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Financial Statement of Electricity Company

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

Proposed expenditure from the date of commercial operation to 31.3.2011

Proposed expenditure for 2011-12

Total estimated completion cost

205054.00 195054.65 30754.00 9716.00 235524.65

(3)

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

5.1749% 5.1650% 5.1650% 5.1650%

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Financial Statement of Electricity Company

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 expenditure (allowed above) (B) Weighted Average Rate of Interest on Loan

9,922.29 7.3765%

2,786.65 7.4788%

1,933.54 7.4690%

1,507.84 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 :

Equity Shares of Rs10 each 14% Preference Shares of Rs100 each Patents and trade mark 15% Debentures 16% Term Loan Land (additions during the year 10,25) Building (additions during the year 25,40) Plant & Machinery Mains Meters Electrical Instrument Office furniture Capital reserve Contingency reserves Transformers Net revenue account Stock in hand Sundry debtors Contingency reserve investment Cash & Bank Public lamps Depreciation fund Sundry Creditors Proposed dividend

12,52 62,25 175,67 285,29 22,62 15,75 7,65 12,25 82,20 60,25 31,23 60,05 16,27 15,20

250,00 75,00 123,50 76,50 25,10 60,15 26,75 129,08 32,62 60,50

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Financial Statement of Electricity Company

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.