Professional Documents
Culture Documents
Finance is treated as life blood of an enterprise. Finance is required to start a business, to purchase raw materials, to pay bills, any wages and for every activity of a business enterprise. The term finance was interrupted to mean the procurement of funds by corporate enterprises to meet the financing needs. The term procurements were used in a bread sense include the whole gamut of raising the funds externally.
Meaning of finance
Finance is one of the major elements, which activates the overall growth of the economy. Finance is the lifeblood of economic activity. A well-knit financial system directly contributes to the growth of the economy. An efficient financial system calls for the effective performance of financial institutions, financial instruments and financial markets.
Importance of finance: Ensure that there are adequate funds available to acquire the resources needed to help the organization to achieve its objectives. Ensure costs are controlled. Ensure adequate cash flow Establish and control profitability levels. One of the major roles of the finance
department is to identify appropriate financial information prior to communicating this information to managers and decision makers in order that they may make informed judgments and decisions. Finance also prepares financial documents and final accounts for managers to use and for reporting purposes (AGM etc.)
Meaning of management
In the present day industrial world, management has become universal. The principles of management are being applied not only for managing business concerns, but also to manage various other service sector institutions like hospitals, educational institutions, etc. It is in this context both finance and management functions gained substantial significance in the industry.
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Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation
By Joseph and Massie
Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals
By Weston and Brigham
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INVENTORY MANAGEMENT
PART -A
INTRODUCTION TO INDUSTRY INDUSTRY PROFILE
Soap is one of the commodities which have become an indispensable part of the life of modern world. Since it is non durable consumer goods, there is a large market for it. The whole soap industry is experiencing changes due to innumerable reasons such as government relations environment and energy problems increase in cost of raw material etc. The changing technology and ever existing desire by the individual and the organization to produce a better product at a more economical rate has also acted as catalyst for the dynamic process of change. More and more soap manufactures are trying to capture a commanding market share by introducing new products. The soap industry in India faces a cut throat competition with multinational companies dominate the market. They are also facing severe threat from dynamic and enterprising new entrance especially during 1991-92. If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when roasted meat over flowed on the glow in ashes. This lump like product was soap & had foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made & marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent for making soap was taken in London. The world consumption of soap in 1884A.D. was said to be 2lakh tonnes p.a.
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1. 2.
INVENTORY MANAGEMENT
3. 4. Increase in urbanization. Growth in degree of personal hygiene. Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes under organized sector.
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INVENTORY MANAGEMENT
PART-B
Introduction to inventory
In financial parlance, inventory is defined as the sum of the value of raw materials, fuels and lubricants, spare parts, maintenance consumables, semi-processed materials and finished goods stock at any given point of time. The operational definition of inventory would be: the amount of raw materials, fuel and lubricants, spare parts and semi-processed materials to be stocked for the smooth running of the plant. Since these resources are idle when kept in stores, inventory is defined as an idle resource of any kind having an economic value. Inventories are maintained basically for the operational smoothness, which they can affect by uncoupling successive stages of production, where as the monetary value of inventory serves as a guide to indicate the size of the investment made to achieve this operational convenience. The materials management department is expected to provide this operational convenience with a minimum possible investment in inventories. The objectives of inventory, operational and financial, needless to say, are conflicting. The materials department is accused of both stock outs as well as large investment in inventories. The solution lies in exercising a selective inventory control and application of inventory control techniques.
Defining Inventory
Inventory is an idle stock of physical goods that contain economic value, and are held in various forms by an organization in its custody awaiting packing, processing, transformation, use or sale in a future point of time. Any organization which is into production, trading, sale and service of a product will necessarily hold stock of various physical resources to aid in future consumption and sale. While inventory is a necessary evil of any such business, it may be noted that the organizations hold inventories
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INVENTORY MANAGEMENT
for various reasons, which include speculative purposes, functional purposes, physical necessities etc. From the above definition the following points stand out with reference to inventory: All organizations engaged in production or sale of products hold inventory in one form or other. Inventory can be in complete state or incomplete state. Inventory is held to facilitate future consumption, sale or further
processing/value addition. All inventoried resources have economic value and can be considered as assets of the organization .
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INVENTORY MANAGEMENT
Besides Raw materials and finished goods, organizations also hold inventories of spare parts to service the products. Defective products, defective parts and scrap also forms a part of inventory as long as these items are inventoried in the books of the company and have economic value.
Maintenance Items/Consumables Packing Materials Local purchased Items required for production
Goods
in
and Finished Goods with Stockiest and Dealers Spare Parts Stocks & Bought Out items Defectives, Rejects and Sales Returns Repaired Parts Stock and &
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INVENTORY MANAGEMENT
Independent Demand
An inventory of an item is said to be falling into the category of independent demand when the demand for such an item is not dependent upon the demand for another item. Finished goods Items, which are ordered by External Customers or manufactured for stock and sale, are called independent demand items. Independent demands for inventories are based on confirmed Customer orders, forecasts, estimates and past historical data.
Dependant Demand
If the demand for inventory of an item is dependent upon another item, such demands are categorized as dependant demand. Raw materials and component inventories are dependent upon the demand for Finished Goods and hence can be called as Dependant demand inventories. Take the example of a Car. The car as finished goods is an held produced and held in inventory as independent demand item, while the raw materials and components used in the manufacture of the Finished Goods - Car derives its demand from the demand for the Car and hence is characterized as dependant demand inventory.
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sales orders (2) The precautionary motive which necessitates the holding of inventories for meeting the
unpredictable changes in demand land supplies of material (3) The speculative motive which includes keeping inventories for taking advantage of price
Inventory management
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 company's strategic plan. The many change in market demand, new
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INVENTORY MANAGEMENT
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 for accomplishes 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 operations 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 a successful program of inventory management and inventory control.
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obsolescence. Investment for inventory cannot be used to obtain other goods or assets that could Funds supporting inventory investment must be borrowed, increasing the firms interest
expense. A second form of risk is the possibility that the product will be pilfered or become obsolete. These factors and the relative magnitude of assets that are inventory-related contribute substantially to the riskiness of most enterprises. It is important to understand that the nature and extent of risk vary depending on an enterprises position in the distribution channel.
Importance of inventory management:Inventory management refers to the process of managing the stocks of finished products, semifinished products and raw materials by a firm. Inventory management, if done properly, can bring down costs and increase and increase the revenue of a firm. How much one should invest in inventory management? The answer to this question depends on the volume and value of inventory as a percentage of the total assets of a firm. The importance of inventory management varies according to industries. For example, an automobile dealer has very high inventories, sometimes as high as 50 percent of the total assets, whereas in the hotel industry it may be as low as 2to 5 percent. The process of inventory management is a continuous one and there are various kinds of solutions available. It is advisable to employ specialized staff for inventory management. The inventory management process begins as soon as one has started production and ordered raw materials, semi-finished products or any other thing from a supplier. If you are a retailer, then this process begins as soon you placed your first order with the wholesaler.
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INVENTORY MANAGEMENT
Once orders have been placed, there is generally a short period of time available to a firm to put an inventory management plan in place before the supplies are delivered. Inventory management helps a firm to decide in advance where these supplies should be stored. If a firm is getting supplies of small-sized goods, it may not be much of a problem to store them, but in the case of large goods, one has to be careful so that the warehousing space is optimally utilized. From invoices to purchase orders, there is lot of paperwork and documentation involved in inventory management. Several software programs are available in market, which help in inventory management. Inventory management provides detailed information on inventory management, inventory management software, supply chain inventory management, inventory management system and more. Inventory management is affiliated with E-procurement services.
INVENTORY MANAGEMENT
(5) (6) (7) (8) (9) (10) (11) To take advantage of distribution costs To keep storage equipment operational To minimize cost and maximize profits To avoid running out of stocks To keep the inventory within the available storage capacity To control capital investment To maximize sales and share of market
departments dealing in materials (2) There should be new central purchasing departments under the control of the competent
and expert purchases management (3) (4) (5) (6) (7) (8) There should be proper classification and codification of materials. Materials requirement should be properly planned Perpetual inventory system should be operated Adequate records should be introduced to control materials The storage of all materials should be well planned Purchases of materials should be controlled through budgets
INVENTORY MANAGEMENT
The techniques most commonly used are the following:1. Always better control (ABC) analysis
ABC analysis underlines a very important principle Vital few: trivial many. Statistics rev eal that just a handful of items account for bulk of the annual expenditure on materials. These few items, called An items, therefore, hold the key to business. The other items, known as B and C items, are numerous in number but their contribution is less significant. ABC analysis thus tends to segregate all items into three categories: A, B, and C on the basis of their annual usage. The categorization so made enables one to pay the right amount of attention as merited by attention as merited by the items.
2.
HML analysis is similar to ABC analysis except for the difference that instead of usage value, price criterion is used. The items under this analysis are classified into three groups that are called high, medium and low. To classify, the items are listed in the descending order of their unit price.
3.
V stand for vital, E for essential, D for desirable. This classification is usually applied for spare parts to be stocked for maintenance of machines and equipments based on the criticality of the spare parts. The stocking policy is based on the criticality of the items. The vital spare parts are known as capital or insurance spares. The inventory policy is to keep at least one number of the vital spare part irrespective of the long lead-time required for procurement. Essential spare parts are those whose non-availability may not adversely affect production. Such spare parts may be available from many sources within the country and the procurement lead time many not be long. Hence, a low inventory of essential spare parts is held. The desirable spare parts are those, which, if not available, can be manufactured by the maintenance department or may be procured from local suppliers and hence no stock is held usually.
4.
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Longer lead time Geographical location of suppliers, and Reliability of suppliers, etc SDE analysis classifies the items into three groups called scarce, difficult and easy. The information so developed is then used to decide purchasing strategies.
5.
FSN stand for fast moving, slow moving and non-moving. Here classification is based on the pattern of issues from stores and is useful in controlling obsolescence. To carry out FSN analysis the date of receipt or the last date of issue, whichever is later, is taken to determine the number of months which have lapsed since the last transaction. The items are usually grouped in periods of 12 months. FSN analysis is helpful in identifying active items which need to be reviewed regularly and surplus items which have to be examined further. Non-moving items may be examined further and their disposal can be considered.
6.
S-OS analysis is based on the nature of supplies wherein S stands for seasonal items and OS stands for the off-seasonal items. This classification of items is done with the objective of determining proper procurement strategies. Agri based industries need to design their procurement policies in such a way that they procure their raw material during the harvesting season so that they get the best quality in the reasonable price. They need to have proper storing facilities in order to pressure the items till such time they are consumed.
7.
XYZ analysis is based on the closing inventory vale of different items. Items whose inventory values are high are classified as X items while those with low investment in them are termed as Z items. Other items are the Y items whose inventory value is neither too high nor too low. Read made garments industry can effectively use this analysis to determine their investments in finished goods inventory.
8.
GOLF analysis is used to identify the stock interms of government supplies, ordinary supplies, local supplies and foreign supplies. This analysis can be effectively used by industries in designing their procurement strategies.
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INVENTORY MANAGEMENT
9.
Economic order quantity refers to that level of inventory at which the total cost of inventory is minimum. The total inventory cost comprising ordering and carrying costs. Shortage costs are excluded in adding total cost of inventory due to the difficulty in computation of shortage cost.EOQ also known as Economic Lot Size (ELS). EOQ FORMUL
Where A = Annual usage, O =Ordering cost per order, CC= Carrying cost per unit and CC= price per unit Carrying cost per unit in percentage.
11.
It is mainly adapted to control o group inventories. In the two-bin system, stock of each item is separated into two bins. One bin contains stock to last till the date of placing a new order. The
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INVENTORY MANAGEMENT
other bin contains a certain quantity of stock that will be sufficient to satisfy probable demand during the period of replenishment stock first issued from the 1st bin. When the 1st bin is empty, an order of replenishment is made and the stock in the 2nd bin is utilized until the order material is received.
12.
MRP is a new solution to an old problem: having stock of materials always on hand when needed without carrying excess inventory. Highly dependent upon computer technology, MRP is most helpful to firms with finished goods or end products which are made from a number of components and which are also subject to uneven or lumpy demand. The technique separates the various components and co-ordinates purchasing and delivery with production. This result in materials arriving exactly when needed for production and, at the same time, reduces the length of time materials are held in stock. MRP plans and controls goods on order and generates data for determining when and what specific materials will be needed to meet previously planned production schedule.
13.
Just-in-time (JIT)
Just in time is highly discussed in materials management circles these days. The concept is alternatively known as ZIPS (Zero inventory production system), MAN (Materials as needed), NOT (Nick of time), or ZIN (Zero inventories). As a concept, JIT means that virtually no inventories are held at any stage of production and that exact number of units is brought to each successive stages of production at the right time.
Objectives of inventories
Inventory is as old as man. The primitive man's inventory consisted of a few tools; as a shepherd, man had to tend his flocks and herds; later, he had his granaries and warehouses; today, with industrialization, his inventories cover a very wide range. As man has progressed and his needs and activities have multiplied, the range of inventory has become larger and more diversified. As of today inventories include, among others, raw materials, part finished goods, finished goods and operating supplies. Each of these serves specific purposes. The following are the objectives of inventory management:Page 18
INVENTORY MANAGEMENT
1. 2. 3. 4. To facilitate smooth operation of the manufacturing process. To minimize investment in inventory. To reduce material handling costs. Reasonable utilization of people.
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INVENTORY MANAGEMENT
Research design
Research means a search of facts, answers to questions and solutions to problems. It is a purposive investigation; it is an organized inquiry. It seeks to find explanations to unexplained phenomenon to clarify the doubtful facts and to correct the misconceived facts. Research design stands for collecting the relevant data and techniques to be used in their analysis keeping in view the objectives of the research and the availability of staff, time and money. Research study in fact, has a great bearing on the reliability of the results aimed at and such constitutes the firm foundation of the entire research. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible, yielding maximum information with minimum expenditure of effort, time and money. The type of research undertaken is PURE RESEARCH i.e., it is done for the sake of knowledge without any intention to apply it in practice. It is a basic or fundamental research. This research is not problem oriented.
RESEARCH METHODOLOGY
INVENTORY MANAGEMENT
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Limitations of the study
Study restricted to three years of inventory requirements. The overall performance of inventory is analyzed not the particular model. Limited tools were used to analyze the inventory transactions. The collection of data for the analysis is restricted to KS&DL only at Bangalore. Time was major limiting factor to study.
METHODOLOGY OF THE STUDY:Mainly data is obtained from the annual reports of the company, and websites. Further data is collected through interviews with the personnel and concerned staff of Karnataka soaps & Detergent limited, Bangalore. A questionnaire is also appended.
RESEARCH INSTRUMENTS:
The study period covered in this case study is 3 financial years i.e., from , 2007-2008, 2008-2009,2009-2010,2010-2011
INVENTORY MANAGEMENT
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INVENTORY MANAGEMENT
RENAMING OF COMPANY
On Oct 1st 1980, the Government Soap Factory was renamed as KARNATAKA SOAPS AND DETERGENTS LIMITED. The company was registered as a Public Limited company. Today the company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder. KS&DL has been built up with rich tradition for the quality of its products. Mysore Sandal Soap is the No: 1 anywhere in the world. The Karnataka state is the original
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INVENTORY MANAGEMENT
home of the Sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soaps. It is also known as the FRAGRANT AMBASSADOR OF INDIA.
SLOGAN
KS & DL has a long tradition of maintaining the highest quality standard, right from the selection of raw materials to processing and packing of the end product. The reasons why its products are much in demand globally and are exported regularly to UAE, Beharen, SaudiArabia, Kuwait, Qatar, South America. The entire toilet soaps of KS & DL are made from raw materials of vegetable origin and are totally free from animal fats.
POLICY OF KS&DL
i.Seek purchase of goods and services from environment responsible suppliers. ii. Communicate its environment policy and best practices to all its employees implications. iii. Set targets and monitor progress through internal and external audits.
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INVENTORY MANAGEMENT
iv. Strive to design and develop products, which have friendly environmental impact during manufacturing. v. Reuse and recycle materials wherever possible and minimize energy consumption and waste.
OBJECTIVES OF KS&DL:
I. To serve the National economy. II. To attain self-reliance. III. To promote purity & quality products IV. To maintain the Brand loyalty of its customers. V. To build upon the reputation of Mysore sandal soap based on pure sandal oil. VI. To promote and uphold its image as symbol of traditional products VII. To maintain the brand loyalty of its customer. VIII. To supply the products mentioned above at most reasonable and competitive price.
Received license from Government to manufacture 1500 to soap and 75 tons of glycerin per year.
1957 1974
Factory shifted its operation to Rajajinagar Industrial Area. Mysore sales international limited was appointed as the sole selling agent, for marketing its products
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INVENTORY MANAGEMENT
1975 Rs.4 Crores synthetic detergent plant was installed based on Italian technology by Ballestra SPA. 1980 On 1st October 1980, the Government Soap Factory was converted into a public sector enterprise and renamed as Karnataka Soaps & Detergents Limited. 1981 1984 1985 Production capacity increased Rs. 5 Crores Fatty Acid Plant was installed
Manufacturing of premium quality of Agarbathies at Mysore Division Production capacity was raised to 26000 M.Tons Per Annum. A large variety of toilet soaps at attractive shapes, colors and fragrances introduced to meet the varieties & tastes consumers
1992
The company was registered with the Board for Industries and Financial Reconstruction(BIFR), New Delhi in December for rehabilitation, as the company suffered losses continuously since 1980 as it net worth fully eroded
1996
The BIFR approved the rehabilitation scheme in September & the Company stated making Profits.
1999
2000 2003
ISO-14001 certificate pertaining to environmental management system The entire carried forward loss of Rs. 98 Crores wiped out and in May BIFR, declared the company to be out of its Purview. The Company is making profit continuously: It is only State Public Sector unit that has come out of BIFR.
2004
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INVENTORY MANAGEMENT
2005 Launched new herbal care soap of 100 gms contains 19 herbs & leaves
Mysore Sandal soap Mysore Sandalwood Oil 2006 2007 2008 Award for the outstanding export performance of Cosmetics & Toiletries ICWAI National award national for excellence KSDL prime products, Mysore Sandal Wood Soap and Oil are accredited
with Geographical Indications as the Intellectual property of India as per the Geographical Indication of goods Act 1999. The ISO-9001 was upgraded to ISO-9001-2008 Quality accreditations & ISO 14001 2004, EMS accreditation 2009 KSDL upgraded the ISO 9001-2008 policy for Quality Management System and ISO-14001-2004 Environmental Management System 2010 Won Karnataka Chief company Ministry Ratna Award for profited government
2012
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INVENTORY MANAGEMENT
KS&DL AT GLANCE
Incorporated Name Address Karnataka Soaps and Detergents Limited Karnataka Soaps & Detergents Limited Bangalore Pune Highway Post Box No. 5531, Rajajinagar, Bangalore-560055 PH: 0803377691/ 3370469/23371103 to 06/ 22376922to24 Email: Mysoresandal@vsnl.com Website: www.mysorsandal.com Year Of Establishment Constitution Management 1918 Wholly owned by Govt. of Karnataka Undertaking Govt. Of Karnataka nominates/ appoints Board of Directors Chairman & MD Renamed Trademark 1980 The trademark is Sharabha. It is the Body is the head of an elephant means blending the intelligence of lion with strength of an elephant Production range Toilet soaps, bar soaps, detergents cakes, powders, agarbhathies, cosmetics, baby products, Sandalwood Oil Process know how The facility is a pioneer in the Manufactures of various soaps and technology imported from Italy.
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INVENTORY MANAGEMENT
Capacity of the Unit Licensed capacity is 26000 metric tons of Soaps & 10000 metric tons of detergents per annum Plants At Bangalore: Soap Plant, Detergent Plant, Fatty Acid Plant At Mysore : Sandalwood Oil, Agarbathies At Shimago: Duty Paid Godown Bankers 1. 2. 3. 4. 5. Co operation Bank, Bangalore State Bank of Mysore, Bangalore Syndicate Bank, Bangalore Canara Bank, Bangalore Vijaya Bank, Bangalore
VISSION:
I. Keeping pace with globalization, global trends & the States policy for using technology in every aspect of governance. II. Ensuring global presence of Mysore Sandal products while leveraging its
unique strengths to take advantage of the current Tech scenario by intelligent & selective diversification.
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III. Secure all assistance & prime status from Government India all Tech alliances. Further, ensure Karnatakas pre-eminent status as a proponent & provider of Tech services to the world, nation, & private sectors.
MISSION:
I. To serve the National economy. II. To attain self-reliance. III. To promote purity & quality products IV. To maintain the Brand loyalty of its customers. V. To build upon the reputation of Mysore sandal soap based on pure sandal oil.
OBJECTIVES OF KS&DL:
I. To serve the National economy. II. To attain self-reliance. III. To promote purity & quality products IV. To maintain the Brand loyalty of its customers. V. To build upon the reputation of Mysore sandal soap based on pure sandal oil. VI. To promote and uphold its image as symbol of traditional products VII.To maintain the brand loyalty of its customer. VIII.To supply the products mentioned above at most reasonable and competitive price.
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VII. Will make available a copy of environment policy, under environment Management system
on a written request to its manager (Environment & Policy)
AN ISO-9002 COMPANY
KS & DL with a tradition of excellence of over eight decades is committed to customer delight, through total quality management and continuous improvement through the involvement of all employees. KS&DL has got ISO 9002 certificate. To improve the quality management system and to facilitate TQM in the process of soap and detergent, the management took decision to obtain ISO-9002 by end of March 1999. Accordingly action plan was drawn and a committee was set up for the purpose during October 1998 with a mission statement. The company gives initial training including conducting employees awareness programme, document quality manual and quality system procurement. In this direction company obtained the guidance from Consultancies, Bangalore and Bureau of Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002 by the end of March to the Bureau of Indian Standards. Obtained the certificate by the end of March 1999 itself.
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INVENTORY MANAGEMENT
This is to project in the national and international market and also to improve quality of products offered to the consumers with the assurance of quality in the message. The Company got itself upgraded to ISO-9001-2004, Quality Systems in the year 2004-05.
ISO-14001
The company is located in the heart of the Bangalore city. The management of the company took a decision to get the ISO-14001 and become model to other public sector for the techniques used and also to other Government units to spread the message of maintenance of environment. ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and it will help the company to improve the profits, year after Year on long-term basis. The environment management system adopted in the company through this motive as follows: I. Conservation of energy II. Conservation of Surrounding III. Conservation of resources. Equipped with latest technology and backed by full-fledged quality control and R&D support, KS&DL is marching confidentially ahead in the new millennium. The Company is developing new products to meet the changing preferences of its customers.
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INVENTORY MANAGEMENT
WORK FLOW MODEL
SILOS (Silos are closed chambers) Soaps Noodles
Container Mixer
Simplex plodder
It becomes NOODLES
Milling
Duplex plodder
Cutting Machine
Stamping machine
Wrapping machine
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ACHIEVEMENTS / AWARD:
1. Government of Karnataka Dept of Industries and commerce State Export Promotion Advisory Board. EXPORT AWARD 1974-75 2. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81 3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2000
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for religious purpose. 4. Introduction of new higher powered detergent powder for institutional sales in bulk packaging. 5. To attain market leadership. 6. Introduction of new trade schemes to increase sales. 7. Aggressive advertisement and publicity as part of sales promotion. 8. Reduction in distribution expenses. 9. Cost-reduction in all areas. 10. Instant decision making in certain procurement activities. 11. Timely introduction and implementation of market driven decisions. 12. Ensuring effective internal control.4 in the year 2000
OWNERSHIP PATTERN:
Wholly owned by Government of Karnataka.
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STRENGTHS
1. 2. 3. 4. 5. Only soap in India that contains pure sandal & almond oil. Certified by ISO Worlds largest production of sandal wood oil. Brand name from decades in soap market. It has very good dealership network in south which ensures that the products reach every
customer.
6.
WEAKNESSES
1. 2. 3. 4. 5. Distribution network weak in north and east. Absence of television advertisement Neglecting freshness aspect. High oriented cost due to excessive labour force. Low turnover resulting in low profit.
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THREATS
Other competitors products such as rexona, moti santoor etc. there is a need for renovation of plant and machinery. Government policy may reduce growth potential. Other sandal soaps in the market. Entry of new multinationals in soap business. SYSTEMS:
A. Accounting System:
Financial statements are prepared under the historical cost convention on an accrual basis and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.
D. Remuneration System:
1. 2. Time rate system is followed to employees. Government fixes the remuneration to executives.
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INVENTORY MANAGEMENT
Future prospects
1. Put up new plant & machinery with latest technology to improve the quality & also to reduce the cost of production. 2. The competition in the FMCG sector is raising day by day & almost all competitors are
offering heavy consumer offers to capture market share, incentives & trade schemes to the traders & consumers. 3. Non supply of sandal wood by the Karnataka state forest department has necessitated
sourcing sandal wood from public auction at very exorbitant rates. 4. Due to the non availability of sandal wood & also the exorbitant cost of sandal wood, the
company is developing on promotion of popular soaps. 5. During the current year, the company launches wave talcum powder with cologne
perfume, liquid soaps, herbal anti septic hand wash, to increase its sales column substantially in the days ahead.
It has abundant of function which can be enumerated as follows: Effective funds management which is inverted in beneficial projects. Decision making regarding fixing of cash account. Obtaining trade credit. Profit Maximization. Wealth Maximization. Preparation of cash budgets.
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Systematic approach to working capital management. Pricing of raw materials & valuation of stores. To protect financial interest of the company
AUDIT DEPARTMENT:
KSDL audit wing is headed by internal auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes. After the Auditors monitor everything they give report which is helpful to the company.
COSTING:
When a company does costing it ensures proper fixation of selling price of the product, cost control it also help in taking decision. KSDL use process costing as the production
PRODUCT PROFILE:
KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps, Detergents, Agarbathies and Sandalwood oil.
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PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP PRODUCTS MANUFACTURED BY KSDL TOILET SOAPS nn NAME OF THE PRODUCTE PRODUCT MYSORE SANDAL SOAP MYSORE SANDALCLASSIC SOAP MYSORE SANDAL GOLD SOAP MYSORE SANDAL BABY SOAP MYSORE SPECIAL SANDAL SOAP MYSORE ROSE SOAP MYSORE SANDAL HERBAL CARE SOAP MYSORE JASMINE SOAP WAVE SOAP MYSORE LAVENDER SOAP MYSORE SANDAL BATH TABLET MYSORE SANDALCLASSIC BATH TABLET MYSORE JASMINE BATH TABLET MYSORE SPECIAL SANDAL TABLET MYSORE SANDAL ROSE TABLET MYSORE SANDAL GUEST TABLET UNITS OF GRAMS 75, 125 75 75, 125 75 75 100 100, 125 100 100 150 150 150 150 150 150 75
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DETERGENTS NAME OF THE PRODUCT MYSORE DETERGENT POWDER MYSORE DETERGENT POWDER MYSORE DETERGENT CAKE MYSORE DETERGENT CAKE UNITS IN GRAMS 1000 500 125 250
TALCUM POWDERS NAME OF THE PRODUCT MYSORE SANDAL TALC MYSORE SANDAL BABY TALC UNITS IN GRAMS 20, 50, 100, 300 100, 200, 400
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INVENTORY MANAGEMENT
AGARBATHIES
NAME OF THE PRODUCT Mysore Sandal Premium Mysore Sandal Regular Mysore Rose Nagachampa Suprabhatha Mysore Jasmine Parijata Sir M.V.100 Bodhisattva Venkateshwara Durga Ayyappa Alif Laila Meditation
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Advantages of ABC
This approach helps the material manager to exercise selective control and focus his By concentrative on A class items the material manager is able to control inventories attention only on few items.
and show visible results in a short spare of time. It reduces the clerical cost and resulted in better planning and improved inventory.
Disadvantages of ABC
As ABC analysis is based on grades of different items, this gradation may include a lot of subjective elements. The result of ABC analysis should be received and updated which is not easy.
KARNATAKA SOAPS AND DETERGENTS LTD FOLLOWS THE ABC ANALYSIS TECHNIQUE OF INVENTORY MANAGEMENT
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INVENTORY MANAGEMENT ABC Analysis (Always Better Control) segregated on the basis of value in Rs.
A Class Items B Class Items C Class Items
Consumption worth Rs. Consumption worth Rs. Consumption worth 10,00,000 & above p.a. 2,00,000 below below Rs.2,00,000 Rs.10,00,000 p.a. p.a. Palms, distillate fatty acid Solvents Items other than solvents aromatic Almond oil AB Red oil Blue colour paper Oil dark brown Oil green Soda ash Water soluble yellow Tactaric acid Camphor Benzyl propionale Common salt Liquid paraffin Glycerin White clay White oil Sandal bottle wood oil
Indigenous items Rice bran acid oil Clove leaf oil Stemon Acid slurry Silicon Cellophane paper
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INVENTORY MANAGEMENT
DEPARTMENTAL ORGANISATIONAL STRUCTURE
GENERAL MANAGER
(Finance)
AGM (Finance)
MGR A/Cs
MGR
MGR (PR&PF)
MGR (LS)
Supervisor
Supervisor
Junior Officer
Junior Officer
Junior Officer
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INVENTORY MANAGEMENT
HR DEPARTMENT
MANAGER [HRD]
FIRST AID
TIME OFFICE
OFFICER [HRD]
CANTEEN
VMO
ASS MANAGER
MANAGER
MANAGER R SR ASSTS
JR OFFICER JR. OFFICERS JR ASST SR. ASSTS JUNIOR ASST HELPERS ASST MANAGER
ATTENDER
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INVENTORY MANAGEMENT
PRODUCTION DEPARTMENT
General Manager
Manager
Jr.Officer
Charge man
Employees
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INVENTORY MANAGEMENT
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INVENTORY MANAGEMENT
Dept of Industries and commerce State Export Promotion Advisory Board. EXPORT AWARD 1974-75 2. Detergent Plant M/s Chemical Bombay have given 1 st price for the year 1980-81 3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2004 in the year 2000
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INVENTORY MANAGEMENT
DATA ANALYSIS AND INTERPRETATION
1. SIZE OF INVENTORY
Inventory means stock of goods. It covers the stock of raw materials, stores and spares, work in progress and finished goods
Table No. 1
Table showing the progressive base year percentage growth of inventory for the period 2006-09 Rs. in Crores Year
2007-2008 2008-2009 2009-2010 2010-2011
Inventory
35.0855 29.6012 40.7452 51.7605
Growth of inventory
19.42% 16.39% 22.15% 32.92%
x 100
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INVENTORY MANAGEMENT
GRAPH-1
Growth of inventory
35.00% 30.00% 25.00% 19.42% 20.00% 15.00% 10.00% 5.00% 0.00%
2007-2008 2008-2009 2009-2010 2010-2011
32.92%
22.15% 16.39%
Growth of inventory
ANALYSIS The above table shows the percentage growth of total inventory. Year 20072008 is taken as base year. In year 2007-2008 there was growth in inventory and it decreased to 16.39% in 2008-2009 and there was growth of inventory in succeeding years,22.15% in 2009-2010and 32.92% in 2010-2011. INTERPRETATION The position of inventory and its percentage were decreasing from 20072009.inventory and percentage growth of inventory were in downward trend due to decrease in production resulting to decrease in sales during the year 2007-2008 and 2008-2009.but in succeeding years i.e.2009-2010 & 2010-2011 the position of inventory and its percentage has increased due to increase in production and sales.
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INVENTORY MANAGEMENT
2. PERCENTAGE CAPITAL:-
OF
INVENTORY
TO
WORKING
Working capital is the amount of funds used in current operation of business, working capital need not be in cash, and it can be in form of asset that can be converted into cash within one year. Working capital = Current assets - Current liabilities
Table No. 2
Table showing the Percentage of Inventory to Working Capital for period 2006-09 Years
2007-08 2008-09 2009-2010 2010-2011
the
Inventory
29.60 40.74 51.76 52.52
Working capital
40.62 63.98 67.80 63.76
Percentage
72.87% 63.67% 76.34 82.37
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INVENTORY MANAGEMENT
GRAPH-2 CHART SHOWING PERCENTAGE OF INVENTORY TO WORKING CAPITAL
ANALYSIS
The above table shows the inventory to working capital, year 2007-2008 is taken as the base year.72.87% in 2007-08, 63.67% in 2008-09. it increased for the next succeeding years 76.34% in 2009-2010 and presently 82.37% in 2010-11. INTERPRETATION Inventory to working capital, helps to measure the short term solvency of a company. It is 63.67% in 2008-09, 76.34% in 2009-2010 The inventory to working capital is sufficient but during 2010-11 it is above the standard 82%. This shows it is not good situation for the company. This may be due to much of inventories is locked up in working capital.
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Table No. 3
Table showing the Percentage of Inventory in Current Assets for the period 2006-09
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INVENTORY MANAGEMENT
GRAPH-3
ANALYSIS
The above table shows the percentage of inventory in current asset. Year 2007-08 is taken as the base year. The above table shows the increasing trend, 33.57% in 2007-08, 37.33% in 200809,41.75% in 2009-10 and presently 46.84% in 2010-11
INTERPRETATION
From the above graph it is clear that the inventory to current assets ratio is increasing year by year , which increases the assets of the company. The current assets can b converted in o cash within the financial year. It provides more working capital to the company which needs for day to day activities of the firm.
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INVENTORY MANAGEMENT
4. INVENTORY TURN OVER RATIO OR STOCK TURN OVER RATIO It indicates the number of times the stock is turned over (sold) during the year. It is a ratio between net sales and average inventory.
Table No. 4
Table showing the percentage of Inventory Turnover Ratio for the period 09 (Rs. In Crores) Years 2007-08 2008-09 2009-10 2010-11 Net sales 128.6462 153.3703 164.7774 164.9723 Avg. inventory 29.6012 40.7452 51.7605 52.5234 Turnover times 4.34 3.34 3.183 3.76 2006-
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INVENTORY MANAGEMENT
GRAPH-4 CHART SHOWING INVENTORY TURN OVER RATIO
2007-2008
2008-2009
2009-2010
2010-2011
INVENTORY TURN OVER RATIO ANALYSIS The above table shows the inventory turnover ratio year 2007-08 is taken as the base year ,4.34 times in 2007-08.there was a decrease in turnover times for the next three succeeding years i.e.3.76 in 2008-2009,3.18 in 2009-10 and presently 3.14 in 2010-11.
INTERPRETATION
The above graph shows that the inventory turnover ratio is decreasing year by year from 20072011.This shows that there is improvement in control over the inventories from every year to year.
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INVENTORY MANAGEMENT
Table no. 5 Table showing the percentage of raw material ratio for the period 2007-11
Annual consumption
AVG.INVENTORY TURNOVER TIMES 5.3810 8.7290 13.9591 17.3447 10.06 9.19 5.554 4.7165
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INVENTORY MANAGEMENT
GRAPH-5
ANALYSIS
The above table shows the raw material turnover ratio. Year 2007-08 is taken as the base year. In 2007-08 the turnover times were 10.06 further there was decrease in turnover times in succeeding years. It was 9.19 times in 2008-09, 5.54 times in 2009-10and presently 4.716 in 2010-11.
INTERPRETATION
Raw material turnover ratio shows the number of times the raw material was replaced during the year. The raw material turnover ratio is decreasing year by year so, necessary steps should be taken for proper management of raw materials.
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INVENTORY MANAGEMENT
Table showing the turnover of stores and spares turnover inventory for the period 2007-2011
Years
Value of stores AVG. stores and TURNOVER and spares spares TIMES consumption 1.0313 0.8691 1.3257 1.1733 1.159 0.5439 0.9316 0.5077 0.89 1.60 1.42 2.311
Stores and spares turnover ratio =annual consumption of stores and spares Average stores and spares
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INVENTORY MANAGEMENT
GRAPH-6
2.311
1.6
1.5
0.89
0.5
ANALYSIS
The above table shows the stores and spares turnover ratio. Year 2007-08 is taken as the base year, its 0.89 times in 2007-08, 1.60 times in 2008-09, 1.42 times in 2009-10 and presently 2.31 in 2010-11. Its fluctuating over the years.
INTERPRETATION
Stores and spares turnover ratio is fluctuating over the years. This shows that there is inefficiency in managing the stores and spares. But in current year 2010-11 it has been increased when compared to that of previous year . so the company should see that it maximizes this ratio.
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Table No. 7
Table showing the Inventory turnover Conversion in number of days for the period 2006-09 Years No. of Days in a year 2007-08 2008-09 2009-2010 2010-2011 365 365 365 365 Inventory Turnover Ratio 4.34 3.76 3.183 3.14 No. of Days 84 97 114 116
Number of Days
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INVENTORY MANAGEMENT
GRAPH-7
114 97
116
100
84
80 60 40 20 0
ANALYSIS
The above table shows the inventory conversion period. Year 2007-08 is taken as the base year. 84 days in 2007-08, there is increase in succeeding years it was 97 days in 2008-2009, 144 days in 2009-10 and in the current year 2010-11 it is 116 days .
INTERPRETATION
The inventory turnover ratio shows the increasing trend which means that there is problem in proper inventory management. So necessary steps should be taken to correct it .
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Stores and spares consumed per day= Average stores and spares turnover Times of stores and spares ___________________________________ 365 TABLE .8
TABLE SHOWING DURATION OF STORES AND SPARES CONVERSION PERIOD FOR THE PERIOD 2007-2009
Years
Average stores Stores and spares No. of and spares consumed per day Days 1.159 0.5439 0.9316 0.5077 0.0283 0.0238 0.0362 0.0321 41 23 26 16
Average stock of stores and spares Average stores and spares consumed per day
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INVENTORY MANAGEMENT
GRAPH-8
41
26 23 16
Analysis
The above table shows the duration of stores and spares conversion period. Year 2007-08 is taken as the base year.41 days in 2007-08, 23 days in 2008-09, 26 days in 2009-10, 16 days in 2010-11.
Interpretation
The stores and spares conversion period are fluctuating every year. During the period 2007-08 it had taken 41days where as in the current year it took 16 days. Its not better sign of inventory management.
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TABLE .9 Table showing duration of raw materials conversion period for the year 2007-2011
Years
raw Raw materials No. of consumed per day Days 0.1483 0.2192 0.2124 0.2241 36 40 66 77
DURATION OF RAWMATERIALS= AVERAGE STOCK OF RAW MATERIALS AVERAGE RAW MATERIALS CONSUMED PER DAY
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INVENTORY MANAGEMENT
GRAPH-9
77
66
40 36
Analysis
The above table shows the duration of raw materials conversion period. Year 2007-2008 is taken as the base year. It shows the increasing trend , 36 days during 2007-08, 40 days during 2008-2009,66 days during 2009-2010 and currently 77 days in 2010-2011.
INTERPRETATION
The raw material conversion period shows the increasing trend for the period 2007-2011. During the year 2007-08 raw material conversion period was comparatively less when compared
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INVENTORY MANAGEMENT
to that of other years. It is increasing year by year. The increasing trend of raw material conversion period is not the good sign of inventory management.
Table No: 10 Table showing Operating expenses ratio for the period 2006-09
Years Operating cost Total income Ratio (in %)
Source: Records of the KS&DL Annual Reports Operating cost OPERATING EXPENSES RATIO: Total Income x100
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INVENTORY MANAGEMENT
GRAPH-10
94.05% 92.53%
91.69%
90.44% Operating expenses ratio
Analysis
The KS&DL has 90.44, 92.53, 91.69 & 94.05 as operating expenses ratio for the years 2007-08, 2008-09, 2009-10 & 2010-11 respectively. This shows KS&DL operating expenses position through over all income of the industry
INTERPRETATION
The above graph represents the constant increase. In the operating expenses through total income the years 2007-2011.
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INVENTORY MANAGEMENT
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INVENTORY MANAGEMENT
Findings
The study of Inventory management at KSDL Ltd. reveals the following findings.
A material planning is done based on orders obtained from different customers. The
material requirement plan processed is to give exact requirements of material to be produced. All material is stored in right condition at respective locations and the company has items
which are slow moving and non-moving, which are disposed off at regular intervals. Verification of high value material in holding store is conducted in accordance with
predetermined programmers. Vendors are related based on their performance with respect to delivery a quantity price
standard. The received materials are inspected as per standard plan is finished products are tested
on 100% basis material is released and handled properly. The inventory turnover ratio of the company is showing a decreasing trend from 3 years
where as in current year there is a slight improvement in control over inventories. The raw material turnover ratio is fluctuating. These shows there should be necessary
steps taken to manage the raw materials. Stores and spares turnover ratio is fluctuating. This show there is insufficiency in
managing the stores and spares inventory. The scrap obtained in the process is comparatively very low. The entire department of KSDL is computerized.
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component of inventory. New sales technique should be activated to increase the sales. Over stocking and under stocking of raw materials should be controlled by technical
auditors, there should be coordination between production processes department and inventory handling department for efficient outcome. The company should follow EOQ to reduce over stocking of material, purchase at
competitive prices, to reduce the cost of product. Concentrated effort will be needed to reduce stock of materials, which have not moved
for years, insurance items should be monitored and made certain that they would meet their purpose when called upon to do so. The production department should sequence the cycle of operation and stick to the
scheduled dates in all areas. Speed conversion of inventory will reduce the interest burden and improve the bottom line.
CONCLUSION
The following conclusion is drawn after analyzing the data collected from the company:KS&DL will remain a household name to the people of India. Their ambition has always been and will continue, to make soaps for the family of all around the country. And bringing new brands extension to suit the need of traditional and modern scenario. The organization firmly believes that giving its people the right encouragement yield in comparable rewards.
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INVENTORY MANAGEMENT
Emphasis is given to man, management and every opportunity so that people can grow with the organization. Its giant infrastructure and network people working toward a common goal to give the customer service and value that he deserve through relentless search for quality and pursuit of excellence looking toward the next century. The performance of KS&DL in the financial year 2008-2009 was satisfactory. The profits of the company have been increased in the financial year 2008-2009. Due to this there is an increase in the turnover of the company. But, during the financial year2009-2010 & 2010-2011 the profits of the company is decreasing. Due to this there is decrease in the turnover of the company. In KS&DL rate of inventory represents a very significant proportion of total assets. The size of the inventory is increasing year after which indicate inefficient inventory management in KS&DL The nutshell the KS&DL provides good quality of products & maintaining the good turnover and profitability position.
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INVENTORY MANAGEMENT
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INVENTORY MANAGEMENT
KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2008
Amount as at 31-03-2008 Amount as at 31-03-2007 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation 2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories 296,012,822 350,855,723 296,106,154 237,050,829 59,055,325 30,000,100 32,146,548 292,406,486 233,475,517 58,930,969 100 10,365,536 89,995,436 16,629,120 100,360,972 129,995,436 146,624,556 555,408,013 479,915,849 318,221,000 136,826,041 318,221,000 15,070,293 Rs Rs Rs
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INVENTORY MANAGEMENT
(b) Sundry Debtors (c) Cash & Bank Balances 146,346,670 334,385,423 80,873,641 312,345,581
104,944,640 881,689,555
72,546,525 816,621,470
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions TOTAL Net Current Assets 5. (a) Miscellaneous Expenditure ( to the extent not written off {or adjusted]) (b) Profits & Loss A/c 28,039,490 12,931,061 308,752,365 166,770,640 475,523,005 406,166,550 292,624,243 115,943,508 408,567,751 408,053,719
TOTAL
555,408,013
479,915,849
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INVENTORY MANAGEMENT PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2008
PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1,455,284,544 168,822,536 1,286,462,008 20,985,305 1,307,447,313 Increase / (-) decrease in stock -26,466,726 1,280,980,587 EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 541,433,115 613,525,868 3,577,430 1,158,536,413 Operating Profit Interest & Finance Charges 122,444,174 4,508,734 507,094,583 551,982,974 3,605,016 1,062,682,573 48,005,540 4,648,394 43,357,146 1,195,803,294 151,428,824 1,044,374,470 19,004,300 19,004,300 47,309,343 1,110,688,113 Amount for the Amount for the year ending 31-03- year ending 31-0308 07
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INVENTORY MANAGEMENT
- Current Tax - Defferred Tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Prior Period Expenditure Income / (-) 14,687,533 32,146,548 -27,048,785 13,730,643 121,755,743 Profit / (-) Loss brought forward from previous year 15,070,293 -5,326,044 15,070,293 22,099,763 20,396,797 6,640,866 18,000,000 7,098,690 4,596,941 88,239,809 35,855,694 5,200,000 2,301,452
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INVENTORY MANAGEMENT
KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2009 Amount as at 31-03-2009 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus & exchange fluaction reserve 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation 2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories (b) Sundry Debtors 407,452,487 163,529,618 296,012,822 146,346,670
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Amount as at 31-03-2008 Rs Rs
Rs
318,221,000 269,488,487
318,221,000 136,826,041
107,204,608 83,506,504
INVENTORY MANAGEMENT
(c) Cash & Bank Balances 255,132,909 334,385,423
215,257,572 1,041,372,587
104,944,640 881,689,555
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions TOTAL Net Current Assets 5. (a) Miscellaneous Expenditure ( to the extent not written off {or adjusted]) (b) Profits & Loss A/c 16,374,640 28,039,490 246,650,794 204,956,560 451,607,354 589,765,233 308,752,365 166,770,640 475,523,005 406,166,550
TOTAL
778,420,599
555,408,013
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INVENTORY MANAGEMENT
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2009 PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1,693,919,368 160,215,837 1,533,703,531 60,623,797 1,594,327,328 Increase / (-) decrease in stock 70,374,213 1,664,701,541 EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 801,928,343 734,442,910 3,969,038 1,540,340,291 Operating Profit Interest & Finance Charges 124,361,250 7,276,261 541,433,115 613,525,868 3,577,430 1,158,536,413 122,444,174 4,508,734 117,935,440 1,455,284,544 168,822,536 1,286,462,008 20,985,305 1,307,447,313 (26,466,726) 1,280,980,587 Amount for the year ending 31-03- Amount for the year 09 ending 31-03-08
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INVENTORY MANAGEMENT
- Current Tax - fringe benefit tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Perior Period Income Expenditure Deferred Tax Asset Proposed Dividend Tax of Earliar Years 130,893,087 Profit / (-) Loss brought forward from previous year 136,826,041 15,070,293 136,826,041 / (-) 14,078,609 20,358,318 -----14,687,533 32,146,548 -27,048,785 13,730,643 121,755,743 18,500,000 2,128,828 --96,456,160 18,000,000 7,098,690 4,596,941 88,239,809
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INVENTORY MANAGEMENT
KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2010 Amount as at 31-03-10 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus & exchange fluaction reserve 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation (b) net block 2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories 517605839 407452487
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Amount as at 31-03-2009 Rs Rs
Rs
318221000
318,221,000 269,488,487
343479146 107,204,608 80092400 83506504 163598904 825299050 83,506,504 190,711,112 778,420,599 778420599
100 61435241
100 52,504,866
INVENTORY MANAGEMENT
(b) Sundry Debtors (c) Cash & Bank Balances (d) Loans & Advances (e)Investment trust TOTAL in gratuity 50000000 1239560593 50000000 1091372587 172641760 285359727 213953267 163529618 255132910 215257572
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions Net Current Assets 292361773 269166068 561527841 678032752 246650794 204956560 451607354 639765233
5. (a) Miscellaneous Expenditure ( to the extent not written off {or adjusted]) (b) Profits & Loss A/c 16374640
TOTAL
855299050
778420599
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INVENTORY MANAGEMENT
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010 PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1789059796 141285059 1647774737 22288309 1,693,919,368 160,215,837 1,533,703,531 60,623,797 1,594,327,328 Increase / (-) decrease in stock 53286174 1723349221 EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 775383439 799799905 4982474 1580165818 Operating Profit/loss Interest & Finance Charges 143183402 8297546 801,928,343 734,442,910 3,969,038 1,540,340,291 124,361,250 7,276,261 117,084,988 70,374,213 1,664,701,541 Amount for the year ending 31-03- Amount for the year 10 ending 31-03-09
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INVENTORY MANAGEMENT
- Current Tax - fringe benefit tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Prior Period Expenditure Income / (-) 1441082 8930375 15911050 14,078,609 20,358,318 -----75760017 Profit / (-) Loss brought forward from previous year 26,77,19,129 130,893,087 136,826,041 48000000 2704083 93112149 18,500,000 2,128,828 --116814479
26,77,19,128
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INVENTORY MANAGEMENT
KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2011 Amount at 31-3-11 Amount as at 31-03-10 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus & exchange fluaction reserve 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation 32,72,62,896 24,14,31,939 8,35,06,504 79,32,48,197 8,00,92,400 83506504 16,35,98,904 82,52,99,050 3,18,22,100 391,520,693 318221000 343479146 Rs
2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories
100 6,25,71,241
100 61435241
525234558
517605839
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INVENTORY MANAGEMENT
(b) Sundry Debtors (c) Cash & Bank Balances (d) Loans & Advances 165859183 240314138 189732241 1201140120 172641760 285359727 213953267 50000000 1239560593
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions Net Current Assets 273532955 289914262 563447217 292361773 269166068 561527841 67,80,32,752
5. (a) Expenditure
Miscellaneous
( to the extent not written off {or adjusted]) (b) Profits & Loss A/c
TOTAL
79,32,48,197
85,52,99,050
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INVENTORY MANAGEMENT
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010 PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1810681627 160958395 1649723232 24,378,057 1789059796 141285059 1647774737 22288309 Amount for the Amount for the year year ending 31-3-11 ending 31-03-10
2,47,03,198 1649398091
5,32,86,174 1723349221
EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 72,75,73,371 5775312 1551413073 Operating Profit/loss Interest & Finance Charges PROFIT/(LOSS) BEFORE TAX 9,79,85,018 52,39,449 81,80,64,390 775383439 799799905 4982474 1580165818 143183402 8297546 134885857
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INVENTORY MANAGEMENT
Provision for Taxation - Current Tax - fringe benefit tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Prior Period Expenditure Income / (-) 1,00,13,655 11,36,000 1,59,11,050 14,41,082 89,30,375 1,59,11,050 26,42,627 5,39,38,942 3,40,00,000 48000000 2704083 9,31,12,149
4,80,41,547 Profit / (-) Loss brought forward from previous year 34,34,79,146
75760017 26,77,19,129
34,34,79,146
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INVENTORY MANAGEMENT
Bibliography
2009
2008
INTERNET SOURCES
WED ADDRESS
Page 93