A

Project Report
On

A STUDY ON INVENTORY MANAGEMENT AT DEVPARBATI

FOODS LIMITED
BY
MS.BHAVANA VISHWAS AVHAD

Submitted to

SAVITRIBAI PUNE PHULE UNIVERSITY

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Speciaisation
Operations & Supply Chain Management
Academic Year
2021-22

Under the guidance of

Dr. AARTI T.
MORE
Associate professor

Department of MBA
Matoshri College of Management
Eklahare, Nashik

1
 DECLARATION

I here by declare that the information I have gathered during the period of field
work report I have collected all these information is correctly in this particular
period, which is to be completed as per rules of the Savitribai Phule Pune University
for the time MBA-II course that I am pursuing at the Matoshri College of
Management Nasik.

I honestly express that the formation is not collected with any commercial
intention and motivation. The sole motive is to study the INVENTORY
MANAGEMENT practice and prepares fieldwork. Thus the sole object of collecting
information is of academic purpose and I sure that collected information is of
academic purpose shall be only for fieldwork report and nothing else.

Matoshri College of Management Signature of the

student
Nashik

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 ACKNOWLEDGEMENT

I am extremely thankful to Mr.of Devparbati Foods, Nasik for giving me a

golden chance to complete this project and guiding me by giving valuable suggestions
at all stages.
I am grateful to our guide Dr. Aarti More Mam (Collage Guide) for his
able guidance in systematic and successful completion of the project.
I also specially thanks to all staff of Devparbati Foods for giving me the
opportunity to do the project work and also for his extended co-operation to make this
project a success.

I sincerely thank those all who helped me to complete the project.

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 INDEX

Chapter Page
Contents
No. No
1 INTRODUCTION 05-07
1.1 Exeutive Summary 05
1.2 Introduction (Selection of topic) 05
1.3 Problem Statement 06
1.4 Objectives of the study 07
1.5 Scope of the study 07
1.6 Rationale/contribution of the study 07
1.7 Limitations of the study 07
2 PROFILE OF THE ORGANIZATION 08-11
2.1 History and general information 08
2.2 Organisational Structure 08
2.3 Range of Products 09
3 RESEARCH METHODOLOGY 12
3.1 Method of Study 12
3.2 Data Collection 12
4 REVIEW OF LITERATURE 13-29
4.1 Meaning and Concept of the Topic 13
4.2 Basic Theories of the topic 14
4.3 Inventory Management And Control Techniques 17
5 DATA INTERPRETATION 30-44
6 FINDINGS 45
7 SUGGESTIONS 46
8 CONCLUSIONS 47

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 ANNEXURE/APPENDICES
I) REFERENCES/BIBLIOGRAPHY 48
II) APPENDIX 49-53

CHAPTER 1. INTRODUCTION
1.1 EXCEUTIVE SUMMARY
The problem of competition is increasing in global market place. It has forced the
firms to consider ways of improving the inventory control system. Severe competition
makes it necessary to continuously introduce new products and new designs of products.
Now a day every company will face the competition, because of that every company
maintains a flexible inventory system. It will depend on how the company will respond to
the fast changing market needs, customer expectation and technological advancement. The
company will focus on improvements on the following measures: -
 The Inventory Level and work-in-progress Quality of the Product and technological
advancement
 Flexibility and responsiveness of the production process.
 To meet the increased demand of the product, it is necessary to increase the capacity
of existing construction facility.

1.2 INTRODUCTION
INVENTORY CONTROL SYSTEM
The necessity of effective inventory management is being increasingly realized in
industrial and non-industrial organization both in India and abroad. This realization has
come about because of increasing complexity of the task of managers and administrators. In
most organization, the problem of effective inventory control is now viewed as the most
critical problem with changes in social climate. While these can be great assets to the
organizations, they become problems if the organization is not able to manage inventory
properly.
Liquidity and profitability are the two vital aspects of corporate business. Any
business cannot run without these two. A firm may run without profits for sometime; but
with no liquidity, the firm cannot run their business. That is why management of inventory
is an integral part of corporate planning in business life.
The proper inventory control system leads to an optimum utilization of resources. Idle
materials are of a financial burden to the organization. Thus proper, inventory management
5
directly assists in efficient functioning of the company. S.L. Goel says "take INVENTORY
MANAGEMENT care of the forest, the tree will take care of itself, it should be the main
motto of an inventory controller.
In inventory management, various methods and techniques can be adopted to control
the inventory like, prompt maintenance of registrars, proper raw material arrangement, and
fixation of various control levels and application of inventory control techniques and bin
card system etc, which are relevant for inventory control in stores department.
Inventory management will help an organization in dealing with the supply of the
raw materials and other activity in order to achieve the maximum co-ordination and
optimum expenditure on materials to increase the profits of the firm. Devparbati foods
inventory control system is chosen for the study: by the investigator is no expectation in
view of growing significance of the efficient control of inventories. Hence, the researcher
was prompted to take up this topic..

1.3 PROBLEM STATEMENT

The problem selected to the analysis is "to study the effectiveness of inventory
control system" at Devparbati Foods The effectiveness of the prevailed inventory system is
analyzing simultaneously.The variation of the prices of raw materials are also analyzing
with their effects on the overall working of the unit.
The literary meaning of the word "Inventory" is stock of goods. Every enterprise
needs inventory for smooth running of its activities. It serves as a link between production
and distribution process. The unforeseen fluctuation in demand and supply of goods also
necessitates the need for inventory. It also provides a cushion for future price fluctuations.
The purpose of inventory management is to ensure availability of materials in
sufficient quality and quantity as and when required and also to minimize investment in
inventories. Thus it is very essential to have proper control and management of inventory.
Inventories play a vital role in operation of real estate's industry. The inventory ensures
operational smoothness. In almost all the organizations the substantial part of capital is
invested in inventories. Inventory refers to stock of products a firm that is for sale and also
the components that make up the product. Usually, inventories constitute a INVENTORY
MANAGEMENT major portion, about 60% of total current assets. Hence, management of
inventory becomes crucial to the successful management of overall working capital of a
business enterprise.

6
 The management of inventory is necessary for prevention of leakage, spoilage,
deterioration, obsolescence, wastage of materials. It aims at improving material handling,
saving in material cost, increased production and large profits. The inventory management
is a part of planning budget, which often falls within financial area. The financial manager
is playing an important role in determining the nature performance of inventories.

1.4 OBJECTIVES OF THE STUDY

1. To Study the Concept of stock management approach for a Production organisation

2. To Analyse various inventory models and its application

3. To Understand the mode of inventory management techniques

4. To Suggest appropriate measures for the efficient inventory management

1.5 SCOPE OF THE STUDY

The scope of the study is extended to materials department in particular and
purchases and stores department, in general further the study Assets Company. onfiner to
the Capital Land
This study was mainly concentrated on inventory management adopted by the company.
The mode of selecting of the vendors, managing the orders and further actions for satisfying
the requirement are analyzed.
The company's purchase procedure will influence more on the level of inventory of
the company. So the study of purchase has vital role to understand the efficient system of
the company.

1.6 RATIONALE/CONTRIBUTION OF THE STUDY

If the problems stated in the above are solved, then the company will have effective
inventory control system, which will reduce cost of holding inventory.
The company will get resistance against frequent changes in price levels of raw
materials. The company can develop effective purchase procedure mode, which reduces
time and can have good system of supplier selection to have good quality of materials at
reduced cost.

1.7 LIMITATIONS OF THE STUDY

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1. Devparbati Foods (India) Limited is a manufacturing company and produces
different types of food products
2. Devparbati Foods (India) Limited has huge market and hence huge tons should
be stored in advance.
3. Because of this they purchase raw materials monthly depending upon Demand
4. It charges high cost when we make orders monthly, in means of transport cost.
Storage cost, ordering cost, inventory charges, and other expenditures.
5. My conclusion is to make orders annually to avoid Unnecessary Expenditure.

CHAPTER 2 : PROFILE OF THE

ORGANIZATION

2.1: HISTORY AND GENERAL INFORMATION

2.1.1 Company Name: DEVPARBATI FOODS PVT Ltd.

2.1.2 Profile :
Owner Name: Mr. Saurabh Ramnath Vinchu
Address: Gat No 298/2, Chincholi, Nashik - 422102 (Near Pravara Rular Engineering
College)
Brand Name : Hare Krishna
Vision:
 To build long term relationship and ensure positive customer experience,
making available goods and services that are of top notch quality
2.1.3 Work Flow Model
1. Top level:

All the decisions are taken in this level.

2. Middle level:

All the Strategy is formed by this level.

3. Lower level:

All the strategy is executed by this level.

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2.2 ORGANIZATION STRUCTURE
Fig No.1 Organization Structure of Devparbati Foods
2.3 RANGE OF PRODUCTS
1) Krishna packaged mitha pan

2) Mukhwas

3) Sugar Candy

Owner
Mr.Saurabh Vinchu

Finanace Human Resource Sales and Marketing Production Head

Mrs. Monika head
Mr. Ajit pabal Mr. Subhash Gokhe Mr. Dinesh Ahire
Tupe

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 4) Packaged Paan range

Calcutta paan Chocolate paan

5) Sweetened Cherries

6) Tutty fruity

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7) Packaged Dry Fruits Range

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CHAPTER 3 : RESEARCH METHODOLOGY

3.1 METHOD OF STUDY:

The research was carried on by collecting data from web site of company which is
a secondary source of data. The data were collected from leading web sites which are
meant exclusively for tracking market data. The theoretical part explained in this project
was collected from text books written by famous authors who are well known for
their writing skills and who have an ocean of experience in the teaching field.

3.2 DATA COLLECTION

There are mainly two important sources through which the whole data is gathered.
1. Primary Data: The data of this project is collected by the information gathered
from integrated materials management.
2. Secondary Data : The secondary data is collected in this project is from the
various department of IMM and various manuals of the company with prescribed
format have also been made use of collection of data and analysis.

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CHAPTER 4 : REVIEW OF LITERATURE
4.1 MEANING AND CONCEPT
Several authors have defined the term inventory. The more popular of them are, the
term inventory includes Raw materials, work-in progress, finished packaging, spares and
others in order to meet an unexpected demand or distribution in the future.
It can be used to refer to the stock of raw materials unhand at particulars, goods in
process of manufacturing, finished products, merchandise, purchased for relate and others
like tangible assets measured and counted in connection with financial records and
accounting records, the reference may be the stock of goods owned by an enterprise at a
particular time.
Yet another definition is that the term includes the following categories of times. Production
inventories, MRO inventories, in process inventories and finished goods inventories.
Investment in stock is a necessary feature of manufacture if there should be continuous and
co-ordinate flow of work, towards which production planning is directed.
The extent to which stock investment is prudent must bear relationship to prevailing
economic conditions. So far affect the availability of the supply and price trends it is also
dependent to a large extent on the nature of the product concerned. It is often useful to
express the investment in stock in terms of its rate of annual turnover and this can vary
between wide extremes quite obviously it is impossible to down a yard stick against which
stock investment should be measured.
The importance of stock control arises from the demand which investment in stock
places upon the available liquid capital. It is of far wide significance from the point of cost
of reduction by virtue of the fact that stock can give rise to the following sources of cost.
1. Storage.
2. Handling.
3. Stock taking.
4. Physical determination & its prevention.
5. Pilfering.
6. Insurance.
7. Obsolescence.
8. Customer taste.
9. Price fluctuations.
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Product design and variety are major influence upon stocks determining as they do the
number of different items which is necessary to hold the solution to this aspects of the
problem may lie in a
greater degree of standardization and simplification in product design, the advantage of
which come readily apparent not only in this condition, but also throughout
production.Stock investment and the costs, which can be associated with it, May also; be
reduced as a result of:
1. Improved production planning.
2. Negotiation of forward contracts and scheduled delivery dates with suppliers.
3. The establishment of realistic maximum and minimum stock kevels for each item.
4. Reduced manufacturing cost.
5. Negotiation of preferential terms with suppliers.
6.Efficient stock records, regular stock keeping a perpetual or other bases and check upon
slow moving or absolute items.
4.1.1 The materials requirements can be classified as
1. Raw materials.
2. Components purchased from outside sources.
3. Complete saleable products purchased from outside sources.
The division between components products made by the business and those purchased
outside is normally laid down on the budget, although such plans may be subject to
amendment in respect of difficulties encounter when preparing the detailed schedules.
4.1.2 What are inventories?
Every one, be it a firm, or an establishment, or an individual, is familiar with the word stock
because each of these carry some items to meet their requirements. In trade and industry, the
word stock, is called inventories.

4.2 BASIC THEORIES OF THE TOPIC

4.2.1 Productivity Through Effective Material Management
An inventory converts raw material and other inputs into finished goods with the
help of MAN and MACHINE. The objective of industrial production is to manufacture
quality products at competitive cost so as to earn some profit. This would naturally demand
efficient use of manufacturing resources viz man, machine, money and material. Since it
counts for more that 50% of total money spent, Material Management has assumed

14
significant importance. It is known as effective measures such as close inventory control,
checkin wastage, skilful buying and cutting down cost save a lot of money and contributes
to productivity and to profit. at vari stages can save a lot of money and contributes to
productivity and to profit.

4.2.2 Inventory Planning and Control

There is another reason why inventories rise. Sometimes material is issued on shop
floor but not consumed. Thus, Material Management which treats issues as consumption,
believes the item is being consumed, whereas is, in fact, not so. The production department
needs to keep material management closely informed and whenever a material drawn from
stores is not likely to be used for a month or more, it should be returned to stores so that
stores stock levels accurately reflect the actual inventory position. The same applies raw
materials, which have been converted to work in-process inventory and not yet processed to
the final product.

4.2.3 Idle Inventory a National Problem

A major problem faced by most-rather all inventory holders, including the
housewives, is that of the idle inventory. A part of this inventory, either small or large.
always lies idle for long periods, and ultimately most of it has to be thrown as unusable or
scrap.

4.2.4 Poor Inventory Control

According to Walker, inventory control is not just a material management or
warehouse department issue. The purchasing, receiving, engineering, manufacturing and
accounting departments all contribute to the accuracy of the inventory methods and records.

4.2.5 Productivity Through Materials Budget

Materials budget should be prepared based on actual requirement as per
consumptions norms. Control measures should be introduced to see that expenditure should
match with the budget so prepared. This should be periodically checked for close control on
inflow of material. The delivery should be phased. The inventory ratio as per norms would
have to be maintained.

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4.2.6 Objectives of scientific inventory control system
 Service to the customers.
 Continuity of productive operations
 Effective use of capital
 Economy in purchasing
 Reduction of risk of loss
 Reduction of administrative workload
 Administrative simplicity
4.2.7 Why do we have inventories?
 To gain economy in purchasing
 To keep pace with changing market conditions
 To satisfy demand during period of replenishment
 To carry reserve stocks to avoid stock outs
 To stabilize production
 To prevent loss of sales
 To satisfy other business constraints

4.2.8 Historical Perspective of Inventory Management

The management and control of Inventory is a challenge to all organization in any
sector of the economy. The problem of Inventory does not confine them to profit making
big firms. The same type of problem is encounter by social and non-profit organization too.
Inventory problems have been encountered by every society, but it was not out until
the 20th century that the analytical techniques were developed to study them. The initial
impetus for analysis expectedly comes from manufacturing sector. It was until after World
War II that a concerted effort an risk and uncertainly aspects of inventory was made. In
theory, inventory is an area of organized operation that is well developed.
Material is a very important factor of production. It includes physical commodities
used to manufacture the final end product. It is the starting point from which the first
operation starts. It is inventories and does not get waste & exhaust (unless it is deteriorated)
with the passage of time as labour is wasted that it can be purchased on varying quantities
according to the requirements of firm where as often Clements of cost like labour and other
services cannot be easily varied once they are established. Materials account for nearly 60%
of cost of production as it is clear from an analysis of the financial statements of a larger

16
number of private and public sector organization. According to the Indian Association of
material marketing 64 paise in a rupee is spent on material by Indian Industries, 16 paise on
labour and the rest of one rupee is spent on overheads, thus the importance of material
control lies in the fact that any savings made in the cost of materials will go a long way in
reducing cost of the production and improving the profitability of a concern.
Studies by experts in this field have highlighted the fact that if an organization can
affect 5% saving in material cost, it would be as good as the increasing the production or
sales by about 36%.
Proper control of materials is necessary from the time orders for purchase of
materials is placed with suppliers until they have been consumed. The object of material
may be reduced in other words, efforts are to be made to reduce the cost material when it is
purchased, stored and used.
Inventory controls safeguard the assets of a firm, ensure the accuracy and reliability
of records, promote efficiency within an organization, and encourage management to adhere
to policies and procedures. The existence of good inventory controls reduces irregularities
in an account balances and results in efficient audits.
The Inventory Management system and the Inventory Control Process provides
information to efficiently manage the flow of materials, effectively utilize people and
equipment, coordinate internal activities and communicate with customers. Inventory
Management and the activities of Inventory Control do not make decisions or manage
operations they provide the information to managers who make more accurate and timely
decisions to manage their operations.

4.3 INVENTORY MANAGEMENT AND CONTROL TECHNIQUES

The literary meaning of the word "Inventory" is stock of goods. Every enterprise
needs inventory for smooth running of its activities. It serves as a link between production
and distribution process. The unforeseen fluctuation in demand and supply of goods also
necessitates the need for inventory. It also provides a cushion for future price fluctuations.
The purpose of inventory management is to ensure availability of materials in sufficient
quality and quantity as and when required and also to minimize investment in inventories.
Thus it is very essential to have proper control and management of inventory.

4.3.1 Meaning and Nature of Inventory

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 The literary meaning of the word "Inventory" is stock of goods. Inventory
constitutes the most significant part of current assets of a large majority of companies in
India. To understand the exact meaning of the word "Inventory" we must study it from the
usage side of the operations. Inventory includes the following things:
4.3.2 Types of Inventories
 Raw materials
 Work-in-process
 Finished goods
 Safety
 Normal
 Excessive
 Spares
4.3.3 Factors Influencing Inventory
 Lead time
 Cost of holding inventory
 Reorder Point
 Stock
 Variety Reduction
 Materials Planning
 Service Level
 Obsolete inventory and stock
 Quantity discount

4.3.4 Criteria for judging the inventory system

While the overall objective of the inventory system is to minimize the cost to the
firm at the risk level acceptable to management, the more proximate criteria for judging the
inventory system are:
1. Comprehensibility
Inventory systems range from the utterly simple to the weirdly complex. Irrespective of how
simple or complex a system is, regardless of whether it is automated or manual; it should
clearly understood by all affected parties. The system must be properly explained to all
concerned so that its purpose, logic and rationale are transparent. This generates enthusiasm

18
for the system and enhances its credibility. Otherwise it is likely to be perceived as a
mysterious "Black Box of dubious value.
2.Adaptability
The questions raised in this context are: Is the system responsive to change? Can new
products, new situations, and new requirements be handled by the system? A certain degree
of flexibility and adaptability must be designed into the system to make it versatile. Of
course this cannot be and this should not be carried too far. The system must not provide for
every possible and imaginable contingency. If it is developed with this ideal, it is likely to
be a complex monstrosity. Remember the caveat that the design of any system should
ordinarily take care of about 90 percent of the cases, leaving the balance 10 percent to be
handled by hand.
3. Timeliness
Inventories may suffer loss in value on account of variety of factors. The more common
sources of value decline are:
 Obsolescence caused by changes in technology and shifts in consumer taste.
 Physical deterioration with the passage of time.
 Price fluctuation because of inherent volatility of certain commodities.
 The inventory system should be capable of inducing timely action.
 It should provide adequate forewarning, which triggers appropriate corrective steps.

4.3.5 Tools and Techniques of Inventory Management

Effective inventory management requires an effective control system for inventories.
A proper inventory control solves the acute problem of liquidity but also increase profit and
causes substantial reduction in working capital of the concern.
The following are the important tools and techniques of inventory management and control.
 Determination of stock level.
 Determination of safety stocks.
 Selecting a proper system of ordering for inventory.
 Determination of Economic Order Quantity.
 ABC analysis.
 VED analysis.
 Inventory turnover ratio.
 Ageing schedule of inventories.

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  Classification and codification of inventories.
 Preparation of inventory reports.

1. ABC ANALYSIS
ABC analysis is a method of classifying items, events or activities according to their
relative importance. It is frequently used in inventory management where it is used to
classify stock items into groups based on the total annual expenditure for or total
stockholding cost of each item. Organizations can concentrate more detailed attention on the
high value / important items. Pareto analysis is used to arrive at this prioritization.
Taking inventory as an example, the first step in the analysis is to identify those
criteria, which make a significant level of control important for any item. Two possible
factors are the usage rate for an item and its unit value.
Close control is more important for fast moving items with a high unit value.
Conversely, for slow moving, low unit value items the cost of the stock control system may
exceed the benefits to be gained and simple methods of control should be substituted.
In most inventories a small proportion of items accounts for a very substantial usage
(in terms of monetary value of annual consumption) and a large proportion of items
accounts for a very small usage (in terms of monetary value of annual consumption). ABC
analysis, based on this empirical reality, advocates in essence a selective approach. to
inventory control, which calls for a greater concentration of effort on inventory items
accounting for the bulk of usage value. This approach calls for classifying inventories into
three broad categories, A. B. and C. Category A, representing the most important items,
generally consists of 15 to 25 percent of inventory items and accounts for 60 to 75 percent
of annual usage value. Category B. representing items of moderate importance, generally
consists of 20 to 30 percent of inventory items and accounts 20 to 30 percent of annual
usage value, Category C, representing items of least importance generally consists of 40 to
60 percent of inventory items and accounts for 10 to 15 percent of annual usage value.

Procedure
The following may be used for determining the three categories:
1. Rank the items of inventory, in descending order, on the basis of their annual
consumption value and number them I to n.
2. Record the running cumulative totals of annual consumption values and express them as
percentages of the total value of consumption.

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3. Express cach number in the list, 1 through n. as a percentage of n (these percentages are
actually cumulative percentages).
4. The cumulative percentages of consumption value against the cumulative percentages of
numbers and classify items into three broad categories: A. B and C. The nature of these
categories has been described earlier.
Factors Influencing Inventory Management & Control Several factors influence
Inventory management and control. The principal effects of these factors are reflected most
strongly in the levels of inventory and the degree of control planned in the inventory control
system. The factors include type of product, type of manufacture, volume of output and
others.
Type of product
Among the factors influencing inventory management & control the types of product
is fundamental. If the materials used in the manufacture of the product have a high unit
value when purchased, a much closer control is usually in order. If the material used in the
product is in short supply or is rationed by the Government, this may influence the purchase
of this material and its stock maintained.
The manufacture of standard products as compared to custom made items will
influence inventories, material needed to manufacture standard product is easy to obtain and
a close on the stock is not necessary. Material required to product made to order item needs
strict control to ensure to that. No item lost in the process of manufacture such materials and
tools are of special and expensive type and a loss of any small part will hold up the
production.

Need for Inventory Control

Increased specialization and sophisticated technology have brought with a range of
materials requirements the larger the range the greater the complexity & problems of
inventory problems of investment, procurement including imports lead time storage.
handling accounting shortages, stock outs deterioration & obsolescence.
The sales department wants a good stock of furnished products for ensuring
maximum customer service. The finance department may feel that inventories are locking
up capital, which should be earning a return thus each department although conscious of its
own cost, may be unable to see the total cost, it is therefore apparent than an integrated
approach for control the inventories is essential without proper control the inventories have

21
tendency to grow beyond economic limits, tie up funds and increase the cost of maintenance
or the carrying cost. At the same time non-availability of inventories involves the cost of
stock outs re-ordering cost and additional transit cost. The core of materials management is
inventory control.

4.3.6 Benefits of Inventory Management & Control

Proper management and control of inventories will result in the following benefits
to an organization.
1. Inventory control reinsures an adequate supply of materials, stores etc., Minimize stock
outs and storage and avoids costly interruption in operations.
2. It keeps down investment in inventories inventory carrying cost and obsolescence loses to
the minimum.
3. If facilities purchasing economics through the measurement of requirements on the basis
of recorded experience.
4. It eliminates duplications in ordering or in replenishing stocks by controlling the sources
from which purchase requisition emanate.
5. It provides a better utilization of available stocks by facilitating enter department transfer
within a company.
6. It provides a check against the loss of materials through carelessness or pilferage.
7. It facilitates cost accounting activities by providing a means for allocating material costs
to products, department or other operating accounts.
8. It enables management to make cost and consumption comparison between operations
and periods.
9. It serves as a means for the locations & disposition of inactive and obsolete items of
stores.

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10. Perpetual inventory values provide a constant and reliable basis for preparing financial
statements

4.3.7 Symptoms of Poor Management

Weakness in the planning and control of inventories are usually indicated by or
expressed in complaint about specific systems or conditions rather than as overall criticism
of the inventory.
Some Specific Frequently Encountered Symptoms
1. Periodic, severe backorders inability to meet delivery promises.
2. Continuously growing inventory quantities while the other backing is remaining constant
or is also growing.
3. High rate of customer turnover or order cancellations.
4. Uneven productions with frequent layout & rehiring.
5. Frequent need for uneconomical production runs to meet sales requirements.
6. Excessive machines down time because of material shortage.
7. Periodic lack of adequate storage spaces.
8. Consistently large inventory writes down because of price decline distress scales,
disposal of obsolete or slow moving stock.
9. Widely varying rates of inventory loss of turnover among branch ware houses of among
inventory items.
10. Consistently large write down of times of physical inventory taking.

4.3.8 Techniques of Inventory Control

Inventory control techniques are employed by the inventory control organization
within the framework of one of the basis inventory models viz, fixed order quantity system
or fixed order period system. Inventory control techniques represent the operational aspects
of inventory management and help realize the objectives of inventory management and
control.
Several techniques of inventory control are in use and depend on the convenience of
the firm to adopt any of the techniques what should be stressed, however is the needed to
cover all items of inventory and all stages, i.e. from the stage of receipt from suppliers to the
stage of their use the techniques most commonly used are the following:

1. Always better, control (ABC) classification.

23
2. High, medium and low (HTML) classification.
3. Vital essential and designable (VED) classification.
4. Scarce difficult and easy to obtain (SDE)
5. Fast-moving, slow moving and non-moving (FSN)
6. Economic order quantity (EOQ)
7. Maximum minimum system.
8. Two-bin system.
9. Materials requirements planning (MRP)
10. Just in time. (JIT)

4.3.9 Inventory Catalogue

Inventory catalogue is prepared after all inventory items have been described classified &
coded properly maintained inventory directory pays two important dividends. An inventory
catalogue serves, first as a medium of communication. It enables personnel located in many
different departments to perform their jobs more effectively. A second benefit produced by
an inventory catalogue accuses to the inventory. control operation staff. This benefit takes
the form of more complete and correct records through the reduction of duplicate records
identical parts.

Selective inventory control consists of the following types, which are shown, in table:

Sr Basis of classification Methods of selective inventory

No

1 Value of items consumed ABC analysis (always better control)

PPV (Proportional Parts Value)

2 The importance or critical VED analysis (Vital, Essential and Desirable)

3 Consumption of materials FSN analysis (Fast moving. Slow moving and

Normal or Non moving)
24
 4 Unit price of the materials HML analysis (High, Medium, Low)

5 Value of items in store XYZ analysis

6 Availability SDE analysis (Scarce, Difficult, Easy golf analysis)

SOS analysis (Seasonal, Off-seasonal)

Table No 4.1 Methods of selective inventory

1. ABC Analysis
One of the widely used techniques for control of inventories is ABC always better
control and analysis the objectives of ABC analysis is to very the expenses associated with
maintaining appropriate control to the potential savings associated with a proper level of
such control.
Logically we expect to maintain strong controls over the 'H' items taking whatever
special actions needed to maintain availability of these items hold stocks at the lowest
possible levels consistent with meeting demands, frequent ordering expenditure etc.,
because of the low amounts in this area, thus with the 'C' group we may maintain somewhat,
higher safety sticks order more months of supply except lower levels of customer service. It
is for this selective approach, ABC analysis is often called the selective inventory control.
(SIM) ABC analysis enables to exercise selective control when the materials manager is
confirmed with a large number of items. The significance of this analysis is that it spot light
attention to be given in respect of the areas like:
 Loss.
 Wastage.
25
  Scrap.
 Quality.
 Price variance.
 Usage variance.
 Inventory turnover etc.
It also helps to determine safety stocks frequently of ordering preparing of control
statements sources from which material is to be procured etc., Hence ABC analysis is one of
the best techniques of inventory control

Table showing features of ABC analysis:

A B C
Nature
(High Value) (Moderate value) (Low value)
Very strict
Extent of control Moderate control Loose control

Safety of stock No safety stocks Low safety stocks High safety stocks
Bulk ordering in 6
Frequency orders Frequency ordering Once in 3 months
months
Weekly control Monthly control Quarterly control
Control statements
Statements reports reports
Follow up
Follow up Maximum Periodic
exceptional case
Regards value Moderate value Minimum value
Type of analysis
analysis analysis analysis
Estimates based on
Accurate forecasting Rough estimates for
Forecasting past data on present
in material planning planning
plans
Period of review Minimization of Quarterly control Annual review over
waste, obsolete and over surplus and surplus and obsolete

26
 surplus obsolete items material
Centralized
Combination Decentralized
Centralization purchasing and
purchasing purchasing
storage
Level of Must be handled by Can be handled by Can be fully
management senior officers middle management delegated
As many sources as
Two or more reliable Two reliable source
Sources of supplies possible for each
source for each item.
item
Posting of ledger Individual posting Small group posting Group posting
Maximum efforts to Minimum clerical
Lead time Moderate
reduce lead time efforts
Value analysis Rigid Moderate Minimum.
Table No 4.2 Features of ABC Analysis

ABC analysis is one of the tools for inventory control. ABC refers to always Better
control. ABC analysis is done in MCL based on the following criteria.
 Value
 Consumption
 Criticality

ABC control characteristics are:

‘A’
 Very strict control.
 Very low safety stock.
 Frequent ordering.
 Maximum follow up.
 Weekly control statement.
 As many sources as possible.
 Centralized purchasing.
'B':
 Moderate control.
 High safety stock.
 Once in two or three months ordering.
 Periodical follow up.

27
  Quality control.
 Two or more sources of supply.
 Combined purchasing.
'C' :
 Moderate control
 High safety stock.
 Much ordering.
 Exceptional follow up.
 Quarterly control.
 Two or more sources of supply.
 Decentralized purchasing.

ABC analysis is done for 50 important items. The calculated figure is shown in table The
ABC analysis in quantity is shown above, ABC analysis in value is shown and ABC
Analysis in value and quantity is shown.

Determination of safety stock

This is extremely important the size of an order of an item which is most economical
depends on the value of consumption of that item; its safety cushion depends on the
variation in the time it takes to produce the item i.e. the lead time and degree of protection
desired.
ABC analysis applies to purchasing policy also in fact there should be the closest
possible coordination b/w the policy and procedure for acquiring and holding the material
the aim should be to reduce overall cost taking into account the actual prices, cost of
purchasing ordering holding costs etc., and at the same time ensuing a continuous supply at
minimum inventory cost thus the regular purchase should also be analyzed according to
ABC analysis.
Purchasing
ABC analysis applies to purchasing policy also in fact there should be the closest
possible coordination b/w the policy and procedure for acquiring and holding the material
the aim should be to reduce overall cost taking into account the actual prices, cost of
28
purchasing ordering holding costs etc., and at the same time ensuing a continuous supply at
minimum inventory cost thus the regular purchase should also be analyzed according to
ABC analysis.
The ABC concept is also applicable to stock taking and stores accounting a items are
subjected to frequent stock checks and each transitions is pasted on the stores account ears,
on the other hand 'B' items are physically counted at infrequent intervals and transactions
have even done away altogether with physical checks and maintenance of stores account for
'O' items.

2. HML Classifications
The high, medium and low classification follow the same procedures as 'I' adopted
in ABC classification only difference is that in HML classification unit value is the criterion
and not the annual consumptions value the items of inventory should be listed in descending
order of unit value and it is up to the management to fix limits for the three categories. The
HML analysis is useful for keeping control over consumptions at department levels, for
deciding frequency of physical verification and for controlling purchases.

3. VED classification
While in ABC classification inventors are classified on the basis of their
consumptions value and in HML analysis unit value is the basis critically of inventories is.
the basis for vital essential and desirable categorization.
The VED analysis is done to determine the criticality of an item and its effect on
production and other services it is especially used for classification of spare parts.
4. SDE Analysis
SDE analysis is based on problems of procurement namely:
 Non-availability
 Scarcity
 Longer lead time
 Geographical location of suppliers
 Reliability of suppliers, etc.
SDE analysis classifies the items into three groups called ‘Scarce’, ‘Difficult’ and ‘Easy’.
The information so developed is then used to decide purchasing strategies.

5. Just In Time (JIT)

29
 The objective of JUST IN TIME method is to increase the inventory turnover and
at the same time reduce the inventory holding cost. JIT inventory system also exposes the
unwanted or the dead inventory held by the retailer/ manufacturer. This method is ideal for
manufacturing organization and it is not used in Retail industry in general. This will also
involve usage of Kanban card to track inventory movement.

6. Vendor Managed Inventory

As the name explains, it involved SKUs managed directly by the supplier.
Inventory is replenished based on the sales on regular intervals by the vendor. The retailer
provides shop floor space and the vendor is charged a consignment rate on every product
sold at the location. The ownership of the items from receiving to sales and inventory loss
if any will be with the supplier.

CHAPTER 5 : DATA INTERPRETATION

INVENTORY TURNOVER

Year 2021 2020 2019 2018 2017

Inventory Turnover
Ratio 6.50 5.76 7.85 6.46 6.26

DATA :

Table No.5.1 Data for Inventory Turnover Ratio

Inventory Turnover Ratio = Net Sales / Total Average Inventory

30
ANALYS
IS:
From the above table we can see that the inventory turnover ratio for 2021 is about 6.50,
for the year 2020 it was 5.76, for the year 2019 it was 7.85, for the year 2018 it was 6.46
and for the financial year 2017 It was about 6.26.
Graph No.5.1 Graph For Inventory Turnover Ratio

INTERPRETATION:
From the above graph we can see that the inventory turnover ratio for the devparbati foods
company has been showing a fluctuating trend. Even though it has increased from the last
financial year, the highest figure was in the year of 2019.
AVERAGE RAW MATERIAL HOLDING
Year 2021 2020 2019 2018 2017
Average Raw Material
Holding - - - - 11.38

Inventory Turnover Ratio

9

0
2021 2020 2019 2018 2017

DATA :

Table No.5.2 Data for Average Raw Material Holding

Average Raw Material Holding = Average raw materials stock / Raw

material consumption

31
ANALYS
IS:
From the above table we can see that the average raw material holding for 2021 to the
year 2018 it was nil and for the financial year 2017 it was about 11.38.

Graph No.5.2 Graph For Average Material Holding

INTERPRETATION:
From the above graph we can see that the average raw material holding for the company
has been constantly becoming nil with the exception of the financial year of 2017.

Average Material Holding

12

10

0
2021 2020 2019 2018 2017

AVERAGE FINISHED GOODS HELD

Year 2021 2020 2019 2018 2017
Average Finished Goods
- - - - 102.87
Held
DATA :

Table No.5.3 Data for Average Finished Goods Held

32
 Average Finished Goods Held = Cost of goods sold / Average finished inventory

ANALYS
IS:
From the above table we can see that the average finished goods held for 2021 to the
year 2018 it was nil and for the financial year 2017 it was about 102.87.

Graph No.5.3 Graph For Average Finished Goods held

INTERPRETATION:
From the above graph we can see that the average finished goods held days is
also nil whereas the company had a very high figure of 102.87 in the financial year of

Average Finished Goods Held

120

100

80

60

40

20

0
2021 2020 2019 2018 2017

2017

33
NUMBER OF DAYS IN WORKING CAPITAL
DATA :
Year 2021 2020 2019 2018 2017

Number of Days
In Working Capital 0.47 14.82 -8.76 5.15 19.42
Table No.5.4 Data for Number of Days in Working Capital

Number of Days in Working Capital = (Operating Current Assets – Operating Current

Liabilities) / annual sales * 365

ANALYSIS:
From the above table we can see that the number of days in working capital for 2021 is
0.47, for the year 2020 it was 14.82, for the year 2019 it was -8.76, for the year 2018 it was
5.15 and for the financial year 2017 it was about 19.42

Number of Days in Working Capital

120

100

80

60

40

20

0
2021 2020 2019 2018 2017

-20

Graph No.5.4 Graph For Number of Days in Working Capital

INTERPRETATION:
From the above graph we can see that the number of days in working capital for the
devparbati foods company has been showing very fluctuating figures. It came down
drastically from the previous financial year which was a increase from its predecessor.

34
MATERIAL COST COMPOSITION
Year 2021 2020 2019 2018 2017
Material Cost
55.65 58.72 50.70 56.74 58.01
Composition
DATA :
Table No.5.5 Data for Material Cost Composition

Material Cost Composition = Raw Material Opening + Material Purchases –

Material

ANALYSIS:
From the above table we can see that the material cost composition for 2021 is 55.65, for the
year 2020 it was 58.72, for the year 2019 it was 50.70, for the year 2018 it was 56.74 and for
the financial year 2017 it was about 58.01.

Material Cost Composition

60

58

56

54

52

50

48

46
2021 2020 2019 2018 2017

Graph No.5.5 Graph For Material Cost Composition

INTERPRETATION:
From the above graph we can see that the material cost composition of the company has
decreased from the previous financial year which stood lowest in the year of 2019 and

35
highest in the previous financial year of 2020.
IMPORTED COMPOSITION OF RAW MATERIALS CONSUMED
Year 2021 2020 2019 2018 2017
Imported
Composition of Raw -- -- 34.35 32.74 42.97
Materials Consumed
DATA :
Table No.5.6 Data for Imported Composition of Raw Materials Consumed

ANALYSIS:
From the above table we can see that the material cost composition for 2021 to 2020 was
nil, for the year 2019 it was 34.35, for the year 2018 it was 32.74 and for the financial year
2017 it was about 42.97

Imported Composition of Raw

Materials Consumed
50

45

40

35

30

25

20

15

10

0
2021 2020 2019 2018 2017

Graph No.5.6 Graph For Imported Composition of Raw Materials Consumed

INTERPRETATION:
From the above graph we can see that the imported composition of raw materials consumed
for the company has been nil for the current and the previous financial years.

36
SELLING DISTRIBUTION COST COMPOSITION
Year 2021 2020 2019 2018 2017
Selling Distribution
3.94 4.08 3.68 -- --
Cost Composition
DATA :
Table No.5.7 Data for Selling Distribution Cost Composition

ANALYSIS:
From the above table we can see that the selling and distribution cost composition for 2021 is
about 3.94, for the year 2020 it was 4.08, for the year 2019 it was 3.68 and for the year 2018
to the year 2017 it was nil.

Selling Distribution Cost Composition

4.2

4.1

3.9

3.8

3.7

3.6

3.5

3.4
2021 2020 2019 2018 2017

Graph No.5.7 Graph For Selling Distribution Cost Composition

INTERPRETATION:
From the above graph we can see that the selling and distribution cost composition of the
devparbati foods company has increased after the financial year of 2019. However for the
current financial year it has decreased a little
PBT MARGIN (%)
37
 Year 2021 2020 2019 2018 2017

PBT Margin (%)

20.22 21.00 18.80 16.59 16.34
DATA :
Table No.5.8 Data for PBT Margin (%)

PBT Margin (%) = Earnings Before Tax/ Sales

ANALYSIS:
From the above table we can see that the PBT Margin (%) for 2021 is about 20.22, for the
year 2020 it was 21, for the year 2019 it was 18.80, for the year 2018 it was 16.59 and for the
year 2017 it was 16.34.

Graph No.5.8 Graph For PBT Margin (%)

PBT Margin (%)

25

20

15

10

0
2021 2020 2019 2018 2017

INTERPRETATION:
From the above graph we can see that the PBT Margin percentage for the company had been
showing an increasing trend over the years, except for the current financial year which
showed a figure slightly lesser than the previous year.
RETURN ON CAPITAL EMPLOYED (%)
Year 2021 2020 2019 2018 2017

38
 Return on Capital
Employed (%) 35.25 35.75 30.14 29.39 29.99
DATA :
Table No.5.9 Data for Return on Capital Employed (%)

Return on Capital Employed = Net Operating Profit / (Total assets –Current Liabilities)

ANALYSIS:
From the above table we can see that the Return on Capital Employed (%) for 2021 is about
25.25, for the year 2020 it was 35.75, for the year 2019 it was 30.14, for the year 2018 it was
29.39 and for the year 2017 it was 29.99.

Graph No.5.9 Graph For Return on Capital Employed (%)

Return on Capital Employed (%)

40

35

30

25

20

15

10

0
2021 2020 2019 2018 2017

INTERPRETATION:
From the above graph we can see that the return on capital employed percentage of the
company has stood almost same as the previous financial years figure. However it had
increased slightly in the previous year.
ASSET TURNOVER RATIO (%)

39
 Year 2021 2020 2019 2018 2017
Asset Turnover Ratio
122.26 122.09 151.19 160.16 155.92
(%)
DATA :
Table No.5.10 Data for Asset Turnover Ratio

Asset Turnover Ratio = Total Sales / Average Total Assets

ANALYSIS:
From the above table we can see that the Asset Turnover Ratio (%) for 2021 is about 122.26,
for the year 2020 it was 122.09, for the year 2019 it was 151.19, for the year 2018 it was
160.16 and for the year 2017 it was 155.92.

Graph No.5.10 Graph For Asset Turnover Ratio (%)

Asset Turnover Ratio (%)

180

160

140

120

100

80

60

40

20

0
2021 2020 2019 2018 2017

INTERPRETATION:
From the above graph we can see that the asset turnover ratio percentage for the company has
remained almost same as the previous financial year. It was highest in the year of 2018 and
then onwards it started to decrease.
ABC CLASSIFICATION ABC Analysis for 2017

40
 CLASS VALUE % OF VALUE CUMULATIVE% ITEMS

A 15783654 48 48 97
B 7896465 32 86 148
C 5149436 14 100 331
Total 28829555

Table No 5.11 Data for ABC Analysis for 2017

INTERPRETATION:
In Cumulative %
the 120
yea r
100

80

60

40

20
Graph No 5.11 Graph For ABC Analysis for 2017
0

Cumulative %
2017 there are 97 items which constitutes their value of 48% in the total value which comes
under “A” category. 148 items which constitutes 32% in the total value which comes under
“B” category and 331 items which constitutes 14% in the total value which comes under “C”
category

ABC Analysis for 2018

41
 CLASS VALUE % OF VALUE CUMULATIVE% ITEMS

A 18657453 59 59 132
B 9176839 33 89 162
C 5276050 11 100 358
Total 33110342

Table No 5.12 Data for ABC Analysis for 2018

Cumulative %
120

100

80

60

40

20

Cumulative %
Graph No 5.12 Graph For ABC Analysis for 2018

INTERPRETATION:
In the year 2018 there are 132 items which constitutes their value of 59% in the total value
which comes under “A” category.162 items which constitutes 89% in the total value which
comes under “B” category and 358 items which constitutes 11% in the total value which
comes under “C” category.

ABC Analysis for 2019

42
 CLASS VALUE % OF VALUE CUMULATIVE% ITEMS

A 67963606 90 90 90
B 6330760 8 98 124
C 1538254 2 100 385
Total 75832620

Table No 5.13 Data for ABC Analysis for 2019

Cumulative %
102

100

98

96

94

92

90

88

86

84

Cumulative %
Graph No 5.13 Graph For ABC Analysis for 2019

INTERPRETATION:
In the year 2019 there are 69 items which constitutes their value of 90% in the total value
which comes under “A” category.124 items which constitutes 8% in the total value which
comes under “B” category and 385 items which constitutes 2% in the total value which
comes under “C” category.

ABC Analysis for 2020

43
 CLASS VALUE % OF VALUE CUMULATIVE% ITEMS

A 81356374 93 93 94
B 6954739 11 94 163
C 839125 6 100 294
Total 89150238

Table No 5.14 Data for ABC Analysis for 2020

Cumulative %
102

100

98

96

94

92

90

88

Cumulative %
Graph No 5.14 Graph For ABC Analysis for 2020

INTERPRETATION:
In the year 2020 there are 94 items which constitutes their value of 93% in the total value
which comes under “A” category.163 items which constitutes 94% in the total value which
comes under “B” category. 294 items which constitutes 6% in the total value which comes
under “C” category

44
ABC Analysis for 2021

CLASS VALUE % OF VALUE CUMULATIVE% ITEMS

A 397584731 97 97 19
B 13526735 6 98 41
C 3696429 2 100 523
Total 414807895

Table No 5.15 Data for ABC Analysis for 2021

Cumulative %
100.5

100

99.5

99

98.5

98

97.5

97

96.5

96

95.5

Cumulative %

Graph No 5.15 Graph For ABC Analysis for 2021

INTERPRETATION:
In the year 2021 there are 19 items which constitutes their value of 97% in the total value
which comes under “A” category. 41 items which constitutes 6% in the total value which
comes under “B” category and 523 items which constitutes 2% in the total value which
comes under “C” category.

45
CHAPTER 6 : FINDINGS

1. The key components of inventory are raw materials, work processes, shops and
accessories and finished goods. The average, finished goods index is 43.18% higher.
2. Work on process listings occupies a position of 33.11% in the Devparbati Foods
Company.
3. The share of raw materials stock increased
4. At the time of analysis, the increase in inventory size in the entire personality (from 207
to Rs 595 crore) has been found to be more noticeable in the Devparbati Foods
Company.
5. The size of the inventory is large and 72% of the average asset and 15% of the total
asset.
6. Inventory transaction ratio is based on sales between 1.91 and 5.03 and sold from 2.39
to 4.80 in the Devparbati Foods Company, depending on the cost of sales.
7. During the raw stocking period,it varies greatly from the norm (2 months). The
Company has vary significantly from the norm (0.75months) in the work process.
Thus, the raw materials stock level was satisfactory in Devparbati Foods and had a
satisfactory level of processing inventory.
8. The growth in sales and product sales inventories in Devparbati Foods during this
period depicts the average growth rate of inventory is higher than the sales rate and
growth rate of production. Matrix also points out that there is a more positive
correlation between goods, trade and production.
9. Efficiency of performance management was moderate in the Devparbati Foods
Company due to the change in raw materials (96.71%) with the change of raw
materials consumption (53.70%). This reveals more or less stable behavior of raw
materials stock. So the performance of the Devparbati Foods Company was good
during the study.
10. The recession results reveal that there is a high positive correlation between
inventory and current assets in the Devparbati Foods Company.

46
CHAPTER 7 : SUGGESTIONS

1. The company's profit is not in good standing, for example the company has to take
alternate measures.
2. Increase in Arecanut collection, Production and control of costs, management, sales
etc.
3. Organizations have a lower current ratio, so their current ratio can be increased so that
short term liability can be done smoothly.
4. The firm's liquidity ratio is not the best liquidity in five years. So I suggest that the
firm maintains proper liquid money, such as cash and bank balance.
5. It increases the efficiency of the employee, the more training required for its
employees, the greater safety precautions for employees who work directly in the
Packaged paan process, to increase their productivity efficiency and to minimize
errors while performing tasks.
6. The firm's high inventory advocates that the firm should reduce its shares by
increasing sales.
7. The direct cost of the firm is too high, so my advice is to reduce the direct cost cost by
purchasing raw materials from other suppliers.
8. Organizations should have appropriate testing in the plant production process

47
CHAPTER 8: CONCLUSION AND SUMMARY

` Inventory management at Devparbati Foods, Nashik has contributed a lot for the
efficient flow of work. It was found that the inventory management process and its practice of
a higher degree and highly sophisticated manner. Efficient inventory management of
inventory helps the owners, but also customers, suppliers, government and society.
To increase the profits it is necessary to reduce the inventory cost.The study has been
undertaken with the objectives such as inventory control system, ABC analysis; purchase
procedure and evaluation of purchase procedure. By studying these objectives it is helpful
know the inventory control system in Devparbati Foods.
Stock Management helps and guarantees the accomplishment of creation
organizations. Fruitful execution of stock fundamentally improves the entire business.
Current stock administration forms use new and increasingly refined strategies for dynamic
enhancement of stock to limit shopper administrations, diminished stock and ease.
The objective of good stock administration isn't flawlessness however improvement.
These enhancements ought not be seen as a transient exertion, yet should proceed
consistently. The ROI of stock administration is found in expanded pay and benefit
shapes, a positive increment in the representative condition and in general consumer
loyalty.
A really compelling stock administration framework diminishes the unpredictability
of arranging, keeping up and controlling a basic production network organize for
business achievement.
To conclude that in Devparbati Foods, the stores department is concerned with the
receiving of materials, storing and issuing to the production department. Regarding purchase
department, it will purchase the raw materials from within the Maharashtra state.
The company is consuming various categories of materials there is balance between
the procurement and consumption more often the company depends upon the just in time
management principles which is very common in most of the foreign collaborated
organizations. The purchase procedure of the company should move for localization, this
should greatly influence on easy procurement of materials in time and also reduces ordering
and carrying cost of the company, it will helps to increase the profits of the company.

48
 ANNEXURE
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APPENDIX:
Balance Sheet Comparison

PARTICULARS 2021 2020 2019 2018 2017

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 95.92 95.92 95.92 95.92 95.92

Total Share Capital 95.92 95.92 95.92 95.92 95.92

Reserves and Surplus 7,702.24 6,998.83 4,867.24 4,134.34 3,505.01

Total Reserves and Surplus 7,702.24 6,998.83 4,867.24 4,134.34 3,505.01

Total Shareholders Funds 7,798.16 7,094.75 4,963.16 4,230.26 3,600.93

NON-CURRENT LIABILITIES

Long Term Borrowings 9.87 10.38 31.55 32.09 39.51

50
Deferred Tax Liabilities [Net] 270.33 261.17 207.69 167.78 177.07

Other Long Term Liabilities 3.26 5.96 1.68 0.00 0.12

Long Term Provisions 107.35 109.84 94.23 85.25 80.24

Total Non-Current Liabilities 390.81 387.35 335.15 285.12 296.94

CURRENT LIABILITIES

Short Term Borrowings 0.00 26.84 0.00 0.00 0.00

Trade Payables 1,851.50 1,671.26 1,333.20 1,313.08 1,498.84

Other Current Liabilities 1,504.61 1,141.63 1,021.25 832.71 747.52

Short Term Provisions 42.85 36.20 711.39 612.03 537.48

Total Current Liabilities 3,398.96 2,875.93 3,065.84 2,757.82 2,783.84

Total Capital And Liabilities 11,587.93 10,358.03 8,364.15 7,273.20 6,681.71

ASSETS

NON-CURRENT ASSETS

Tangible Assets 2,477.44 2,512.01 2,532.97 1,886.42 1,973.21

51
 Intangible Assets 91.09 92.67 92.17 79.07 38.99

Capital Work-In-Progress 1,391.84 219.76 92.79 139.54 37.95

Fixed Assets 3,960.37 2,824.44 2,717.93 2,105.03 2,050.15

Non-Current Investments 1,547.33 1,598.20 1,006.89 775.72 548.19

Long Term Loans And Advances 79.08 70.27 111.23 209.54 94.64

Other Non-Current Assets 500.06 434.92 30.54 13.64 6.32

Total Non-Current Assets 6,086.84 4,927.83 3,866.59 3,103.93 2,699.30

CURRENT ASSETS

Current Investments 1,030.01 1,315.40 1,432.79 1,118.06 482.00

Inventories 2,178.43 2,194.09 1,610.12 1,802.18 1,665.05

Trade Receivables 1,138.20 994.63 759.06 728.87 712.36

Cash And Cash Equivalents 120.84 205.94 155.02 61.81 745.36

Short Term Loans And Advances 12.17 13.55 221.91 205.43 201.54

Other CurrentAssets 1,021.44 706.59 318.66 252.92 176.10

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Total Current Assets 5,500.17 5,429.63 4,497.56 4,169.27 3,982.41

Total Assets 11,587.93 10,358.03 8,364.15 7,273.20 6,681.71

Profit and Loss Statement

PARTICULARS 2021 2020 2019 2018 2017

INCOME

Revenue From Operations

14,329.17 14,329.17 14,162.13 14,162.13 13,992.15
[Gross]

Less: Excise/Sevice Tax/Other

391.69 391.69 1,713.32 1,713.32 1,533.50
Levies

Revenue From Operations

13,937.48 13,937.48 12,448.81 12,448.81 12,458.65
[Net]

Other Operating Revenues 230.38 230.38 198.30 198.30 187.23

Total Operating Revenues 14,167.86 14,167.86 12,647.11 12,647.11 12,645.88

Other Income 277.50 277.50 300.17 300.17 225.30

Total Revenue 14,445.36 14,445.36 12,947.28 12,947.28 12,871.18

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 EXPENSES

Cost Of Materials Consumed 7,100.16 7,100.16 6,737.45 6,737.45 5,842.29

Purchase Of Stock-In Trade 742.57 742.57 646.53 646.53 524.42

Changes In Inventories Of
FG,WIP And Stock-In Trade 154.12 154.12 -515.58 -515.58 162.86

Employee Benefit Expenses 791.08 791.08 742.83 742.83 664.20

Finance Costs 21.06 21.06 18.86 18.86 23.40

Depreciation And Amortisation 311.11 311.11 295.43 295.43 238.36

Expenses

Other Expenses 2,459.43 2,459.43 2,365.04 2,365.04 2,972.55

Total Expenses 11,579.53 11,579.53 10,290.56 10,290.56 10,428.08

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