Section 14 in Hyderabad Metropolitan Water Supply and Sewerage Act, 1989
14. [ Depreciation Reserve. [Section 14 with marginal heading substituted by Act No.4 of 1997.]
(1)The Board shall every year provide out of its revenues, depreciation in respect of each depreciable asset specified in column (1) of the First Schedule, so that the depreciation provided in respect of such asset over the period specified in column (2) accumulates to ninety percent of the original cost of acquisition of the asset, either,-(a)in equal annual instalments 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.]
