Property, Plant and Equipment and Intangible Assets

Reporting requirement

Report whether (a) the company is maintaining proper records showing full particulars including quantitative details and situation of PPE and intangible assets; (b) PPE is physically verified at reasonable intervals; (c) title deeds of immovable property are held in the name of the company; (d) any revaluation has been done by a Registered Valuer; (e) any proceedings under the Benami Transactions (Prohibition) Act 1988 have been initiated against the company.

What to verify before signing

• Fixed asset register completeness — qty, location, gross block, depreciation, NBV per asset
• Physical verification programme — frequency, coverage, discrepancies reconciled
• Title deeds physically inspected; mortgage / pledge status confirmed
• Revaluation reports — Registered Valuer credentials, recency, methodology
• Inquiry of management + check of show-cause notices / proceedings under Benami Act

Sample observation — applicable

(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of property, plant and equipment and intangible assets. (b) Property, plant and equipment have been physically verified by the management during the year and no material discrepancies were noticed on such verification. (c) The title deeds of all the immovable properties are held in the name of the Company. (d) The Company has not revalued its property, plant and equipment or intangible assets during the year. (e) No proceedings have been initiated during the year or are pending against the Company as at 31 March 20XX for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

Related standards