Who needs a stock audit.
Banks with working capital loans
Banks commission stock audits of borrowers to check the security behind cash credit limits.
Companies with bank limits
To make sure stock statements and drawing power are accurate before the bank's own audit.
Parents and brand owners
Independent counts of inventory held by an Indian subsidiary, distributor or contract manufacturer.
What a stock audit covers.
- Physical verificationCounting stock on site, by sample or in full, with cut-off checks.
- Records against physicalReconciling counts with stock ledgers and statements.
- ValuationCost, net realisable value and the valuation method used.
- Ageing and conditionSlow-moving, obsolete and damaged items.
- Ownership and insuranceStock belonging to others, stock with third parties, and insurance cover.
- ReceivablesFor bank audits, the debtors also included in drawing power.
Drawing power for borrowers.
For cash credit facilities, a bank lets a company borrow up to its drawing power: the value of eligible stock and receivables, less a margin. If stock statements overstate the stock, drawing power is overstated too. Our report confirms the eligible values and the correct drawing power.
How we carry out a stock audit.
Agree scope and locations
Which sites, which items and which date.
Obtain records
Stock ledger, statements and previous reports.
Physical verification
Counts on site, with photographs and signed count sheets.
Value and age
Valuation, ageing and reconciliation of differences.
Issue the report
In the bank's format, or a report for your UK management.
Why clients choose us for audits.
Every audit is led and signed by Chartered Accountants in India.
Findings written for UK boards, audit committees and group auditors.
A written engagement letter with scope, timetable and fee.
Independence checks and a second-partner review on every report.
Encrypted document sharing, with site visits where the work needs them.
Clear, prioritised recommendations your team can act on.
Stock audits in India for UK businesses and lenders.
We carry out audits in India for UK groups, investors and lenders headquartered anywhere in the UK, reporting in a form their UK boards and auditors can use.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Stock audit FAQs.
Need stock in India independently checked?
Tell us where the stock is and why. We will plan the visit and the report.
This page is general guidance based on the Companies Act, 2013, Indian tax law and regulator guidelines as they stand. It is not legal or financial advice for your situation. Thresholds and requirements can change, so please speak to us before acting on it.