Page 168 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 9: Store Finance and Controls

Notes
INR 4 billion and revenue of INR 7.65 billion in 2007. Moreover, the industry analysts felt
that though RMC constituted only 3% of the total cement business in 2007; its growth
opportunity was enormous. Thus, the question remained, whether L&T’s management
had properly valued its RMC business.

Source: http://www.ibscdc.org/Case_Studies/Finance,%20Accounting%20and%20Control/Finance%
20Accounting%20and%20Control/FAC0051IRC.htm
9.2 Stock Verification

Stock verification is a process of physically counting and checking inventory in the unit, against
its book balance at least once in a year.
Experience has shown that organizations in the Public Service lose a huge amount of financial
resources through stores and procurement related activities. These losses emanated from frauds,
inadequate stores and procurement management resulting in over/under procurement and
storage, wastage, and obsolesce.
Stock Verification is therefore established to provide a complete and continuous audit of stock
records, plant, furniture, equipment, allocate and unallocated stock where applicable.

Notes Stock Verification Unit is directly responsible to the Accounting Officer for a
comprehensive verification of all stock items and purchases of the Ministry/Extra-
Ministerial Department FR 2018, 2020, reporting on regular basis, its assessment of the
effectiveness with which procurement/purchasing and stores function are performed at
the Headquarters including all the states where NAPEP offices operate.

9.2.1 Duties of the Stock Verifier

Stock verification duties are divided into two categories, namely: Pre-payment Verification and
Post payment Verification: These are undertaking through the Capital and Resource Stores.

Prepayment Verification

The purchasing activities are to be subjected to verification, quantity, quality and price in order
to obtain value for money.
Supplies on local purchase order (LPO) and tender.

Works and services for repairs and maintenance contract on Job Order or Tender.
Self Assessment

State whether the following statements are true or false:

6. Stock verification is a process of physically counting and checking inventory in the unit,
against its book balance at least once in a year.
7. Experience has shown that organizations in the Public Service gain a huge amount of
financial resources through stores and procurement related activities.
8. Various losses emanated from frauds, inadequate stores and procurement management
resulting in over/under procurement and storage, wastage, and obsolesce.

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