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A Study on Inventory Management 1.

INDUSTRY PROFILE:
The field of Aviation has been investigated for millennium but modern Aviation began with the first powered flight on 16th December 1903 by the ‘ !"#$T %!&T$'!()* +rom thereon, Aviation has grown to be one of the most e-isting, diverse and fast growing field of today* +rom the hot air balloons of 1. th century to the first manned machine to the moon on Apollo 11 to the new and e-isting aircraft being developed by the companies li/e %oeing, Airbus and %ombardier, aero space has come a long way over a century* The Aerospace and Defence industry was struggling to maintain profitability even before (ep 0001, and fears of further terrorism, the conflicts in Afghanistan and "ra1, and a wea/ economy combined to devastate the commercial aerospace industry over then (uring years* &n the other hand the wars in Afghanistan and "ra1 bolstered the coffers of many defence companies2 belt tightening may be on the way* The mother of all defence deals occurred in 0001 hen 3oc/heed beat out %oeing for the

4000 %illion 5oint stri/e fighter contract, the largest defence contract ever* (pread out almost 30 years, it may be the last deal for drones 6as evidence in Afghanistan with the use of general atomics predator7 it e-pected to continue supplanting the need for the more e-pensive manned aircraft and ma/ing it unnecessary to ris/ pilots lives in combat* "n the interim, the soaring costs in "ra1 have also put a damper on some other ma5or pro5ects* "n 0008 the 9( army cancelled the planned 480 billion apache reconnaissance $elicopter program2 early in 000: there was tal/ of scaling bac/ the +;A<00 !aptor program and of reducing the number of c<130= aircraft on order* A desire to be smart, fast, and mobile has replaced the >more and bigger? doctrine of the cold war* To the end several companies including 3oc/heed @artin, Aorthrop #rumman and #eneral Dynamics have invested in hardware and software companies that focus on #overnment Bustomers* The top defence contractors are 3oc/heed @artin, %oeing Aorthrop #rumman, and %A' systems, !aytheon, #'A'!A3 Dynamics, and 'AD(* &n the commercial side, airlines< by far the biggest customers in the sector have lost %illions since 0001

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A Study on Inventory Management
%y way of illustration, the top nine airlines lost410 billion in 0000, almost 46 billion in 0003,and about 48 billion in 0008 and both 9A3 6the parent of 9nited Airlines7 and 9( A"! AC( have filed for ban/ruptcy protection* As mentioned previously, (eptember 11 and subse1uent travel fears dealt a devastating blow to a commercial aircraft mar/et that was already reeling from a mar/et slow down* That mar/et, which accounts for about 80D of aerospace and defence industry spending, is divided in to our segmentsE <
 3arge Bommercial Aircraft 6planes of 100 seats and more7 

@aintenance repair and &verhaul 6@!&7, $A3 Aircraft division

 =et engines and business 

!egional aircraft 6less than 100 seats)

"n 0001, %oeing and Airbus, the world)s only large commercial aircraft mar/et, saw mar/et plummet by 8:D and 0.D respectively "n 0001, %oeing and Airbus, the world)s only large commercial aircraft mar/et, saw mar/et plummet by 8:D and 0.D respectively* Airbus recently surpassed %oeing in orders, but the formers 0000 deliver droppedFD from 0001*%oeing meanwhile e-perienced a staggering 0.D decline in deliveries from0001* As a result of the drastic fall<off in business, %oeing cut about 30000 5obs or roughly30D of it commercial aircraft wor/force in 0000*Aircraft orders pic/ed up in 0003 and 0008 as %oeing and airbus continued to du/e it out for airline orders* %oeing is wor/ing on its long<range, fuel<efficient, mid<siGed, F'F Dream 3iner 6due in 000.7, ::0<passenger behemoth* Airbus then upped the ante by announcing that it would build the A:30 6due in 00107 to compete directly with %oeing F'F* The @aintenance repairs and overhauls 6@!&7, 5et engine, and business and regional aircraft mar/ets have suffered right along with airlines and large commercial aircraft ma/ers* The biggest regional aircraft ma/ers are %ombardier, #ulf (tream and Te-tron)s Bessna 9nit*, #' Aircraft 'ngines, !olls !oyse, and Hratt and manufacturing and launch services* hitney are the three largest 5et engine ma/ers* The space mar/et is made up of two primary segments2 satellite and roc/et

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A Study on Inventory Management
The ma5or players include %oeing, 3oc/heed @artin, Aorthrop, #rumman, Alcatel (pace and &rbital (cience* '-pectations for the long<term profitability of the space mar/et continue to outstrip the short<term realities, but companies continue to invest in this* 'ven before the terrorist attac/s, %oeing for e-ample, was placing more emphasis on @ar/et in its strategic thin/ing, and proposed a sweeping overhaul of the world)s air traffic control system The main activity of the division is manufacturing of fighter aircrafts li/e =aguar, $aw/, 3a/shya and landing gears for Dornier Aircraft and e-ports pro5ect li/e manufacture of %oeing and airbus doors* "t also manufactures materials for "ndian Aerospace organiGation such as "(!&, D!D& IAA3 etc* Aviation is one of the most significant technological influences of our times and empowers the nation with strength* "t is a ma5or tool for 'conomic development and has significant role in Aational security and "nternational !'3AT"&A* "ndia has been fortunate to have started Aeronautics related activities in 1980 with the establishment of $A3* The aviation industry globally has many players*

Aircraft major players are:
1. 3oc/heed @artin is at the top of the list followed by

0* %oeing 69*(7, 3* Aorth !ope #rumman 69*(7, 0* %A' (ystems 69*J7 and 3* !aytheon 69*(7 is the top five dominated 9*( aero space and defence ma5ors* The aviation industry comprises companies producing air craft, guided missiles, aircraft engines, space vehicles, propulsion units and reduced parts* Aircraft overhaul, rebuilding and parts are also included* The aviation industry in "ndia includes (tate owned entities and also number of Hrivate players* The ministry of civil aviation governs the aviation industry* $industan Aeronautics, ran/ed 38th among the global league of top :0 aerospace companies moving up since last year)s ran/ of 8:* "n 0008 < 000:, the "ndia share of the global aviation industry was 9( 436 %illion* Aviation "ndustry in "ndia is one of the fastest growing aviation industries in the world, with the liberaliGation of the "ndia aviation sector2
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A Study on Inventory Management
Aviation industry in "ndia has undergone a rapid transformation* +rom being primarily a government owned industry, The "ndia Aviation "ndustry is now dominated by privately owned full service air lines and low cost carriers*

Aviation Industry supplies services to the India are:
1* "ndian Defence (ervices* 0* Boast #uards* 3* %order (ecurity +orces* Transport Aircraft and $elicopters have also been supplied to Airlines as well as (tate #overnments of "ndia LEADIN PLAYERS IN AERONAUTI!S INDUSTRY: Top aviation companies in India  Air Bharter (ervices Hrivate 3td  Air Bharters "ndia  Air "ndia  Aviation "ndia  "ndian Airlines Haramount airwaysE Hrivate airlines account for around F:D share of the domestic aviation mar/ed*

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assemble and &verhaul aircraft under license* The #overnment of "ndia became a shareholder in @arch 1981 and too/ over the @anagement in 1980*+or si. piston and 5et engines trainer)s commercial aircraft. @anufacture and @aintenance of advanced fighters. the late (eth alchand $arahan. $A3 has 19 Hroduction 9nits and 9 !esearch and Design Bentres in F locations in "ndia* The Bompany has an impressive product trac/ record <10types of aircraft EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 5 . e1uipment and avionics* Today. with the ob5ect of establishing an aviation industry that can manufacture. who set up $industan Aircraft 3imited at %angalore in association with S)r$ *aya&)aramara+endra .A Study on Inventory Management ". helicopters and associated Aero engines. $A3 has spread its wings to cover various activities in the areas of design and development. Janpur* The Bompany traces its roots to the pioneering efforts of an industrialist with e-traordinary vision. !OMPANY PROFILE #$ndu%tan Aeronaut$&% L$m$ted '#AL( $industan Aeronautics 3imit 6$A37 came into e-istence on 1st &ctober 1968* The Bompany was formed by the merger of $industan Aircraft 3imited with Aeronautics "ndia 3imited and Aircraft @anufacturing Depot.decades.odeyar the erstwhile princely (tate of @ysore in December 1980. aircraft systems.

in the very first year of its production. a uni1ue achievement* $A3 has played a significant role for "ndiaLs space programs by participating in the manufacture of structures for (atellite 3aunch Kehicles li/e2  H(3K 6Holar (atellite 3aunch Kehicle7  #(3K 6#eo<synchronous (atellite 3aunch Kehicle7  "!( 6"ndian !emote (atellite7  "A(AT 6"ndian Aational (atellite7 HAL has formed the following Joint Ventures (JVs)  %A'$A3 (oftware 3imited  "ndo<!ussian Aviation 3imited 6"!A37  (necma $A3 Aerospace Hrivate 3td  (A@T'3 $A3 Display (ystem 3imited  $A3%"T Avionics Hrivate 3td  $A3<'dgewood Technologies Hrivate 3td  "A+&T'B$ $A3 3td EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 6 .A Study on Inventory Management manufactured with in<house !I D and18Types produced under license* $A3 has manufactured over 3::0 aircraft. Air +orce and the Boast #uard in @arch 0000. Aavy.1:0 aircraft and 0F300 engines* $A3 has been successful in numerous ! I D programs developed for both Defence and Bivil Aviation sectors* $A3 has made substantial progress in its current pro5ects2  Dhruv. which is Advanced 3ight $elicopter 6A3$7  Te5as < 3ight Bombat Aircraft 63BA7  "ntermediate =et Trainer 6"=T7  Karious military and civil upgrades* Dhruv was delivered to the "ndian Army. 3600 engines and overhauled over .

services are mainly to "ndian Defence (ervices. Boast #uards and %order (ecurity +orces* Transport Aircraft and $elicopters have also been supplied to Airlines as well as (tate #overnments of "ndia* The Bompany has also achieved a foothold in e-port in more than 30 countries.  Aircraft division.A Study on Inventory Management Apart from these seven.has its own airfield and comprises the  'ngine division. $A3)s $elicopter division produced 336 B$'TAJ‘s AAD 086B$''TA$ helicopters and more than 000 $elicopters of both the types for the "ndian Air force. having demonstrated its 1uality and price competitiveness* $A3 is "ndia)s only Aircraft manufacturer and is the foremost aviation company in the first helicopter type to be built at $A3 %angalore was the A3&9'TT' "33.  @!& divisions* +rom past 00 years. system and avionics*  Aerospace vehicles structure* The %angalore comple. repair and &verall the  @aintenance and field support toE  @ilitary.of $A3 is the oldest and the largest group of aircraft and engines factories of the company* The comple. industrial and marine gas turbine engines*  Aircraft accessories. Aavy. Army and Boast #uards EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 7 .  $elicopter division. later names B$'TAJ Today the company)s activities range from the design. other ma5or diversification pro5ects are "ndustrial @arine #as Turbine and Airport (ervices* (everal Bo<production and =oint Kentures with international participation are under consideration* $A3Ls supplies . civil aircraft and $elicopters*  Aero engines.

it bought out the sta/es of alchand $irachand himself and other promoters so that it can act freely* The decision by 9nited EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 8 . (ir "smail and it also had financial help from the "ndian #overnment* The organiGation and e1uipment for the factory at %angalore was set up by illiam D* Hawley of the "ntercontinental Aircraft Borporation of Aew Cor/. especially by the Diwan. who was an e-porter of American aircraft to the region* Hawley managed to obtain a large number of machine<tools and e1uipment from the 9nited (tates* As The %ritish #overnment bought a one<third sta/e in the company by April 1980. ROUND / IN!EPTION OF #AL: Hroduction line of the $A3 Dhruv at %angalore $industan Aeronautics 3imited 6$A37 is a premier aerospace company under @inistry of Defence.A Study on Inventory Management A. #overnment of "ndia.-A!. with its corporate office %angalore* $A3 was established as $industan Aircraft in %angalore in1980by alchand $irachand to produce military aircraft for the !oyal "ndian Air +orce* The initiative was conceptualiGe %y (ir*@* Kisweswarya actively encouraged by the Jingdom of @ysore. it believed this to be a strategic imperative* 3ater in April 1980.

$industan Aeronautics 3imited 6$A37. it was nationaliGed $industan Aeronautics 3imited 6$A37 became an entity* &n 1st &ctober 1968 with the merger of $industan Aircraft 3imited. /nown as @i#<01 %ison. %oeing and $oney well to manufacture aircraft spare parts and engines* &n the 0 April 1980 the government announced that the company had been nationalised when it had bought out the sta/es of alchand $irachand and other promoters so that it can act freely* The @ysore Jingdom refused to sell its sta/e in the company but yielded the management control over to the "ndian #overnment* The company has been ma/ing steady growth in financial terms over the years* The company en5oys the highest credit rating by B!"("3 and "B!A for short term and long<term debt Hrograms* -. which increased its life<span by more than 00 years* $A3 has also obtained several multi<million dollar contracts from leading international aerospace firms such as Airbus. continues to ta/e large strides in the sector with every passing year* After "ndia gained independence in 198F. the company has played a crucial role in moderniGation of the "ndian Air +orce* "n 19:F company started @anufacturing =et engines 6&rpheus7 under license from !olls<!oyce at new factory located in %angalore* During the 19. a %angalore<based private enterprise with Aeronautics "ndia 3imited and the Aircraft @anufacturing Depot.M "ndiaLs aerospace and defence ma5or. $A3Ls operations saw a rapid increase which resulted in the development of new indigenous aircraft such as $A3 Te5as and $A3 Dhruv* $A3 also developed an advanced version of the @i#<01.NATURE OF T#E -USINESS !ARRIED IN #AL: EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 9 . within 0 years of establishment.A Study on Inventory Management Jingdom was primarily motivated to boost %ritish military hardware supplies in Asia to counter the increasing threat posed by "mperial =apan during (econd orld ar* $owever. the management of the company was passed over to the #overnment of "ndia and was renamed as $industan Aeronautics 3imited 6$A37* Though $A3 was not used actively for developing newer models of fighter 5ets.0s. the @ysore Jingdom refused to sell its sta/e in the company but yielded the management Bontrol over to the %ritish #overnment* Thus. Janpur* Adopting the slogan MAsiaLs Hremier Aerospace Bomple-.

repair ofE • • • • • • • • • • +ighter and trainer aircraft* Bommercial and transport aircraft* $elicopter N civil and military* "ndustrial and marine gas turbines* Avionics* Accessories 6@echanical. 0ISION1 MISSON AND 2UALITY POLI!Y: 0$%$on “To ma/e $A3 a dynamic.A Study on Inventory Management $industan Aeronautics 3imit 6$A37 came into e-istence on 1st &ctober 1968* The Bompany was formed by the merger of $industan Aircraft 3imited with Aeronautics "ndia 3imited and Aircraft @anufacturing Depot. manufacture and maintenance of aerospace defence e1uipment and diversifying to related areas. this will be driven by core values of the company fully embedded in the culture of the organiGation? ission Design. aircraft transparencies* #round support e1uipment* '-port of aero structure to leading world aircraft manufacturers for satellite and launch vehicle* (oftware development for aero space applications* !. managing the business >To become a globally competitive aerospace industry EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 10 . avionics and accessories*  Design and e-hibition of military as civil updates and moderniGation*  @anufacture. Janpur*  Design and development of fi-ed and rotary wing aircraft. maintenance. highly motivated to meet the current and future challenges.'lectronic7* $igh technology casting. value N based learning organiGation with human resource e-ceptionally s/illed. vibrant.

processes and services to ensure customer satisfaction? !uality o#jectives of company are  9nderstanding and satisfying customer needs*  To design and approve standard in all direct and support activities*  "mplementation of process control in all spheres of activities*  &peration of companywide continuous programs* Values  !USTOMER SATISFA!TION e are dedicated to building a relationship with our customers where we become partners in fulfilling their mission* e strive to understand our customers L needs and to deliver products and services that fulfil and e-ceed all their re1uirements*  !OMMITMENT TO TOTAL 2UALITY e are committed to continuous improvement of all our activities* maintainability and fitness for use as desired by our customers*  !OST AND TIME !ONS!IOUSNESS e will supply products and services* That conforms to highest standards of design. reliability. manufacture.A Study on Inventory Management while wor/ing as an instrument for achieving self<reliance in n commercial lines in a climate of growing professional competenceM* !uality "olicy Aircraft division)s 1uality policy is >To manufacture and supply aeronautical products to meet the customer)s re1uirements and to continuously improve 1uality in all products. e believe that our success depends on our ability to continually reduce the cost and shorten the Delivery period of our products and services* e will achieve this by eliminating waste in all activities and continuously improving all processes in every area of our wor/* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 11 .

3*61 Bores e will strive for building empowered teams to wor/ De3$n$t$on: . therefore improve their time and wor/ management* 37 @a/e value added decisions* 87 Blarify roles of department or individual* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 12 . short<term as well as long<term debt programmers. including short<term deposits at the end of the year under review stood at !s* 1. the core area which each person is accountable* Im5ortan&e o3 . F. co< operation.RA6% 17 (et goals and ob5ectives* 07 HrioritiGe their activities.ey re%u4t area >Jey results areas or J!A)s referred to general areas of output or outcomes for which department)s roll is responsible?*>J!A in simple terms may be defined as primary responsibilities of an individual. for !s*8:0. transparency. and a sense of belonging* towards achieving &rganiGational goals*  !REDIT RATIN The Bompany continued to maintain the highest credit rating of both.A Study on Inventory Management  INNO0ATION AND !REATI0ITY e believe in striving for improvement in every activity involved in our business by pursuing and encouraging ris/<ta/ing.<0F with a turnover of !s*F. it has been availing Bash Bredit facility from the %an/ers to meet its short<term re1uirements from time to time* This credit rating has enabled the Bompany to source fund at the best possible rates.6:F*68 core against !s* 19F88*:6 cores of the previous years* The Bompany scaled new heights in the financial year 000. e-perimentation and learning at all levels within the company with a view to Achieving e-cellence and competitiveness*  TRUST AND TEAM SPIRIT e believe in achieving harmony in wor/ life through mutual trust.<cores each from the "nvestment "nformation I Bredit !ating Agency 6"B!A7 and Bredit !ating "nformation (ervices of "ndia 3imited 6B!"("37* Although yours is a ‘Oero<Debt) Bompany. thereby improving the profitability* The cash and ban/ balances.

A Study on Inventory Management D. PRODU!TS OF OR ANISATION EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 13 .

A Study on Inventory Management E. AREA OF OPERATION: $A3 operates both domestically and internationallyE DOMESTIC AREA:  "ndian Air +orce  "ndian Aavy  "ndian coast guar  Defence !esearch I Development organiGation  "ndian (pace !esearch organiGation  %harat 'lectronic 3imited EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 14 .

+rance  "srael Aircraft "ndustries.and the large of its /ind in Asia* F. and A"!%9( 6+!AAB'7 Bonsideration. +rance  %oeing. 1968. %&'"A# 69(A7. came into e-istence on &ctober 1. 9J  Default Aviation.NERS#IP PATTERN: The #overnment of "ndia 6#&"7 became one of the shareholders of $industan Aircraft 3imited in @arch 1981 and too/ over the management in 1980* $A3 in its present form as a Hublic (ector 9nderta/ing 6H(%7 under the @inistry of Defence and fully owned by $A3 Aircraft division #&". EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 15 . "srael  @itsubishi $eavy "ndustries. $A3 Aircraft division FFF up loc/ e1uipment to • !ussia • (pares and services to Aepal • @alaysia • Thailand • Oimbabwe • @auritius and &man* $A3 has also initiated measures to identify and establish strategic alliances and 5oint ventures with global aerospace companies who provide cutting edge technologies help in upgrading the s/ill. aiming to enhance business and upgrade technology and other different countries* The $industan aeronautics 3imited 6$A37 evolved into a vertically integrated aeronautics comple.1uality levels in addition to opening e-port mar/ets* The company is also having its operation all over the world its liaison offices are situated in countries li/e2  3ondon  +rance  #ermany  "srel "t also has customers li/e %A' 69J7.A Study on Inventory Management  Aational Aerospace 3aboratories INTERNATIONAL AREA:  Air bus. 9(A  %A' system.O. "A" 6"(!'A37. =apan  !oyal Air force of &@AA  Air @auritius  Airline &perations in (outh Asian Bountries* $A3)s ma5or e-ports during the year included AN300 passenger doors to airbus.

&"A)* &-*: (ecurity department provides the safety measures to employees* Aew rules and regulations are created to protect to protect the employees from meeting with an accident* Terms and conditions are to be followed by the employees while performing the 5ob* (afety of employees is ta/en care of by this department* #$ *)AI-I-. HALL%: EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 16 .A Study on Inventory Management when Aeronautics "ndia 3imited and Aircraft manufacturing Depot were merged with $industan Aircraft 3imited* $A3 is the largest H(9 under the Department of defence Hroduction. !OMPETITORS INFORMATION: The Aerospace @ar/et is highly competitive with the (tate owned. $A3 being the largest "ndian Aircraft manufacture* Bompetition is li/ely to intensify with greater Hrivate (ector and +oreign participation* The #overnment too has set up its role in promoting the industry* The company does not have any competitors in Domestic @ar/et. for its Aircraft because it re1uires huge sum of money I vast area of land for establishing a company and it also involves huge ris/ which the private parties would not li/e to ta/e* And the engine division manufactures Aircraft purely for countries defence purpose* (o its main customer is "A+ 6"ndian Air force7* The company is having few competitors of its e-port pro5ects li/e2 %oeing IAirbus does from countries li/e Bhina and Ha/istan* #. #&" and has been declared as a @ini !atna 6category N 17 company* $A3 has blossomed into a ma5or player in the #lobal Aviation Arena and is today one among the elite >AAKA!AT$AA B&@HAA"'(?*$A3 was initially set up as $"AD9(T$AA A'!&AA9T"B( 3"@"T'D P %angalore in association with T$' '!(T $"3' H!"AB'3C (TAT' &+ @C(&!' in December<1980* The #overnment of "ndia became a shareholder in @arch<1981 and too/ over the @anagement in 1980* . INFRASTRU!TURAL FA!ILITIES: a$ %&'()I*+ .

with the necessary state< of the art software to ma/e presentations* c$ LI/)A)+: A good library with over 10. EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 17 .A*I0-: +ully furnished 80 twin occupancy rooms and : dormitories provide accommodation for a 100 participants* A neat and tidy cafeteria within the campus* A very pleasant and calm place to live and nearness to mother nature< par/s. writing board.0 seats is also available for viewing films. snac/s.I*0)I( : An air<conditioned auditorium designed with 1. an absolute healthy atmosphere to live in f$ 'A-*&&. tea. meals etc* g. with fle-ible seating arrangements* 'ach classroom is e1uipped with an overhead pro5ector. public address system. $yderabad. to the e-tent possible for commuting between the residence and place of wor/* Bompany has established schools atE • • %angalore. *)A-%"0)* 1A'ILI*I&%: 'mployees residing outside the company township are provided with transport facilities 6company owned7 at subsidiGed rates.A Study on Inventory Management $A3 has : air conditioned training halls with seating capacity varying from1:<:0.000 boo/s mainly on @anagement topics. digital light processing pro5ector 6D3H7 computer.1A'ILI*I&%: Banteen has been established at every division as a necessity and welfare measure and in /eeping the statutory re1uirements under the +actories Act for the convenience of employees* This canteen serves coffee. a 5ournals and an impressive collection of Audio<Kisual Aids supplement classroom learning and assignments* d$ A(.videos and conducting seminars* A well facilitated Dias is also available for cultural programs of participants* e$ A''0 0.

A Study on Inventory Management • Joraput.ARDS / A!#IE0EMENTS: EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 18 . A /(LA-'& )00 2 This department is one of the safety measures* This department is to help the employees* @edicines are provided and available 08hours* I. A. +or the benefit of the employee)s children* The administrations of these schools are vested with the educational committees constituted for the purpose of the education in respective divisions* +.

0009* HAL 4I-% /0&I-. at the presentation ceremony of the @o9 '-cellence Awards and (B&H' Awards for the year 0006<0F and 000F<0.  %angalore<based $A3 has been awarded the newly<constituted ‘The Alliance Award) in recognition of its >uni1ue capabilities and services that are instrumental to a new %oeing product?* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 19 .5% 6778 %(""LI&) 01 *H& +&A) A4A). Dr* @anmohan (ingh presenting the @o9 '-cellence Award 0006<0F for >"ndustrial (ector? to the &fficiating B@D of $industan Aeronautics 3td*. (hri(an5eev (ahi on behalf of the $industan Aeronautics 3td*. in Aew Delhi on &ctober1:.for '-cellence and &utstanding Bontribution to Hublic (ector @anagement.A Study on Inventory Management o( &3cellence Award: The Hrime @inister.

0010 at Ahmadabad* (upplier of the year 0009 by %oeing based on their evaluation criteria for suppliers       *. MODEL : EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 20 . $A3 won the M#&3D T!&H$CM for e-cellence in Hublic (ector @anagement. Technology and "nnovation*  At the Aational level.. during the 01st orld 1uality commitment 6 QB7 convention held at Haris recently* The year 000: started with an e-cellent beginning and the centre has been awarded the >#&3D'A H'AB&BJ A A!D +&! "AA"KAT"K' H!&D9BT N 0008?by the institute of "&D Aew Delhi* $A3 is conferred with the >AAK!AT$AA >status on 00nd =une 000F* $A3 has received !a/sha @antra)s Awards for e-cellence for #argi $uttenes<Albertus #reen +oundry Award of the year 000. 9J by @. instituted by the (tanding Bonference of Hublic 'nterprises 6(B&H'7*  $A3 has bagged the ‘ &!3D Q9A3"TC B&@@"T@'AT "AT'!AAT"&AA3 H3AT"A9@ (TA! A A!D) from business initiative directions6bid7 (pain.OR. 3eadership. FLO.<0009 by the "nstitute of "ndian +oundry men to +oundry I +orge Division* The award was presented on :th+ebruary.A Study on Inventory Management  $A3 was awarded the >"AT'!AAT"&AA3 #&3D @'DA3 A A!D? for Borporate Achievement in Quality and 'fficiency at the "nternational (ummit 6#lobal !ating 3eaders 00037 < 3ondon.s #lobal !ating<9J in con5unction with the "nternational "nformation and @ar/eting Bentre 6""@B7  $A3 was presented the "nternational < >A!B$ &+ '9!&H'? Award in #old Bategory in recognition for its commitment to Quality.

5ver-a*l Divn EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 21 .n #om)le.alor e#om)le .y2ra6a2 Air)ort 7ervice Divn &* no0 'A!D# (an)* #entral /aterial3 :rocess &a6 Aircraft Divn .ine Divn &* no0 /!5 Divn $%lre Aeros)ace Divn l* no0 8/9' Divn .ine Divn (ora)*t !"!D#. $% &ore 'AD.elica)tor 1o*n2ry 31or.e Div A4!D# Nasi Avionics Divn 7* -oie +n. </D) . </D) </D) Desi.ine Divn ora)* #om)osite /f.elica)tor /f.y2ra6a2 +n. Divn $%lre 7&!D# 9'!D# (ora)*t 1acility A7+!D# /. </D) Aircraft (an)*r +n. Nasi +'$!D# Avionics Divn . </D) /89 #om)le.anisation #-airman $*siness Directors $an.Nasi A!D# Aircraft over-a*l Divn.A Study on Inventory Management or/ +low model means the process occurring in the organiGation to convert raw material into finished goods to meet the organiGational goals and needs* "n $A3 Aircraft Division the wor/ flow model is as followsE #or)orate 5r.elica)to r#om)le. </D) Accessori es#om)l e. . Divn $%lre /#7!D# $arra )*ra Divn (ol ata Accessories Divn .

people and environment*  To ensure optimum utiliGation of resource and reduction of waste* Today. small ground activities and suggestion scheme*  To up /eep and improve the infra structure to meet the re1uirements of process. 3600engines and overhauled over . $A3 has 19 Hroduction 9nits and 9 !esearch and Design Bentres in F locations in "ndia* The Bompany has an impressive product trac/ recordN10types of aircraft manufactured with in<house ! I D and18 types produced under license* $A3 has manufactured &ver 3::0 aircraft.A-I9A*I0-:  Adherence to design specification and laid down procedures in all activities*  Bontinual improvement in all processes based on previous and customer feedbac/  *To empowers the employees through and encouraging in 1uality circle. 3600 engine sand overhauled over .A Study on Inventory Management 0/J&'*IV&% 01 *H& 0).1:0 aircraft And 0F300 engines* $A3 has been successful in numerous ! I D programs developed for both Defence and Bivil Aviation sectors* Today. $A3 has 19 Hroduction 9nits and 9 !esearch and Design Bentres in F locations in "ndia* The Bompany has an impressive product trac/ record<10types of aircraft manufactured with in<house ! I D and18types produced under license* $A3 has manufactured &ver 3::0 aircraft.1:0 aircraft and 0F300 engine* $A3 has been successful in numerous ! I D programs developed for both Defence and Bivil Aviation sectors EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 22 .

.T# OF #AL: The BompanyLs steady organiGational growth over the years with consolidation and enlargement of its operational base by creating sophisticated facilities for manufacture of aircraft . OR ANISATIONAL RO.A Study on Inventory Management . helicopters. aero engines. EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 23 .

F1  Adour @J .08' R Garrett.11  #arrett TH' R Also underta:es repair and overhaul of  T@ 333<0%0  Adour @J . Orpheo s.)04*H "LA.01 HAL: 17 Hhysical tas/E   $aw/ @/ 130* Hata<la/shya*  Jiran spares to "A+ I Aavy*  Dornier spares to "A+ I Aavy*37 '-port ordersE  Airbus*  %oeing*  Bargo doors*  #un bay doors* • • ire bundle* eapon bay door* 07 !@( ordersE R "resently engaged in manufacture of  Adour @J . Arto ste III!" EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 24 . Dart.A Study on Inventory Management 1(*()& .11  Adour @J . Gnome.

$n%ey 8S Frame9or:E A.A Study on Inventory Management #Ta$en p ne% T&E ''()(* en+ine pro+ramme .T)e M&. EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 25 .or e-port 7.A-I%A*I0-5% .0).

A Study on Inventory Management The Fs model is better /nown as mc Jinsey)s F<s* This is because the two persons who developed their model* T&@ H'T'!( and !A%'!T @c Jinsey and co at that time* AT'!@AA have been consultants at EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 26 .

which might be the cause of its enormous popularity.07.0 and in their boo/s* >The art of =apanese @anagement? 619. but consists of seven elements* hile some models of organiGational effectiveness go in and out of fashion. where they emphasiGe the lesson to be derived from America)s best run companies* Harado-ically. has been the boo/ >"n search of e-cellence? by Tom Heters and !obert aterman 619.A Study on Inventory Management They published their Fs model in their critical >structure is not organisation? 619.07 and in their boo/s* >The art of =apanese management? 619. it is interesting to observe that the best compliment that can be made to an American firm is that it resembles a =apanese company* @B. two consultants wor/ing at the @cJinsey I Bompany consulting firm. one that has persisted is the @cJinsey F( framewor/* Developed in the early 19. Jinsey)s F( model reflects upon the frame wor/ used to evaluate the best managerial companies* The F)( model can be used in a wide variety of situations where an alignment perspective is useful forE  "mprove the performance of a company*  '-amine the li/ely effects of future changes within a company*  Align departments and processes during a merger or ac1uisition*  Determine how best to implement a proposed strategy EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 27 .17 and >"n search of e-cellence 619.07*The most notable e-ception.17 and >"n (earch of '-cellence? 619.0s by Tom Heters and !obert aterman.07* The model starts on the premise that an organisation is not 5ust structure. the basic premise of the model is that there are seven internal aspects of an organiGation that need to be aligned if it is to be successful* They published their F<s @odel in their articulate >structure "s Aot &rganiGation?619.

A Study on Inventory Management
These seven are distinguished in so called hard ()s and soft ()s* The hard elements are feasible and easy to identify* They can be found in strategy statements, corporate plans, organisational charts and other documentation*

The four soft ()s however, are hardly feasible* They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing* They are highly determined by the people at wor/ in the organisation* They are highly determined by people at wor/ in the organisation* Therefore it is much more difficult to plan or influence characteristics of the soft element* Although the soft factors below the surface, they can have great impact of the hard and structure, strategies and system of the organisation*

T#E #ARD S6%:

STRATE Y: ; Actions a company plans in a response to or anticipation of changes in its e-ternal environment* (tructureE %asis for specialisation and co<organisation influenced primarily by strategy and by organisation siGe and diversity*

SYSTEM:; +ormal and informal procedure that support the strategy and structure*6system are the more powerful than they are credit*7

T#E SOFT S6%: STYLE<!ULTURE: ; The culture the organisation consists of two components*
EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 28

A Study on Inventory Management
OR ANISATIONAL !ULTURE:; The values and beliefs and normal, which develop over time and become relatively enduring features of organisation life*

MANA EMENT STYLE: ; @ore a matter of what managers do than what they say2 how does a company)s manager spend their timeS hat are they focussing attentionS

STAFF:; The people;human resource management< process used to develop managers, socialiGation processes way of shaping basic values of management of cadre, ways of introducing young recruits the company, ways of heling to manage the careers of employees*

S.ILLE < The distinctive competence< what the company does best, ways of e-panding or shifting competences*

S#ARED 0ALUES<SUPER ORDINATE

OALS :;

#uiding concepts, fundamental ideas around which a business is built must be simply usually stated at abstract level have great meaning inside the organisation even through outsiders not see or understand them* 'ffective organisation achieves a fit between these seven elements* This criterion is the origin of the other name of the modelE diagnostic model for organisational culture 6management styles7 and thus will affect structures, processes and finally characteristic competences of the organisation* "n change processes, many organisations focus their efforts on the hard ()s strategy, structure and system* They are less for the soft ()s s/ill, staff, and style and shared valued* Heters and aterman in >in search of e-cellence? commented however, that brea/ a successful changes

EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 29

A Study on Inventory Management
process, since new structure and strategies are difficult to built upon in appropriate culture and values*

These problems often come up in the dissatisfying result of spectacular mega<merger* The lac/ of success and synergies in such mergers is often based in a clash of completely different cultures, values and styles, which ma/e it difficult to establish effective common systems and structure* The F<s model is a valuable tool to initiate changes processes and to give them direction* $elpful application is to determine the current state of each element ant to compare this with the ideal state* %ased in this it is possible to develop action plans to achieve the intended states*

EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 30

A Study on Inventory Management

=.S,OT ANALYSIS:
%*)&-.*H: $A3 is an avionics industry and it is which is under government sector* $A3)s customer is defence as well as non defence the strength area for $A3 is as under

POTENTIAL STREN T# Bore competencies in /ey area*

A0AILA-ILITY OF #AL "t e-ists the /ey areas are manufacturing repair and overhaul of aircraft*

Ade1uate financial resources* ell thought of by buyers*

"t e-ists in $A3* Ces, assured business is available by its buyers which are basically "ndian air force, army, navy, %(+ and other customer of national and international origin*

An ac/nowledged mar/et leader*

Ces, it is the only manufacturing and hence it is the leader in mar/et*

ell conceived function area strategies* Access to economies of sale Bost advantage

Ces Ces, $A3 as* Ces

EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 31

POTENTIAL INTERNATIONAL .A Study on Inventory Management Hroprietary techni1ues Hroven management %etter manufacturing Trained man power Ces Ces Ces Ces Bheaper man power in comparison to Ces international players 4&A<-&%%&%: The wea/nesses area for $A3 is as under.EA.NESSES (trategic direction &bsolete facilities 3ac/ of managerial dept and talent @issing competencies +alling behind in !ID AT #AL Aot true 3atest facilities Aot true Bompetencies e-ist Ces 0""0)*(-I*I&%: EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 32 .

Comparative Balance sheet Statement: 71%t mar&) "?11 PARTI!ULARS SOUR!ES OF FUNDS: 1. its protected by government* Therefore a non competition is available* "t is being preferred by international customers as man power is cheaper in "ndia and world class infrastructure is available in $A3* *H)&A*%: The threats area for $A3 is as under. navy.A Study on Inventory Management The opportunities area for $A3 is under POTENTIAL OPPORUNITIES (erve additional customer group AT #AL %asically $A3 was setup "ndian air force as additional customers today as army. POTENTIAL E>TERNAL ANALYSIS Bostly regulatory re1uirements Bompetition in international mar/et AT #AL Ces (trong competition e-ist $A3 5. %(+ and other national and international Hrotection by government Hreference by international customer customer group e-ist* Ces.1. S)are)o4der%6 Fund%: 71%t mar&) "?1" EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 33 . Analysis of Financial Statement: 5.

Loan Fund (ecured loans 9nsecured loans Tota4 7. 1:F0*:1 86.A Study on Inventory Management (hare capital !eserves and surplus Tota4 ". !urrent A%%et%1 Loan% and Advan&e%: "nventories EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 34 169F1*80 :098*00 116FF*80 111.F*68 7"1BB.F*:1 7D118.?1 096*00 09081*00 09:3F*00 096*00 36133*30 36809*:0 1.De3erred Ta@ L$aA$4$ty 'net( TOTAL APPLI!ATION OF FUNDS: :81*F0 <<<<<<<<< :81*F0 00.*6.1*11 6:0:*9.C= A"3 <<<<<<<<<<< A"3 06. :.*06 3F8*61 1F:39*08 1FF00*90 6139*F9 11:.F$@ed A%%et%: #ross bloc/ 3essE Depreciation Net A4o&: Bapital wor/ in progress ".Inve%tment% De3erred Ta@ A%%et Tota4 7.60*80 .*9F 836.*93 00106*:3 :00.

1 1:F36*6 0093F*81 1. " have gone through dissertation of 10 wee/s and in inventory management .9*00 13F11*03 13:8:*3F :000*. Le%%: !urrent L$aA$4$t$e% and 5rov$%$on%: Breditors Hrovisions Tota4 Net !urrent A%%et% C.3:3*90 3. from 1Fth December 0010 to 03rd +ebruary 0013 it was really an opportunity for me to /now the functioning of $A3.0 :9.M$%&e44aneou% E@5end$ture off or ad5usted7 Deferred revenue e-penditure TOTAL 7"1BB. 9096*10 98*98 109:9*. several management concepts were slightly difficult to analyse* $owever..LEARNIN E>PERIEN!E: As student of Kisvesvaraya Technological 9niversity. @!& Division* The ten wee/s pro5ect has created a sense of practical e-posure and enlightenment in my mind as to what actually as organisation is how theoretical concepts are practiced in with only theoretical /nowledge.F60*39 88F9:*88 :1*10 1.:*F0 1:088*F0 3969F*. after pro5ect " have felt empowered with confidence to understand different management concepts in a pragmatic manner* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 35 .0*13 030*09 0900*03 10F.A Study on Inventory Management (undry Debtors Bash And %an/ %alances &ther Burrent Assets 3oans and Advances F6*.0 0F0:6*80 Tota4 TOTAL ASSETS =.08*33 B.C= 7D118.?1 6to the e-tent not written 10.

wor/place. policies and style of management*  " was e-posed to the general organisational environment and its attitude as well as its ethics*  " would conclude hoping. shareholders. potential investors.A Study on Inventory Management The pro5ect at $"AD9(TAA A'!&A9T"B( 3"@"T'D. $A3 firm to e-cel in the years to come and to reach greater heights and to have a well entrenched presence in the mar/et* INTRODU!TION: !atio analysis is a very powerful and most commonly used tool of analysis and interpretation of financial statements* "t concentrates on the inter<relationship among the figure appearing in the financial statements* !atio analysis helps to analyse the past performance of a company and to ma/e future pro5ections* "t allows various interested parties li/e management. organisation culture. management and shareholders may be interested in the EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 36 . firm has given me a clear picture of an organiGation* The inventory management helped me a lot in recalling the theoretical concepts. government and other analysts to ma/e an evaluation of the various aspects of company)s performance from their own point of view and interest* +or e-ample. creditors. strategies. which " learnt in my 1st year @%A* " also come across real problems faced by organisation in conducted firm)s activities and the way in which the management tac/le those problems* The e-perience " gained from inventory management was very e-haustive* " learnt about organising the business in a most conductive manner /eeping in mind to e-plore new products.

and comparison of calculated ratios on some standards to interpret ratios* -a%$& o3 &om5ar$%on: EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 37 . calculation of ratios. ratio analysis is a techni1ue of analysis and interpretation of financial statements by establishing I interpreting various ratios for helping in ma/ing certain decisions !atio analysis is a powerful tool to understand the financial strength I wea/ness of the firm* Inter5retat$on o3 Rat$o%: "nterpretation is an activity concerned with giving brief I understandable e-planation of analyGed financial data 6ratio7 to re1uired people* "t is >e-plaining financial ratio in simple language which may be understood by a layman? "t is made in the following waysE      (ingle absolute ratio #roup of ratios $istorical comparison Hro5ected ratios "nter<firm comparison !atio analysis I interpretation begins with selection of financial data.A Study on Inventory Management company)s profitability while creditors and debenture holders may be interested in the solvency of the company* Mean$ng o3 t)e term Rat$o1 Rat$o Ana4y%$% / Inter5retat$on: Rat$o: A ratio is a simple mathematical e-pression of relationship of 1 number to another* "t may be defined as indicated 1uotient of 0 mathematical e-pressions* Thus. financial ratio is the relationship between 0 accounting figures e-pressed mathematically* Rat$o ana4y%$%: Thus.

deterioration.A Study on Inventory Management !atios are relative figures reflecting the relationship between variables* They enables analysis to draw conclusions regarding financial operations* The use of ratios. reflects its performance in relation to its competitors* Ot)er ty5e% o3 &om5ar$%on: They may relate to comparison of items within a single year)s financial statement of a firm and comparison with standards or plan* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 38 . as a tools of financial analysis involves their comparison. what does it indicatesS &nly if the figure is related to the fact that in is related to the fact that in the preceding year the relevant return was 10D or 1. say. therefore. the return on capital employed is 1:D in a particular year. the basis of ratios analysis* +our types of comparison are involvedE     Trend ratios "nter<firm comparison Bomparison of items within a single year)s financial statement of a firm)s Bomparison with standards or plans* Trend rat$o%: "t involves a comparison of ratios of a firm over a time. for a single ratio. it can be inferred whether the profitability of the firm has decline or improved* Alternative. the profitability of the firm in 1uestion can be evaluated* Bomparison with related facts is. present ratios are compared with past ratios for the same firm* The comparison of the profitability of a firm. that is. if in case of a firm. fails to reveal the true position* +or e-ample. li/e absolute figures.D. or constancy over the years* T)e $nter 3$rm &om5ar$%on: "t involves comparison of the ratios of a firm with those of others in the same line of business or for the industry as a whole. year 1 through : is an illustration of a trend ratio* Trend ratios indicate the direction of change in the performance improvement. if we /now that the return for the industry as a whole is 10D or 00D.

but analysis has to select the appropriate data and calculate only analysis few appropriate ratios from the same /eeping in mind. while analysis financial statements through ratio. Arrangement% o3 data: "t implies the representation of various items of annual accounts after appropriate reshuffling in form suitable for analysis and interpretation* "(. the pulse rate or body temperature and their interpretation depends upon calibre and competence of analyst* Pro&edure E%tage%F 3or rat$o ana4y%$%: The following procedure is generally followed.A Study on Inventory Management . ob5ective of analysis* The ratio may be used as symptom li/e blood pressure.c ratios b* Blassification by uses* i* !atio for management ii* !atios for creditors EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 39 . !4a%%$3$&at$on and &a4&u4at$on o3 rat$o%: This classification is based on those statements from which information is obtained for calculating the ratios* a* Blassification by statements* i* %alance sheet ratios ii* Hrofit and loss ratios iii* %alance sheet and profit and loss a.ay% o3 e@5re%%$ng rat$o%: The ratio may be e-pressed in either of following ways* • In 5ro5ort$on: "n this form amounts of 0 items are e-pressed in a common denomination* '*g* Burrent assets and Burrent liabilities < 0E1* • In rate or t$me or &o. analysis* 1(.e33$&$ent: $ere a 1uotient obtained by dividend one item by another item is ta/en as unit of e-pression* Nature o3 rat$o ana4y%$%: !atio analysis is techni1ue of analysis and interpretation of financial statements* "t is process of establishing and interpreting various ratio which can be calculated from in information given in financial statements.

Pro+e&t$on t)roug) rat$o%: The ratio analysis can also be used in ma/ing future pro5ections regarding various items of financial statement and thus preformed statement for this purpose* Karious ratios have to be calculated 1st on basis of past account data ta/ing in to account e-pected changes in near future. one as to interpret it* "t refers to putting ratio value in such analysis way that analysis layman understands it* =(.A Study on Inventory Management iii* !atios for shareholders ratio c* Blassification by importance i* Hrimary ratios ii* (econdary performance ratios iii* (econdary credit ratios 7(. financial statements of same firm*  !om5et$tor% rat$o%: That is ratios of some selected firms especially most progressive and successful competitor. these are ad5usted and transformed into standard ratios it re1uires a comprehensive /nowledge of ratio<calculation and great s/ill of reasoning.Inter5retat$on o3 rat$o: After classification and calculation of ratios. at same point in time*   Indu%try rat$o%: That is ratios of industry to which firm belongs* T$me %er$e% ana4y%$%: The earliest way to evaluate performance of firm is to compare its current ratio with past ratios* hen financial ratios over analysis period at time are compared it is /nown as time series 6trend7 analysis* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 40 . thin/ing and deducting* Standard% o3 rat$o% &om5ar$%on: The ratio analysis involves comparison for useful interpretations of financial statements* A single ratio itself doesn)t indicate favourable or unfavourable condition* "t should be compared with some standard* (tandard of comparison may consist of   Pa%t rat$oE That ratio calculated from past financial statements of same ban/* Pro+e&ted rat$o%: That is ratio developed using the pro5ected or Herforma.

turnover.A Study on Inventory Management  Per3orma ana4y%$%: (ometimes future ratios are used as standard of comparison* +uture ratios can be developed from pro5ected or Herforma statements*  !ro%% %e&t$on ana4y%$%: Another way of comparing ratios of a with some selected firms from same industry at same points of time* This type of comparison is /nown as cross section analysis* u$de4$ne% 3or u%e o3 rat$o%: The following guidelines or factors may be /ept in mind while interpreting various ratiosE       Accuracy of financial statements &b5ective or purpose of analysis (election of ratios 9se of standards Balibre of analyst !atios provide only analysis base Ut$4$ty o3 rat$o ana4y%$%: 'ach ratio has some specific utility or analysis particular use some general utility of ratio analysis may be summariGed as underE  Trends in cost. profit and other related facts are revealed by past ratio and future events can be forecasted on basis of such trends*  ‘"deal ratio) may be constructed and relationship found between strategic ratios can be used for achieving desired co<ordination*   !atios may be used as instrument of cost and sale control* !atios also facilitate the function of communication it can easily be conveyed through ratio* As what was happened during 0 intervening period*  "t helps in investment decision to ma/e profitable investment* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 41 .

A Study on Inventory Management Need o3 rat$o ana4y%$%: !atio analysis is power techni1ue. if any comes to /nowledge of management which helps in effective control of activities in firm*  Ot)er u%e%: There are so many other uses of ratio analysis* "t is an essential part of budgetary control and standard costing* !atios are of immense importance in assessing firm)s financial health* TYPES OF RATIO: The Types of !atios which are used for the analysis and interpretation of financial viability of $A3 areE LI2UIDITY RATIOS  Burrent ratio EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 42 .ord$nat$on: !atios even help in co<ordination which is of utmost importance ineffective management* %etter communication of efficiency and wea/ness of analysis firm results in better co<ordination*  In &ontro4: !atio analysis even helps in ma/ing effective control of business* (tandard ratio can be based upon Herforma statements and variance of deviations. if any can be found by comparing actual with standards so as to corrective action at right time* The wea/ness. ratio helps the firm to ta/e crucial decisions*  In &ommun$&at$on: The financial strength and wea/ness of a firm are communicated in analysis more easy and understandable manner by use of ratios* The information contained in financial reports is conveyed in meaningful manner to one for whom it is meant*  In &o.tools to determine efficiency with wor/ing capital is being used* "t also helps in evaluation of firm and performance of firm*  In 3$nan&$a4 3ore&a%t$ngE with help of ratios relative to past profit and financial position* "t is possible to forecast financial position of firm*  In de&$%$on ma:$ng: %y analysis and interpreting financial data in firm statements.

A Study on Inventory Management  Quic/ ratio or Acid test ratio or 3i1uid ratio  Absolute li1uid ratio TURNO0ER RATIOS  "nventory turnover ratio  Debtor turnover ratio  +i-ed assets turnover ratio  Bapital turnover ratio  or/ing capital turnover ratio PROFITA-ILITY RATIOS  &perating ratio  '-pense ratio A* Bost of goods sold ratio %* Administrative ratio  Hroprietary ratio STATEMENT OF T#E PRO-LEM: !atios are usually used in manufacturing organiGation to evaluate the financial performance but the less studies have been conducted on firm)s financial performance using ratios* (o. the study is concerned with the ratio analysis to evaluate the growth at $A3* This study helps to /now various ratios applicable in firm through which financial position of the firm can be /nown* O-*E!TI0ES OF T#E STUDY: 'ach financial ratio in ratio analysis has a distinct ob5ective* The following are the ob5ectives of the study* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 43 .

process I procedure for getting financial information re1uired for the pro5ect wor/ >!atio analysis I "nterpretation? MET#OD OF DATA !OLLE!TION: Data is collected both by primary and secondary sources* 1* Pr$mary data: The data which are collected for first time 6originally7 are called primary data* These data are collected directly through interviews I discussion with officials of the firm* $ere primary data was collected from interaction I en1uiring various firms* 0* Se&ondary data: The data. are called secondary data* 6Aot original in character and second hand information7 $ere. net I operating profit* To /now about current assets and current liabilities) status in the firm* To /now cash li1uidity position I progress of the firm* S!OPE OF T#E STUDY: "n the study. secondary data is collected from firm)s past year)s records li/e financial statements and annual reports* Data is also obtained from various boo/s and websites for theoretical purposes* The 3 years financial statements of $A3* This includes %alance sheet I profit I loss account* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 44 . borrowings I profitability of the firm* RESEAR!# DESI N: "t involves finding out best tool. which have already been collected by someone else.A Study on Inventory Management  To study the financial asset and liability structure of the firm using ratio analysis as a tool    To study about profitability of the firm)s i*e* gross. ratio analysis is done with the help of financial data found in financial statements* Those statements will be summariGed to ma/e 1ualitative 5udgment about firm)s financial performance* The study is limited to the $A3* "t covers the asset and liabilities position of the firm* "t is important to analysis capital structure.

A Study on Inventory Management LIMITATIONS OF T#E STUDY: The following limitations are faced while carrying out the pro5ect study* Due to time limit researcher was not able to carry out research wor/ e-tensively and !atio analysis is done only by considering 3 years financial statements* (o it gives only short period financial picture of the firm* Thus it was not possible to /now long period financial position of the firm*    The analysis can)t be generaliGed for the other branches of firm* @ethodological assumptions made in case study does not always hold good* +inancial statement may be sub5ected are sub5ect to window dressing* Thus it is difficult to correct and accurate financial I profitability position*  !atios have to be interpreted I different people may interpret the same ratios in different ways* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 45 .

usually one year* 3i1uidity ratios are generally based on the relationship between current assets 6the sources for meeting short term obligations7 and current liabilities* The important li1uidity ratios areE current ratio.A Study on Inventory Management L$Gu$d$ty Rat$o%: 3i1uidity refers to the ability of a firm to meet its obligations in the short<run. acid<test ratio and cash ratio* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 46 .

.=I "??I. !urrent 4$aA$4$t$e% TaA4e no: 1 Amount $n 4a:)% Part$&u4ar%<year% !urrent A%%et% !urrent L$aA$4$ty !urrent Rat$o "??8...... it was 1*8.11 0F0:6*80 13F11*03 1.6F*88 1.?D 10.0*.......!urrent Rat$o: This is most widely used ratio to /now the wor/ing capital position* This ratio e-presses the relationship between current assets and current liabilities* This ratio gives the information about firm ability to meet short term and long term wor/ing capital !urrent a%%et% !urrent Rat$oH . .in the year 000.936*3: 1.== "??D. in the year 0010<11 it was 1*99 and in the year 0011<10 it was 1*90* ra5) no: 1 EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 47 .A Study on Inventory Management 1.D? ANALYSIS.1" 3969F*F0 0093F*81 1.1? 1F9....in the year 0009<10 it was 1*3F.....?I .. The above table shows that current ratio in $A3* "n the year 000F<0..DD "?11....F10*39 :..<09 it was 1*88.....78 "?1?.0 13199*F0 1..89*0..

2u$&: Rat$o: EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 48 . it is maintaining ideal ratio* ". to 0011<10* The ratios show the firm)s commitment to meet its short term liabilities* #enerally 0E1 is considered as ideal for a concern* "f the ratio is less than 0 the firm may face difficult in payment of current liabilities* (ince ratios of the company are close to 0.A Study on Inventory Management Inter5retat$on: +rom the above table and graph we can observe the current ratios from 000F<0.

. the above table shows that the 1uic/ ratio in $A3* "n the year 000F<0. Inventory A&$d te%t Rat$oH .DDC "??D.?I 8960*90 :..DD? "?1?...936*3: ?. in the year 0009<10 it was 0*990.9:*F6 ........<09 it was 0*99:.6F*88 ?.... !urrent 4$aA$4$t$e% TaA4e no: " Amount $n4a:)% Part$&u4ar%<year% 2u$&: a%%et !urrent 4$aA$4$ty 2u$&: Rat$o "??8. in year 0010<11 it was 1*60 and in the year 0011<10 it was 1*60* ra5) no: " EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 49 . it was 0*. in the year 000..... Quic/ asset include all current assets e-cept inventories or stoc/s and prepaid e-penses* Quic/ liabilities include all current liabilities e-cept ban/ overdraft and cash credit* !urrent A%%et%...1? 130F9*39 13199*F0 ?.........A Study on Inventory Management 3i1uid ratios e-press the relationship between li1uid assets and li1uid liabilities* The ideal ratio for a concern is 1E1* This ratio is measure repayment of immediate liabilities ..1" 33..?D .3:*80 0093F*81 1..8:.B" ANALYSIS.I=C "??I...B" "?11....11 0000F*F0 13F11*03 1....

8: in the year 000F<0. the 1uic/ ratio of last five years is showing increasing trend.5 1 QUICKRATIO S E M I T F O N 0.. the li1uidity position of the company is favourable* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 50 .5 0 2007=08 2008=09 2009=10 YE ARS 2010=11 2011=12 Inter5retat$on: The above graph clearly specifies that $A3.A Study on Inventory Management 2 1. but increased 1*60 in the year 0011<10* "t shows the substantial increase in current assets in these year. it was 0*.

1" 1....?= "??I..0 :.936*3: ?..?B "?1?.....BB "?11. !urrent 4$aA$4$t$e% TaA4e no: 7 Amount $n La:)% Part$&u4ar%<year% !a%) !urrent L$aA$4$ty !a%) Rat$o "??8.. they may be included in the computation of cash ratio* !a%) !a%) Rat$oH ... since cash is the most li1uid assets.II ANALYSIS The above table shows that the cash ratio* "n the year 000F<0.< 09 it was 0*0..?I "??D.. it was 0*08.?I 081*...6F*88 ?.. in the year 0010<11 it was 0*66 and in the year 0011<10 it was 0*.A Study on Inventory Management 7.. a financial analyst may e-amine cash ratio and its e1uivalent to current liabilities* Trade investments or mar/etable securities are e1uivalent of cash2 therefore. in the year 000...* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 51 . in the year 0009<10 it was 0*06.3:3*90 0093F*81 ?.11 9096*10 13F11*03 ?.......?D F8:*F1 .. !a%) Rat$o: "t is ratio of cash e1uivalent balance to current liability it can be calculated....1? F88*:3 13199*F0 ?.

0 la/hs in 000F<0. to 1.A Study on Inventory Management ra5) no: 7 Inter5retat$on: +rom the above table it is clear that the company is very good* The cash maintenance of the company is increasing year by year from 081*.3:3*90 la/hs in 00011<10* #ood cash position of the company helpful to meet the e-penses of the company* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 52 .

*80 ?..short term loans. +inancial leverage refers to the use of debt finance* hile debt capital is a cheaper source of finance.?" "?11..3F6*3: ?..eGu$ty rat$oH .. EGu$ty TaA4e no: = Amount $n4a:)% Part$&u4ar%<year% DeAt EGu$ty DeAt EGu$ty rat$o "??8.1? 1098*F6 1. reserve and surplus.DeAt EGu$ty rat$o: Debt e1uity measures the ratio of long term or total debt to share holder)s e1uity* The relationship between borrowed funds and owner)s capital is popular measure of the long term financial solvency of a firm* Debt includes 3ong.?8 "?1?.?I 1000*00 ..A Study on Inventory Management Long term %o4ven&y rat$o:. it is also a ris/ier source of finance* 3everage ratios help in assessing the ris/ arising from the use of debt capital* Two types of ratios are commonly used to analyGe financial leverage2 structural ratios and coverage ratios* (tructural ratios are based on the proportions of debt and e1uity in the financial structure of the firm* The important structural ratios areE debt<e1uity ratios and debt asset ratio* 1. '1uity includes '1uity capital..c and miscellaneous e-penses* DeAt DeAt. preference capital..F:.?D F01*86 18338*:0 ?...1= "??I...?? ANALYSIS EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 53 .. accumulated funds minus debit balance of HI3 a... etc.. debentures...8::*0F ?.11 :81*F0 0..1" <<<<<<< 36199*81 ?.?C "??D. bills...

in the year 0009<10 it was 0*0F. in the year 0010<11 it was 0*00 and in the year 0011<10 it was 0*00* ra5) no: = Inter5retat$on +rom the above table we can see that the ratio is year by year is decease by 000F<0. to 0011< 10 is ratio is 0*18 to 0*00 last year is long term debt is not there* (o the company avoide barrowed or loan funds and it proper used available owner capital funds in the company* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 54 . in the year 000.<09 it was 0*0:. it was 0*18.A Study on Inventory Management The above table shows that the debt e1uity ratio in the year 000F<0.

. The above table shows debt to asset ratio in the year 000F<0. in the year 0009<10 it was 0*08.....1? 1098*F6 38:90*..?7 "??D.?1 "?11. in the year 000.?I 1000*00 16060*93 ?.A Study on Inventory Management ".<09 it was 0*03. in the year 0010<11 it was 0*01 and in the year 0011<10 it was 0*00* "??8..?= "?1?. A%%et TaA4e no: C Amount $n 4a:)% Part$&u4ar%<year% DeAt A%%et DeAt to a%%et rat$o ANALYSIS...08*33 ?.... DeAt to a%%et rat$o: The debt to asset ratio measures the e-tent to which borrowed funds supports the firm)s assets Meanin+E Debt ratio may be used to analyGe the long term solvency of a firm* The firm may be interested in /nowing the proportion of interest bearing debt in capital structure* Total debt includes long term and short term borrowing* DeAt DeAt to a%%et rat$oH ...?? EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 55 ...1 ?. it was 0*0F......11 :81*F0 88F9:*88 ?....1" <<<<<<< :9.?D F01*86 08919*80 ?...?8 "??I...

A Study on Inventory Management ra5) no: C Inter5retat$on The higher the ratio. the greater ris/ will be associated with the firm operation* "n addition. high debt to asset ratio may be indicates low barrowing capacity of a firm. which in turn will lower the firm financial fle-ibility* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 56 .

Tota4 a%%et T'1uity U (hare Bapital V !eserve I (urplus* TaA4e no: B Amount $n 4a:)% Part$&u4ar%<year% EGu$ty Tota4 A%%et Pro5r$etary Rat$o AAA3C("(* The above table shows proprietary ratio in the year 000F<0.Pro5r$etary Rat$o: Hroprietary ratio is the ratio which e-penses the relationship between net worth or e1uity and total assets* "t establishes relationship between the proprietary or shareholders funds and EGu$ty Pro5r$etary Rat$oH JJJJJJJJ.?D 1:0F1*80 08919*80 ?.BB "?11.1 ?. in the year 0009<10 it was 0*:9.1? 000:0*80 38:90*.1" 36809*:0 :9.B1 total tangible assets* The higher the ratio the better performance* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 57 .B? "??D.CD "??I. in the year 000.11 09:3F*00 88F9:*88 ?. 16060*93 ?. it was 0*:9.08*33 ?. in the year 0010<11 it was 0*66 and in the year 0011<10 it was 0*61* "??8.CD "?1?.<09 it was 0*60.?I 9860*6.A Study on Inventory Management 7.

A Study on Inventory Management ra5) no: B Inter5retat$on +rom the above table we can see that the ratio is fluctuated year by year in 000F<0. it increase in the year 0010<11and it decrease in 0011<10 so company Total assets is good* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 58 . to 0009< 10 the ratio is 0*:9 to 0*:9.

in the year 000.A Study on Inventory Management =. is called fi-ed asset to net worth ratio* +i-ed assetUnet bloc/ V capital calculated as followsE "H This ratio can be F$@ed A%%et% 'Net -4o&:( FA to Net . Net ?. which establishes the relationship between fi-ed assets and shareholders fund.=8 "??D.F*09 36809*:0 ?.1" 1..CD "??I.<09 it was 0*8F. The above table shows fi-ed asset to net worth ratio in the year 000F<0. in the year 0010<11 it was 0*83 and the year 0011<10 it was 0*:0* "??8.?D F1F:*0.== Amount $n 4a:)% "?1?.C? EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 59 .0. 1:0F1*80 ?.11 10F96*3F 09:3F*00 ?.F*F0 9860*6.=7 "?11.1? .80*:0 000:0*80 ?.?I :0.F$@ed A%%et to Net 9ort) Rat$o: The ratio. it was 0*:9.ort) Rat$oH JJJJJJJJJJJJ S)are )o4der% 3und TaA4e no: 8 Part$&u4ar%<year% F$@ed A%%et S)are)o4der% 3und F$@ed A%%et% to 9ort) Rat$o ANALYSIS. in the year 0009<10 it was 0*88.

A Study on Inventory Management ra5) no: 8 Inter5retat$on +rom the above table we can see that the ratio is decreasing year which was 0*:9 in 000F<0. to 0*83 in up to 0010<11* And increasing is 0*83 in 0010<11 to *:0 in 0011<10* Therefore here the ratio is good* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 60 .

* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 61 .F10*39 "??I.IC "??D.0 000:0*80 ?.?D 10. it was 0*90.89*0.?I S)are )o4der% 3und 9860*6.1? 1F9.D" 9ort) rat$o ANALYSIS. 1:0F1*80 ?. in the year 0009<10 it was 0*.ort) Rat$o H JJJJJJJJJJ S)are )o4der% 3und TaA4e: I Amount $n 4a:)% Part$&u4ar%<year% !urrent A%%et% "??8. in the year 000.0 36809*:0 1.D" "?11.:. in the year 0010<11 it was 0*90 and in the year 0011<10 it was 1*0.<09 it was 0*.9. !urrent A%%et% to net ?.A Study on Inventory Management C.?I .11 0F0:6*80 09:3F*00 ?.Rat$o o3 !urrent A%%et% to Net 9ort) Rat$o: The ratio which establishes the relationship between current assets and share holder)s funds is called ratio of current assets to net worth ratio* !urrent A%%et% !A to Net .1" 3969F*. The above table shows current asset net worth ratio in the year 000F<0.0*.ID "?1?.

<09* And increasing is 0*.<09 to 1*0.: in 000. to 0*.: in 000. in up to 0011<10* The ratio was good in 0011<10* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 62 .A Study on Inventory Management ra5) no: I Inter5retat$on +rom the above table we can see that the ratio is decreasing year which was 0*90 in 000F<0.

I1 "??I.0:9*F.?I Sa4e% 1.Inventory Turnover rat$o: "t is the ratio of which indicates the number of times the stoc/ is turnover i*e*."= "??D. B.?= "?11. it is the ratio between the cost of goods sold and closing stoc/* Sa4e% Sto&: turnover rat$o H TaA4e no: D Amount $n 4a:)% Part$&u4ar%<year% "??8.7D JJJJJJJJJ. Activity ratio are concerned with measuring the efficiency in assets management.11 303:1*3: :00.<09 it was :*08. in the year 0009<10 it was 8*:0. !4o%$ng Inventory Inventory turnover rat$o ANALYSIS The above table shows inventory turnover ratio in the year 000F<0. !4o%$ng Inventory EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 63 .1? 00168*18 8903*81 =.C" "?1?. there are various types of activity ratio* 1. it measures how 1uic/ly a firm converts non<cash asset to cash asset 6sales7* The greater is the rate of turn over or conversion the more efficient is the utiliGation of assets.1.*6. in the year 0010<11 it was 6*08 and in the year 0011<10 it was :*3 3F89*8F =. it was 8*.1" 31600*F9 :. sold during the year* "n other words.?D 00F1:*60 39:3*30 C.A Study on Inventory Management ". other things being e1ual* +or this reason such ratio is also designated as turnover ratio* "t may be defined as the test of relationship between sales and various assets of firm* Depending on the various types of assets. in tht year 000.60*80 C.1" A&t$v$ty Rat$o:.

and it may be the causes of recession period so inventory turnover ratio increased in 0010<11 and it was decreased in 0011<10* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 64 .A Study on Inventory Management ra5) no: D Inter5retat$on: The high inventory turnover ratio will show in the good inventory management. and low inventory implies e-cessive level than warranted by production and sales activity in 0010<11 inventory turnover ratio of $A3 was good but it has been decreased in 0011<10* The company production is high so may be the cause of for the less turnover ratio.

.. in the year 000. ?.1" 0380*06 0...9*6.<09 1*0F.Ra9 mater$a4 turnover rat$o: The ratio which establishes the relationship between !aw materials consumed and average of raw material is called ratio of raw material turnover ratio* Ra9 mater$a4 &on%umed RMTRH.....*:6 1.99*9: ?.?I 1:. ra9 1:36*06 1."7 "?1?.. it was 1*03....."8 "??D....A Study on Inventory Management "......0*0...?7 "??I.11 1993*08 01..1? 1. 130:*00 1... in the year 0009<10 it was 1*03.?D 16. in the year 0010<11 it was 0*91 and in the year 0011<10 it was 0*...D1 "?11....08*61 18...I1 mater$a4 Ra9 mater$a4 turnover rat$o ANALYSIS. Average %to&: o3 ra9 mater$a4 TaA4e no: 1? Amount $n4a:)% Part$&u4ar%<year% Ra9 mater$a4 &on%umed Average %to&: o3 "??8...8*9... The above table shows raw material tuanover ratio in the year 000F<0...1* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 65 ..

5 1 0.A Study on Inventory Management ra5) no: 1? 1.1 this ratio.<09 that is 1*0F and lowest in the year 0011<10 at 0*.5 0 RAW MATERIALTURNOVERRATIO S E M I T F O N 2007=08 2008=09 2009=10 YE ARS 2010=11 2011=12 Inter5retat$on: The raw matireal turnover ratio was highest dooring 000. throughout the period of study showed fluctuating trend* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 66 .

.1? 00168*18 . F$@ed a%%et% 'Net -4o&:( TaA4e no: 11 Amount $n4a:)% Part$&u4ar%<year% "??8. it was 3*81.78 "?11..?I Sa4e% F$@ed a%%et% F$@ed 1. :0.F*F0 "??I....A Study on Inventory Management 7.... "....F*09 1..D? "??D.F$@ed a%%et turnover rat$o: This ratio measures sales per rupee of investment in fi-ed assets* Sa4e% FA Turnover Rat$oH .<09 it was 0*90..80*:0 "... The above table shows fi-ed asset turnover ratio in the year 000F<0....0:9*F....8C a%%et 7. in the year 0009<10 it was 0*:1.....?D 00F1:*60 F1:0*0.0...C1 "?1?...=1 turnover rat$o ANALYSIS.....11 303:1*3: 10F96*3F "... in the year 0010<11 it was 0*3F and in the in the year 00011<10 it was 1*F:* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 67 .1" 31600*F9 1.. in the year 000.

to 1*F: in 0011<10* "t indicates under utiliGation of fi-ed assets* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 68 .A Study on Inventory Management ra5) no: 11 Inter5retat$on: +rom the above table we can see that the ratio is decreasing year by year which were 3*81 in 000F<0.

..7C EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 69 .or:$ng turnover rat$o ANALYSIS. The above table shows wor/ing capital turnover ratio in the year 000F<0..* "??8.BI &a5$ta4 B.... =.. it was 6*3:...B7 "?1?.... in the year 000..3*0.!TRH .?I 1......11 303:1*3: 13:8:*3F "."D "??D.A Study on Inventory Management =.0:9*F.or:$ng &a5$ta4 turnover rat$o: or/ing capital of a concern is directly related to sales this ratio measures the efficiency with which wor/ing capital is being used by a company* "t can be defined as Net %a4e% .80*9: "??I.in the year 0009<10 it was 8*63. in the year 0010<11 it was 0*08 and in the year 0011<10 it was 1*6... 0..?D 00F1:*60 3910*F3 C...."= "?11..F60*39 1... Net 9or:$ng &a5$ta4 TaA4e no: 1" Amount $n 4a:)% Part$&u4ar%<year% Net %a4e% Net 9or:$ng &a5$ta4 ..1? 00168*18 8F.<09 it was :*09..1" 31600*F9 1.

A Study on Inventory Management ra5) no: 1" Inter5retat$on: The inventory to wor/ing capital turnover ratio show)s. is utilising a good inventory with less utilising of wor/ing capital* "n $A3 it was high in the year 000F<0. how the company utilising the inventory with using the wor/ing capital* This ratio should be less than it shows the company. so it shows that the company using low wor/ing capital for the utilisation of inventory* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 70 . in 0011<10.. but it was 1*6.

.F10*39 a%%et "...89*0.."7 "?1?. in the year 0009<10 it was 1*03.0 ?.1? 00168*18 1F9.?8 "??I....0:9*F....?D 00F1:*60 10.0 1.!urrent a%%et turnover rat$o: "f the ratio is high then it indicates the firm is in good position* "t shows the over or under trading position is relation to the 1uantum of wor/ing capital* Net sales !A Turnover Rat$o H .A Study on Inventory Management 5.?I 1. !urrent a%%et% TaA4e no: 17 Amount $n4a:)% Part$&u4ar%<year% Net %a4e% !urrent a%%et% !urrent turnover rat$o ANALYSIS.. in the year 000..<09 it was 1*61.0*. 1.B1 "??D. .1" 31600*F9 3969F*. The above table shows current turnover ratio in year 000F<0.I? EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 71 ... in the year 0010<11 it was 1*11 and in the year 0011<10 it was 0*..11 303:1*3: 0F0:6*80 1.0* "??8.....11 "?11. it was 0*0F.

A Study on Inventory Management ra5) no: 17 Inter5retat$on: +rom the above table we can see that the ratio is decreasing year by year which were 0*0F in 000F<0. to 0*.0 in 0011<10* A decrease in the ratio is a good indication of the performance of the company* (ince the ratio is decreasing every year it shows ability of the company to realiGe from debtors and less amount of money is bloc/ed in inventories* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 72 .

.<09 it was 1*61. in the year 0010<11 it was 0*FF and in the year 001<10 it was 0*61* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 73 . in the year 0009<10 it was 0*F8...1? 00168*18 09F:6*10 ?. 18186*96 1. 1.0:9*F..8= "?1?...*00 ?......?D 00F1:*60 00:91*1..Tota4 a%%et turnover rat$o: Total assets turnover ratio is the ratio between total assets and turnover or sales i*e*. net sales* Total asset turnover ratio can be defined asE Net %a4e% TA Turnover rat$oH .11 303:1*3: 39:06*.."I "??I..B1 ANALYSIS... Average Tota4 A%%et TaA4e no: 1= Amount in la/hs Part$&u4ar%<year% Net %a4e% Average TA TA turnover rat$o "??8..?I 1.0 ?........ it was 1*0. in the year 000. The above table shows totsl asset turnover ratio in the year 000F<0.........A Study on Inventory Management B..?1 "??D.88 "?11.1" 31600*F9 :1..

in other words it indicates that there is efficient management of inventory in the company* +rom the above table we can see that the ratio is decreasing by 000F<0. to 0*F8. to 0009<10 is 1*0. and 0011<10 decrease by 0*FF to 0*61 Bompany total assets is high* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 74 .A Study on Inventory Management ra5) no: 1= Inter5retat$on: The inventory to total asset ratio depicts decrease in the ratio which indicates that the amount of fund loc/ed up as inventory in total asset. 0010<11 is increasing by 0*F8 to 0*FF.

inventory turnover ratios. for physical verification of goods they follow the >A%B analysis?*  The method of valuation is done on the basis of > eighted Average Bost method?*  The inventory turnover ratio has increased over the years up to 000F<0. activities processed by stores managers.FINDIN S AND SU Summary o3 3$nd$ng% ESTIONS: The study inventory management with respect to $elicopter @!& Division has been carried with ob5ectives of Different categories of inventories. etc* @y study reveals the following findingsE  "n $'3"BAHT&! @!& D"K"("&A.A Study on Inventory Management ". after which there is a little decrease in the subse1uent years* The investment is high for the reason the production plan has varied for being a concurrent design and production of EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 75 . inventory control techni1ues.

which shows the company)s effective utiliGation of cash* %ut from the year 000F<0. to 0011<10 the inventory to current assets ratio goes on decreasing this shows ultimate of inventory to cash* The average investment being high inventories. the company was having better inventory management in the years  "ncrease in the inventory intern indicates to current assets ratio variation. which are. re1uires for production. the design and problem in production to be turned for better utiliGation of resources* Sugge%t$on:  The days of inventory holding should be reduced to avoid unnecessary bloc/ through the analysis of future demand to the product of the company*  To avoid unnecessary labour*  To "mprove Bomputer Technology* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 76 .A Study on Inventory Management $elicopter first time in "ndia* The inventory is high2 the lead<time varies fom 1 month to 08 month*  The average inventory period ratio shows that higher the turnover ratio and shorter the inventory period is better the inventory management* According to this.

A Study on Inventory Management 7. @!& division. procurement.!ON!LUSION "nventory management has so far been loo/ed at as the driving seat of the financial manager* %y studying the inventory management in $A3. @!& division. affordable and can be even improved in order to have more profit for further period* EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 77 . the use of "nventory is efficient. mar/eting and services get ultimately interrupted by the final implication of the management of wor/ing capital and its segment* The efficiency in the use of wor/ing capital happens to be the most important condition for the running of the business so as to earn ade1uate profit* "n $A3. one can /now the growth aspects of the company* All /inds of act in the operating field of production.

In lakhs) 71%t mar&) 71%t mar&) 71%t mar&) 71%t mar&) 71%t mar&) "??I SOUR!ES OF FUNDS: 1. S)are)o4der%6 Fund% (hare capital !eserves and surplus Tota4 096*00 9166*8.ANNE>URE: -ALAN!E S#EET FOR C YEARS: (Rs. 096*00 18FF:*00 1:0F1*80 096*00 199:6*00 000:0*80 096*00 09081*00 09:3F*00 096*00 36133*30 36809*:0 "??D "?1? "?11 "?1" EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 78 . 9860*6.A Study on Inventory Management ith the passage of time and improvement in technology. there is further scope for >A (T9DC &A "AK'AT&!C @AAA#'@'AT?* %y this " can conclude it has made up the complete effort in planning and ma/ing strategy to have the good will in the corporate world* =.

60*80 :1*10 1.109*68 F30*. FF6F*89 <<<<<<<<< 16610*01 169F1*80 :098*00 116FF*80 111.9.0 38:90*.1*11 6:0:*9.*0.3:3*90 3.F10*39 39:3*30 <<<<<<<<< F8:*F1 1:*9.3*0. Le%%: !urrent L$aA$4$t$e% and 5rov$%$on% Breditors Hrovisions Tota4 Net !urrent A%%et% 1308*33 8:63*11 :.31*8.8*99 3.08*33 Tota4 TOTAL ASSETS 16060*93 =..*6. 1:F0*:1 86.A Study on Inventory Management ".?8 :81*F0 <<<<<<<<< :81*F0 00.*93 00106*:3 3F89*8F <<<<<<<<< 081*.89*0. :108*:3 00:0*F: 8.0 :9.936*3: 3910*F3 3031*88 996.. F6*.9:*08 <<<<<<<<< 100F0*30 10.?1 'net( TOTAL APPLI!ATION OF FUNDS: 1.F*68 7"1BB.83*60 8F33*96 . 1009*9. L$aA$4$ty .6F*88 0.0 0F0:6*80 88F9:*88 :. 0900*03 10F.D7 1098*F6 <<<<<<<< 1098*F6 1339*91 ""II8.:*F0 1:088*F0 3969F*.C= <<<<<<<<<<<< <<<<<<<<<<< 06.Loan Fund (ecured loans 9nsecured loans Tota4 7.9*00 13F11*03 13:8:*3F :000*. :1:3*:1 138*01 0068*. . 9096*10 98*98 109:9*.0 <<<<<<<<< F::0*:8 9036*91 8110*3.1 :00. 13199*F0 8F.*9F 836.0*.*06 3F8*61 1F:39*08 1FF00*90 6139*F9 11:.09*16 11=I1.F*:1 7D118.80*9: 1FF. 08919*80 8903*81 6*08 F88*:3 16*10 10310*:0 1F9.Inve%tment% De3erred Ta@ A%%et Tota4 7. !urrent A%%et%1 Loan% and Advan&e% "nventories (undry Debtors Bash And %an/ %alances &ther Burrent Assets 3oans and Advances .*:9 F1:F*F6 .De3erred Ta@ 1000*00 9*9.0 1:*10 8F08*00 .F$@ed A%%et% #ross bloc/ 3essE Depreciation Net A4o&: Bapital wor/ in progress ".1 1:F36*6 0093F*81 1.138*0F0 10.F60*39 EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 79 .I" F01*86 <<<<<<<<<< F01*86 98F*0F 1B81D.

05 Hower and fuel 5041.35 1761.66 23356.A Study on Inventory Management CM$%&e44aneou% E@5end$ture <<<<<<<<< 6to the e-tent not written off or ad5usted7 Deferred revenue e-penditure TOTAL 10.62 381.95 2424.79 1684.6*33 11=I1.12 1866.83) 21048.19 13.45 7987..92 844.33 spares 2254. E@5end$ture Bonsumption of 18059.0*13 7"1BB.85 2376. 1B81D.10 2509.68 (48.28 9.68 1346.77 1955.30 5744.79 '-penses relating to employees &ther e-penses of 1050.02 EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 80 .85 Ended 31st March 2012 31602.30 2219.58 34132.?1 <<<<<<<<< Pro3$t and 4o%% a&&ount 3or C year%: 'R%.83 1177.14 361. In 4a:)%( Part$&u4ar% For Year Ended 31 March 2008 st The For Year The st For Year The st For Year The st For Year The Ended 31 March 2009 20715.87 3766.77 6636.47 Ended 31 March 2010 22164.26 Ended 31 March 2011 30351.77 1186.71 3025.?8 10.C= 030*09 7D118. ""II8.34 5.12 107.54 7.12 administration (elling and distribution e-penses 5.64 19436.46 830.96 7089.06 2282.25 stores and 2483.I" F36*. IN!OME (ales &ther income Accretion of stoc/ Tota4 1.38 32219.08 4060.78 198.29 1.D7 1893*9.

83 60.63 0.3 charges +inancial charges Hrovision for losses and write<off Donations Depreciation on fi-ed assets Deferred revenue e-penditure written<off @iscellaneous written<off Tota4 e-penditure EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 81 .72 477.88 19.00 174.48 265.59 58.21 ---------17816.52 128.12 508.42 845.05 12052.39 497.83 59.45 26.54 ---------18736.A Study on Inventory Management @anagement and direction 21.94 308.21 177.08 72.45 445.73 19.88 12.18 885.46 59.78 12752.19 -----12854.73 36.88 300.00 769.55 630.26 301.74 432.26 34.79 ------14827.82 36.

B8 AddE Hrofit brought forward 0680*F8 Amount available for F0..D" :FF0*.D8 930:*9F 13*01 the year 019*66 "D=D.BB after 8838*18 ta-ation Aet income pertaining to prior 9*:3 period.0 C888... 096*00 :0*38 03083*03 1:80*00 <<<<<<< . 18803*:9 1:39:*98 0F30*00 <<<<<<<<< <<<<<<<< <<<<<<<< 00:1*03 <<<<<<<<< 33*FF <<<<<<< 13F*90 "="". 30019*10 dividend Hroposed dividend on e1uity 88*83 shares Borporate ta..c estimates and e-traordinary items Net Pro3$t ===7. A55ro5r$at$on Transferred to general reserve F3:*00 "nterim dividend on e1uity 88*83 shares Borporate taon interim :*.7D 1:09. 08.0 6*60 0::0*00 <<<<<<< 19*01 1*0..*3.0 ta-ation Ta@ 5rov$%$on% '$n&ome ta@(: Burrent &n Bompleted Assessments +ringe benefits ealth TaDeferred Tota4 Hrofit for ......39*:F D71D.... change in A. :90*81 100*6... 096*00 :0*38 1:09.=" 61..BI 109FF*0: 16:08*F3 DC=1..A Study on Inventory Management "..*10 00*FF 109FF*06 .. 0*93 3F3*0F =ICI. 390*... 18.3*.=7 9:8:*16 63*FF7 :100*00 8:1*09 30*00 1*13 :0:*:: B?ID.on proposed 6*03 dividend %alance carried to balance 608..00*00 <<<<< . Pro3$t Hrofit for the year before F3..*19 18:0*00 <<<<<<<< ...*1..*:1 1196:*93 CC"8..60*00 <<<<<<< .D8 ::6:*81 63F*F37 8800*00 63*9: 00*8.8*81 appropriation 7.193*F8 ...1I 03133*01 308:0*19 .. "DB".:0..*:0 sheet -I-LIO RAP#Y:  $A3 websiteE www*hal<india*com  +inancial @anagement %oo/ E "*@* Handey EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 82 .

A Study on Inventory Management  $A3 Annual !eports  Hro5ect boo/s maintained in division /00<%:  @ C J$AA and H J =A"A<+"AAAB"A3 @AAA#'@'AT*  Tata @c#raw<$ill Hublishing Bompany limited. Aew Delhi  H!A(AAAA B$AAD!A<+"AAAB"A3 @AAA#'@'AT  Tata @c#raw<$ill Hublishing Bompany limited. Aew Delhi !OMPANY REPORTS: B&@HAAC AAA9A3 !'H&!T +&! T$' C'A! 0010<11*  EAST WEST INSTITUTION OF TECHNOLOGY BANGALORE Page 83 .