This document provides an overview of the organizational structure and functions of the Stores Department in Indian Railways. It discusses the roles of key positions like PCMM/COS at the zonal level and DMM/DCOS at the division level. It also describes the different types of stores procured by Railways, including locomotive, carriage, signaling and other general items. The document outlines the classification of stores into categories like stock, non-stock, imprest, and surplus stores. It briefly explains stores budgeting, accounting, and the various modes of direct purchases like tender systems.

1. Presented by Chandan Kumar, Asstt Audit Officer
/PDA (Steel), Ranchi

2. Introduction
To run any industry or business Men, Machines,
Materials, Money and Management are vital. For
proper running of Railways, materials should be
available at proper time in proper quantity at proper
place with proper management system for
procurement, receipt, issue, custody and accounting of
stores in place. We Audit people should know about
the Stores department and their functions in brief
with a view to check their records taking into account
the knowledge of Indian Railway Code for the Sores
Department Vol. I&II along with updated rules and
regulations thereon.

3. Organizational Structure of Stores Deptt
At Zonal Rly
GM - AGM
 Pr Chief Material Manager/ COS
 CMMs
 Dy CMMs
 SMMs
 AMMs
At Division Level
DRM – ADRM
 Sr DMM/DMM/DCOS
At Depot Level (GSD)
 DyCMM
 SMM
 AMM
 DMS
STORES DIRECTORATE
Apex Level : Member Materials
Management
• Additional Member (Rly Stores)
• PEDs
• Executive Directors
• Directors

4. Different Items of Stores Procured in Railway
1)DSL Loco Spares, 2) Elec. Loco & EMU Spares, 3) Carriage
& Wagon Spares, 4) General Elec. & Traction distributions
Spares, 5) Signaling & Telecommunications Spares, 6)
Machine & Plant Spares of various kinds. 7) Tools,
Electrodes, Paints and Other General Items, 8) Petroleum,
Oil & Lubricants, 9) Steel Item including structural and 10)
Medical Items & Other sophisticated instrument.

5. Stores Holders & Locations
Stores Department (PCMM/COS)
General Stores Depot/Divisional Stores Depot: DyCMM
Mech Deptt- Workshop Stores : Dy CMM/SMM
Diesel Loco Shed : SMM
Carriage & Wagon Shed : SMM
Elect Deptt- SSE/Elect : Attached Stores
Sig&Tele Deptt – SSE/S&T : Attached Stores
Engg Deptt (CE - Dy CE / Sr DEN)- SSE/P.Way : Attached
- SSE/Bridge : Attached
- SSE/Works: Attached
Construction organization (CAO)- Attached Stores to
SSEs/Con

6. Functions of Stores Department
Planning
Procurement / Purchasing
Warehousing (Store-keeping)
Inventory Control
Surplus / Obsolete / Scrap Disposal
Distribution
Value analysis and cost reduction

7. Area of Material Management
 Material Requirement for :
 Production/Manufacturing of Roiling Stock in PUs
(CLW, DLW, ICF etc)
 Manufacturing and POH/ROH/IOH/NPHOH activity
of Workshops
 Maintenance of Rolling Stock : Diesel Locomotives,
Electric Locomotives, Coaches & Wagons etc
 Upgradation & Maintenance of S&T Equipments
 Maintenance of P Way (Tracks)
 Construction of New Lines, GC, Doubling, 3rd Line etc
 Maintenance of other Asset
 General Stores for Zone & Divisions
 Disposal of Scrap/ Surplus

8. Classification of Stores
General Classification
Stock : regular turnover and regular demand
Non Stock: not frequently required or one time requirement/
to meet specific demands
Stock
 Imprest Stores /Consumable Stores : Required for day-to-day
operation of services and maintenance of the activity. Like
cotton waste, oils, greases etc
 Ordinary Stores: Constant demand
 Special Stores: Required for works and other special purposes
 Emergency Stores: to meet emergency due to breakage or
unanticipated deterioration
 Surplus Stores: Not used for last 24 months or more
 Custody Stores: Purchased for special works and charged to
such works but left in the custody of stores department
 Inactive Stores/Non Moving- Not issued for last 12 months

9. ….. Contd
 Imprest Stores : Large number of Consumable Stores items
such as cotton waste, oils, greases etc require for day to day
repairs, maintenance and operation of rolling stock, generally
fixed for two or three months’ requirement
 Safety Items : unavailability or malfunctioning affects
safe train operation (e.g. Electric Key Transmitter)
 Vital Items : unavailability or malfunctioning affects
train operation (e.g. Battery Charger, Tag Block)
Surplus Stores
 Dead Surplus : Have not been issued to any indenter during past
2 years or more and not likely to be issued / utilized on any Rly
within 2 years.
 Movable Surplus : Not issued during last 2 years but likely to be
issued within 2 years

10. Standard Classification And Codification
 Standard Classification: Railway Stores have been divided
into 75 groups, the group number being specified as the first
two digits in any price listNo. pertaining to that group. Within
each group there will be sub-groups to broadly identify groups
of items within the main group. Out of the 75 groups under
which the railways stores have been classified, some of the
groups are unified. Under unified groups, any particular item
is identified on all railways with one PL No. Individual railways
shall therefore not allot regular PL Nos. to individual items
under the unified groups and this will be done only by the
railway that originally prepared the unified price list book.
 Standard Nomenclature Lists: The N/Ls are details of all
items having possible use on Indian Railways. These Lists
contain complete and unambiguous description of items, Price
List Numbers (PL Nos.), Specification or Drawing No., the unit
of transaction and the depots on various Railways where the
item is stocked.

11. MAIN GROUPS CODES
00-09 STEAM LOCO SPARES
10-19 DIESEL LOCO SPARES
20-29 ELECTRIC LOCO SPARES
30-39 CARRIAGE & WAGON SPARES
40-49 ELECTRICAL STORES
50-59 SIGNAL & TELE-COMMUNICATION STORES
60-69 PERMANENT WAY & ENGG. STORES
70-99 GENERAL STORES
98 SCRAP

12. CODES FOR UNITS OF ACCOUNTAL
Code No. Units of Measure Code No. Units of Measure
01 Pair 19 Short Tons
02 Set 21 Millimeter
03 In Hundred Numbers 22 Meter
04 In Thousand Numbers 23 Kilometer
05 Gross 24 100 Meters
06 Quire 25 Centimeter
07 Ream 26 Inch
08 Dozen 27 Foot
09 Milligram 28 Yard
11 Gramm 31 Square Meter
12 Kilogram 32 Square Centimeter
13 Quintal 36 Square Foot
14 Metric Tone 41 Cubic Centimeter
15 Lbs. 42 Cubic Decimeter
16 Cwts. 43 Cubic Meter
17 Long Tons 51 Liter
52 Kilo Liter

13. Standard Specifications & drawing
 Standard specifications and drawings of raw &
manufactured materials are prescribed by the Rly.
Board, RDSO and the General Managers from time to
time and price list should give a reference to the code
numbers of such specifications.
 Rates for New Stores.—(a) Stores Purchased —
The rates for 'new' stores should be the 'average book
rate' or the 'current market rate' whichever is less.
 (b) Workshop Manufactured Stores- The rates are
fixed half yearly by the Mechanical Department and
the average book or ledger rates will be the price list
rates.

14. Material Code /Price List No.: Each item appearing in the
nomenclature book has been allotted a code number with Eight
digit coding, which is known as Price List number.
Part “A”
MAIN GROUP
Part “B”
SUB GROUP
Part “C”
SERIAL No.
Part “D”
CHECK-DIGIT
Two digit
00
(significant)
Two digit
00
(significant)
Three digit
000
(non -
significant)
Consists of one
digit which has a
special
significance with
reference to
computerization
0
(non -significant)

15. Stores Budget: The stores Budget for the 'ensuing year'
and the Revised Estimate for the current year is
prepared in the form by the PCMM/COS with the
assistance of the stores Accounts Officer and
submitted to the Railway Board.
Funds Required for:
Stores for Capital works
Stores for works chargeable to DRF, DF, & Open
Line Works Revenue and
Stores required for general purposes

16. Stores Accounting
 Capital Account Heads
 Major Head – 546 (67 A & 97 B)
 Minor Head – 71 (Stores Suspense), 72
(Manufacturing Suspense) and 73 (Misc Adv)
 Revenue Account Heads
• Working Expenses
• Revenue Abstracts
• Misc Advance
• Deposit Misc
• Transfer Divisional
• Transfer Rlys

17. Purchase Agencies
 Railway Board-
(i) Locomotives, carriages, under frames, wagons and certain
nominated spares/ components therefore.
(ii) Wheels, tyres Axles, (iii) Coal, including steam coal, small
and soft coke.
The Railway Board also enter into long term Contracts, from time
to time for the Supply of the following Articles to Railways:—
(i) Rails, fish-plates and points & crossings.
(ii) Sleepers all kinds—cast iron, pressed steel, prestressed
cement concrete and wooden— including pig iron for
conversion into sleepers and steel turn out sleepers.
(iii) Specified track laying/renewal machines and Track
Maintenance Machines, (iv) Specified items of
stores/equipment for Railway Electrification and Signaling.
 PCMM/COS and PCE/CE

18. …Contd
 Government e Marketplace(GeM)/DGS&D- Prime Minister,
based on recommendations of the Group of Secretaries, decided to set up a
dedicated e market for different goods & services procured by Government
Organisations / Departments / PSUs. This meant transforming DGS&D to a
digital ecommerce portal for procurement and selling of goods and services.
The purchases through GeM by Government users have been
authorised and made mandatory by Ministry of Finance by adding a
new Rule No. 149 in the General Financial Rules, 2017.
 Other Railways/Production Units- Many components of
diesel locomotives & ICF coaches are procured through
DLW Varanasi and ICF Chennai respectively.
 Other Agencies: The other agencies of purchases include
Sleeper Pool Committee for purchasing sleepers,
Government Medical Stores, Central Organization for
Modernization of Workshops (COFMOW) for M& P items
required for workshops modernization.

19. Modes of Direct Purchases
Tender System
 Open Tender- Tender notices are advertised in public
newspapers .
 Limited Tender- Invited Tenders from a limited number
of Approved Firms/Suppliers.
 Single Tender- Only one Firm. When there is only single
supplier of the item, item is extremely urgently required
and of petty value.
Bulletin Tenders- PCMM/COSs publish a weekly bulletin
containing purchase requirements of all purchase sections.
This bulletin, containing details of about 200 to 300items is
posted to all registered suppliers. Now this system is
defunct after introduction of e-tendering.
Local Purchase: The PMM/COS may make local
purchases of items of small value, both stock and non-
stock provided that the item value is low and urgently
required.
Printing Press for supply of stationery, books & forms

20. Types of Tender
Indigenous Tender: This type of Tender is required to
procure the Stores, machinery and plant from India and
only Indian suppliers are eligible to participate for this
tender in Indian currency.
Global Tender: If any item is required to be procured from
outside India, Global tender is invited for the same.
However, global tendering can be made after obtaining
approval from the finance department. Generally done by
Rly Bd.
Category of Tender
 Single packet system: In this system tender is
simultaneously evaluated financially and techno-
commercially and lowest price (L1) from all the bids is
accepted if L1 is not suitable then they go the L2.
 Two packet system: In this system technical evaluation of
tender is done first and after it financial evaluation is done.

21. EMD and SD Rates in Stores Contract
 EMD
 Offers without EMD shall be summarily rejected.
 Automatic online release of EMD of unsuccessful tenderers.
Exemption of EMD
 MSEs (Micro & Small Enterprises) registered for the Tender item.
 Other Railways and Govt deptts
 Indian Ordinance factories
 Railway PSUs and PSUs for the group of items manufactured by them.
Estimated value of Stores
tender
EMD (rounded off to nearest
higher Rs.10
Up to Rs. 5 Lacs NIL
Above Rs. 5 Lacs to Rs. 20
Crores
2 % of estimated value of the Tender
subject to maximum Rs. 20 Lacs
Above Rs. 20 Crores to Rs.100
Crores
1 % of estimated value of the Tender
subject to maximum Rs. 50 Lacs
Above Rs.100 Crores 0.5 % of estimated value of the Tender
subject to maximum Rs. 1 Crore

22. Security Deposit in Rly Stores Contract
 10 % of the Contract value, subject to maximum of Rs.5 Crores. Rounded
off to nearest higher Rs. 10. No ceiling for SD in Global Tenders for
procurement of Stores.
 Shall remain valid for a period of 60 days beyond the date of completion of
all contractual obligations.
 Deposit SD within 14 days of issue of LOA (Letter of Acceptance).
 No extension of time for submission of SD
 The EMD submitted by successful tenderer shall be automatically adjusted towards
the SD. The balance SD amount should be deposited within 14 days of the issue of
LOA.
 Otherwise (i.e., Balance SD not desosited), the EMD shall be forfeited and case be
dealt with as that of withdrawal of offer by the Tenderer as per extant instructions.
 In case of failure by contractor to meet deliveries for any lot, Railways may
cancel the contract for default part by forfeiting SD commensurate to that lot.
 Risk purchase clause shall not be applicable wherever SD clause is applicable.
 Wherever SD clause is not there, Risk purchase will be made as per extant
guidelines.
 SD is exempted when Estimated Valoe of the Stores Tender is upto
Rs1 lakh .

23. Vendors Approval Agency
 RDSO (Research Design & Standard Organization)
 CORE(Central Organization for Railway Electrification)
 CLW
 DLW
 ICF
 RCF (Rail Coach Factory)
Types of Contracts
o Rate Contract
o Running Contract
o Fixed Quantity Contract
Cancellation of Contract
 Forfeiture of SD & PG amount
 2% each month
 Accounts Stock Verification
Departmental Stock Verification
Payments terms
100 % against receipt and
acceptance of materials by
consignee.
95 % against receipted challan &
Inspection certificates and 5 % R-
note.
98 % against receipted challan &
Inspection certificates and 2 % on
R- note

24. Fundamental Principles of Contracts for purchase of Stores
 Items of the Estimates must be precise and definite.
 Legal and Financial advice should be taken in the drafting
of contracts.
 Standard Form of Contract should be adopted.
 The Terms of the Contract should not be varied except in
consultation with competent financial authority.
 Reasons should be recorded where lowest tender is not
accepted.
 Financial status of the firm should be considered.
 In absence of formal written contract no order for
supplies should be placed without a written agreement as
to price.
 Railway right to cancel the agreement at any time after
expiry of six months notice in respect of long term
agreement should be incorporated.

25. Category of Sources for Supply of Stores
1. Part-I Sources- Firms approved by RDSO/CORE/CLW/
DLW/ICF/RCF for purchase of quality Spare Parts
2. Part-II Sources- Initial Approval on Trial Basis, Eligible
for Supply Materials from 15% to Max 25%.

26. Preparation of Tender Document & Uploading
Tender Document is prepared and uploaded on the website.
This document consists of :
o Bid Document Part-I have the standard conditions of the
tender;
o Bid Document part-II have the material/machine specific
conditions;
o Special condition of tender
o Notice for inviting tender
o Corrigendum

27. Stages for Evaluation of Tender
The evaluation of tenders is done in following three stages.
 Firstly, Tender is commercially evaluated by Stores
department;
 Thereafter, the technical evaluation is conducted by convener
of Engg/Mech department; and
 Finally tender committee (it includes three members from
accounts, Engg/Mech and Stores department) makes the
recommendation to the accepting authority (Accepting
Authority is always one grade higher than the Tender
Committee) and it issues letter of acceptance (LOA) to
concerned unit and supplier.
 When LOA is issued a C/Agt is prepared by the stores
department and this C/Agt is vetted by the finance section of
accounts department. On the vetting of contract it is
processed for further proceeding to stores department again.

28. Payment of Security Deposit in case of Supply
Contracts
Security Deposit at 10% of the cost of the machinery/ spare
part is also taken from the contractor/ supplier to whom
the tender is awarded. If security deposit is in the form of
Bank Guarantee or Fixed deposit then it is kept with the
custodian i.e. Bank Guarantee section of the accounts
department. Bank Guarantee section maintains all details
of Bank Guarantees viz. year, extension, release,
encashment, etc.
However, if security deposit is received in the form of
Demand Draft then the same accounting entry is passed as
in the case of EMD. Sometimes , when SD is not deposited
by the supplier then it is deducted from the running bills of
the supplier.

29. Issue of Purchase Orders
 Purchase Orders on the firms for supply of stores are placed
either by the PCMM/Controller of Stores or by the Depot
Officer of the Main Depot.
 In the case of direct purchases by the Railway Administration,
six copies of the purchase order are prepared for distribution
to all concerned including those mentioned below. One copy
is retained as office copy and forms the basis of the
correspondence file of the Controller of Stores.
 sent to the firm.
 sent to the depots receiving the supply
 sent to the Accounts Officer, Stores
 to Electronic Data Processing Centre
 sent to the Inspecting Officer

30. Supplier's Challan
 Supplying firms submit in duplicate a challan along
with the materials supplied by them. A copy of the
challan is also be forwarded to the Purchase Officer.
 After receipt of the materials, one copy of the challan
duly acknowledged for quantity only (and not quality)
is returned to the supplier with a remark that a proper
receipt will be granted in due course for such
quantities as may be found acceptable.
Delivery of Materials: Generally, firms should be
instructed to deliver materials to the assigned depots
as far as possible. But heavy plant and machinery
should in all cases be delivered direct to indenters.

31. Receipt of Materials
On receipt of materials in the receipt branch these are
checked with relevant Purchase Orders and after
inspection and their acceptance by the Inspecting Officer,
a Receipt Note is prepared which shows the allocation as
final head or stores suspense and the material is passed
on to the ward keeper or the department concerned.
Imported stores are also verified with reference to the
advice of dispatch. The vouchers are posted in the
numerical and priced ledgers as receipts and accounted
for by debit to 'stores suspense ‘ or final head as the case
may be, by credit to purchases. If in any month Receipt
Note is received before actual receipt of materials, the
debit is held temporarily under 'stores-in-transit‘ account
till materials are received.

32. Inspection of Materials
 Materials valued more than Rs 5 lakhs are inspected by
RITES / RDSO prior to dispatch.
 On receipt of Materials at depot/consignee, Inspecting
Officer/Agency inspects the same.
 On rejection of material Joint Inspection is conducted.
 Rejected material has to be removed by the Supplier
within 21 days from the date of issue of Rejection
Memo.
 Rejection Register is maintained for serious nature of
cases of rejected materials.

33. Returned Stores
 Materials no longer required by shops and offices are
returned to stores depot on 'Advice Note of Returned
Stores‘ and the value thereof is accounted for as debit to
'stores suspense‘ and credit to shops or departments
concerned against specified work orders or final heads of
accounts.
 Materials are sometimes supplied to outside firms or other
Railway units for fabrication, reconditioning, etc. In these
cases, issue notes are prepared and the value is debited to
‘Miscellaneous Advances', and when the materials are
received back duly fabricated or reconditioned they are
received on Receipt Notes, which are valued at the original
cost of materials plus fabrication charges and accounted for
a debit to 'stores suspense‘ and credit to‘ Miscellaneous
Advances'.

34. Issue of Materials
 The process of accounting of material issue is as
under:
 (a)Material Requisition: Raw material required for
manufacture in the shops are drawn through material
Requisition released by the sub store and after
necessary posting in the ledgers, is accounted for by
debit to various work orders concerned and credit to
stores suspense.
 (b)Issue Notes for consumable stores etc.:
Consumable stores for repairs and maintenance etc.
are drawn on Requisition-cum-issue Notes
(FormS.1523) which after posting in ledgers, are
accounted for as debit to various work orders
concerned and credit to stores suspense.

35.  In order to bring transparency and improve efficiency in
procurement activities by way of reduced procurement time cycle
and expeditious payment to suppliers, Minister for Railways, in his
budget speech 2004-05 announced that all purchase activities of
Indian Railways (IR) namely floating of tenders, receipt of bids, issue
of contracts etc would be done online. Accordingly, e-procurement
was started in Northern Railway (NR) in May, 2005 as a pilot project
through Northern Railway E-Procurement System (NREPS) website.
 E-procurement application provides a common platform using
secured website where the buyer and the seller can participate in the
procurement process in fair and transparent manner. In September
2008, Centre for Rail Information System (CRIS) hosted e-
procurement site for IR through Indian Railway E-Procurement
System (IREPS) website and the system was implemented in all
Zonal Railways and Production Units. In South East Central Railway
the E-Procurement System was implemented on 19 September 2008.
 As per the Systems Requirement Specifications (SRS), IREPS
comprised 13 Modules.

36. Scope of work & Features in IREPS
E-Procurement is the application of information
technology for Public Procurement.
Reverse Auction /Auction sale modules are also
. developed.
Can be used for acquisition of Stores.
Objectives include to improve Efficiency, Transparency
and Management
Uploading of Tender notices and Tender documents
On-line on secured and dedicated website for Railways.
Submission of Digitally Signed and electronic bids for Data
Integrity, Authenticity, non repudiation, and confidentiality.
Bid to be encrypted at client machine, travel over SSL in .
encrypted form, stored in database server in encrypted
form and can be decrypted and opened only after tender
opening date/time. Pre-designed online bid forms for
bid submission.

37. Scope of work & Features in IREPS
Online bid submission and tender opening. Automatic
preparation of tabulation with online access to vendors.
Payment Gateway Integration for online payment of
tender document cost, EMD, SD etc.
Purchase order placement
Contract tracking
Introduction of Digital signatures for e-transactions.
Introduction of Public Key Infrastructure for data
encryption/decryption .
Time stamping of important documents possible by certifying
agency.
128 bit S.S.L. (secured socket layer) protection for secured
data transmission

38. Scope of work & Features in IREPS
Digital notarization: Digitally signing of a document
by a third party.
Time stamping : Affixation of time receipt on a
document sent on web certifying its
existence on web.
Public key : One key of PKI pair which is declared
publicly on web.
Private key : The other key of the pair held secretly
by the holder.

39. Receipt and Custody of Stores
Stores are received in a depot through the following
sources:
Indigenous Purchases
Imports
Manufactures from Workshop
Returned Stores
Depot transfers
Sale/loan of stores from other railways
Materials sent by departments to depot attached to
Workshop not for stock but for transmission to the
shops for repair
Printing Press

40. Recording of transactions by the Accounts and Finance Office
A. In case of direct purchase through tendering:
On receiving the material the Stores Depot issues a Receipt Note i.e.RO
statement no.3 in the Material Management Information Systems and
the following entry is made:
B. On payment to the supplier the Accounts Store Bills office passes the
following entry in the books of accounts by preparing a CO7:
In certain cases 90/95/98% advance payment against proof of dispatch
i.e. Railway receipt, Material receipted challan of consignee and
inspection certificate is also arranged as per terms and condition of PO.
In such cases remaining 10/5/2% payment can be claimed by vendor
after obtaining RO.
Also 100% payment can be claimed by the Vendor on the basis of Receipt
Note and inspection certificate.
Stock in Depot DR xxx
To Purchase Suspense CR Xxx
Purchase Suspense DR XXX
To Cheques and Bills CR XXX

41. AccountsFunctionsinrespectof of Stores
 Scrutiny of Indents/Contracts
 Register of Agreements
 Budget Allotments Funds Register
 Certification of Funds
 Correct Payment of Stores Bills
 Maintenance of Revenue Allocation Register
 Maintenance of Price Ledger
 Maintenance of Liability Register
 Preparation of Adjustment Memo & Journal Voucher
 Transfer Certificate (Inter Departmental, Divisional, Inter
Railway)
 Stock Verification of Stores by A/cs Deptt
 Sending of Returns pertaining to Books & Appropriation to
Hdqrs
 Renders advice to PCMM/COS & other Officers of Stores

42. Records Maintained in Stores Depot/Section
 Receipt Notes/Challans
 Issue Notes
 DMTR
 BIN Cards
 Ledgers
 Records for Rejected Stores
 Records for Surplus/Overstock Stores
 MMIS (earlier used) / IMMS (soft ware now in use)
 Inward and Outward Register
 Dead Stock Register/ Non-Consumable Register
 Consumable Register
 Suspense Register
 Condemned Article Register
 Loan Register
 Empty Containers and Packages Register
 Claim Cases Register
 Stock Verification Sheet

43. Points To Be Seen In Audit
 Purchase Orders/Policy, Challans, Inspection,
Rejection, Accountal, Custody and Disposal of
Stores
 There is no intentional splitting up of the purchase;
 Direct purchases are rare and to meet emergent requirements
only;
 The financial limits are not exceeded.
 That materials after import do not remain unused for
long
 In order to obtain competitive offers and avoid future
claims from the supplier, a predetermined price
variation clause within an upper ceiling of the contract
is prescribed.
 Whether contract prices are settled taking into account
that suitable safeguards are provided.
 Raising of Debits are done.

44. Points To Be Seen In Audit
 Issue Challans should be verified early
 Issued/Receipt Materials should be posted in BIN Cards/Ledgers
correctly
 Short/Non Receipt of Materials are properly accounted for.
 Rejected Materials are returned as per rule in vogue.
 Inspection is properly conducted.
 Materials are kept in safe custody.
 Scrap Materials are properly accounted for.
 Old unusable materials are condemned with proper sanction
 A/cs and Departmental Stock Verification is done and Stock
Sheet is finalized early
 Theft Cases and Claim Cases are settled quickly.
 SD/PWG is refunded to the firm after full supply of materials.
 Proper action is taken for Surplus/overstock materials early.
 Proper Mechanism is there for prevention against fire and
accident etc.

45. Objections in Stores Audit
 Non Verification of Challans
 Non Receipt / Short Receipt of Materials
 Non Replacement of Defective Equipment/ Machine
 Non Disposal of Surplus Stores
 Non Utilization of Stores / Non Commissioning of Machine
 Improper Custody of Stores
 Non/Incorrect Accountal of Stores
 Unfruitful / Wasteful Expr in Advertisement
 Irregular Full Payment against Materials not received
 Delay in Finalization of Stores Tenders
 Non Conducting of Inspection before Supply of Stores
 Loss due to Supply of Defective Stores
 Irregularities in Auction Sale Contd…..

46. …..Contd
 Supply of Defective Stores
 Non Recovery of LD / Penalty
 Non Recovery of Necessary Charges
 Procurement of Stores in Excess - Blockage of CAP
 Acceptance of Documents / Payment without Validation of
document
 Irregular Purchase of Stores at Higher Rates
 Irregular Budgeting of Stores
 Non Accountal of Released Materials
 Non Handing/Taking Over of Stores
 Non Verification of Stores
 Extra Expr on Purchase of imported Material
 Procurement of Machinery Component of Incorrect
specifications

47. Safety & Security of Stores
Following points are required to be observed
Doors, Windows, Grills & Wire Mesh are provided
 Fencing & Barbed Wires
 Custody of Keys
Entry into Stores Premises
Housekeeping
Theft/Pilferage/Malpractices
Precaution against Fire
Tally Cards/Bin Cards
Accident
Fire Prevention Equipment

48. THANK YOU!!