BIG Bet Capital Budgeting

Scope:- This procedure will apply capex more then Rs. 5 lakhs.

Procedure to be followed: -
1-When any department/User identifies any need of capex. He will submit the same to his
department head.

2- Department head will do the requirement analysis and determine whether it is a new
requirement or a replacement.

3-After requirement analysis department head will check the availability of the budget. If
required budget is not available then he will take the necessary approval of the budget as per
company policy.

4- After ensuring the budget availability he shall prepare the capex form in which he will
include Brief description and justification of capex and future benefits of the same and
Timeline of capitalization of the assets

5- Department owner shall submit the detail to the manufacturing head for his acceptance.

6- Once manufacturing head will give his preliminary acceptance then the proposal shall be
submitted to the finance department for capital budgeting procedures.

7-Finance department & user jointly assess the proposal on the basis of various capital
budgeting techniques.

8- Finance department will submit his working to the concerned department for the further
action.

9- Once decision of the procurement of the assets will be taken. Finance department will
maintain the tracker of the future benefits.

10- Same shall be shared periodically to the management.

Exclusions :- This procedure will not apply where capex is required by any law for the time being
in force.