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Illustration 1: From the following details of assets calculate weighted average rate of
Depreciation considering the rates as per Appendix-III
Particulars
Closing balance at cost
Land
(a) Freehold
6,69,800
(b) Leasehold
2,15,450
Buildings
36,85,350
Railway Sidings
11,700
Plant and Machinery
(a) Steam Station
1,41,64,950
(b) Others Including "Switchgears and Transformers"
1,02,89,450
Transmission and Distributing Systems
(a) Overhead
21,21,450
(b) Underground
84,48,050
Electrical Fittings
2,50,650
Furniture, Fixture and Office Equipments
3,51,800
Vehicles
1,07,400
Total
4,03,16,050

Illustration 2 : Calculate depreciation as per 2009 regulations from the following information of
Barh Generation project
(1) Date of commercial operation, i.e. 1.9.2010.
(2) The details of actual expenditure incurred up to the date of commercial
operation, i.e. 1.9.2010 and projected expenditure to be incurred from the date of
commercial operation to 31.3.2014 for the assets under Barh Transmission
System. The details of apportioned approved cost as on the date of commercial
operation and projected expenditure to be incurred for the above mentioned
assets is summarized below:Apportioned
approved
cost

Actual cost
incurred as
on the date
of
commercial
operation

205054.00

195054.65

(3)
Average Rate of
Depreciation calculated as
per rates specified in
Appendix-III

Proposed
expenditure
from the date
of
commercial
operation to
31.3.2011
30754.00

5.1749%

Proposed
expenditure
for 2011-12

Total
estimated
completion
cost

9716.00

235524.65

5.1650%

5.1650%

Financial Statement of Electricity Company

5.1650%

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Illustration 3 : From the following information calculate:

(a) Average capital cost
(b) Return on equity
(c) Interest on loan
(d) Depreciation as per Regulation 14 of the Central Electricity Regulatory
Commission (Terms and Conditions of Tariff) Regulations, 2009.
1. Date of commercial operation or COD = 1, April,2010
2. Approved opening Capital cost as on 1-4-2010 = Rs 1,42,165.37
3. Consider weighted average rate of depreciation of 5.28%
4. Details of allowed additional capital expenditure, Weighted average rate of
interest on loan is as follows:
2010-11
2011-12
2012-13
2013-14
Additional capital
9,922.29
2,786.65
1,933.54
1,507.84
expenditure (allowed
above) (B)
Weighted Average Rate of
Interest on Loan

7.3765%

7.4788%

7.4690%

7.5011%

Illustration 5:- The trial balance of Noida Electric Supply Ltd. for the year ended 31st March,
2012 is as below:
Debit
Credit
Share Capital :
250,00
Equity Shares of Rs10 each
75,00
14% Preference Shares of Rs100 each
12,52
Patents and trade mark
123,50
15% Debentures
76,50
16% Term Loan
62,25
Land (additions during the year 10,25)
Building (additions during the year 25,40) 175,67
285,29
Plant & Machinery
22,62
Mains
15,75
Meters
7,65
Electrical Instrument
12,25
Office furniture
25,10
Capital reserve
60,15
Contingency reserves
82,20
Transformers
26,75
Net revenue account
60,25
Stock in hand
31,23
Sundry debtors
60,05
Contingency reserve investment
16,27
Cash & Bank
15,20
Public lamps
129,08
Depreciation fund
32,62
Sundry Creditors
60,50
Proposed dividend

Financial Statement of Electricity Company

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Total

859,20

859,20

During 2011-12, Rs (000) 50,00 of 14% preference shares were redeemed at a

premium of 10% out of proceeds of fresh issue of equity shares of necessary amounts at
a premium of 10%.
Prepare Balance Sheet as on 31st March, 2012 as per the revised Schedule VI.

Financial Statement of Electricity Company