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Independent verification of inventory to protect business value and lender confidence.
Stock Audit is a highly sought-after service, especially by banks, NBFCs, corporates, and manufacturing/trading companies. It is used to verify the correctness of inventory reporting, prevent fraud, and ensure lenders’ or management’s confidence.
Why Stock Audit Matters
For businesses with significant inventory — manufacturing, trading, retail, or e-commerce — stock is a critical current asset. Lenders, investors, and management rely on accurate reporting of stock levels.
A Stock Audit ensures:
- Correct valuation of inventory (as per IND-AS/IFRS)
- Identification of obsolete, damaged, or slow-moving stock
- Detection of fraud, pilferage, or misreporting
- Confidence for banks/NBFCs funding against stock
- Improved supply chain & working capital management
Without independent stock audits, businesses risk:
- Inflated stock reporting ? higher credit exposure for lenders
- Non-compliance with accounting standards & tax laws
- Reduced profitability due to leakages & inefficiencies
Our Stock Audit Services
- Physical Verification of Inventory - Matching book records with actual stock
- Valuation of Stock - FIFO, Weighted Average, NRV (Net Realizable Value) methods
- Movement & Aging Analysis - Identify slow-moving, obsolete, or excess stock
- Internal Control Review - Evaluate stock management policies, procedures & ERP controls
- Bank/Investor Reporting - Prepare audit-ready stock reports for lenders and stakeholders
- Compliance with Accounting Standards - IND-AS/IFRS-compliant stock valuation
- Surprise Stock Checks - Random audits to detect fraud & pilferage risks
- Reconciliation of Records - Align stock statements with books of accounts
Why Choose FinnovateAI?
- Independent & Objective Audit - Trusted verification for management & lenders
- Multi-Industry Expertise - Manufacturing, FMCG, Pharma, E-Commerce, Retail, and more
- Bank-Approved Audit Practices - Align with RBI/Bank stock audit requirements
- Technology-Enabled - Barcode/RFID matching, ERP-integrated checks
- Fraud & Risk Mitigation - Proactive detection of misreporting & pilferage
- Actionable Insights - Beyond reporting, we suggest process improvements
Our Process
- Scope Definition - Agree with management/lenders on scope & objectives
- Data Collection - Extract stock records, valuation reports, ERP data
- Physical Verification - Conduct site visits, warehouse checks, and reconciliations
- Analysis & Reporting - Identify variances, leakages, and compliance issues
- Final Report - Deliver detailed audit report with findings & recommendations
Who Needs It?
- Banks & NBFCs - Funding against stock for working capital
- Manufacturers & Traders - Inventory-heavy businesses needing independent review
- Retail & FMCG Companies - Multi-location, high SKU volume management
- Pharma & Healthcare - Sensitive inventory with expiry & compliance risks
- E-Commerce Startups - Inventory control across warehouses
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