We are engaged in Physical verification of inventories, which is is critical to the company’s internal controls over current assets. Periodical verification of inventory items is carried out to verify the accuracy of inventory records, consumption or breakge and to assign the proper carrying value to that inventory, so that those assets are properly reflected in the financial records of the Company.
It is necessary to have checkpoints and controls over movement of inventory and to establish accuracy of records. One of the basic tools for this purpose is a physical count of the inventory on hand, which can be compared with the financial records to determine matching of financial records vis-a-vis physical inventory in hand.
Procedure for Inventory Verification:
Dates for year-end inventory are determined and informed to the respective department:
Central Stores closure dates for year end inventory will be sent to production, engineering, Maintenance departments:
Purchase orders placed to replenish stock will be minimized to reduce inventory on hand.