Stock Audit · Overview

Stock Audit Services for accurate, bankable inventory records.

Independent verification of inventory, fixed assets, and warehouse operations — providing banks, lenders, and management with an accurate, independently certified picture of your physical stock position.

Stock audits are most commonly required by banks and financial institutions as a condition of working capital facilities. Lenders need independent verification that the inventory and assets offered as collateral actually exist, are in the condition represented, and are valued correctly. A credible, independently conducted stock audit report is what gives them that assurance.

At NDS Advisors, we conduct stock audits for a wide range of businesses — manufacturers, traders, warehousing companies, retailers, and commodity businesses — across industries including FMCG, pharmaceuticals, chemicals, steel, textiles, and agriculture. Our field teams are experienced in physical stock counting, warehouse documentation review, and independent valuation confirmation.

We provide three core stock audit services: inventory stock audit (physical count and reconciliation of raw materials, WIP, and finished goods), fixed asset audit and verification (tagging, reconciliation, and condition assessment), and warehouse audit (compliance, documentation, and control review for warehousing operations).

Our Stock Audit Services Services

Inventory Stock Audit

Physical count and reconciliation of raw materials, work-in-progress, and finished goods — with independent valuation confirmation and bank reporting.

Fixed Asset Audit & Verification

Physical verification, barcode/RFID tagging, condition assessment, and reconciliation of fixed assets against the asset register.

Warehouse Audit

Operational and compliance audit of warehousing facilities — covering documentation, storage conditions, pest control, and handling procedures.

Bank-Mandated Stock Audit

Independent stock audit conducted to satisfy bank or NBFC working capital facility conditions — with report in lender-prescribed format.

Collateral Verification

Physical verification of assets offered as collateral for term loans or working capital facilities — confirming existence, condition, and location.

Stock Valuation Review

Independent review of inventory valuation methods and application — ensuring consistency with accounting standards and lender requirements.

Discrepancy Investigation

Investigation of material discrepancies between book records and physical stock — identifying causes including fraud, pilferage, or accounting errors.

Periodic Stock Monitoring

Ongoing quarterly or monthly stock audit engagements for businesses with bank-mandated continuous monitoring requirements.

Our Process

Scope & Planning

Agreement on locations, stock categories, counting methodology, and reporting format — with lender requirements reviewed where applicable.

Physical Count

Field team physically counts and records all inventory by SKU, batch, and location — using systematic blind-count methodology.

Reconciliation

Physical count data is reconciled against bin cards, stock ledger, and purchase and sales records — with variance analysis.

Valuation Review

Confirmation that inventory is valued at the lower of cost or net realisable value, consistent with accounting standards and lender requirements.

Report Delivery

Detailed stock audit report delivered in the required format — including physical count summary, reconciliation, variances, and observations.

Why It Matters

✓Satisfies bank and NBFC working capital facility requirements

✓Provides independent confirmation of inventory values

✓Identifies stock discrepancies, pilferage, and obsolescence

✓Supports accurate balance sheet presentation of inventories

✓Detects and deters inventory fraud in warehouse operations

✓Confirms collateral adequacy for secured lending facilities

✓Maintains lender confidence through consistent reporting

✓Covers inventory, fixed assets, and warehouse in one team

Frequently Asked Questions

A stock audit is an independent physical verification of inventory and assets — confirming that the stock offered as collateral for a working capital facility actually exists, is in the condition represented, and is valued correctly. Banks require periodic stock audits to protect their security and to ensure borrowers are not overstating collateral values.

The frequency depends on the lender's requirements. Banks typically require annual stock audits for smaller facilities, half-yearly for medium facilities, and quarterly for larger or higher-risk facilities. Some lenders require concurrent stock monitoring. We conduct audits at whatever frequency your lender mandates.

An internal inventory count is conducted by the company's own staff for their own records. A stock audit is conducted independently — by an external auditor — specifically to provide independent assurance to a third party (usually a bank or lender) that the inventory position is as represented. The independence and methodology of a stock audit give it credibility that an internal count does not have.

Our stock audit report includes the date and location of the count, the methodology used, a summary of physical quantities counted by category, reconciliation with book records, explanation of significant variances, observations on storage conditions and stock quality, and our overall opinion on the accuracy of the inventory position.

Yes. We conduct multi-location stock audits — including across warehouses, factories, consignment agents, and third-party storage locations. Multi-location audits are co-ordinated so that counts are conducted simultaneously to prevent stock transfer between locations during the audit.

We document and report all significant discrepancies in the audit report. Where discrepancies are material, we investigate the cause — whether accounting error, pilferage, valuation difference, or process failure — and report our findings. The lender and management then decide on appropriate action, which may include further investigation or adjustment of the working capital facility.

Independent stock verification your lender can rely on.

Talk to our stock audit team about inventory verification, fixed asset audit, and warehouse audit services for your business.