PRINCIPLES OF STOCK TAKING

1.    In order to ensure effective stock verification the following principles will be kept in view :-
a)    Verification is done from ground to ledger and not vice-versa, so that  any items for which
        ledger account have not been opened can be picked up.
b)    Verification of stock of different sizes of same item should be exercised simultaneously.
c)    Verification staff should be independent of stock holder.
d)    Stock taking is done in the presence of stock holder and his signatures for surpluses or 
       deficiencies obtained on the spot.
e)    Stock taking should be concentrated to a specific area or one or two stores at a time.
f)     serviceable or below specification stores not worth retention should be segregated
       immediately. Stores which are found badly affected by insects should be either
       destroyed immediately or stacked far away from other susceptible stores until
       orders are obtained from CFA.
g)    Stock under verification should be frozen.
l)     Ledger balances as well as nomenclature are not to be altered or modified in anyway
       without preparing suitable adjustment voucher.