Rule 223 — GFR

Rule 223 (1) Powers to write off. All profits and losses due to revaluation, stock-taking or other causes shall be duly recorded and adjusted where necessary. Formal sanction of the competent authority shall be obtained in respect of losses, even though no formal correction or adjustment in government accounts is involved. Powers to write off of losses are available under the Delegation of Financial Powers Rules.

Rule 223 (2) Losses due to depreciation: Losses due to depreciation shall be analysed, and recorded under following heads, as applicable: -

(i) Normal fluctuation of market prices;

(ii) Normal wear and tear;

(iii) Lack of foresight in regulating purchases; and

(iv) Negligence after purchase.

Rule 223 (3) Losses not due to depreciation: Losses not due to depreciation shall be grouped under the following heads: -

(i) Losses due to theft or fraud;

(ii) Losses due to neglect;

(iii) Anticipated losses on account of obsolescence of stores or of purchases in excess of requirements;

(iv) Losses due to damage, and

(v) Losses due to extra ordinary situations under 'Force Majeure' conditions like fire, flood, enemy action, etc.;

Ch. 8 CONTRACT MANAGEMENT