We carry out inspections of hypothecated and pledged stocks. Our teams are well versed in this line of work and all precautions are taken by us whilst conducting such inspections. Thorough comments are given to the clients on the nature of stocks, condition of stocks, method of stacking, approximate value, condition of the warehouse where the stocks are stored, fire fighting equipment, sprinklers, security aspects and our recommendation of any weaknesses found are highlighted in our reports. The quality of stock is determined by drawing random samples of stocks under inspection.
The general condition of warehouse structure, cleanliness, security system, air ventilation, sun-light, electrical wiring, fire hazards and fire-fighting equipment available are all observed and noted. Any discrepancies found are noted down and reported to owners and the bank for information / necessary remedial action

The basic objectives of stock inspections are:

• Quality Check
• Quantity Verification
• Monetary Valuation

The above is sufficient to confirm and cover the loan facility security given to the client and that maintenance of appropriate checks and controls over the pledged stocks in case the goods are kept by the client.

• Quality Check
• Quantity Verification
• Monetary Valuation

The above is sufficient to confirm and cover the loan facility security given to the client and that maintenance of appropriate checks and controls over the pledged stocks in case the goods are kept by the client.

Our inspection team will encompasses the following checks and balances:

• Previewing and checking of the stocks storage records, bin cards and computerized inventory statements.
• A proper system of controls and reliability is ensured whether the goods are pledged with the bank, with the client in his own premises, or in a third party’s warehouse.
• The inventory is sufficient in value to secure the total loan facility provided to the client.
• Periodic evaluations are made to ensure that bank’s interest is covered.
• That the quality of the stock items has not been deteriorated or damaged.
• The security system in question is not old / obsolete and is working properly.
• The stocks are fully insured depending on the agreement reached with the borrower, with a current insurance policy.
• The stocks having an expiry date are usable / saleable and are approximately marked for identification.
• Whilst storing the stocks, more valuable items are to be given priority for appropriate storage.
• The stocks are housed in properly constructed premises according to the nature of the stocks.
• Firefighting system is in place and operative.
• Point out the stock in and out system – whether LIFO or FIFO.
• Quality of the goods meets the required standards of a particular industry.
• Any changes by the client in removing or adding the stocks should be done in the
• presence of the bank’s officials or under proper authorization.
• Stocks are inspected periodically to ensure that they are in order at any given time, and that they tally with the figures available with the client.
• The stocks are owned by the client and are totally free from any encumbrances.
• No prior intimation or information should filter out that is not in the bank’s interest.
• The stacking of the stocks is done in a systematic manner to facilitate stock checking.
• Observe that there is no duplication or deception during the production cycle
• movements at the client’s premises.
• Correlate information provided by the borrower with the actual presence of physical
• stocks, a proper procedure to verify that the actual goods in stock are in place.
• Due compliance is being adhered to with the procedures involved.
• Accuracy/reliability of the procedures are in place.
• That there is no stoppage of production during stock count.
• There is adequate internal control set-up, i.e. the staff responsible for maintenance of
• stocks must not be involved in stock checks with the bank’s representative.
• That there is no possibility of stocks being double counted.
• The quality of stock to be checked by experts or in a laboratory for it’s genuineness.
• If the stocks are held by a third party for and on behalf of the borrower, there should be an authorization from the client to gain access to the premises.

We have a team of qualified engineers, inspectors and other suitably qualified and experienced staff that head their respective departments with experience, professional licensing / education and knowledge of more than a decade.