Stock Audit · Inventory

Inventory Stock Audit that gives lenders and management certainty.

Independent physical count, reconciliation, and valuation of your inventory — delivering a stock audit report that satisfies bank requirements, identifies discrepancies, and gives management a true picture of stock position.

Inventory is often the largest single asset on a trading or manufacturing company's balance sheet — and one of the most susceptible to misstatement, pilferage, and valuation error. Banks offering working capital facilities need independent confirmation that the inventory securing the facility is actually there, in usable condition, and correctly valued. That is what an inventory stock audit provides.

NDS Advisors conducts inventory stock audits across raw materials, work-in-progress, and finished goods — using systematic physical counting methodologies that ensure complete coverage across all storage locations, bins, and godowns. Our field teams are experienced across industries including FMCG, pharmaceuticals, chemicals, textiles, steel, agri-commodities, and retail.

Our audit process is designed to satisfy the requirements of banks, NBFCs, and other lenders — with reports delivered in the format specified by your lender and within the timeline required. We can also conduct concurrent audits, surprise audits, and periodic monitoring engagements at the frequency your facility requires.

Our Inventory Stock Audit Services

Physical Stock Count

Systematic physical count of all inventory — raw materials, WIP, and finished goods — across all warehouses, godowns, and storage locations using blind-count methodology.

Bin Card & Ledger Reconciliation

Reconciliation of physical count with bin cards, stock ledger, purchase records, and sales records — with detailed variance analysis by SKU and location.

Inventory Valuation Review

Independent review of inventory valuation — confirming application of lower of cost or NRV, consistency with prior periods, and compliance with lender requirements.

Slow-Moving & Obsolete Stock Identification

Identification of slow-moving, non-moving, expired, or obsolete inventory — with quantification of impairment risk and recommendations for write-off.

Bank-Format Stock Audit Report

Preparation of the stock audit report in the specific format required by your bank or NBFC — with all required schedules, certifications, and observations.

Surprise / Unannounced Audit

Unannounced physical stock count at the lender's request — providing an unplanned verification that deters manipulation and provides higher assurance.

Multi-Location Stock Audit

Co-ordinated simultaneous stock audit across multiple warehouses, factories, and consignment agent locations — preventing stock transfer during the audit.

Concurrent Stock Monitoring

Ongoing monthly or quarterly stock audit for businesses with bank-mandated continuous monitoring requirements — with monthly report to the lender.

Our Process

Scope & Lender Requirements

Review of lender instructions, facility terms, and required report format — agreeing on locations, categories, and audit date.

Pre-Audit Documentation Review

Review of stock ledger, bin cards, purchase and sales records, and prior audit reports before fieldwork begins.

Physical Count Fieldwork

Field team physically counts all inventory by location, SKU, and batch — using a pre-printed count sheet with blind-count methodology to ensure accuracy.

Reconciliation & Variance Analysis

Count data reconciled against book records — with all significant variances investigated and explained in the audit working papers.

Report Preparation & Delivery

Stock audit report prepared in lender-required format, reviewed, signed, and delivered within the agreed timeline.

Why It Matters

✓Satisfies bank and NBFC working capital facility conditions

✓Provides independent confirmation of inventory existence and value

✓Identifies pilferage, obsolescence, and valuation errors

✓Supports accurate balance sheet inventory presentation

✓Deters inventory fraud through visible independent oversight

✓Covers all locations simultaneously to prevent stock transfer

✓Surprise audits provide higher assurance for lenders

✓Consistent reporting format across multiple audit periods

Frequently Asked Questions

Banks offering working capital facilities against inventory collateral need periodic independent confirmation that the inventory exists in the quantity and condition represented. Without an independent audit, the bank relies entirely on the borrower's records — which may be inaccurate, manipulated, or out of date. The stock audit protects the bank's security interest.

Blind counting means the physical count team counts stock without reference to the system quantity records — they count what they see and record it independently. The count is then compared to the book records as a separate step. This prevents the counter from being influenced by what the system says should be there, improving accuracy and detectability of discrepancies.

We identify inventory that has not moved within a defined period (typically 6 or 12 months) and flag it separately in the audit report. Expired goods, damaged stock, and items below minimum quality standards are similarly identified. The audit report quantifies the value of such stock and recommends appropriate write-down or write-off — which affects the borrowing base calculation.

Yes. Many banks request surprise stock audits with little advance notice to the borrower — to prevent preparation or manipulation of stock records. We can mobilise our field teams for surprise audits across most locations in Maharashtra and major metros within 24 to 48 hours. Nationwide co-ordination is available with appropriate lead time.

Concurrent stock monitoring is an ongoing engagement where our team reviews the borrower's stock records, drawings, and inventory position on a monthly basis — rather than conducting a one-time annual audit. It provides higher assurance to lenders with large facilities and allows early detection of deterioration in the borrowing base.

Timeline depends on the size of the warehouse, number of SKUs, and organisation of the storage area. A single warehouse with 500 to 1,000 SKUs typically takes one full working day. Larger operations with multiple locations may require several days and multiple teams. We provide a time estimate after reviewing the scope at engagement start.

Accurate inventory counts your lender can trust.

Talk to our stock audit team about physical count, reconciliation, and bank-format report delivery for your working capital facility.