LETTER HEAD
Date:-15/03/2015
STOCK AUDIT REPORT
M/s……………….
……………………………………
Name of the Directors
Conducted on Behalf of Bank Of Baroda
Name of the Auditors
Date of Visit (Unit/Plant wise)
Banking Arrangements
If Consortium, Then Lead Bank Bank Of Baroda
Stock/Receivables Verified as of 23/02/2015
Position of the account as on the date of inspection
Fund Based:-
Balance
as on
23-Feb- Sanctio
Bank Name CC Account No 2015 n Limit
Bank of Baroda
Corporation Bank
Canara Bank
Syndicate Bank
Oriental Bank of
Commerce
Total 265.15 275
Bank of Baroda
Bank of Baroda
Bank of Baroda
Bank of Baroda
Bank of Baroda
Bank of Baroda
Total 31.92 37.6
Non Fund Based: - NIL
1 Brief Comments on: Composition Amount Percentage
Stock Of stock (Crores)
Raw
Material
Finished
Goods
Stores Spares
/ Other
Inventory
Total
A Condition of Stocks Raw Material is % of the total stock held
by the company. Raw material such as
Solvent Mustard, Sunflower & R B Oil is
properly stored in tanks situated at
factory site. From here Oil is taken for
filter process to remove unwanted
Particles from oil and finally it is
transferred to packing Department where
it is packed in various packing at various
brand name. All stock Raw Material,
Finished products, and packing material
is properly stored at factory site .
Overall condition of stock was found
satisfactory.
B Age of Stocks Not older than 90 days
C Valuation of Stocks Raw Material at Cost, Finished goods at
net Realizable Whichever is lower.
D Rejected stocks if any Nil
E All Stocks, Building, Plant & Machinery
Insurance Coverage and Stock etc are adequately insured.
2 Receivables: Age of Receivables Book Debts as on 23-02-2015 -
(a)
(b) Disputed receivable If any No disputed receivables were reported.
( c)
Doubtful Debts Reportedly there are no doubtful debts.
3 Creditors Party has submitted creditors List of Rs
Creditors are subjected to verification.
4 Other areas covered (such as turnover in Satisfactory
account, transaction with other Bank
etc.)
Part II 1. Main Report Working Capital facilities (fund based and non fund based) enjoyed
with Bank / Consortium of Banks and position of account with various Banks.
Balance as on
Bank Name CC Account No 23-Feb-2015 Sanction Limit
Bank of Baroda
Corporation Bank
Canara Bank
Syndicate Bank
Oriental Bank of Commerce
Total
Bank of Baroda
Total 31.92 37.6
2 Security: Primary * First Parri Pasu charges on entire fixed
(a) assets of the company for term Loan. *
First Parri Pasu charges on entire Current
Assets of the company and 15 % Margin
on Bank Guarantee and Letter of Credit
in the form of FDR.
(b) * Various Commercial & Residential
Assets in the name of Smt.Ragini
Collateral Khandelwal , Ashish Khandelwal,
Swati Khandelwal, Shri Ghanshyam
Khandelwal, Smt Richa Ravikar, M/s
B.L. Agro Oils valuing at
Rs 68.95 Crore
3 System of maintenance of stock & stock All Records are maintained
record computerized
(a) Physical verification & condition of
stocks
Yes, Bank Name Plate was properly
Display of Bank's name plate displayed at site
(i) Basis of valuation: Scale We have carried out physical verification
of stock lying at the factory site on
23.02.2015. All the stock is properly
stored at factory site. We have taken
stock as per stock register and tried to
tally the stock with Physical stock
register on sampling basis. As per our
observation on sampling result and in a
view, Stock declared by the borrower is
acceptable.
(ii) Stock were lying in the factory area
which is situated at various site situated
in Parashkhera Industrial Area . Divided
in Packaging Unit, Refinery Unit. The
factory & storage tanks are well
Location and Upkeep of godowns maintained
(iii) Location, storage & upkeep of stock Separate area are allocated for storage of
raw material and finished goods. All the
raw material stocks were lying in large
tanks with reasonable protection thereof
and finished goods is stored at factory
site which is properly covered. Condition
of storage is quite satisfactory.
(iv) Observation of Verification Raw Material
It consists of edible oils, Soya oil which
is 75.69 % of total stock. Oil is directly
stored in tanks situated at factory site
through pipelines and stored properly.
We have carried out sample physical
verification and have not found any
material discrepancy while comparing
the same with the stock records on test
check basis.
Finished Goods
Finished Goods of the company are
packed oil such as peti pecked and tin in
various brand name maintained by the
company which is 17.79 % of total
stock. Stock is properly packed and
stored and ready to dispatch. No
discrepancy was found on physical
verification done on a Sample basis.
Stores & Spares
Reported on estimation basis. As
discussed and application given to us by
the management, in our opinion stock
position at the factory was good.
However the Stores & Spares Ratio have
reduced from 13.35% to 6.52% in the
current year.
(b) Verification of stocks sent/ received for
job work/ in transit Not Applicable
(c The company is maintaining
computerized records for raw material
Maintainance of Stock records (including and finished goods. These were up to
excise records, if any) date.
(d) All stock is well maintained and stored
at factory site. Quality of stock is good
and stock is ready to use/sale As
company is its peak season so no non-
Age and quality of stock including moving/slow stock is lying at factory
position of slow/non-movie stock in % site.
4(a) Whether stock statements are submitted Yes, Stock statements are submitted
in prescribed format and within monthly in prescribed format and within
stipulated time. stipulated time period
(b) Whether letters of credit opened during
the relevent period and stock received on
account of the same properly reflected in
the borrower's books and submitted to
the branch. Yes
5 As per sanction book debts upto 90 days
are to be taken in consideration to arrive
Analysis of Receivables at drawing power
(a) Book Debts as on 23-02-2015
Verification of Receivables age of Rs. 195.97 Book Debts upto 90 days
receivables chances of recovery position Rs. 195.97 Book Debts beyond 90 days
regarding confirmation of balances from Nil
debtors, dispute on outstanding Doubtful Debts: No
receivables if any:- Doubtful debts were reported to us.
(b) Whether book debts statements are Yes,
submitted party wise and age wise
c) Whether Quarterly statement of debtors Yes, Borrower submitted quarterly
submitted to the branch are duly verified statements of debtors but branch should
by the Chartered Accountants properly follow the same.
(d) Discrepancies, if any found in reporting
in verification of borrower's records/
bills/ invoices/ raised and statement of No such discrepancies found to us during
book debts submitted to the bank test check
(e) Whether advance received from the are
properly accounted. Yes
6 Position of Creditors for purchase of raw
material, stores and spares
(a) Whether outstanding amount of creditors
is properly stated in the stock statement
(including unpaid bills under LC for
goods) Yes
(b) Any long outstanding creditors, if so give
reasons There are no long outstanding creditors .
7 Comment on treatment of inter-group/
inter divisional sales/ purchase and
comments thereon Yes
8 Routing of banking transactions & other
key observations Satisfactory
Value of security available for drawing power as on:23/02/2015
(As assessed by the Auditors)
S.no. Particulars Amount (Rs. in crores )
1 Raw Material & Loose Oil
2 Finished Goods
3 Consumable Stores / Chemicals
Total Stock
3 Less: Sundry Creditors
4 Less: Margin 25%
Total Value (A)
5 Debtors ( Less than 90 days)
6 Less: Margin 25%
Total Value (B)
Calculated Drawing Power (A+B)
Sanctioned Limit
CC Account Outstanding
(i) Value of security available for drawing power as on:23/02/2015
(As reported by the Company in Stock/Book Debt Statement)
S.no. Particulars Amount (Rs. in crores )
1 Raw Material & Loose Oil
2 Finished Goods
3 Consumable Stores / Chemicals
Total Stock
3 Less: Sundry Creditors
4 Less: Margin 25%
Total Value (A)
5 Debtors ( Less than 90 days)
6 Less: Margin 25%
Total Value (B)
Calculated Drawing Power (A+B)
Sanctioned Limit
CC Account Outstanding
Shortfall in drawing power, if any, as assessed by Auditors.NIL
Variance, if any, in calculations of drawing power as per Bank’s guidelines .
(Rs in Crores)
Value as Value as Variance, if Reasons for
assessed by the reported by any variance
Auditors the Company
Stocks NIL N/A
Receivables NIL N/A
For …………………
Chartered Accountants
.
(Partner)
FRN: - .
