Sec.209 Books of accounts

Plz go through this thread:-

/forum/fixed-asset-register-86415.asp

Thanks Vivek.

Hi,

I think you have not checked the link provided by Vivek Ji…and reply of Ms. Ash Jain…Check CARO applicability on your company.

No there is no proof regarding requirement of companies act, 1956. Further preparation and maintenance of fixed assets register is not a big project…so you may go ahead and it is always recommended to prepare the same.

Best Regards

Dear,

Dont confuse between two words " Books of Accounts " and " Register "

As Per Sec 209 :

209. Books of account to be kept by company

[(1) Every company shall keep at its registered office proper books of account with respect to-

(a) all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;

(b) all sales and purchases of goods by the company; [* * *]

(c) the assets and liabilities of the company; [and]

[(d) in the case of a company pertaining to any class of companies engaged in production, processing, manufacturing or mining activities, such particulars relating to utilisation of material or labour or to other items of cost as may be prescribed, if such class of companies is required by the Central Government to include such particulars in the books of account:]
 

and

Book and Paper means -

"book and paper" and "book or paper" include accounts, deeds, [vouchers,] writings and documents;

Here in sec 209 act is not talking about REGISTER but it talks abt  kept of Books OF Accounts at Register office.

In common paralance Register and Books of Accounts are different.

I request to other member help in understand between two words Register and  kept  of Books of Accounts at register office and  in regards flaash on sec 209.

Regards.

As Per Sec 209 :

209. Books of account to be kept by company

[(1) Every company shall keep at its registered office proper books of account with respect to-

(a) all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;

(b) all sales and purchases of goods by the company; [* * *]

(c) the assets and liabilities of the company; [and]

[(d) in the case of a company pertaining to any class of companies engaged in production, processing, manufacturing or mining activities, such particulars relating to utilisation of material or labour or to other items of cost as may be prescribed, if such class of companies is required by the Central Government to include such particulars in the books of account:]

Note :

That is………. what sec.209 says   books to be maintained for the below mentioned transactions

Money received and paid

Sales and purchase

Assets and liabilities

Hi dear ,

Books means :

Book and Paper means -

"book and paper" and "book or paper" include accounts, deeds, [vouchers,] writings and documents;

Hi,

Section 209 is totally silent about books of accounts. As per true interpretation of section 209 only those books of accounts are required to be maintained by the company which properly covers the transactions mentioned under section 209(1)(a) to (d). This view is also supported by the study mat provided by ICSI.

Also as per ICSI study mat Fixed register is not a compulsorily maintainable register. So there is no prescribed books u/s 209.

Best Regards

Superb explanation…….. Ankur sir

I will check ICSI material for FA register query and confirm for the same with our client Practicing CS.

Best Regards

Whether Assets – includes Fixed assets register or not ?

Defintely Assets include Fixed Assets but section 209 is not talking about Fixed Asset register but as you said CARO is applicable you will have to maintain it and normally all the companies are maintaining FA register.

Regards,

Dear All,

Fixed assets register is not mandatory under the companies act 1956.

However please refer to section 209(1)c books of accounts there it reads: the assets and liabilities.

which implies that the assets are to form part of books of accounts. the fixed asset register being a part of 209(1)c becomes mandatory.

you may however contradict that the balance sheet and profit and loss accounts statements are a statement of assets. however the finance act 2001 has defined books of accounts as "Books or books of account includes ledgers, day-books, cash books, account-books and other books, whether kept in the written form or as print-outs of data stored in floppy, disc, tape or any other form of electro-magnetic data storage device". This is an inclusive definition.

hence companies not maintaing the fixed assets register for years together can bring in a soft copy of the same. this should be effective.

kindly correct me if i stand wrong

Regards

Kavitha Shah

Dear Sir,

As per Section 209 of Co. Act , company need to be req to maintain its books of account in registered office though either in hard copy or electronically. 

Generally, Nowadays, We do use accounting softwares for maintaining our account and the utility itself have option for Fixed asset which is as same as Fixed asset Register facilitate all same purpose.

Thanks