Numbering of Fixed Assets

Stat Audit 2189 views 7 replies

Sajid Rahman

C.A. Final

71 Points Posted on 24 April 2009

Hi...can anyone pls tell me under which provision is it mandatory to number the fixed assets?

Fixed asset register mentioning the location, quantity etc. is available but the assets are not numbered. Will this case be something to be highlighted in the CARO Report if the numbering is mandatory?

Replies (7)

Nandoo

CA Final Student

46 Points Posted on 24 April 2009

Originally posted by :Sajid Rahman
"	Hi...can anyone pls tell me under which provision is it mandatory to number the fixed assets? Fixed asset register mentioning the location, quantity etc. is available but the assets are not numbered. Will this case be something to be highlighted in the CARO Report if the numbering is mandatory?	"

Nandoo

CA Final Student

46 Points Posted on 24 April 2009

Originally posted by :Sajid Rahman
"	Hi...can anyone pls tell me under which provision is it mandatory to number the fixed assets? Fixed asset register mentioning the location, quantity etc. is available but the assets are not numbered. Will this case be something to be highlighted in the CARO Report if the numbering is mandatory?	"

Hi, Its one of the statutory complaince as per the STPI. Every STP unit is required to maintain separate Fixed Assets Register.. Regards

Sajid Rahman

C.A. Final

71 Points Posted on 24 April 2009

what is STPI?

my question is only regarding the numbering of the assets....The register is properly maintained by the Co.

M. Gokulakrishnan

Assistant Manager - Taxation

49 Points Posted on 24 April 2009

Numbering of Fixed Assets is no where made mandatory. In CARO report, the Auditor should certify that, "THE COMPANY IS MAINTAINING RECORDS SHOWING PARTICULARS INCLUDING QUANTITATIVE DETAILS AND SITUATION OF FIXED ASSETS".

The quantitative details of fixed asset include Descripttion, classification, cost, revaluation if any in the fixed assets. An asset can be properly matched to its descripttion through the Asset No. Asset No makes the identification possible.

Thus numbering of fixed assets is indirectly made mandatory. If the assets are not numbered, then the existence and descripttion must be proved using Purchase agreement, documents, records and registration references etc which is more cumbersome.

It is for the reason that enterprises choose numbering of fixed assets and was indirectly made mandatory by ourselves.

If the descripttion used by the company other than numbering is not adequate, then CARO has to be qualified.