Section 14 in Hyderabad Metropolitain Water Supply Sewerage Act, 1989
14. [ Depreciation Reserve. [Substituted by Act. No.4 of 1997.]
(1)The Board shall create a depreciation reserve and shall at the end of every year, credit to such reserve from its revenues, such amount as would if made annually throughout the period specified in column (2) of the First Schedule in respect of the assets specified in column(1) thereof and accumulated at compound interest at the rate of three per centum per annum produced by the end of the said specified period an amount equal to ninety percent of the original cost of the assets after taking into account the sums already written off and set aside in the books of the Board.(2)(a)in equal annual installments in respect of each such asset; or(b)at a fixed annual percentage of the original cost of acquisition during the year of acquisition and of the depreciated value of the asset as at the end of the previous financial years during each subsequent year.(2)If any asset is sold, discarded, demolished or destroyed during the year-(a)the excess, if any, of the written down value of such asset over its sale proceeds or as the case may be its scrap value shall be written off;(b)the excess, if any, of the lower of the sale proceeds and the cost of acquisition over the written down value of the asset shall be accounted for as income during such financial year; and(c)the excess, if any, of the sale proceeds over the cost of acquisition of the asset shall be credited to the capital reserve of the Board.In the financial year in which the asset is sold, discarded, demolished or destroyed.]
