You are on page 1of 9

1

CAPEX

Capex policy + Fixed asset register Company's furniture scheme

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

Capex Budget

2

2

100%

Nil

Such a Low quantum

Purchase of Capital asset

12

12

100%

Nil

Such a Low quantum

Capitalization

17

17

100%

Nil

Such a Low quantum

Installation certificate

17

17

100%

Nil

Such a Low quantum

Depreciation

8 years

2 years

25%

Nil

Recent Years i.e. 2010 & 2011 were considered

A.A.A. Such a Low quantum Cenvat credit 2 2 100% Nil Such a Low quantum Insurance N. N. N.A. N.Purchase + Additions made 17 17 100% Refer OLO.A. N.A. Such a Low quantum CWIP 20 20 100% Refer OLO. Such a Low quantum Deletions 20 20 100% Refer OLO. N.A. N.A. .A. Vendor Advance N. N.A. N.

.

which is signed by the plant head + Mr. Head when the asset is ready to use or put to use. N. First is as per the internal MIS while the other is as per Company's act. the system accepts only the first day of the month in which the asset is installed.There is no as such written policy for the capital expenditure. as such for the expenditure below 12 lacs.A. Capex budget is not prepared for There is no individual budget individual capital expenditure done.A. Who would be needing the same. but for the big capital expenditure separate budget is prepared. The internal MIS generally based on Straight line method. As soon as the asset is ready to use. the capitalization of the same should be done. Generally the capex requisition form is attached with a quotation also. There are two different rates at which most of the assets are depreciated. No Capex policy as such in written but for the accounting of capex. . The installation certificates were reviewed for all the additions made in the current year. A capex requisition form is filled up by the head of the deppt. there is a separate module for the company N. For the negotiation & rest of the procedure. This aspect was checked on all the assets capitalised in the period covered. Fixed asset register is also mantained in the system. Anirban for authorization & the normal of procedure of the purchase is followed. The installation certificate bore the installation date same as capitalization date. which is then given to purchase deppt. It is an IT issue. Installtion certificate are prepared by the respective deppt.

Anirban.e. It was checked whether Proper bifurcation of the addition was made i. - - There are no Vendor advances given at present. The removal of asset is initialized by the head of the deppt. There were two assets which were earlier expenced out but later capitalize when pointed out by Stat. which is then approved by the plant head & Mr. The adequacy of the same was also checked. The CWIP account was checked for the assets which are long pending in the WIP a/c. The insurance cover must be taken on all the assets of the company. - . - - The cenvat on excisable asset must be taken 50% in the year in which it was installed & rest 50% in any of the subsequent year.All the additions made in the year 2011 were reviewed. under proper head each asset was categorized. auditors. by raising a Fixed asset disposal form(FADF).

.

Received FA register. Anirban for Leakage tester & Lapping machine. Authorization on all the fixed asset requisition form was found. the installation certificate bore the date of capitalization whereas the gate entry of the asset is of subsequent date. N. >In few cases there were no installation certificates. . This proves that the installation certificates are deliberately given the same date as of capitalization irrespective of the date its actual installation. In few cases. The same is approved by the plant head & Mr. the asset which has been installed on later date has been capitalized on the first date of the same month. In many cases it was found that there has been prior capitalization of the asset i. >In few cases. The depreciation rates were checked & also the correct calculation of the same were noted.e.A. it was found that the GRN date or Gate entry was actually subsequent to the capitalization date.

but few cases where the asset was exsicable the credit of the same was checked i. >A JV could have been passed for the assets which were earliar expensed out now capitalized. In few cases FADF was not found.g. - . >Instalation certificate were not found in few cases. covering all the plant & machinery as a whole. The insurance cover was kind of blanket insurance. >There were few assets which could have been readily installed but still are pending to be installed & capitalized e.e. 70000440 & 450 are capitalised on later date. Racks. >There was delay in installation of few assets which could have been installed on the same day of its gate entry. New server. Sales invoice of the same was checked. The insurance cover was made on the replacement cost of the asset & was adequate. Insurance cover was taken from the TATA-AIG. >The provision of the freight cost was not made of Lapping M/C. Most of the cases were for the VAT credit.>Asset no. 50% in the current year.

f½ff°    - °¾ff° n €nf    - @ °¾ff°n €nf ¾   °¾f°n €nf f     €f f °¾¯f ° ½ ½f    ¾½ n   n ° f ½½  f  ° f¾¾  @ °¾ff°n €nf     ¾ f ¾ ½¾ °¾ff° f ¾f¯ f¾ nf nf½ff° f f°¯  ½ nf°  f¾  f¾  - @  f  €€  ° f ¾ f n  n ° ¯¾€ f¾¾ ¾f  ½ nf  f¾  @ ° °f.  f¾ °f–°      ¾f¾½ .– ° f ¾ ¾ f¾ ½   ° °f .

¯½f° ¾fn    ¯  n°¾  @    f¾¾ ¾n    f  ½ °n  f nf½f  ° ½°  f f ¾ 9nf¾ +  °¾ ¯f      f °¾ ¯f °   f       f¾ n n    9½  €nf° €  f ° f¾ ¯f  °  ½½   f fn f¾¾  f¾  €  nf nf –  f°¯   °¾    @  ¯f € f¾¾  ¾   f €  ½½  €  nf  f¾¾  ¾½¾f  f°¯ n ¾  ° f½½  f  . ° f° °f   f¾°– f €¯%%   ½f° .

J9     €  nf  f°¯ @ .

J9 fnn° f¾ n n €  f¾¾ ¾ n f °– ½ ° °– °  J9f$n .

.

°fn     - @ n °f ° n¾f  f¾¾  ¯¾ f °  °   f ° n  f¾ nf °¾f  ¾  ° f° €  f°¯ ¾ ¾  ° f @ °¾f°n n  ¯¾ f ° ° f  f¾¾ ¾ €  n¯½f° @ f fn €  ¾f¯ f¾ f¾ n n °¾f°n - - - - - I °   f°n - - - - - @  f ° I °  f f°n ¾ – ° f½ ¾ ° .

 ° f°€ ff–  ¾  f½½°–¯fn° f°°f € f¾¾   ¾°€¯f¾€° °¯f°nf¾ ¾f¾€° f   f¾ °½nf½ff°€  f¾¾   f¾¾ nf¾ ° °¾f °f  f f¾ ° nf½f ° €¾ f €  ¾f¯ ¯° °€ nf¾ ¾ f¾€° f  - f f  °f¾fnf ¾ ¾  ° nf½ff° f °€ nf¾ ¾    ° °¾ff°n €nf ¾ °€ nf¾ ¾  °¾ff° n €nf     f € nf½ff°  f¾ –f  ° € f¾¾ ¾€¾ ¾  ° f  @¾½ ¾f °¾ff° n €nf ¾f   f – °  ¾f¯  f f¾€nf½ff°  ¾½ n €  f ¾fnf °¾ff° @  ½ nf°f ¾  n n  f¾ n nnfnf°€  ¾f¯   ° ¾¾ °  f  nf½f¾ °f  f In f  °½f¾¾ €  f¾¾ ¾n   ff ½ °¾  °nf½f °¾ff°n €nf   °€°  °€ nf¾ ¾ @  f¾ f°°¾ff°€€  f¾¾ ¾nn f  ° °¾f ° ¾f¯  f€¾–f  ° f ¾°n € ¾f¯ f¾ n n °€ nf¾ ¾f¾°€° @    € f¾¾ ¾nn  f  ° f °¾f  ¾ f ½ ° °– °¾f   nf½f  – fn¾ - ¾   @ ½¾°€ € –n¾f¾ °¯f €f½½°–. n   –¾  - @ ¾f¯ ¾f½½   ½f°  f  .$.

.

.¾€ nf¾ ¾  € I@ n   € nf¾ ¾   f¾¾  f¾ ¾nf   n € ¾f¯  f¾n n   ° n °  f °¾f°n n f¾f °€¯  @@  @ °¾f°n n f¾ ¯f °  ½fn ¯ °n¾€  f¾¾  f¾f f @ °¾f°n  n f¾° € f° °¾f°n  n °–f ½f° ¯fn° f¾ f .