Asset Audits & Compliance

It is imperative for all the companies to use assets as per Schedule II. If Asset Audits & Compliance is not considered, then they are required to justify the variation along with technical advice. One can consult for Asset Audits & Compliance and related aspects. We have experts to provide the best solutions.

Useful Life of Plant & Machinery as per Companies Act

  • The new amendment in Companies Act, 1956 emphasises on the concept of useful life of assets by providing indicative life and residual value for assets in Schedule II.
  • The Corporate Affairs Ministry has now said that useful lives of assets and the residual value specified in Schedule II should be ordinarily used by companies.
  • In case, companies are using values that are different from the Schedule II, then they would be required to adequate disclosures in their financial statements to justify the variation along with technical advice.

A Chartered Engineer & Valuer prepares his impartial report to assess the residual useful life on the basis of the physical condition of the assets. Following documentary evidence needs to be furnished at the time of Inspection :

  • Copy of audited balance sheet of last three consecutive years
  • Copy of Fixed Asset Register ( FAR ) indicting list of P & M
  • Copy of Purchase Invoice of the Machineries
  • Production schedule of the Plant
  • Breakdown and Preventive Maintenance Records of the machines