER-UNIT
ACCOUNTS-OTHER
__
..•
EXPENDITURE & FIXED ASSETS
REMITTANCES
TO HEAD OFFICE
TRANSFER FROM HEAD OFFiCE
- PERSONNEL TRANSACTIONS/ADJUSTMENTS
Each of the above accounts will r",ve, as sub·accOUi1:code. the 3-diQi! location code given to the Accounting Units with which the Inter-Unit transactions have taken place. FUEL RELATED LIABILITIES
'"
40.1
LIABILITIES
TO RAILWAYS
FOR COAL RECEIPTS
40.110 40.120 40.130 40.140 40.160 40.170 40.180
Freight Payable-Allotted Wagons Diverted Internal Wabons Fre~ght Pavable
40.2
LIABILITIES
40.2iO 40.220
Grade Differences-Superior Grade Provision for Gain on Superior Grade
Diverted External Wagons Freight Payable Unconnected Wagons Freight Payable Diverted
Internal Wagons-Coal
Cost
Diverted External Wagons--Coai Cost Unconnected Wagons-Coal Cost TO COLLIERIES
(Debit Account)
J,
/.
"
.
40.230
Retentions on account of inferior Grade
40.3
LIABILITIES
40.310 40.320 40.330
Freight Payable-Oil Unconnected Tankers-Oil Cost Ale Unconnected Tankers- Freight Payable Alc
40.4
LIABILITY
40.410
Provision
40.5
LIABILITY
40.510 40.~20 40.530
Gas Suppliers Accuunt Liability for Purchase of Gas Quantity Difference-Excess Receipts of Gas
TO RAILWAYS
FOR OIL RECEIPTS
TO OIL SUPPLIERS fOf
Unpaid Oil Bifts
FOR SUPPLY
CF GAS
56 ACCOUNT
CODE
ACCOUNT
HEAD
.. ..::..::::::::._._
40.540 40.0 40611 to
40619
40621 to
40.629 40.631 fa
40639
'.:;0..
Retentions LIABILITY
for Short Receipts of Gas FOR FUEL RELATED COSTS
'I
I
t
Coal Related Costs
J
.,
(Sub Accounts 40.611 to to 40.619 can be operated for liability related costs &.g 40 611--·Coal handing cobtractor s)
for specific coal
I·
v J !\. I
j
Oil Related Costs Gas Related Costs
40641 <40642
Provision for Coal Related Costs Provision hr Oil Related Costs
40643
Provision for Gal Related Costs
40.7
UNPAID
41
LlABlLlTY
COAL BILLS
OF POWER
FOR PURCHASE
41.1
SUNDRY CREDITORS FOR PURCHASE OF POWER (SUb-Accounts may be operated for each different suppliers of power e 9 41.10i National Thermal Power Corporation)
41.2
PROVISION
42
LlAB1LlTY
FOR CAPITAL
LIABILITY
FOR SUPPLY
42
1
FOR LIABILITY
FOR PURCHASE
OF POWER
SUPPLIES/CAPITAL
WORKS
OF MATERIALS/WORKS
CAPITAL
Sub-accounts 42101 to 42 199 should be operated for project codes to identify liability under specific projects to the extent possible.
42.2
SUPPLI ERS/CONTRACTOAS
CONTROL
A/C-CAPIT
AL
Sub-accounts 42 LOI to 42299 should be operated for project codes to identify creditors for suppliers/works under specific projects to the extent possible. PROVISIONS
FOR SUPPLY
OF MATERIALS/WORKS-CAPITAL!
liABILITY
FOR 0 & M SUPPLIES/O
43.1
L1ABiLlTY
FOR SUPPLY OF ,V1ATERIAlS/WORKS-O&M
43.2
SUNDRY
43.3
PROVISION
44
STAFF RElATED
LIABILITIES
STAFF RELATED
PROViSIONS
CREDITORS/CONTRACTORS FOR SUPPLY
Provision
44.2
UNPAiD
AND PROVISIONS
44.210
Unp.ud Saiar:es
44 220
Unpaid Bonus
Ior Pension 3A!..AR!ES,
CONTROL AIC
OF MATERIALS/WORKS-O&M
44.110 44.120
& M WORKS
BONUS
ETC.
.O&M
57 ACCOUNT
CODE
ACCOUN
r HEAD (
- ---------.-~---.-.
- ------,_._ --_
44.3
SALARIES,
44.310
44.320
Net salary Payable Bonus Payable
44.330
Liability
for Medical
44340
liability
for Earned Leave Fncashment
BONUS ETC. PAYABLE'
EXpenses
44.4
STAFF DEDUCTIONS
44.401
Income Tax Deducted at Source Employees' Contribution to PF Ernployet~s' Contribution to FPS Boards Co ntriburion to PF Board's Contribution to FPS
44.402 44.403
44.404 44.405
.._---
& RECOVERIES
PAYABLE
I
OTHER LIABILITIES AND PROVISIONS ----------.-._------------- ----------.~-.--_.
46.1
FROM
DEPOSITS
SUPPLIERS/CONTRACTORS
46.101
Security Deposits in Cash-Capital
46.102
Security Deposits other than in CaSh-Capital Earnest Money Deposit-Capital Retention Monav from Suppliers/Contractors-Capital Security Deposit in Cash-O&M
46.103. 46.104/'\ 46.12'1 46.122 46.12'3 46.124
M.
Security Deposit other than in Cash-DaM Earnest Money Deposit-O&M Retention Money from SuppJiers/Contractors-
O&M
46.3
ELECTRICITY
46.300
Electric itv Dutv & Other Levies Payable t\) Governnent
46.4
LIABILITY
46.410
Sundry Creditors for Expenses
46.430
Provision for Liability for Expenses
46.6
AMOUNT
46.7
ACCRUED/UNCLAIMED
46.710
Interest Accrued but not Due on Borrewinqs
46720
Unclaimed Interest on Borrowings
46.730
Uncleimed Repayments of Bonds/Debentures
46.8
PROVISION
469
SUNDRY
46.91
Cheques etc. in Transit
46.910 . 46.911
O'tJTY & OTHER UVIES
PAYA8LE
TO GOVERNMENT
FOR EXPENSES
OWING TO LICENSEES AMOUNTS
RElATING
FOR INCOME-TAX
LIABILITIES
AND
Stale Cheques
Railway Credit Notes for Coal
PROVISIONS
TO BORROWINGS
(
58 ACCOUNT
46912
46.913 46 ~'14 469; 5 46.920 46 ~22 46923 46.924 46925
46931 46935
CODE
ACCOUNT
HEAD
Raitwav Credit NO:6S for Oil Oth Raiiway Notes interest Warrants issued for Payment oj interest Of) Bonds Intl"rsst Warrant issued for Payrner-r of Interest 0:-) Debentures. Security De po si] from Employees Advance Received for Sate of Stores Scrap ere Income- Tax Deducted at Source on Payment of Interest on Borrowingl Income-tax Deducted at Source on Payments to Contractors Income- Tax Deducted at Source on other Payments Liabiluv to: Unissued Cheques Govemment S,;b,:idy Refundable er
Cr
edrt
46.96
46.961 46962 4696 j
Provision tor l.os s on Obsotescanca at Capital Assets for Loss on Obsotescence of Capital Spares Provisions for Loss on Obsole scencs of Stores in Stock Provision
Note :---The accoul1(-(Orher ivllsc"'!ian~ous Uobilities)-i':; ounts Specific account s for liebilirions of dilferenr
no! provided in the proposed chart 01 acetvoe should be opend under this glOUp 46.9
&: source must be identifIed to a specific account
and all transactions and 46 949
head between 46.910 _.I:
47
DEPOSiTS
FOR ELECTRIFiCATIONS
47.1
DEPOSiTS
FOR ELECTRIFICATION
47.2
DEPOSITS
FOR ELECTRJFICA '!"IONS OF INDUSTRIAL
47.3
DEPOSITS
FOR SERVICE CONNECTIONS
47.301 47311
Deposits for low 0' Medium V:lltiJge Service ConnecIons Deposits for H T. Service Connections
47.6
OTHER DEPOSITS FROM
=-==
SERVICE CONNECTIONS
ETC
OF VILLAGES ESTATES
CONSUMERS
(Sub-Accounts for each !VP~ of other deposits. for example: 47.601 Deposus Receivf'd rg irust Burnt Meters).
48
SECURITY
DEoOSITS
48.1
SECURITY
DEPOSITS FROM
(Sub-Accounls48.IOl
FROM
SECURITY
INTEREST
shall
(IN CASH)
be operated
to book
Security
Deposit
category).
DEPO::·ITS FROM
(Sub-Accoti",S 48.3
CONSUMERS
tr;48119
separatetv for each consumer 48.2
CONSUMERS
CONSUMERS
(OTHER
TH <\N IN CASH)
for consmrner csteqorles from 43.201 10 48.219!
PAYABLE ON CONSUME'RS'
DEPOSnS
(SUb-licc·)Unh for consumer c31egJrhs from 48.301 to 48.319)
50
BORRO~ViNGS
50.1
CASH
CREDIT FRO\i
50.2
BANK
OVERDHtJFT
51
PAYMENTS
FOR WORKING
CAPITAL
u' .
BANKS
DVE ON C/\PiTAL
h'
U.\BllITI'::S
59
ACCOUNT
CODE
ACCOUNT HEAD ._ .._._, -. . __ . .._---- _',._
__ __
REPAYMENTS
DUE
(Sub-Acccunts
51.1:):
should
should
rued and due on each source of capital
CAPITAL
52.1
BONOS
52 110 52.170
P':b!;c Bonds S'~nd Sucs,':riot,on
"
52.2
DESENTURi:S
"
51.210
RE Gebeiltures
52.250 52,270 52.190
Other Oebeniurrs
""
".
/"...
-, .......
52.~ ,~
l'
;.
52.310 52,350
\.
, ~
!OTHER
LIA8!UfI'=S
RE Deb;:n;ures--
..
be used for rerord:ng
moneys
THAN
pending
m!'ltcn.nq
for recording
STATE GOVERNMENT
-_ ..
due for
interest
ace
LOANS
Allotmsnt
I
r
JOANS/CREDITS;
Foreign CUHPncy Loans Foreign Curre ncv O$fsrrsd
PAYMENT
Cr sdit
52.5 52.501 53. ,
CREDIT
iN RUPEE
:-'3.2
~
53.4 53.5
LOANS FROI'A NAD.'\RO LO.-'\NS FRO:'.'I C.')MM~RCLAL
53.6 53.620
FlN/>."~C!AL ?A Hil CiP,,\TrON BY CONSljiv',£RS Fini3ncia\ P~'\f~ic~oatfon by C:o;"'lsumnrs-!nierest bS;SJij';g Fi0:;r;,i
'.....
54
--~~----------------..--
!<.t
54.1
FUNDS
._-.-
Contribution
DEFERRED
53.6'0
-
borrowings)
LOANS FRO"'" UFE INSURANCE CORPORATION LO.'lf)5 from L i C. LOt,NS F,::;Oi\'1 AGRiCULTURAL REFINANCE CORPORAriON lO.t..NS FPOM AGRiCUlTUR.h.l FINANCE CQRPOHATION lO.d.NS Ff~O;\:1RURi1L ::lECTRIFiCATION CORPORATiON
.t;-
..
Allotment
Deben lure:' 'money';/pendinq , Subs cr ipt ion !...
FOREIGN/CURRENCY
be operated
~
'*
repayment
52.4
53.3
~-
DUE
AND
">1.201 to 51.290
52 & 53
----_._ .._-_.---._ _
bOHowirgs)
1>ITEREST ACCRUED (St:b-accounl5
,,_
to 51.199
each source of capital
51'2
---.-- ..-.-------.--~------ ..
_.
BANKS FOR ELECn:J.iFICAF·ON
SCHEMES
FMO!V! ;:-,T.4TE GOVERNMENT
STATE GOI!EflNMENT
l.OANS
UNOER SECTiON
LOANS
lHWEH
GO OF THE ELECTRICITY
(SU?PL ':') -'; CL 1948 '..#
5<1.2
STATE GOVERNMENT
SECT1ClN 54 OF THE ELECTRiC lTY
:-~
::4.3
t~
_.
~...
514
AMOUNT RECti'.TD GUARANTE(_:O AMOUN'
FROM
STATE GOVERN~.F:rH
fH':CE1VED FROM ST .•\l E GOVERNMENT
FOR
REPAYMENTS
FOR INTEREST
GLU\.,RANTE2D. I~
' ..
,
1..-
Gf
53 ASSETS
NTS & SUBS!DlES
d:g\ each
TOWARDS
---_._---
COST OF CAPITAL
60 ACCOUNT
CODE
ACCOUNT
HEAD
55.1
CONSUMERS'
552
SUBSIDIES
55.3
GRANTS
56
RESERVES
56.1
GENERAL
562
CAPITAL
RESERVE
56.3
SINKING
FUND
534
INVESTMENT
56.410
Investment Allowance Reserve
56450
Investment Allowance Reserve-Utilised
56.5
TARIFF RESERVE
56.6
OTHER RESERVES
56.610 56660
Reserve for Materials Cost Var ianr e Exchange Variance Reserve Property Insurance Reserve
57
RESERVE FU NOS
57.1
STAFF RESERVE FUNDS
57.110
57.150
Contributory Provident Fund General Provident Fund Gratuity Fund Staff Pension Fund Staff Welfare FUl)d
58
SURPLUS
58 1
REVENUE ACCOUNT
58.2
NET REVENUE & APPROPRIATION
58.210
Net Revenue & Appropri aticn Account
58.22
ApproprIations of surplus/Contrib"tion
58.221
Contribution
58.222
Contribution to General Reserve
61
REVENUE
FROM SALE OF POWER
61.1
REVENUE
FROM SALE OF PO\7l' --INTER-STATE
56620
57.120 57.130
57.140
CONTRIBUTION TOWARDS
TOWARDS
TOWARDS
COST OF CAPITAL
COST OF CAPITAL
COST OF CAPITAL
ASSETS
ASSETS
ASSETS
RESERVE
FOR REPAYMENT
ALLOWANCE
OF BORROWINGS
RESERVE
ACCOUNT
t"' Reserv~s/Reserve Fends
to Sinking Fund for Repayment of Borrowings
1
SUb-accounts 61.10 to 61 19'
.;4
.....
.tates. ':.\BIl
)0
.
ope-ated for recJrdmg
sale to
differant
61
ACCOUNT CODE
61.2 & 61.3
ACCOUNT HEAD
REVENUE FROM SALE OF POWER OTHER CONSUMERS
Sub-accounts 61.20 to 6~39 sbould be operated for different categories of consumers as existing in the tariff structure of the respective Boards. ;n assigning Ihe sub-accounts it is desirable to bear in mind the Planning Commission's categories of consumers which are given below: -Domestic -Commercial -·Public Lighting --Irrigation & Dewatering =-Public Water Works =-lndustrie! (l T, HT, Power Intensive end Special) -Rail\ovay Traction - Bulk Supply -Outs ide supplies -Miscellaneous Under the main accounts 61.1, 61.2 and 61.3 the 5th digit of each account code should be tilled for recording individual type of charge under the tariff effective in each Board. The specific code should however be so structured that uniform type of charge should be booked under the same 5th digil code. For example-
o
Energv Charges Demand charges
2
Fuel Cost Adjustment Charge
8
Power Factor Surcharge
9
Adjustment to Past Billing
All adjustments made to correct the errors in past billing (but in current year) shall not be analysed into individual elements (0 to 8) but be booked in total under the head 9- ·"Adjustments to Pest Billing':. On incorporating the Consumer Category and individual type of charge, the account codes would evolve as illustrated below: e.g.
61.201 61.292
Revenue from Sale of Power-DomesticDemand Charges Revenue from Sale of Power- Public Wat(~r VVorks.-.Fuel Cos! Adjustment Charge
61.5
ELECTRICITY DUTY AND OTHER STATE LEVIES
61.501
Electricity Duty R~covery-Domestic Consumers
61.502
Electricity Duty Recovery-Commercial Consumers Thus the last two d,gits shall be used for recording separatelv from each consumer category
the excise duty recovery
62 ACCOUNT
ACCOUNT
CQ.JE
HEAD
-.~-----
61,521 to
) \..
Other Slats Levies Recovery
)-
Electricity
61,539 6l.S41 to
j
61.559 61 561
J
to
61.579
Dutv Pavble
(Contra)
'I
tr
J
Other State Levies Payabla (Contr a j NOTE 61.5 The sub-accounts ,n nus group are contra accounts Electricity Duty distinctly in {tic! Income Schedule
£1 /)
METER RENT/SERVICE
~I Q •
RECOVERIES
... .'
61.710 f;J
___.
no
enable reporting
of
LINE RENT p;L
FO R THEfT
OF POWER/MALP
RACTICES
Recoveries for Theft of Power Recoveries for Malpractices
fiLS
WHEEliNG
61.9 /' . -'c--
M!SCELLANEOUS
61 901
Fus~ Charges
61.902
Heconpe ctinn F",,,:
61.903
Public lightirg
6i.914
l\1e!o[ Bo.~ Charqes
CHARGES RECOVERIES
OTHER
CHARGES
Maintenance
Sub-accGUI11;;: to
be
oplHated
FROM CONSUMERS
Cha~ges
for
each type
of
miscellaneous
reeo v er v
INCOME
622
INCOME
62 21
-- ~.--.---....•--.-.-.,.~.------.--..------..
62
'0
~RD:'/l LOANS.
I,OVANCES.
INVESTMENTS ETC
z: Sub-acccunts 62.?20 ro 62.239
corresponding
to each type
of investment
as
Dela'/<-,d ?dvnl:~ntCharges trorn Consumers Imercd on Advances to Suppliei!:'/Cofltractors
62.21C-
IO'ei8z,{ flom Banks (other-,ban uratSd for as
!NCOME
H:COIlH~
FROM
interest on fixed deposits
from lnve:.;tments)
TRADiNG
which wH!
be acco-
63 ACCOUNT
ACCOUNT
CODE
HEAD .-
__ ._- ..-.-_-._.-._--.--_--~_.
~-.
----_._--_--
deducting cost from the sale proceeds)
..
62
OTHER
62.3
~NCOME FROM TRADING
62.321
Profit on Sale, Hir~ Purchase or Hire of Apparatus from the sale proceeds)
62.322
Profit on Sale, Hire Purchase or Hire of Wiring (Profit after deducting sale proceeds)
62323 62.330 62.340 62.350 62.351
Hire Charges from Contractors Profit on Sale of Scores (Profi; after deducting cost from the sale proceeds) Sale of Scrap (Sale p1CCe€08 since no cost is assigned to scrap) Sale of Steam, (Ssle proceeds since no cost is assigned to steam) Sale of Fly Ash (sale proceeds since no cost is assigned to Fly Ash)
62.36
Other Miscellaneous
62.360 to £2.369
Separate sub-accounts should be operated tor each type of miscellaneous receipts from trading normally received and 62,36~ should be used for balance miscellaneous receipts from trading
'62.4
GAIN 'ON SALE OF FIXED ASSETS
£2.6
INCCM E/FEES/COllECnONS
62.610 62.620 62.630
Film-Show Collections Fees from library Members Recoveries for Transport Facilitie.e
62,7
EXCESS FOUND
ON PHYSICAL
62.9
M!SCELLANEOUS
RECEiPfS
62.901 62.902 62.905 £2.906 62.910
Renta' for Staff Quarler5 Rental from Contr sctor s Excess found on Phssical Verification of Materials Stock Excess found on Physical Verification of Fixed Assets Recovery for Transport & Vehicle Expenses (Other than Recoveries from Staff)
62.912
sundry Credit balances written back
6l.913 62.916
Refund:; from Customs AUthorities Port Trust Refunds Commission for Collection of Electficity
63
SUBSIDIES AND
63.1 63.1'10 63.120
REVENUE SUBSIDiES I\ND GRL\NTS R E Subsidies Grants for Research and Development Expenses
63.2
SUBSiDiES ;\GAINST LOSS ON ACCOUNT OF FLOOD, FIRE, CYCLONE ETC
62914
INCOM E (CONT"O)
(Profit
after
deducting
cost
cost from
Receipts from Trading
AGAINST
STAFF WELFARE ACTIViTIES
VERIFICATION
Duty
OF FUEL STOCKS
/'
GRANTS
64 ACCOUNT
CODE
ACCOUNT
HEAD
65
PRIOR PERIOD INCOME
65.1
FUEL RELATED
65.110 65.120 65.130
Coal related Gains of Prior Periods Oi I related Gains of Prior Periods Gas re'ated Gains of Prior Periods
65.2
RECEIPTS FROM CONSUMERS
65.4
INTEREST
655
EXCESS PROVISION
FOR INCOME-TAX
656
EXCESS PROVISION
FOR DEPRECIATION
EXCESS PROVISION
FOR INTEREST
GAINS
INCOME
ON PRIOR PERIOD TRANSACTIONS
FOR PRIOR
RELATING
TO PRIOR
PERIODS
PERIODS IN PRIOR
PERIODS
IN PRIOR PERIODS
& FINANCE CHARGES
IN PRIOR
PERIODS
65
;3
OTHER EXCESS PROVISION
IN PRIOR PERIODS
65.:1
OTHER INCOME
70
POWER PURCHASED
ACCOUNT
701
POWER PURCHASED
ACCOUNT
RELATING
TO PRIOR PERIODS
/
(Sub-account for each supplier of power and separately excise) 703
WRITE
OFF OF COST OF ACQUIRING
OTHER WHEEliNG
71
COST OF GENERATION
71
FUEL CONSUMPTION
71.1 ~o
Cost Cost Cost Cost
71 ..130
71.140 71.150) 7UnO) 71 2
at of of of
TO RECElVE POWER
FROM
BODIES
704
71.:20
RIGHTS
for power cost and
CHARGES
PAYABLE OF FOWER
Coal Consumed-Steam Power Generation Oil Consumed-Steam Power Generation Gas Consumed-Steam Power Generation Gas Consumed-Internal combustion
."
(For each such separate cateqorv) FUEL RELATED COSTS COni Related Costs
71.21 1
71 212 71.213 71 2"14
7·1.215 71.218
71.217 71 218
Coal Hand!ing Contract Charges Demurrage on Coal Wagons Siding Charges Penalties fOT Overloading Commission to Agents Payments to Railway Staff posted at n,ermal Coal Stock Maintenance Costs Other Coal Related Costs
Pow€r Station ... 1 ,-,'
,
65 ACCOUNT
CODE
ACCOUNT
HEAD
71.2Z
Oil Related Costs
71.221 71.222 71.223 71.23
Oil Handling Contract Charges Demurrage on 0;1 Tankers Siding Charges for Oil Receipts Gas Related Costs
71.231 71.232
Gas Station/Pipeline Maintenance Gas Meter Testing Charges
71.3
FREIGHT
71.4
SToeK
VARIANCE
SHORTAGES
71.410 71.420
Stock Shortage
71.5
COST OF WATER
71.6
LUBRICANTS
71 7
STATION
Charges paid to Gas Suppliers
ON COAL RECEIPTS ON PHYSICAL
on Physical Verification
Stock Shortage on Physical Verification
8- CONSUMABLES
VERIFICATION
OF FUEL STOCKS
of Coal Stock of Oil Stock
STORES
SUPPLIES
Each of these three accounts will have sub accounts for Hydel Power Generation, Thermal Power Generation and Internal Cumbustion Power Generation. ...]1.9
COST OF GFNERATION WORKS FUEL RELATED
DURING
LOSSES
TRIAL
STAGE-CHARGED
TO CAPITAL
"
721
TRANSIT
72.100
72.101 72.102 72 131
Total Transit Transit Loss Transit loss Transit Loss
72.141
Loss on Short Receipt of Gas
72.2
LOSS ON SETTLEMENT
OF CLA!MS
72210
72.220
Difference Difference
of Railway Claims for Coal of Railway Claims for Oil
72.3
DEFFERENCES
IN GRADE
74
REPAIRS
AND
MAINTENANCE
74.1
REPAIRS
AND
MAINTENANCE
TO PLANT & MACHINERY
74.2
REPAIRS
AND
MAINTENANCE
TO BUilDINGS
743
REPAIRS
AND MAINTENANCE
TO CIVIL WORKS
74.4
REPAIRS
AND
MAINTENANCE
TO HYDRAULIC
745
REPAIRS
AND
MAINTENANCE
TO LINES. CABLE
LOSS OF FUEL loss-Coal I-Coal II-Coal of Oil
on Settlement on Settlement
FOR FUEL
OF COAL
WORKS NETWORK, ETC.
\
'--
fi6 ACCOUNT
COD E
ACCOUNT
HEAD
These five main account heads shall have Sub-accounts as follows
74.100 to 74.159
Normal Repairs & Maintenance, Such repairs shall be further classified in to departments/cost centres, These departments need not be the same as the departments for which employee costs are analysed However some degree of cornpanbuuv between the two bases of analysis would be describle. For each department.
the R & M costs shall be booked under 3 sub-heads
i
(1)
Ma:arials
issued from Stores
(2)
Payments for materials specifically purchased tor the repairs and directly rsceived at site (not through stores)
(3)
Payments to Contractors and other outside parties.
It should be noted !hat'_Payme:1ts to temporary employees shall not be booked under the account head 'Repairs and Maintenance' even if those employees were retained specificallv for a scheme. All employee under the account group "75 Employee Costs."
cost shall be booked
60 Account Codes (100 to 159) would accomo d rte 20 deps r t rnanrs with 3 aceou nt heads fo reach.
74.160 to 74.;89
Repairs & Maintenance under schemes for special an~ foreseen R & M sanctioned as a part of annual budge! or at the time of revision of buduets. For R
74.1 90 to 74.199
Repairs and Maintenance repairs and Maintenance
under specially
sanctioned
scheme for unforeseen
Each seheme shall be assigned code by the respective accounting unit. Each scheme shall have 3 sub-account codes as in case of normal repairs & maintenance.
74.6
REPAIRS AND MAINTENANCE
74.S1
Rspairs and Maintenance to Trucks Tempos and Trekkers ._-------
74.5·3.
Repairs and Maintenance
74.65
Repairs and Maintenance to Jeeps <1ndMotor Cars
74.66
Repairs and Maintenance
TO VEHICLES
to BuseS/Mini-Buses
to other vehicles
Last digit shall be used for booking the repairs case of Repairs and Maintenance to Plant.
and rnaintanee into :3 types
as
t
67 ACCOUNT
CODE
ACCOU NT HEAD
74.7
REPAIRS AND
74.70
Repairs and Maintenance
MAINTENANCE
TO FURNITURE
AND FIXTUREr'
to Furniture and Fixtur~
(Sub-account codes for analysis into 3 types as in case of Repairs and ance to Plant and Machinery.)
MAINTENANCE TO OFFICE EOLJlPMENV
74.8
REPAIRS AND
7480
Rej.')airs and Maintenance
to Office Equipmen
(Sub-account codes tor analysis into 3 types as in case of Repairs and ance to Plant and Machinery)
75
EMPLOYEE COSTS
16.1
S~.LARIES
75 11{i; 75.130 75.i50 ~ 75.170
Salaries-Permanent Employees Salaries-Temporary Employees- Regular Sala ries- Temporary Employees-Casua!
75.2
OVERTIME
75210 75230 75.270
Overtime-Permanent Employees Overtime- Tempore y Ernplovees- Regular Ovartime- Temporary Employees-Casual Overti me-Apprentices
75.3
DEARNESS ALLOVv'ANCE
75.310 75330
Dearness Allowance-Perrnan t Employees Dearness Allowance- Temporary Employees-Regular
75.4
OTHER
75.410 75430
Other Allowances-Pennant Employees Other Allowances- Temporary Employees-Regular
75,450 75.470
Other Allowances- Temporary Employees-Casual Other Ailowances-Apprentices
75.5
BONUS
75250
Mainten-
Mainten-
Salar ies-Apprent ices
ALLOWANCES
All the above accounts under 75.1, 75.2, 75.3, 754 and 75.5 should incorporate sub-account codes for identifying these costs to broad departments to be decided by the Board The purpose of departmentwise analysis of these costs is to provide information which can be used on various decisions such as capitalisation of staff costs etc. The codrnq would then be as illustrated below.
75126
Salaries-Permanent-Fuel Section Sa Iarios- Permanent -Accounts Salaries- Permanent- Electrical Maintenance Sala rie s- Permanent-Stores Salcries-Permanent-H.T Line laying Cell
75.·f27
Salaries- Permanen t- Workshop
75.111 75112 751 i 3 75.114-
To enable incorporating such coding of departments. the accounts have been 50 coded that each account can have 20 sub accounts e g. 75.110 to 75.129 salaries Permanent Employees.
68 -.-----.------~ ACCOUNT CODE
75.6 75.611 75.612 75.617 75.629 75.7 75.710 75.720 15.730 75.740 75.750. 75.760' 75.8 75.810 75.820>
75.830 7584075.850
ACCOUNT
HEAD
OTHER STAFF COSTS Medical Expenses Reimbursement Leave Travel Assistance Earned leave Encashment Payment Workmen's Compensation Act STAFF WELFARE EXPFNSES Medical Expenses Canteen Expenses Education Expenses Uniform & Livery Expenses Recreation Expenses Other Welfare Expenses TERMI NAl
BENEFITS
Terminal benefits (PF) Board'c Contribution Terminal benefits (FPS) Board's Contribution Terminal ben fits (Superannuation)
ioard's
Contribution
Terminal Benefits (Gratuity) Provident Fund Inspection & Audit Charges
75.9 EMPLOYEES COSTS CHARGED TO CA.PITAL WORKS
76 76.1 76.10' 76.101 76.102' 76.1042 76.105 7B.106· 76.11 76.111 76.112 76.113: 76.12 76.121 76.122 76.123 76.124-
ADMINISTRATION
& GENERAL EXPENSES
ADMINISTRATiON
EXPENSES
f
Property Related Expenses Rent (including Rates & Taxes
r
lease Rentals)
f
Insurance on Fixed Assets Insurance on Stocks Insurance
on Assets under construction
Communication Telephone & Trunk Calls Postage & Telegram Telex Charges Professional Charges legal Charges AUdit Fees Consultancy Charges Technical Fees
1 ~
J J J
•
69 ACCOUNT
CODE
ACCOUNT
HEAD
76.125
Other Professional
76.13
Conveyance & Travelling
76.131 76.132 76.133 76.i35 76.138 76.15")
Conveyance
Charges
Expenses
Travelling Expenses Travelling Allowance to Emp lov aas .
.
Vehicle Running Expenses- Petro i ft Oil (Other InA n Lucks/Dei .verv Van) Vehicle s License Et Regio;tr?t1(')fl Fe e
~.
76.16)
Other
76.151 76.152 76.155
Fees & Si;bsc~ip{io" Books & Per iadicaf s Printing ,ct Sti';tionefY Aoverttsmen t Expen 59 S
76.157
CONTRI8UTIONS
76.153
Expense':;
76.158
Elec!ricity Charges;
76.160
Water Charges
76162 76.190
Entertainment M isceilonsous Expense:;
76.2
MATERIALS
76.210 76220
Freighi on Capital Equip ments , Other Freight Transit Insurance
76.230
76.240 76.250 76.260 76.270 75.281
76.282 76.900
RELATED
EXPENSES
Vehict e Runnir 9 Expenses- T Tuck siDelivery Octr ai .
Vans
Advertisement of Tenders. Notices 8- Other purchase related advertisement incidental Stores Expenses I ,,/ Fabrication charqas Fabrication
c!H!!'ge5 abSf.Hbed
ADMINISTRAffON WORKS
,(1
cost Cjf fabric3tion/cred;,
At.!O GENER.t..L EXPENSES CHARGED
TO CAPiTAL
( Credit ACCQun t )
77
DEPRECIATlON
77.1 & 77,2
DEPREe!.£..T;ON
77.110 77 120 77.1~O 77.140 77.150 77.160
Arnort ise t lon Qrle'Jsehoid AS5e~ s Depreciat ion on Buiiding'i Depreciation on Hvdraulic Works Depreciation on Other Civil Works Depreciaticn on Plant & Micninerv Depreciarion on lines & Cable Network etc. Den r acia tion on Vehicte s D~p(ecialion on FvmHure & Fixtures
77.170
77.180
AND
OTHER
COSTS RELATING
TO FIXED ASSETS
70 ACCOUNT
CODE
ACCOUNT
HEAD
77 .190
Depreciation
77.210
Depreciation on Capital Board
77.220
Depreciation
on Spare Uni ts/Service
77.230
Depreciation
on Capital Spare s at Genarating Stations
77.250
Depreciation
on Assets taken over from licensees pendlnq finai v2iualio'l
on Office
Equipment Expenditure
resulting in an aSS'1t not
be cnginQ
to
the
Units
The above accounts will have sub-account codes similar to main ;.c:;ount codes of fixed assets 775
,i\ SSET
77 510
Sits Restoration
DECQfvlMiSSiCNlf\;
77.520
Building/Civil
77 530
Generating
G COSTS
Costs
Works Demolition
Costs
Plant Decommissioning
Costs
77 540
Transmission
77 550
Other Dec omrnissrontnp
77.6
SMALL
77 610
Small & Low Vaiue Items vVritten·Off
AND
Lines/Su b· Stat ion Decommissioning Costs
LOW VALUE
!TEMS WRITTEN
(Sub accounts 76 611 to 76. f 99
77.7
LOSSES
77.710 77.720
Written
77.730
Loss on sale of Fixed Assets
RELATiNG
:0 analyse
OFF
& control the write-off)
TO FIXED ASSETS
Down Value of Assets scrapped
Write-off
of Deficits
of Fixed Assets observed
(Last digit to be used for sub-account 77:9
Costs
DEPREClll.TION AND RElATED (CREDIT ACCOUNT)
upon Physical VerlliC2!icH)
codes for each of the m sin asset group)
COSTS CHARGED
78
INTEREST
& OTHER FlNANCE
78,1
INTEREST
ON STATE GOVERNMENT
78.2
INTEREST
ON BONDS
78.3
INTEREST
ON DEBENTURES
78.4
I NTEREST ON FOREIGN
WORKS
CHARGES
CURRENCY
LOANS
LO/lNS
73.5
IN TEREST ON OTHER LOANS/DEFERRED
78.59
Pena I Interest on Capital
& CREDITS
CREDITS
(IN
RUPEE}
liabilities
(Sub accounts 78.590 to 73.599 as p ar classification 786
INTEREST
TO CONSUMERS
78.7
INTEREST
ON BORROWING
78.8
OTHER
78.82 & 78.83
Discount to Consumers
INTEREST
TO CAPITAL
FOR WORKING
& FINANCE
CHARGES
of Capita! Liabiliiies)
CAPITAL
71
----------ACCOUNT
_._------------
CODE
;-,\CCOUNT HEAD
78 820 to 78 839
Discount to Consumers (or Timely Payment of Bills (Sub-accounts for consumer categories)
78.84
interest to Suppliers/Contra
78841
Inter est to Suppliers/Contractors-Capital
78.842
interest to Supphers/Contractors-e O & M
7885
interest on FDS, CPF, GPF, SOS etc.
78_850 78.851 78.852 78.853
Interest i nter est interest Interest
78.86
Cost of Raising Finance
on on on on
ctors
Fixed Deposits Contributory Provident Fund General Provident Fund Security Deposits from Staff
78.861
Stamp Duty
78.862. 78.863 78.864 78.865 78866
legal Charges Advertisements Service Fee Credit Fee Commitment Charges
78.87
Discount/Redemption
78871 78.873
Redemption
Permium on Bonds/Debentures
Discounts on Bond/Debentures Perrniurn on Bonds/Debentures
78.88
Other Charges ---
78.881 78.882 78883
Bank Charges for Remittances Between Board's Offices Bank Commission for Collection from Consumers Other Bank Charges, Guarantee Charces
78.884 78.89
!nterest en Pai rrenls ty Slate Government -
78.890
Interest on Sums paid by the State Government
78.9
CAPITALISATION
79
OTHER
79.1
MATERIALS
79.110 79.120
Materials
79.2 79.210 79.3 794
RESEARCH & DEVElOPMENT
Materials
R&D
DEBITS
OF INTEREST
under Guarantees ---under Guarantees
ON FUNDS USED DURING CONSTRUCTION
TO REVENUE ACCOUNT
COST VAR!ANCE
Cost Variance-Capital Cost Variance- O&M EXPENSES
Expenses
COST OF TRADING/MANUFACTURING BAD & DOUBTFUL
DEBITS WRITTEN
ACTIVITY OFF/PROVIDED
FOR
)~
, ,
72 ACCOUNT
CODE
ACCOUNT
HEAD
79.410
Bad Debts written off -Dues
79.420
Bad Debts written off-Advances
79.430
Bad Debts written off-Others
79.460
Bad and Doubtful Debts Provided for-Dues
79.470
Bad and Doubtful Debts Provided fo,-Advances
79.480
Bad and Doubtful
s
MiSCEllANEOUS
,
:,
from Consumers 10
,
Suppliers/Conttactor
.,
s
from Consumers
~ to Suppliers/Contractors
-~ 79
V «
Debts Provided for-Others
7~!510 79.5'11
Short." ges on Phvsica: Verification of Stocks Loss of Materials by Pilferage etc'
79.520 79.530 79.531
loss of Cash Written-off
7.'1532
~
LOSSES i\ND WRITE-OFFS
'~ "
Compensation for injuries. Death and Damages-Staff Compe nset ion for jpjuries. Death and Oamagas-· Oursiuer s Influctuou5 Caoi tal Expenditure Written-off
79.571 79.572 79.573
l. ass on Obsoiescence of fixed Assets loss on Obsolescence of Stores. etc. in Stoc k Loss on Exchange Rate Variation Sundry Debit Ba!ances Written-off. Loss on Sale of Scrap loss on sale of Stores
79.7
SUNDRY
797iO
Intangible Assets Written-oit
7972
Write-off
79.720
Write-off
79.730
Provision for Continqencie s
79.8
LOSSES ON ACCOUNT OF FLOOD, CYCLONE.
79881
loss to Fixed Assets on account of Floods. Cyclone, Fire. etc.
79.222
Loss to Stocks on account of Flood.
79 SfU
Loss to Assets under Construction
79 884-
Loss on Wrns-oit
79.561 79.570
EXPENSES
of Deferred Revenue Expenditure --------------_._----of Compensation for Premature Takeover of Licensee
FIRE. ETC
cyclone. Fire. etc.
"
on account of Flood, Cvclone. Fire. et c
oi Dues from Consumers in areas atteced by
Flocd.
Cyclone.
etc. PROVISION
FOR iNCOME-TAX
_- ..
FOR THE YEAR __ ._---------------------------------
FOR
INCOME-TAX
81
---.--
8i
PROVISION
83
PRIOR PERiOD
83.1
SHORT
832
FUEL RElATED
-_,
-- _ ..
FOR THE YE.A.R
FOR POWER PURCHASED
LOSSES AND
EXPENSES
• _.• •
~
EXPENSES/LOSSES
PROVISION
~
IN PREVIOUS
RELATING
YEARS
TO PREViOUS
YEARS
73 ACCOUNT CODE
ACCOU NT HEAD
83.210 83.220 83.230
Coal related Expenses/Losses of Previous Years Oil related Expenses/Losses of Previous Years Gas related Expenses/Losses of Previous Years
83.3
OPERATING
83.4 83.5 83.6 83.7
EMPLOYEE COSTS RELATING TO PREVIOUS YEARS DEPRECIATION UNDER PROVIDED IN PREVIOUS YEARS
83.8
OTHER
83.810 83.820 83.840
Short Provision for Income-lax-Previous years Administrative Expenses-Previous Years Materiais related Expenses-Previous Years
91
COSTS & REVENUE AT TRIAL
s 1.1
DEBIT ACCOUNTS
91.101 91.111
Fuel costs at trial stage debit account Operating costs at trial stage-debit account
EXCISE DUTY ON GENERATION
INTEREST YEARS
91.121, 91.131 & 91.191 91.2
91 201
EXPENSES OF PREVIOUS
AND
91.299
RELATING
TO PREVIOUS
CHARGES
TO PREVIOUS
RELATING
YEARS
TO PREVIOUS
YEARS
STAGE
FOR COSTS AT TRIAL
STAGE
For different expense groups
MEMORANDUM to
RELATING
OTHER FINANCE
CHARGES
YEARS
CREDIT ACCOUNTS
FOR THE DEBITS
Memorandum credit accounts for the debits
OF COSTS
in above accounts e.g 91.201 for
fuel cost at tria! stage credit account. 9i .3
CREDIT
91.301
Credit account for revenue from power generated at trial Stage
ACCOUNTS
FOR REVENUE AT TRIAL
STAGE
91.4
MEMORANDUM
91.401
Memorandum debit account for the credits in above revenue account
92.
MEMORANDUM PURCHASE,
DEBIT ACCOUNTS
ACCOUNTS GENERATION
92.1
TOTAL UNITS
92.2
UNITS GENERATED Tb errnal Hydel
92.20i 92.202 92.205
92.3 92.4
UNITS
92.5
UNITS
SALE ETC.
ACCOUNT
ACCOUNT
similar to those for 92.2)
PURCHASED
(sub-accounts
FOR RECORDING
ACCOUNT
Gas Turbine etc. AUXILIARY CONSUMPTION (Sub-accounts
FOR CREDITS
ACCOUNT
for each Source of Purchase)
SOLO ACCOUNT
(Sub-accounts
for each Consumer Category)
OF REVENUE
NO. OF UNITS OF POWER
74 ANNEXURE
III-BASIC
ACCOUNTING
1. BASIC ACCOUNT! NG PRI NCIPLES 1.1 A Board shall follow the basic accounting principles laid down in the following paragraphs in the preparation of its Annual Accounts. ENTITY
OF
ANNUAL
A
BOAR D FOR THE PURPOSE OF
ACCOUNTS
1.2 Annual Accounts of a Board shall reflect the transactions of the Board end of any other body in which the Board has ownership rights as a sole owner, partner or a member of association of persons and in the management of which the Board can exercise and actually exercises sign'ficant influence.
1.3 A mere fight to receive a part or whole of the power gener2ted by any other body, whether at cost or at a prefixed r a i e shall not be the ground for reflecting the transactions of such body in a Board's accounts. 1.4 Where the transactions of any other body have to be reflected in more than one Board's accounts in accordance with the paragraph 1.1, each Board shall reflect the assets, liabilities, income and expenses or that body in proportion of its ownership share in that body.
PRINCIPLES
drawn up on the premise continue indefinitely, CONSISTENCY
HISTORICAL
COST CONVENTION
1.6 In a Bo irds
accounts.
Assets, Liabilities,
Expenses and Revenue shall be recorded at the amounts at which the transactions took place. This policy implies that no revaluation of assets or liabilities shall be done for adjusting them to replacement cost, current cost etc. Similarly depreciation on replacement cost basis shall also not be permitted. GOING 1.7
CONCERN Financial
CONCEPT
st ate.n snts
of
8
'3,)aid sh311be
that its business will
CONCEPT
1.8 Uniform accounting policies shall be applied on the same basis from year to year. Even the accounting policies followed in respect of areas not specifically covered here after or in cases where departure from the prescribed accountirg policy is permitted, shall be followed consistently from year to year. TRUE AND FAIR PRESENTATION ------------
i.9 Accounts of a Board shall present a true and fair view of the financial position and results of operations of the Board. True and fair view implies the disclosure of all information necessary for a reader's understanding of the financial position and results of operations of the Board. 1.10 The objective of crescribinp the forms of annual accounts of a Board is to prescribe the minimum and uniform disclosure required by all Boards. Additional information in the accounts Or by way of notes may be given if it is necessary to ensu·e true and fair presentation. CASH BASIS
1.5 Interest acquired by a Board in snv body whose transactions do not require incorporation into a Board'S accounts in accordance with the paragraph 1.2 shall be disclosed at cost, in Board's accounts as investments. In such cases the excess or shortfall of Board's share of the net assets of the body over the cost of acquiring the interest in that body shall be disclosed in the Board's accounts by way of a note.
AND POLICIES.
OF ACCOUNTING
ONLY WHERE
PRESCRIBED 1.11 The cash basis of accounting ie, the practice of booking costs, revenues, assets and liabilities when money is received or paid and not when accrued shall not be adopted by a Board except in the specific case where cash basis is prescribed in this Annexure or in Annexure V tn all other cases, a Board shall follow commercial accounting system which requies recording of transactions by which revenues, costs, assets and liabities are reflected in the accounts for the period in which they accrue. NO RETROSPECTIVE PERIOD
ADJUSTMENTS
TO
PRIOR
REVENUE COSTS
1.12 All prior period revenue or costs arising on account of a difference between an accounting estimate made for accrual and the actual values involved or on account of any other reason shall be accounted for prospectively and no retrospective restating of past ve ars figures shall bepermitted.
I)
\) I)
\L
\).
~)
75 r.OMPARATlVE
shall be adjusted for any charges in estimates resulting from the use of such e'vidence. Identifying the events that require adjustment in accounts calls for the exercise of judgment and knowledge of the facts For example, a loss on an uncollectible receivable as a result of a consumer's deteriorating financial condition leading to bankruptcy subsequent to the balance sheet date would be indicative of his poor iinancial condition existing at the balance sheet date, thereby calling for adjustment of the accounts. On the other hand a similar loss resulting from a consumer's major casuallY such as a fire or flood subsequent to the balance sheet date would not be indicative of conditions existing in respect of the consumer at the balance sheet date and ad-
FIGURES FOR PREVIOUS YEAR
1.13 Comparative figures for the previous year shall ...e given in the annual Aecounts. No regrouping of nrevious year's figures shall be permitted except in ....ases where a different basis for the figures for the same item has been adopted during the current year. .ESERVES
NOT TO ABSORB CHARGE AGAINST
~EVENUE
, .14 Reserves of a Board whether created out of ..ppropriation from surplus of past years or in any other manner shall not be used (expect in prescrioed circumstancas) for absorbing the costs which -vould otherwise be a charge against the revenue of the current year, past years or future years.
;igo
iich
hd, ni-
d)-
justment would not be called for.
.• EVENUES NOT TO BE DIRECTLY CREDITED TO RESERVES
(3)
".15 No reserves shall be given any credit for any amount which should otherwise be treated as wenue for the current year, past years or future years. JHSETTING
OF ASSETS AND LIABILITIES
I.'
6 In the balance sheet of a Board, assets and "abilities shall be set of against each other only . when a legal right of offset exists. Payables to -ne party shall therefore not be set off against receivables from the same-party unless the Board . as a legal right to offset the two.
r-
The second type consists of events that provide evidence with respect to condltiof'S that did not exist at the balance sheet date but arose subsequent to that date. These events should not result in adjustment of the accounts. Some of these events however, may be of such a nature that the omission of their disclosure may result in misleading statements. Examples of this type of event (which . should not result in adjustment to accounts but which do require disclosure) are takeover of a licensee, loss from fire, flood etc .
NO DEFERMENT OF LOSS WRITE OFF -=VENTS
OCCURRING
AFTER THE BALANCE
SHEET DATE 1.17 All events or transactions occuring after the 'ate of balance sheet and before the date of the auditors report shall be treated in the following tanner.
1.18 The Revenue Account for a Board shall reflect full amount of the loss, if any, to the Board due to any natural calamities like cyclone, flood, etc. recurring events like fire or possibly recurring events like receipt of inferior grade of coal. No part of the loss shall be deferred for write off over
0.,-
future years.
(1)
Two types of subsequent events and transactions require consideration by the Board.
(2)
The first type consists of those events that provide additional evidence with respect to the conditions that existed at the date of the balance sheet and affect the estimates necessary for accrual etc. in the process of preparing annual accounts. All information that becomes available prior to the finalisation of the annual accounts should be used in evaluating the conditions on which the estimates were based. The annual accounts
3% RETURN AND THETREATMENT OF UNUSUAL AND EXTRA-ORDINARY
GAINS AND LOSSES
AND PRIORYEAR INCOME AND EXPENSES ".19 In a Board's Revenue Account, all unusual and extraordinary losses or gains and prior periods' income and expenses shall be disclosed separately. However, for the purpose of compliance with Section 59 requiring minimum surplus of 3% on fixed assets base such unusual extraordinary losses and gains and prior period credits and charge shall be consi-
If s s 1
de red in the same way as other usual and income
expenses,
a treatment
will
such
items)
been
affected
losses reflect
or gains for the year. Such
the
operating
surplus
year on account
has
of such
items. 2.
ACCOUNTING
2.1 Transactions in
accordance
down policies
beiow.
are classified
(1)
Capital
the
Accounting
The
Policies
prescribed
under the following
Expenditure
(2)
Fuel and Materials
(3)
Borrowings
(4)
Other Accounting
1. CAPITAL
POLICIES
of a Board shall be accounted with
herein
for laid
Accounting sections.
and Fixed Assets Accounting
Treatment
Areas
at Historical tion of fixed Assets
Expenditure on Project Identification Survey and Feasibility Studies
Material
COST OF CAPITIAL
ASSETS
2.4 Cost of a capital asset shall include all 'actual Costs' incurred to prepare the asset for use subject
costs
Inland freight on imported capital equip ment
(1) (2)
Freight
(3)
Testing charges-capital
(4)
Incidental ment
(5)
Octroi
(6)
Advertisement for tenders etc. for purchase of capital equipment.
Imported
on Local Capital Equipment equipment
Stores Expenses-Capital Equip-
on capital Equipment
."
Equ iprnents.
2.7 Capital equipments, spares and other rr-aterials imported by the Board shall be valued as follows for receipts and issues accounting: (1)
Cost F rei("h t Insurance
C. I. F. Value PLUS
2.3 Expenditure incurred on identification, survey and feasibility studies of a project before the project is considered for sanction or rejection, shall beaccumutated in an account provided for this purpose. Later, if the project is rejected, the full amount of expenditure shall be charged to Revenue as infructuous capital expenditure in the year in which the p'oject is rejected If the project is sancticned. the f:xpenditure shall be charged to capital wcrk-in progress account for that project. The Any expenditure incurred on detailed feasibility studies etc. after a project is sanctioned shall all so be charged to the capital work-in-progress account for that project. Th3 aggregate of the expenditure incurred before and after sanction of a project shall be allocated over the 'tangible' assets acquired/constructed under the project, in the same manner as the revenue expenditure chargeable to captial works are to be allocated.
related
2.6 At a location under which capital construction as; well as O&M activities are being carried out, only the following costs shall be charged to works
Cost and no Revalua-
2.2 Fixed Assets of a Board shall be recorded in the books of account and disclosed in annual accounts at Historical Cost. This policy implies that no revaluation of fixed assets shall be done for adjusting them to replacement cost, current cost etc. Similarly depreciation on replacement cost shall also not be permitted.
of
2.5 All materials related costs record€d at an accounting unit under which only capital construction activities are carried out shall be charged to capital works,
and investments
EXPENDITURE AND F!XED ASSETS
Discio5ure
J '
to the exceptions and the bases of determining costs prescnbed in following paragraphs.
(and not conceal by ignoring
that the Board's during
recurring
(2) Outside
Customs Duty Labour/Contractor
Charges
28 All labour charges or contractor charges payble to outsiders for work done by them in respect of capital jobs shall be included in the cost of concerned capital assets. Employee Costs of Board's
Staff
2.9 All employee costs in respect of construction units shall be fully charged as cost of capital assets.
"
t
2 , 0 For an O&M. cum-capital unit, the procedure for accounting Employee Costs shall be as follows: (i)
Temporary employees-monthly payments such as salaries/wages, dearness allowance, overtime and other allowance shall be capitalised. Some temporary employees may be entitled to retirement benefits. Monthly contribution to Provident Fund and Family Pension Scheme should also be
77 capitalised. 1 f however, any temporary empoyees are entitled to annual payment like bonus, no part of it should be capitalised because by the time of bonus payment the relevant capital. jobs project that they worked on might have been completed and closed and the asset cost already determined and transferred to fixed assets. For the sake-of uniformity" no capitalisation of such annual payments shall be done even if the jobs are not closed.
(5)
Technical charges.
documentation
and
(6)
Other consultancy charges-Projects includes architectural fees)
(7)
Power consumed for construction.
design
(which
No part of any other Administration and general expenses shall be charged to capital works. Capitalisation
to Depreciation
2.13
(2)
Additional emoluments (e.g. Project allowance) to DaM staff for working additionally on a capital project shall be recorded in a separate account on accrual and shall be fully capitalised.
(3)
A separate payroll shall be prepared for a group of permanent staff members, if any deployed exclusively or largely on capital jobs. The casts should be booked under a distinct department codes such as 'constructron ' or 'Project Section' etc. All monthly payments (salaries, overtime D.A, and other allowances) recorded under such departmental codes shall be fullv capitalised. However, no part of retirement benefits and annual payments should be capitalised.
\
..
(4)
In respect of other permanent employees who work on both capital and OeM jobs without additional emoluments, no part of the employee costs shall be capitalised.
Expensos 2.11 All
Chargeable expenses
to Capital
Works
in respect of construction units
shall be fully chargeable as cost of capital assets. 2.12 At an O&M-cum-capitallocation (where both capital and DaM work is being carried out) only the following expenses shall be capitalised. (1)
Insurance on assets under construction.
(2)
legal charges and stamp tees in connection with agreements with capital suppliers contractors.
(3)
Fees payable to foreign technician for capital projects.
(4)
Expenses incurred for foreign technician for capital projects.
Depreciation on construction facilities (earthmovers. cement mixers etc.) shall be capitali sed, Similarly, depreciation on fixed assets used for construction of other assets (e.g depreciation on vehicles .transferrc d to a project, depreciation on bu iloing. furniture &fixtures, vehicles and office equipme nts at construction division or construction circles) shall also be charged to capital works. No Capitalisation
of losses
2.' 4 Some lasses may be involved in execution of capital projects for, example irrecoverable advances to contractors, loss of assets or damage to assets at construction stage and shortage observed upon physical verification of stores at construction divisions No part of any loss should be capitalised and includEd in the cost of assets. No Capitalisation
of Income
2.15 No income shall be capitalised and reduced from the cost of any asset. Even in cases where the income is identifiable to one or more specific assets, no capitalisation of such income shall be done. The policy is however, subject to a different ieratrnent prescribed for revenue during trial stage. Subsoquent
Increase/Decrease
in Costs
2.16 All subsequent increase or decrease in capital expenditure shall be identified to relevant assets and the cost accounted for earlier for that asset shall be changed accordingly Subsequent increase/Decrease and Other Expenses.
in
staff
Costs
2.17 Any subsequent increase or decrease in the staff costs and other expenses which were charged to capital works in the past shall be treated as follows (1)
If the increase or decrease has taken place during the same accounting year (as the year in which the expenses were originally
78 charged to works), the amount of increase or decrease should be added to, or deducted from, the staff costs and expenses chargeableto works for the period in which the increase decrease has taken place.
rE ~(
tr c 18
(2)
If the increase decrease has taken Jillace in the accounting years subsequent to the accounting year in which the relevant staff costs and other expenses were incurred, the amount of increase/dec-ease shall be ignored for the purpose of capitalisatin of expenses in the subsequent years.
) )
Land and land
(6)
Architect's fees for remodelling, alterations, improvements before the building is first put to use.
2 21 Cost of a constructed building shall include the followmq items = (1)
Cost of construction comprising of materials, labour, contractor charges and depreciation on construction machinery
(2)
Surveying
(3)
Cost of obtaining permits, sanctioned plans. occupation certificates from Municipal or other bodies
(4)
Architectura!
(5)
Insurance on uncompleted structure
(6)
Cost of excavation (excavation of land development).
Rights
2.18 land cast shall comprise of the following
fees
(\)
Purchase price of land
(2)
Compensation
for acquisition of land
(3)
Compensation acquired land
for
(4)
legal charges stamp duty etc. incurred in order to secure effective title
(5)
land revenue and other taxes paid during the stage of land development
2.22 Expenditure on additions. improvements. replacement and repairs and maintanance shall be treated in accordance with the policies prescrib id in the following paragraphs.
(6)
Site preparation costs such as cost of leveling hills or filling low spots cost of cleari ng trees etc.
Repairs before Commissioning
(7)
trees and crops on the
Cost of demolishing an unwanted structure if the land is acquired with structure
2.' 9 Cost of land improvements having a limited life such as cost of landscaping. gardens. SIdewalks, fences and digging for sewage system shall also be added to Cost of Land as "Cost of Land Development". Buildings 2 20 In case of purchase/acquisition of a building, the building costs shall include the following items: (1)
Purchase price
(2)
Compensation for acquisition of Building
(3)
Payments to tenants to cancel their tenancy rights
(4)
Expenses such as legal charges. stamp duty etc incurred for securing an effective title
Additions, pairs
Improvements,
is not a cost
Replacement
& Re-
of Assets
2.23 Any expenditure on repairs or rehabilitation of an asset purchased by the Board (whether second hand or new) incurred before commissioning the asset 'for puttirg the asset in usable condition' shall be treated as a cost of that capital asset. Repairs and Maintenance 2.24 Any expendi ture on restoring
an asset
back upto the level ot output / efficiency/performance at which it was, when it was first put to use is repairs expenditure. Any expenditure on maintaining the asset upto the level of output/efficiency/ performance at which it was, when it was first put to use is maintenance expenditure. 2.25 Expenditure on repairs and maintenance shall be charged to revenue hi the year in which it is incurred. This shall be done regardless of the amount of any repairs or maintenance expenditure. Additions
(5)
Repairs. alterations and improvements put the building in usable condition
to
2.26 Additions may bring into existence a new asset or increase the physical size of an asset through expansion. extension etc. All expenditure on additions shall be capitalised.
Improvements 2 27 An expenditure having the effect of extendmg the useful life of an asset or increasing output - r capacity or efficie ncv of an asset or decreasing operating costs of an asset is 'Improvement'. Expen"ture on improvement may involve replacement of old (e 9 replacing a transformer by another trans.rrner of higher capacity) or may not involve replacement of old (e.g. expenditure on acid resistace lining in a tank in water treatment plant). All expenditure on improvements shall be capitalised. Alterations
Renovations
Contributions, Cost of Capital
Grants Assets
& Subsidies
Towards
2.33 Contributions,
Grants and Subsidies towards cost of Capital Assets shall be treated in accordance with the policies laid down in the following paragraphs.
2.34 Amount receivable as consumer's contribution, subsidy or grant towards capital assets shall be credited to appropriate account set out in Chart of Accounts only if the following conditions are satisfied : (1)
2.28 In case of alterations or renovations of bull.ng or plant, the treatment of expenditure shall be similar to that for improvements.,
the amount is not subject to any conditions to be fulfilled by the Board or the conditions attached to the amount have been fulfilled by the Board
(2) Rearrangement
no part of the amount is refundable nor is likely to become refundable by the Board.
2.35 Consumer's
2.29 All expenditure on rearrangement (of plan ..Jyout, office layout etc.) shall be charged to reve....re in the year in which the expenditure is incurred. r> ~placemen t
2.30 Replacements can be defined as 'Substitudon of one fixed asset by another, particularly of an ..i asset by a new asset or of an old part by a new I-iart'. Expenditure on m nor replacements shall be arged to revenue as Hepairs and Maintenance t:.xpendllure M ajar renlacemen t expenditure shall capitalised. However, the cost and accumulated Jepreciation of the old replaced asset shall be withJwn when the expenditure on the new raplacing asset is capitalised A broad criterion of distinguiing minor and major shall be that replacement of my asset or part of the asset for which a separate .ed asset record is required shall be considered najar replacement. )lecemeal
Rebuilding
2.31 An asset may be rebuilt by replacement of 3 components over a period of time instead of at ' ...e time. The criteria fixed for 'minor' 'major' re.acements shall in such cases be applied to the '-g~egate of expenditures on replacement in an .set and accounted for accordingly,
2.32 Any expenditure incurred on shifting asset -rn one place to another place shall, regardless of .-.e amount of expenditure, be charged to revenue the year in which the expenditure is incurred.
Contribution, subsidies and grants towards cost of capital assets sh all not be treated as a reduction in the 'cost' but as a capital receipt to be credited to capital reserve account. , 2.36 Accounting for cost of a capital as at shall be done in the normal ccurse without considering any contribution, subsidy or grants towards the cost of the asset Depreciation shall also be charged in the normal course on the 'full cost' of the asset.
/,{
Full Write-off
of Small and Low Value Items
"
237 Full cost of all small and low value assets each costing Rs. 500 or less shall be fully charged to revenue in the year in which the assets are put to use. No part of the cost of such items shall therefore be included in' the cost of fixed assets nor shall any depriciation be charged tnereon. Exceptions 238 The policy for full write-off stated in graph 2.37 above shall not apply to :
para-
(1) Items of a type for which a specific classification has been prescribed for the purpose of depreciation under the Electricity (Supply) Act, 1948. (2)
Items included under the classifications 'Furniture & Fixture' and Office Equipments',
2.39 The accounting policy for write-off of small and low value assets precribed in paragraph 2.37 shall not apply to cost of granting each service connection.
80 Asset
Criteria to apply to whole individual components
and
not
to
240 In applying the accounting policy for full write-off of small and low value items, Ihe asset as a whole shall be recognised and the individual spare parts er eemponenr s of the asset shall not be treated separately. The criterion of Rs. 500 should therefore be applied to the aggrtgale expenditure. Piecemeal Buildmg
of Assets
2.41 Assets may be completely built over a considerable period of time rather than at one time. The cut-off criteria for write-off should in such cases be applied to the aggregate of expenditures and accounted for accordingly. Commissioning
of Assets
2.42 All capital expenditure
shall be accounted
for through capital Work-in-progress
accounts.
cornrnissioninp of the assets. the expenditure
On Shall
be transferred to appropriate fixed assets accounts. Transfer from capital work-in-progress
accounts to
fixed asset accounts is referred to in this section as 'Capitalisation
of
Assets.'
The accounting
cies prescribed for capitalisation
poli-
of assets are laid
down in the follovVing paragraphs. Capital isation
when Asset is first
put to use
2.43 An asset shall be capitalised when it is first put to use. Assets actually
which are 'commissionable' commissioned
but
not
2.44 An asset which is installed/constructed and is in 'unsuitable/commissionable' condition but is 'not commissioned/put to use' shall not be capitalised until it is actually put to use.•
Technical
Certificate
2 47 Commissioning of an asset is a technical matter which involves consideration of various factors such as trial, testing to ensure whether the asset is inusable condition etc. Capitalisation of assets shall therefor. be done an issue of Asset commissioning certificate from the relevant Teennical Authority of the Board. Capitalisation Contractors
regardless
of
disputes
with
2.48 Mere disputes with contractors/suppt ers regarding the fulfilment of the terms and conditions of contract with them shall not be permitted to withhold or defer capitalisation of assets concerned Cost of the assets determined on the basis of the contract should be capitalised by making necessarv provision for liability to contractors/suppliers acknowledged by the Board. Capitalisation of Contractors'
regardless of Bills, etc.
Non-finalisation
2.49 Mere non-submission of interin or final bills by suppliers or contractors shall not be permi ... tted to withhold capitalisation of assets, In cases where bills are not received or are received but not passed, a provis.on should be made for an amount as per the conttact. The cost of assets concerned shall be determined accordingly and capita Iised when assets are first put to use Escalation
Claims
2.50 Cost escalation claims made by suppliers and contractors should be provided for to the extent the claims are acknowledged by the Board and cost of assets inclusive of such provision shall be capitalised when the asset is first put to use. Rural Electrification
Schemes
;,-}i{~.j
2.45 All costs incurred on capital as~ets (including costs incurred on maintaining the assets which are ready but await the actual commissioning) shall be charged as the cost of the assets, No waiting
for Finishing
TOUches
2"46 Cost of any asset incurred upto the stage of commissioning of the asset should be capitalised when it starts being used without waiting for any finishing touches which may not be significant in work and value. Costs of such finishing touches when completed, should be accounted for and added to the cost of the asset capitalised earlier.
2.51 Cost of assets forming basic infrastructure for an electrification scheme shall be capitalised, when the infrastructure is first put to use and lines are energised. The subsequent expenditure on granting service connections, shall be capita lised as and when f ach service connection is granted Capitalisation of individual service connections shall not be withheld or deferred until the targetted number of service connections granted. Full Capitaliation
of Aommon
Fecilities
2 52 Certain asset may constitute common faciliIltiss, such OlS coal handling plant at a power station project which would prOvide services to say 3 uints
81 Full
cost of such common
capitalised
faci lities
when the assets
Ful l Capitaliation
assets
are first
cess shall be deducted from the cost of the assets involved at trial stage.
sha II be
put to use.
of Underutilised
Assets
(5)
2.53 An asset once put to use, even if underutiIlsed. shall be capitalised for its full cost. Commissioning
of Power Station
2.54 The prescribed accounting policy for capitalisation of power station assets is laid down below:
(1)
All costs incurred prior to commencement of trial stage shall be capitalised.
(2)
All costs and revenue during the trial stage shall be treated in the manner prescribed in p3ragraph 2.56 titled' 'Costs and Revenue at Trial Stage".
(3)
At the end of the trial stage. the generating plant shall be treated as 'commissioned'.
Commissioning stations
of Transmission
Lines and Sub-
2.55 On commissioning of a transmissions lines. all the assets which are put to use shall be capitalised and the total cost of such assets shall be transferred from capita I work- in- progress accounts to Fixed Asset Accounts. AI! expenses incurred before commissioning of transmission lines and substations shall be included in the cost of the assets, Costs
and Revenue during
Traial Stage
'2 56 Costs incurred and revenue earned (from sale of power generatfd by the unit under trial) during the period of trial stage shall be treated as follows: (1)
(2)
(3)
(4)
Full period of trial stage or the period of three months from the commencement of trial stage (whichever is shorter) shall be called capitalisable period. Tria! stage costs incurred during the capitalisable period shall be treated 8S capital costs of assets involved. Revenue earned from the sale of power generated (by the unit under trial) during the capitalisable period shall be treated as reduction in capital costs. The excess of costs as per (2) above over the revenue as per (3) above shall be added to the costs of the assets involved at the trial stage. If the amount of revenue is greater than the amount of costs, the ex-
All trial stage costs incurred or revenue earned after the end of capitalisable period shall be taken to Revenue Account without capitalisation of any part of it.
Capitalisation Stations
of Capital
Spares at Generating
2.57 'Capital
spares at a Generating Station' purchased prior to commissioning of the generating station shall be capitalised upon 'Capitalisation of the Generating Station' for which the spares are purchased. 2.58 Capital spares purchased subsequent to the commissioning of the generating station shall be capitalised upon purchase. Capitalisation
of Spare Units/Service Units
2.f9 Assets which are to be claasified as Spare Units/Service Units in accordance with the accounting policy recommanded under the section 'Other Accounting policies' shall be capitalised when they are 'Put into usable condition' regardless of whether they are actually used or not. DE?RECI ATIOt-J
260 The accounting policies relating to depreciation on fixed assets are laid down
in the follow-
ing pJragr.3phs : (1) The Board shall charge as depreciation on the fixed assets in use in the beginnirg of the year. such an amount as is required to write-off 90 per cent of the cost of an asset. on a straight line method over the 'estimated useful life of the asset'.
(2)
Depreciation charge on an asset shall cease from the year following the year in which the year's depreciation along with the depreciation charged in the previous year(s) hecorn es equal to or more than 90 per cent of the cost of the asset or the asset permar ently by the Board
ceases to be used
whichever is earlier. (3) Depreciation charge on a newly commissioned assse t shall commence in the year immediately followir:g the year of commissioning.
82 Depreciation
on leasehold
Retrospective
Assets
2 61 In respect of leasehold assets, the dspreelation to be charged every year shall be such an amount as is required to write off 100 per cent (unl ike 90 per cent for ot her assets) of the cost of leasehold asset. on a stratght line method
Reworking
of Depreciation
2.65 Retrospective reworking of accumulated depreciation owing to change in the amount of cost of an asset for the reasons mentioned in 2.124 small be made only where the increase/decrease in the amount of cost is more than
Rs. 50,000 for an asset: and
over the e st'rnated useful life of the asset or
....
20 per cent of the cost booked earlier.
In all other cases, the depriciation in the balance
over the period of the lease whichever is shorter. in considAring the period of the lease. wal clause. if any, in the lease aqreernent
the reneshall
life of the asset should be increased or decreased proportionately so that 90 per cent of full cost (or 100 per cent in case of lease-hold assets) is depreciated over the estimated useful life of the asset.
be Depreciation
ignored.
').62. Exoenditure on development/improvement on laa seho+d assets shall be depreciated in such a way that full amount of such expenditure, can be' written-off, on straight line method over
on Assets used for Construcion
2.66 Assets used for construction
are classified
as under:
(1)
Construction
(2)
Project Assets
(3)
Fixed Assets
Facilities
the estimated useful life of the asset or the balance of the lease period
2.67 By 'construction
taci litie s' is meant those assets which are intended for use on one or the other capital project.
whichever is shorter. In considering the lease perio d. the rnnewal clause, if any, in the lease agreement shall be ignored. Second
Hand Asse ts
2 63 Second hand assets i.e. assets
used
by the
previous owner (for whatever number of of yeers) and acquired by the Board shall be depreciated over the estimated useful life of those assets ascertained by the State Government and where no such pericd is ascertained by the State Government 'Half of the estimated useful life of new assets of that class' (as if half the life is expired) Assets of Common
Retirement
Date
2.64 Assets which are of use only collectively in a g'oup and an individual asset in that group is of no use in isolation after the other assets of the group are retired/scrapped, are defined as 'Assets of Common Retirement Date'. The 'period of estimated useful life' adopted for the purpose of charging depreciation shall be 'common' for 311 the assets in the group of 'Assets of Common Retirement Date'.
2.68 Depreciation shall be charged on assets classified as construction facilities in the norma! manner as it is charged 0:1 assets used for 0 a M except that the amount of depreciation shall be debited not to Depreciation Account but to 'capital WIP-Revenue
Expenses Reclassified
Account',
2.69 Certain assets acquired/constructed as a part of a project may be used for construction of other assets of the same project. SUch assets should be capitalised when they are first put 10 use capitalisation should not be withheld til] commissioning of say power plant itself. Depreciation is not chargeable in the first year of commissioning. From the subsequent year, depreciation should be charged in the normal manner. However, the depaciation so charged shall be reclassified and charged to cost of other assets of the project.
2.70 Fixed Assets used for construction means those assets which have been, on their commissioning, transferred 10 Fixed Assets accounts, and are now deployed on any project at construction stage.
2.7i Depreciation on such assets be charged in the normal manner. The amount of depreciation charged such assets shall be later reclas s i-ied and cha ged to capital works.>'
f
j
j
83 Provisional
Account for the year in which the scrapped assets
Depreciation
are found unrealisable.
2.72 Board shall ensure that there is no asset which is in service but not depreciated for such as
reasons
(1)
Precise cost not known
(2)
Estimated useful life not known or
(3)
The responsibility for maintenance and/or accounting of newly constructed/acquired assets not known
Boards shall endeavour to remove any such reasons at the erliest and shall in the meantime charge at least provisional depreciation on the assets concerned. Retirment. of Assets
Scrapping.
Obsolescence
and
Sale
Gain or loss on Sale of Assets 2.77 Gain or loss arising on sale of capital assets shall be treated as a revenue item. The gain shall, subject to paragraph 2.78, be credited to Revenue Account for the year in which the assets is sold and the loss on sale of a capital asset shall be debited to the Aenue Account for the year in which the asset is sold
2.78 The gain on sale of assets shall be treated as a Revenue item only to the extent of total depreciation charged on the sold asset. Gain if any in excess of the accumulated depreciation charged by the Board on the sold asset shall be treated as a capital gain and credited to Capital Reserve.
The accounting policies relating to retirement scrapping obse!escence and sa'e of assets ere laid down in the following peragraphs.
2.79 For the purpose of computing gain or loss on sale of an asset also the contributions. grants and subsidies towards cost of any capital asset sold shaII not be reduced from the cost of the asset so ld.
Cost of Retirament.
Date of Acquisition
2.73
Scrapping.
Sale of Assets
2.74 All costs incurred on retirement scrapping and sal-a of assets shall be charged to Revenue Account in the year in which the cost are incurred. Examples of such costs are: (1)
Building/Civil
Works demolition
costs
(2)
Plant decommissioning
(3)
Site restoration
(4)
Expenses like Legal Charges and stamp duty for transfer of title to the purchaser
(5)
Fright etc. on transfer of assets to any Asset/Scrap Disposal Authority in the Board
not known
2.80 In case of assets scrapped/destroyed/sold for which the date of acquisition is not known. it shall be assumed, for the purpose of withdrawal of cost ar.d depreciation. that the asset concerned was the oldest asset of that type in use at that account-
ing unit. costs loss of Assets
(6)
Expenditure on freight etc. on delivery of the sold assets/scrap to the purchaser ..
Withdrawal
of cost and Depreciation.
2.75 On reir ernent, scrapping. obsolescence of an asset. the cost of the asset and the accumulated depreciation on it shall be withdrawn from the fixed asset base and transferred to a separate account provided for this purpose. Lo ss on Scrapping
Write-off
for which no written down o'f 8S "writen the Revenue
of loss
2.82 Excess of the written down value of the lost/destroyed asset over the amount of insurance claim granted shall be charged to revenue in the year in which the insu ranee claim is settled. Other Accounting
Policies
2.83 The accounting policies for all other matters in relation to capital assets are laid down in the following Capital
of Assets
2.76 In case of scrapped asset scrap/salvage value is, realised, the value of such assets shall be charged down value of assets scrapped" in
2.81 In the event of loss/destruction of an asset. the cost and the accumulated depreciation on that assets shall be withdrawn from the fixed assets block and provision for depreciation respecitively.
paraqraphs. Spares at Generating
Stations
2.84 The accounting policy in respect of capital spares at generating stations is given below: (1)
The capital spares at generating stations should be treated as a capital asset.
84 (2)
Accounting shall be done together for the entire 'lot' of the spares and not item by item.
(3)
The total cast of all the spares shall be
2.87 Depreciation shall also be charged as in the normal course basad on the provisinal valuation. Estimatsd useful life shall be as fixed by the State Government. If State Government has not fixed any life half of normal life shall be adopted.
capital ised.
Spare/Units
No accounting shall be done at the time of issue of such spares for replacement in the
2.88 The accounting policies prescribed for spare units/service units are given below. The term 'spare unit' covers both spare units and service units.
(4)
generating plant. (5) However on the other hand. depreciation / _ _____./shall be charged on the total cost of the
(1)
For the purpose of charging depreciation, the estimated useful life of the spares shall be assumed to be equal to the estimated useful life of the generating plant.
(7)
On this basis, depreciation equai to 100% (not 90:~ as in case of other assets) of the cost of spares shall be charged by the time the generating plant is to be retired.
(8)
On expiry of the life, the spares will
<
All spare units shall be capitalised when they are purchased and put into 'usable condition (ignoring the fact that they are not actually being used and lying in stores
entire lot of spares. (6)
"
Service Units
unulilised). (2)
Depreciation on spare units shall be charged in normal course as charged for the same type of assets which are 'in use'.
(3)
When the original units are removed for repairs or maintenance and the spare units are intalled, no accounting adjustments are
1\
necessary. there-
(4)
Expense on repairs or maintence on the removed units shall be charged to revenue.
(5)
No accounting entry will be passed either:
fore be valueless. (9)
The spares remaining unutilised may be sold along wi.th the retired generating plant. Entire sale proceeds should be treated as gain on sale of assets since 100% depraciation
(10)
when the removed unit is put
is charged in the past.
_
In respect of lhe stock at spares remaining unsold on retirement of tile plant, no
If some spares are sold and some are not sold, the accounting is necessary only tor spares sold i.e. treat the sale of assets.
(\ 2)
If some spares are transferred by the g~nerating s ation to another generating station requiring them, no accounting is nece-
the repaird unit is installed back in its place and the spare unit installed earlier (Step No. 3 above) is removed and brought back to stores. (6)
ssary in such case. Takeover
of Licensee
285. In respect of the a;sets taken over from licensee, the amount of compensation payable for an asset shall be treated as and accounted for as
mined by the Board.
When the removed unit is considered irrepairable, it will be considerEd to be a retired asset (if the estimated life is over) or scrapped asset (it estimated life is not over) and accordingly the subsequent accounting for retirement, scrapping and sale shall be done'
(7)
Simultaneously with retirment/scrapping of the original unit. the cost and accumulated depreciation on the spare unit shall be transferred to Fixed Assets account.
. (8)
If one new spare unit is purchased (so as to keep total stock at its position) it will be capitalised and the,eal1er the et ove
the cost of the asset. 2.86 Even where the takeover itself or the compensation determined by the Board for takeover has been disputed by the licensee, the assets shall be provisionally valued at the compensation deter-
when it is actually usad again in place of some other unit removed for repairs or maintenance or
accounting shall be necessary. (11)
back into
usable conditon or
85 pr or odu-e sha!l aga'n be Io.Iowed
In resp-
ect of it. ·9,
Thus e ssent iat!v. the capita! asset addit io ns shall be ,ec-jgn:sfd vvhe n a nevv unit is purchased and a de 'uc:ion is recognised when any unit is ret':ed/scrapped. All tr an If ers within the entire stock of insta!led units plus 'pare units wc u'rl not inv alus any accountu.q
Formation of a New Board '2 89 On formation
of
Elr ctr 'city exi~,;tirg BOord may get .nsrerr ed to the new Board. The fixed assets of the exc ist ir q Beard mav also get tran5~epr"d at Book Value (cost less accumu'atect Ck!1'9Ciation) 10 t+e new bcv d in (iJ! cases (If ti.;;nSfe,s. .. ~hf" ne'Vv heard sh ;1 nct account for the PO::l:d, the>geo;raph:cal
'f
book v;1Iu~ at th·::! net
a
now
Slate
t errucr ies
cost
but
of
~hJlf
an
inc:")rporate
g.oss cost as well as c,ccumuiaHd depreciation in its books of ilcc('unt. Depru:ia:iun eoo such aSfets sholJ!d also continue to be ChiHQ8d (n the gross cost in the ~ame mfloner as lhe 8oa!o h'ddwg that asset hitherto would have charg""d.
Finance related
Costs
2 QO The i.lcG0un:ing poli,;'es '01 lrei:ltment of C)SI<; related to funds utilised for qlP. rvrpose of construction/acquisition of assets are prescribed in the following par2graphs. C()S~S
relating
to Borrowing
ded Discount/Commission i R,demptiotl on Bnnds/Dobenttlr~" (ltc.
Prmn!lJn1
2.::l2 Discounts 0:1 issue of bonds/debentures shall be charged to j"venue in Ihs year in which bonds/deben!ures are issued. premium pavab!e on redemption of bonds/debentures shall be charged to revenue in the year in which ire ~'femit1irn tecomes payable,
Capitalisation
of Interest on Funds Stage
he
-rer
e
s
ear«
br-rrow
s
wn
lch
7.9~ The emount of interest so computed and cap !alise~J sh III be reduc d i:0111 the amount of in tere st for the yea- and on'v the balance arrount shall be chalge~b'e to the Rr venue Account for th e year. :: 96 No part of jn!e! est s})r1H he capit2iised in respect of assets v....h.ch involve no lime peric d or ir.vo le insignifican' time periods for bringing the the asset into ',3cb'e condition Examples of suc h cases are: purchase of new vehicie:;. purchase of furr- i1ure items. purchClse of office equipments 2.97 The amount of interest capitailsed shall be included in the cost of the assets which involve !'ignificant time periods at construction stage and the same Shlll. alonl-with the basic cost of assets be depreciated in normal course, over the expscted useful life of the assets. II. FUEL AND MATERIALS
ACCOUNTING
Fuel Accounting
2,9\ Guaran'ee charg-'s, commitrn( of cho·ges. legal char£:e<;istarrp duty for !o(1n aqreemen1s/ bond.,/dcbentures, advertisem3Pt cos'S in a public issue 01 bonds. commi~siof1 on j"sue of bonds/debentures and such Olher costs snail be chnrged to revent)'] in the year in .\hieh :he (osts il'e inclu-
Construction
2 ()4 Everv ve.ir. a po-rion of the interest cavabe t i t t 9 rnq relate to flr~ancjr.g of capit al assets a: c »-strucrion stage i e_ <,il the po i.it of corr rnis s.oninq of assets shall be computed in th . manner pre c-tbed in parag'aph , 42 of Ann xue V and. if - o directr d bv Cc ntr a l Government. be capitalised.
on
utlised
at
2.93 No capitalisation'of an imputed in'erest cost (notional interest) on the Bo,;rd's 0\1'. n lur'ds and interest free fin'1nce shall be permitted.
298 The acc0unting f)olicies for Fuel Accountirg are laid dolt. n in the followirg parc;graphs Basis of Valuation of R;dceipts of Fuel ;eipts shall bi; based on 2.99 Valuation of fuel the actual queniity and amojity cf fuel received ?os determined in asc1.lmount "'lith Annexure Vand shall cover two eler;s and st eust viz. fuel cost and freight fur fuel re,iice Rase" net baianci 2100 Frei9klance. the an;31 shall be booked at a standard fr~be charged to rJxod fOI each quar;er for f'.xh powSss on Exchange F basis of colliery-\N!se expect£c' ' :oal Allot ment Programme. din or loss arrising or (een actual amount Trea,'unt at which the item 5 relating to Fuel .all also be treated in the: . , io rfcelpts
(' 2.124 iN ..ere al,y revalua)t
an
d
t,
stoc"s
cost and fuel cost iUpef' vis· a-vis t:'e currenc\alud of fuel received, is to be disch3;gEd is rnore~ C,1sts when incurred
86 (whether
paid Or not) shall be charged
through the relevant
account
to revenue provided for these
Note:-(1)
Net receipts would mean receipts after deducting the transit loss of fuel. Transit loss shall be valued at the average receipt rate for the month.
costs. Accounting
for Inferior
Grade of Coal
(2) Quantity and value of all fuel receipts 2.102 I n respect of the wagons aIlotted to and racs iv ed by a Goard, in the event of receipt of a grade of Coal inferior to the grade billed, the excess if any, of the amount billed over the amount payable for the inferior grade of Coal actuallv received, shall be treated as a loss on inferior grade of coal. if the same is not recoverable from the collieries. Such treatment shall be given, as far as possible, in the year of such receipts. Accounting
for Superior
Grade of Coal
2.103 in respect of the wagons
allotted to and received by a Board. in the evant of receipt of a Q(ade of Coal superior to the grade billed, the excess, If any, of the amount pavable for the superror grade of Coal actually received over the amount billed shall be treated as a gain On superior grade of Coal. Such treatmenr shall, as for as possible. be given in the year of such receipts. Accounting for Losses or Gains on Settlement of Claims with Railways for N,issing Wagons
or credit taken f or the g3ins which are like.v to arise on settlement of the claims with Railways which remain usettled at the year-end. 2.1 ()5 Losses or gains on settlement of claims should be booked in the accounts on intima (ion of the decision by the Railways to the Board of the claims which are seitled by them. of Fuel
Treatment Verification
Consumed and fuel
Stock 2.106 The rate adopted for valuation of fuel consumed shall be a weight€:r average rate computed in the following manner:
of Excess/Shortage of Fuel Stocks
plus
(beginning of the month ---
on physical verifibe treated as a cost of fuel consumed and the value of excess, as a reduction in cost of fuel consumed. MATERIALS
Accounting
ACCOUf-JTING for Materials Transactions
2.109 Accounting for all materials transactions shall be in the same period in which the physical event of receipts. issues etc. take place. Similarly, liability for all materials received and accepted by the Soard shall be created in the month in which the materials are accepted. for Incidental
plus
Expenses
2.110 Incidental expenses incurred shall not be linked to the actual materials receipts/issues and therefore shall Lot be treated as Materials Cost. These expenses shall be treated as a period cost and shall be charged to the Revenue Account of the period in which these expenses are incurred. Recognition
of Consumption
2.11 Accounting for consumption shall closely follow the physical transactions. Issues of materials in respect of specific works shall be forthwith treated as consumption. Where there are lump-sum withdrawal of materials, consumption shall be recognised only when the exact end-use is established. AND INVESTMENTS
Value of 'Net receipts' during the month )
-------------------------(Quantity of stock at
Physical
2.108 The value of shortage,
HI. BORROWINGS Value of stock at the
on
arion of fuel stocks at the year-end. will
Accounting
2.104 No provision shall be made for the losses
Basis of Vaiuation
during the moth shall, regardless of their grades. be aggregated for this purpose.
Quantity of 'Net
)
the (beginning of the month Receipts' during,.the ) month
)
2.107 The fuel stocks at the end of a month shall also be valued at the above mentioned wOighted average rate.
Interest
on Borrowings
2.112 Provision shall be made every year for the interest accrued on all borrowings including State Government loans whether such interest is due or' not and whether it is actually paid or not In the event of interest payment to State Government not being effec ed in pursuance of Section 67 A of the Act' the same may be considered as deferred liability. The. deferred liability in such cases only mea ns defer-
87 of
Treatment ment
of payments
and not deferment
of the
charge
to Revenue Account. 2 113 Total interest cost for
the year including interest on State Government loans shall, subject to capitalisation of a portion of interest as per paragraph 2 114 be charged to Revenue Account for the year. 2.114 A portion of the interest on borrowings which relates to financing of capital work-in-progress upto the stage of commissioning shall. if so directed by Central Government, be capitalised in accordance with paragraphs 2 93 to 2.97.
2.115 Guar:>.nleecharges,
c orurnitment cha,ges and legal charges/stamp duty for loan agreements, debentUie trust deeds, b')nds or debentures shall be chxr jed to revenue in the year in which tile costs are incurred. Provision shall be made at ih9 yearend for the above costs for the year, which have but are not purd.
Discount and Redemption
to
Invest-
ments 2.121 Gain on sale of investments shall be credited to the net Revenue and Appropriation Account. Similarly if any Redemption premium is received on maturity of securities, the same shall also be credited to Net Revenue and App.ropriation Account. Loss on sale of investments shall be debited to Net Revenue and Appropriation Account, In case of investm'ents against a Fund, the credit for the qain or debit for the loss shall not be given to the Revenue Account but to the respective Fund Account itself. AREAS
Foreign Currency Transactions
2.122 When a foreign currency transaction is being first recorded in a Board's books of accounts, the assets, liabil ities- income or expenses arising from the foreign currency transction shall be translated at the official exchange rate in force on the transaction date.
Premium
on Bonds
etc. 2116 Discount on issue of bonds, debentures or other securi:ies offered by a Board shall be charged to Revenue in the year in which the bonds/debentures are issued.
2.1' I Premium, if any p3yabL~ on redemption of bond" debentures or other securities shall also be ch
2.'
19 Provision shall be made for the income from investments (whether to be credited to Revenue Account or a Fund) which has accrued but not received by the Board. Investments
relating
IV. OTHER A.CCOUNTING
Cost Relating Borrowings
accrued
Loss/Gain
to be Recorded
'at Cost'
2,120 Investments shall be recorded in the books of accounts at actual cost of acq jisirion inc'uding transfer charges, stamp duty etc. No adjustment shall be made for the excess or shortfal! ot, the cost over the iac::: value of the inlJeSiments.
1.123 Ail amounts owed to the Board or owed by tho Board in foreign currency outstanding at the balance sheet date (including liability in relation tr acquisition of fixed assets) shall be translated dthe official exchange rate in force as on the ba' sheet date. If the amount derived on such lation is cifferent from the .arnount at which ceivab!e or liability is appearing in the I) depreciaccount, the difference shrll be recordere followbooks as under .: (1) Increase in the amount of receivable oron on ease in 'the amount of the liability shall 'irg treated as a gain and be credited to Exchange Variance Reserve. (2) Decrease in the amount of receivable or increase in the amount of liability shall be treated as a loss and shall be debited to Exchange Variance Reserve lf as a result of such debit. the net balance in reserve account is a debit balance, the amount of debit balance shall be charged to revenue for the year as "Loss on Exchange Rate Variation". Gain or loss arrising on account of difference be-tween actual amount received/paid and the amount at which the item is appearing in books shall also be treated in the same manner as above.
2.' 24 'iNnere any revaluation of devaluation of rupee vis a-vis the currency in which the .Iiability is to be dischC:;9(;d is more than 10';;, at one time.
~h;; S,;;:-:? snaIl
not be treated
In
It)
\',,:;1 In almont c I
ar co dance
th!'! above me;lIio:'ed policy relating i'uch silva Ion shalf be as Io llow s:
10
the increase or decrec se i'l Il;e amount of foreign currency liability shall be accounted for as an increase or deer ase in the cost of the asset~ financed by the liablity.
(2) ths d&precirllion for th s past yea:s shall also be rewo:k'd for the assets whore the condilions laid do"om in plrcoraph 2.65 for retrospective reworkirg of depreciation arefulfi'l€d.
tns-o; due to Fire.
Flood.
Cyclone
by 111 -~ insurance
clalfll
urer \t/1ere f.1Sse-ts are ';.,je insurer; (:~.! l)'~!the anl:1unt
Board fo:lows
c -r t a in i tams
Tr ea t men t of
etc.
2
Thp
12:)
t ain it"ms
accouat.op
fecoVf:tabi""
'/vitI!
in:;-
an out
if anv. r~cr:j\/cd frnm Guvern!}[c . sp&cificJily for rneei..f)g th9 los~
~h~ case referr&d to in sub ~)oint (2) above. 2 .1 :;es-samount Set aside. if any. in reso?ct of or cre . "!5 may be wfltten hack 10 Revenue Account. on setH remain l' tax.
(1)
policy on trCii:nwnt
of ce;
ment
is laid down
to each such it--m :
duty rCfJ"!f> the Go ve rna cost nor an income to the B03rd
Electricity
Electricity
Duty:
is ne:lIler Th('
Elect'icity
point
{hty
from
differ
assessment
10
to
l\ny p.xc",ss (l r sh·, rl- f a [I of I he
r
rf)"
;::;"'1'
r
for
R~venue
2 128 ReveniJ'! frorn sale of pOwer shaH be acco. unted for on an accrual basi~. The accounting fOI iev~nue shall thus be totally del inked horn the liming and the extent of actual collection of revenue from Consumers Where the sale of energy prior to the end of a year has not geen billed. a provision f!..f such ul'bi'led revenue sh~1I be made at the year-
of time the
the
State;
or
0;1
collection
in
c rthe r case.
t rulv
but no: ('oilpcterj
d:;"t0'~j;lt of
duty c)f!eCled
Vi~t rcmi!tt'ci
to !;,e
Minimulll
(2)
to
pay
ar ise s would
it nny' ar rse eith e r
to
fi~,bjfi1y
ACCOU;ll
liab ilitv
Government
State
.l,,-s"s,~d
=
Oil
!n order to reflect tho nmount
the
of
duty
from consumer s anri t hr: (lorn
con~~UTlers
Government
but
not
shall
be sho':vil
h910w
a speGlflc
ChargQS GonslImption
during a billmg period 01 during a year shall. for tht;; SaKe of \·.iorking C0!1V9ni~f!CO. be Irf'a'\)d futl\.' as rO':"iltl!l ff"!11 sale of Om1;fl1Urr: GGIlSurnptlon
po.... v·n a!tho~Igh str.ct:y
oniy
a p:Jft
th~:;-r90f rnl~tn:~
to ~a;e of pO'lver.
ction ill
of Minirnum charge levied nn
freatlllQnt
(3i
"pnHcan ~hall be l"71ad" !"very ',''lar. for thl' shoulV"lb:e by tho BOArd nn II" income or profits thf';,;ordance with provisions of the relwant tax oClW Slich a provi'5ion ,hi;lll be treated ;15 a ch.H(!" i'Qninsl th~ rever'ue before arriving.1t the BO
.: 1 2 !
from
rrd hom consume rs s nd forwarded
of re~e(\./p. c!'9<1tt?-d vvhf!Jre fh~ so};r insuranCE: Dr ;Giil~e and
OV subsid'l. ;;l':';l[
recoverable
from consumers
below vv;,il reference
,,!1C'02thu
·~r(:n~ed by th~ i~lSUrc;'d
the
consumers
k'Ji~'·d in <:';,00: (3)
a~ rcvenu e in
It sbo ud th(!s be kept out of the Revenue
2.125 All losses on account of flood. cyclone. fife etc .. shall be treated as the foss for the year in which the loss was incurred. Such a charg,> a qa i: ~t revenue shall be reduci;d (1)
end ~0 as :o fje;y~ th : e rn cunt vei;: o f s.upp
t!':
whQ h<'.l'le delayed taking
tim ~s billed
d l11:ni'11 )ill
p'-N'f.H has been
of
conne· aro thvU,Ih no
'sho delay th~;I( Tf)!;! RenQrt
; Appfican!s
sllppl!'ld
Glia:CI~ to
eVI.)n
them
Such
meom:
j
shall oe I((!,lted as "1\,.1;sct'!laneous Char~i"~o fr<)pl ConSUll1tHs··. The amount receivable Oil til i" ace1· un! shall also be ilccounh!d for in an account sep ,rate from' Sundry Debtors for S"Ie of Power'. (4)
Trp.at.ment
~Iy Payq'ont
of
: Cl"h
n1er~ i)S ;)n inCl}rHivfl
da!"! should. and .hown /.',ccount.
Discount
all(lwed
fQr Til"
for t:mely paynnnt
by the
ai!owed. bp. treated :oepJrateiy as such in the 'Nnen
(5) Treatment
of Delayed
p
(6) Income
snould
from
Paymant
consumers
<'IS 3
(j,,'1
- I
cost
RevenU';
Charg{}s:
delayed reven:Je from sale of pov·/er but shown separately sinCi~ these are more in the nature of a financial charge. CilcHg-7S
rocovered
j
ailQ'NRri 10 {~0!12f!
d,scount;;
not be clubbed
for
with the
Accounting for bills of Thefts of Energy ari'~ing from the bilis raised for Theft of
--
89 Eaerqv. whether OIl a consumer. or an outsider. shall be treated as inc~me and reported under a separa te account head provided for such revenue'
3. The. revenue or expef)se resulting from any transaction relating to prior periods shall be segregated as 'Prior Period Income or Expense.'
Cheque Received and in Hand to
4. Policies, like basis of valuation of materials purchased, would apply only to prospective transactions. But the prescribed basis of valuation of issues may be applied for the sake of sirnplicitv and uniformity even to the issues out of the stock on hand as on the effective date; if the stock is valued on a basis nat much different from the prescribed basis. Thesmall differences arising in such cases shall be dealt with appropriately with a disclosure in the annual accounts for the year of changeover to the new form of accounts and the year in which the adjustments are made.
be
Regarded
as Cash
2.130 Cheques and bank drafts received will
be treated as cash until they are deposited in bank, and will be included as cash on hand in the accounts. Banking or such cheques and drafts will, there fore, be considered as deposit of casn in the Bank Account. Subsidies
2.131 Subsidies which are receivable to assist a Board to meet. partly or fully, shortfall of revenue as compared to cost of operations of a specific type or of a specific activity carried out or being carried out by the Board on its own or under the directive of the body from whom the subsidy is receivable shall be credited to Revenue Account. 2.132 The subsidies, the receipt whereof is dependent upon the Board satisfying certain conditions shall not be taken credit for to Revenue Account until the Board satisfies all such c indltions. 2.133 Where a claim for subsidy of revenue nature is made but no intimation of granting of the claim has so far been received the outstanding amount for the current year and for the past years should be shown as a deduction in the Reserve Schedule.
ANNEXURE
IV-PROCEDURES ON CHANGEOVER TO THE NEW FORM OF ACCOUNTS
1. I mplementation of the New Form of Accounts shall. inter alia. involve the fo!lowing : (1) Adoption of the prescribed basic ing principles and policies. (2) Adoption unts and
of the prescribed Chart of Acco-
~3) Compilation of the Annual Accounts in the prescribed formats. Adoption . Principles
account-
of the prescribed and Policies
basic
Statement
of
accounting
2. The prescribed basic accounting principles and policies shall be applied only prospectively. that is to say. only to the transactions which take place after the effective date.
Retrospective
adjustments
for
interest
and
depreciation. 5. In respect of interest and depreciation, hO'Never, a retrospective adjustment shall be done. Under Sections 67 and 68 of the Act. prior to the; f amendment by the Electricity (Supply) Amendment Act, 1983, depreciation charge was restricted to the amount of surplus available after appropriations under Section 67. Similarly, interest on State Government loans had lower priority as compared to the .creation of Sinking Fund for repayment of loans.
6. As a consequence of these provisions, me Boards have Created Sinking Funds for repayment of loans although huge arrears of interest and depreciation remain to be charged to revenue. 7. Every Board shall re-open its accounts for tn e year ending on a date immediately preceding the effective date. The following adjustments shall be made to these accounts. (l) Full amount of the reserve or the sinking bod for repayment of loans standing in an account, by whatever name called, shall be credited to a 'Restructuring Account'. (2) All arrears of depreciation and arrears of interest shall be debited to the Restructuring Account. 3. The net balance in the Restructuring Account, whether debit or credit. shalf be transferred to the Net Revenue and Appropriation Account for the year in which the prescribed accounting policies become effective. (4) Reopening of the said accounts shall be after prior approval of the BO.Hd.
(5)
lh~ 'Rs5tI11C;~urii1g AC::'0adjustments made to the pre. ViCU'~ YEar's ;_;~:CJU;)!S sha't also be included in the Ehard's annual accounts f"r the f'T;:.t veil r r nd inq after the effective dille. A 1":0 (l co lt~,nlnrJ
b s t ws s n he accountin
urn showl:q
natur e of operations
Adoption
of the prescribed
chart of Accounts
3 Til:: nesc ribed Chart of Accounts adoptr-d as under :
Shi"/I
be
(1 i All revenue. expenses, pains ar d IQSSPS which lake pl'lce niter the effective dat~ shall be accounted f .ir under the prescribed account
he~rls
Bai";lC~5 ';1 the fJalilnce She et
(a)
(L)
of a balance (01 p rl (.f possible o\\'ing to flonaval~abif;ty cf informaiion in respect of the OUiS!iil1t!,r:\,! bi1[ance (or as II;.:: case nlilV th'. lha: P in of ri1"! baliHll.>:::) bo:ance!
,'0CI)
fS
flat
BCii d :shill! ;nt!vouce neC£ssary account
IJedds and transfer thereto each of such balance,; or the parts of the balances '.vhich eouid not be so restated; and (ii) tr"ns!1c!Ir:ns ;:fier the fff·c!jvl;1 date. 'Nilich clf:ar. in fuil or:n pilrt. the earlier balance;:; shall be accounted for ur~der 1he aCC!)IJnts so (c)
(d\
intrcduced
b:.' thn Goard
1\!1 Ira' sactio;,<;. other lh~'n those I€ferr~d to In clause b (il) above. occuring after the cff:::ctive dart'. shall be ilccountcd for under the reiev:wt account hHiJdj under the presc. ribed Chart of ACcounts. After a pellod e[ tiH"e years (10m the rff~clive ddtE. tile P?SI balances remaininq lInd. r:ared in the accOunts introduced by ih0 [3oald as afores(lid shall be dealt with depending on the naiUre of the accourH head concerned and th~ materiality of the amounts involved.
(3) Bal<,nC8S, If any. in Inter - unit accounts, as on the effective da1e. shall be reconciled, as possible. The unreconciled POrt ions of such balances shall be dealt with after taking ioto considerati0n factors such as the types of Inter-unit transactions normally taking place
en t of
A.cc-
b1!;]i1Cf.'Srcs tatcd (i .e. til" amount restaccount hond f rorn which and the nsw account head under whicn t he bal2ncp. Ins been rest ate d] : and put
ated and IhB earlier
(2)
balanoes
tr ansferr e d (which could
not
OP. 51')
resta:ed) Ii) fh~ accounts intf)du:',~d by Ao;;r-l as aforesaid.
funds.
'Ali'f're :,ueh rC3\tltlng i:i
(;i
I(S8rVI}
involvs d. th.:;
~ Thp. Annual Sta rernent of Accounts for the ar.cnuTlting year ending Hnm8diately' after the c If actrvs date. as adopted by the Board. sha ll also include iI note co ntaininq piJrti-:u!ars of ;---
the
cxt ent possible. under the account heads prescribed for assets. habdi!i:s. reserves
Compilation of the Annual State, ounts in the Revised Forrnat s
accounts an<'!iys<'!d to
units
tions and rn ainrenanca ) perf ir rned at the concem ed account inq unit and the mate riahtv of the am ...unts i.ivofved ,
(T)
as on th
j
(co nstruct io l or opera-
$;.1ch ba!"nr:w; uped
shari.
as 10 broad
f(em~nts ronTat<;
under
a<:;f.11
y conform the
so
to the di;;cloc;ure
revised
annual
ths
gro· requ-
accounts
10. For each of the first y!'!8rs ending immediafely after the effective dafe, Inn Board shalf also includ" in its annual accoun's a no:e contain;l1g I=,arfj(u'ars of: (1)
the arno'mt of past ba'ances !ransferrcd 10 each of tnfJ account" in'roduced bV the Board in accordimce with sub-parRgraph L (b) (i) of paranraph 8 abov.:,
(2) fhl) amount oi lhe aggregate of the amounts of past belance cleared by transactions durin'J
the year.
during
one or
more
Df',vious yr-ar:;
en:Jed
af'er ,he effeclive dale in ; ccorcl<1r ce cvi,h sub-paragraph a!1ove
2 (b) (ii)
01
Pi! ag-aph 8
(3) the pas! balance rmaining unc:eare.J
at Ihe end of the third year after the effective dattl and the manner in which th€:y have bei!n dealt with in the fourth years as discussed in slJb-parag'aph (2) (d) of paraqr?ph 8
a:)ove and (4) the unrecounciled balances in the inter· unit &ccoun'S and the manner in which they have been de1t1t with as discus'Ocd in subparagraph
(3) of paragraph
8 above.
•
1 i
:!;p.
r.er srb
no t ss required
add..iona:
pu rao raph (5)
par,n r apb s 9
ar d 10
pH,g
of
above
cha!-g~-over to th,-o presc'ibed nt s. shalf f'om parr of the
g:ven
leo, be
'aph
7 as also
,15
,3";
per
during the per iod c f r,evv form 0' oCCOUAn -u al St aeme n t of
g'dnt
SH1'1
sarne :nar,n~r
(2)
Accounts
0 be
accol);,led
dm a ied
iN
in
tl.a
iJs::;e'S.
Ex c h a- ge of AssetS: -- w+er: an "sse'; is eXCh1nged for ano-h=r as sc the ass.s t surreMb-pd sh 111b= dee ned;o h~ve b ien dis, I" 5' d o t
12, in the annu al aCCOlIniS for tho, first rhr ce ve a-s end:ng sf t er the e7fecti"e dille, the unci 'a~ed port io ns of th- P" t b alanc>s (which could not be re,ta!ed\ oU's'M.ding in the aCC1un!S introduced by thE Briard. sh'ill be dis cio sed sep ar ae'v ill ,he app"o)ri,;te Schedule to the B3'a;1[9 Sh~ei
al . s
(Gain
or
loss based on the fair rnek-t vatu» shall
t Its
fa r marker
va lu e
be
for n ,['e normal course The cost o: the asse: ac.ruir d in axcharqe shall be d: emed to be the fair market value of rh e asset ,-.l!'rerderred p'us any ar'dit ional c in s i d rallOr gl'1eo or minus any additi()nal consiaccouilted
d ",a i In received,
Ai\iNEXURE PROCEDURAL MA.iT[::\S ACCOUNTING The
P ocedu1al
V RELArlf\G
mat:e's
rela;i'~
2
Fuel a.ld Matecials
3
SorroNing5
4
Other Accounting
Wi}
cIJSSI-
.:l.cco lnti '9
and lnve-,tments.
Exp5nditure
Areas, &
'Liahili:v
Fix.ed ASS~!t5
0
f Capi t Ji Asse ts - Dcpar ture
fr::>m 'Ac
1'H:\!
Cnst' basis 1.2 Reference
is
invited to it IS slaled
parafJ'ap'1
24
(;f
the co",t cf a c8;:;i!id asset sh::!!i ir'C'UL~8 ail 'actu21 costs· hc:urred to prepare lha aSS'efiS for t,se Ho .... "ever
III \ivhe'ein
from 'Actua!
C -Sl- baSIs
th-lt
of (lccountir,g
: iuli bn. made in :he tcllowing
cses
p;>yab!e
chaJi
be
capitai
ted
Cn r:!lurnif'g
pr' vi1icn
Assets'-
:
the assets
shc:ii be ~et Gtf
of CQst of th
as:)f~lS
( ) Assets Received as Oona tion/Grnn t An ,£\'5S.-:t received as do ,aLon shall be accou-t\3d for at its fair m3:ket Viilue. The fail marke~ va'ue sha'l be drbiled as the co:.;, of the as~at anj credited to 'Oof'Siel Capital As:.et', i\ccount'. ",-,hich 511311be inc'udt d under a Reserve and be treated jl the same manner as Contributions, Grants a~d Subsidies towards cost of capital asseiS. Donated assels which a.e subject to certain conditions shall revenhe'ess be! rea ted as fixed assets but be disclosEd by way cf a foot note indicating vJiue of such a~sels I\ssets received
ror leasehold
The fair
inar-
ket va!u;~ of thO! leas2hold assets sh' II be deflreci3ted over th'" lease period. Smultvneously extinguishment of a proport;o :ate amount of Ii' bili y set up in ,he books ,hail also be 3fiected By the e,ld of the lease period lhe !i"bilil'( in acco__;nts would have b6e:: fully (,!xiing~lished and a P"ov'slon for d8prec:ation equal to the amount of fair market value booked ac cos, wo J;d hiwe been crea-
1 1 The pr0c~durai matter:; regardmgs exper dJHHe on canst!, Gl!00, acquisition ar d maintenance of capital assets are !'lid d ),Vn in this Section Cos t
pnmiurn
asse:s, Depi~-ci.:;';o'l shall be char9'd on such cost in rh: rf,ann'f p(e~cribed for Depreciation on Le' eh·;ld as
Expe'1dit'J f0 and Fixed Assets.
Capital
Assets:-l8ase
!r 8-".1 as the c:)st of leasehold
accoun1ing
to
Leasehold
on ?cquiri' 9 l~'ase rig'1ts for assets
TRANSACTIONS
t:a-,~a-l!Ons of Sic1td E:ec"ic:ty 80d ds ed un j;>r the fol'owin ! ::ections :
1, (apital
(3
TO
ass~t
iigai
so as iO
!)
lessor,
tl.e
sl ;he 2mount c:0se
In ~
t
,-y,]
aCG' en s
Employee Cnsts Charg8
For
thd
pwp'se
of
dEnermining
empioyee
costS cha;~eab'e to capi'al WOlks. the follow!ng classifica:ioil of en'plOyee costs shal! be adoptEd; (1) Employe:; costs recordEd at construction div:s!ons/c:;n:ruction circle/construction siores divisi' n/cOMtruction workshops etc, vvhere no activities relatirg '0 0 & Mare ca'rird out
s:
all inciude
(b)
staff deployed lacation throughout the year cost ot permanent
(c) cost of permanent staff deployed for part of the year. In such cases it may happen for example that an employee's two months' salaries etc. are booked here when he was deployed here but the annual payments like bonus and LTA or earned leave oncasnrnent. (part of which is relating to these two months) is paid and rocorded at some other toeaIon where he is deployed at the time of such payments. In case of some other employee full year's annual payment like bonus may be paid and re orded at construction unit although he has worked there only for say 4 months, No adjustment need be made for such minor inaccur a-
cies. (l)
/\.t accounting
units which have both 0 & M and construction work, ernp loye e costs shall include: (a) Cost
of
temporary retain=d specifically capital jobs.
labour/supervisors for one or rnor e
(b) Additional emp'ovrnents (such as project allowance) given to 0 & M staff a t a location for a'so doing the wc rk related to capital projects. (e)
Cost of permanent staff rnornba.s deployed exc lu si valv or largely on construction jobs, For example, Project Section. Design Section etc. at Head Office, Project Accounting Staff at a division, construction engineers at a power station where 2 units are in operation and 3rd unit is being setup, capital stores staff if such a separate stores is set up and so on.
(d) Staff which works on both capital as well as 0 & M jobs without any additional emoluments to them. Method of Allocation of Staff Cost and Expenses over Variou Assets 1.4 Staff cost, materials related expenses and other expenses which are charqeable to capital works shall be : (1) indentified
(2) failing which. indentified to a specific group of capital jobs wherever possible (and within the group allocated on an ad-valorem basis).
at the
to specific capital job wherever possible.
(3) failing which, identified to a project wherever possible (and allocated on advalorem basis over various jobs within the project). (4) failing which, allocated on an ad-valorem basis over various projects and various jobs within each project. identification to one or more jobs should be done only if possible to identify without any allocation. In all other cases, ad-valorem allocotion shall be adopted. ~.5 By ad valorem basis is meant allocation of capitalisable expenses as a per cent of the capital excenci ure incurred during the period on that job/pro;ect (and not as a per cent of total capita! expenditure cn that job/project ircluding the expenditur e incurred in previous periods of auocarion). 1.6 For the purpose of allocation the term capital expenditure would include progress payments on supply - cum - contracted work order which are [0 be recorded in {J s eparat e = ccount. 1.7 No part d the staff C0Stsor other expenses chargeoble to capital works shall be allocated over the capita l exp~f'diture on furniture. office equipments and vehicles or en capital expenditure for
., "-
take - over of licensee,
....
1.8 The work of capitalisation of assets comrnissio ned during the period cannot be expected to be kept pending merely for determination of total capitalisable expenses incurred during the pariod. Methods of allocation us inq fair estimates of such capitalisable expenses may be adopted where
"' ~ ~
necessarv. Cost of Development
""" on leasehold Assets
~
'.9
The cost of development on leasehold assets shall be accounted for under a separate account' and not added to the cost of leasehold assets.
~ ~
land as a Future Plant Site
-"{
~~
1.10 Land may be purchased
or acquired as a future plant site for projects which are yet to be taken up (e.g. land purchased for a project which is sanctioned in principle but detailed survey and investigation is continuing). Cost of such land shall be debited to capital work - in - progress account
..-:~
~ "'l
~ '1
!lfJ/?
93 (Project code 99-Not
identifiable
to any specific
project code). Purchase of a Building
along with
land
1.11 When a building is purchased along with the land. the purchase cost shall be allocated between the land and building based upon a technical and commercial appraisal. It a part of the purchase consideration towards land is for lease rights to the land, that part should be appropriately classified as leasehold land. Assets Awaiting
Conveyance in favour
of
the
Board 1.12 In the case of purchased assets. wherein formal conveyance is delayed and the Board has in the meantime put the asset to use. the cost of the asset shall be shown as fixed assets. The fact of pending conveyance of the asset may be disclosed by way of a note to the accounts. Contributions,
grants
cost of Capital
Assets
and subsidies
towards
-:.13 Accounting procedures re!ating to contribut.ons. gfants and subsidies towards cost of capital assets are laid down in the following para-
Certain
Amounts
may not be Grants/Subsidy
1.16 Certain amounts receivable by the Board may be computed with reference to the cost of capital assets or progress on a capital project but in fact are actually in the nature of interest free loans. Such amounts shall not be treared as grants or subsidy towards cost of capital assets. Treatment of Small and LoW Value Items (each costing Rs. 500 or less) for non - accounting purposes 1.17 For the purpose of project cost estimation. for reporting of total project cost, or for deciding competent authority for project approval and execution. the cost of all such small and low value items shall be included in the amount of cost of the project and be treated in the same manner as large value assets which are to be capitalised. Similarly the controls regarding records, custody, numbering and verification of such assets shall remain the same as is presently exercise over those asset. commissioning
of Power Station.
1.18 The various aspects connected with commissioning of Power Station and therefore related to the accounting policy for capitalisation of power Station assets are set out hereinbelow:
grJphs. Consumer Contribu
tion
1.14 Reference is invited to Paragraph 2.34 of Annexure III wherein it is stated i hat amount receivable as consumers contribution shall be credited to Con5:Jmers' Conlfibution account if. (1) the amount is not subject to any conditions ,0 be fulfilled by the Board or the conditions attached to .he arnount nave been fulfilled by the Board and. (2) no part of the amount is refundable nor is likely to become refundable by the Board.
'"
1.15 Any amount received by a Board as consumers' contribution or deposu shall be accounted through "Deposit for Deposit Works A/c" untii the above tNO conditions for treating the amount as Consumers' Contribution mentioned above have been met. at which time the amount will be transferred to Consumers' 'Contribution Account. Amount. if anybecoming refundable shall be debted to the 'Deposit for Deposit works A/c·.
(1) Activities like flushing of pipes. acid cleaning of boiler. acid cleaning of pipes, steam blowing of lines, moisture drying of genera:or etc. shall be deemed to be b efore commissioning (2) Testing of individual segments of the plant for example testing of protective system, testing of cooling water system etc. shall be deemed to be before commissioning. (3) On the collective testing of the entire plant (which is also known as rolling of the machine-when Turbine-Generator is put on trial stage' shall be deemed to have commenced. (4) The trial stage shall be deemed to have ended at the end of the month during which the new generating station achieves for the first time an 'Availability Factor' which is equal to or more than the 'Average Availability Factor of all other generating stations of the Board in the previous month".
94 For this
purpose, Availability
Factor shall
be
computed as follows: Total Running Hours during the month
-
-------------------
x 100
Total Clock Hours during the month (i e. No of days in the month X 24 Hours) Average Availability Factor of all other Generat mq Stations of the Board shall be worked out as follows: Aggregate of the total running hours of each of
the
Determination of Revenue during Triai Stage of Generating Station. 1.22 Rev2nue which is the full of three months stage (whichever under:
during the capltalisabte period period of trial stage or the perod from the cornmer cemenr of trial is shorter) shall be computed as
Units generatii'g during the capitalisable period XX Less: Auxiliary Consumption X Net Units sent out XX Less: T & D Losses computed at a 0, of T & D Loss in the BO:Hd during the previous year X
other generating stations
-- -----------------------
Units treated as sold
-----------------
Multiplied
Total clock
X 100 hours during
the month X Number of other Generatirg
Stations
(5) The end of the trial stage of a new 99nerating station shall be certified by the highest technical authority in the Board
Xx
by
Board's average realisation per unit during the previous year.
X
The resultant amount shall be deemed to be the Revenue during the capitalisabla period. Depreciation
(6) On the receipt of
such a certificate, all the assets at the new generating station which are put to use shall be capitalised. Cost of the assets shall be transferred to Fixed Assets Accounts. In this regard full cost of common facilities, assets end underutilised assets shall also be capitalised.
1.23 Procedural matters connected with the accounting policy on depreciation on fixed assets are set out in the following paragraphs. General Framework for charging Depreciation
1.24 The general framework for charging ciation is outlined below:
depre-
Commissioning of Transmission Lines & SubStations.
{1} The existing practice of charging on straight line method shall continue.
1.19 Commissioning of transmission lines and sub-stations also involve trial stage. However, unlike generating stations, no revenue is generated and the costs incurred are not very large during the trial stage. No trial stage shall therefore be recognised for defining commissioning of transmission lines and sub-stations.
(2) 90 per cent of the cost of a fixed asset shall be depreciated over the 'estimated useful life of the asset'.
1.20 A transmission line shall be deemed to have been commissioned at the end of the month during which it achieves an availability factor which is equal to or more than the "Average Availability Factor of all other Transmission Lines of the Board". 1.21 Sub-stations shall also be deemed to have been commissioned on achievement of the availability factor as in case of transmission lines. In both cases, commissioning shall be certified by the highest technical authority of the Board.
(3) "Estimated
useful life of the asset'
as prescribed by the Central Government. in consultation with the Central Electricity Authority. as prescribed by the State Government in respect of assets where the Central Government has not prescribed any period. (4) No depreciation shall be provided on an asset in the year in which it is first put to Use by the Board.
~.;
(5) Depreciation shall be charged on an asset even if during the year, it permanently ceases to be used by the Board, f
95 Periodic
Review
'Estimated
of Prescribed
useful
life'
, .25 Central Government shall periodically carry out an exercise to assess the need for any change in the 'estimated useful life of assets' prescribed by it. required in view of techno!ogical changes in the assets normally used by various Boards of the country. Based on the findings of the exercise. such changes shall be made to the schedule of prescribed period of esti rnate d useful life of assets as are considered necessary by the Central Government. All changes to the schedule of prescribed period at estimated useful life. shall be prospective and shall be applicable only for depreciation chargeable in subsequent years. Assets of Common
Retirement
Date
1 26 An ar ea where the concept of 'Assets of common Retirement Date' would become operative is subsequent additions at a geneiating plant. substations or transmission lines. resulting in assets which would be retired along with the assets installed earlier. although as such, the number of years of estimated useful life of the newly added assets would not expire by then. This concept is illustrated
below :-
Example: (1) Estirrated life of weter circulating system is say 25 years and generating plant also 25 ye3is.
(2) A totally new arrangement of water circulating system at a generating plant, felt necessary in say 11th year of the generaTing plant with balance life 15 years (i.e. 25 years less 10 years expired) (3) The water ciicu\atiJ"lg
system would have normally been depreciated over 25 years. However the expenditure on new water circulating system in this case would be required to be depreciated over the balance 15 years since it would not be of any use after the generating plant itself is retired in the 15th year from now.
Subsequent
Change in the Purpose of use of an
Asset 1.27 Any change in the purpose of use of an asset shall be recognised only prospectively for charging depreciation in the years subsequent to such change. For example, Building containing Diesel Generating Sets is to be depreciated over
say 30 years, the DG sets are scrapped earlier since they were obsolete in technology and the building is. after some notifications. used for sav office pu rp.rses (for which estimated life is say 50 years). The change in the es!imated useful life of the asset owing to a change in the purpose for which the asset is used, shall be recognised only for future depreciation. '\Near &- Tear during
Construction
State
1 28 !n a project
period of say 4 to 5 years, assets which were constructed in Scy first year but lying idle until completion of other assets, do suffer wear and tear during the following 3 to 4 ve avs. No depreciation shall bs charged towards such wear and tear of such idle assets at construction stage. Assets Transferred
to Other
Divisions
Circles
1.29 In respect of the assets transferred betw~en accounting units du ri ng the yea r the accou ntin« unit which held the assets at the beginning of the year, shall charge full year's depreciation on the transferred asset and no depreciation on the as sets shall be charged ior the year by the transferee locations (5). Retirement. of Assets
Scrapping.
Obsolescence
and sale
1.30 Procedural matters connected with the accounting policies relating to retirement. scrapping obsolescence and sale of assets are set out.in the following
paragraphs.
Sale of Assets for which
written
down
value
is not known. 1.31 Fixed Assets sold by the Board for which written down value is not known. shall be deemed to have been sold without any loss or grain. The written down value shall be deemed to be equal to
the sale proceed. Provision
for Loss on Obsolescence
1.32 Provision shall be made for loss, if any. expected to arise from the obsolescence. determined by the Board of any ot its capital assets whether in service or removed from service. Similar pi vision shall be made for loss from obsolescence of capital spares The provision shall be utilised to meet the loss arisirg on disposa'/scrapping of those assets. Assets taken over from
licensee
1.33 The accounting policy prescribed for assets taken over from licensee requires adoption of pro-
96 visional
valuation
in
case of
valuation
of the
taken
over
procedures over
should
assets
the
be adopted
Io l'owinq
disputes. assets
the
On
fInal
following
:-
procedures
should be
adopted :(1) Any increase or decrease from the provisional valuation shall be adjusted to the cost of the assets. (2) Small
and written off
low value assets shall
be
credit
will
be given to
miscellaneous
income
account.
1.37 The written down va lue ot assets not fau nd on physical verification and established after invesligation, as deficit shall be written off by transferring the cost and accumulated depreciation on such assets to the Revenue Account. Certain Df scotures Accounts
in Board's
required
1.38 Board's accounts shall disclose by way of a note-
(3) Depreciation on all the balance assets which are capitalised shall be reworked from the date on which the assets were vested in the Board. (4)
Difference between the provisional depreciation and the reworked depreciation shall be credited or debited (as the case may be) to the Revenue Account for the year in which final valuation of t sken over assets is done Such debit or credit shall be disclosed in the Revenue Account as Prior Period Gain or Charge.
1.34 The reworking of depreciation referred to in the above paragraph shall also incorporate changes If any made to the estimates of useful life of the assets which were adopted for charging provisional depreciation. This may be necessary when the State Government has finally fixed the estimated u sc Iu l life. If however the final estimate of useful life is made after the reworking of depreciation then the ch3rges in lile shall be recognised only for fUiure depreciation without any retrospective reworking.
Disputed Claims under Warranty
for f-hpairs
1.35 Supplies/Contractors of capital equipments may have provided warranty of repairs of assets. Boards c aims under such warranties may get disputed by suppl:ers Contractors. Repairs expenditure incurred by the Board for which reimbursement claimed but disputed shall be fully charged to Revenue Account for the year in which the costs are incurred. Reimbursement when granted by the supplier should be credited 10 Revenue Account in the year of receipt of reimbursed amount. Excess/Deficits
observed on
Physical
ver ifi-
cation. , .36 Any excess observed on phvsic rl verification of assets shall be brought into Board's books by valuing each excess item at one rupee each. The
(1) Book value of assets, if any, which are likely to require surrender of the assets by the Board TO the Suppliers I Lenders since the Board has falied to make certain payments is respect of purchase price of the asset or loans raised on the securuv c f such assets. (2) The Assets in respect of which an effective title is not vested in the Board. liability
for Capital
~lIpplies
I
Capital
Works
1.39 The accounting procedures relatirg to providing of liability in respect of Capital Supplies,' Capital workh ehall be as fololws :(1) Liability to Supplier / contractor s hall be created by the Board on accep vance by the Board of the goods supplied by supplier or works carried out by Contractor.
(2) Capital supplies in respect of wh ch, the property in the goods has passed to the Board although the Board has actually not received the goods shall be accounted for at the year end as capital suppl.e s in transit ahd correspondingly the l iab ililY towards the supplier shall be cr ea.ad in Board's books.
(3) At tha year end, the capital works completed by contractors in respect of which bills are not received by the Board or received but not passed shall be identified and certified by Board's engineers and provided for in accounts to create liability to contractors as ascertained on the basis of the contracts. This requirement shall not apply to contracts with total contract value of less then Rs. 25 lakhs.
97 (4) In respect of imported capital equipment kept in Bonded warehouse, no provision need be made for the customs duty wh ich will become payable on removal of the equ ipments from the bonded warehouse. Cash Discount
(b) Balance Net Assets (BNA).
(2) The ACS computed under 1 (a) above
1.40 Cash discounts
eerned by the Board on making timely or early payments to supyliers/contract o rs shall not be reduced from the cost of the assets but shall be credited to Revenue Accounts as an income for the year in which the cash discount is earned. Interest on Advances to Suppliers/Contractors 1 41 Interest receivable by the Board on advance to suppliers and contractors for captrat supply/ works shall not be deducted from the cost of the assets purchased or constructed but sha I be credited to Revenue Account as an income for the year in which the interest income accrues. Capi ta!isation of Interest during construction stage
(a) Assets at Construction Stage (ACS) (This would be estaoilshed with reference to Schedule 21 to the Balance Sheet)
on funds
utilised
shall be reduced by excess, if any of Liability for capital Supply/works over Capital Stores and Advances for Capital Supply/Works. I
(3) BNA shall be derived after the balance current liabilities are metted off aga inst the current assets. (4) Total Funds as per Balance Sheet will be first classified under: (a) Borrowing for Wotking Capital. (b) Payments due on Capital Liabiilties (c) Loans having an intial holiday.
period of interest-
(d) Other interest-free Iiabil ities
1.42 In c~mputing the interest on funds utilised during construction stage of capital assets, the following factors shall be taken into consideration. (1/ The full amount of interest payable for thp year would be considered for this pUrpose. (2) Arrears of interest shall not distort the comcutari0n of interest on funds utilised construction as rhest:;arreaiS are required to be debited to a Restructuring Account and then adjusted to surplus/losses. (3) In view of the difficulties in identifying a source to its use, no attempt shall be made for sou.ca use identification.
(4) The exercise of computation of capitalisable interest shall be carried out at head office of the Board. (5) This exercise shall be carried out dering rupees in thosuands only.
consi-
1.43 lntere st on funds utilised during construction stage of capital assets shall, for the purpose of capitali~ation of such interest be computed as outlined below; (1) The Net Assets shown in the Balance Sheet shall be split into ;
(e) Reserve Funds (f) Reservss and Surplus (g) Interest-bearing capital liabilities. (5) Matching of each of the above-mentioned different items of funds with the Assets for the purpose of deterrninir-q 'Interestbearing ACS' and 'Interest-bearing BNA' shall be carried out as under. : (a) Borrowings for Working capital and payments due on capital liabilities shall be deemed to be financing BNA and there fore deducted from BNA. (b) Capi1a! loans which provide an interestfree period for the first few years shall be fully appropriated against the ACS on the g~ounds that interest - holiday is specifically to provide interest-free finance at construction stage. (c) Interest - free capital liability, if shall be proportionately divided ACS and BNA.
any, over
(d) Reserve funds shall be set-off against the investments made against the funds. (e) Reserves, surplus and the excess of Reserve Fund over its investment as per 5
98 (d) above shall be added up:o 'own
Funds'.
'Own
proportionately (f)
Where
the
determine
Funds shall be div.ded
over ACS and BNA. Board
neqative
has
'Own
Funds' in its Balance Sheet because of accumul ated losses no adjustment of own funds shall be made (meaning that a part of the funds of capital liabilit ies is sunk by way of losses). (6) Balance CS and BNA after carrying out the matching as described in (5) above would represent 'Interest - bearing ACS' ( IB-ACS ) and 'Interest - bearing BNA ( IB-BNA). The aggregate of the two should be equal to interest-bearing capital liabilities (as reduced by negative own funds, if any). (7) Interest - bearing ACS at the bfginn;ng of the year and at the end of the year shall be used to datermine 'Average Interest - Bearing ACS'. Similarly, Average Interest - Bearing BNA' shall be computed. (8) The interest payable for the year on capital liabilities shall be proportionately divided over the average IB-ACS and average I B-BNA. (9) The portion of interest payable allocated to I B - ACS wou Id represent the amou nt of interest to be capitalised. 2. FUEL AND MATERIALS
ACCOUNTING
The method and basis for such measurements needs to be precise because any small inaccuracy in the basis would. when applied to large volumes of fuel, result in a significant inaccuracy in the measurement.
2.4 In view of fhe neer! for a precise measurement it is essential that all r ecaint s and consumption of fuel of each type be quantified throug h actual mea su remen t/vveiqh men t.
rnaintPI'"~;rg from ~m?'1 to large amounts d=pendir-n on th9 l
~
...
Gas 2.7 Ouantitative m€'asurement of.gas also rpqllirf's use of certain norm!': and physical param'eters for co:werting readino s from gas flow met e rs into volume of gas. Such norms and pararneters shall be used after they are established through periodic analysis in the laboratory.
2.8 With reqard to quantitative measurement of coal however, certain factors need to be considered
Need for measurement 2.3 Proper measurement of quantity of fuel is of cretical importance for the following purposes: (1) Computation of cost of fuel consumed
('
analysist periodically.
Quantitative
2.2 The procedures in respect of quantitative measurement of receipts, consumption and stock of fuel are discused in the following paragraphs:
(')
Inadequate facilities at the receiving point would slow down the unloading process. Any delay in unloading wagons would result in a liability to pay demurrage apart from increasing the wagon 'turnaround'time.
(2) Quantitv of coai to be handled by weighing facilities is relatively high.
(2) Vaiuation of fuel stocks
1.3)
Facilitating dealings such as fuel
with
suppliers, transporters, contractors.
third parties
fuel
handling
,
2.6 Certain ohvsir al l":>r'ln'pterc: lilee srerific gravity of oil etc. h=ve to be ""en for conv<>rtinp rpadirgs from oil flow meters and din mpasmement in oil storaqe tanks intn qU::l!1titv of oil. ~uch parameters shall be established through laboratory
Coal
of Fuel
(-
2.5 to.ctual rnsasurernent would fpquire installat ionand continuous
2,1 The procedural matters regarding Fuel and Materials accounting are laid down in this section. Measurement
f·
(3) The weighment facilities in coal handling plants work in quite rugged conditions. (4) Receipt and coasumption of coal is a day and night affa ir.
--l
99 2.9 On a proper consideration of those factors the procedures requiring leo per cent measurement in all cases of fuel receipt and consumption has been modified in case of coal The modified procedure is discussed below;
Receipt of Coal (1) Wherever adequate facilities including spare equipment to meet the requirements during the period of equipment break -done are available, full quantity of all the receipts of coal should be weigheds.
.r
(2) Wherever adequate 'Neighing facilities are ir-statlr-d but owing 10 a short period of brakdo wn of weighi.,g facilt ies 15 to 20 per cent of the receipts during the month remain unrne asu ed. the results obtained for the (80 to 85 per cent) receipts during lhe month which have been weighed should be applied to the unweighed wagons to estimate quantity therein. (3) Where adequate weighing facilities are not existing such facil it ies should be instilled. In the intervening period coal receipts durirg each month should be quantified on the basis of a sampling method. A sample of receipts which are statistically representative of all the receipts during the month must be drawn each month. The sample of wagons should be weighed and the weighment recorded in a register alongwirh the carrying capacity (including permissible overloading) of the wagon. Total of weiqhment should be deducted from the total of carrying capacity. The resultant figure would give quantity of transit loss of coal.
Consumption (')
of Coal
Where adequa'e we:ghment Ieci'ues (including spare equipment for use durin9 the period of breakdown) are avaiable to ensu re that consumption during full period can be weighed accuratetv. the total consumption should be quantified through actual Measurement/weighmet
(2) Where adequate weighment facilities are exitinq but are facing a breakdown for a short period during 1 he month, the consu mptio n during that period should be worked out on the basis of formula or norms to be laid down for that power station o n the lines de scriba d in sub-para (4) below. (3) Where facilities for weighment of coal consumption do not exist, such f;>cilities should be installed. In the intervenir q per iod. rhe consumpnon. of coal should be estimated on the basis of formulae or norms to be laid down for that power station in the manner described in sub- para (4) below. (4) The basis for estimation of consumption should be laid down aher reviewing plant performance in a representative sample of observations drawn from the current data on consumption.
(5) The formulae should be fixed after considering all the relevant factors. An illustrative list of the factors to be considered while fixing the formulae/norms is ; (a) Quality of the fuel normally received. (b) Specification of the fuel required. (c) Plant design, boiler design etc. (d) Age of the plant. (e) Various options of fuel mix.
The transit loss so drived during the month and total carrying capacity for weighed receipts should be considered alo npwith such transit loss derived in similar manner during, say. each of the preceding two months so as, to compute a weighted percentage of transit loss. Such a weighted percentage of transit loss should be used for estimating the total quantity of coal received in the wagons (whether weighed or not weiqhed).
(f) Plant efficiency.
(6) It is vital that the 3nproach/method of fixing formulae or norms, for estimatirg the consumption of fuel, be uniform for all the power plants of a Board.
(7) In this respect. involment of one or more independent technical/scientific bod ies, technical representatives of suppliers etc. wou'd ensure a fair and proper fixation of formulae or norms.
100 {8}
Formulae/norms specified iodic
Fuel
should
period
review
be
at the end
should
operative of
be carried
which
tor a a per-
out,
Accounting
Stocks
2.10 shall
The slack be
stock
of all types of fuel at the year end
physically
determined
as weighnment. Determining 2,11
analysing
statistical
Accounting 2.12
for
under established
sampling
In the cases where
etc.
a claim
drawn
by metunder
of Coal is perferr ed
by
collieries for reimbursement of the loss on account of receipts of interior grc;de of coal, a provision shall be made at the vear-e;-,d iO cover the Joss expected to arise from the refu s al by the collieries of the claims made on them: Such a provision may be of an arnr unt equal to part or whole of the claims remaining unsettled at the yearend. 213 The quantum of provision shall be in accordance with the p.ovisions of a formal agreement between t he BOord and the collieries which wou'd qovern the sampling 'echnlqves and basis of computation of amount payabla by either party on grade differences. Unt il such time as a formal aqree nen t in connectlon with grade dif'erences is entered into between the Board and the collieries. the provision shall be : (1) 100 per cent of the amount of claim. remainir.g unsettled at the year end as reduced by (2) an amount of claims which is. in view of the past experience and an apprai,al of future. considered likely 10 be granted by the collieries. of Superior
collieries but which are: not received by Board by the year end
wagons".
the Board On the
Accounting
2.15 Coal wagons in transit would mean "veeg3ns allotted to an SEB and despatched by the
not claimed from the Railways as "missing
methods.
Grade
for Coal Wagons in Transit
of fuel receipts.
of fuel receipts
inferior
of such
shall be determined
in the laboratory.
accepted
quantity
methods
Receipts
of valuation
receipts
all the samples
the
measurement
of Fuel
For the ourpose of fuel.
and
appropriate
volumetric Quality
the quality hods.
verified
through
not payable in view of past practice and an appraisal of factors likely to gcvern future decisions.
Grade of Coal
2.14 In respect of receipts of superior grade of coal. a provision for gain shall be made in accordance wi h a formal agreemet between the Board and the collieries dealirg with grade differences of coal receipts. Urn il such time as a formal agreement is e,tered into the p ovision Io r gJin shat! be made for an amount considered by the Board as
2.16 Coal wagons in transit at the year-end shall. 'whether or not any payment is made to the collieries for those wagons. bedisclosed as coal-intransit at the amount billed by the collieries. 2.17 Liability in respect of coal wagons in transit which are not paid for by the SEB by the year-end would be provided for at the year-end at an amount equal to the amount billed by the collieries, Treatment Verfication
of Excess! Shortage of Fuel Stocks
on
Physica~
2.18 Fuel stocks at the year end shalt be physicallv verif ir d to ascertain ihe quantitv at stock to be conSidered for valuati -n and disclosure in Imancial statements. Fuel stock as per accounting records shall be adjusted for the shortage or excess. if any observed on physical verrf ication of stocks. Valuation of shortage or excess. if any. shall be lit the rate to be applied to the closing stocks for the month in which the shortage or excess has been observed. Basis for valuation
of Gas Consumption
2.19 Valuation of gas consumption would be at the purchase order rate applicable to the rsce ipt s during the month, MATERIALS
ACCOUNTING
2.20 Accounting procedures relating to materials cost are laid down hereinbelow: (1) Stores which are exclusively catering to the requirements of construction projects shall be treated as 'Capital Stores', (2) Stores which are providing materials for both capital and O&M purposes shall book purchase related transactions basically as an O&M stores except that the value of issues on capital jobs shall be booked separately.
101
IF ••....
.at
·tl I,
u
(3) Fast moving items shall be covered by a standard rate system in which receipts, issues and stocks shall be valued at scientifically determined standard rate and the variance between actual costs and standard rate shall be collected in a separate account called 'Materials Cost Variance'.
(10) The liability to be created on the recepit of materials shall be made
(4) In case of items not covered by the Standard Rate system, the receipts shall be valued at Basic price plus Excise Duty plus Sales Tax. In such cases, the issues shall be valued at the weighted average rate applicable to the closing stock of the previous month. Where the closing stock of the previous month is nil, the valuation of issues shall be at the rate of first receipts of the month.
(11) Accounting for advance adjusted and re-
(5) Subsequent increase/decrease in the cost of receipts shall be adjusted in the issue rate prospectively and no retrospective adjustment shall be made to the value of past issues made au, of the conearned receipts or to the assets constructed out of such issues. I
(6) Freight on materials purchased (wnether incurred and biiled by supplier or incurred by the Board) shall not be treated as materials cost and shall be recorded in the separate account orovided for this purpose. (7) All other incidental costs such as packing charqes. Octroi etc shall also not be treated as materials C0St and shall be recorded in separate accounts provided for this purpose. (8) Returns from out of the materials issued in the past shall be valued at the issue fate applicable for the month in which the materials are returned. (9) The prescribed bases of valuation of issues and returns may lead to certain anomalies in stock values. Such anomalies, if any, shall be removed at the end of every quarter and the amount by which the stock values required adjustment shall be accounted for in a separate aceoun: prescribed for this purpose,
at the standard rate in case of fast moving items and at the purchase order rate in ca se of other items .
coveries and deductions made from a suppliers bill passed by the Board and recognition of the liability for the net amount due on that bill shall not be deferred till the actual discharge of the net liability.
( 12) Loss on shortage
in materials stock shall be provided for in the period in which the shortages are observed.
Treatment
of Materials
Cost Variance
2.21 Under the standard rate system referred to above, materials cost variance if any, in respect of receipts at construction locations or at O&M locations shall not be charged to Revenue Account or to Capital Works. 2.22 The balance in the "Materials Cost Variance Account" at [he year-end shall be treated as follows: (1) Credit balance shall be credited to a Reserve Called "Reserve for Materials Cost Variance".
(2) Debit balance shall be debited
to the "Reserve for Materials Cost Variance". If as a result of such debit the net balance in this Reserve account is a debit balance, the amount of debit balance shall be charged to Revenue account for the year.
2.23 Accounting treatment for materials cost variance prescribed above assumes that the standard rates are fixed appropriately and that a system exists for periodic revision of rates whenver significant variances are being observed. 2.24 The amount of materials cost variance recorded by construction divisions and circles and treated on the above lines shall be shown by way of note in the Fixed Assets Schedule in the Board's annual accounts.
o
102 3. BORROWINGS
AND INVESTW,ENTS
3.1 The procedural matters regarding accounts of borrowings and investments are laid down in this section. Deferred
Credit
Usance Bills
3.2 Usance bills may be issued by a Board under Deferred Credit Scheme Such bills may include even the interest for future years. In a balance sheet. such interest portion should be shown as a deduction from th e amount of outstanding usance bills. Debentures
issued as Collateral
Security
33 Debentures or any othet debt certificates issued as a collateral security shall not be recorded in the books as a liability but be disclosed by way of a note. Provision
for Depreciation
or
Appreciation
in
3.4 No provision need be made for the depreciation in the market value of securities (bonds and debentures or govern ment promissory notes) held by the board as investments (i.e. market value be, ing lower than the cost of the investments) since it would be a fair assumption in the case of such securities that the securities would be held till maturity when full value of the security would be realised. However, there may be securities in respect of which such an assumption about holding till maturity does not hold good. No provision shall be created even in such cases for depreciation in the value of investments Similarly no provision for any appreciation in the market value of investments shall be made by a Board. ACCOUNTING
AREAS
4.1 The procedural matters relatidg to other accounting areas are laid down in this section. Provision
for Doubtful
Accounting
for Writ·Off
of Bad Debts
4.3 Any receivables for sale of power to be written off shall be charged to the Revenue Account as bad debts written off, without touching the general provision for doubtful debts directly. Disclosure 44
of Unissued
Cheques
Cheques which are prepared
under authori-
sed payment vouchers but remain unissued at the
value of Investment
4. OTHER
ption to the above rule is the case of high tension large supply consumers. In such cases, individual bad debts can sometimes be large enough to affect any overall percentage. Doubtfulness of balances due from such consumers should be reviewed case wise and if the doubtful amount exceeds the fixed percentage, the amount of such excess should be additionaliy provided for. However, if the doubtful amount so determined is less than the fixed percentage, the fixed percentage should be nevertheless provided as a measure of conservatism.
Dues From Consumers
4.2 A fixed percentage of dues from consumers (except for a slight variation in the case of large consumers discussed later) shall be maintained as a provision for meeting debts which turn bad. This will eliminate the need for casewise investigation at the time of creating a provision. Such investigation can be conducted independently and in depth at the time of actually writing off a debt. A detailed study should be conducted periodically to ascertain the appropriate percentage for each Board and to I). .odate the percentage so determined. One excemad", I,
year and (i.e. not yet issued to payee) will, in accordance with the prescribed accounting policy, be debited to relevant liability account on preparation Of such cheques. However. since such cheques are not issued to payee and therefore liability not actually discharged, the total amount of such cheques shall be disclosed in Board's Accounts under a separate account "Liability under Unissued Cheques". Correspondingly, the bank balance shall be restored to the level existing before debiting such unissued cheques. Provision
For Obsolescence
4.5 Provision shall be made every year to cover the loss arising from technological obsolescence to the extent such loss has been determined, in respect of fixed assets in use, construction stores or operating stores in stock and assets under construction. Such provision shall be treated as a charge against the revenue for the year. Insurance
4.6 If a Board has not got its assets insured with an outside insurer the fact shall be disclosed in the Board's account. 4.7 Under the practice of self-insurance (where the Board sets aside an amount as an insurance premium, so that the amount so accumulated can be used for meeting loss of assets on account of fire, flood, cyclone etc.) the amount set aside every year shall be treated as a charge against revenue. However, it needs to be ensured that the
..i
103 l amount of insurance premium for this purpose is . ,cientificallyestablished. s'
Research and Development
Assets
4.9 Intangible assets of a Board shall be amorti:it:~dover the period estimated to be benefited. A ,:..'oportionate amount (calculated with reference to i.benefits during the year such as additional re\v~'1ue arising as a result of the asset) shall be char!ge.:l to revenue account for each of such years ben~'~ed
. ~.-... 'fl)Ar,rSMISSION
~fen.. .heei
Board. Costs
• :-4.8 Research and development costs incurred by a Board as a result of which no tangible asset is . acquired by the Board shall be written-off in the year of incurring the costs. This shall be done "wen in cases where the R&D costs are expected to result in an increase in revenue of future years. The ,-H&D expenditure for acquiring tangible assets shall be treated like expenditure for acquiring any , -':ther fixed asset. Amor ttsa tion of Intangible
AC!
the date of the Balance Sheet) which are material shall be disclosed in the annual accounts of the
OF POWER
'1,,10 If a Board receive power fromone State for onv.ard transmission to another State under purchase/sale arrangement between the former State ~n(r~he latter State, the intermediary transmitting \.~ard shall show the units so transmitted as a deH iuc non from its gross figures of units purchased .nd units sold. - ... ~-
4.12 Contingent liability would mean an obligation relating to current year or past years which is dependent upon the happening or non-happening of an event. Example of contingent liabilities are:
abov
y, ( aVE
apit:
(1) claim by the supplier or contractor fur a price higher than the one adopted by the Board for booking liability to him in relation to purchases or contract work during the current year or past years. This would include all cost escalation claims for supplies/works.
ilanc ~ain~
Jill t
(2) claim for refund of an increase in tariff made by consumers or by anyone else by contesting it in a court of law. (3) claim by the lenders for a higher interest or for a penal interest for any default in repayment instalments or in paying interest or for any other reason .
teres
(4) claim against the Board for payment of tax on income or profit of the Boa rd or for excise duty, levies etc, not accepted by the Board. Refunds of Customs
Duty/Port
Trust
Charges ntion
o
.".
,
_
!isclosura of Contingent
4.1) T:1eamount .
liabilities
of contingent
liabilities
(as on
4.13 Refunds of customs duty or port trust char-
ASSE
ges shall be credited to revenue unless the amounts are material in which case the portion, if any, relating to import of capital assets shall be deducted from the cost of the assets.
tere! J BN
?, \
,,itere s st ~CS day }e fi
'.'
.J
d (
aga fur: \ e.l/
-
_"s of f ",.,(ment
as 1=
