Fixed asset register companies act 2013

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2015 Under which section if maintenance of Fixed asset register mandatory now after companies act 2013 became applicable?? as earlier, A fixed asset register was to be maintained under section 209(1)(c) of the Companies Act. 1956.

Ankur Garg

Ankur Garg (Expert)
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12 July 2015 As per my understanding companies act 2013 is silent regarding requirement of Fixed Asset register. However the same is required under CARO requirements.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2015 Sir but in CARO 2015 its only written Under Matters to be included in the auditor's report that "whether the company is maintaining proper records showing full particulars, including quantitative
details and situation of fixed assets" or not.
What is proper record format that is not defined here.. so can a company use FAR as per Clause 18 of Form 3CD ?

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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24 July 2024 Under the Companies Act, 2013, the requirement for maintaining a Fixed Asset Register is covered under Section 34(1) of the Act. Here's the relevant provision:

1. **Section 34(1) of Companies Act, 2013:**
- According to Section 34(1), every company is required to maintain books of account and other relevant books and papers and financial statements for every financial year which give a true and fair view of the state of affairs of the company, including that of its branch office or offices, if any, and explain the transactions effected both at the registered office and its branches, and such books shall be kept on accrual basis and according to the double entry system of accounting.

2. **Maintenance of Fixed Asset Register:**
- While Section 34(1) of the Companies Act, 2013 does not explicitly mention the term "Fixed Asset Register," the requirement to maintain proper records of fixed assets is implied. The Act mandates that companies maintain books of account and other relevant books and papers, which include records of fixed assets.

3. **CARO 2015 Requirements:**
- As per the Companies (Auditor’s Report) Order, 2015 (CARO 2015), the auditor's report should include a statement on whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets. This reinforces the need for companies to maintain detailed records of their fixed assets.

4. **Format of Fixed Asset Register:**
- The Companies Act, 2013 and CARO 2015 do not prescribe a specific format for the Fixed Asset Register. It is up to the company to maintain records that provide full particulars of fixed assets, including quantitative details, location, and other relevant information.

5. **Use of Form 3CD Clause 18:**
- Form 3CD under the Income Tax Act provides a format for reporting information for tax audit purposes. Clause 18 of Form 3CD pertains to details of fixed assets as per Income Tax rules. While this format is useful for tax compliance, companies may choose to align their Fixed Asset Register format with the requirements under Form 3CD as long as it captures all necessary details required under the Companies Act, 2013 and CARO 2015.

In summary, while the Companies Act, 2013 does not explicitly mandate a Fixed Asset Register under a specific section like the Companies Act, 1956 did (Section 209(1)(c)), the overall requirement to maintain proper records of fixed assets is encompassed in the broader provisions of Section 34(1). Companies should maintain a Fixed Asset Register or an equivalent record that complies with the requirements of providing full particulars and quantitative details of fixed assets, as stipulated by CARO 2015 and other applicable regulations. Using Form 3CD Clause 18 as a guideline can be beneficial, but the format should be tailored to meet the company's specific reporting and compliance needs under the Companies Act, 2013.