ANNEX A STOCKTAKING PROCEDURES


STOCKTAKING PERSONNEL

GENERAL
1.   The Chairman of the Stocktaking Board shall advise all members of
     the stocktaking team of the outlets in which they will be conducting a
     physical count.
2.   The members shall be provided with a copy of this Annex.
3.   The members shall familiarize themselves with the configuration of
     the outlets where they will be employed.
4.   Unless otherwise indicated in this manual, double counting is the
     minimum standard acceptable for stocktaking purposes. If the double
     count is conducted properly, the accuracy of the results and the level
     of confidence in the results are substantially enhanced. This, in turn,
     reduces the requirement for recounts. For CANEX, the outlet manager or
     department supervisor shall perform test counts in lieu of second
     counts.
5.   The stocktaking team supervisor shall identify the most effective
     means of assigning personnel to carry out the physical count and shall
     prepare an assignment of responsibility schedule which provides for a
     double count of all areas.
6.   If applicable, the last page of the CF 614 is to include any
     undeposited cash on hand from sales (excluding sales taxes) and the
     retail value of bar cards and spoilage/breakage registers on hand. These
     items form part of the accountable retail inventory.
7.   If applicable, the last page of the CF 614 or CF 1023 is to
     indicate the verification of change floats, petty cash funds and bar
     measuring devices (eg. jiggers). These items are not to be included in
     the retail inventory totals. Copies of the funds verifications are to be
     attached to the stocktaking report.

CONDUCTING THE FIRST COUNT


8.   The stocktaking team member and the outlet employee shall count
     all items in their area.
                                 NOTE


     The count shall be conducted according to the prepared plan which
     identifies the sequence of count (ie. left to right top shelf,
     then left to right centre shelf, then left to right bottom shelf.


9.   Once both parties have agreed to the count of an item, the
     stocktaking member shall record the item description, age, quantity, and
     unit price on form CF 614 or CF 1023 as applicable.


10.   Upon completion of the count, both parties shall sign the
      applicable section of form CF 614/1023 indicating their agreement with
      the information thereon.


11.   Completed forms CF 614/1023 shall be delivered to the team
      supervisor who shall issue same to the personnel responsible to carry
      out the second count.

CONDUCTING THE SECOND COUNT


12.   The personnel assigned to perform the second count shall follow
      the same sequence items as specified for the first count.
13.   Where the count is the same as recorded by the first team, a check
      mark (~) shall be entered in the second count quantity column.
14.   Where the counts differ, a recheck shall be carried out
      immediately by the "second count" team. If the recheck proves the first
      count to have been correct, a check mark is recorded in the second count
      quantity column. If the second count is correct, the second quantity
      column shall be completed to reflect that count.
15.   Upon completion of the second count, all forms CF 614/1023 shall
      be signed in the applicable section by both parties and returned to the
      team supervisor.