Dead Stock Register

Dead Stock is the materials and assets held by the project that are NOT consumed in construction — i.e., capital items with multi-project / multi-year service life. Examples: scaffolding pipes, formwork plates, hand tools, electrical equipment (transformers, generators, welding machines), survey instruments (total stations, theodolites), site office furniture, communication equipment.

Without a Dead Stock Register, these items disappear into the project's expense column when they should be tracked as transferable assets. At project end, items not consumed should return to the company's central inventory for the next project — saving significant repurchase cost. A typical mid-size project (₹50 crore) holds ₹50 lakh - ₹2 crore of dead stock. Failure to track means ~₹15-50 lakh of recoverable asset is lost as 'project expense' per project.

Asset categories: - Construction equipment: scaffolding, formwork, hand tools, dewatering pumps, vibrators, mixers, hoists - Electrical: generators, transformers, distribution boards, welding machines, power tools - Survey + testing: total stations, levels, GPS units, cube-test moulds, lab apparatus - Site office: computers, printers, furniture, communication equipment - Vehicles + plant: site vehicles, light goods vehicles (if not company asset) - Safety equipment: signage, traffic barriers, fire extinguishers, first-aid kits

Per-asset entry: - Asset ID (project-specific or company-wide unique) - Description + make / model / serial number - Date of procurement / receipt - Source (purchased / hired / company transfer) - Cost / valuation - Location at site - Custodian (responsible person) - Condition status (new / good / fair / for repair / for disposal) - Disposition at project end (return to company / sell / scrap)

Periodic verification: monthly physical verification with sign-off; annual audit by central HQ team.

1. No register maintained — assets purchased / received without entry; lost / stolen / damaged with no record.

2. Custodian not assigned — items 'belong' to no one specifically; nobody accountable for their condition / location.

3. Lost / damaged not investigated — when items go missing, no investigation; cost absorbed quietly.

4. Asset value not depreciated — items procured at ₹50,000 listed at full value for years; balance-sheet misstated.

5. Sale/disposal without authorization — items disposed of by site team without central approval; potential corruption risk.

6. Inter-project transfer not tracked — items moved between projects without paper trail; eventually 'disappear' from records.

7. Insurance gaps — high-value assets not declared on project insurance; claims rejected.

8. End-of-project handover skipped — at completion, dead stock not formally transferred to company HQ; lost in transition.

9. No periodic count — monthly verification skipped; gaps emerge only at project closeout when expensive to investigate.

Companion formats: - Stores Inward Register (FMT-STR-009) — initial receipt records for capital items - Issue Voucher (FMT-STR-003) — when capital items issued to crews - Material Returns Note (FMT-STR-004) — for return at project end - Bin Card (FMT-STR-005) — for consumable materials (companion concept)

Accounting governance: - Companies Act 2013 — fixed-asset accounting + depreciation requirements - Income Tax Act 1961 — depreciation rates by asset category - ICAI standards — AS 10 / Ind AS 16 (Property, Plant and Equipment) - Internal company policy — asset management, custody, transfer protocols - Insurance requirements — declaration + periodic update for project-level coverage