Methodology of Valuation of Fixed Assets O&M Divisions

1. Introduction
Predesigned formats are sent to various O&Ms for data collection. The major asset classifications sought from the O&Ms, besides furniture, land, buildings, etc. are divided into three major heads; Transformers, LT Items (encompassing all LT related materials like various types and dimensions of LT Lines, LT Poles, UG Cables, Street Light Fittings, etc.), and HT Items (encompassing HT Lines, HT Poles, HT Poles). The data (areawise) is then filled in by the O&M staff with respect to the length and specifications of HT & LT lines and cables; specification and number of HT & LT poles, pillar boxes, etc. It may be noted that the format sent for data collection is exhaustive in nature and clearly spells out the type of asset required, as below. LT Items
1 SS pillar box (Nos.) 8W 6W 4W 2 Distribution Pillar box (Nos.) 8W 6W 4W 3 4 & 3 core LT U.G Cables (sq. mm) Associated with DTR (KMS) 400 300 240 150 95 50 25 16 10 4 2 core LT cables ( sq. mm) 16 10

5 Length of the LT lines Associated with DTR (KMS) 4.09 3.35 2.59 2.11 cu. R.C.C 30' 24'

6 LT Poles (N0s.) Tubular 30' 24' R.S.J/ Spun

7 Street Light fitting (Nos.) 250 w TTL STL Timer

Spun

HT Items
1 Length of the H.T Cables
400 300 240 185 150 95 50

2 Length of the H.T Lines (KMS)

4.09 3.35 2.59 2.11 Cu

3 Isolating Switches (Nos.)

D/C AB S/C AB Oil SF6 42' Rail

4 Poles (Poles)
36' Rail 30 RCC RSJ

Transformers With regard to the distribution transformers, details are sought as to the voltage, capacity, and year of manufacture / commissioning. Using this, valuations can be carried out as the work orders specify the make, capacity and the voltage of the transformers drawn from the stores by each O&Ms.

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2. Physical Verification
The data thus collected from the O&M fields are sent to for physical verifications by the teams so assigned. During the physical verification, any discrepancies noticed are corrected by the verification team and the data primarily collected from the O&M is modified to that extent. Valuations are carried out to this modified data by using the work order system.

3. Valuation
The Work Order Management System records the cost details of the materials issued from the regional store to various O&Ms against work orders. The stores transactions are available from 1990 for Puducherry region; for the other regions (Mahe, Karikal and Yanam), the data is available from the last 10 years or so due to the delayed computerization in these regions. In the cases of nonavailability of costs for years prior to computerization, the rates prevailing in the Puducherry O&M region have been adopted. This acts as the base for valuing the LT, HT and transformers data so physically verified. For other asset classes such as furniture, land, buildings, etc., the cost details have been collected from the respective divisions (Furniture MMC division, etc.). Note: 1. For LT Items, the year is taken as the year of commissioning / manufacture of the transformer in that area. For e.g. in Yanam, a transformer has been commissioned at Ganapathi Nagar locality in 2006. For all the LT assets forming a part of Ganapathi Nagar, the year of procurement from stores will be taken as 2006. Therefore, the lines, poles, cables, fittings will be valued at the rates in 2006. This is based on the fact that the LT items are used simultaneously while commissioning / laying the transformers. 2. For HT Items, the year of the respective HT feeder is taken as the year of commissioning of the substation it is a part of. For e.g. in Yanam, the year for all the HT Items relating to the Kanaka Durga Feeder is taken as 1997; i.e. the year of commissioning of Yanam substation. Therefore, the lines, poles, cables, etc. will be valued at the rates in 1997. This is based on the fact that the feeder is constructed while commissioning / laying the substations. The methodology of valuing different assets is given below: 3.1 LT Items Asset SS Pillar Boxes Methodology There are three types of SS Pillar Boxes; 8Way, 6Way and 4Way. The work order specifies the type of pillar boxes drawn from the stores; and the costs are allocated to these assets based on the year and the O&M. The sub-classifications of the pillar boxes have not been called for. E.g. A 6W SS Pillar Box has further classifications of 6Way 600 Amps and 6 Way 400 Amps. This classification had not been done even during the initial data

S. No. 1

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S. No.

Asset

Methodology collection from the O&Ms, reason stated - it is not possible to identify the difference between the two. In these cases, the cost of the higher Amps has been taken, in this case 6 Way 600 Amps.

2 3

Distribution Pillar Same as above. Boxes 4 & 3 core LT There are various types 400 sq.mm, 300 sq.mm, 150 sq.mm, 95 sq.mm, U.G Cables 50 sq.mm, 25 sq.mm, 16 sq.mm, and 10 sq.mm. The work order specifies the type of cables drawn from the stores; and the costs are allocated to these assets based on the year and the length of cables drawn by the respective O&M. 2 core LT cables There are two types of such cables, 16 sq.mm, and 10 sq.mm. The valuation is done based on the type of cable drawn from stores, the year and the O&M. (as above) There are 4 types of LT Lines 4.09, 3.35, 2.59 and 2.11 mm. The length of the line and its type has been collected from the O&Ms and the cost of the lines are arrived at by using the year and the multiplying the rates by the length of the line. Three types R.C.C pole, R.S.J. Pole and Tubular Poles, which are further bifurcated by the sizes. With respect to the tubular poles, the value can be arrived at according to the size. With respect to the other two, i.e. R.C.C. and R.S.J. Pole, in addition to the poles itself, certain other components are to be added to make it a complete set. They are: 3 phase cross arm 1 No. 3 phase cross arm clamp 1 No. LT Pin Insulators 3 Nos. LT GI Pin 3 Nos. CI Knob 1 No.

LT Lines

LT Poles

Thus, besides the cost of the actual R.C.C. pole and R.S.J pole, the costs of the above components are also to be added as these are a part of the poles. The costs of these, year wise, size wise and item wise are available in the Work Order Systems and the poles are values accordingly. 7 Street Fittings Light Four types of fittings the 250w bulb, TTL, STL and the timer. The values of TTL and timers can be straight away allocated according to the year and the O&M which draws it, but for the rest; certain other components are to be added to make it a complete set (as above in the case of R.C.C. and R.S.J. pole) They are:

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S. No.

Asset SVL / STL Fittings SVL / STL Bracket SVL / STL Bulb.

Methodology

The costs are thus arrived in the same manner as prescribed for R.C.C and R.S.J. poles in point 6 above.

3.2

Transformers With regard to the distribution transformers, details are sought as to the voltage, capacity, and year of manufacture / commissioning. Using this, valuations can be carried out as the work orders specify the make, capacity and the voltage of the transformers drawn from the stores by each O&Ms.

3.3

HT Items Asset HT Cables HT Lines HT Poles Methodology Same methodology as in 4 & 3 core LT U.G Cables (point 3 in LT Items) Same methodology as in LT Lines (point 5 in LT Items) Same methodology as in LT Poles (point 6 in LT Items). The only difference is that the items that need to be added to make a complete set of the respective poles differ as below. For 30 RCC / 42 & 36 Rail poles, the following costs of following items are to be added in addition to the pole cost itself: HT V Cross Arm 1 No. HT cross arm lamp 1 No. F Clamp 1 No. HT Pin insulator 3 Nos. HT GI Pin 3 Nos.

S. No. 1 2 3

Isolating Switches

Segregated into 4 types, the valuation is from the W.O. which has costs for all the different types.

It may be noted that for all the above categories of items; HT, LT and Transformers, the below additional amounts are added as per EDPs policies. S.No. 1 2 3 4 5 Nature of Cost Erection & Transport Supervision Charges Storage Contingencies Sundries Percentage (As a % of the asset cost) 15% 17% 2.5% 3% 3%

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