Licencee:-NESCO LTD.

Annex-B2

CALCULATION OF CAPITAL BASE AND REASONABLE RETURN FOR THE FINANCIAL YEAR 2002-03

(Rs. in crore)

Proposed by NESCO

A.

2002-03

2002-03

(a)

Original cost of fixed asset

413.91

413.91

Less consumers contribution

(54.53)

-54.53

(b)

Cost of intangible asset

0.01

0.01

(c)

The original cost of Work in progress

10.66

10.66

(d)

The amount of investment compulsorily made under para-IV

0.00

0.00

(e)

An amount on account of working capital equal to the sum of

(i)

Average cost of stores (1/12th of the sum of the stores materials and suppliers including fuel in hand at the end of each month of the year)

12.40

4.84

(ii)

Average cash and bank balance (1/12th of the sum of cash and bank balance whether credit or debit and call and short term deposits at the end of each month of the year)

11.11

9.60

Total of A:

393.55

384.49

Less