(1) The Board shall create a depreciation reserve and shall at the end of every year, credit to such reserve from its revenues a percentage of the original cost of the assets as specified in the Regulations to be framed under this Act.
(2) The amount to be credited each year to the depreciation reserve under sub section (1) shall consist of the incremental deposit in the reserve:
Provided that the contribution in respect of any asset to the depreciation reserve under this section shall cease at the end of such period as may be prescribed by regulations or when the assets cease to be in use, whichever is earlier.
Improvements Reserve
18. The Board shall create a reserve for improvement works and shall, at the end of every year, credit to such reserve from its revenues, such percentage of the balance remaining after meeting its operating, maintenance and management expenses and after adequate provision is made for depreciation, taxes, interest and amortization payments on loans and other borrowings as the Board may determine taking into consideration the improvement works which the Board will have to execute in order to provide adequate water supply and sewage treatment works in the Guwahati Metropolitan area.
Accounts, Audit and Annual Report