Procedure for verification of capex

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Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2015 Hello everyone,

Can anyone brief me regarding the procedure for verification of Capex in a company.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 March 2015 1) Check the sanction as per Capital Budget.

2) Check the Capital File, Invoice, Installation & Commissioning Certificate/Completion certificate for each capital item.

3) Also check the total Capex with this formula:

Capex= Addition to Fixed Assets + Movement in Capital Work In Progress + Movement in Capital Advance.

4) Capitalization entry should be supported by the Installation & Commissioning Certificate/Completion Certificate.

These are the basic steps followed in PSU's to verify Capex.

In case of any further query, please revert back.