Firm name.

Chartered Accountants

Address-

Mob no. 

e-mail- 

To,
The Zonal Manager

Bank name
 Zone.

Dear Sir,

Sub. :   Stock  Audit  Report of M/s. -------------------------

Please find enclosed two copies of the Stock Audit Report of M/s -------------------

Thanking you,

Yours faithfully,

For , firm name.

Chartered Accountant

Partner
     Ca name

M.No.-

Date-  
Place- 

FIRM NAME.

Chartered Accountants

Address-

Mob no. 

e-mail- 

To,

The Zonal Manager

Bank -----

-------Zone.

Dear Sir,

With reference to your Letter no. --------- dated -------, we have been appointed to carry out the stock verification of M/s ----------------------------------, Ram Nagar, Shahganj, Jaunpur (U.P.). we visited the godown and administrative office of the borrower on 02.08.2016 to carry out the captioned assignment.

SCOPE-:

The scope of the work assigned is covered as mentioned below-

1.	Physical verification of stock. 

2.	Identification of slow moving/obsolete stocks and comments on movement/turnover of stocks. 

3.	Identification of unpaid stocks. 

4.	Valuation of stock with reference to basis of valuation to basis of valuation adopted by unit/prevailing market price. 

5.	Receivables audit, including age-wise analysis, comments on realisability etc. 

6.	Any other point in the interest of bank. 

WORK DONE-:

We have carried out the detailed examination of books of account as made available and maintained by M/s. ----------------------------------, (ADDRESS.) for the objective, analysis of sales, debtors, creditors and valuation of inventory. We have also carried out physical examination of stocks lying at borrower’s godown at -------------on --------.

APPROACH & METHODOLOGY-:

We have taken ------DATE------ as the cut-off point for the purpose of our audit. We have test checked the purchase and sale bill for the purpose of valuation of inventory. We have also taken the stock statement provided by the borrower reflecting stock position of -------as base document for the purpose of stock verification.

FIRM NAME.

Chartered Accountants

Address-

Mob no. 

e-mail- 

STOCK AUDIT REPORT

OF
M/s ----------------------

(ADDRESSS----------------------.)

Date of Stock Audit :	-	

Name of the Stock Auditors :  	--------------. (Chartered Accountants)
--------------- (Partner)

(1) Zone: 	BRANCH:	

BANK NAME
(------------)

(2)Name of the borrower:							
Constitution & Address							
		M/s ----------------------------------				
		(Proprietorship Firm)				
		ADDRESS)				
							
(3) Names of Group/ Sister concerns if							
any:							
			N.A.				
							
(4) Business Activity:							
			-				
							
(5) Present Credit facilities with our							
Bank.	Date of	Sanction -	02.08.2016				
(Rs. In lakhs)	Facility	Limit	Renewal	Pri.Security	DP O/S	
	Overdues					
	------			--	---	---	

				Details of security		Value	Dt. of valuation/	
											Name of Valuer	
				i) Primary							
				Stock & Debtors				
				ii) Collateral							
				Property					

(6)	Banking	arrangement							
sole/multiple/consortium										
If in consortium, Name of leader and								
BOM												
Share (% & amount of credit limit):								
								
(7)  Compliance  of  Terms  and									
conditions.								
								
Operations / Performance of the									
account at Branch										
(8)  Whether  the  account  is  being									
regularly actively operated.						
								
(9) Whether sales are being routed									
through the account, Random check of								
10  credits  with  sales  realization			
including bills.											
								
(10) Whether stock statements are									
being submitted regularly.									
i) Date of last stock statement					
ii) Whether DP is being calculated.			
Check DP register. If not maintained								
give remarks.											
iii) Details of insurance										
a)	Amount of Insurance policy of				
	stock / security.										
b)	Valid from						
c)  Any irregularity	observed  in				
	respect of Insurance.								
								
(11) Name of the person contacted at									
unit with designation.					
a)  Whether	bank’s	name plate							
	has	been	prominently								

displayed.		
b)  Premises in which stocks /		
stores / spares are kept		
c)	Condition		of		storage					
	viz.access		ability	to					
											
	godowns, open or covered,							
								
	owned   or   rented,   in   the							
	premises   or   in   godows   /							
	factory of third party etc.							
12)  Position  of  Stocks  –    Physical							
verification and value as per estimates.							

13) Calculation of DP											
									A	Total Stock (Net of obsolete / non				
										moving /slow moving stock etc.)				
									B	Add  Book  Debts  (asper  debt				
										statement) Less than 90 days				
									C	Less creditor for purchase				
														
										Total Paid Stock & Book Debts o/s				
										upto 90 days				
										Less prescribed margin @ 25%				
														
										D P against stock & book debts				
										
a)	Whether	Physical	facilities							
	available for storage of stocks.					
											
b)	Give	details	of	physical							
	movement of stocks.									
											
c)	Give	details	of	storage							
	characteristics of stocks and its							
	life.													
												
d)	Details	of	slow	/	non moving							
	stocks	and		systems  /					
	procedure	existing	to identify							
	slow and non moving stocks							
	and treatment given to such							
	stocks.													
											
e)	Comments	on	quality	of							
	receivables, their genuineness			
	and reliability etc,	giving	age-					
	wise breakup thereof.  Age-							
	wise analysis	of	receivables,							
	showing quantum of bad and							
	doubtful	debts	indicating	the							
	basis for ascertaining such bad							
	and doubtful debts.  Non –							
	trade	receivables	if	any,							
	included	be		separately							
	furnished.												

f)	Method of valuation of stocks			
							
g)	Whether		proper	internal	/		
	verification	of		stock	and		
	records	properly	maintained		
	Management.							
			
h)	Whether obsolete / more than		
	six months old stock excluded		
	or not while calculating DP.			
			
i)	Has the factory / unit been		
	closed due to lockout / strike or		
	the	production	has	suffered		
	due to labour unrest during the		
	year? Give details						
					
j)	Whether	the branch	officials		
	have	visited	the	borrower		
	during the year? Give date		
	details.									
						
k)	Wherever		required,	whether		
	registered	with		ROC	within		
	prescribed time (Form 8 & 13		
	filled or not).							
			
l)	Specific comments of diversion		
	of Funds, if any observed.			
						
m) Comments	on		arrears	of		
	Statutory dues and obligations		
	if any.									

For, FIRM, NAME.
Chartered Accountants

Partner		
CA NAME	For ,M/s ----------------------------------	
M.No.- 	(Proprietor)	

Date:  
Place: 

FIRM NAME.					
Chartered Accountants					
			e-mail- 		
				
	VALUATION OF STOCK AND DEBTORS			
		(AS ON 25.07.2017)				
Annexure 1						
						
Description	No. of Bags	Kg per Bag	Rate(Kg)	Value		

PRODUCT						

						

						

						

						

						

						

Debtors						

						

						

						
						
TOTAL CLOSING STOCK						

SUNDRY DEBTORS