A PROJECT REPORT

OF
PERFORMANCE APPRAISAL IN T.C.S.- A CASE
STUDY
Under the Guidance of
MS. DEBASRI DEY
Submitted By
SOHAM
REGISTRATION NO: 1305018320
(A Report Submitted in Partial Fulfillment of the
Requirements for the Degree of Bachelor in
Business Administration[BBA])

Problem statement
Inventory control is the process whereby investment
in materials and parts carried in stock is regulated
within predetermined limits set in accordance with
inventory policy established by the management.
The basis for my study is the

theory related to

inventory. The theory collected is as follows, Meaning

and definition of inventory, objectives & significant of
inventory and techniques of inventory and also what
are the Benefits derived to Company by holding
inventory.

Objective(s)
To study the inventory management in the
organization.
To identify the loop holes if any in the
inventory management system.
To apply the modern inventory management
techniques like
ABC
HML
VED
SDE
EOQ
JIT
Based on the above to give suggestion
3

Research Methodology
Research in common parlance refers to a search for
knowledge. Research as a scientific and systematic
for pertinent in formulation on a specific topic Infarct,
research in an art of scientific investigation. It is a
careful investigation or inquiry especially through
search for new facts in any branch of knowledge.
Data Collection MethodThe Term research design is defined as the ways and
methods that are followed in analyzing the data
available
In the above statement it is quite clear that in order to
find out the actual position of the company the
various methods of analysis should be made. The data
collected from the company is analyzed through the
following methods.

Contd
Collecting the DataPrimary data
Secondary data
Primary DataThrough survey researcher obtains primary data
directly from the Reader through following method.
Data are collected through personal interviews and
discussion with Finance-Executive.
Data are collected through personal interviews and
discussion with Material Planning- Deputy Manager.
Observation method:
Researcher went to the dealers showroom and
service center and even parking places. Researcher
directly observes the customers researcher with out
asking any question. Here researcher found most of
the customer was empty buying behavior.

Contd
Interview Method:
Researcher went to the service center and parking
places and collects the data through personal
interview.
Survey InstrumentsResearchs instrument is questionnaires for collecting
the primary data. This is very common and flexible
instrument.
Through Questionnaires:
Researcher collects most of the data through
questionnaires; researcher went to the consumers and
requested them to fill the questionnaires.
Secondary Data:
Secondary data is based on the past data i.e. [five
years Annual Reports 2009-2013].
Annual financial report of the company.
Brochures and books of the company.
And schedule, budgets and other statements provided
by finance department of the mentioned company.

Contd
Tools Used In The AnalysisEconomic Order Quantity.
Safety Stock.
ABC Analysis.
FSN Analysis.
Linear Regression method.
Inventory turnover ratios.
Period Of StudyThe period of the study at the company is for one month.
Sampling Techniques
The type of sampling that was carried out was probability
(convenience) sampling due to limited resources available.
In non-probability sampling, I have chosen RANDOM
sampling. Because this was best sampling method to do
market survey. On the other aspect, to cover all consumers
in Ghaziabad was easy task.

Data Analysis & Interpretation

Interpretation
An arbitrary standard of current ratio is 2:1 indicates that for every one rupee of current
liability two rupee of current assets is available. From the graph it is below the standard
this shows that there is no short term solvency of the company .

Contd
Administration, office, selling & other Expense Ratio:
This ratio indicates the relationship at administrative, selling & other Expenses to the
sales of the company. Here normally lower the expenses higher the profitability.
Administration, office, selling & other Expenses =
Expenses X 100
Sales
Interpretation
There is no role of thumb for this ratio, as it may differ from firm to firm depending
upon nature of business. Table shows the comparative expenses ratio is in fluctuating
trend.

Contd
Return on shareholders Investment:
Return on shareholders investments, popularly known as ROI. It is the
relationship between net profit after tax & shareholders funds. Thus this ratio
is considered as affective indicator of the companys profitability because it
reflects the success of management in the efficient utilization of the owners
investment.
ROI=.
Net Profit after Tax X 100
Shareholders fund
ROI

25.00%
20.00%
RATIO

15.00%
5.00%

Ratio

23.41%

10.00%
7.01%

0.00%
2006-07

2007-08

0.04%
2008-09

YEAR

Interpretation
The table reveals how were the resources of a firm was being used. So higher the ratio
better will be the result the ratio of ROI has increased to 23.41% when compared to 200607. There is no return on shareholders fund because the company shows the profit
10

Contd
Inventory Turnover Ratio:
Inventory turnover ratio indicates the number of times stock has been turned
over during the period & evaluates efficiency with which a firm is able
manage inventory.
The ratio is calculated by dividing the net sales divided by average inventory
at cost.
ITR=

Net Sales
.

Average Inventory at Cost

Average inventory should be taken for calculating stock turnover ratio.
Adding the stock in the beginning & at the end of period & dividing it by 2 to
calculate average inventory.
Interpretation
Inventory Turnover ratio has decreased to 1.9 to.94 in the year 2007-08, in
the year 2008-09 increasing the ratio to1.94.Which signifies the firms
efficiency in producing and selling is improving.

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Findings & Recommendations

Findings:
* The A items carry nearly about 7 to 8% of the total items similarly B items
11%
and C items 81%.
* In the inventory A items very strict control because having high volume of
the inventory management B items are moderate.
* The store department not maintaining levels of stock and any inventory
techniques.
* In the year 2006-07 current ratio 0.42. In the year 2007-2008 increased .but
2008-2009 decreased Company position is below standard ratio therefore
company position is bad.
* In the year 2006-07 quick ratio is 0.17. Next years decreased 2007-2008
ratio is 0.15 current position is increased 2008-2009.
* In the year 2006-05-7 absolute quick ratio is 0.028 but next year increased
to year 2007-2008 company position is still bad but recovery to ratio.
* In the year 2006-05-7 debt Ratio is 2.61 but subsequent year increased
year 2008-09 it has 2.80. Company position still to recovery.
* Fixed asset to net worth Ratio in the year 2006-07, 2.61 next year increased
but in the 2008-09 decreased by 2.55.
* Current Asset to Proprietary
fund Ratio in the year 2006-07 1.55.
subsequent years increased and decreased year by year.

12

Findings & Recommendations

Recommendations:
From the study Ranna sugar found that is non professional in approach to be
made to professional the systems in ranna sugars.
For examples:
Inventory management is manual and no Analytical tools are used for
management thus usages of ABC analysis is suggest in ranna sugars. The
company should try to enhance the operating efficiency of firm by Periodic
Analysis and review.
Conclusion:
R.S.S.K.N Company is leading manufacturer of sugar in this part of the
state. They are contributing to the development of the country as a whole.
Our country needs more such units who can help in its develop. So that we
can be a better and a bigger player in all the industrial sectors of the world.
Todays market place is changing rapidly. Competition from around the corner
the corner and around state is increasing. Their policy is to market quality
products and to meet customer satisfaction and to attain quality leadership.

13

Future Scope
In any business make it big or small, we must understand
that taking good care of our inventory is very important.
One of the reasons for the failure of a business is its
inventory management. What we can do is learn,
implement, and evaluate our business.

14

References
Books Consulted:
M Y Khan P K Jain Financial Management 4th edition Tata McGraw Hill.
R.S.N. Pillai V. Bagavathi Management Accounting S Chand & Co.
Martand Telsang Industrial Engineering & Production Management S
Chand & Co.
R. Paneerselvam Operations Research Prentice hall Of India Private Ltd.
B.M. Lall Nigam I.C. Jain Cost Accounting Prentice hall Of India Private Ltd.
S.P. Iyengar Cost & Management Accounting Sultan Chand & Sons.

Web Sites:
www.Cooperativesugarltd.com
www.finance.yahoo.com
prudentialsugars@yahoo.com
www.pscl.com

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Questionnaire
Name
:
.
Companys Name :
.
Age :
..
Nationality
:
..
Address :
.
.
.
Telephone Nos. :
.

1) Are you able to break down your operating inventory into the three major
categories when reporting levelssafety, replenishment and excess or
obsolete stock?
Yes
No
2) Is your company using the most effective method to calculate your safety
stock levels?
Yes
No
3) Do you recalculate safety stock levels on a regular basis to ensure they are
up to date?
Yes
No
4) Who decides key inventory-related policy such as striking the right
balance between customer service and cost-effective product inventory
levels?
16

Contd
5) Who determines the optimal frequency for producing or ordering
products?
A cross-functional team or
Only production planning or sourcing managers?
6) How do you determine the frequency for ordering and inventory
production if it's not set solely by factories or the supply organization?
---------------------------------------------------------------------------------------------------------------7) Is the optimal order or production frequency calculated on a regular basis
as part of a continuous improvement process?
Yes
No
8) Do you have regular visibility into excess and obsolete stock, and is it
linked to targeted action plans to sell off or reduce this inventory?
Yes
No

17

Contd
9) Do you perform root-cause analyses on excess and obsolete stock
and know how they are linked to action plans that curb more
excesses from being created?
Yes
No
10) Do you apply the above practices to all parts of your inventory
(finished goods, raw material, works in process and spare parts) and
in all organizational entities?
Yes
No

Consumer Signature

18

THANK YOU

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