Definitions

For the purposes of this Schedule- (1) "Capital base" means the sum of-(a) the original cost of fixed assets available for use and necessary for the purpose of the undertaking subject to the provisions of para. XII in respect of service-lines, and the excess amount referred to in the proviso to sub-paragraph (2) of para. VII in respect of any fixed asset which has ceased to be available for use; (b) The cost of intangible assets including expenses on account of new capital issue; (c) The original cost of works in progress: (d) The amount of investments compulsorily made under para. IV of this Schedule together with the amount of such investments made after the commencement of this Act from contributions towards depreciation as in the opinion of the Authority could not be utilised for the purpose of the business of electricity supply of the undertaking: (e) An amount on account of working capital equal to the sum of-(i) One-twelfth of the sum of the book cost of stores, materials and supplies including fuel on hand at the end of each month of the year of account; (ii) One-twelfth of the sum of cash and bank balances (whether credit or debit) and call and short-term deposits at the end of each month of the year of account, not exceeding in the aggregate an amount equal to one-quarter of the expenditure under sub-para. (2) (b) of this paragraph excluding sub-clauses (i), (iv) (iv-a), (iv-b) and (x); less-(i) The amount written off or set aside on account of depreciation of fixed assets and amounts written off in respect of intangible assets in the books of the undertaking before or after the commencement of this Act; (ii) The amount of any loans advanced by the Board; (ii-a) The amount of any loans borrowed from organisations or Institutions approved by the State Government: (ii-b) The amount of any debentures issued by the licensee: (iii) The amounts deposited in cash with the licensee by consumers by way of security; (iv) The amount standing to the credit of the Tariffs and Dividends Control Reserve at the beginning of the year of account; (v) The amount standing to the credit of the Development Reserve at the close of the year of account; (vi) The amount carried forward at the beginning of the year of account in the accounts of the licensee for distribution to the consumers under para. II. (2) "Clear profit" means -The difference between the amount of income and the sum of expenditure plus specific appropriations, made up in each case as follows: -(a) Income derived from-(i) Gross receipts from sale of energy, less discounts applicable thereby; (ii) Rental of meters and other apparatus hired to consumers; (iii) Sale and repair of lamps and apparatus: (iv) Rents, less outgoings not otherwise provided for; (v) Transfer fees: (vi) Investments fixed and call deposits and bank balances; (vii) Other general receipts accountable in the assessment of Indian Income-Tax and arising from and ancillary or incidental to the business of Electricity supply, -(b) Expenditure properly incurred on-(i) Generation and purchase of energy: (ii) Distribution and sale of energy;