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JHE ELECTRICITY (SUPPL

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----,

I'

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(ANNUAL
i'j --,_

.I

ACCQUl'-lTS) RllLES 198!)

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GOVERr- MENT OF INDIA


.
. ." . .
j_c.,- ,-,
MINI';T
,,)F ENf:RGY'
OEPARn

\_.-

",

'"

ANNEXURE
ANNUAL

STATEMENT
PART

OF ACCOUNTS

I-STATEMENTS

Page

Sta.tement
No.

,.

Tith

No.

R2vcnue Account

r
-'

2.

Net R~'/er'H!e and Aopropciation

3.

Balance Sheet

4.

Statement

Notes to Accounts

6.

Func t io n-vvi se Analysis 01 Revenue and Expenses

1;. . Sources

Account

of ACCOun!Hlg Policies

and Uses of Funds

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

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

5. Other Income

20

6. Purchase of Power

20

1\

7. Generation of Power

21

8. Repairs and Maintenance

21

~.

22

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

'.,

{...

\
\

(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

,,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 compild 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:-

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

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

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.

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

<lgainst the

-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

\/
\./

PREVIOUS YEAR

LIn its
Generated

Auxilliary
Consumn+ion

Net

,/

V
V

,/

Purchase
Sale

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

<I>

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)

Revsrrre Irorn sale of Power


61.1

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

(H)

23.3
Discount to Consumers for Timely pay78.820}
ment of Bills
[to 78.839

(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

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

Working Capital

FUNDS UTILIISED ON WORKING CAPITAL

\/

NET FUNDS FROM OPERATIONS


FUNDS UTILISED ON CAPITAL EXPENDITURE
on Projects (Refer Annexure to Statement 7 fOT
Projectwise break-up)

,,;
'\/

"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'

\/
\,1

v
-----------------------------\/

NET CAPITAL FUNDS FROM EXTERNAL SOURCES

------------------------------

Net Funds from Operations as


Capital Expenditure
PROJECT-WISE ANALYSIS

----------

Project Code

OF CAPITAL

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

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

OF POWER

----_

--Particulars

Previc..s

.L\.ccount Code

No

year
Rs.
-

---'---

Rs

.-----_._---

3
4

c ~n3tHner\J.v;sesubsunder main

ani

cl\;, nun

ace!.,' nt s:

.1

-.- -----_--------------

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 Rcoveries

from Consumer.

L_:

,0,

10

6' ~" 9

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

t est digit of the sub


~ccounts f( r each con su-

Ene gv Charges
Fuel Cost J'dustment
POW2r

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

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

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

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.

20
REVCNUE SUBSIDIES

SCHEDULE

AND GRANTS

Previous
Year
Rs.

This Year

Account Code

Particulars

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.

---

---- -----_.----.- -------------------n.er est on Staff l.o ans and Advances


2

Income from lnve strnent s

3_

Interest on Loans & Advances

4_

Celayed Payrrent

Interest on Advances 10 Suopliets/Conuac.or

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

\/

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;ghs to receive

TOTAL

70.3

70.4

--- -

---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

Sub-,otal

71.110
71.120
71.130
71.140

---.------.--~
SCHEDULE 7
THiS YEAR
Rs.

Rs.

PREVIOUS YEAR
Rs.

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.

Previous
Year
Rs.

22
SCHEDL.LE '.I
-

--.----

:~~r
.

Ace.runt -<f'.
[nis Year
Code - ------.--Rs.
Rs.

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

Egrn-.-d

Rs.

\
\

V
..

\,

;\J1;:dlG;J E xcenses
S)

Rs.

75.5

L'_;dV~

Yea:

~5. 1

i.
2.

r'revious

.ive

Enca sb-nent

P vrnent ' n';er Workmen's

'\.

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
----.-.-

....

75.8

-_

.. _.

----

TOTl\L

Sr.

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<c.ense;

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

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

\'

to

76.220
i3

Other Purchase reL}t~d

expenses

76.220
to

76299

---------

-_ ----------

T;:i-" L

7G.2

-----

___

--

--.--~.

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

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

18.89
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

------------------_ .._-------

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

2.

Total Credits
Extraordinary Lebit s ~losses on Account of Fiood.Cyclone,
etc. Account

Fire

Head 79.8)

,
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.

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)

.:' <lI:This Schedule covers colums printed on page 24 (a) also

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
.

Fis ...

8.

7.

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<j Advances

Sundry Receivables

26(d)
26 (e)
-.-

---------

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

22.65

,/
,/

22.66 &

22.67

Mater iais in Transit

22.68 &
22.69

\/

Other Materials

227

V'

21.2

\/

22.8

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-Mlscellanous

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

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

'-'

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

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

_----_.-----------_-_ -- ------_- --------_- -_--_,_ ---.._-----------------------_-_-----------_-_-_-

..

__

_-_ _..

,._----------_-,_

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

!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,:gig:'
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

--

ACCOUNTS

92

10.1
10.101

etc

5253

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':<ch;;se,

.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 -

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

Purchase - Steel

Materials

ACCOUNTS

o & M Materials
M

break-up

break-up

ii,J PARTNERSHIPS/JOlf\lT

22.22 & 22 23

&

stmantwtsa

3S

considered

-[.

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

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.

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 subaccOUi1: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

Coal Related Costs

.,

(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

v
J
!\.
I

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

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

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

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<l! Pail;,::ipatian
by Consumers - !n~efest free

'.....

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.iFICAFON

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

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-

Energv Charges
Demand charges

Fuel Cost Adjustment Charge

Power Factor Surcharge

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

61.559
61 561

to

61.579

Dutv Pavble

(Contra)

'I

tr

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 p1CCe08 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

71.215
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

Powr 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

(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<Jch scheme, a code shalf be assigned by the respective accounting U!111.
t[!ch scheme shall have 1 sub-occount codes as in case of no mal repairs and
maintenance

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


._-------

74.53.

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

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

Property Related Expenses


Rent (including
Rates & Taxes

lease Rentals)

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 vVrittenOff

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

MiSCEllANEOUS

:,

from Consumers
10

Suppliers/Conttactor

.,

from Consumers

~
to Suppliers/Contractors

-~
79

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

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

'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 ensue 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 recordd 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.

"

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.>'

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

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

ear

br-rrow

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 choges.


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
expectc'
'
: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

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<lfged to Revenue Account in the year in which
premium becomes payable.
Treatment of income and Investments
2118 Income from investment shall be credited
to the Revenue Account for the year in which the
income has accrued. However, if the investments
are held as earmarked investments aqainst any Fund
such as Pension Fund, Gratuity Fund atc., the income from such investments may be credited directly to the respective Fund.

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'ld.

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.

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

rf)"

;::;"'1'

r<J' ir".";~;B(8)( as (0l11pared 10 th teD: paYilo:e


,,11,,11
b", trec;ed as prior peliod cladit
or pr:or p:rl)d
cllarge in the Revenue account for the year in which
su_h excess Of shortfall is established.
Timing of Accounting

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....
vn 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<H:i":;
pr1jf:! ior li1') pu p:::sp. of c")m;)utin0 surplus for the
" ear lInd'~r SflctiOfl 59
2.IC Piqvi"on

.: 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<y of po vve r.

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:

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<lyment

(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

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 neCssary 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 fffc!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 Iferr~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
<Hid

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 effec'iv'"
date
shaff bl:!
whcr ever nece ssnrv. and restated

(co nstruct io l or opera-

$;.1ch ba!"nr:w;
uped

shari.

as 10 broad

f(em~nts
ronTat<;

under

a<:;f.11 <IS possib!p.. in

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'~

Fuel a.ld Matecials

SorroNing5

Other Accounting

Wi}

cIJSSI-

.:l.cco lnti '9

and lnve-,tments.

Exp5nditure

Areas,
&

'Liahili:v

Fix.ed ASS~!t5

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 <l depdlUre
Anllexu:e

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<et<; sh'lll be charged to Revenue in he year in which the rentals
('ccrue,
If the Bo lrd acquires leesehnld
right
for (In
a:se! with no or neqligible
I~ase premium_
the fair market value of the asset shell be
determined and the amount required
to state
the ass'!t at its fair market value shall bE: debi:ed 10 the asset and cf'di',;d
to an aC;f'unt

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 ~

,-y,]

aCG' en s

Employee Cnsts Charg8<lble to Works


1,3

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.

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'<shall be .

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

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'<lr re of facil it ies Iike


weight hr idqes. flow r,. ters. bf!!t ~('Ill~ etc. which
would involve eXD"oditurrl rt>"~;rg from ~m?'1 to
large amounts d=pendir-n on th9 l<dp.quClc"of the
existing f acili tie s Such ::In flxoenditl're
<houtd
h,-,wpver be treated as iustifil'd i'1 v;~w of thp. importao c= or precise measurement
of fuel rer ept. consumption and stocks Oils.

...

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

(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,

(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.

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 WritOff

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

.".

!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=