Capital work in Progress


Examples  of notes to accounts  relating to capital work in progress are given
below :


1.      Cost  of  Fixed  Assets  and  Capital  Work  in  Progress includes the
        following pre-operative expenses.

                                                31-3-______     31-3-______
                                                (Rs. Lacs)      (Rs. Lacs)

        Opening Stock of goods produced         ___________     ___________

        Salary and Taxes.                       ___________     ___________

        Contribution to Provident and other
        funds.                                  ___________     ___________                                         

        Rent (Net)                              ___________     ___________

        Rates and Taxes.                        ___________     ___________

        Insurance                               ___________     ___________

        Payment to Branch Auditors :

        - Audit Fees.                           ___________     ___________

        - Certification Work                    ___________     ___________

        Interest on Term Loans & Debentures.    ___________     ___________

        Interest on others                      ___________     ___________

        Miscellaneous Expenses                  ___________     ___________

        Depreciation                            ___________     ___________

        Raw Materials consumed                  ___________     ___________

        Power and Fuel                          ___________     ___________

        Excise Duty                             ___________     ___________

        Legal and Professional Fees             ___________     ___________

                Total                           ___________     ___________

        Less : Sale of Cement Manufacturing -
               during trail run                 ___________     ___________

        Closing Stock of Goods Purchased
        during trial run                        ___________     ___________

        Material Produced in Trial Run          ___________     ___________


2.      Capital  Work-in-Progress  includes Rs. _______ for Delhi Project, the
        details of which are as follows :

        (a)     Capital Work-in-Progress (after adjustment of Rs. ____________
                being  net increase due to  change in the  rate of exchange of
                the   rupee   and   payment  to  Auditors -  other   matters -
                consultancy services Rs. _________).

        (b)     Capital Goods in transit

        (c)     Advances for Capital Goods - Unsecured considered good.

        (d)     Stock of construction materials - value at cost

        (e)     Interest on Loans


3.      Addition  to  Fixed  Assets  and  Capital  Work  in  Progress  include
        expenditure on new industrial units as follows :

                                                Year ended      Years ended
                                                31-3-_____      31-3-______
                                                (Rs. Lacs)      (Rs. Lacs)


        (i)     Repairs to Buildings            ___________     ___________

        (ii)    Salaries & Wages                ___________     ___________

        (iii)   Contribution to Provident Fund  ___________     ___________

        (iv)    Employee Welfare Expenses       ___________     ___________

        (v)     Insurance                       ___________     ___________

        (vi)    Rent                            ___________     ___________

        (vii)   Rates & Taxes                   ___________     ___________

        (viii)  Miscellaneous Expenses          ___________     ___________

        (ix)    Interest                        ___________     ___________

                                                ---------------------------
                                Total           ___________     ___________

                                                ---------------------------


4.      Cost of  Capital  Work-in-Progress  include  pre-operative expenses of
        Rs. _________ lacs   consisting  of  Stores  &  Spare  Parts  consumed
        Rs. __________ lacs, Power & Water charges Rs. ________ lacs, Salaries
        Rs. _____________  lacks,  Contribution  to  Provident  &  other  Fund
        Rs. ________ lacs, employees Welfare expenses Rs. _________ lacs, Rent
        Rs. _____________lacs, Rates & Taxes Rs. ____________ lacs,  Insurance
        Rs. _________ lacs, and Miscellaneous expenses Rs. _________ lacs.

5.      Capital Work in Progress includes :

        Project Expenses pending Allocations as under :

        (i)     Salaries & Wages (Rs.       )

        (ii)    Contribution to Provident & Other Funds (Rs.      )

        (iii)   Staff Welfare Expenses (Rs.        )

        (iv)    Interest on Term Loan (Rs.         )

        (v)     Depreciation  (Rs.          )

        (vi)    Miscellaneous Expense   (Rs.          )


6.      As commercial production has not been commenced as at the date of this
        balance sheet at the Delhi  Plant, certain expenditure incurred by the
        company as detailed in Schedule ______ which canot be regarded as part
        of  the  incidental  cost  of  construction of buildings and plant and
        machinery, has been treated  as  deferred  revenue  expenditure. It is
        proposed that such expenditure will  be  written  off  to  the  future
        profit  or  loss  account  starting  from the year in which commercial
        production commences. These expenses have been identified as relatable
        to the work to be  undertaken  after  the company commences commercial
        production and includes certain expenses allocated to deferred revenue
        expenditure on the basis of estimates made by management.

7.      The Company started trial runs and trial production at its _____ Plant
        on _______ Commercial production has not been commenced as at the date
        of  Balance  Sheet. The expenditure incurred on the Project during the
        period from ________ to ________ has been included in Schedule _______
        `Pre-operative  and  Trial  Production  expenditure allocated to Fixed
        Assets and Capital  Work  in Progress'.  The  preoperative  and  trial
        production  expenditure  has  been  allocated  to Buildings, Plant and
        Machinery, Capital Work in Progress in the ratio of direct costs.

8.      Interest amounting to Rs. _____________  on  loans for capital work in
        progress has been capitalised during the year.

9.      Commitments against capital expenditure sanctioned by the Board  up to
        31st March, ______ in so far as they have not been provided for in the
        account amounted to Rs. _________.

10.     Capital work in progress includes the entire interest of Rs. _________
        lakhs (icluding Rs. __________ lakhs for the year) on deferred payment
        credits  availed  under  ICICI  re-discounting  scheme for purchase of
        machineries.


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