Call For Business Enquiries : +91 97650 00966 / +91 98190 00511 / +91 98218 32683
Call For Business Enquiries : +91 97650 00966 / +91 98190 00511 / +91 98218 32683
Fixed Asset Verification · Panaji, Goa
Physical verification of every capital asset, reconciled to your Fixed Asset Register — ghost assets identified, unrecorded assets added, asset tagging implemented, and depreciation corrected. For hotels, pharma, IT and real estate across Goa.
Overview
Fixed assets are the backbone of a business's balance sheet: land and buildings, plant and machinery, furniture and fixtures, computers, vehicles and intangible assets together represent the bulk of the capital invested in most Goa businesses. Yet the Fixed Asset Register (FAR) — the accounting record that tracks each asset from acquisition to disposal — is one of the most frequently neglected financial records in practice. Assets appear in the FAR that have long since been disposed of; assets in use have no FAR entry because the purchase was capitalised but never added to the register; serial and model numbers are missing or incorrect; depreciation is computed on the wrong original cost or the wrong rate; and the recorded location of assets does not match where they actually are.
A periodic fixed asset audit — physical verification of every capital asset with reconciliation to the FAR — provides the basis for accurate depreciation, insurance coverage determination and balance sheet accuracy. N D Savla & Associates, Chartered Accountants in Panaji, Goa, conducts fixed asset audits for hotels, pharmaceutical companies, IT companies, real estate businesses and other asset-intensive entities across Goa. For the inventory audit covering stock and consumables, see our Inventory Stock Audit guide. For the complete audit overview, see our Audit & Assurance Services hub.
By asset category
| Asset category | Verification method | Key checks | Goa relevance |
|---|---|---|---|
| Land and buildings | Physical inspection; title deed verification; property card and revenue records cross-check | Title is clear; encumbrance-free; municipal approvals in place; book value vs market value assessment | Hotels, real estate developers, industrial units |
| Plant and machinery | Physical location inspection; serial and model number recording; operational status assessment | Asset is present; operational or idle (idle assets flagged); book value vs current value; maintenance records reviewed | Pharma companies, mining, printing, food processing |
| Furniture and fixtures | Room-by-room and floor-by-floor physical walk-through; tagging check | All tagged items present; condition assessed; new items added to FAR; disposals removed from FAR | Hotels, offices, restaurants |
| Computers and IT equipment | Serial number verification; network device scan; software licence inventory | All laptops, desktops and servers physically present; condition; end-of-life equipment identified for write-off | IT companies, hotels, CA firms |
| Vehicles | Registration certificate verification; physical inspection; kilometre reading; insurance validity | Vehicle is present and operable; RC matches book description; company-owned vs leased status | Hotels, logistics, pharma, tourism |
| Intangible assets | Review of agreement, licence or registration document; amortisation schedule review | Licence or agreement is valid; amortisation period appropriate; goodwill and brand value supported | Software companies, brand-owning entities |
Our process
Obtain and review the register, reconcile it to the balance sheet gross block, and build a location-wise verification checklist.
Location-by-location walk-through recording description, serial number, condition, location and asset code — with photographs.
Match assets found to FAR entries and classify the differences: ghost assets, unrecorded assets, reclassifications.
Write-off and addition recommendations, depreciation corrections, insurance gaps, and an updated register.
In detail
Every step produces a working paper that supports the final report and the corrected register.
Get a fixed-fee quote →Obtain the current register: asset description, date of acquisition, original cost, accumulated depreciation, written-down value and physical location. Review it for completeness and obvious errors — assets added twice, incorrect dates, suspiciously round numbers — and reconcile the closing balance to the balance sheet gross block and accumulated depreciation.
A systematic walk-through of every office, factory floor, hotel room, warehouse, vehicle park and remote site. For each asset found we record description, manufacturer, model or serial number, condition, physical location and the corresponding FAR asset code, and photograph high-value machinery, vehicles and computers as documentation of existence. For IT assets we supplement the physical count with a network inventory scan.
Ghost assets — in the FAR but not physically found, having been disposed of, stolen or scrapped without removal from the register. These overstate the gross block and should be written off. Unrecorded assets — purchased and in use but never entered in the FAR; these must be added with their acquisition cost and date. Reclassifications — assets correctly in the FAR but at the wrong value, location or depreciation rate.
Verify that rates applied match Companies Act Schedule II for statutory purposes or the Income Tax Schedule for tax purposes. Assets fully depreciated but still in productive use should be retained at a nominal value of Re. 1 until actual disposal. Assets whose useful life differs significantly from the statutory schedule — specialised hotel equipment, custom machinery — require management assessment and disclosure.
A comprehensive report listing ghost assets recommended for write-off, unrecorded assets recommended for addition, reclassifications and depreciation corrections; the corrected Fixed Asset Register incorporating all findings; and an insurance recommendation identifying assets that may be under-insured or where cover has lapsed.
Asset tagging
One of the persistent problems in fixed asset management is the disconnection between the physical asset and its FAR record: the register has an asset code, but the asset itself has no label linking it back to that code. When we conduct a fixed asset audit we recommend — and can implement — a systematic asset tagging programme. Each physical asset is assigned a unique asset tag number, a barcode or QR code label affixed to the asset, and the FAR is updated to record the tag number for each item.
Future physical verifications then become dramatically faster and more accurate: the verifier scans the tag, the system immediately matches it to the FAR entry, and the reconciliation is done in real time.
Sector focus
Hotel properties in Goa are among the most fixed-asset-intensive businesses in India: land, often prime beachfront or hillside property; buildings, including construction, renovation and extension; room, lobby and restaurant furniture; fixtures such as lighting, plumbing and air conditioning; kitchen equipment; pool and spa equipment; vehicles including shuttle buses and water sports boats; IT systems covering PMS, POS and CCTV; and high-value art and decoration.
Managing the FAR for a hotel of 100+ rooms with 5,000+ individual line items is a significant administrative task, and it is often neglected during busy tourist seasons. Our hotel fixed asset audit provides complete room-by-room furniture and fixture verification against the FAR, identification of renovated assets that need to be written off and replaced with the new asset's cost, and a clear statement of the hotel's total fixed asset position for insurance and bank security purposes.
Frequently asked questions
For companies, CARO 2020 (Clause 3(i)) requires the statutory auditor to report on whether the company has maintained proper records of fixed assets, whether those assets have been physically verified by management at reasonable intervals, and whether discrepancies noticed on verification have been dealt with in the books. That effectively makes periodic physical verification a legal expectation for companies. For non-company entities there is no statutory requirement, but it remains a best practice essential to balance sheet accuracy.
CARO 2020 uses the standard "at reasonable intervals", which the ICAI has interpreted as at least once every 3 years for all assets, with more frequent verification for high-value or easily movable assets such as vehicles, computers and portable equipment. In practice a full verification every 2–3 years with spot checks in intervening years suits most Goa businesses. Hotels and hospitality businesses with high-value movable assets should verify annually.
A ghost asset exists in the Fixed Asset Register but not physically — it has been disposed of, scrapped, stolen or destroyed, but the disposal was never recorded. Ghost assets overstate the gross block and net block on the balance sheet, overstate the depreciation base and can lead to excess depreciation charges in later years, and create an inflated picture of the capital base. Physical verification identifies them; they should then be written off with a P&L charge for the net book value at the time of write-off.
An unrecorded asset is a physical asset that was purchased and is in use but was never formally entered in the FAR — typically because the purchase was capitalised in the accounts but never added to the register. These must be added with their acquisition cost and date so that depreciation and insurance cover are computed correctly.
Asset tagging assigns each physical asset a unique barcode or QR code label recorded against its FAR entry. It closes the gap between the asset and its book record, so future verifications are done by scanning the tag and matching it to the register in real time — much faster and more accurate than manual reconciliation.
Related audit services
Fixed asset audit and physical verification — FAR reconciliation, ghost asset identification and asset tagging. Book a free consultation with a qualified Chartered Accountant in Goa.