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Revised CAPEX Policy Clean

The CAPEX Policy of Spacetime Management Pvt. Ltd. outlines the procedures for managing capital assets, including acquisition, maintenance, and disposal, ensuring compliance with financial standards and internal controls. It applies to all capital expenditures and includes guidelines for asset movement, maintenance, and accounting, with specific approval authorities based on expenditure thresholds. The policy mandates documentation retention for audits and assigns responsibilities across various roles within the organization.

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Rishabh Nagpal
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15 views3 pages

Revised CAPEX Policy Clean

The CAPEX Policy of Spacetime Management Pvt. Ltd. outlines the procedures for managing capital assets, including acquisition, maintenance, and disposal, ensuring compliance with financial standards and internal controls. It applies to all capital expenditures and includes guidelines for asset movement, maintenance, and accounting, with specific approval authorities based on expenditure thresholds. The policy mandates documentation retention for audits and assigns responsibilities across various roles within the organization.

Uploaded by

Rishabh Nagpal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CAPEX POLICY

Document No.: SMPL/CPX-SOP/CPX-001


Version: 01.0
Effective Date: [XX-04-2025]
Supersedes: N/A
Validity: 3 years ± 3 months from the effective date

Prepared By: Mr. Sanjay Bhargava – Account Head


Reviewed By: Mr. Mannu Bhatia – Director
Approved By: [Name & Signature – Director]
Audit Reference: Internal & External Audit Compliance

1. Purpose
This CAPEX Policy outlines the principles and procedures for the acquisition, movement,
maintenance, disposal, and accounting of capital assets. It ensures consistent asset lifecycle
management in compliance with applicable financial standards, internal controls, and audit
requirements.

2. Scope
This policy applies to all capital expenditure incurred by Spacetime Management Pvt. Ltd.
(SMPL), including fixed assets across all business units and locations.

3. Definitions
- Capital Expenditure (CAPEX): Expenditure incurred to acquire or upgrade physical assets.
- Fixed Assets Register (FAR): Official record maintained by the Finance Department for all
fixed assets.
- Custodian: The person accountable for a specific asset.
- Asset Tag: Unique ID assigned to each fixed asset for tracking and inventory control.

4. Policy Provisions

4.1 Asset Acquisition


All asset procurements must comply with SMPL's Procurement Policy. Procurement must
be initiated via a Purchase Requisition and processed through an approved PO. Assets must
be recorded in the FAR upon receipt.
4.2 Asset Movement (Transfers)
Movement of assets between locations must follow a formal approval process. The Asset
Transfer Form (Form-I) must be completed and approved as per value thresholds. Post-
approval, the Finance team will update the FAR.

4.3 Asset Maintenance


Regular maintenance follows schedules based on manufacturer guidelines, operational
needs, and company standards. Unexpected repairs must be reported to Finance and on the
official WhatsApp group using Form-III with cost justifications.

4.4 Asset Sale & Disposal


Initiated through Form-II with attached photos and reasons. Requires WhatsApp approval
and Director sign-off as per value thresholds. Finance updates the FAR post-disposal.

4.5 Asset Tagging


All new assets must be tagged with unique IDs indicating asset category, company initials,
location code, and serial number.

4.6 Physical Verification


Carried out semi-annually or annually. Discrepancies must be investigated and documented.

4.7 Asset Accounting


Assets above the capitalization threshold are capitalized. Depreciation follows accounting
standards. Impairment reviews must be done annually.

5. Governance and Controls


Approval Authority Table:
- Up to ₹5,000: Operation Head
- ₹5,001 – ₹50,000: Operation Head + WhatsApp Approval
- Above ₹50,000: Director

6. Documentation & Forms


- Form-I: Asset Movement Form
- Form-II: Asset Sale & Disposal Form
- Form-III: Asset Repair & Maintenance Form

7. Audit & Compliance


All asset-related transactions are subject to audit. Supporting documents must be retained
for at least 8 years. Non-compliance will attract disciplinary or financial penalties.
8. Responsibilities
Role-based Responsibility Table:
- Operation Head: Custodian approvals, initiating movement/disposal
- Finance Department: FAR maintenance, depreciation, reporting
- Site Personnel: Asset tagging, verification
- Director: Final approvals

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