Fixed assets are a significant item on the Balance sheet of most of the organisations and so it is very important to have a precise picture of all the physical assets of the organisation.
In case of companies registered in India, it is mandatory for the auditors to report on maintenance of proper records, physical verification and substantial disposal of fixed assets under the Companies (Auditor’s Report) Order ( CARO) 2003, issued by Central Government u/s 227 of Companies Act.
Our professional team specialises in carrying out the requisite fixed assets physical verification and tagging with utmost accuracy. It entails the following activities:
- Preparation of detailed procedure and policy manual for the physical verification of assets.
- Comprehensive and complete physical verification exercise of all the organizations Fixed Assets.
- Physical identification and labeling of the assets with special bar coded labels.
- Through bar code, we capture the following Fixed Assets information electronically:
(i) Unique serial number
(ii) Descripttion of the asset
(iii) Location of the asset
(iv) Fixed Asset Classes
(v) Various Departments, sub- departments and Cost Centres
(vi) Year of purchase
- Matching of the output of the verification exercise with existing records. A process of linking the asset values in the existing records and the assets are tagged at each location.
- A detailed and accurate Fixed Asset Register is figured out and is presented to the management.
- This exercise helps to keep track of the correct value of assets, which allows for computation of depreciation and taxes for insurance purposes while ensuring compliance with corporate and government policies.
- The use of bar-coding technology makes asset verification simple and efficient.
- The exercise also helps to update the asset register of any purchase, sale or disposals or any any other movements that may not have been captured in the books and by giving up to date records of the asset.