A Study on Fixed Asset Management

8/2/2019 A Study on Fixed Asset Management

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BY

SRINIVAS.DAMERA

8NBHD009



1) Assets are grouped into various categories, suchas

land

buildings

plant and machinery

vehicles

furniture and fittings

goodwill

patents

trade marks and designs.



2. This standard does not deal with the specialized aspects of

accounting for fixed assets that arise under acomprehensive system reflecting the effects of changing

prices but applies to financial statements prepared on

historical cost basis.

3. This standard does not deal with accounting for the

following items to which special considerations apply:

(i) Forests, plantations and similar regenerative natural

resources;

(ii) Wasting assets including mineral rights, expenditure on

the exploration for and extraction of minerals, oil, natural

gas and similar non-regenerative resources;

(iii) Expenditure on real estate development; and

(iv) Livestock.



4. This standard does not cover the allocation of the

depreciable amount of fixed assets to future periodssince this subject is dealt with in Accounting

Standard on ‘Depreciation Accounting’.

5. This standard does not deal with the treatment of government grants and subsidies, and assets under

leasing rights. It makes only a brief reference to the

capitalization of borrowing costs and to assets

acquired in an Amalgamation or merger. Thesesubjects require more extensive consideration than

can be given within this Standard.



The telecom industry of India has registered manifold growth in the

recent years.Personalized telecom access is essential necessity of life for

increasing number of the people.

The sector offers unlimited prospects when we consider future

growth.Both Public Players and Private Players are enhancing their

technologies and taking the telecom industry to a much higher

growth state.

Not only service providers but also handset manufacturers arecontributing significantly to the industry and economy of India.

TTSL is the main player of this industry. The main competitor for the

TTSL is Reliance communication, because rest of the player deals

with mostly GSM while R-Com and TTSL deals with CDMA andGSM.



Reliance Communications Limited

Bharti Airtel Limited

BSNL

MTNL

Vodafone

Idea Cellular Limited

Tata Teleservices Aircell



Company

Name Percentage of

Market Share Bharti Airtel 31% Vodafone 23% BSNL 19% Idea 12% Aircel 6% Reliance 4% Spice 2% MTNL 2% BPL 1%



Company

name Percentage of

Market Share Reliance 56.70% Tatateleservices 35.58% BSNL 06.70% HFCL 00.44% MTNL 00.41% Shyam 00.16%



The Tata Group is a multinational conglomerate based in Mumbai,

India. In terms of market capitalization and revenues, Tata Groupis the largest private corporate group in India and has beenrecognized as one of the most respected companies in the worldover the years.

Steel

Automobile

Information Technology

Communication

Power

Tea and Hotels

The Tata Group has operation in more than 90 countries across sixcontinents and its companies export products and services to 80nations.

The Tata Group comprises 98 companies in seven business sectors,27 of which are publicly listed. 65.8% of the ownership of TataGroup is held in Charitable Trusts.



Company Vision:

Trusted service to 100 million happy customers by 2011

Company Mission:

To empower every Indian to connect with the worldaffordably

Company Values:

Fairness through meritocracy

Trusted based on accountability

Tenacity for results Pioneering spirit

Excellence in execution

Leadership with humility



Fixed assets are assets those assets which are permanent in nature andare held for use in business activities and not for sale.

TTSL having the following Main Asset Class and Sub Asset Class:

Asset Class Asset Class Description

FABLDG BUILDING

FALAND LAND

FAGDWL GOODWILL

FALHIMLEASEHOLD

IMPROVEMENTSFAPLMC PLANT & MACHINERY

FAFUFT FURNITURE & FITTINGS

FAVECL VEHICLE



Asset Class Asset Class Description CWBLDG CWIP-BUILDING CWLAND CWIP-LAND CWLHIM CWIP-LEASEHOLD

IMPROVEMENTS CWPLMC CWIP-PLANT &

MACHINERY CWFUFT CWIP-FURNITURE &

FITTINGS



Cell Sites/ POI sites/Regenerator Sites

Outside Plant

Network Interface Unit (NIU)

PTB

Branded Retail

SPARES

Tools & Test Kits

Assets Disposal & Retrials



The Review of Literature throws the light towards different aspects like: The 1st abbreviations explain the companies particular code for the asset

of building in the TTSL. Every different company have some different

codes for their assets in the respective fields like

FABLDG BUILDING The below it is mentioned the asset class and sub asset class

and it explains the Sub-asset class description. Asset Class Sub-Asset Class Sub-Asset Class Description

FABLDG BLDG BUILDING FALAND LAND LAND



The NET WORK ASSETS Explains about the Cell Sites/ POI sites/Regenerator Sites.

In TTSL Company Every month end declaration fromrespective Circle Network needs to be taken for the assetsdeclared ready for Service (RFS) and deployed at sites withcomplete quantity and configuration wise details.

In the TTSL Certificates to be duly certified and collectedfrom Network Team for Record Purpose and AuditCompliance and supporting.

In TTSL every Issues needs to be cross verified in SAP and

to be reconciled for Material Part. In TTSL Company There is a systematic way for the

network team to approve the assets in the organization therecan be a particular process is to be done



There are reconciliation of net work certification and system

issues lying in assets and prior to capitalization. Settlement of imported assets should be due care should be

taken by valuation part to ensure the duty.

Multiple assets should not be considered as one asset.

For non issuance of materials in SAP, circle SCM to be dulyintimated for booking consumption .if is lying in Inventory.

In TTSL there is out side plant also there in this every monthready for services (RFS) should be certified by the network team for the record purpose and audit compliance.

Net work interface unit needs to be capitalized and modelwise and it should be marked in the AMR(asset No.) whilecarrying out the settlement from Asset Under Construction toFixed Asset, And NIU consumption in SAP.



PTB NIU needs to be capitalized taking into consideration

points 1 to 5 aforementioned. Should be capitalized. All the assets pertaining to PTB an i.e. booth, antennae is also

be capitalized.

RFS status for true value HUB true value COCO &

fulfillments centers should be taken from branded retail team. Spares intended to be used only for an item of fixed asset

over a period not exceeding the life of that fixed asset.

Tools & test kits issued to be project consumption. And lying

in capital inventory and intimating SCM and capitalized. Physical control over tools and test kits should be lying the

circle network team.

Assets disposal & retrials supported by chart authorities.



Methodology:

Data Collection Methods:

i. Primary data

ii. Secondary data



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A Study on Fixed Asset Management

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