Inventories
General Instructions for Preparation of StatementsInventories shall be classified as Raw materials, Work-in-progress, Finished goods, Stock-in-trade, Stores and spares, and Loose tools.
Inventories Workings
Schedule III, Part I — Division I (Section C - Current Assets) — FY 2025-26Definition
Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials/supplies to be consumed in the production process.
Recognition Criteria
Recognized when the company controls the asset and it is probable that future economic benefits will flow to the entity.
Measurement Principles
Measured at the lower of cost and net realizable value (NRV).
Audit Procedures Dashboard
Inventories (Division 1)Audit Steps Checklist
| Item Code | Description | Qty | Rate (₹) | Cost (₹) | NRV (₹) | Conclusion |
|---|---|---|---|---|---|---|
| RM-001 | Steel Sheets (Grade A) | 1,000 | 500 | 5,00,000 | 550 | Pass |
| RM-002 | Aluminum Coils | 500 | 800 | 4,00,000 | 750 | NRV Lower |
| RM-003 | Copper Wire (2mm) | 2,000 | 300 | 6,00,000 | 320 | Pass |
| RM-004 | Plastic Pellets (Virgin) | 5,000 | 40 | 2,00,000 | 45 | Pass |
| RM-005 | Chemical X-12 | 100 | 2,000 | 2,00,000 | 1,800 | NRV Lower |
| RM-006 | Lubricant Oil | 1,200 | 150 | 1,80,000 | 160 | Pass |
| RM-007 | Packing Corrugated | 10,000 | 12 | 1,20,000 | 15 | Pass |
| RM-008 | Adhesive Glue | 500 | 250 | 1,25,000 | 240 | Check Obsolescence |
| RM-009 | Rubber Gaskets | 2,500 | 45 | 1,12,500 | 50 | Pass |
| RM-010 | Standard Bolts | 50,000 | 2 | 1,00,000 | 2.5 | Pass |