Practical compliance guides

Audit · 13 min read

Stock Audit in India 2026: Complete Guide for Businesses and Borrowers

A manufacturing unit in Chakan, Pune discovered Rs 18 lakh of unrecorded scrap during a stock audit commissioned by their banker. The scrap...

CACA Sundaram Gupta · Apr 7

Audit · 11 min read

Bank Stock Audit in India: RBI Guidelines, Who Needs It and When It Is Mandatory

A textile manufacturer in Surat with a Rs 8 crore CC limit had been submitting monthly stock statements showing stock valued at Rs 12 crore....

CACA Sundaram Gupta · Apr 7

Audit · 16 min read

Stock Audit for Working Capital Borrowers: What Banks Verify and How to Prepare

A pharma distributor in Mumbai with a Rs 6 crore CC limit received a stock audit notice from his bank in February 2026. The bank-appointed C...

CACA Puja Pradhan · Apr 7

Audit · 14 min read

Common Deficiencies Found in Bank Stock Audits and How Businesses Can Fix Them

A CA conducting a bank stock audit at a textile unit in Surat found 7 separate deficiencies in a single audit: Rs 12 lakh of unrecorded scra...

CACA Puja Pradhan · Apr 7

Audit · 12 min read

ABC Analysis in Stock Audit: How to Focus on High-Value Inventory First

A stock auditor at an auto-component manufacturer in Chakan, Pune was given 2 days to verify inventory worth Rs 8 crore across 1,200 SKUs. W...

CACA Sundaram Gupta · Apr 7

Audit · 14 min read

Stock Audit Sampling Methods: How Auditors Select Items Without Counting Everything

A borrower in Chakan questioned the stock auditor: "You only counted 180 items out of 2,400 SKUs in our warehouse. How can you say the stock...

CACA Sundaram Gupta · Apr 7

Audit · 16 min read

CARO 2020 and Inventory: What Statutory Auditors Must Verify and Report

A statutory auditor of a mid-size auto component manufacturer in Pune faced a reporting dilemma during the FY 2025-26 audit. The company had...

CACA Puja Pradhan · Apr 7

Audit · 14 min read

Stock Audit Report Format for Banks: Mandatory Components Under RBI Guidelines

A bank's credit officer in Mumbai rejected a stock audit report submitted by a CA firm because it contained only a physical count summary an...

CACA Puja Pradhan · Apr 7

Audit · 11 min read

Stock Audit for Pharmaceutical Companies: Batch Tracking, Expiry Dates and Cold Chain

If you manage pharmaceutical inventory, you know that one mislabelled batch or a single cold chain breach can mean lakhs of rupees in write-...

CACA Sundaram Gupta · Apr 7

Audit · 13 min read

Perpetual vs Periodic Inventory System: Which Makes Stock Audits Easier and Cheaper?

Two auto-component manufacturers in Chakan, Pune - both with Rs 6 crore inventory and 800+ SKUs - had very different stock audit experiences...

CACA Sundaram Gupta · Apr 7

Audit · 11 min read

Stock Audit for Jewellery Businesses: Gold, Diamonds, Hallmarking and BIS Verification

If you run a jewellery business - whether a single showroom or a multi-city chain - your inventory is unlike any other. A single tray of rin...

CACA Sundaram Gupta · Apr 7

Audit · 12 min read

Stock Audit for Automotive Dealerships: Vehicle Stock, Spare Parts and Demo Cars

An automotive dealership's inventory is one of its largest balance sheet items - a single showroom may hold Rs 5-20 crore worth of vehicles...

CACA Sundaram Gupta · Apr 7