(1). Check whether a Register of Investment is maintained. (Manual / On computer)
(2). Check that the Register of Investment gives the necessary details like
(a) Description of the Investments.
(b) Name of the corporate bodies / other entities where the Investments have been made.
(c) Distinctive number of certificates
(d) No. of certificates -shares/ debentures / other securities.
(e) Face value / paid up values of Investment made
(3). Check that the certificates of investment are kept securely and in safe custody.
(4). Ensure that a physical verification of investment scripts is carried out say at least once in a year and physically found scripts are tallied with the details given in the Register of Investment. Discrepancies if any should be reported.
(5). Ensure that the proper record is made in the Register of Investment in respect of Bonus Issue of shares and debentures, Rights Issue of shares/ debentures etc .
(6). The entries in the Register of Investment should be tallied and reconciled with the entries in the printed Annual Accounts. Balance sheet - to locate any differences.
(7) Ensure that all the investments made are in the name of the company and all the transfers have been made and recorded and effected in the name of company .
(8) Ensure that all the income accounted / due in respect of all the investment made is received and accounted for in the name of company.
(9). Ensure that all the transactions in investment are authorized by a resolution of the Board of Directors or by the person to whom the powers have been delegated .
(10). Check that where any shares or securities in which investment have been made by the company are not held by it in its own name the company has entered the details in a register in terms of section (7) of the Companies Act .The register shall disclose
(a) the nature, value and such other particulars as may be necessary fully to identify the shares or securities and
(b) the bank and person in whose name or custody the shares or securities are held.
(11). Carry out a scrutiny of the investment account in the ledger to ensure that proper accounting entries have been passed in the ledger account - .Vouchers may also be verified to ensure proper authorization etc.