Form No. 101

Inventory Valuation report under section 268(5)

Prescribed under rule 171(2) · Rule 171

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I have obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of the Inventory Valuation

In my opinion, from my examination of the books of account and other documents, it appears that proper books of account and other documents with respect to inventory * have been kept/have not been kept by the head office, other premises and the branches of the assessee visited by me, and proper data adequate for the purposes of inventory val- uation * have been/have not been received from branches not visited by me subject to the comments given below:

(a)

(b)

In my opinion and to the best of my information and according to explanations given to me, the Inventory Valuation presented herein below in my report is true and correct subject to comments given below:

(a)

(b)

The prescribed particulars and such other particulars as were required by the Assessing Officer by order No. … … … .. dated … … … … .. are annexed hereto. In my opinion and to the best of my information and according to explanations given to me, these are true and correct.

Any variations observed in the Inventory Valuation Report compared to the disclosures made in Form No. 26 (or if no Form No. 26 has been furnished, then value as per audited accounts) have been adequately explained along with the reasons and justifications thereof.

Place Signature

Date

Name of the Accountant: Member Registration Number: Permanent Account Number:

Unique Document Identification Number (UDIN), if any:

Name of the proprietorship/ firm:

Firm Registration Number:

Notes:

1. *Delete whichever is not applicable

2. **This report has to be given by the Cost Accountant nominated by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner of Income-tax under section 268(5)(ii).

3. Where any of the matters stated in this report is answered in the negative or with a qualification, the report shall state the reasons therefor.

4. The opening values have been taken from the books of account and other documents as produced by the as- sessee.

5. Relevant period shall be the period specified by the Assessing Officer.

ANNEXURE

Row No.		PART A: Particulars ofthe assessee
1.	Name		(refer Note 1)
2.	Address (Head office/ other premises and branches):		(refer Note 2)
	(a)
	(b)
	…
3.	Permanent Account Number
4.	Date of incorporation/Date of formation/Date ofbirth
5.	Nature of business activity
6.	Details of principal products / services		(refer Note 3)
7.	Email id
8.	Contact number		Country Code	Number
9.	Tax Year

Row no.		PART B: Inventory Valuation Report of Cost Accountant
1 .	Details of books of account and other documents maintained with respect to inventory
2 .	(a) Method of accounting employed with respect to inventory main- tained.
	(b) Indicate whether there is any change from the method of accounting employed with respect to inventory maintained in the imme- diately two preceding previous years
	(c) Is there any inventory management system software in place?		Yes/No
	(d) If answer to (c) above is yes, provide details of the inventory man- agement system software.
3 .	(a) Method of valuation of opening and closing stock of following inventory items used by the Assessee: (i) Finished Goods (manufactured) (ii) Stock-in-trade

(iii) Work-in-progress (WIP)

(iv) Raw materials

(v) By-products

(vi) Intermediate Products

(vii) Jigs, Tools, and Dies

(viii)Stores, Spares and Consumables

(ix) Scrap

(x) Any other item

(b) State whether there is any change in the method of valuation of any of the items mentioned in (a) above, as compared to the method em-

ployed in the immediately two preceding tax years.

Yes/No

(c) If answer to (b) above is yes, specify the amount by which the profit or loss for the relevant period has been affected by such change

(d) During the relevant period, has there been any insurance claim relat- ing to inventory due to fire or accident or any other reason.

Yes/No

(e) If answer to (d) above is yes, give details of insurance claim relating to inventory due to fire or accident or any other reason

Give summarized details of Financial Results (as per the Audited Accounts of the Assessee)

S. No.

Particulars

Year under reporting

Year 1 preceding

to Year under

reporting

Year 2 preceding to Year under reporting

Turnover

Profit (Loss) before tax

Less: Taxes paid

Profit (Loss) after tax

Raw Materials Consumed

Opening Inventory

Closing Inventory

Average Inventory Holding Period (days)

={365/(Turnover [ 1]/Average

Inventory)} Average Inventory

= {[6]+[7]}/2

Average Raw Material Stock to

Consumption (days)

Average. Stores and Spares Stock to Consumption (days)

In respect of items manufactured, full quantitative details of raw materials and finished products as indicated below (consolidated at entity level):

(a) Details of Raw Material (RM) for the relevant period under reporting (refer Note 4) :-

No.

Details

Raw

Material

descrip-

tion

Unit of

Measure-

ment

(UOM)

Opening stock

Purchases

during

the rele-

vant pe-

riod

Consumption

of Raw Ma-

terial during

the relevant

period

Raw Material

sold during the

relevant period

Closing

stock

Other

adjust-

ments

RM1

RM2

RM3

……

Others

(b) (i) Quantitative details in respect of items manufactured / traded by the Assessee for the relevant period under reporting (refer Note 5):

No.

Finished

products/

Work-in-

Descrip-

Item

Code

Unit of

Meas-

ure

Opening

stock

Quantity

(Qty)

manufac-

Quanti-

ty pur-

chased

Quant

ity

sold

Quan-

tity

re-

Quantita-

tive ad-

just-

Clos-

ing

stock

Open-

ing

Clos-

ing

Progress

tion

ment

(UOM

)

tured

during

the rele-

vant

period

during

the

rele-

vant

period

dur-

ing

the

rele-

vant

period

jected

dur-

ing

the

rele-

vant

period

ments, if

any in

(b)(ii)

below:

the

end

the

rele-

vant

period

Work-

in-

Pro-

gress

Work-

in-

Pro-

gress

Item 1

Item 2

Item 3

.........

Others

(b) (ii) Quantitative adjustments (refer Note 5):

S. No.

Finished products / Work-in-

Progress

If there are quantitative adjustments in (ii)(a), furnish the detailed reasons for quantitative adjustments

Item 1

Item 2

Item 3

.........

Others

(i) Has the assessee conducted physical verification of raw materials, stores and finished products, etc. or traded goods mentioned above?

Yes/No

(ii) Details of discrepancies, if any

(i) Whether valuation is in conformity with the Income Computation and Disclosure Standards (ICDS) notified under section 276(2)?

Yes/No

(ii) Details of discrepancies, if any

Details of inventory valuation for the relevant period under reporting by the Cost Accountant (wherever ICDS II is applicable) (refer Note 6):

(a)(i) Valuation of Finished Goods:

Sl.

Descrip-

tion

Item Code

UOM

Opening Stock

Closing Stock

Qty

NRV

Lower of

(6) or (7)

Value (5) x (8)

Qty

COP/

NRV

Low

er of

(11)

(12)

Value

(10) x

(13)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

Product

.........

Total

(a)(ii) Valuation of Stock-in-trade:

Sl.

Descrip-

tion

Item Code

UOM

Opening Stock

Closing Stock

Qty

NRV

Lower of

(6) or (7)

Value (5) x (8)

Qty

COP/

NRV

Low

er of

(11)

(12)

Value

(10) x

(13)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

Product

.........

Total

(b) Valuation of Work-in-Progress (WIP) (refer Note 7):

Sl.

Descrip-

tion

Item

Code

UOM

Opening Stock

Closing Stock

Qty

COP

NRV

Lower of

(6) or (7)

Value (5) x (8)

Qty

COP

NRV

Low

er of

(11)

(12)

Value

(10) x

(13)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

WIP 1

WIP 2

WIP 3

.........

Total

Sl.

Descrip-

tion

Item

Code

UOM

Opening Stock

Closing Stock

Qty

Pur-

chase

cost

Repla-

cement

rate

Lower

of (6)

(7)

Value

(5) x (8)

Qty

Pur-

chase

cost

Re-

pla-

ce-

ment

rate

Low-

er of

(11)

(12

)

Value

(10) x

(13)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

RM 1

RM 2

RM 3

… ..

Total

(d) Valuation of By-Products

Sl.

Description

Item Code

UOM

Opening Stock

Closing Stock

Quantity

NRV

Value

(5)x(6)

Quantity

NRV

Value

(8)x(9)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

By-Product

… … … .

Total

(e) Valuation of Intermediate Products (IMP) (refer Note 8)

Sr.

Descrip-

tion

Item

Code

UOM

Opening Stock

Closing Stock

Qty

COP

NRV

Lower

of (6) or

(7)

Value

(5) x

(8)

Qty

COP

NRV

wer of (11)

(12)

Value

(10) x

(13)

(1)		(2)			(3)	(4)	(5)		(6)		(7)			(8)		(9)			(10)		(11)			(12)		(13)	(14)
1		IMP 1
2		IMP 2
3		IMP 3
		…….
		Total
(f) Valuation of Others
Description								Opening Value												Closing Value
Jigs, Tools, and Dies
Stores, Spares and Consumables
Scrap
Others
Total
(g) Summary of Inventory Valuation as on … … … .
	Sl.			Particulars						Value as per Form No. 26 (If Form No. 26 not furnished, then value as per audited ac- counts)					Value as per Cost Accountant								Variation if any
										Opening		Closing			Opening			Closing					Opening		Closing
	(1)			(2)						(3)		(4)			(5)			(6)					(7)		(8)
																							(5) - (3)		(6) – (4)
	1			Finished Goods
	2			Stock- in-Trade
	3			Work-in-Progress
	4			Raw Material
	5			By-Products
	6			Intermediate products
	7			Jigs, Tools, and Dies
	8			Stores, Spares and Consumables
	9			Scrap
	10			Others
	11			Total
	12			Impact on Profit or Loss
	13			Impact on Income Tax


(h) (viii) Details of inventory valuation carried out by the Cost Accountant:
			Inventory Items										Method of valuation used by the Cost Accountant									In case of variation in the method adopted by the as- sessee, state reasons for variations in quantity, rates and value along with meth- od adopted by the Cost Ac- countant for various items of inventory giving full jus- tification.
													Opening stock				Closing stock
	a.		Finished Goods (manufactured)
	b.		Stock-in-trade
	c.		Work-in-progress (WIP)

Raw materials

By-products

Intermediate Products

Jigs, Tools, and Dies

Stores, Spares and Consumables

Scrap

Any other item

(i) Any other relevant comment, observation or qualification of the Cost Accountant:

Details of inventory valuation for the relevant period under reporting by the Cost Accountant (wherever ICDS II is not applicable) (refer Note 9):

A. Inventory valuation for Assessees engaged in the Construction Contracts which are dealt with by the ICDS III:

(i) Valuation of Completed Units Ready for Sale (refer Note 10)

Sl.

Description

Type of

Completed units

Subtype if any

Closing Stock

Opening Stock

Qty

Cost

the

unit

for

each

type

NRV

Value

[(5) X

lesser

of ((6)

(7))]

Qty

Cost

of the

unit

for

each

type

NRV

Value

[(9) X

lesser

((10)

or (11))]

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Project 1

Project 2

Project 3

… ..

Total

(ii) Valuation of Construction Work-in-progress

Sl.

Description

Closing Stock

Opening Stock

%age Com- pletion

Total to-date

construction cost

Cost as per

recognised

revenue

Value of Work-

in- pro- gress

[(4)-(5)]

%age Com- pletion

Total to-date

construction cost

Cost as per

recognised

revenue

Value of

Work-in-

progress

[(8)-(9)]

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Project 1

Project 2

Project 3

………

Total

(iii) Valuation of construction materials

	Sl .		Descrip- tion		Item Cod e		UO M		Opening Stock												Closing Stock
									Qt y		Pur- chase cost		Repla- ce- ment rate			Low er of (6) or (7)			Val- ue (5) x (8)		Qty		Pur- chase cost		Repla- ce- ment rate			Low- er of (11) or (12)			Val- ue (10) x (13)
	(1)		(2)		(3)		(4)		(5)		(6)		(7)			(8)			(9)		(10 )		(11)		(12)			(13)			(14)
	1		Material 1
	2		Material 2
	3		Material 3
			… … … .
			Total
(iv) Valuation of construction fittings, supporting equipment and others
Sl .	Descrip- tion			Item Cod e		UO M		Opening Stock												Closing Stock
								Qt y		Pur- chase cost		Repla- ce- ment rate			Low- er of (6) or (7)			Val- ue (5) x (8)		Qty		Pur- chase cost		Repla- ce- ment rate			Low- er of (11) or (12)			Val- ue (10) x (13)
(1)	(2)			(3)		(4)		(5)		(6)		(7)			(8)			(9)		(10 )		(11)		(12)			(13)			(14)
1	Item 1
2	Item 2
3	Item 3
	………
	Total

(v) Summary of Inventory Valuation for Construction Contracts as on ………………
Sl.		Particulars							Value as per Form No. 26 (If Form No. 26] not fur- nished, then value as per audited accounts)								Value as per Cost Account- ant									Variation if any
									Opening					Closing			Opening				Closing					Opening			Closing
(1)		(2)							(3)					(4)			(5)				(6)					(7)			(8)
																										(5)-(3)			(6)-(4)
1		Completed units ready for sale
2		Construction Work-in- progress
3		Construction Materials
4		Construction Fittings, sup-

porting equipment and Others

Total

Impact on Profit or Loss (Specify the amount by which profit or loss would be affect-

ed by the changed valuation)

Impact on Income Tax

(vi) Details of inventory valuation carried out by the Cost Accountant (refer Note 10):

Inventory Items

Method of valuation used by the

Cost Accountant

In case of variation in the method adopted by the as- sessee, state reasons for varia- tions in quantity, rates and val- ue along with method adopted by the Cost Accountant for various items of inventory giv- ing full justification.

Opening stock

Closing stock

Completed units ready for sale

Construction Work-in-progress

Construction Materials

Construction Fittings, supporting equipment and Others

(vii) Any other relevant comment, observa- tion or qualification of the Cost Accountant

B. Inventory valuation for Assessees engaged in the trading of Securities which are dealt with by the ICDS VIII

(i)(a) Valuation of Listed Shares held as Stock-in-trade

Sr.

Description

Opening Stock

Closing Stock

Qty

NRV

Lower of

(4) or (5)

Value

(3)X (6)

Qty

NRV

Lower of

(9) or (10)

Value

(8)X (11)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Share 1

Share 2

Share 3

… …..

Total

(i)(b) Valuation of Unlisted Shares held as Stock-in-trade

Sl.

Description

Opening Stock

Closing Stock

Qty

NRV

Lower of

(4) or (5)

Value

(3)X (6)

Qty

NRV

Lower of

(9) or (10)

Value

(8)X (11)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Share 1

Share 2

Share 3

……….

Total

(ii) Valuation of Debt Securities held as Stock-in-trade

Sl.

Description

Opening Stock

Closing Stock

Qty

NRV

Lower of

(4) or (5)

Value

(3)X (6)

Qty

NRV

Lower of

(9) or (10)

Value

(8)X (11)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Debt Security 1

Debt Security 2

Debt Security 3

… … … … ..

Total

(iii) Valuation of Convertible Securities held as Stock-in-trade

Sl.

Description

Opening Stock

Closing Stock

Qty

NRV

Lower of

(4) or (5)

Value

(3)X (6)

Qty

NRV

Lower of

(9) or (10)

Value

(8)X (11)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Convertible Security 1

Convertible Security 2

Convertible Security 3

……………

Total

(iv) Valuation of Any other security held as Stock-in-trade

Sl.

Description

Opening Stock

Closing Stock

Qty

NRV

Lower of

(4) or (5)

Value

(3)X (6)

Qty

NRV

Lower of

(9) or (10)

Value

(8)X (11)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Any other Security 1

Any other Security 2

Any other Security 3

…………….

Total

(v) Summary of Inventory Valuation for Shares, Debentures and other Financial Instruments held as stock- in-trade as on

Sl.

Category

Value as per Form No.

26 (If Form No. 26 not furnished, then value as per audited accounts)

Value as per Cost Accountant

Variation if any

Opening

Closing

Opening

Closing

Opening

Closing

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(5) – (3)

(6) – (4)

Listed Shares

Unlisted Shares

Debt Securities

Convertible Securities

Any other Security

Total

Impact on Profit or Loss (Specify the amount by which profit or loss would be affected by the changed valuation)

Impact on Income Tax

(vi) Details of inventory valuation carried out by the Cost Accountant (refer Note 12)

Inventory Items

Method of valuation used by the Cost Accountant

In case of variation in the method adopted by the as- sessee, state reasons for

variations in quantity, rates and value along with meth- od adopted by the Cost Ac- countant for various items of inventory giving full

justification.

Opening stock

Closing stock

Listed Shares

Unlisted Shares

Debt Securities

Convertible Securities

Any other Security

(vii) Any other relevant comment, observa- tion or qualification of the Cost Accountant

C. Inventory valuation of livestock, agriculture and forest products, mineral oils, ores and gases, except those held by the trader of such inventories (refer Note 13)

(i) Valuation of Inventory of Livestock

Sl.

Description

UOM

Closing Stock

Opening Stock

Quantity

NRV

Value

(4)X(5)

Quantity

NRV

Value

(7)X(8)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Livestock 1

Livestock 2

Livestock 3

…………

Total

(ii) Valuation of Inventory of Agriculture and Forest Produce

Sl.

Description

UOM

Closing Stock

Opening Stock

Quantity

NRV

Value

(4)X(5)

Quantity

NRV

Value

(7)X(8)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Produce 1

Produce 2

Produce 3

…………

Total

(iii) Valuation of Inventory of Mineral Oils, Ores and Gases

Sl.

Description

UOM

Closing Stock

Opening Stock

Quantity

NRV

Value

(4)X(5)

Quantity

NRV

Value

(7)X(8)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Product 1

Product 2

Product 3

…………

Total

(iv) Summary of Comparison as on … … … … ..

Sl.

Category

Value as per Form No.

26 (If Form No. 26 not furnished, then value as per audited accounts)

Value as per Cost Accountant

Variation if any

Opening

Closing

Opening

Closing

Opening

Closing

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(5) – (3)

(6) – (4)

Livestock

Agriculture and Forest Produce

Mineral oils, Ores and Gases

Total

Impact on Profit or Loss (Specify the amount by which profit or loss would be affected by the changed valuation)

Impact on Income Tax

(v) Details of inventory valuation carried out by the Cost Accountant

Inventory Items

Method of valuation used by the Cost Accountant

In case of variation in the

method adopted by the as-

sessee, state reasons for vari- ations in quantity, rates and value along with method

					adopted by the Cost Ac- countant for various items of inventory giving full justifi- cation.
			Opening stock	Closing stock
	a.	Livestock
	b.	Agriculture and Forest Produce
	c.	Mineral oils, Ores and Gases
(vi) Any other relevant comment, observation or qualification of the Cost Accountant

Place Signature

Date

Name of the Accountant:

Member Registration Number:

Permanent Account Number: Unique Document Identification Number (UDIN), if any:

Name of the proprietorship/ firm:

Firm Registration Number:

Notes:

1. In case of individual, the first, middle and last name shall be provided in full without any abbreviations. In any oth- er case also, name shall be provided in full.

2. The address shall contain Country/Region, ii. Flat/Door/Block number iii. Road/Street/Block/Sector, iv. PIN/ZIP Code, v. Post Office, vi. Area/locality, vii. District, viii. State.

3. In case available, details of HSN codes and SAC code for services should be provided for principal products/ ser- vices.

4. While filing details in Part B, Row No. 4, please note the following:

(i) Inventory ofall such raw materials that constitute top 80% of the total inventory value of raw materials should be reported item-wise separately. Inventory ofall other raw materials constituting balance may be clubbed under “Others” .

(ii) Add number of rows depending on the number of raw materials

(iii) Other adjustments include Shortage/ Wastages / Rejects, etc.

5. While filing details in Part B, Row No. 5, please note the following:

(i) Add number of rows depending on the number of items

(ii) Separate quantitative details on the above lines should be given in respect of by-products, if any.

(iii) Where the assessee is trading in goods, quantitative details on the above lines should be given in respect of the goods traded in.

(iv) Inventory ofall such manufactured goods / traded goods / work-in-progress items that constitute top 80% of the value of total manufactured goods / traded goods / work-in-progress items respectively should be reported item-wise separately. Inventory ofall other manufactured goods / traded goods / work-in-progress items constituting balance may be clubbed under “Others”

6. While filing details in Part B, Row No. 8, please note the following:

(i) COP: Cost of Production

(ii) PV: Purchase Value

(iii) NRV: Net Realisable Value

(iv) Add or delete rows as per the number of items

(v) The item level details shall be maintained by the Assessee and the Cost Accountant and produced if re- quired by the Assessing Officer.

(vi) Income Computation and Disclosure Standard II shall be applied for valuation of inventories, except:

a. Work-in-progress arising under ‘construction contract‘ including directly related service con- tract which is

b. dealt with by the Income Computation and Disclosure Standard on construction contracts;

c. Work-in-progress which is dealt with by other Income Computation and Disclosure Standard;

d. Shares, debentures and other financial instruments held as stock-in-trade which are dealt with by the Income Computation and Disclosure Standard on securities;

e. Producers‘ inventories of livestock, agriculture and forest products, mineral oils, ores and gases to the extent that they are measured at net realisable value;

7. For Row No. 8(b), NRV here means NRV of relevant finished product less estimated completion cost

8. For Row No. 8(e), intermediate products include only such products which are at intermediate stage and not in- cluded elsewhere

9. Add number of rows depending on the number of Projects

10. While filing details in Part B, Row No. 9(A)(i), please note the following:

(i) Type means BHK size/Affordable/ Premium/Commercial etc. which is identifiable as different sale unit

(ii) Completed Units mean Plots/Flats/commercial units/Villas/Floors which are ready for sale and have been included in inventory as such

(iii) The valuation of Land (Shown separately in Inventory Valuation in financials) and Development Rights can be shown here, if required.

11. While filing details in Part B, Row No. 9(A)(vi), specify the method used to determine the stage of completion of contracts in progress.

12. While filing details in Part B, Row No. 9(B), please note the following:

(i) AC: Actual Cost

(ii) NRV: Net Realisable Value

(iii) Note: Add number of rows depending on the number of shares/securities

(iv) With respect to 9(B)(vi), specify the method used to determine the Actual Cost and Net Realisable Value for each category of financial instruments.

13. While filing details in Part B, Row No. 9(C), please note the following:

(i) NRV: Net Realisable Value

(ii) Add number of rows depending on the number of Livestock/Produce/ Products

14. Amounts to be filled in ₹ unless otherwise provided.

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Source: Income-tax Rules, 2026, Appendix III – notified by the CBDT vide G.S.R. 198(E) dated 20 March 2026. Reproduced for reference; the layout of the official Gazette form may differ slightly. Please verify with the official notification.