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Bank Audit - Stock Statement

01 June 2021

In case of scrutiny of stock Statement, is it required by the bank to categorise stock as slow and fast moving, obsolete, etc.

To consider an account as npa due to non submission of stock Statement for how many months?

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 01 June 2021

In case of scrutiny of stock statement, bank should carefully scrutinize all the pros and cons of the stock including visiting the premises, stock should be splitted into category of nature of stock, fast and slow moving goods etc. for quarterly period of months

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Udit Vyas (453 Points)
Replied 03 June 2021

Stock statement is a document on the basis of which DP is calculated. Drawing Power is updated in regular intervals using this.
One of the major item determining DP is stock as this forms aprt of W.C and it would be inappropriate to provide DP on the stock that is slow moving or non moving and hence seperation is required to be shown in the statement.

Further, account becomes irregular if the stock statement is not submitted for more than 90 days as the Borrower is enjoying an obsolete DP.

Hope this helps:)

Sakshi Mehta (-) (252 Points)
Replied 03 June 2021

Thanks 😊

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 06 June 2021

Your welcome

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 10 September 2021

Scrutiny of both the files along with the account operations and DP Register with reference to terms of Sanction helps stock auditor to gain insight about the borrower' affairs and conduct audit of the account. Documents Required From the Bank Branch Officials: