(1)All profits and losses due to revaluation, stock-taking or other causes shall be duly recorded and adjusted where necessary. Formal sanction of the competent authority shall be obtained in respect of losses, even though no formal correction or adjustment in Government accounts is involved. Power to write off, of losses are available under the Compendium of Financial Delegations.(2)Losses due to depreciation : Losses due to depreciation shall be analyzed, and recorded under following heads, as applicable :-(i)normal fluctuation of market prices;(ii)normal wear and tear;(iii)lack of foresight in regulating purchases; and(iv)negligence after purchase.(3)Losses not due to depreciation : Losses not due to depreciation shall be grouped under the following heads:-(i)losses due to theft or fraud;(ii)losses due to neglect;(iii)anticipated losses on account of obsolescence of stores or of purchases in excess of requirements;(iv)losses due to damage, and(v)losses due to extra ordinary situations under Force Majeure conditions like fire, flood, enemy action, etc.,"[Editorial Note. - As per Section 8 of the Bihar Finance (Amendment) Rules, 2005. Rules 132 to 153 of the Old Rules stand substituted by the Amended Rules but text of Rules 149 to 153 is absent in the Amended Rules, 2005. Therefore, Old Rules have been reproduced for the sake of record and ready reference. - Ed.]Old Rule read as :
