Depreciation reserve

Depreciation reserve.-(1) The Board shall create a depreciation reserve and, as far as compliance with the pr~visions of section 64 makes it practicable, shall, at the end of every year, credit to such reserve from its rereme, such amount as would if made annually throughout the prescribed periods of assets specified in the Table appended to the Seventh Schedule and accumulated at compound interest at the rate of three per centum per annum produce by the end on the prescribed period an amolznt equa! to 90 per centurn of the original cost of the t%Ssets after taking into account the sums already written off and set aside in the books of the Board.

1. (2) The amount to be credited every year to the depreciakim reserve under sub-section (1) shall consist of the incremental deposit plus interest cn the accumulated balance in the reserve : Provided that the contribution in re 1 pect of any asset to the depreciation reserve under this section shall cease at the end of the prescribed period as defined in the Sixth Schedule 01' when the asset ceases to be csed by the Board, whichever is earbr : Provided fur the^ that if in any year it is not practicable full? to comply with the provisions of this section, the amount b? which the sums actually credited falls short of the amount required under this section in respect of that year, shall be carried forward and together with compound interest thereon at the aforesaid rate, shall be credited to the said reserve as soon as it is found possible in accordance with section 64, so to do : Provided also that the accumulations in the depreciation reserve may be invested in the business of the Board or, utilised for rc-payment of principal not guaranteed under section 63 or for re-payment of sums paid by the Government under guarantees under that section.