Administration Manual - B.E.S.T. Undertaking.

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This is exactly 50% of the depreciation provision already calculated
on the assets of the Undertaking to meet short fall for replacement of
asset. This fund is called as Special depreciation fund and same is
created vide BCR No. 150 dated 8/6/73 and CR No. 1314 dated 15.03.74.
(xii) Provision for Property Insurance Fund:
This is also non statutory fund credited vide BCR No.412
dt.7/7/1978 & CR No.1905 dt.22/2/1979 to cover the risk of fire, riot etc.
to the properties of the Undertaking and also risk of losses pilferage while
supplies are in transit. The provision towards the Property Insurance
Fund are calculated at the rate of 0.5% of the opening asset value by
debiting to each division and crediting to Property Insurance Fund A/c.
The fund is debited when expenditure incurred towards damages arising
out of incidents beyond the control of Administration took place eg. fire,
riot, floods, etc. to the property of Undertaking.
A provision towards leased Assets also is made as these
assets are used in the Undertaking’s business and any liability on account
of fire, riot, flood arises, the same is met from Property Insurance Fund
xiii) Electric Supply Contingency Reserve Fund:
The said fund is also non-statutory and charged to the Revenue A/c
at the rate of 0.5% on the opening of gross assets of Supply Division but
does not exceed the limit of 5% of the original cost of each asset of
Supply Division. While calculating the opening assets of Supply, 50%
share of opening asset of General Admn. is required to be considered.
Thus the fund provision is restricted to Supply Division. The accounting
treatment is similar to Property Insurance Fund. The fund is created vide
BCR No. 274 dated 1/2/1952 and CR No. 1681 dated 21/02/1952.
(xiv) Third Party Insurance Fund & Motor Vehicle Third Party Insurance Fund:
The provision towards Third Party Insurance Fund & Motor Vehicle
Third Party Insurance Fund is also required to be charged to Revenue A/c
based on last year actuals to make the payment of Third Party arising out
of accidents and legal charges. Initially, expenditure towards claim is