An organization, whether it is in the primary sector, secondary sector or the tertiary sector would use fixed assets or non-current assets. Fixed assets can vary from buildings and premises to cars or the equipment used. Whatever the case proper management of fixed assets is needed. By this we mean providing proper depreciation, spending on maintenance and repair as well as adjusting the accounts clearly and accurately to show the changes in fixed assets. This project looks at the procedures involved in acquiring fixed assets and the disposal of fixed.
In order to do this meetings are held frequently to assess the problems/issues that arise. Transparency All company policies are published. Anyone can get an insight of DEM’s production process. The method of distribution of companies income is also available for all to see. Quality & Design DEM uses organic fabric of high quality. Also the company hires numerous famous designers to design their clothes.
The following is small review of the extensive production process of DEM. The cotton is grown and harvested in Gujarat, from here it’s transported to Chennai where- it’s spun, and then the cloth is woven and dyed here. Finally this is transported to Sri-Lanka where the fabric is transformed into high quality organic clothing.Above is a clearly mentioned diagram explaining the organization structure of DEM collective Lanka. Since the diagram speaks for its self there’s no need for further explanation.
Those assets which are held with the intention of being used for production purposes and not for the purpose of sale in normal course of business are called Fixed Assets (Gupta, 2005:274). The following are the different types of Fixed/Noncurrent assets used by the firm: Sewing Machines and Other Machines- Since DEM is a manufacturing firm it requires to have ample machines which are up to date to produce high quality goods. Computers and Printers- DEM needs computers for manufacturing purposes, since the product designs are sent via Email from the Sweden H. Q. Computers also have other administrative and accounting purposes.
Furniture and Fittings- It includes all the tables, chairs, fittings etc… in the office/working area. Storage cabinets also fall in this category. Telephone and Fax machine- DEM Lanka needs to report about the working process, shortcomings etc… to the H. Q. They also receive information/orders from Sweden which is to be carried out. Electrical Equipments- Includes all those gadgets which facilitate the smooth functioning of the organization like lightings, fans etc. Factory Equipment- This includes items like conveyor belts, vehicles etc… used for purposes like vehicles used to transport raw-materials.