Fixed Assets Register

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CA.Subhankar (Querist)
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11 October 2010 Dear Sir,
I would like to know whether maintenance of Fixed Assets Register is compulsory as per any Corporate Law for a PRIVATE LIMITED COMPANY.

Please help me out.
Thanks in advance...

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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11 October 2010 A fixed asset register is a statutory register maintained under section 209(1)(c) of the Companies Act. 1956. This register requires a company to maintain various details relating to all its assets that form a part of its total fixed asset block. Any failure to maintain this register as required by the statute may entail penalty, which may extend to imprisonment in some cases.

Ankur Garg

Ankur Garg (Expert)
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11 October 2010 As per companies act maintenance of fixes assets register is not at all mandatory and there is no penalty or imprisonment.

However as far as maintenance of Fixed Asset register and physical verification of Assets is concerned, there is a Disclosure requirement in CARO (Point-i(a) and (b)) regarding the maintenance of proper records and physical verification of assets by the management; The Auditor bears the responsibility to report that only.

However, if there is a doubt regarding the physical existence of the assets the Auditor can suitably qualify its report because in that case financial statements will not give a true and fair view.

Regards

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Guest

Guest (Expert)

13 October 2010 Please refer the below mentioned link……

https://www.caclubindia.com/forum/details.asp?mod_id=101704

Regards

Guest

Guest (Expert)

13 October 2010 CARO,2003

Issued by the Central govt. of india in terms of sub sec.(4A) of sec.227
of the companies act,1956.

So, sec.227(4A) says

it is mandatory for all companies to maintain FA register, IF CARO,2003 IS APPLICABLE.

Regards

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CA.Subhankar

CA.Subhankar (Querist)
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14 October 2010 Thank You sir for your kind replies.
They were extremely useful.