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Invcntorv consistE of raw maLcrialE. pacldDS maLcrials. consumabLcE.

stoics and spares, wort


in process and finished goods. The raw maLcrials. work-in-process goods, and completely

finished eochds that are considered to be the portion of a businesses assets that is ready or will
be ready for sa[e. Invcntorv represents one of die most important assets that most busiDcsscs
posses, because the turnover of inventory icprescnts one of the primary sources of revenue

generation and subsequent earnings for the company

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s share holders owners.

Unless organiiadon learn to manage its inventory, success, will be elusive. Thus, the
effecdveness of an organizadon depends much on the strength of its inventoiy management
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which is an imporcant part of the whole system In the cemtext of India s Coal Industry
mventary management holds a greater significance because coal which is one of the major
source of fuel for any industry, in recent years has become more crucial for achieving rapid

economic growth of our country.


For my study I have mainly gathered informadon by intcracdng with execudves and
employees of Sundaram Brake Linings. Also I have gathered informadon from financial
bulletin, annual reports and company magazines. With the valuable informadon and dmc

inparted by executives and employees to me and from the information's gathered by me


trom secondary souiccs. I have been able to make a complete analysis of the componcnLs of
inventory management.
Even" organiiadon needs inventory for smooth running of its acdvidc s. It serves as a link
between producdon and distiibudon processes. The investment in inventories consdtutcs the
most significant part of current assets.'working capital in most of the undertakings. Thus, it is
very essendai to have proper control and management of inT- entories.
Keeping this background in view, an attempt is made to examine the performance of
inventory management in Sundaram Brake Linings. The study starts with an introducdon to

inventcry management. Company's profile Achievements, its Vision and also the need for
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study, review of literature, research methodology and objecdves are set out for the study. The
proiect contains the procedures for the analysis of invcntorv. rados being used to define the
efficiency' of inventory management and the impact of shortcomings in the management of it.
There are some other ratios which funcdon as a single test to help you iudge both the health
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of a company s inventories and how that health is affecdng the company s

overall financial

condidon. All this had been done to get a clear i'iew of the techniques of inventory
management in Sundaram Brake Linings. One of the main areas of the proiect is the analvsis
part, where the data arc analyzed & interpreted, to find out how the inventories were
managed. And then conclusions, limitadons & scope for further study were discussed.

STATEMENT OF PROBLEM

The current system under inventory management at Sundaram Brake Linings a substantial

pan of the Curreni As&eis is covered by Mvenmries.

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In Today 4 competiiion ii becomes

mandatory to keep large current assets in form of inventories so as to ensure smooth


production an excellent management of these ini'entories has to be maintained to strike a
balance between all the inventories required for the production.
So. in order to manage all these inventories and determine the investments in each
inventories, the system call for an excellent management of current assets which is really a

tough job as the amount of inventories required are. large in number.


Here comes the nee-d of Inventory Management or managing the investments in Inventory.
Thus in big companies like Sundaram Brake Linings it is not easy at all to implement a good
Inventory Management as it demands individual attention on its different components and it
is not easy to maintain Inventory same as the previous year. Proper data security system is
not provided.
So. I have been given this topic to make an in-depth analysis and detailed study to come out
with a clear magnified view as to whether the management of Inventory at TVS Sundaram
Brake Linings is sound or noL