Stock Audit Services · Overview

Stock Audit Services for banks, lenders & management.

Comprehensive stock audit services including inventory verification, fixed asset audits, and warehouse inspections — mandated by banks for credit limit assessments and conducted for management control across all industries.

Stock audits are a critical component of the credit monitoring framework for businesses with working capital facilities. Banks and financial institutions typically mandate annual or semi-annual stock audits for borrowers with fund-based limits above prescribed thresholds — to verify that the inventory and assets pledged as collateral actually exist, are properly valued, and match the figures reported in the Drawing Power statements.

Beyond the lender requirement, stock audits serve an equally important management purpose. In businesses where inventory represents a significant portion of assets — manufacturing, trading, pharmaceuticals, retail, FMCG — an independent physical verification identifies shrinkage, obsolescence, theft, and valuation errors that internal controls alone cannot catch.

Beyonte Compliances offers a full suite of stock audit services — inventory stock audits, fixed asset verification, and warehouse inspections — delivered by trained audit teams with experience across manufacturing, retail, trading, pharmaceuticals, and logistics sectors. Our reports are structured to meet both bank and management requirements in a single engagement wherever possible.

Our Stock Audit Services

Inventory Stock Audit

Physical count and reconciliation of raw materials, work-in-progress, and finished goods — with valuation review and comparison against book records and bank Drawing Power statements.

Fixed Asset Audit & Verification

Physical verification of all fixed assets against the fixed asset register — confirming existence, location, condition, and asset tagging for plant, machinery, vehicles, and equipment.

Warehouse Audit

On-site inspection of warehouse operations — verifying stock storage conditions, documentation, receipt and issue controls, and compliance with lender or regulatory requirements for warehoused goods.

Bank-Mandated Stock Audit

Stock audits conducted specifically to meet the requirements of consortium banks or individual lenders — with reports in the format prescribed by the bank and submitted directly to the credit department.

Drawing Power Verification

Verification that the Drawing Power claimed against cash credit or overdraft limits is supported by eligible stock and debtors — ensuring the borrowing base is accurately represented.

Obsolescence & Slow-Moving Stock Review

Identification of obsolete, slow-moving, damaged, or unsaleable inventory — with recommendations for write-down, disposal, or re-classification in the financial statements.

Multi-Location Stock Audits

Co-ordinated physical verification across multiple branches, depots, or manufacturing sites — with consolidated reporting that covers all locations in a single audit report.

Management Stock Audit

Independent stock audits commissioned by management for internal control purposes — not linked to any lender requirement — covering shrinkage analysis, valuation accuracy, and process recommendations.

Our Process

Scope & Date Confirmation

Agreeing the audit date, locations, and scope with the client and lender — including any specific formats or items required in the bank's mandate.

Pre-Audit Data Review

Review of the latest stock statement, fixed asset register, Drawing Power workings, and prior audit report to focus the physical verification on high-risk areas.

Physical Verification

On-site count of inventory or verification of assets — by category, location, and condition — with our team counting independently before reconciling with client counts.

Valuation & Reconciliation

Applying the correct valuation method to verified quantities and reconciling with book records, stock statements, and Drawing Power — identifying and quantifying all differences.

Report Delivery

Submission of the stock audit report in the required format — to the bank, management, or both — with a clear statement of findings, differences, and recommendations.

Why It Matters

✓Meets bank mandate requirements for working capital credit limits

✓Confirms Drawing Power is supported by verified, eligible stock

✓Identifies obsolete and slow-moving inventory before it distorts accounts

✓Experienced teams across manufacturing, retail, pharma, and logistics

✓Multi-location audits co-ordinated under a single engagement

✓Reports structured to meet both lender and management requirements

✓Strengthens internal controls and reduces shrinkage and pilferage risk

✓Delivered on agreed dates — no delays that affect credit limit renewals

Frequently Asked Questions

Banks typically mandate stock audits for borrowers with fund-based working capital limits above a prescribed threshold — usually ₹5 crore, though this varies by bank and facility type. Beyond the lender requirement, businesses in manufacturing, trading, pharma, and retail benefit from periodic independent stock audits as a management control measure.

Most banks mandate stock audits annually or half-yearly for borrowers with significant working capital exposure. Management-commissioned stock audits may be quarterly or at year-end. The frequency depends on the lender's credit policy and the nature and value of inventory held.

Drawing Power is the maximum amount a borrower can draw on a cash credit or overdraft facility — calculated as a percentage of eligible stock and debtors less creditors. A stock audit verifies that the Drawing Power claimed is supported by physically verified and correctly valued inventory. Inflated stock figures can result in over-borrowing, which is a serious credit risk and can trigger bank action.

Yes. We co-ordinate multi-location stock audits across branches, depots, warehouses, and manufacturing sites — deploying teams simultaneously where required — and deliver a consolidated report covering all locations within the agreed timeframe.

Verified stock. Confident lending. Clean records.

Talk to our team about a stock audit engagement that meets your bank's mandate and your own management requirements.