Final_Asset Accounting Procedure

8/11/2019 Final_Asset Accounting Procedure

1/38

Asset Accounting Procedure Manual (I)

Bajaj Energy Private Limited 1

Bajaj Energy Private Limited

MODULE ! (I)

A""E# A$$OU%#I%& P'O$EDU'EMA%UAL


2/38


3/38


!+,+1 $lassi.cation o ./ed assets

2.9.1.1 Fixed assets should be classifed in the ollowing categories:

i) Land Freehold and leasehold

ii) Buildings Factory Building and ther than Factory Buildingiii) !lant " #achinery

i$) %ailway &idings " Light %ailways

$) 'eighbridge

$i) Furniture " Fixture

$ii)(ce *ui+,ent

$iii) -o,+uter ardware

ix) #otor -ar/ Light 0ehicle " ea$y 0ehicle

x) ir -rat

xii) ntangible ssets

!+,+! $omonents o cost o an asset

2.9.2.1 3he cost o an ite, o fxed asset should co,+rise o its +urchase4contract +rice/ including i,+ort duties and other non5reundable taxes orle$ies and any directly attributable cost o bringing the asset to its wor6ing

condition or or its intended use. 3rade discounts and rebates/ i any/ shouldbe deducted in arri$ing at the +urchase +rice. 7irectly attributable costsinclude the ollowing ite,s:

i) &ite +re+aration

ii) nitial deli$ery and handling costs

iii) nstallation costs/ such as s+ecial oundations or +lant

i$) !roessional ees 8ees to architects/ engineers/ etc.)

Bajaj Energy Private Limited -


4/38


!+,+- Determination o cost o an asset under certain circumstances

Assets ac


5/38


2.9..9 n circu,stances where the syste,5wise brea65u+ o the contract $alue isnot a$ailable/ the total cost is to be a++ortioned to the $arious syste,s onthe basis o technical esti,ates 6ee+ing in $iew the +ro


6/38


2.9.. n case a +ro


7/38


8/38


!+,+3 Dereciation

2.9.=.1 7e+reciation should be +ro$ided or in the boo6s at the rates as+rescribed.

2.9.=.2 n addition to the abo$e/ de+reciation should also be co,+uted at therates +rescribed in the -o,+anies ct/ 19;= or the +ur+oses o disclosurein the fnancial state,ents and as +er the nco,e5tax ct/ 19=1or the+ur+oses o taxation.

Ot8er olicies

2.9.=. 7e+reciation on assets ac*uired during the year is to be +ro$ided on a+ro+ortionate basis

2.9.=. o de+reciation is to be +ro$ided on the assets ro, the date o sold4scra++ed4 declared obsolete during the year.

2.9.=.; 7e+reciation on the additions to fxed assets in the nature o eEect ooreign exchange Guctuations and rotational4 ca+ital s+ares4 unit asse,blies

is to be +ro$ided +ros+ecti$ely o$er the residual lie deter,ined on the basiso the rate o de+reciation.



9/38


2.9.=.= 7e+reciation on the fxed assets during the construction +hase is to beca+itali?ed.

'etirement and disosal o assets

2.9.=.> te,s o fxed assets that ha$e been retired ro, acti$e use and are heldor dis+osal should be stated in the fnancial state,ents at the lower o theirnet boo6 $alue and net reali?able $alue. ny ex+ected loss should berecogni?ed i,,ediately in the +roft and loss state,ent.

2.9.=.@ Fixed assets dis+osed oE should be re,o$ed ro, the fnancialstate,ents. 3he gains or losses arising on the dis+osal are to be recogni?edin the +roft and loss account.

&overnment &rants

2.9.=.9 ny grants recei$ed ro, the go$ern,ent should be initially treated as-a+ital %eser$e and subse*uently ad


10/38


2.9.=.1 Aross and net boo6 $alue o fxed assets at the beginning and end othe accounting +eriod showing additions/ deletions and other ,o$e,ents oassets.

2.9.=.1; x+enditure incurred on account o fxed assets in the course oconstruction or ac*uisition

2.9.=.1= 3he a,ount o exchange diEerences ad 3he accounting +olicy ado+ted or go$ern,ent grants.

2.9.=.1@ 3he nature and extent o go$ern,ent grants recogni?ed in thefnancial state,ents/ including grants o non5,onetary assets gi$en at aconcessional rate or ree o cost.

2.9.=.19 3he total de+reciation or each class o assets and the relatedaccu,ulated de+reciation.

2.9.=.2 3he de+reciation ,ethods used and the de+reciation rates or the

useul li$es o the assets/ i they are diEerent ro, the +rinci+al ratess+ecifed in the statute go$erning the enter+rise

2.9.=.21 ny change in the ,ethod o de+reciation ado+ted.

!+17 Estalis8ment o Asset $ontrol aut8orities

For exercising control o$er the assets an asset control authority is to beestablished or each category o assets.

!+17+1 #8e asset control aut8orities or t8e various categories o assets*

i) Land and Buildings5 % de+art,ent

ii) Furniture and fxtures/ o(ce e*ui+,ent/ etc5 % de+art,ent

iii) !lant and ,achinery 5 3echnical de+art,ents concerned

i$) Laboratory " 'or6sho+ e*ui+,ent5 7e+art,ents concerned

$) 0ehicles5 utobase

$i) -onstruction e*ui+,ent5 utobase4 3echnical de+art,ent concerned.

$ii)-o,,unication e*ui+,ent5 7!

$iii) -o,+uters5 7!4 % de+art,ent.

ix) os+ital e*ui+,ent5 -#



11/38


x) Auest house4 co,,unity centre4 canteen4 school e*ui+,ent %de+art,ent

xi) 7iscarded assets5 &tores

xii)#o$e,ent o any asset should be eEected with the a++ro$als o theasset control authorities concerned.

2.1.1.1 3he asset control authorities should ensure the ollowing:

i) 3he asset identifcation nu,ber is +ainted4 indicated on all assets.

ii) ny ,o$e,ent/ obsolescence/ da,age/ loss due to thet/ fre or anyother reason/ sale or dis+osal o an asset 8within and outside the+re,ises o the Cnit)/ are on the basis o duly a++ro$ed orders.

iii) 3he ,o$e,ent/ obsolescence/ da,age/ sale or dis+osal o an asset isinti,ated to the F" 7e+tt to u+date the F%.

i$) 3he diEerences obser$ed/ i any/ on +hysical $erifcation o assets arereconciled with the user de+art,ent concerned.

!+11 Allotting Asset Identi.cation %umer

3his +rocess outlines the +rocedure to be ollowed or allotting an assetidentifcation nu,ber 8) to ,o$eable assets4 #B ite,s. 3he should berecorded in the F%.

!+11+1 structure

2.11.1.1 3he should be a se$enteen digit al+ha5nu,eric code re+resenting

the ollowing:

Accounting Unit #ye o assets Asst$ontrolAut8orit

y

?ear oAc


12/38


2.11.1.2 n recei+t o #B ite,s/ the asset control authorities 8-s) shouldensure that is allotted to all the in$oiced ite,s and the sa,e isindicated on the &%0. Finance should release +ay,ents or such ite,s onlyater ensuring that has been allotted.

2.11.1. 3he asset control authorities should ensure the ollowing:

i) 3he is +ainted4 indicated on all assets.

ii) de+art,ental asset control register is ,aintained and the details oeach asset are entered in the register indicating the location and thena,e o the +erson to who, the asset has been issued.

iii) n case o any ,o$e,ent o an asset/ the de+art,ent asset registeris u+dated or change in location or any other change.

2.11.1. Allocation o AI%

"+%o

Activity Person'esonsile

;re


13/38


!+1! $aitalisation o assets

3his +rocess lays down the +rocedure to be ollowed or ca+italisation o assets8other than or bought out assets which has been co$ered in +rocess o: ;)

Bajaj Energy Private Limited 1-


14/38


!+1!+1 $aitalisation

2.12.1.1 3ownshi+ and other inrastructural acilities are to be ca+italised asand when co,+leted and +ut into ser$ice. 3he assets associated withgenerating units are to be ca+italised as and when the generating unitsbeco,e co,,ercially o+erati$e. 3he criteria or deter,ination o date o

-o,,ercial +eration are brought out at ++endix .

2.12.1.2 3he fxed asset heads against which ca+italisations are to be eEectedha$e a corres+onding -a+ital 'or65in5!rogress ccount code as detailed inthe -hart o accounts. 3he ,odus o+erandi and se*uence or ca+italisationare set out below:5

"teI* Identiy asset>acage cost

2.12.1. For constructed assets all direct costs associated with a +articular+ac6age4


15/38


iii) 3he taxes " duties and +rice ad


16/38


2.12.1.12 n case the +ro


17/38


2.12.1.1> 3here are also co,,on syste,s/ which are either in the nature oassociated ci$il wor6s or e*ui+,ent/ which or,s an integral +art o syste,sor +ur+ose o classifcation o assets and de+reciation. 3he ob$iousexa,+les are +iling and oundation/ which are +artly in the nature oassociated ci$il wor6s or &A/ 3A etc.and +artly in the nature o oundationor su+erstructure o buildings. &i,ilarly/ station +i+ing/ control and +owercables are also to be identifed with other o+erating units or syste,s or the+ur+ose o classifcation o cost in fxed assets account. t is necessary toeEect direct identifcation o costs with indi$idual units or syste,s where$er+ossible and in other cases cost should be allocated on the basis otechnical esti,ate to be certifed by ngineer5in5charge.

2.12.1.1@ !lant and ,achinery su+erstructure should be ca+itali?ed as +lantalong with boiler or 3A or other e*ui+,ent with which such structure isassociated. ther structures/ which contain or house +lant and ,achinery/should be added to the cost o +lant buildings.

2.12.1.19 "teIII: nce the +ac6age5wise costs are fnalised then the sa,eshould be allocated to the generating units. nalyse the actual cost o the+ac6age as reGected in -'! account to identiy actual cost o:

i) ndi$idual generating units.

ii) &yste,s associated4co,,issioned exclusi$ely with a s+ecifcgenerating unit.

iii) -o,,on syste,s initially co,,issioned with the frst generatingunit/ which/ later on/ cater to ,ore than one generating unit. n thesecases/ there ,ay be ca+ital additions eEected ro, ti,e to ti,e tota6e care o additional re*uire,ents o generating units

co,,issioned subse*uently.

i$) data are not a$ailable or unit5wise identifcation o cost/ it ,ay bea++ro+riate to ado+t the ollowing ste+s or unit5wise analysis o$arious ele,ents o costs:

A+ Main E


18/38


i) *ui+,ent cost excluding escalation 8Basic -ost)

-a+itali?ation is to be eEected unit5wise +rorata on tonnage basis.

ii) rection charges excluding escalation: 3he +ay,ents or erectionwor6 are eEected in ,any cases on tonnage basis and in a ew casesby ,eans o stage +ay,ents. n this case also/ it is elt that unit5wiseanalysis ,ay be aEected +reerably on the basis o actuals. owe$er/i this course is not +racticable/ -a+itali?ation should be done on thebasis o erection +rice 8basic +rice) +er tonne unit as s+ecifed in thecontract.

iii) Freight/ nsurance and andling -harges: &ince the *uantu, o cost,ay not be substantial/ it ,ay not be +racticable to identiy the sa,eunit5wise withing the +ac6age/ this cost should be allocated +rorataon tonnage basis

i$) scalation costs and taxes and duties: 3hese costs as recorded in theca+ital wor65in5+rogress account4E


19/38


2.1.1.1 3he ex+enditure4inco,e o %egional Hs/ 3"-- (ces/ ins+ectiono(ces and ser$ice units li6e -&& #uradnagar should be absorbed and,erged in -or+orate -entre ex+enses. s ar as +ossible/ the totalex+enditure4inco,e at -or+orate -entre should be directly identifed withconstruction or re$enue acti$ities. For exa,+le/ generation incenti$eex+enditure and %"7 ex+enditure are not at all related to any constructionacti$ity and should be directly identifed with re$enue. &i,ilarly constructionincenti$e is directly related to construction o +ro


20/38


Accounting o IED$

2.1.1.; 3he +ortion o ex+enditure inco,e identifed or ca+italisation shouldbe debited to account head or 7- or the year by credit4debit to accountcodes or ex+enditure4 inco,e during construction. -are should be ta6enthat the gross ex+enditure or the year a++earing in the natural heads is not

disturbed so that the sa,e can be shown in its entirety in the !"L account.3he credit4 debit to ex+enditure4inco,e during construction should beshown as a deduction ro, the gross ex+enditure4inco,e or the +ortionidentifed or ca+itali?ation. 3he allocation to $arious -'! +ac6ages shouldbe routed through 7- allocated to -'! account.

Borro:ing costs

2.1.1.= Borrowing costs are interest and other costs incurred in connectionwith the borrowing and include the ollowing:

i) nterest

ii) -o,,it,ent charges/ ,anagerJs ee/ arrangerJs ee/ u+ront charges

etc.

2.1.1.> 'here a loan has been ta6en or construction4 ac*uisition o a s+ecifc+ro


21/38


2.1.1.9 xchange rate $ariation 8%0) arises as a result o settle,ent duringthe year4 translation at the end o the year at closing rates o therecei$ables4 +ayables in oreign currencies. 3he exchange rate $ariationrelating to ac*uisition o ca+ital assets should be ad


22/38


!+10 $aitalisation o oug8t out assets

3his +rocess lays down the +rocedure to be ollowed or ca+italisation o boughtout fxed assets.

!+10+1 $omonents o cost

2.1.1.1 3he assets should be ca+italised based on the ac*uisition +rice andthe other costs incurred or bringing the asset in a +osition that it is ready touse. t should be ensured that all the rele$ant costs ha$e been included inthe cost o the asset as +er the accounting +olicy. For instance/

2.1.1.2 3he cost or land includes the ollowing ele,ents:

i) !urchase +rice o land.ii) -o,+ensation or ac*uisition o land including structure/ cro+ and

tree.iii) Legal charges/ sta,+ duty/ etc. incurred or securing title.i$) -ost o ,easuring land/ in$estigating its titles/ land sur$eys/ land

ac*uisition unit ex+enses/ etc.

$) -osts o de,olition o unwanted structures.$i) ny de+osit4ad$ance or land in res+ect o which either +hysical

+ossession or legal ownershi+ has been obtained.$ii)%esettle,ent " %e5habilitation and -o,,unity de$elo+,ent

ex+enses directly related to ac*uisition o land.

2.1.1. -ost or building +urchased includes the ollowing ele,ents:

i) !urchase +riceii) Legal charges/ sta,+ duty/ etc. incurred or securing a title.iii) ny +ay,ents to tenants 8to cancel the tenancy rights) at the ti,e o

ac*uisition.

i$) %e+airs/ alterations and i,+ro$e,ents to +ut the building in usablecondition.

Bajaj Energy Private Limited !!


23/38


$) rchitects ees or re5,odelling/ alterations/ and i,+ro$e,entsbeore the building is frst +ut to use.

2.1.1. n case a building is +urchased along with the land at consolidated+rice/ the +urchase cost should be biurcated between the land andbuilding. n case the brea6u+ $alue is not readily a$ailable the cost should

be allocated to land and buildings based u+on technical and co,,erciala++raisal.

2.1.1.; s the rate o de+reciation on internal electrifcation o buildings isdiEerent ro, the rate o de+reciation on buildings/ the cost o internalelectrifcation o buildings should be accounted or segregated andaccounted or se+arately as urniture " fxtures inline with the co,+anyJsaccounting +olicy.

2.1.1.= -ost or other ,o$eable assets ac*uired includes the +urchase +riceand all other costs incurred or ,a6ing the asset ready or use 8e.g.trans+ortation costs/ installation/ etc.)

Provisional caitalisation2.1.1.> t the year5end/ in case assets ha$e been recei$ed but the su++lierJs

bills ha$e not been recei$ed then the asset should be +ro$isionallyca+italised on the basis o the +urchase order raised or the ite,/ and otherincidental ex+enditure on esti,ated basis.

2.1.1.@ ter recei+t and +rocessing o the su++lierJs bills the necessaryad


24/38


!+12 Dereciation Accounting

3his +rocess lays down the +rocedure to be ollowed in res+ect o de+reciation.7e+reciation should be co,+uted as +er the ollowing:

i) lectricity 8&u++ly) ct/ 19@ 5 or +ro$iding de+reciation in the boo6so account

ii) -o,+anies ct/ 19;= or disclosure in the boo6siii) nco,e tax ct/ 19=1 5 or inco,e tax +ur+osesi$) ny change in the rates4 ,ethod o co,+uting de+reciation is to be

inti,ated by -or+orate -entre to all the units.$) 7e+reciation is to be +ro$ided in the boo6s o account at *uarter

ends. 3he de+reciation as +ro$ided in the *uarter5end is to bere$ersed at the beginning o the next *uarter. 3he de+reciation orthe year shall be calculated at the year5end and +ro$ided or in theboo6s o account.

!+12+1 #8e asis or comuting dereciation under t8e various Acts*

Electricity ("uly) Act= 1,06

Bajaj Energy Private Limited !0


25/38


2.1;.1.1 7e+reciation is charged on the straight5line ,ethod to write oE 9Mo the cost o the asset as +er the rates +rescribed under the ct.

2.1;.1.2 n res+ect o the assets where the rates ha$e not been +rescribed/de+reciation is to be +ro$ided on straight line ,ethod at the corres+ondingrates as +ro$ided in the nco,e 3ax ct/ 19=1.

$omanies Act= 1,23

2.1;.1. 7e+reciation under the -o,+anies ct is +ro$ided on straight5line,ethod to write oE 9;M o the cost o the asset at the rates as +rescribed inthe ct.

2.1;.1. n res+ect o the extra shit allowance/ calculations are to be ,ade ordouble4tri+le shit wor6ing in the +ro+ortion in which the nu,ber o days inthe year or which the concerned asset actually wor6s double4tri+le shit/bears to the nu,ber o days or which the station actually wor6ed duringthe year or 2 days whiche$er is greater.

Income ta/ Act= 1,31

2.1;.1.; 7e+reciation is calculated on the di,inishing balance ,ethod as +erthe rates +rescribed in the ct.



26/38


Dereciation on seci.c items'enovated and moderni4ed assets

2.1;.1.= n case o ex+enditure incurred on %eno$ation and #odernisation8%"#) the ollowing treat,ent should be ollowed:

2.1;.1.> n case the %"# is li6ely to result in an increase in the lie o theasset/ the useul residual lie o the asset should be technically assessedand de+reciation should be charged +ros+ecti$ely at a rate so that 9M othe re$ised gross bloc6 is de+reciated o$er its re$ised useul lie. owe$er/ it,ust be ensured that the rate so deri$ed is not less than the statutory rateunder the & ct4 rate deri$ed ro, the 3 ct/ as ,ay be a++licable.

2.1;.1.@ n case the %"# ex+enditure results in an increase in the e(ciency othe asset without aEecting the useul lie o the asset/ then the de+reciationshould be charged on a +ros+ecti$e basis on the re$ised gross bloc6 o$erthe re,aining lie.

$aital sares

2.1;.1.9 #achinery s+ares which can be used only in connection with an ite,o fxed assets and whose use is ex+ected to be regular should beca+italised with the fxed asset concerned. 'here the ca+ital s+ares ha$ebeen +rocured subse*uent to the ca+italisation o the ,ain e*ui+,ent/ thecost o such s+ares should be a,ortised o$er the useul residual lie o therelated ,ain e*ui+,ent.

$onstruction e


27/38


Assets used during construction eriod

2.1;.1.1 7e+reciation should be charged in res+ect o assets used during theconstruction +eriod 8including construction e*ui+,ent) at the +rescribedrates.

2.1;.1.1 3he de+reciation charged during the construction +eriod would alsobe ca+italised as a +art o incidental ex+enditure during construction.



28/38


!+13 #ranser o Assets

!+13+1 Procedure to e ollo:ed or transer o assets+

2.1=.1.1 ssets o a unit ,ay be transerred within the unit or ,ay be

transerred to other units. 'here an asset is transerred within the unit/ the- should u+date the sset -ontrol %egister with the details o change inlocation4 +erson to who, the asset is issued. n recei+t o the re+airedasset/ F" de+art,ent should be inti,ated o the recei+t or u+dation othe F%.

2.1=.1.2 3ranser o an asset outside the unit ,ay ta6e +lace on account odes+atch to the wor6s o ,anuacturer or re+airs4rectifcation4re+lace,entor on account o inter unit transer on loan or +er,anent basis. 3ranser oan asset or re+air +ur+oses is recorded in the sset -ontrol %egister by wayo recording the change in location and inti,ation to F" de+art,ent.

2.1=.1. nter unit transer o an asset is aEected through sset 3ranser ote83) and it should be ensured that:

i) the transer o the asset is a++ro$ed by the co,+etent authority.ii) all asset transers are su++orted by an sset 3ranser ote 83).iii) the 3 is orwarded to the transeree unit along with an extract o

the F% o the asset transerred.i$) co+y o the 3 is orwarded to F" de+art,ent or u+dating the F%.$) de+reciation or the year is +ro$ided in the boo6s o the transeree

unit.$i) the assets transerred are disclosed by the transeror4 transeree

units in a se+arate colu,n 8i.e. 3ranser in4out) in the Fixed ssetschedule annexed to the Final accounts o the concerned unit to

acilitate reconciliation.

E/enses incurred on t8e dismantling and transer o asset

2.1=.1. 3he dis,antling charges/ as well as cost o ci$il wor6s and erectioncharge or the initial erection on the asset transerred should be written oEto the re$enue account by the transeror unit

2.1=.1.; 3he erection and trans+ortation charge incurred by the transereeunit should be ca+italised along with the cost o the asset.

Dereciation

2.1=.1.= 7e+reciation on the transerred asset should be +ro$ided on thebasis o +eriod o use or the whole year 8in which the asset has beentranserred) by the transeree unit irres+ecti$e o the +eriod or which suchasset was actually used by it.

Deartments> sections involved in t8e rocessi) Finance and ccounts de+art,entii) Boo6 sectioniii) sset control authorities



29/38


2.1=.1.> #ranser o Assets to ot8er units

"+%o

Activity Person'esonsile

;re


30/38


!+15 Disosal o Assets

!+15+1 Assets disosal rocedure

2.1>.1.1 ssets should be dis+osed oE only ater the necessary a++ro$als ha$e

been obtained ro, the co,+etent authority. 3he ,anner o dis+osal o anasset should be as +er the guidelines +rescribed in this res+ect.

2.1>.1.2 'here ,aterial ite,s ha$e retired ro, acti$e use and are held ordis+osal then such ite,s should be stated at the lower o their net boo6$alue and net reali?able $alue and shown se+arately in the fnancialstate,ents.

2.1>.1. ssets ,ay be dis+osed oE through auction4tendering/ draw o lotsa,ong e,+loyees/ sale to retired e,+loyees/ re+lace,ents through buybac6 sche,es etc. !re$alent guidelines as a++licable or each such ,ethodo dis+osal should be ollowed.

2.1>.1. n dis+osal o an asset F% should be u+dated.2.1>.1.; Accounting Entries*

i) On Disosal or cas8-ash4Ban6 7rccu,ulated de+reciation 7rLoss on dis+osal o fxed assets 7r!roft on dis+osal o fxed assets -rAross Bloc6 -r

ii) On disosal t8roug8 uy ac sc8emesAross Bloc6 8new asset) 7r

ccu,ulated de+reciation 8dis+osed asset) 7rLoss on dis+osal o fxed assets 7r!roft on dis+osal o fxed assets -rAross Bloc6 8dis+osed asset) -r-ash4Ban6 8net diEerence to be +aid) -r

Bajaj Energy Private Limited -7


31/38


!+16 Maintenance o ;i/ed Asset 'egister (;A')

!+16+1 #8e ;A' is to e maintained and udated y t8e ;9A Deartment+

[email protected] 3he F% should be ,aintained in a or,at to contain the inor,ation

as re*uired under the -o,+anies ct/ 19;=.

[email protected] 3he F% should be ,aintained asset category5wise and ite, wise.

[email protected]. 3he balances 8gross bloc6 and de+reciation) as a++earing in the F%should be reconciled on a *uarterly basis with the balances in the AeneralLedger.

[email protected]. 3he F% should be u+dated on:

i) ac*uisition4 co,,issioning o new assetii) transer o an asset based on sset 3ranser ote 83)iii) on retire,ent ro, acti$e usei$) dis+osal o the asset$) recei+t o the +hysical $erifcation re+ort



32/38


!+1, P8ysical veri.cation o ./ed assets

!+1,+1 #8e ./ed assets s8ould e 8ysically veri.ed eriodically

2.19.1.1 3he fxed assets should be +hysically $erifed +eriodically and the

discre+ancies noticed therein should be ad


33/38


sset -ontrol %egister.!re+are a re+ort on the discre+anciesobser$ed.Forward the +hysical $erifcationre+ort and discre+ancy re+ort duly

co,+leted to the Boo6s &ection. %ecei$e +hysical $erifcation re+ortand discre+ancy re+ort ro, -s.!re+are a consolidated state,ent othe discre+ancies on +hysical$erifcation.Forward the re+ort to the co,+etentauthority or a++ro$als or ad


34/38


3he criteria or declaring co,,ercial o+eration o a +lant or coal and gas basedunits is +ro$ided below:

$oal ased units

ll ,ain e*ui+,ent and auxiliary syste,s including uel oil +lant/ coal handling

+lant/ water treat,ent +lant/ ash dis+osal syste,/ #A% has been co,,issioned togi$e ade*uate ca+acity to o+erate the unit.ll saety ,easures including segregating units in o+eration ro, units inconstruction and fre +rotection syste, ha$e been +ut in to ser$ice.ll +er,anent electrical su++ly syste,s including e,ergency su++lies andinstru,entation/ control and +rotection syste,s or o+erating the unit ha$e been+ut into ser$ice.

3rial o+eration o the unit has been +eror,ed with the contractor and the trialo+eration re+ort has been 2 hours should be at ull load.

3he unit has been in o+eration or a +eriod o at least 1 hours gi$inggeneration o not less than 2; P'4P'4Qear and shall co$er the whole range oo+eration including ull load or a ,ini,u, +eriod o >2 hours.n case so,e ,a


35/38


3rial o+eration o the unit has been +eror,ed with the contractor and trialo+eration re+ort has been 2 hours shall be continuous o+eration in ull load.ter successul o+eration o trial o+eration/ a ti,e +eriod not ,ore than daysor gas turbine shall be granted to co,+lete the ,inor let o$er


36/38


N the +hysical existence o the assets

N assets are in use and in good wor6ing condition

= 0ehicles

nsure the +hysical existence o the $ehicles

-hec6 the registration boo6s o all the$ehicles or clean title.

> -a+italiseds+ares

nsure the +hysical existence

s+ares are in good wor6ing condition

@ -onstruction*ui+,ent


assets are in use and in good wor6ingcondition

9 -o,,unication*ui+,ent


assets are in use and in good wor6ing

condition

1 -o,+uters nsure the +hysical existence

assets are in use and in good wor6ingcondition

11 os+itale*ui+,ent



condition

12 3ownshi+4 guesthouse4co,,unitycentre4 canteen4schoole*ui+,ent



condition



37/38


Asset $ontrol 'egister A$A Cise

-ategory4 &ub5 -ategory&l.o.

&0%eerence

sset 7etails Location

!erson to who,issued

ssetreturndetails

o. 7ate

7escri+tion

&u++lier

,+loyee o.

a,e

;I@ED A""E# 'E&I"#E' LA%D

!articulers

Qear

&ur$eyno.

7ateoc*uisition -ost 8%s)

ddition to$alue

,ortisation %e,ar6s

niti

alde+osit

Le

galFees

&ur$e

yFees

thers

3ot

al

Qe

ar

,ou

nt8%s)

o

.oyearsolease

Qe

ar

,ount8%s)

'

708%s)



38/38


'eort on P8ysical eri.cation

-

7ate7etails o ssets

Huantity as +er 7iscre+ancy

F%%eerence

Location %e,ar6s

7escri+tion

F% !hysical$erifcation

s+erF%

s+er!.0

(cial carrying out the $erifcation8a,e " &ignature)

7ate o $erifcation

++ro$ed by:

Final_Asset Accounting Procedure

Documents

Transcript of Final_Asset Accounting Procedure