Unsaleable AUDIT SOP

AUDIT
 INTRODUCTION
Kellogg India Pvt Ltd serves a wide range of cereals made with
staple grains like wheat, corn, and rice.
 Brands
Kellogg India Pvt Ltd

Its offerings are rooted in the core Tata values of responsibility

and welfare of the community. Its brands are present in over 40
countries with a diverse
workforce spread across the world.
 Products Segment

Hot Cereals (HOTC) - Oats 9 Months Expiry

Breakfast Cereals (BFC) KPAK 12 Months Expiry

Product Segments

Ready to Eat Cereals (RTEC) 12 Monnths Expiry

Snacks Pringles 12 Months Expiry

 Unsaleable Stock Verification as per
list
SCOPE Defacing of Materials
OF Pictures Of Packed Bags/Boxes
Collection of Final Report alongwith
AUDIT auditor presence certificate
Posting of Hardcopy to Taxolution
via Indian post.
 PRE-AUDIT GUIDELINES
❑ Be on time: Reach Audit location on time.
Preferable time to reach at location is 10:00 a.m.
Auditor should be dressed in professional formals.
❑ If dealer is asking to reach after 10 a.m. then
Auditor will try to get him convinced as company
expects us to reach by 10 AM in morning. If he is
not agreed for 10 AM, then prior confirmation
need be taken from taxolution audit manager
before visit.
❑ As soon as auditor reaches at the dealer location,
he is required to take a selfie with Dealer’s name
board by (GPS Map Camera), and send it to the
Audit Manager. Link :-
https://play.google.com/store/apps/details?id=com.gpsmapcamera.g NOTE:- GPS Selfie is mandatory for
eotagginglocationonphoto in time and out time both for
❑ He should also take a selfie as he completes the Attendance purpose.
work and is about to leave the premises.
 PRE AUDIT GUIDELINES
❑ PRIOR WORK : Before making a visit, notify both the TSE & Dealer that you’re
visiting for the audit. Dealer needs to be informed for 3 things :-
1. Arrangement of Support staff for helping auditor to verify physical stock.
2. Product segregation for smooth and faster audit before visit of auditor.
3. Weighing Machine availability
❑ An auditor needs to cover physical stock verification of at least 3 lakhs value in
a single working day. If he is facing any difficultly with regards to availability of
support staff or dealer co-operation, then he should inform us immediately to get
aligned required support from company.
❑ Please make sure that you carry a laptop to the audit place for audit work and
you have received draft report from audit management team.
 STOCK VERIFICATION

❑ Product wise Stock list will be provided to Auditor.

❑ The auditor must cross-check the stock details provided by Kellogg with
the physical stock. No other stock should be accepted while audit.
❑ We’ll only accept either same MRP stock or more MRP stock for physical
verification.
❑ Lower MRP stock available physically than given in list will not be
accepted.
❑ Packaging photos, Damages stock photos and empty wrapper photos
need to be attached in report.
 Allowed Items

❑ Expired Stocks - Product will be accepted only within 4 months of

crossing expiry date. (For example, If products are expired in April, It can
be accepted for audit till August and Expired products before March
will be not considered for audit)
❑ Damage Stocks - All Damages including Manufacturing defect, Seal
open, packing defect received from CFA
❑ Please note if Product is damaged and expired both, then also we can
accept stocks within 4 months only.
 Disallowed Items

❑ Godown Expiry - Goods not invoiced by the Distributor and having

crossed the printed Best Before date in while in possession / storage of
Distributor
❑ Defective and Rat eaten stocks - Goods that are infested, damp
goods, goods that have suffered rodent or pest bites.
❑ Seal Open Stocks - Packages/Boxes that have been opened or
tampered with or are completely or partially damaged or destroyed
while at Distributor or retailer premises
❑ Empty Wrappers / Boxes
 Defacing of Stocks
Packaging of all Unsaleable Goods shall be defaced as provided below:
❑ Defacing of Boxes: Boxes to be torn/slashed horizontally/ vertically into at
least three (3) pieces using cutters or scissors and disposed in an
environmentally friendly manner by the
❑ Distributor Defacing of Bags in Box: Bags in Boxes to be cut into at least
three (3) pieces and disposed in an environmentally friendly manner by
the Distributor
❑ Pouches: Pouches to be cut into at least three (3) pieces and disposed in
an environmentally friendly manner by the Distributor
❑ While de-facing the Boxes, Bags in Boxes and Pouches:
❑ a. Packaging material and food will be segregated.
❑ b. The Segregated food shall be weighed by the Auditor and this will be
recorded in the Auditor’s Report.
 Defacing and Packaging

❑ All the products should be defaced before packaging into Boxes/ Bags.
❑ Defacing and Packing into box & bags should be done in front of the
Auditor.
❑ Auditor will supervise the defacing & disposal of all Unsaleable Goods.
❑ Total Packed Box count need to be mentioned in report.
❑ Report to be signed by the Auditor and countersigned by the Distributor.
This report has to be signed on date of audit before leaving Distributor
premises. SO/ ASM (Kellogg representative) to sign off on self-declaration
on audit report.
 REPORT FINALIZATION
❑ Final Report needs to be sent to Taxolution Team for final review on
kellogg@taxolution.co.in
❑ Auditor can not leave the audit place before final verification of report by Taxolution
team/ Manager.
❑ Once Audit report is reviewed, auditor has to obtain the Signature of SO/ ASM &
Distributor on all pages of the below sheets (in 2 sets) :-
I. AUDIT REPORT (UNSALEABLE STOCK VERIFICATION REPORT),
II. AUDIT ANNEXRUE,
❑ One set of All above signed sheets needs to be handed over to the distributor.
❑ Scan Copy & Second set of Hard copy should be taken and sent to Taxolution Team
after Seal & Signature on report only via Indian post.
Prepared By :-

13/19, Street No.-3,

Priyadarsani Parisar West, Behind
IDBI Bank, Nehru Nagar Bhilai,
Chhattisgarh
Pincode – 490020
Landline – 0788-4910787