Stock Audit Report Template — Bank Lender Engagement
STOCK AUDIT REPORT
Borrower: {{client_name}}
Lender Bank: {{bank_name}}
Date of stock verification: {{audit_date}}
Stock statement period ended: {{period_end}}
Location(s) verified: {{stock_location}}
Date of report: 29 May 2026
1. Engagement and Scope
This stock audit has been carried out pursuant to the engagement letter issued by {{bank_name}} dated ____________ to verify the inventory and book-debt position of {{client_name}} as charged to {{bank_name}} under working-capital facilities.
The scope of work, as per the bank's engagement letter, covered the following:
- Physical verification of stock at the borrower's premises on the verification date
- Reconciliation of physically verified stock with the stock statement submitted by the borrower to the bank for the period ended {{period_end}}
- Examination of stock register, stock movement records, and key supporting documents
- Aging analysis of inventory and identification of slow-moving / non-moving stock
- Review of valuation methodology and consistency with the audited financial statements
- Review of book debts and reconciliation with the drawing power computation
- Identification of any items that are obsolete, damaged, lying in transit, or pledged to other parties
- Compliance with the terms of sanction and any specific lender conditions
2. Inventory — Summary Position
| Particulars | As per Stock Statement (₹) | As per Physical Verification (₹) | Variance (₹) | % Variance |
|---|
| Raw materials | | | | |
| Work-in-progress | | | | |
| Finished goods | | | | |
| Packing materials | | | | |
| Stores and spares | | | | |
| Goods in transit | | | | |
| Total inventory | | | | |
3. Aging Analysis of Inventory
| Age bucket | Value (₹) | % of Total |
|---|
| 0 — 30 days | | |
| 31 — 90 days | | |
| 91 — 180 days | | |
| 181 — 365 days | | |
| Above 365 days (slow-moving / non-moving) | | |
| Total | | |
4. Slow-Moving / Non-Moving / Obsolete Stock
Items identified as slow-moving, non-moving or obsolete during the verification:
| Item description | Quantity | Book value (₹) | Estimated NRV (₹) | Remarks |
|---|
| | | | |
| | | | |
5. Valuation Methodology
The borrower follows the [FIFO / weighted-average / specific-identification] method for inventory valuation, consistent with the policy adopted in the audited financial statements. Stock is valued at the lower of cost and net realisable value, except for [list exceptions / nil].
Valuation matrix observed: ____________________________________________
6. Book Debts — Position
| Aging | Amount (₹) | % of Total |
|---|
| Up to 90 days | | |
| 91 — 180 days | | |
| Above 180 days (typically excluded from DP) | | |
| Total book debts | | |
| Eligible book debts (≤ 90 days) | | |
7. Drawing Power Computation
| Component | As per Stock Statement (₹) | As per Audit (₹) |
|---|
| Paid stock (after deducting creditors for goods) | | |
| Add: Eligible book debts | | |
| Less: Margin as per sanction (___%) | | |
| Drawing Power | | |
| Sanctioned limit | | |
| Outstanding as per bank records | | |
| Available limit / (Over-drawing) | | |
8. Insurance Cover
| Policy | Insurer | Sum Insured (₹) | Period | Bank named as loss-payee? |
|---|
| | | | Yes / No |
| | | | Yes / No |
9. Other Observations
- Compliance with terms of sanction: [Observed / Deviations noted]
- Maintenance of stock register and stock movement records: [Adequate / Improvements needed]
- Segregation of pledged / hypothecated stock from non-charged stock: [Adequate / Concerns]
- Storage and safekeeping arrangements: [Adequate / Improvements needed]
- Compliance with environment and statutory norms applicable to the warehouse premises: [Observed / Deviations]
10. Conclusion
Based on the work performed and the information and explanations furnished to us, the inventory position of {{client_name}} as at {{audit_date}}, in our opinion, is broadly in conformity with the stock statement submitted to {{bank_name}}, subject to the variances, observations and recommendations set out above.
This report is intended solely for the use of {{bank_name}} and should not be relied upon by any third party.
For {{firm_name}}
Chartered Accountants
Firm Registration No.: {{firm_registration_no}}
_______________________________
{{engagement_partner}}
Partner — Stock Auditor
Membership No.: {{icai_membership_no}}
UDIN: ____________________
Place: ____________________
Date: 29 May 2026
