Regulation 49 — Approval of capital expenditure and disposal of assets by the board. – For the

purpose of clause (i) of sub-section (2) of section 183 of the Act:

(a) in case of a public interest company and a large sized company, the amount of capital
expenditure to be incurred on any single item shall be more than twenty-five million
rupees; and the amount of book value for the disposal of a fixed asset shall be more
than five million rupees or one percent of the total assets of the company, whichever
is lower; and

(b) in case of a medium sized and a small sized company, the amount of capital
expenditure to be incurred on any single item shall be more than five mill ion rupees
and the amount of book value for the disposal of a fixed asset shall be more than one
million rupees or one percent of the total assets of the company, whichever is lower.

Provided that any amount of an expenditure or disposal not exceeding th e aforesaid
limits as provided in clause (a) and (b), may be approved by a committee constituted
by the board comprising at least one director; and the Committee shall submit to the
Board on bi-annually basis a post facto report for information; and
(c) the board shall have the power to approve the capital expenditure or disposal of fixed
assets as provided in clause (a) and (b) above irrespective of limits as specified above.

(d) any capital expenditure to be incurred on land and building irrespective of the amount,
or disposal thereof, may be made only with the approval of the board subject to
provisions of sub-section (3) of section 183 of the Act