Topics No. 1

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Topics No. 1
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STOCK VERIFICATION BRANCH

• Changing Role and Function

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Performance of Stock Verification depends on

• ATTITUDE
• Attitude leads to appropriate action

• KNOWLEDGE
• Knowledge helps for proper planning

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. Now a day Stock Verification is not a
mere Annual affair confined only to seeing
ledgers and taking the inventories .

• It is the sharpest weapon of the Material
  Management for monitoring day to day
  requirements of stores as well as best uses of
  revenue with minimum investment

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New horizon of stock verification

• Preparation of effective and realistic Indent
  /demand
• Review of EMC/AMC to recast the actual
  requirement.
• Preparation of need based and utility based
  Estimates.
• Restrict the Force Issue of stores
• Ensure receipts of materials according to
  specification
• Preparation of Ideal Stores Budget.
• Imposition of Penalty for any deviation of
  contract.
• Proper usage of stores and restriction of
  unnecessary accumulation to avoid deterioration
  /obsolescence thereof.
• Quantify the actual loss sustained after
  accident of trains ( specially goods train)

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Preparation of effective and realistic
Indent/Demand.

• SV- Branch of Accounts directly related with the
  users ends.
• Checking of Indents/demands and its vetting are
  made on the basis of some documents (NL-Card ,
  Bin Card ) which may not reflect the actual
  position of Stores .
• It is regular phenomena of stores depots to show
  issue of stores in the ledgers without any
  physical movement to achieve the targeted Turn
  Over Ratio..

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Preparation of effective and realistic
Indent/Demand.

• Indent /demand quantity will be realistic if
  requirement verified physically .
• Quantity shown in the consolidated demand /
  indent against consignee may not tally . Some
  times materials which are not required at all
  by the consuming units are shown as a demand
  against the units.

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Review of EMC/AMC to recast actual requirement.

• EMC/AMC recorded on the ledgers are not revised
  according to requirement .
• The same remains unchanged even after
  consignee not requiring indented materials .
• After changing of specification full indented
  quantity of stores may not be required but
  EMC/AMC remains unchanged.
• On review of the actual requirement , EMC/AMC can
  be recast by SV-Branch .

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Preparation of need based and utility based
Estimates.

• Some of the Estimates are prepared without
  considering the stock position .
• Materials remain unused for long time and
  deteriorate with the time .
• Some of the works contract where supplying and
  installation firm is the same , estimates are
  unnecessarily inflated at the advice of firm and
  included such items which are sufficiently
  available with the Rly.
• Moreover some degraded or low graded items are
  supplied under the branded box which remains in
  the custody of the depots after completion of the
  works.

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Preparation Estimates. of need based and utility
based

• Furniture and instruments /tools are also
  included in the Estimate. Valuable furniture and
  tools remain in the stores depot for years
  together and deteriorate with time .
• Certification of stock holder of the Central
  Depot as well as concerned ISA should be a
  obtained to restrict the unnecessary inclusion
  of items in the Estimates .

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Restrict the Force Issue

• Force issues are normally made from December to
  March to show improved TOR and place the further
  requirement.
• Issues are made without any requisitions of the
  consignee or by changing the indent quantity
• Issues are reflected only on the N.L. /Bin cards
  without any physical movement of stores.
• Main depots are to be verified during the period
  from issuing end to user end and excess issues
  are to be written back to ascertain the actual
  stock position and the same will be reflected in
  the NL card so that during the vetting physical
  balance and ledger balances tally.

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Monitor the receipts of materials according to
specification

• Under -receipt stores are issued to the consignee
  on the plea of exigency though the materials are
  not taken into account for non qualifying the due
  formalities or specification . It was also
  observed that consignee receipts the non
  specified items and acknowledge the same as
  standard size .
• Bulk supply of short shelf - life materials .
• Some of the cases undervalued / lower size items
  are mingled with the standard size items .

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Preparation of Ideal Stores Budget

• Stores Budgets may be divided into two major
  segment.
• One is Stores in Stock and another one is
  Requirement of Stores for the coming year.
• Stock Verification Branch may be utilised to
  ascertain the actual stock position of stores .
• Realistic requirement could also be forecast on
  review of EMC/AMC/Indent / Demands.
• Elements of Stores Budget will be free from some
  hidden factors .
• After adapting above mentioned formalities SV-Br.
  may ensure the effective utilisation of Rly
  revenue as well as to restrict the unnecessary
  procurement of stores to avoid locking up of
  capital.

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Imposition of Penalty for any deviation from
contract.

• Correct accountal of receipt of stores may be
  ensured by stock Verification Branch .
• Actual specification and grade, quantity , size
  could be ascertained as and when physically
  verified.
• So proper imposition of penalty for deviation of
  specification/ stipulation from the contract may
  be ensured by SV. Br for imposition of penalty.

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Quantify the actual loss.

• Loss sustained after accident of train could be
  ascertained if any staff of SV-Br. is being
  deputed to take the inventories immediately .
• Then the actual loss sustained will come to the
  notice and also prevent the possible scope of
  miss appropriation/malpractice.

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OUR MOTTO

• Under the present situation effectiveness of
  SV-Branch could not be kept aside . Role of stock
  verification on Material Management is most
  important . So effective measures should be
  considered for imparting knowledge based
  training about modern technology in order to
  equip the staff of SV-Branch with the changing
  situation.

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Topics No. 5.
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Stock Verification of Stores

• At
• Electrical and Sig. Tele. Depots.

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Verification Zone and Our Findings

• Difficult to take inventory of cable drums where
  measurement mark are not available .
• Materials which are neither physically available
  nor recorded in the relevant ledgers , these are
  out of purview of stock verification so a
  intimation about purchase of equipments and
  machinery should be addressed to the Divisional
  ISA for ensuring the accountal .
• It should be ensured that DMTRs references
  should be provided on the Local Purchase Order
  at the time of passing the pay orders.
• Rapid change of specification and huge items
  become obsolete .

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Verification Zone and Our Findings

• Unaware about utilisation of some scientific
  items and deterioration of the same.
• Huge non moving items and obsolete items .
• Non disposal of non-moving items on the plea
  scientific and secret point of view.
• Prior intimation for verification may lead to
  give the opportunity to adjust the short fall of
  some items.
• Released materials are not properly taken into
  accounts .

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Verification Zone and Our Findings

• Estimates are inflated when supplying and
  installation is done by the same firm . Materials
  , equipments which are available in stock are
  also included in the Estimate . Valuable
  furniture are included in the estimate .
• Materials supplied by the firm ,subsequently
  shown as issue to them and the same is returned
  to the stores depot on the next day.
• Some items purchased through Estimate are never
  issued or used in the works.
• Low graded , even non specified items are also
  supplied under sealed branded box.

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Verification Zone and Our Findings

• Huge items purchased through Estimate remain in
  the custody after completion of the works .
• Lack of proper custody and proper storing .
• General stock items and items purchased through
  estimates or local purchase are kept together.
  It results to improper accountal and
  discrepancies which could not be identified.

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Verification Zone and Our Findings

• Materials received through SLD-van / Qt-Van are
  less in quantity than the quantity shown in the
  issue note. The same are adjusted by means of
  fictitious challans.
• Huge quantity of materials are returned by the
  construction units or R.E. organisation during
  winding up of units without proper accountal and
  the same are neither being used nor being
  disposed off .

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Verification Zone and Our Findings

• Unserviceable items / equipments are returned
  through DS-8 in no. without mentioning the
  components and percentage of nonferrous
  attachments. This practice lead to leakage of
  valuable items.
• Acknowledgement of receipts of unserviceable
  items are given by the scrap yard in weight ,
  This practice gives the opportunity to make good
  the shortages or misappropriation of valuable
  scraps.
• In case of returned of unserviceable motors,
  armature , radiator , stabilizers, machines and
  equipments prefer the word various type
  instead of specific size , maker name ete .

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Topics No. 6
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Stock Verification at Rly. Hospital and Health
Units

• On
• Drugs , Medicines, Tools Plants and Equipments

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Verification Zone and our findings.

• DRUG MEDICINE
• Central Stores to Indoor and Outdoors or Health
  units.
• Requisition preferred on non standard form ,
• Cross checking is not done as all are consumable
  items and related issues could not be identified
  with receipts after lapse of time .
• Requisitions based on the bed capacity ,
  previous trend of issue not on actual occupancy .
• No stock registers are maintained by the
  consuming wards.
• Requisitions are made as and when stock are
  exhausted .
• Low value drugs are not taken into accounts of
  the consuming units .

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Verification Zone and our findings.

• DRUG MEDICINE
• Indent made by the consignee in the indent books
  placed to the central stores .
• Central store issues the medicine and record the
  quantity on both foils of the indent books.
  Consignee acknowledge the quantity on two copies
  of foils , one copy remains as office copy with
  the indent book while other copy is handed over
  to the stock holder of the central store.

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Verification Zone and our findings.

• DRUG MEDICINE
• It was surprising to note that indent quantity of
  the previous day was modified as and when indent
  books are furnished for further requisition by
  the staff of central store by means of
  overwriting , inserting figures before or after
  the actual quantity , or adding some other items.
  Consignee was also not aware about the previous
  entries.
• Scrupulous quantity shown as issue against the
  wards /units . In this way huge quantity of
  medicine are misappropriated by the pharmacist
  of the central stores.

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Verification Zone and our findings .

• DRUG MEDICINE
• Short shelf life medicines forcibly issued to
  the indoor wards / outdoors wards /health units,
  but no register to record the expiry date of
  medicines and reasons for non consumption, could
  not be identified.
• There is no day to day records for issue of
  medicines in the indoors/outdoors wards .

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Verification Zone and our findings.

• It is also seen that medicine prescribed in the
  slip by the Doctors/OPD which are not available
  in OPD/Dispensary but the same are shown as
  issued .
• Medicine procured through Local Purchase are not
  taken into Accounts, the same are handed over to
  the indoor wards for supplying the same to the
  patient . But it could not be ascertained whether
  medicines are fully used or not and what will be
  fate of the unused medicines in case of demised
  of patient or patient being referred else where.
  It is also learned that less quantity of
  medicines are issued than the quantity purchased
  for the patient.

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Verification Zone and our findings.

• Tools and Plants.
• Hue quantity of instruments are lying under the
  custody of the wards but these are neither
  properly used nor issued to other wards nor even
  preserved properly.
• It is also seen that some most commonly used
  instruments are frequently condemned and the same
  are deducted from the ledger but there is no
  records about disposal of condemned instruments
  .
• Instruments under OT-Ward are unexplored area .

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Verification Zone and our findings

• Equipments.
• All equipments are not taken into Accounts.
• Valuable equipments are purchased but not used as
  non-availability of expert hands.
• Defective Equipments remain unattended for long
  time .
• Unserviceable Equipments are not properly
  disposed off in time .