1. Background:
Bhutan Livestock Development Corporation Limited (BLDCL) is a State-Owned Enterprise (SOE) and was established to work closely with Department of Livestock (DoL) towards the development of livestock sector in the country. BLDCL, basically, is a commercial arm of the Government in enhancing production and marketing of country’s livestock inputs and products in order to achieve Food Security & Sufficiency. BLDCL is mandated to increase the internal production of livestock inputs and products to help achieve food and nutrition security of the country and reduce imports. For this, BLDCL shall concentrate on the production from her own units as well as encourage farmers to enhance production through aggregation, value addition and marketing facilitations.
Being a commercial entity, the company is not only expected to be financially sustainable and fulfil its financial requirements but the company is required to keep books of accounts on (a) all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure takes place; (b) all sales and purchases of goods by the company; (c) the assets and liabilities of the company.
BLDCL was instituted with 92% of its equity in the form of Property, Plant and Equipment (PPE) to materialize the objectives of the company. However, with ever increasing automation and technology around the world, BLDCL may embrace investments in technologies to improve the efficiency and productivity underpinned with Good Manufacturing Practices (GMP). For these, BLDCL envisages to invest on inventory, spares and stocks.
However, automation and technologies have definite lifespans and as such, these assets or inventory shall become obsolete, damaged or lost at some point of time incurring losses to the company in economic value.
Thus, to avert such diminishing value of assets, management will have to adopt appropriate interventions to consider the salvage value or zero value of the assets and technologies.

One such essential and effective system for proper control on these inventories and assets and identify all assets, materials and inventories which have ceased to be useful to the organization and prompt action to be required accordingly for timely discarding and prompt disposal to recover maximum salvage value is the “WRITE-OFF GUIDELINE 2020”. This guideline is also necessary to maintain transparency and accountability in the company for disclosure to both internal and external auditors, shareholders and to the Government. This write-off guideline is expected to provide a strategic avenue to devalue these assets or inventory in times of business transactions at any reporting period of the year.
The authority to accord approval for “write-offs” shall be entrusted with the management and the board of the company as per the approved delegation of financial powers in vogue to promote and maintain accountability and transparency.
2. Objectives:

1. Disposal of assets/inventories as per the write-off guideline through existing auction procedures and
   ther alternative means in vogue;
2. Implement pertinent recovery measures for write-off losses;
3. To ensure long-term financial sustainability of the company by mitigating risks of loss from write-offs;