A STUDY ON INVENTORY MANAGEMENT STATEMENT OF PROBLEM

A study of inventory management at Jagadamba Container is undertaken in order to know the inventory performance and position of the company and to know the strength and weakness and to assess the profitability of the company. Inventories constitute most significant part of assets of large majority of the companies in India. Inventory a double edged sword is usually an asset of an organization, if not used properly it will become liability. It is therefore absolutely very important to manage inventories efficiently and effectively in order to overcome unnecessary investment. And To identify the problems/challenges involved in the Inventory Management process at Jagadamba Container.

OBJECTIVES OF THE STUDY

The main objectives of the study are:OBJECTIVES: 1.To study the tools and techniques of inventory management adopted at Jagadamba Container. 2. To study the inventory control measures in inventory management. 3. To study the demand forecast of inventory management at Jagadamba container. 4. To study how ABC analysis and aging schedule is implemented in inventory management. 5. To determine the stock level in inventory management at Jagadamaba container. 6. To identify problems related to inventory management and to find out suitable measure to overcome them. 7. To study the methods of valuation of inventory on Jagadamba container. 8. To study the inventory management procedure. 9. To make a comparative study of inventory management in last 5 years using ratio analysis technique.

Methodology of data collection a) Primary data The primary data is collected by personal interviews with officials. b) Secondary data Files, annual reports, periodicals, manuals and text book. Which have already been passed through the statistical process are the secondary data used. c) Field work This was undertaken individually to collect various information regarding the study by visiting the following sections. Stores departments Information regarding stocking of materials receipts and issues to workshops .Inventory control procedures in various wards inside the department were obtained. Accounts department Remaining all the information was obtained from accounts department through personal interviews with section officials. Plan of analysis The analysis and interpretation was collected from finance department thus processed and tabulated is in the form of tables and graphs. The table thus obtained by calculating average, percentage, turnover ratio, graphs and diagram in respect of the stock of raw materials sales & inventory control procedures and thus to draw conclusion from the analysis done. Scope of the study

This study is to find the facts and opinions of inventory management and control at Jagadamba container.
In accordance with the present trends it aims mainly at finding out the inventory control procedures at Jagadamba Container. This study gives the brief information about the inventory management of the indo Jagadamba Container. The study was done by using annual reports, inventory manualetc. Limitation of the study Time restriction was only 30 days of project work in the organization. The information, which was needed, could not be made public by the organization.

 The study are related to Jagadamba Container, Ernakulam The finding and suggestion cannot be generalized. The study covered a wide concept hence wide collection and coverage of information was not easily possible.

INTRODUCTION TO INVENTORY MANAGEMENT

Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacities stands idle for lack of materials.

The most important objective or inventory control is to determine and maintain an optimum level of investment in the inventory. Most companies have now successfully installed one or the other system of inventory planning and control. Inventory management and Inventory Control must be designed to meet the dictates of the marketplace and support the companys strategic plan. The many changes in market demand, new opportunities due to worldwide marketing, global sourcing of materials, and new manufacturing technology, means many companies need to change their Inventory Management approach and change the process for Inventory Control. Despite the many changes that companies go through, the basic principles of Inventory Management and Inventory Control remain the same. Some of the new approaches and techniques are wrapped in new terminology, but the underlying principles for accomplishing good Inventory Management and Inventory activities have not changed. The Inventory Management system and the Inventory Control Process provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities, and communicate with customers. Inventory Management and the activities of Inventory Control do not make decisions or manage operations; they provide the information to Managers who make more accurate and timely decisions to manage their operations. The basic building blocks for the Inventory Management system and Inventory Control activities are:
Sales Forecasting or Demand Management Sales and Operating Planning Production Planning Material Requirements Planning

Inventory Reduction The emphases on each area will vary depending on the company and how it operates, and what requirements are placed on it due to market demands. Each of the areas above will need to be addressed in some form or another to have successful program of Inventory Management and Inventory Control.

NEED TO HOLD THE INVENTORIES

There are the four major reasons for holding inventories. 1. TRANSACTION PURPOSE: Which emphasized the need to maintain inventories to smoothen production and sales

operations, which is for the day-to-day use. 2. SAFETY PURPOSE: Which necessities holding of inventories to guard against the risk of unpredictable changes in the market. 3. SPECULATIVE PURPOSE: There is a speculative element which influences the decision to increase or decrease Inventory levels to take advantage of price change.

TYPES OF INVENTORIES:
Inventories can be classified in terms of its different uses, which will enable one to appreciate the peculiarities and problems in its uses. Secondly the differentiation based on uses of inventories will enable one to adopt control techniques to suit the needs Inventories are classified according to uses and point of entry in the alteration is as follows: 1. Raw Material 2. Spares and Consumables 3. Work in Process Goods and 4. Finished Goods
Reference: http://seminarprojects.com/Thread-inventory -management#ixzz29YC4Z5ox

ACHIEVEMENTS AND AWARDS IF ANY

Inside outside Mega Show 2008 1. 1st prize CHENNAI 2. 2nd prize HYDERABAD

FUTURE GROWTH AND PROSPECTUS

The first and foremost objective of the film is to maintain the quality of productTo be the leader in the Window blind industry, this is the major goal of Mattscorner India pvt.ltd. To expand operations to foreign countries To acquire the North Indian market To maintain the quality of products To maintain a healthy competition with the competitors To regulate production process without damages/defects

INTRODUCTI ON

INVENTORY MANAGEMENT
CONCEPTS, MEANING, AND NATURE OF INDUSTRY
The dictionary meaning of inventory is stock of goods, of a list of goods. Various authors understand the word Inventory differently. In accounting language it may mean stock of finished goods only. In manufacturing concern, it may include raw materials, work in process and stores etc. to understand the exact meaning of inventory of the word inventory we may study it from the usage side or from the side point of entry in the operations. Inventory includes the following things:

RAW MATERIAL
Raw material from a major part input in to the organization. They is required to carry out production activities uninterruptedly. The quantity of materials required will be determined by the rate of consumption and the time required for replenishing the supplies. The factors like availability of raw materials and government regulations, etc. to affect the stock of raw materials.

WORK IN PROGRESS
The work in progress is the stage of sticks, which are in between raw materials and finished goods. The raw materials enter the process of manufacture but they are yet attain the final shape of finished goods. The quantum of work in progress depends upon time taken in the manufacturing; the more will be the amount of work in progress.

CONSUMABLES
These are the raw materials, which are needed to smoothen the process of production. These materials do not directly enter production but they act as catalysts etc. consumables may be classified according to their consumption and criticality. Generally consumable stores do not create any supply problem and form a small part of production cost. There can be instances where these materials may account for much value than the raw materials. The fuel oil may form a substantial part of cost.

FINISHED GOODS
There are goods in which are ready for the consumers. The stock of finished goods provides a buffer between production and market. The purpose of maintaining inventory is to ensure proper supply of goods to consumers. In some concerns the production is undertaken on order basis, in these concerns there will not be need for finished goods. The need for finished goods inventory will be more when production is undertaken in general without waiting for specific orders.

SPARES
Spares also form a part of inventory. The consumption pattern of raw materials, consumables, finished goods are different from that of spares. The stocking policies of spares are different from industry to industry. The investment in inventory is very high in most of the undertakings engaged in manufacturing, wholesale and retail trade. The amount of investment is sometimes more in inventory than in other assets. An efficient system of inventory management will determine What to purchase How much to purchase From where to purchase Where to store etc

There is conflicting interest of different departmental heads over the issue of inventory. The finance manager will try to invest less in inventory because of him it is an idle investment, whereas production managers will emphasis to acquire more and more inventory, as he does not want any interruption in production due to shortage of inventory. The purpose of inventory management is to keep such that neither there is overstocking nor under stocking. The overstocking will remain a reduction of liquidity and starving of other production processed: under stocking, on the other hand will result in stoppage of work. The investment in inventory should be kept in reasonable limits.

Inventory Turnover Ratio

Meaning

This ratio indicates the speed at which inventory is converted in to sales, which contributed, to the profits of the organization. Higher the ratio the better will be the efficiency.

Inventory Conversion Period

Meaning This ratio indicates the number of days taken to convert the inventory and very useful in deciding the organizations efficiency. It also helps to show financing institutions about their efficiency, to obtain finance from them.

Duration of raw Material Stage

Meaning Duration of raw material means that the number of days taken for the production unit to convert the raw material into work in progress and to finish well, this helps the organization to know the current requirements of the stock of other items like consumables and spares for the future process.

Duration of the finished goods

Meaning This indicates the duration of conversion of finished goods into sales. It is also called as finished goods holding period.

1.4 REVIEW OF LITERATURE

The Purchasing Manifesto
PurchTips Edition #145 February 12, 2008 By Charles Dominick, SPSM

Are You Communicating Purchasings Benefits?

Because it can be difficult to gain buy-in from functional departments when trying to get them to accept Purchasings involvement. It is important to have a list of reasons why

it will benefit them to work with Purchasing. So I encourage you to develop such a list - a Purchasing Manifesto, if you will to aid in your efforts to sell the value of working with Purchasing. Here is an example of four points you can include in your Purchasing Manifesto.

1. Purchasings Involvement Allows You To Focus On Your Core Competency. You have a very important role in the organization. Your expertise
in your function makes you valuable. With Purchasing handling your procurement activities, youll be able to spend more of your time on what you do best.

2. Purchasings Involvement Helps You Avoid Last Minute Crises.

Your department is very busy with many competing priorities. In many departments that meet that same description, procurement activities are often put off until the last minute. This results in failure to find the best value in the market, paying expediting shipping charges or, worst of all, not obtaining goods and services on-time. Purchasing can help you avoid these headaches.

3. Purchasings Involvement Gets The Most Out Of Your Budget.

Unless your department invests in negotiation training for its staff and gives them the daily opportunity to negotiate with suppliers, suppliers may have an advantage in bargaining. Because the purchasing staff regularly receives negotiation training, negotiates daily, and keeps up to date with the latest cost saving techniques, Purchasing can help save your department money and alleviate some of your budget constraints.

4. Purchasings Involvement Can Uncover Unforeseen Obstacles. Whether it be seeing the warning signs of a supplier in financial trouble, identifying a material in short supply, or just knowing the typical timelines associated in getting the goods or services you need, Purchasing reduces risks to your departments operations.

1.5 STATEMENT OF PROBLEM

TITLE OF THE STUDY: Inventory Management in Matts corner India pvt ltd.
One of the most important areas in the day-to-day management of the firm is the management of the inventory. Inventory management is the functional area of finance that covers the efficiency of a manufacturing firm. It is concerned with the management of inventories as well as efficiency in cost reduction. The study helps in evaluating efficiency of inventory management of Matts corner India pvt ltd.

1.6 OBJECTIVES OF STUDY

The main objectives of the study are, 1. To understand the various techniques of inventory management and its control. 2. To understand the effectiveness of inventory management through various techniques. 3. To analyze the function, procedures in inventory management. 4. To study the control measures in inventory management. 5. To make a comparative study of inventory management in the last three years. 6. To introduce stock levels for the proper management of the department.

1.7 NEED FOR STUDY

Inventory Management must be designed to meet the dictates of market place and support the companys Strategic plan. The many changes in the market demand, new opportunities due to worldwide marketing, global sourcing of materials and new manufacturing technology means many companies need to change their Inventory Management approach and change the process for Inventory Control. This system provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities and communicate with customers. Inventory Management does not make decisions or manage operations; they provide the information to managers who make more accurate and timely decisions to manage their operations.

To know the effectiveness of inventory management in the company. To know the importance of inventory management. How to maintain average inventory level in an organization. For finding the inventory conversion period. To study the overall inventory transactions done in a company.

1.8 SCOPE OF THE STUDY

The first step in developing a system for materials management is to choose the right type of classification for the materials and then apply appropriate techniques such as: The economic order quantity (EOQ) formula Bulk ordering with time phased delivery A fixed order quantity system A fixed order period system A probability based trade off matrix Speculative consideration

All these controls are applicable to inventory management in all industry, but since the time allowed for this project is limited. The assessments are included under the heading analysis and interpretation of the data

1.9 RESEARCH METHODOLOGY

Research methodology simply refers to a methodical study in order to prove a hypothesis or answer a specific question. Finding a definitive answer is the central goal of any experimental process.

RESEARCH DESIGN
Research design means a search of facts, answers to question and solution to the problems. It is a prospective investigation. Research is a systematical logical study of an issue or problem through scientific method. It is a systematic and objective analysis and recording of controlled observation that may lead to the development of generalization, principles, resulting in prediction ultimate control of events.

Research design is the arrangement of conditions for the collection and analysis of data in manner that aims to combine relevance to the research purpose with relevance to economy. There are various designs, which are descriptive and helpful for analytical research. In brief a research design contains

A clear statement of the research problem. A specification of data required Procedure and techniques to be adopted for data collection. A method of processing and analysis data Identifying the statement of the problem. Collection of the companys specific literature i.e., annual reports for the study period and the profile of the company. Scanning through standard books to understand the theory behind the financial performance evaluation Collection of information from various journals to understand the industrial background of the study.

Sources of data:
There are two sources of data. They are as follows 1. Primary data 2. Secondary data Primary data This data was collected through discussion with concerned officers by sitting with them in free time. Secondary data It is reviewing of relevant information, which is already collected and making inferences based on the information collected. The secondary data used in the study are 1. Annual Report of the company 2. Financial Records of the company 3. By viewing how they place order

Tools and Techniques: A financial analyst can adopt the following tools for analysis of the financial statements. These are also termed as methods of Financial Analysis. The tool and techniques used in the study are following 1. Inventory analysis and interpretation. 2. Current ratio and quick ratio analysis. 3. Statistical techniques.

1.10 LIMITATIONS OF THE STUDY

1. Time constraint 2. All the informations could not be made public by the organization. 3. A thorough discussion with all officials was not possible due to their busy schedules. 4. The study covered a wide concept and owing to the above constraints, wide collection and coverage of information was not possible. 5. Financial statements are essentially interim reports: 6. Influence of personal judgment:

CHAPTER 2
ANALYSIS AND INTERPRETATION

Plan of Analysis The data collected through primary and secondary sources were processed and presented in the chapter. Data analysis by charts in respect of stock of raw materials, sales, inventory control procedures and thus to draw conclusion from the analysis done. Data Analysis Evolution of Primary Data: Data collected through discussion with top management and other departments like, Accounts, stores etc. From the discussion, I came to know that the Matts Corner has both types of inventories. i.e., Physical and value based inventories. The inventory system here is fully computerized. Purchasing department is supplying the raw materials required by the production or service unit. The company is following Determination of stock level inventory management technique. It includes: 1. Maximum Level 2. Minimum Level 3. Re-order Level 4. Danger Level Inventory Turnover ratio: Concept: This ratio indicates the speed at which the inventory is converted into sales, which contributed, to the profit of the organization. Higher the ratio better will be the efficiency. Inventory turnover ratio = cost of sales / Average inventory Table showing cost of sales, average inventory and inventory turnover ratio.

Table-2 .1 Inventory TurnoverRatio

Year

Cost of Sales

Average Inventory

Inventory

Turnover Ratio 2010 - 2011 2011 2012 2012 - 2013

Source: Annual Report

9689186 7564020 8041837

543222 478765 497557

17.83651251 15.79902457 16.16264468

Chart-2.1 Inventory Turnover Ratio Analysis Inventory turnover ratio in 2010 11 is 17.83 and it decreased to 15.79 in 2011 12 and in the year 2012 13 it increased to 16.16. Interpretation The inventory turnover ratio is 39.00 times on an average. This is because the cost of sales increases more proportionately than the average inventory. The higher the ratio better will be the efficiency; company should try to reduce average inventory and increase sales. Inventory Conversion Period Concept: This ratio indicates the number of days taken to convert the inventory. This ratio is very useful in deciding the organizations efficiency. This ratio helps the organization in knowing its own efficiency to improve and also to show the financing institutions about its capacity and its utilization, to obtain finance from the institutions mainly from banks. Inventory Conversion Period = 365 days/ Inventory turnover ratio. Table showing the Inventory Conversion Period. Table 2.2 Inventory Conversion Period

Year

No. of Days

Inventory Turnover Ratio

Inventory Conversion Period 20.46364163 23.10269209 22.5866337

2010 - 2011 2011 - 2012 2012 - 2013

Source: Annual Report

365 365 365

17.83651251 15.79902457 16.16264468

Chart - 2.2 Inventory Conversion Period Analysis Inventory conversion period during the year 2010 11 was 20 days while it increased to 23 days in 2011 12 and it decreased to 22 days in 2012 13. Interpretation The inventory conversion period increased because of less inventory turnover ratio in the year 2011 12, which is favourable to the company.

Raw Material Turnover Ratio:

Concept: Raw material turnover ratio is the velocity at which the raw materials are converted in to goods ready for sales. If the raw material turnover ratio is high then the company is efficiently converting the raw materials in to finished goods. [Raw material turnover ratio = Cost of goods sold/ Average raw material] Table showing cost of sales, average raw material and raw material turnover ratio.

Table 2.3 Raw Material Turnover Ratio

Year 2010 - 2011 2011 2012 2012 2013

Source: Annual Report

Cost of Sales 9689186 7564020 8041837

Average Raw Material 736127 885069 1177717

Raw Material Turnover Ratio 13.16238366 8.546248937 6.828327179

Chart 2.3 Raw Material Turnover Ratio Analysis: Raw material turnover ratio in the year 2010 11, 13.16:1 Times, which decreased to 8.54:1 Times in the year 2011 12 and it decreased to 6.82:1 Times in the year 2012 13.

Interpretation: The raw material turnover ratio is high in initial year then it has gradually decreased in the next year due to gradually increase in average raw material and decrease in the cost of sales which indicates an unfavorable raw material turnover ratio.

Work in Progress Turnover Ratio: Concept:

Work-in-progress turnover ratio indicates the speed at which the work-in-progress is converted into the finished goods. This helps the organization to know the working capital requirement of the organization that helps in planning. Work-in-progress turnover ratio = Cost of goods sold / Average work in progress. Table 2.4 Work-ins- Progress Turnover Ratio

Year 2010 2011 2011 2012 2012 2013

Source: Annual Report

Cost of Sales 9689186 7564020 8041837

Average work-in- Work-in-progress progress turnover ratio 475667 354355 343654 20.36968299 21.34588195 23.40097016

Chart 2.4 Work-In-Progress Turnover Ratio Analysis: Here it is revealed that work in progress turnover ratio in 2010 -11 was 20.36 and is increased to 21.34 in the next year, and again increased to 23.40 in the last year 2012 13. Interpretation: Work in progress turnover ratio has increased gradually in all the years because of the proportionate change in the cost of goods sold.

Duration of Work-in-Progress Stage:

Concept:

This indicates the number of days taken to convert the work in progress stock into finished goods; this helps the organization to know the current requirement of stock of other items like consumable for the further process in the production. Duration of Work-in-Progress Stage = 365 / work in progress turnover ratio. The table showing work in progress turnover ratio and its duration. Table 2.5 Duration of Work-in-Progress stage

Year

No.of Days in a year 365 365 365

Work in progress turnover ratio 20.36968299 21.34588195 23.40097016

Days

2010 - 2011 2011 - 2012 2012 - 2013

Source: Annual Report

17.91879 17.09932 15.59764

Chart 2.5 Duration of Work-in-Progress Stage Analysis: The duration of converting work in progress to finished in 2010 11 was 17 days and in next year also 17 days were in 2012 13 it decreased to 15 days. Interpretation: There is a gradual decreased in work in progress turnover ratio conversion period because of increase in work in progress turnover ratio.

Inventory to Current Asset Ratio

Inventory to current assets ratio indicates the relationship between the inventory and current assets; it shows the percentage of inventory to current assets, which helps the organization in deciding the current asset policy, which also affect the liquidity position of the organization. Inventory to current asset ratio = Inventory / Current assets Table showing current assets, inventory and percentage of inventory to current assets. Table 2.6 Inventory to Current Asset Ratio

Year 2010 - 2011 2011 - 2012 2012 - 2013

Source: Annual Report

Inventory 2430704 3099915 8259400

Current Assets 5959565 8565154 14520339

Percentage 0.40786601 0.361921689 0.568815921

Chart- 2.6 Inventory to Current Asset Ratio Analysis: The inventory to current asset ratio in the year 2010 11 was 0.407% and it decreased to 0.361% in the year 2011 12. And in 2012 13 it is 0.568% and is high compare to previous years.

Interpretation: This ratio indicates the inventory components in the current assets. The inventory component in 2011 -12 was least which shows less funds blocked in current assets in form of stock. But in next year it started increasing which clearly indicates that more

portion of the inventory has blocked in current asset, at present is much higher in these period.

Inventory to Total Assets (Percentage of total assets):

Concept: Inventory to total assets indicates the relationship between the inventory and total assets. The significance of this ratio is it reflects the portion of the inventory as a percentage of the total assets, which helps the management in deciding the utilization of remaining resources profitably. Since the inventory will lock up the huge funds and reduces the profitability of the organization. Inventory to total assets = (Inventory / total assets) x 100 Table showing inventory, Total assets and its percentages. Table 2.7 Inventory To Total Assets

Year 2010 2011 2011 2012 2012 2013

Source: Annual Report

Inventory 2430704 3099915 8259400

Total Assets 12265929 15840910 22257003

Percentage 19.81671343 19.56904622 37.10921906

Chart 2.7 Inventory To Total Assets Analysis: During the year 2010 11 the ratio of inventory total assets was 1/5th and a slight decrease in the year 2011 12. In 2012 13 it increased to more than 1/3rd which is a

high increase in total asset. Interpretation: The inventory to total assets ratio indicates that what percentage of inventory is involved in the total stock. It was least in the year 2011 12. And the high increase in 2012 13 is because of increase in inventory in the total asset.

Inventory to total capital employed:

Concept: This ratio indicates the relationship between the total capital employed and inventories; it shows how much capital utilized to invest in the inventories other than the other assets. Inventory to capital employed ratio = Inventory / capital employed. Capital employed = share capital + preference shares + reserves and surplus + long term debt. Table 6 Table showing inventory and total capital employed and its ratio.

Table 2.8 Inventory to total capital employed:

Year 2010 2011

Inventory

Capital Employed(in lacs.) 1908333

Ratio { In Times}

2430704

1.273731576

2011 2012 2012 2013

Source: Annual Report

3099915 8259400

2597732 4930399

1.193315939 1.675199107

Chart 2.8 Inventory to capital Employed Ratio Analysis: In the year 2010 11 the inventory to capital employed was 1.27 times, the ratio is decreased in next year and a high increase in the year 2012 13 to 1.67 times. Interpretation: The increase in capital employed shows that capital utilized for the stocks have increased. Hence more portion of capital employed is invested in inventory which be clearly shown in the chart.

Inventory to working capital Ratio

Concept: The relationship between inventory to working capital indicates the amount of inventory included in the working capital. And it also shows the efficiency of inventory management. Inventory to working capital ratio = Inventory / working Capital Table showing inventory, working capital and its ratio.

Table 2.9 Inventory to Working Capital Ratio

Year 2010- 2011

Inventory 2430704

Working Capital 583607

Ratio {In Times} 4.164967178

2011 2012 2012 2013

Source: Annual Report

3099915 8259400

1212814 7709709

2.555969011 1.071298541

Chart 2.9 Inventory to Working Capital Analysis: The companys inventory to working capital ratio was 4.16 times in the year 2010 11 then it decreased in the next two years respectively. Interpretation: The inventory to working capital ratio has decreased in these period which indicate that working capital is involves less in inventory. So non-liquid assets are less than liquid assets.

Current Ratio:
Concept: Current ratio is a more dependable indication of solvency than working capital. It is the difference between current assets and current liabilities. Current Ratio = current asset / current liability Table showing current ratio of the company.

Table 2.10 Current Ratio

Year 2010 2011

Current Assets 8959565

Current Liabilities Ratio {in Times} 8375958 1.069676448

2011 2012 2012 - 2013

Source: Annual Report Chart 2.10 Current Ratio Analysis:

8565154 14520339

7352340 6810630

1.164956191 2.132011136

The current ratio of the company has increased from 1.06 to 2.13 in the periods 2010 to 2013. Interpretation: The current ratio of the company is high in these periods which mean that the current position of the company is good with respect to current liabilities.

Inventory to Sales Ratio:

Concept: Inventory to Sales indicates the relationship between the inventory and sales. It shows how much of the inventories should be sold in an year with regarding to total inventory, it shows companies sales of inventory. Inventory to Sales Ratio = (inventory / sales) x 100 Table showing Inventory, Sales and Inventory to Sales Ratio

Table 2.11 Inventory to Sales Ratio

Year 2010 2011 2011 2012 2012 - 2013

Source: Annual Report

Inventory 2430704 3099915 8259400

Sales 5468867 5858555 10774733

Inventory to Sales Ratio 44.44620796 52.91262094 76.65526375

Chart 2.11 Inventory to Sales Ratio Analysis: In the above table it shows in 2010 11 the inventory to sales ratio was 44.44% and in the next two years it is increasing to 52.91% and 76.65% respectively. Interpretation: Here it is the increasing of inventory to sales because of increase in inventory. It is best for more inventory more sales and high will be the return.

Purchase to Inventory Ratio:

Concept: Purchase to inventory shows the relationship between purchase and inventory. The formula to find purchase to inventory ratio is, Purchase to inventory ratio = purchase / inventory Table showing Purchase, Inventory and purchase to inventory ratio. Table 2.12 Purchase to Inventory Ratio

Year

Purchase

Inventory

Purchase to inventory ratio

2010 2011 2011- 2012 2012 - 2013

Source: Annual Report

7257446 7644266 8757648

2430704 3099915 8259400

2.985738288 2.465959873 1.060324963

Chart- 2.12 Purchase to Inventory Ratio Analysis: It is the purchase to inventory ratio in 2010 11 as 2.98%, which decreased to 2.46% in 2011 12, which again decreased to 1.06% in 2012 13. Interpretation: The decrease in the purchase to inventory ratio shows the decrease in profit.

SUMMARY AND FINDINGS

1. It is noted that Inventory turnover ratio in 2010 11 is 17.83 and it decreased to 14.37 in 2011 12 and in the year 2012 13 it increased to 16.16. 2. Inventory conversion period during the year 2010 11 was 20 days while it increased to 25 days in 2011 12 and it decreased to 22 days in 2012 13. 3. About 3/4th of the customers are thinks that processing time and processing cost of the company is reasonable, but some customers hints that processing time is high. 4. Here the raw material turnover ratio in the year 2010 11, 13.16:1 Times, which decreased to 1.76:1 Times in the year 2011 12 and it increased to 6.82:1 Times in the year 2012 13. 5. It can be seen that majority feels that there is a friendly approach from the employee towards the customers, but still considerable number of customers feels that employee approach is unfriendly. 6. The inventory to current asset ratio in the year 2010 11 was 0.407% and it decreased to 0.361% in the year 2011 12. And in 2012 13 it is 0.568% and is high compare to previous years. 7. During the year 2010 11 the ratio of inventory total assets was 19.81% and a slight decrease to 19.56% in the year 2011 -12. In 2012 13 it increased to 37.10% which is a high increase in total asset. 8. In the year 2010 11 the inventory to capital employed was 1.27 times, the ratio is decreased in next year and a high increase in the year 2012 13 to 1.67 times. 9. Working capital turnover ratio indicates that the company does not have an efficient control over the working capital. 10.The companys inventory to working capital ratio was 4.16 times in the year 2010 11 then it decreased in the next two years respectively. 11.The current ratio of the company has increased from 1.06 to 2.13 in the periods 2010 2013. 12.For more than half of the respondents quality seems to be the factor that attracted the public to purchase the brand they are experienced. 13.Majority of respondents holds the view that TV is an effective medium for advertisements.

A sincere effort has been made by the researcher to know the position of inventory. The inventory position thus known from this helps the manager to take good decision in the organization. Suggestions have also been given for the betterment of the company.

SUGGESTIONS
The major finding of the study paves a way for the researcher to provide the following suggestions to improve and develop inventory management in Matts corner India pvt ltd. 1. As the inventory turnover rate is low, the inventory is high. The efficiency of utilizing the inventory can be enhancing by reducing the stock levels to the required level only. 2. Inventory to total capital employed increased shows that much of the capital is utilized in inventories. The company can try to maintain a low ratio in this regard. 3. As the raw material turnover ratio is high it indicates excessive raw material stock lying idle, this can be reduced by purchasing the raw material when it is required. 4. The material can be purchased from the suppliers as and when required to avoid unnecessary blockage of funds in idle stock. 5. Proper training to be given to workers for increasing efficiency in production process. 6. The bin card system should be monitored to ensure the availability of right quantity materials at the right time. 7. Current ratio of the company is increasing and needs to maintain it that the liquidity position of the firm can be maintained. 8. In order to improve the brand awareness various activities like sponsorships etc. should be undertaken or should be continued. 9. A frequent audit should be made with the team by the management. 10.Special consideration should be given for employees who work in extra time.

CHAPTER 3 INDUSTRY AND COMPANY PROFILE

PLASTICS INDUSTRY
Plastic material display properties that are unique when compared to other materials and have contributed greatly to quality of our everyday life. Plastics properly applied, well perform functions at a cost that materials cannot match. Many natural plastics exist, such as shellac, rubber, cellulose, however it is mans ability to synthetically create a broad range of materials demonstrating various useful properties that have so enhanced our lives. Plastics are used in our clothing, housing, automobiles, aircraft, packaging, electronics, recreation items. Whether you are aware of it or not plastics play an important part in our life. Plastic versatility allows it to be used in everything from car parts to doll parts, from soft drink bottles to the refrigerators they are stored in. So how is it that plastic have become so widely used? How did plastic become the material of choice for so many varied applicators?

The simple answer is that plastics are the material that can provide the things consumers want and need.

History of Plastic
The United States plastics industry is a multi- billion dollar business, and it is still growing at a rate faster than most other industries in this country. Plastics have been used in every major market in the United States, including construction, packaging, automobiles and boats, electrical/electronics, pipe and fittings, and consumer goods, to mention just a few. Plastics are basic materials, on par with metals, glass, wood, and paper, and they are essential to the needs of virtually the entire spectrum of American business. As lifestyles change, plastics will become ever more valuable to tomorrows advanced new concepts in architecture, aerospace, communications, transportation even to medicine and the arts. Plastic materials trace their origin in this country back to 1868, when a young printer named John Wesley Hyatt came up with Celluloid, the first American plastic. He mixed pyroxylin, made from cotton (one of natures polymerics), and nitric acid, with camphor to create an entirely different and new product. Celluloid quickly moved into many markets, including the first photographic film used by George Eastman to produce the first motion picture film in 1882. The material is still in use today under its chemical name, cellulose nitrate.

A Starting Point for Plastics

Like any material, plastics have their origins in nature, in such basic chemical elements as carbon, oxygen, hydrogen, nitrogen, chlorine, or sulfur. These materials are extracted from natures storehouse of air, water, gas, oil, coal and even plants. From the basic sources come the feedstocks we call monomers (frommono, which means one, and mer, which means unit in this case, the specific chemical unit. ). The monomer is subjected to a chemical reaction known as polymerization, which

causes the small molecules to link together into longer molecules. Chemically, the polymerization turns the monomer into a polymer (many mers). Thus, a polymer may be defined as a high-molecular-weight compound which contains comparatively simple recurring units. A monomer can contribute to the manufacture of a variety of different polymers, each with its own distinctive characteristics. The way in which the monomers link together into polymers, and resulting structural arrangement, is one determinant of the properties of the plastic. The length of the molecules in the molecular chain (referred to as molecular weight) is a second determinant. And the type of monomer is a third determinant. Polymerizing two or more different monomers together (a process known as copolymerization) is a fourth determinant. Incorporating various chemicals or additives during or after polymerization is a fifth. In 1909, Dr. Lee Hendrik Baekeland introduced phenoformaldehyde plastics (orphenolics, as they are more popularly known), the first plastic to achieve worldwide acceptance. More importantly, Baekeland also evolved techniques for controlling and modifying the phenolformaldehyde reaction so that products could be formed under heat and pressure from the material. This characteristic of liquefying the material so that it can be formed into various shapes under heat and pressure is still common to most plastics.

Plastic Industry
Last two years have witnessed substantial rise in India and Americas strategic partnership. While the world suffers from the economic crisis, Indo-US trade has shown positive strides, said Mr. G K Pillai, Commerce Secretary, and Government of India. He was speaking at the first India USA Plastics Industry Summit 2009 organized today jointly by the Confederation of Indian Industry (CII) and Plastid Foundation. The summit is themed on strategic cooperation, market sharing and trade complementation. Plastid 2009, the 7 th International Plastics exhibitions and conference, taking place in New Delhi from 4-9 February 2009, has over 100 participants from USA. The ministry aims to increase per capita plastics consumption by the end of current plan period to 11 to 12 kg as against present figure of 5 kg. Half a trillion investment in infrastructure restates diverse scope of plastics industry she added.

PLASTICS ARE USED BECAUSE THEY ARE:

Attractive Hard and slippery Soft and rubbing Flexible Good insulators of heat or electricity Light weight Hygienic Non-rusting Easy to shape and color Cheap

Indian plastic industry sees scope for growth

If a product is made of plastics, theres a reason that chances are the reason has everything to do with helping you, the consumer, get what you want: health, safety performance, value, etc. Plastics help making things possible. Your consider the changes we have seen in the grocery store in the recent years. Modern packaging such as heat sealed plastics pouches and wraps help keep food fresh and free of contaminate tin. Plastic engineers are always working to do even more with less material. Doing more with less helps conserve resources in another way. It helps save energy. In fact plastics can play a significant role in energy conservation.

Companyprofile
HISTORYOFTHECOMPANY
M/s JAGADAMBA CONTAINERS
Established in 1996, a newly constituted partnership concern with two partners namely Lalit Kumar Agarwal and Nikhil Kumar. Both of them have business background i.e., family business. After completing their education, both of them decided to join together and set an industrial unit for the manufacture of Plastic Containers. Plastic containers have a very good potential in the future as the other containers such as tin containers and bottles are out dated and costlier. Plastic containers are now replaced the old conventional containers. Having decided to set up an industrial unit for the manufacture of Plastic containers, the promoters approached the District Industries Centre. The information officer attached to the District Industries Centre has advised the promoters to set up the unit in industrial development area so as to reduce project cost. Cuivic restriction in starting industrial unit in development area is much less, also the Officer advised them to approach Taluk Industries Officer, North Parur for further assistance of this matter. They then contacted the asst. District Industries Officer of Taluk Industries Office, Parur and discussed the matter in detail. The officer instructed to submit the production programme for the industrial project. Accordingly the production programme was submitted. After

careful scrutiny on the project proposal, the office approved the same and issued Provisional Registration for the Industrial unit. The provisional registration so issued is dated on 23-2-94. Packaging play a significant role in industrial as well as social growth. Packaging in Industry and transportation of packaged products has kept pace with the industrial growth of any country. Though basically India is an agricultural country, its emerging as an industrial gaint having many large scale units in various fields such as chemical, steel, textile, etc. in these circumstances, the importance of packaging industries cannot be left unnoticed. Though plastics centered the packaging scene only in late fifties, by virtue of versality it has made great roads and displaced the tradition packaging materials. The main advantage of Plastics over the conventional materials are: Light in weight Rensable quality Available in attractive colors Percentage of leaks and wastage are very less Can be made into any shape suitable to the situation and requirement.

PROMOTER:
The promoters of the unit i.e., partnership concern with two partners. Both partners are from business families. Hence both of them have business background. They are educated and capable to run the unit.

TECHNICAL KNOW HOW:

The production process is a known technology. They know how of production is available the machinery suppliers will demonstrate the production. Skilled operators will be appointed to operate the machine.

MARKET:
Major consumers of the product are: Chemicals manufacturing units

Chemicals and pharmaceutical dealers Re-packages General consumers Oil merchants Ayurvedic medicine manufacture

The requirements are huge hence there is market potential for the product.

RAW MATERIAL:
Raw materials required by this company for the production are: Plastic grannuals and Colors The annual requirement as per the production programme is: Plastic granules 9000kg Colours 1500kg

MAN POWER:
This company has 2 supervisors 10 skilled labors 8 semiskilled labors 1 office attendant 3 unskilled labors 1 accountant

MEANS OF FINANCE:
The promoter proposes to approach bank/KFC for availing term loans. The promoters expect a term loan of 8 lakhs is setting up the unit. The balance will be raised by the promoter concern. Margin money loan from D.I.C is available for the unit.

Though basically India is an agricultural country, it is emerging as an industrial giant country having many large scale industries in various fields such as chemical, steel, textile, etc. In these circumstances, the importance of packaging industry cannot be left unnoticed. The different functions of packaging can be as follows: Product protection Product preservation Convenience in distribution Guaranteeing product quality to consumer Explaining product specification Making easier the comparison of products of different manufactures Ensure minimum cost for packaging Make the packaging appealing to the customer

Same as all these packaging serves as the above purposes the plastic CANS produced also helps many other industries like chemical, oil, and many other industries to fill their products in these CANS and supply to its consumers, which facilitates easy supply of such liquid products avoiding wastage which may happen due to leakage in other containers. But these CANS produced has excellent features as the quality CANS produced by this company prevents leakage of any kind of liquid in it and also is resistible to any kind of reaction with the chemicals filled in it.

LOCATION AND LOCATIONAL ADVANTAGES:

The location proposed is in industrial development area, Edayar. Industrial Development Area belongs to Industrial department. The department have acquired the land long back and developed into industrial plot after providing infrastructural facilities such as internal road, electricity and water. Hence the entrepreneur intent to start industrial ventures need not spent much time for providing such facilities to the location. The promoters are exempted in getting permission from various departments in setting up the industrial unit in development area/plots. The parameters for getting local body license in setting up units in development area are much less compared to the setting up in other area. In selecting the site the following aspects have been considered. Cost of land

Facility for communication Availability of water Availability of skilled labor Availability of land for immediate utilization Provision for future expansion if necessary

The main advantage of this location is this being an industrial area the other companies located also demand for the product of this company to fill in their products. And being the state Kerala where tons of coconut oil is made, it needs some container to be supplied in. And this company takes the opportunity to supply these plastics CANS to those oil producing industries. The company has acquired its machinery from Delhi, the state where these CANS are produced on a large scale. It started its company with two machinery which required labor work also. In short it needed much effort. But now with the passage of time and with the advancement in technology, recently i.e., last year this company brought a new machine which is semi-automatic and accordingly requires less effort. It is capable of producing large number CANS in a large number meeting the demands of people without delay and above all promising quality output.

MISSION OF THE COMPANY:

Mission is a long term objective of the company which it aims to achieve. As all the company has a mission of its own. Likewise the Jagadamba Containers also has a mission. The mission of this company is to provide the quality goods to its customers and satisfy all customers. It also wants to set up an additional enterprise in the state to expand its business all over the state.

VISION OF THE COMPANY:

Vision is the short term objective of the company. This companys vision is to supply the CANS demanded by the customer on time. As there is a lot of work load and increasingly demand for its product CANS, the company has to take care that the CANS are supplied to the customer on the date of delivery of the product without any delay.

QUALITY POLICY:
Quality is our mission. The quality policy is our main tool in achieving it. The policy is clearly defined, comprehensive and highly formalized. Basic contents of the Quality Policy are: Utmost satisfaction of Clients expectation Innovative, cost and time effective services Consistent and continuous quality improvement Fulfillments of defined quality objective targets Develop the organization as an international centre for excellence Continuous evaluation of market to explore challenging areas of operation

The policy lays down the basic philosophy and translates it into practice, by defining formalized procedures to be completed in sequential steps. Simply stated the procedures comprise 4 elements. Task Definition Task Assignment QC/QA plan for each task element Documentation and feedback

The application begins with every bid preparation. We do not mind the efforts for the bids not won. For every bid we prepare, the first three steps are completed with care. We ensure that quality targets are set and achieved for every job that the client entrusts us with. Our quality control procedures are designed to sieve out gross human errors and nothing is left to chance. The quality policy has paid us the best dividends. It Jagadamba will continually improve its products and services to meet and exceed the requirement of its customers will and delivers them, on time, every time defect free. Quality policy is formulated and declared to provide direction and clarify about the policy of company with regard to quality of product and services. Quality policy is reviewed before declaration to ensure that the quality policy contains a statement or message to confirm to customer as well as statutory requirements and continually

improve the effectiveness of the system. Quality policy is displayed in all prominent places. Training in quality policy is provided to all employees. Its ensured that all employees have understood the quality policy. Quality policy is framed in such way that it will clearly indicate the principal purpose of the bsns and enables establishment of quality objectives.

QUALITY OBJECTIVES:
Quality objectives are targets to be achieved for the fulfillment of quality policy and are decided based on the key points in quality policy. Objectives to be achieved by each function with reference to the quality deployment are decided. This may include bsns aspects as well as product quality aspects. A quality deployment chart is prepared detailing the quality objectives. Achievement in targets is received during management review and corrective actions are planned when the target are not achieved. Our management systems quality policy is focused on eight principles and is the foundation of our management systems.

CUSTOMER FOCUS
Customers are the center of EnerSyss focus. They set the standards for performance, reliability, and service. Our customers define the quality we are expected to deliver.

LEADERSHIP
Our goal at EnerSys is to effectively interview and hire qualified candidates into our organization and then empower them to make measurable impacts on our companys performance. Our corporate culture also believes in identifying key employees and providing to them pathways for advancement through the use of succession planning. When we do look to the outside to help build our team, our extensive interview process allows us to identify a candidates key strengths, that enables us to properly position them within our company to best utilize their education, past experience, and critical thinking abilities. At EnerSys, Quality is the responsibility of every employee. Every employee must be involved, motivated, and knowledgeable for us to remain successful.

SYSTEM APPROACH TO MANAGEMENT

By acknowledging that our business is comprised of a group of interrelated processes, we shall identify, understand and ultimately manage them in a systematic manner that will improve our companys results and drive us to meet all our objectives.

INVOLVEMENT OF PEOPLE
Our associates are the experts in their relative areas, by relying on them to make data driven decisions, we not only empower our employees, but enable the corporation to benefit from their respective talents. Creating a work environment when associates are valued and contribute to the team is a vital factor to our success.

PROCESS APPROACH
EnerSys is committed to managing our business as process. With this knowledge, we can focus on each step and its interaction with those downstream of it, in other words utilize the input/output model. Taking this process approach enables us to ensure that nothing is overlooked and that there is seamless execution of all activities.

MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIP

We at EnerSys strongly believe that our suppliers are the experts in their respective fields and therefore, are best qualified to identify areas for improvement. Our close working relationships with our suppliers are crucial to the long-term success of our organization. When evaluating potential suppliers, we not only look at the quality of the products or service provided in terms of First Pass Yield and On-Time Delivery, we extend the evaluation to include competitive position, price, value analysis, technical competence and support, lead times, and customer focus. By involving our suppliers at all stages of and setting clear expectations for quality, cost and delivery, we can work to provide setting.

FACTUAL APPROACH TO DECISION MAKING

Data is the basis for any decision made within EnerSys, period. Without considering critical information we cannot ensure effectives choices will be made to achieve the organizations objectives.

CONTINUAL IMPROVEMENT
In order for any company to succeed in todays competitive marketplace, they must continue to look for areas of improvement. Through comprehensive audits (internal, external, customer and supplier) we continually strive to identify areas when improvement may be needed. Our documented corrective and preventive action system have proven to be an effective tool in driving continuous improvement throughout all areas of EnerSys. To strive for the up gradation of the technology to meet customer requirements. To provide state of art data communication services as per acceptable determined standards. To upgrade the technology knowledge of all Jagadamba personal through continuous improvement training. To provide comprehensive service in a time bound manner. Achieving customer satisfaction through the combined efforts of planning the infrastructure and executing the projects through dedicated work force.

MAJORFUNCTIONS of this company:

The major functions of this company is to produce the quality CANS or quality plastic containers and supply to the needful all over the state. There is great demand for this plastic CANS as mention its uses and the advantages of using these containers in the previous pages. As because of this their demand is increasing. This company produces the CANS is nos. according to the quantity demanded by its customers including various other industries who use this CANS for filling various liquids.

MAJORCUSTOMERSANDCLIENTS

of this company:

Customers are spread all over the state and in recent years it has been able to increase the number of customers, at this company processes a very good image and good will and also as the company aims only at producing Quality CANS.

Major Customers:
Malikkal chemicals Southern antipents Aishwaraya enterprise Agro chemicals limited Malikkal Industries enterprise Chetanaya chemicals Soorya agencies Royal traders Mahadeva Industries and many more. As seen from the major customers mostly sold CANS are most of the chemical.

MOTTO OF THE COMPANY: ` Production and supply of quality goods only

Parts of the product:
Product is a CAN with an air tight cap to cover the mouth which prevents the leakage of any chemicals from out of it. The CANS produced are of different kinds 1ltr, 10ltr cans and a various different sizes. They are of different colors too. The colors are given to the CAN according to the instructions given to the company and their customer. Mostly produced CANS are white and yellow in color, with covering caps on it.

DEPARTMENTS
Various departments are combined for the production. The department in Jagadamba co. is all interlinked according to the process that take place in the company. These are planning and purchase department under which the estimate of the raw materials required is validated and purchase order for the inward stocked is furnished thereafter. This department also keeps records of the stock level, the reorder level of the inventory

etc. Next is the manufacture department where the various materials required to manufacture a CAN is assembled and the CANS are actually produced under this department according to the standards preset and requirement of the clients and customers. The Quality Assurance (QA) department follows, this department makes sure that the quality standards are met and the quality is properly assured. Quality is the main aspect which JAGADAMBA CO. focuses at. Its then marketing department which makes sure that the CANS which are quality assured are marketed as per the demand requirement and according to the pre subtime schedule.

RESOURCE PLANNING DEPARTMENT:

The HR department takes charge of the manpower planning and people sourcing as per the needs of the co. Along with these functions payroll management, grievance management, training and development functions are also carried out. Thus the company provides all the facilities and technologies to its employees who ensure quality production of goods and their best service.

TYPES OF PLANNING DONE BY THE COMPANY

Planning is the main duty of all company before executing any job. The type of planning Jagadamba Co. does is as follows.

PRODUCTION PLANNING
For every commodity there is demand according to the supply is made. Commodity is supplied in the market. Production plan and marketing planning are done for the commodity supplied in the markets. The requirement regarding the product manufacturing are specified in the specification sheets provided by the customer is given to the planning department, procedure, process sheets, work instructors and check list are developed specifying the activities and parameter to be verified during the different phases of production for each product.

MATERIAL PLANNING
The production ordered and stocked in store for 3 months before itself. Requirements of raw materials, components any other services is determined and purchased from

approved suppliers and the qualities of incoming materials are verified in the planning department. The necessary inspection and listing as well as validation requirement are identified and the criteria for product acceptance are developed. This company purchases raw materials from Reliance ltd Company which always provides the quality granules certified by ISO.

PRODUCTION PLANNING
According to the purchase order from customer planning is done for time schedule, operation, material needed, work force, quantity per day etc. Planning process covers usually a period of 3 months. Open order status is prepared and issued to manufacture and stores. Production programs provides details of purchase order, production order reference no., product type- (size and color of CANS), proposed delivery. Any change in accepted orders is informed to all concerned workers.

PURCHASE PLANNING
It comprise of local orders. If cost of commodity is below RS 1000 direct cash payment is made. It is above RS 1000 through other means.

MARKETING PLANNING
According to the customer demand in the market proper planning is done for the timely supply.

Customer clearance:
If the customer has any complaints for the CANS supplied to them they are considered and taken better care of not happening the same in near future. Usually the complaints which this company bears in just that demand is not being met on time which the company has decided to deal with, may be employing more labours. No company can do without planning. All the company has to plan its things before doing any actions for best results. The company does all the planning mentioned above. It has various departments in the company. When things are planned it becomes easy for the manager to align responsibilities to its worker and easy to the workers to execute the work as the work will be well understood by them. Planning such as material planning helps in avoiding wastage of resources. Planning the work also together with saving resources it helps in saving time of the Co.

QUALITYASSURANCE
The company is that which controls the quality of outcoming products. The manufacturing of the CAN has two parts. One being the CAN and the second its cap. Manufacturing of any products can be done only with those parts which are approved by QA also. Any product can be marketed only after QA certification. The inspection is done by various testing methods like filling the CANS with variety of liquids and chemicals and finding out whether there is any leakage and also that it does not react with any chemicals filled with.

QUALITYCERTIFICATION
In 2000 ISO 9002 certification was given to JAGADAMBA CONTAINERS on July 10 KPMG for manufacturing and marketing plastic CANS.

3.1 CONCLUSION
Finally it can be concluded that on whole the inventory position in matts corner India pvt ltd is improving over the years. But still it has to concentrate on the reduction of raw material holding period and inventory conversion period which is the main cause of blockage of funds. So apart from this the inventory control techniques and procedures followed are satisfactory. A period of one month is taken for the study. For the particular study a simply survey was conducted at an initial stage. After analyzing the data the study has further shown the significance of media advertisements as a factor influencing upon the customer buying decisions. The study has brought out that any few improvement

steps on the part of management can bring a lot of benefits to the product in the coming future, since the target market for the product is quite high.

3.2 ANNEXURES
Over the years, Matts corner realized that people are as different as they are similar. Different needs, different lives. With the depth of knowledge Matts corner, today, is poised to fulfill the hopes and aspirations of people across the length and breadth of the economy.

BIBLIOGRAPHY
1. Kothari. C.R. , Research Methodology Methods and Techniques, WishwaPrakashan, 2e, 2002

2. Khan.M.Y & Jain.P.K, Financial Management, Tata McGraw Hill, 4e, 2004.

3. K.Aswathappa & K.Sridhar Bhatt, Production and Operations Management, 9th Edition,2007

WEBSITES
1. 2. 3. 4. www.mattscorner.net www.mattscorne.in www.google.com www.wikipedia.com

WEEKLYREPORT
First week I got permission to do a project in Matts Corner India pvt ltd. Later I informed the research topic, and went through overview of the company. I referred the research methodology books for reference. This week I collected secondary data related to inventory analysis. Collected company balance sheet and P&L a/c (for 3 years). This week I started analyzing data using financial tools such as tables graphs and chart of the analyzed data and interpreting the data, with the help of tables and chart. I approached my guide for his opinion and guidance for drawing conclusion. I took the soft copy and showed it to the external guide.

Second week Third week

Fourth week

Fifth week

Sixth week