(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.