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All the Auditors have to report on Fixed Assets
under CARO covering the following points:
o Whether the
company has maintained proper records showing full particulars
including quantitative details and situation of fixed
assets.
o Whether the management has
conducted physical verifications of all major items
of fixed assets during the year or not and report on
discrepancies that have been noticed on such verification.
o Whether the frequency of verification
is reasonable and whether the same have been dealt with
in the books of Accounts.
o If a substantial part of fixed
Assets have been disposed off during the year whether
it has affected the going concern.
Management of Fixed
Assets is cumbersome and difficult. Maintaining Fixed
Asset Register (FAR) manually is not only difficult but
they are also huge and bulky. Moreover it has been noticed
that FAR requires calculations under different sections
of Companies Act as well as under Income tax Act, thereby
increasing the calculation work.
Keeping in view
all the practical problems relating to fixed assets, the
“Fixed Assets Register and Depreciation”
software has been developed by PATH DARSHI SOFTECH
PVT. LTD. This is a user-friendly, one-stop solution
to all problems relating to maintenance of Fixed Assets
Register and calculations of depreciation. The various
features of the Solution are as under:
o Multi Company
/ Branch
o Stores data for any number
of years
o Calculations done as per the
Companies Act & Income Tax Act.
In case of companies,
the calculations of depreciation are available under three
different sections i.e. Section 350 and section
205 (2)(b) of the Companies Act and Section 32 of the
Income Tax Act, simultaneously.
In case of Section 350 of the Companies
Act, calculations are done under Written down Value Method
or Straight Line Method according to the rates specified
in Schedule XIV, depending on the choice of the user.
Once the data is fed as per Companies Act, the
calculations under Income Tax Act would also be done automatically.
VALUE ADDED FEATURES
AS PER COMPANIES ACT :
| 1. |
Calculation of Depreciation
at a time by feeding data once. |
| 2. |
Intensive Location
Classification with Department/section/user. |
| 3. |
Change of Method
from WDV to SLM and vice-versa. |
| 4. |
Allocation of Preoperative
Expenses and Capitalization and calculations
of depreciation thereon with report of complete details
of such allocation. |
| 5. |
Asset transfer
within company or in Branches. |
| 6. |
Assets wise
Depreciation method. |
| 7. |
Calculation of depreciation
on Revaluation of Assets thereon
with report of complete details of the assets revalued. |
| 8. |
Depreciation Calculation on
month basis. |
| 9. |
Consolidation
of number of branches/group Companies as required |
| 10. |
Retention value
of assets in term of percentage/amount. |
| 11. |
Depreciation on Pro-rata
Basis |
| 12. |
User defined
Asset Number. |
| 13. |
Periodic Report of
Depreciation showing calculations of depreciation
for a particular period specified by the user. |
| 14. |
Variable Financial
year. |
| 15. |
Filtered
Reports. |
| 16. |
If Fixed Asset Register Report
not required, the same utility can be disabled. |
| 17. |
Option of starting
work with feeding of Opening Balance figures,
if the data since starting of the Company is not available. |
| 18 |
Accurate and up to date calculations
of depreciation and book value of assets as well as
profit or loss in case of sale of an asset is done
and is reflected in the form of various reports. |
The
reports generated under the Companies Act include :
| 1. |
Worksheet,
which shows all the necessary details such as the
date of addition, number of days used in the year,
sale value, profit/loss on sale and the calculations
of depreciation performed on each entry of assets
for the purpose of checking of data feed by the
operator. |
| 2. |
Detail of Bills &
Cost, This report uses to check detail of
bills, like vouchers, sellers, bill no, depreciation
etc. and detail of Cost like Invoice value, excise,
freight, etc. which user requires. |
| 3. |
Schedule
to Balance Sheet, a report in the form
as required under the schedule VI showing details
of the Gross Block, Depreciation and Net Block of
Assets, which can be directly attached to the Balance
Sheet. This report is available in two forms: Detailed
and Summarised. |
| 4. |
100%
Written off Items, a report which shows
all the assets which have been totally written off
during the year for the purpose of Tax Audit. |
| 5. |
Periodic
Report, a very useful report, which shows
calculations of depreciation from a particular date,
tills a particular date in a year. |
| 6. |
Fixed
Assets Register: a Register shows complete
details of the assets including details of bill,
voucher no. of the company, break up of the total
cost in terms of custom duty; installation expenses;
freight and other incidental expenses, asset no.
And location. Asset no. For each asset is generated
automatically and option for Asset Number
Sticker Generation is available form where
labels of all the available asset number can be
generated to stick them on respective assets. As
for the calculations of depreciation is concerned,
the calculations for all the three sections as mentioned
earlier are shown year wise with the respective
book value at the end of each year. Moreover the
figures are shown with complete particulars and
with notes and remarks wherever required. |
| 7. |
Depreciation
Rate List, shows rates of all the existing
account heads for ready reference, and whether printing
the most important, |
| 8. |
Asset
Details a very useful report it shows asset
with depreciation and location details of a particular
group, Account and location, Department, Section,
user. |
| 9. |
Transfer view, the
reports shows details of Asset transfer with
in the company or in branches. |
| 10. |
Capitalization,
this report shows details of all assets in WIP and
in which heads they are capitalized. |
| 11. |
Allocation
of Preoperative, the report shows allocation
ratio amount of preoperative expenditure on each
asset. |
| 12. |
Consolidated
Schedule to Balance Sheet, This report
is same as schedule to B.S. with more than on company
/ Branches. |
All
the reports can be taken out on Laser Jet, Ink Jet
THE REPORTS
GENERATED UNDER THE INCOME TAX ACT INCLUDE :
| 1. |
Report as per
point 14 of the Tax Audit Report. |
| 2. |
Report of Each Entry
showing item wise details and calculations thereon.
|
| 3. |
Depreciation Rate
List showing existing rates for all the blocks. |
| 4. |
Annexure to Balance
Sheet |
| 5. |
Fixed Assets Register
showing details of assets and depreciation calculations
as per section 32 of the Income Tax Act. |
The
options available under the Income Tax Act also includes:
1.
Allocation of Preoperative Expenses
2. Modifications, additions
and deletions of Account Heads, Group heads, Blocks and
Block Rates.
3. Block Rounding Off to
round off the amount of depreciation and closing balances
of the year.
Moreover, to make this software flexible and valid for
all times to come, options for modifications in Group
Heads and Rates is available so as to incorporate any
changes relating to Fixed Assets in the Acts arising in
future. Other options available to the user include Backup
of the files on local drive and Restoring
of files from such drives. Three levels of security passwords
are there to access
Software functionalities one is
to view only, second is for creations & modification
of data and last for major utilities such as deletion
of company, Rate Change, Method Change etc.
The software ´Fixed
Assets Register and Depreciation´ is now available
on window version, which can be operated through network.
Moreover the Company boosts of its strong after sales
service. It provides free training of the package and
also gives three-month free maintenance.
To sum up, it is
very user-friendly software, which will make the maintenance
of your fixed assets register a hassle free and easy job.
Advanced Technical features :
| 1. |
FAR work on all
Versions of Microsoft Windows like Win-98, Win-NT
and above. |
| 2. |
It is Multi-user Software.
(One or more User can work on Centralize Database). |
| 3. |
It has reliable Backup &
Restoration facility. (Backup Query at the time of
Exit). |
| 4. |
It provides Security features
by different Login facility; there are 3 login with
Admin, User, and Guest. ADMIN has administrative rights
and has full control over package, USER has limited
rights, they have not rights to use Company Configuration
and Change of Company Methods of which effect on changing
depreciation and it’s Rates, and Guest user has only
right to view Reports but they can’t access any menu
like, Company Configuration, Master & Transaction
Menu’s |
| 5. |
FAR software provides features
to export it’s reports in various formats like, MS-Word,
MS-Excel, Adobe (PDF), Rich Text Format, Text file. |
Minimal System Requirement
1. Windows-98 / NT or higher.
2. 32MB RAM or higher.
3. CPU Speed P-II or higher.
4. Resolution 800 by 600 Pixels or higher.
5. 16-Bit Colors or higher.
Note:- An effort has been made to provide & consider
all aspects & give accuracy along with changing facility from auto to
manual adjustment, which sometimes does not give correct result because
of manual adjustment, which a use has to take effect.
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