A Retail Textile Case Study

The Starting Point

Old, slow-moving stock across the client’s two flagship stores had been quietly accumulating for years, tying up a significant share of working capital in inventory that was ageing rather than turning. As of 31-03-2025, closing stock stood at approximately ₹6.3 crore in the Mens section and ₹6.8 crore in the Womens section — a combined ₹13 crore-plus sitting on the shelves. Without a structured mechanism to identify and push aged stock out, the problem was set to compound year after year, quietly eroding cash flow and margin.

The Approach

The audit team built and maintained a dedicated old-stock tracker covering both sections of the business, and stayed on it through every cycle rather than treating it as a one-time clean-up. The tracker gave management visibility into exactly which lines were ageing, and the team followed up relentlessly — cycle after cycle — until liquidation showed up in the closing numbers rather than remaining a line item on a report.

The Outcome

By 31-03-2026, sustained tracking and follow-up had brought closing stock down sharply in both sections:

Combined stock value across both sections came down 37% year-on-year — approximately ₹4.9 crore liquidated over the year, with the Womens section seeing the sharper reduction at 39% against 35% in Mens.

Why It Matters

The result did not come from a single write-off or clearance sale — it came from a tracker that was maintained cycle after cycle and a team that followed up until the numbers moved. That is the difference between flagging old stock as an observation and actually unlocking the working capital it was holding hostage.