Fixed Assets forms a critical part of any organization. The safety and monitoring of all fixed assets should be established by the Management of the organization. All Statutory Auditors review the aspect in detail and the matter becomes a qualification in their financial reports which may impair the organisation's relationship status with banks.
The key issues identified in PROVEX Partners and Consultant group in their past execution of this service has been the following
Lack of control over Fixed Assets
Lack of sight of key assets which may hold important and valuable data of the organization
Lack of development and maintenance of Fixed Asset Register to facilitate proper and effective Management.
Lack of identification of loss, damage, or theft of the asset
Lack of process facilitation for physical verification of fixed assets.
Lack of data to develop the FA register during ERP implementation
Lack of quantification of FA write off during lease exits, branch closure, de- mobilisation etc.
Wrong register update of assets for leasehold improvements.
Difficulty in allocation of depreciation on Cost / Profit center basis.
Lack of warranty controls for new assets
Lack of value attribution for movable and immovable assets and many other aspects of control.
Scope Matrix
Developing a fixed asset management platform for ensuring safeguard of its assets by way of reclassification of the assets on the basis of its mobility with an objective of a safeguard scenario buildup. This needs to be schemed out and implemented.
A detailed physical verification for Fixed Assets recorded under various cost and profit centers of the organization which counts up to around 11 centers (Cost and Profit).
Identification of variations which are expected to exist due to reasons like refurbishments of existing facilities, repositioning, transfers, disposal of assets without due communications etc.
A reconciliation of positive and negative variations arising from each of the locations to be investigated and solved, resolved or dissolved with due decision making from Neopharma under advisory from HorwathMAK
Tagging of the assets with a foresight on continued monitoring of the asset movements and existence to be planned and implemented
Development of Fixed Asset Management policy with respect to activities like Project
Management , Procurement, Transfers, Splits, consolidations, disposals by sale or scrapping.
Fixed Asset Management
