PRESENTATION

ON
ANNUAL STOCK TAKING

Presented By:
Newton, SSO-II
CQA(T&C), Kanpur
 Introduction
• Annual stock taking of all the stores held on
charge of the establishment will be carried out
once each year between January and March in
accordance with the instructions contained in
Chapter –IV section-5 of CQA(T&C) standing
order and other Rules and Regulations.
 Accounting of Stores:
• Proper maintenance of accounts, neatness and absolute accuracy
in the posting of Receipt and Issue voucher are the most essential
requirements and must be kept in view by the staff concern.
• A close liaison between the Incharge Account section and Incharge
store house to tally the posting on Account cards vis-à-vis card is
also quite desirable for detection and correction of error if any,
well in time.
• Stock taking year of this establishment will be from 1 April 2017 to
March 2018 and the stock of all the items on the charge including
packing materials expendables and non-expendable store articles
in use, accessories, MT and cycles, Auditable forms and priced/
technical books and any other items will be carried out.
• It will be carried out once each year between January and March
in accordance with DGQA Standing order and regulations for the
Army-1962.
• The names of officers/ staffs composing the BOO will be published
in the establishments DO Part-I duly approved by the Controller
not later than the month of January.
 Preparation of Stock Taking
• Immediately on publication of DO Part-I for BOO and
convening order the GOs/SAO will ensure that Stock
record in there Groups/ Sections under their
command are brought up to date.
• Groups/ Sections responsible for maintenance of
ledger/ cards will prepare IAF(Fac)154 in triplicate
duly completing columns 1,2,3,4 (if any) 5,6,7 & 9
and handover to the officers responsible for stock
taking after convening BOO for stock taking each
year together with the list of all ledgers with their
volumes including Receipt and Issue vouchers
registers. The format of the stock taking sheet is as
below.
Format of the stock taking sheet
 Drill to be followed by Stock Taking
Officer and Staff (BOO team)
• With the triplicate copy Stock taking sheet, the tock taking
Officer and staff (BOO) will start verifying the stock from
March each year and they will adopt such method of
verification as they considered necessary for accurate
determination of the quantity in stock.
• Uncounted surplus found on stock taking also constitute
irregularities and are opened to objections by Audit officers
and they will ensure that reconciliation action on Stock
taking must cover both surplus and deficiencies, all ground
balances must be counted/ checked and proper action taken
regarding both surplus and deficiencies.
• Simultaneously with the verification of the quantities in
stock, they will also take the stock of similar store/ item
distributed within the Group/ Sections of the establishments
to prevent as a part of quantity in stock.
• Verification shall always be made in presence of
the officer responsible for the custody of the
stock being verified.
• A certificate of verification along with the findings
shall be recorded in the stock register.
• Discrepancies including shortage/damages and
unserviceable goods if any identified during
verifications shall immediately be brought to the
notice of competent authority for taking
appropriate action in accordance with the
provision given GFR 33-38.
 List of Account
• The separate accounts shall be kept for:-
• Fixed Assets such as plant, machinery,
equipment, furniture, fixtures etc ( GFR-22)
• Consumable such as office stationery, chemicals,
maintenance spares, etc (GFR-23).
• Library books (GFR-18)
• Assets of historical/ artistic value held by
museum/ Govt. department (GFR-24).
 Hiring of Fixed Assets
• When a fixed asset is hired to local bodies,
contractors or others, proper record should be
kept of the assets and the hire and other
charges, if any should be recovered regularly
from local bodies.
 Physical verification of Fixed Assets

• The inventory for fixed assets shall ordinarily be

maintained at site. Fixed assets should be
verified at least once in a year and the outcome
of the verification recorded in the corresponding
register. Discrepancy, if any, shall be promptly
investigated and brought to account.
 Physical verification of consumables

• A physical verification of all the consumable

goods and materials should be undertaken at
least once in a year and discrepancies, if any,
should be recorded in the stock register for
appropriate action by the competent
authority.
 Buffer Stock

• Depending on the frequency of requirement

and quantity thereof as well as the pattern of
supply of a consumable material, optimum
buffer stock should be determined by the
competent authority.
Physical verification of Library books
• Complete physical verification of the books
should be done every year in case of libraries
having not more than twenty thousand
volumes.
• Loss of five volumes per one thousand volumes
of books issued/ consulted in a year may take
reasonable, provided such losses are not
attributable to dishonesty or negligence.
• However, loss of a book of a value exceeding
Rs1000 and rare books irrespective of value
shall invariably be investigated and appropriate
action to be taken.
 Action by Senior Admin Officer
• On completion of stock taking by BOO, Board
proceeding will be checked for correctness and
submit to the controller through Sr. Admin
officer after ensuring that action completed in
all respect for necessary approval and
countersign.
• A completion report rendered to DGQA-HQ/
Higher formation on or before 15th April.
 Disposal of Goods
• An item may be declared surplus or obsolete or
unserviceable if same is of no use. The reasons for
declaring the item surplus or obsolete or unserviceable
should be recorded.
• The competent authority may, at his discretion, constitute
a committee at appropriate level to declare item’s as
surplus or obsolete or unserviceable.
• The book value, guiding price and reserve price, which will
be required while disposing of surplus goods or otherwise
original purchase price will be considered.
• In case an item becomes unserviceable due to negligence,
fraud or mischief on the part of a Govt. servant,
responsible for the same should be fixed.
• Sales of Hazardous waste/ scrap Batteries/
electronic waste, Scrap lots comprising of
hazardous waste, batteries etc shall be sold
keeping in view the extant guidelines of
Ministry of Environment and Forest.
• The prospective bidders of such lots of
hazardous waste/ scrap batteries/ e- waste
should be possession of registration, valid on
the date of e-Auction and on the date of
delivery.
 Case Study of Annual Stock Taking of
CQA(T&C), Kanpur for year 2016-17
• Annual Stock Taking of CQA(T&C), Kanpur for year
2016-17 has been initiated vide DO Part No. 19
dated 23/02/2017.
• Complete Ledger has been provided to BOO,
however little late i.e. 11/07/2017 after entry and
completion.
• The entry in ledger of tools and apparatus held in
CQA(T&C), Kanpur checked by BOO and found in
order vide BOO report as enclosed below.
BOO REPORT
 Conclusion
• Annual stock taking is essential for proper
maintenance of accounts, neatness and
absolute accuracy to tally the posting of
receipt, issue vouchers and cards.
• It is also quite necessary for detection and
correctness of the error if any, well in time.
 References

• CQA(T&C) unit standing order.

• DGQA Standing Order-2011.
• Swamy’s General Financial Rules, 2017.