CARO compliant asset verification service

Posted @ 6/28/2018 11:31:28 PM by admin Under( Inventory verification)


AAA asset verification provides CARO (Company auditors report order) compliant asset and inventory verification services across India. Deliverables include a Chartered Accountant (C.A.) certification of the physical verification exercise along with reconciliation final report on the existence and other parameters of the companies assets.

As per section 143(11) of Companies Act 2013, certain class and description of companies have to include a statement on specific matters which are detailed and prescribed under CARO 2016 issued by Ministry of Corporate Affairs (MCA)

CARO statement is to be included with Companies Financial Statements. There are 16 different requirements of CARO regarding matters to be included but specifically two of them are most important and vast in their coverage.

These are –

Clause 3 (I) FIXED ASSET

These clauses require auditor to comment on the following –

  • Proper record – Is the Company maintain records properly having full details and usage of fixed assets
  • Physical verification – Are the assets physically verified at regular intervals
  • Discrepancy – If on physical verification of assets any material discrepancy was found, has it been properly dealt in books of accounts (Fixed Asset Register)

 

Clause 3 (II) INVENTORY

Similarly, as Clause (I) above, CARO requires management to get their inventory periodically verified at reasonable intervals and if on Physical verification of Inventory any material discrepancy was found, it has to be properly dealt in the books of accounts.

 

Thus, as per above two clauses, a company’s auditor requires companies to produce C.A. certificates and reports on the status of Fixed Assets and Inventory of the Company.

This is where the services of AAA asset verification come to the rescue. We provide CARO compliant physical verification of fixed assets and also Physical verification of Inventory services across India.

We at AAA take up the entire fixed asset verification of the companies assets and inventory across India at any location of the company. Then we prepare a reconciliation report on the findings and variances observed. Also any write-off from the books, if required are suggested.

The assets are tagged in the process with polyester tags, identifying them as companies asset. These tags have a bar-code containing unique ID of the asset along with other information that the company requires on such labels.

Thus AAA provides an end to end service for asset management and CARO compliant physical verification of assets and inventory.

We have covered physical verification of assets assignments in all of the states of India and have presence in Delhi NCR, Gurgaon (Gurugram), Noida, Greater Noida, Mumbai, Bangalore (Bengaluru), Hyderabad, Pune, Nagpur, Ahmedabad, etc.

 






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