Part A-Applicable to a licensee not being a local authority

Part A-Applicable to a licensee not being a local authority, 1. For the purposes of section 5 (1) ' net annual profit ' shall, in respect of any account year subsequent to the date on which section 57 of the Electricity Supply Act and the Sixth Schedule thereto came into force, means the excess of ' income ' over ' expenditure ' as defined below, less the sums referred to in paragraph 4 or, as the case may be, plus the sums referred to in paragraph 5. 2. For the purposes of foregoing paragraph, ' income' means income derived from- (i) gross receipts from sale of energy, less discounts applicable thereto ; (ii) rental of meters and other apparatus hired to consumers ; (iii) sale and repair of lamps and apparatus ; (iv) rents ; (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. 5. The sums referred to in paragraph 1 as those to be added to the excess of ' income ' over ' expenditure ' are- (a) The appropriations from the Tariffs and Dividend Control Reserve to the extent necessary by virtue of paragraph 11 (2) of the Sixth Schedule aforesaid; and (b) the taxes paid or payable in respect of the appropriations aforesaid as taxes on income and profits. Part B-Applicable to a licensee being a local authority. For the purpose of section 5 (1) ' net annual profit ' in respect of any account year of a licensee being a local authority shall be : (i) the amount actually appropriated, or (ii) the amount which could have been appropriated, to the general funds of the local authority on account of the undertaking for that account year in accordance with the audited accounts of the undertaking.