Non capitalised plant and machinery by mc of the flat apartments association

The bylaws need to be scrutinized properly to render any opinion in this regard.

Thanks sir 

The Rules and Regulations of the Bylaws need to be verified for the form of an opinion.  So please consult a local lawyer.

Thank you sir 

Neither facts nor query is clear.

Let the Bye-laws of the society be perused by a local prudent lawyer for proper analyses of facts and professional advise.

I tend to agree with your Managing Committee. An apartments association or a co-operative housing society is not a business body. They are not required to calculate profit  or loss or cost of products or services. Generally only buildings are considered as capital items. Equipments and installations such as pumps and pumping systems, common electrical systems, elevators etc are not separately considered as capital items. The cost of replacement and repair of such items are met from Repairs and Maintence Fund of the Society. If the cost becomes too high additional funds will have to be collected from the members. Some costly equiment or system may be shown as capital in the balance sheet in order to keep an eye on them. When any costly equipment or system is lost due to theft or negligence it will become necessary to write them off. There will be rules and regulations to write-off such items. Co-operative housing societies in Maharashtra are required to maintain a Sinking Fund. It is supposed to be for the replacement of the buildings after their life. But cost escalations are so high it becomes meaningless to maintain the Sinking Fund. 

Thanks 🙏