Tara Sanitary wares

Goodwill Tower, Pattom

Stock Audit Report

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SCOPE
Stock audit done as on 13th and 14th of August 2019 . The main objective of Stock
Audit was to review the existing systems, procedures, and documentation of stock.
Due to the large volume of stock, the physical verification of inventory of the
following brands of sanitary fittings stored in godown in the fifth floor was done.
(A) Jaquar Sanitary fittings.
(B) Grohe Sanitary fittings.

REPORT: FINDINGS AND SUGGESTIONS

Findings:

1. Physical Verification of stock

(A) Jaquar fittings : Nos. Annex.

Items as per stock register in Tally 465

Items physically verified 434

Items which could not be located 31 1

Physical quantity matching with the quantity as per stock register 356 2

Physical quantity which is in excess 38 3

Physical quantity which is in short 40 4

(B) Grohe fittings: Nos. Annex.

Items as per stock register in Tally 443

Items physically verified 363

Items which could not be located 80 5

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Physical quantity matching with the quantity as per stock register 304 6

Physical quantity which is in excess 26 7

Physical quantity which is in short 33 8

(C) Simpola Tiles * Nos. Annex.

Number of items as per stock register in Tally 426

Items physically verified 39 9

Items which could not be located 80

Physical quantity matching with the quantity as per stock register 12

(D) RAK Tiles * Nos. Annex.

Number of items as per stock register in Tally 205

Items physically verified 33 10

Items which could not be located 80

Physical quantity matching with the quantity as per stock register 4

*Note: Same type of Simpola and RAK tiles are kept in other godowns also, so
we could not come to a conclusion about the stock of the tiles.

2. In some cases the Goods are entered in the stock register on the basis of
Invoice when they are in transit.
3. Goods with same specification are stored at different places in the godown.

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4. It is noticed that the goods are blocked against an order/quotation by
reducing the quantity of the same from the stock by passing stock journal
entry but such goods are not kept separate.
5. The displayed items are issued without proper adjustment in the Stock
register.
6. Register for the items in display are not updated.
7. The balances of some goods are negative as per stock register, but they are
seen issued. (Annexure 11 )
8. Have noticed the following items which are not included in the stock register
 GROHE Euro style Exp. S/lever Mixer 33591002 - 2 Nos.(R3 C16)
 GROHE NTEMPESTA 100111 Hand Shower 28261001-2 Nos.
(R3 D13)
9. Delivery of wrong item:-
Case - I
GROHE Euphoria 260 Shower THM Bath 26114001
Stock as on 17/4 as per register - 2 Nos.
Stock as per Physical verification on 17/4 - 3 Nos.
Excess - 1 Nos.

GROHE Euphoria 180 SH System THM Bath 26114000

Stock as on 17/4 as per register - 4Nos
Stock as per Physical verification on 17/4 - 3 Nos.
Shortage - 1 Nos.
This may be due to wrong delivery of items. (Annex.12)
Case -II
Jaquar Sink Cock T/Mounted J5357 ND
Stock as on 17.04.19 as per Register - (-) 1 Nos.
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 Issue from 22/4 to 24/4 - 3Nos.

Jaquar S/Cock with Regular Swinging Spout 5357SD

Stock as on 17.04.2019 as per Register - 13 Nos.
Stock as per Physical verification on 17/4 - 8 Nos.
Shortage - 5 Nos.
This may be due to wrong delivery of items. (Annexure.13)

Case -III

Grohe New Temp.Cosmopolitan Head Shower NW 27541000

Stock as on 17/4 as per Register - 3 Nos.

Issue form 20/4 to 25/4 - 4 Nos.

This may be due to wrong delivery of items.

(Annexure 14)

Suggestions:

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1. Goods Received Note should be prepared for all purchases.
2. Stock entry should be made only on the basis of Goods Received Note
3. To enable easy access, the goods of same specification should be stored in a
systematic manner at one place in the godown.
4. FIFO method should be followed in the issue of goods from the godown .
5. System of Blocking of goods from the Stock
 As far as possible this System should be discouraged.
 Instead introduce the system of Labeling in the software.
 If blocked then the item should be kept in a separate rack.
 Goods blocked should not be issued without reversing the block.
6. The register for goods in display should be updated.
7. Procedure of issue of goods shown as negative in the stock register should
be discouraged. (Annexure )
8. When goods are to be issued from the display, it should be informed to the
accounts department before the issue for making necessary entry in the stock
register.