KIRANA GROUP
SOP-FIN-007: Project and Capital Expenditure Approval Policy
Version 3.2 | Owner: Group Finance | Effective: 1 January 2026

1. PURPOSE
This SOP defines who must approve a project or capital expenditure (capex) before any purchase order is issued or any contract is signed. It applies to every Kirana Group company, office, and project site.

2. HOW TO MEASURE THE PROJECT VALUE
2.1 Use the total project value in US dollars (USD), including tax, contingency, and all phases. Do not split a project into smaller requests to stay under a limit.
2.2 Values in other currencies are converted at the Group Finance monthly rate.

3. APPROVAL MATRIX
Every approver in the chain must approve, in the order listed.
3.1 Up to USD 100,000: Department Head.
3.2 USD 100,001 to USD 1,000,000: Department Head, then Finance Controller.
3.3 USD 1,000,001 to USD 5,000,000: Group Risk Office review, then Regional Director, then Chief Financial Officer (CFO).
3.4 Above USD 5,000,000: Group Risk Office review, then CFO, then Chief Executive Officer (CEO), then the Board Investment Committee.
3.5 The Group Risk Office review is mandatory above USD 1,000,000 and must be completed before the request goes to the next approver.
3.6 The Board Investment Committee meets on the first Tuesday of every month. Requests must be submitted at least 10 business days before the meeting.

4. WHAT TO SUBMIT
4.1 Every request uses form KG-F12 (Capex Request) in the Procurement Portal.
4.2 Above USD 250,000: attach at least three vendor quotations.
4.3 Above USD 1,000,000: also attach a business case with the payback period and a risk register.

5. TIMELINES
5.1 Each approver has 5 business days to approve, reject, or ask for changes.
5.2 If an approver is absent, the delegate listed in the Delegation of Authority register may approve. Nobody may approve their own request.

6. EMERGENCIES
For safety emergencies on a project site, the Site Manager may commit up to USD 50,000 without prior approval. The request must be filed in form KG-F12 within 2 business days.

7. CONTACT
Questions about this SOP: Group Finance, finance-policy@kirana.example