The hard parts of a plant's asset register — done by the book
Componentised machinery, multi-shift operations, additional depreciation and years of CWIP. AssetOS handles the manufacturing-specific accounting that flat spreadsheets simply can't.
Component accounting, without double-counting
Schedule II expects significant parts of an asset with different useful lives to depreciate separately. In spreadsheets, teams either ignore this or split assets manually — and then risk depreciating both the whole and its parts.
AssetOS models a parent 'shell' asset that carries no cost, with child components that hold the cost and life. Shells are excluded from both the Companies Act and Income-tax engines, so a componentised machine is never double-counted.
Shell + components
The parent shell links its children; cost and depreciation live only on the components.
Entity + class gated
Component tracking is enabled per entity and per asset class, so you componentise only where it matters.
Threshold suggestions
A componentisation threshold policy suggests when a part is significant enough to split out.
Every significant part depreciates on its own life — cleanly, and with no risk of double depreciation.
Component replacement that follows AS 10
When a major part is replaced, the old part must be derecognised and the new one capitalised. Done in a spreadsheet, the carrying amount of the old part is rarely written off correctly, and the gain or loss is guesswork.
The replacement flow derecognises the old component — writing off its carrying amount and computing gain or loss as sale value minus written-down value — and capitalises the replacement as a new component linked to the same parent.
Derecognise old part
Carrying amount written off; gain/(loss) = sale value − WDV, recorded against the right asset.
Capitalise replacement
The new part is added as a linked component of the same parent, on its own life.
Under approval
Replacements route through maker–checker so the entry is reviewed before it hits the books.
AS 10 replacements are recorded correctly and consistently — with a clear gain/loss and a full audit trail.
Shift depreciation, scaled by the days you ran
Assets run on double or triple shifts wear faster, and Schedule II Part C requires extra depreciation for the days they did. Tracking shift-days per asset and applying the uplift by hand is tedious and error-prone.
AssetOS applies the Part C uplift automatically — double-shift adds 50%, triple-shift adds 100% — scaled by the ratio of shift-days to days in the financial year, and correctly excludes NESD assets, intangibles and land.
Double shift +50%
Uplift applied in proportion to double-shift days actually worked.
Triple shift +100%
Uplift applied in proportion to triple-shift days actually worked.
Exclusions handled
No-extra-shift-depreciation (NESD) assets, intangibles and land are excluded by rule.
Shift depreciation is charged accurately, in proportion to actual usage — no manual uplift spreadsheets.
Additional depreciation, applied only when eligible
New plant & machinery in a manufacturing entity qualifies for a 20% additional deduction — but the eligibility rules (new, not second-hand, not office equipment or ships, normal tax regime) and the under-180-day split trip people up.
AssetOS evaluates eligibility strictly and applies 20% additional depreciation to qualifying new plant & machinery. For assets used under 180 days, it grants 10% now and carries the remaining 10% forward — and the concessional tax regime automatically disables it.
Strict eligibility
New plant & machinery in a manufacturing entity only — second-hand, office equipment and ships are rejected.
180-day split
Under 180 days of use: 10% now, 10% carried forward to the next year.
Regime aware
The concessional regime (s.115BAA-style) gate switches additional depreciation off automatically.
You capture every rupee of additional depreciation you're entitled to — and never claim it where you aren't.
Capex projects, from expenditure to capitalisation
Plant expansions accumulate cost in CWIP for months or years. Deciding what's capitalisable, allocating shared cost across the assets it created, and disclosing ageing is a quarterly fire-drill.
Track each project with budget and target dates, separating capitalisable spend from P&L items. When it's ready, capitalise into one or many assets with direct, pro-rata-by-value or manual allocation — and get Schedule III ageing automatically.
Capitalisable vs P&L
Classify each expenditure so only the right costs land on the asset.
Allocation methods
Split project cost across multiple resulting assets by direct, pro-rata or manual weights.
Schedule III ageing
Ageing, movement and a capitalisation register are generated for disclosure.
Capex flows cleanly from project to asset, with capitalisation and ageing that are always disclosure-ready.
Physical tagging with QR labels
Finding an asset on the shop floor and tying it back to the register usually means a laminated sheet and a lot of walking.
Every asset carries a QR token you can print as a label — on sticker-roll or A4/A6 grid presets — so anyone can scan a machine and pull up its record.
Per-asset QR token
A stable QR code is generated for each asset for scanning and lookup.
Label presets
Sticker-roll and A4/A6 grid layouts (from 50×30 to 100×50 mm) for the printer you have.
Bulk printing
Select many assets and print a full sheet of labels at once.
Physical assets are tagged and traceable to the register — a solid base for verification workflows.
What it looks like in practice
A ₹6.2 Cr CNC machining line was booked as a single asset with no componentisation, and shift usage was never recorded despite two- and three-shift running. The Excel register hadn't been physically verified in two years — on a floor count, 16% of tagged assets couldn't be traced. The statutory auditor issued an adverse CARO remark on maintenance of proper fixed-asset records and physical verification. Separately, additional depreciation under section 32(1)(iia) had been claimed on a second-hand imported press and on office air-conditioning; both were disallowed in scrutiny, leaving a ₹41 lakh demand under appeal before the CIT(A).
The line was broken into significant components on their own useful lives, shift-days were captured so Part C uplift applied automatically, and every asset was QR-tagged and reconciled in a supervised physical verification. Eligibility for additional depreciation was re-evaluated asset-by-asset, isolating only genuinely new plant & machinery.
The following year closed with a clean CARO report, 99.2% verification coverage, and a defensible additional-depreciation working that let the firm drop the ineligible claims and settle the balance of the dispute.
Case study is an illustrative, composite scenario based on common real-world situations; the company name is anonymised and figures are representative.
Put your plant's register on solid ground
Componentisation, shift depreciation, additional depreciation and CWIP — computed for book and tax, in parallel, from one register.