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FIXED ASSETS ACCOUNTING POLICY AND PROCEDURES:

1. Policy Statement
The purpose of this policy is to set forth the guidelines for the physical and
reporting control of the Company

s assets, i ncl udi ng accountabi l i t y over


the assets, meeting financial reporting needs, and generating asset
management information.
2. Reason for Policy
This document is intended to describe the standard policies required for
recording new and existing assets, changes in assets and the methodology of
record keeping. In addition, it is intended to provide steps to assist company
personnel in the safeguarding, accounting for and disposing of company
assets. Legal responsibilities require that the company accurately record and
account for capital assets on a regular basis. Because each department
engages in the acquisition, transfer, disposal, and use of capital equipment,
this policy sets forth the roles and responsibilities in regard to capital assets.
3. Roles and Responsibilities
The major responsibilities each party has in connection with the Capital Assets
Policy & Procedures are as follows:
3.1 The Controllers of Department of Accounts and Finance
Is responsible for the establishment and maintenance of an adequate fixed
asset accounting system that allows for the proper presentation of companys
assets in the financial statements and the overall proper accounting of assets.

If any purchases are to be made which exceeds the budget allocated to
respective department then such asset/s should be purchased after
consulting with The FIXED ASSETS CO-ORDINATOR and if necessary

approval of controller of Department of Accounts and Finance may be
taken by Fixed assets co-ordinator for the same

3.2 The Fixed Asset Coordinator reports to The Controller-of
Accounting and finance and is responsible for:
He is responsible for ensuring the fixed asset accounting system is being
properly maintained, including the identification of capital assets, accurate use
of codes, determination of useful lives, Depreciation Rate, reconciliation to the
general ledger, and financial reporting.
He will be responsible for approving fixed asset purchase budget of various
departments of the company.
Any fixed asset purchase without informing The Coordinators of
Department of Finance and Accounting shall be personal responsibility
of the person authorizing such purchase, and company at its wish may
unauthorized such purchases.
3.3 Further he will be responsible for:
1. To carry out necessary task essential for physical record keeping of
Fixed Assets.
2. Providing Controller of accounts and finance with the necessary
documentation to review assets invoiced as capital assets (Item Code
tags and F.A Code-tags) for final determination as a fixed asset;
3. The proper tagging of all assets;
4. Preparing an annual listing of all assets;
5. Providing department heads with current records of the property for
which they are responsible;
6. Joint physical inventories may be taken on an annual basis verifying
the existence and condition of all capital assets to ensure the accuracy
of company accounting records;
7. Updating the fixed assets inventory based on inspection reports and
notifying Controller of accounts and finance regarding any inventory
changes;
8. Evaluating loss, damage, destruction, disposal, theft, trade-ins, sale,
and/or transfer of Company assets and providing recommendations
with regard to the disposition of these assets;
9. Review and posting of depreciation through the Fixed Asset ERP Module on
a monthly basis;

10. Proper accounting of gain or loss on sale of assets, preparation of yearly
budget for Fixed Asset, proper accounting and record keeping and documentation
of various cost like insurance etc.
11. Reconciliation of the fiscal year additions in the Fixed Asset ERP
Module to the general ledger completed in a timely basis;
12. He must be informed of any movement, transfer, destruction, sale etc of
fixed assets any no such activity shall be made without his permission.
13. He will be responsible for accounting and maintaining of fixed assets
both as per accounts and physically as per all applicable laws, rules
regulations etc.


Purchasing/Accounts Payable ensures account codes are classified correctly
for capital assets on purchase requisitions and invoices and are paid
accordingly.
4. All Department Heads Are Responsible For:
Reading, understanding and implementation of the Fixed Assets Policy and
Guiding their subordinate for the same.
1. Maintaining current inventory records for all in-use fixed assets within
their assigned department;
2. Assuring property is given proper care and protection and is used for
official purposes only;
3. Notifying the Fixed Assets Coordinator of any changes in the index coding of
An asset and are also responsible for repair, maintenance,
Preventive maintenance, protection, calibration of equipments, installation &
Commissioning service etc related to respective assets.
4. Notifying the Coordinator whenever fixed assets are transferred/acquired,
Sold, donated, destroyed, stolen, lost or otherwise disposed of by using
The Fixed Assets Tranfer Form Found in the Accounts Department
5. Identifying and reporting to the Coordinator along any surplus property
which is useable but not needed in his/her area, or which is beyond
economic repair and therefore to be disposed off.

5.Definations :
1. Fixed asset is an asset held with the intention of being used for the
purpose of producing or providing goods or services and is not held for

sale in the normal course of business.
2. Fair market value is the price that would be agreed to in an open
and unrestricted market between knowledgeable and willing parties dealing
at arms length who are fully informed and are not under any compulsion
to transact.
3. Gross book value of a fixed asset is its historical cost or other amount
substituted for historical cost in the books of account or financial
statements. When this amount is shown net of accumulated depreciation,
it is termed as net book value.

6. ACCOUNTING OF FIXED ASSETS : The definition 1 gives criteria for
determining whether items are to be classified as fixed assets. Judgment is required in
applying the criteria to specific circumstances or specific types of enterprises. It may be
appropriate to aggregate individually insignificant items, and to apply the criteria to the
aggregate value. An enterprise may decide to expense an item which could otherwise
have been included as fixed asset, because the amount of the expenditure is not
material.
1. Stand-by equipment and servicing equipment are normally capitalized.
Machinery spares are usually charged to the profit and loss statement as and
when consumed. However, if such spares can be used only in connection
with an item of fixed asset and their use is expected to be irregular, it may be
appropriate to allocate the total cost on a systematic basis over a period not
exceeding the useful life of the principal item.

2. In certain circumstances, the accounting for an item of fixed asset may be
improved if the total expenditure thereon is allocated to its component parts,
provided they are in practice separable, and estimates are made of the useful
lives of these components. For example,?????????.



Capitalization of Fixed Assets

A capitalized fixed asset is property, such as equipment, buildings
and land, with a cost or value greater than Threshold Limit at the date of
acquisition, , and an expected useful life of more than one year. Capitalized fixed
assets are acquired for the use in normal operations and are not for resale. All
capitalized fixed assets are entered into the ERP Fixed Assets Module for
inventory and financial reporting purposes.
Assets costing up to Threshold Limit are expensed in the fiscal year of purchase
and are not capitalized nor maintained through the ERP Fixed Assets Module.
The only exception allowable is for the capitalization of low cost equipment for
the initial outfitting of a tangible capital asset or operational unit, or an expansion
or renovation to either. Equipment for this treatment should be budgeted and
charged to the capital project as equipment.
Costs incurred to keep a fixed asset in its normal operating condition that do not
extend the original useful life of the asset or increase the asset

s future service
potential are not capitalized. These costs are expensed as repairs or
maintenance.
Tax Treatment for Fixed Assets:
For any assets if purchased and used in production unit for work related with
production then credit of various applicable taxes will be taken thus any of the
taxes if any paid on it shall not be capitalized with the value of asset purchased in
Fixed Assets Register.
If assets are purchased for purpose other than to be used in production then
credit of various taxes paid on it are not available and thus for fixed asset register
value of fixed assets are taken after capitalizing various taxes paid on purchase
of such assets.




Proper Accounting of Capital Assets
The Fixed Asset Module requires periodic update (annual inventory) and
maintenance, including reconciliation to the general ledger, to remain
current and valuable.
To qualify as a capital asset, the item must meet the following
requirements:
It must be real property (no services, software, or publications)
The unit cost should be more than Threshold Limit.
It has a useful life of more than one year
It must be purchased for companys use
In some cases, multiple items can be grouped together as multi-
component asset, even though individually they would not qualify

8.Classifications of Capital Fixed Assets


Fixed Assets are grouped under various heads as listed below as per
companys financial statements:

1) Tangible Assets:

Land (Free-hold & Leasehold)
Building
Plant & Machinery
Furniture & Fixture
Office Equipments
Computers
Vehicles

2) Intangible Assets:

3) Capital Work in Progress (CWIP)

4) Intangible Assets under Development.


All Above fixed assets are segment-wise classified in company
account books as per units of company under head A-8, E-30, E-2,
etc

Fixed Assets
a) All fixed assets are stated at Gross Value less Accumulated Depreciation.
b) The purchase price and any other applicable costs attributable in bringing the
assets to their working condition for their intended use, including specific
financing costs till commencement of commercial operations attributable to the
fixed assets and all Overhead costs if directly attributable to the Fixed Asset are
capitalized to the cost of Fixed Asset.
c) Gains / losses on sale of fixed assets are credited to / charged to Profit and Loss
A/c.
d) Capital spares are treated as capital assets. Capital spares purchased prior to
commissioning of assets are capitalized along with the principal asset. Capital
spares purchased subsequent to commissioning are capitalized on purchase and
depreciated on the balance useful life of the principal asset to which it belongs.
e) In case of commissioned asset where final settlement of bills with contractors is
yet to be affected, capitalization is made on provisional basis subject to
necessary adjustment in the year of the final settlement
f) Intangible Assets are recorded at their cost of acquisition


9.FIXED ASSET DISCRIPTION :
1. Capital Work-In-Progress
a) In respect of supply-cum erection contracts, the value of supplies received at site and
accepted is treated as capital work-in-progress.
b) Incidental expenditure prior to construction & related to it preliminary project
expenditure on identification, survey / feasibility studies of project, etc. is apportioned to
capital work-in-progress on basis of accretion thereto. These expenses however are
charged to Profit & Loss Account if project is abandoned.

c) Corporate Office expenses, expenses of divisions / offices catering etc as well as
capital works are charged as period costs in the financial year to which they pertain.
d) Expenses incurred by construction divisions/subdivisions are capitalized and
accounted as cost of capital assets

2. Tangible Fixed Assets :
Equipment consists of property that does not lose its identity when removed from its
location and is not changed materially or expended in use. Subclasses in this account
include computer equipment, audio visual equipment, office equipment, athletic
equipment, recreational equipment, lab and research equipment, appliances, medical
equipment, food service equipment, buildings and ground equipment, heavy equipment,
musical instruments, furniture, and fixtures.
1) Moveable Equipment is not permanently affixed to or part of a building. Some
moveable equipment consists of more than one component (e.g., a computer,
keyboard, mouse, and monitor). The assembled components may be considered one
item and be recorded as a single capital asset. Component items that form one working
equipment system are combined for capitalization purposes. The

system

definition
applies to computer configurations, AV equipment and scientific equipment. Additions to
equipment that become either component parts or permanently connected to existing
equipment items are also defined as equipment and should be capitalized, regardless of
cost.
2) Fixed Equipment is permanently affixed to a building but is separate from the
building itself. Examples of fixed equipment are light fixtures, wall to wall carpeting,
water fountains, fire control apparatus, fume hoods, auditorium and, and built-in display
cabinets.
Equipment Purchased During New Construction / Renovations The
equipment must be non-expendable, tangible personal property having an economic
useful life of more than one year. During the normal course of business, these items
would be expensed solely because they did not meet the Company

s. threshold limit.
The only exception allowable is for the capitalization of low cost equipment for the initial
outfitting of a tangible capital asset or operational unit, or an expansion or renovation to
either. Equipment for this treatment should be budgeted and charged on the capital
project as movable equipment. Movable equipment capitalized as part of a major new

construction renovation or renovation project shall be recorded in the Fixed Asset ERP
Module as one asset for each major moveable equipment class with the appropriate
useful life assigned.
Free-hold Land is the solid part of the earth
'
s surface whether improved or
unimproved. The land account should include all land purchased, or otherwise acquired
by the company. Purchased land should be carried on the records at cost.
Land Improvements include excavation, fill and grading, removal, relocation, or
reconstruction of property of others such as railroads, and telephone and power lines,
and the construction of retaining walls.
Leasehold land are improvements to land leased to the Company are capitalized if
they meet capitalization standards applicable to such improvements on Company-
owned property
Buildings are roofed structures used for the permanent or temporary shelter of
persons, animals, plants, or equipment. The buildings account includes the value of all
buildings at purchase price or construction cost by factory location. When buildings are
constructed, all identifiable direct costs are included in the valuation. Direct costs
include labor, material, and professional services to construct the building, together with
insurance, interest and other costs incurred during the period of construction to ready
the building for its intended use.
Unless stated reference to building will include office building only.
Factory Building :It is the roofed permanent or temporary structure were production
or manufacturing activities of company is carried out with the help of raw material,
labour and aid of power and will include any activity carried out which in general
parlance indicate it as factory building
Building Improvements are improvements made to existing buildings. Any
renovation or alteration to an existing building that adds useful space to the structure or
extends the facility

s useful life will be considered a capital asset. Conversely,


improvements that do not add useful space to the structure, or extend the facility

s
useful life will be considered maintenance and repair
Computer & Software consists of long-lived capital assets that normally are
technological in nature and are the basis of the Company

s information/connectivity

infrastructure. Technology equipment includes all hardware, software, and cabling
associated with Company-wide systems.
Furniture & Fixture consists of capital asset that may be movable or immovable
and includes assets such as cupboard, chair, wooden partitions, doors ,windows etc
whether made up of wood or steel or other metal or with partial use of any or all of them.
Vehicles consist of movable capital assets used in transportation or for transportation
or any other purpose. It includes all sort of vehicles as per common parlance of the
state.
Plant & Machinery : IT consist of plant, machinery and spares attached with it to
make them workable or usable plant and machinery includes plants and machine
imported for carrying out production activity as well as any P&M produced or
manufactured within unit or factory of the company
Capitalization of Plant & Machinery From Inventory :

Plant & Machinery initial produced for selling and considered as part of
inventory, but later on decided to be used for internal use of the company
shall be capitalized in the year when its so decided after it becomes
finished goods and should be capitalized at cost.


Intangible Fixed Assets will consist of intangible assets such as patent,
trademarks, industrial designs, copyrights, transferable development rights ,goodwill (if
paid in cash)

Goodwill should be recorded in the books only when some consideration in money or
moneys worth has been paid for it. Whenever a business is acquired for a price
(payable in cash or in shares or otherwise) which is in excess of the value of the net
assets of the business taken over, the excess should be termed as goodwill.





Valuation of Capitalized Equipment
The valuation of equipment, whether purchased or fabricated, is based on unit cost. The
total unit cost is determined by the sum of:
1) the cash disbursed (purchase price less applicable discounts plus applicable
transportation and installation charges) for each unit;
2) the net book value of any assets given in exchange; and
3) the present value of any liability incurred.

If the equipment is acquired by gift, the valuation is the fair market value at the date of
the gift, if determinable. Otherwise, an appraised value is used. If acquired by loan
(usually from a grant or bank loan), the value assigned to the equipment by the bank will
be used.

Capitalization of Software
Internal Use Software - For software to be considered for internal use, the
software must meet the following tests - it must be acquired, internally developed or
modified solely to meet the company

s internal needs, and during the software

s
development or modification, the company must not have a substantive plan to market
the software externally to other organizations.
Capitalization of Software Costs - Software implementation generally
involves three phases. These phases and their characteristics are as
follows:
Preliminary project phase Stage when conceptual formulation of
alternatives, the evaluation of alternatives, the determination that the technology
needed to achieve performance requirements exists, and the final selection from
among the alternatives is made.

Application development/implementation phase - Design of chosen
path including software configuration and software interfaces, coding, installation

of computer hardware, testing, including parallel processing phase, employee
and consultant travel expenses and consultant fees.
Post-implementation/operation phase - training and application
maintenance activities incurred after phase two is complete.
Costs associated with the preliminary project and the post-implementation/operating
phases should be expensed as incurred. Internal and external costs associated with the
application development phase should be capitalized. Costs to develop or obtain
software that allows for access or conversion of old data by new information systems
should also be capitalized. General and administrative costs and overhead expenditures
associated with software development should not be capitalized as costs of internal use
software. Training costs are not internal-use software development costs and, if
incurred during this stage, should be expensed as incurred.
Capitalization of costs begin when the preliminary project phase is
complete and the company

s management has implicitly or explicitly authorized or


commits to funding the software project with the intent it will be completed and used to
perform its planned functions.
Capitalization ceases no later than the time at which substantial
testing is complete and the software is ready for its intended purpose or rendered
in service.
Upgrades and Enhancements - In order for costs of specified upgrades and
enhancements to internal-use computer software to be capitalized, it must be probable
that those expenditures will result in additional functionality -- that is, modifications to
enable the software to perform tasks that it was previously incapable of performing.
Upgrades and enhancements normally require new software specifications and may
also require a change to all or part of the existing software specifications.
Construction-In-Progress (CWIP) CWIP is the cost of buildings or other
capital projects that are under construction as of the balance sheet date. CWIP
represents a temporary capitalization of labor, materials, and equipment of a
construction project. When the constructed asset is substantially complete, costs in the
CWIP account are classified to one or more of the major asset categories and
corresponding reductions must be made to the CWIP account



Acquisition of Fixed Assets:
For Acquisition of Fixed Assets quotations from at least 3 suppliers
shall be taken and from them best quotation as per companys need
shall be selected
The acquisition of Fixed Assets starts with the creation of the capital p.o. All orders for
fixed assets must be submitted to the Admin/Purchasing Department via ERP system
through an online requisition. A capital p.o number can only by obtained by submitting
an online requisition.
If any fixed asset is purchased in cash then it must be capitalized with the help of
invoice only.
E.g. For purchase of computer each component of computer should be itemized
against the price of the same and not to be shown as one component with
aggregate price of all components.
Care should be taken in generating capital p.o as compare to revenue p.o, as in
capital p.o with item group f.a code is to be selected after checking proper F.A
code with Fixed Assets coordinator.
Purchases are subject to fund availability and budget limitations.
Special requirements do exist for certain types of movable equipment. For example,
furniture purchases must conform to the standards developed by Purchasing and the
Office of Interior Design. Additionally, Computer IT equipment purchases must be
approved by IT Dept.
The items ordered using the ERP system are charged by the department to the
appropriate capital expense code, which are listed below (Refer Capital Expense
Codes). This capital expense code is tied to an asset code that automatically records
the purchase as a Fixed asset.

All other purchases of equipment, that do not meet the capitalization threshold or do not
have a useful life greater than one year, are expensed in the year of purchase and
should be charged to the departments supplies expense line.


When the item is received and the invoice is sent to Accounts Payable for processing,
the capital expense code used to record the purchase in ERP Module automatically
generates an entry in the ERP Fixed Asset Module tagging the purchase as a potential
capital asset. The invoice sent to Accounts Payable should clearly indicate the Capital
p.o number it is attached to, particularly for items that arrive in various stages with
separate invoices. The Fixed Asset Coordinator- reviews the new tags created in the
ERP Fixed Asset Module and determines if the purchase should be capitalized as an
asset.

10.Capital Expense Codes
The acquiring department is responsible for assigning the appropriate Company
account number when making capital purchases. Individuals should be certain to use
the correct account number in all circumstances. The capital expense codes tied to
asset codes are:
Fixed asset group Name Number sequence
C&S Common Computer &
Software
Comp
EF Common Electrical Fittings EF
EF_NYT New York Tower Electrical Fitt EF_NYT
F&F Common Furniture & Fixtures F&F
F&F_Med Medical Furniture & Fixtures F&F_ Med
F&F_MUMB Mumbai Furniture & Fixtures F&F_MUMB
F&F_NYT New YOrk Tower Furniture &
Fix
F&F_NYT
F&F_RF RF Furniture & Fixtures F&F_RF
FB Common Factory Building FB
FB_MED Medical Factory Building FB_MED
FB_TDB TDB Factory Building FB_TDB
FHL Common Freehold Land FHL
INT Common Intangible Assets INT
INT_MED Medical Intangible Assets INT_MED
INT_TDB TDB Intangible Assets INT_TDB
LHL Leasehold Land LHL
LHL_TDB TDB Leasehold Land LHL_TDB
OB_MUMB Mumbai Office Building OB_MUMB
OB_NYT New York Tower Office
Building
OB_NYT



Depreciation Policy (As per Applicable ACT):
Depreciation is the allocation of the total acquisition cost of a fixed asset
over its estimated useful life.

Land, certain land improvements, construction-in-progress, inexhaustible
works of art, historical treasures and similar assets are not depreciated.
Land is considered to have an unlimited useful life and its salvage value
is unlikely to be less than its acquisition cost. Certain land improvements
may be considered to have an unlimited useful life and therefore are not
to be depreciated.


Intangible assets are depreciated on basis of its estimated life or usage
for which management should make necessary estimates regarding it

Eg .Patent right acquired for 10yrs will be amortized over 10yrs from date
of acquisition


OE Common Office Equipments OE
OE_MED Medical Office Equipments OE_MED
OE_MUMB Mumbai Office Equipments OE_MUMB
OE_NYT New York Tower Office
Equipment
OE_NYT
OE_RF RF Office Equipments OE_RF
P&M Common Plant & Machinery P&M
P&M_Med Medical Plant & Machinery P&M_ Med
P&M_RF RF Plant & Machinery P&M_RF
P&M_SOL Solar Plant & Machinery P&M_SOL
P&M_TDB TDB Plant & Machinery P&M_TDB
Veh Vehicle Veh

Depreciation of fixed assets is computed on a straight-line basis over
their estimated useful lives (capitalized cost divided by useful life) as
follows:

SR.NO NATURE OF ASSETS USEFUL LIFE
(IN YEARS)
1 BUILDING [NESD]*
A BUILDING (OTHER THAN FACTORY BUILDING) RCC FRAME STRUCTURE 60
B BUILDING (OTHER THAN FACTORY BUILDING) OTHER THAN RCC FRAME
STRUCTURE [NESD]
30
c. FACTORY BUILDING DO
2 PLANT & MACHINERY
(I) GENERAL RATE APPLICABLE TO PLANT AND
MACHINERY NOT COVERED UNDER SPECIAL
PLANT AND MACHINERY
(A) PLANT & MACHINERY OTHER THAN CONTINUOUS PROCESS PLANT NOT
COVERED UNDER SPECIFIC INDUSTRIES
15
(II) PLANT AND MACHINERY USED IN MEDICAL AND
SURGICAL OPERATIONS [NESD]
A ELECTRICAL MACHINERY,X-RAY, AND ELECTROTHERAPEUTIC
APPARATUS AND ACCESSORIES THERETO,MEDICAL,DIAGNOSTIC
EQUIPMENTS,NAMELY CAT-SCAN,ULTRASOUND MACHINES,ECG
MONITORS ETC
13
B OTHER EQUIPMENTS 15
(III) PLANT AND MACHINERY USED IN MANUFACTURING OF
PHARMACEUTICALS AND CHEMICALS [NESD]
20
A DISTILLATION COLUMNS DO
B DRYING EQUIPMENTS,CENTRIFUGES,AND DECANTERS DO
C VESSEL/STORAGE TANKS DO
3 FURNITURE AND FITTINGS [NESD]
A GENERAL FURNITURE AND FITTINGS 10
4 MOTOR VEHICLES [NESD]
A MOTOR CYCLES,SCOOTERS AND OTHER MOPEDS 10

*NESD NO EXTRA SHIFT DEPRECIATION
Physical Inventory of Equipment
The Fixed Asset Coordinator will provide Department Heads with a listing
of all reportable property by departmental area in every year. Using the
listing of reportable property as a basis, a joint inventory will be conducted
by the Department Head and the Fixed Asset Coordinator. In addition, a
physical inventory will be conducted Annually with a rotation to reach each
unit (i.e.,E-30,E-2,A-8 ETC) in every year. Advance notice will be given to
individual departments regarding specific dates. The purpose of a physical
inventory is to verify the existence and condition of equipment and ensure
the accuracy of company accounting records.
Discrepancies will be noted and investigated by the Fixed Asset
Coordinator. The results of the inventory, including unresolved
discrepancies, will be reported to the Controller.
Lost or stolen property must be reported as soon as the loss or theft is
known. In the case of known or suspected theft, The Fixed Asset
B MOTOR BUSES,MOTOR LORRIES,MOTOR CARS,OTHER THAN THOSE
USED IN A BUSINESS OF RUNNING THEM ON HIRE
8
5 OFFICE EQUIPMENTS [NESD] 5
6 COMPUTERS AND DATA PROCESSING UNITS [NESD]
A SERVERS AND NETWORKS 6
B END USER DEVICES,SUCH AS DESKTOP,LAPTOPS ETC. 3
7 LABORATORY EQUIPMENTS [NESD]
A GENERAL LABORATORY EQUIPMENTS 10
8 ELECTRICAL INSTALLATIONS AND EQUIPMENTS [NESD] 10

Coordinator and the Department Head must send a written report to the
Controller and notify Unit Security.
Disposition of Assets Movable Equipment
The Fixed Asset Coordinator is responsible for changing the status of
records when the disposition of assets occurs. In general, surplus or
obsolete equipment may be disposed of by transferring to another
department, discarding/scrapping, trading-in, donating, or selling the asset.
When selling, donating, or disposing of assets, the department responsible
for the asset must complete the Fixed Assets Transfer Form. This form
should be dated and signed by H.O.D of Related Department and sent to
the Fixed Asset Coordinator. The H.O.D of Related Department will provide
the approvals necessary to proceed with the disposition of the asset, if
necessary.
Certain disposals require special authorization. For example, employees
are allowed to purchase equipment, once the department has received
prior approval of the sale of companys property from The Fixed Asset
Coordinator and Controller. The purchase price must be the greater of the
fair market value or the net book value. The department must complete the
Fixed Assets Tranfer Form and follow the procedures stated above.
Movement of Assets Movable Equipment
In the event an asset is to be moved from one location to another or from
one department to another a Fixed Assets Tranfer Form must be
completed and submitted to the Fixed Asset Coordinator. Under no
circumstances should any company owned property be moved without prior
consent.
Once the form has been received by The Fixed Asset Coordinator the
Fixed Asset Module will be updated with the change. Submitting this form
will ensure that inventory listings provided to the Departments are accurate.


For proper implementation of Fixed Asset policy, S.O.P for Fixed Assets is
made which should be referred for proper implementation of Fixed Asset
policy

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