Administration Manual - B.E.S.T. Undertaking.

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1.5.16. In the case of articles received from manufacturers, where cases are
intact, the weight or number as stated in the Advice of Despatch or
Challans may be taken as correct unless there is a reasonable
apprehension based on certain
data that the net weight/number of the material is lesser than what is
stated on document. In such an event the material may be unpacked
and test checked.
1.5.17 Every large discrepancy found between numerical bin card and actual
balance is to be reported immediately to the A.G.M.(M) by a separate
note with a quick follow up action.
1.5.18 Each completed stock verification sheet with 3 copies are forwarded to
the concerned Heads of Stores for comments on the differences found in
Stock Verification. Explanations for the differences are checked by the
Stock Verifier/Audit Officer in great detail and changes, where
necessary, on acceptance by Audit, are made in the stock differences on
the stock verification sheets.
1.5.19 The differences in the physical stock and the book balance may be due,
interalia, to the following reasons:-
i) Wrong posting of Requisitions on the Bin Cards;
ii) Wrong folio number given to a particular item on the requisition.
iii) Extension mistakes on the Bin card.
iv) Retail issues materials which are received in bulk;
v) Wrong issues of materials which are received in bulk;
vi) Errors in counting, measuring, and weighing etc.
1.5.20 The stock verification sheets must then be endorsed by the Assistant
Internal Auditor and forwarded to Stores Account Section for pricing the
difference. The difference are then valued as per average rate of the item
on the Stores, Ledger Folio.