Process

Production and Inventory Management

Sub
Process

Issuance / consumption of inventories

4.1

Issue rating

Medium

Controls over un-moved stock:

Finding:

Recommendation:

a) Total of 218 inventory items out of total sample of 811 pertaining to

Greige Fabric of LTM 1&2 which are slow-moving in inventories and
have not been issued till December 2015.

The requirements of the SOP should be complied

with to ensure that the obsolete inventory is
disposed on a timely basis. Evidence should be
retained for future reference and audit
verification purposes.

b) Total of 5609 inventory items out of total sample of 9104 pertaining to

Greige Fabric of LTM 3 which are slow-moving in inventories and
have not been issued till December 2015.
c) Total of 3324 inventory items amounting to Rs.7,122,612 out of total
sample of 5,557 pertaining to Spares & Supplies of LTM 1&2 Store
which are slow-moving in inventories and have not been issued till
December 2015.
d) Total of 3598 inventory items amounting to Rs.7,968,175 out of total
sample of 5,557 pertaining to Spares & Supplies of LTM 3 Store
which are slow-moving in inventories and have not been issued till
December 2015.
For details of instances noted above please refer the attached files;

Bailing Report
-1&2.xlsx

Bailing Report -3.xlsx Unmoved Stocked - LTM-1&2-Stock Value

LTM 3.xlsx
Report.zipx

Risk:
Working capital is being tied up in unnecessary items procured which
may cause liquidity problems.

Process

Production and Inventory Management

Sub
Process

Issuance / consumption of inventories

4.1

Issue rating

Medium

Controls over un-moved stock:

Management response

Responsible person

a-d) We are already in discussion regarding un-moved stock and data has
been shared with concern authority.

Manager Logistics
Agreed date of implementation
A to c) Immediate