THE INTRODUCTION:
Fixed assets are critical to the operations of any business, and telecom companies are no exception. The Companies (Auditor's Report) Order, 2020 (CARO) requires companies to disclose fixed asset details, such as the description, quantity, location, and book value. The accuracy and completeness of fixed asset records are crucial for regulatory compliance and financial reporting. CARO also requires auditors to comment on the physical verification of fixed assets and any discrepancies found during the verification process. It is, therefore, essential to efficiently track and manage fixed assets to help reduce costs, optimise resource utilisation, increase profitability and ensure accurate reporting and compliance with regulatory requirements.
CLIENT BACKGROUND:
The telecom company is a leading provider of mobile and internet services in India, with a presence in almost all states and union territories. The company has a vast network of cell towers, fibre optic cables, and data centres strategically located to provide seamless connectivity to its customers. In addition, it has invested heavily in building a robust infrastructure to support its various services, including mobile voice and data, fixed-line broadband and voice, and digital TV services.It is a global communications solutions provider with over ~500 Mn customers in ~15 countries across South Asia and Africa.
THE PROBLEM:
The telecom company was facing challenges in tracking its fixed assets due to the following reasons:
Lack of a systematic approach to asset management
Inaccurate and incomplete asset records
Lack of trained staff for asset management
Inefficient location tracking and identification of assets during physical verification
THE SOLUTION:
To address these challenges, the company generally completes the physical verification process over a period of three years. Threstrict the scope of the assignment to one-third of the value of the assets in a year. our team of experts at Chandra Wadhwa & Co. to provide physical verification of fixed assets services for Kerala and Tamil Nadu-Chennai circles. The service included the following steps:
Assets Locat