Government makes geo-location of tangible assets mandatory for firms

Related imageCorporate India will have to furnish the geo-location data of tangible assets appearing on the balance-sheets, with the government seeking to establish stringent norms for verifying the details of properties recorded with the registrar as ‘charges’ for a company.

Simply put, a charge is the interest created on a company’s assets that have been put up as security or are mortgaged.

Revising disclosure standards, the Ministry of Corporate Affairs has told companies that supplying the latitude and longitude of their tangible assets is now mandatory. Company Secretaries and asset teams in the accounts divisions might now be engaged with Google Maps, with the ministry revising Forms CHG 1 and 9 to include a column on the latitude and longitude of the asset. Both forms pertain to applications for the creation and modification of charges on a company and were modified through a gazette notification this month.

Image result for ICSI“If the ‘Type of Charge’ is ‘immovable property or any interest therein’, the location parameters (Latitude and Longitude) shall be mandatory,” according to a notification on the ministry’s website.

“It is a unique move,” said Shyam Agrawal, president of the Institute of Company Secretaries of India (ICSI).

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