A STUDY PROJECT ON INVENTORY

MANAGEMENT
Name of the Student

T M Nagendra Babu

Regd. No.

10043

Mobile No.

9491884434

Mail id

tmnbabu34@gmail.com

Name of the Company

Smart Trak Solarsystems

Project Office Address

Melangae Towers
Madhapur,
Hyderabad 500008.

Contents
PART- I

* Introduction of the Topic

*Objective of the Study
*Introduction of Company
* Company Profile
* History
* Board of Directors
* Presence Across Value Chain
* Awards
* Products
* Guiding Principals of Company
* Structure of the Company
* Research Methodology
* Conceptual Discussions

PART- II
* Data Collection
* Financial Statements
* Data Analysis and Interpretation
* Problems and Suggestions
* Conclusion

INTRODUCTION OF THE TOPIC:

Inventories constitute the most significant part of current assets of a large
majority of companies in India. On an average, inventories are approximately
60% of current assets in public limited companies in India. Because of the
large size of inventories maintained by firms, a considerable amount of feuds
is required to be committed to them. It is therefore, absolutely imperative to
mnage inventories efficiently and efficiently in order to avoid unnecessary
investment. A firm neglecting the management of inventories will be
jeopardizing its long run profitability and may fail ultimately. It is possible for
fore a company to reduce its levels of inventories to a considerable degree
e.g. 10 to 20 percent, without any adverse effect on production and sales, by
using simple inventory planning and control techniques.

The reduction in

excessive inventory carries a favorable impact on a companys profitability.

NATURE OF INVENTORIES:
Inventories are stock of the product a company is manufacturing for sale and
components that make up the product. The various forms in which inventory exist in
a manufacturing company are raw materials, work in progress and finished goods.

RAW MATERIALS:Raw materials are those inputs that are converted into finished product though
the manufacturing process. Raw materials inventories are those units which have
been purchased and stored for future productions.

WORK IN PROGRESS:These inventories are semi manufactured products. They represent products that
need more work before they become finished products for sales.

FINISHED GOODS:Finished goods inventories are those completely manufactured products which
are ready for sale. Stock of raw materials and work in progress facilitate production.
While stock of finished goods is required for smooth marketing operation.

Thus,

inventories serve as a link between the production and consumption of goods.

COMPANY PROFILE:
SmartTrak Solar Systems is a vibrant growing company driven by passion for
clean and green energy.
Started in 2011 by a team of technocrats with profound knowledge and huge
experience, SmartTrak is dedicated to developing innovative cost-effective,
energy-efficient solar solutions for industry and domestic purpose.
An ISO 9001:2008 certified company, SmartTrak is the India's leading
manufacturer of tracking systems. It has the distinction of being the first
company in India to offer indigenous tracking solutions and the first company
in Andhra Pradesh to install a solar tracking system.

INDUSTRY PROFILE:
India is densely populated and has high solar insolation, an ideal combination
for using solar power in India. Moreover, its other energy resources are
relatively scarce. In the solar energy sector, some large projects have been
proposed, and a 35,000 km2 (14,000 sq mi) area of the Thar Desert has been
set aside for solar power projects, sufficient to generate 700 to 2,100 GW.
In July 2009, India unveiled a US$19 billion plan to produce 20 GW of solar
power by 2020. Under the plan, the use of solar-powered equipment and
applications would be made compulsory in all government buildings, as well
as hospitals and Hotels. In January 2015, the Indian government significantly
expanded its solar plans, targeting US$100 billion of INVESTMENT and 100
GW of solar capacity by 2022.

According to a 2011 report by BRIDGE TO INDIA and GTM Research, India is

facing a perfect storm of factors that will drive solar photovoltaic (PV)
adoption at a "furious pace over the next five years and beyond". The falling

prices of PV panels, mostly from China but also from the U.S., has coincided
with the growing cost of grid power in India. Government support and ample
solar resources have also helped to increase solar adoption, but perhaps the
biggest factor has been need. India, "as a growing economy with a surging
middle class, is now facing a severe electricity deficit that often runs
between 10% and 13% of daily need".[4] India is planning to install the
World's largest Solar Power Plant with 4,000 MW Capacity near Sambhar
Lake in Rajasthan.[5]

There are various factors that we need to consider before INVESTING into a
solar power plant. A lot of enthusiasm has been seen among people about
the use of Solar Energy as a substitute of conventional sources of energy.
However, currently, with the power subsidies in India, solar works economical
only in those areas that are using diesel generators as a primary source of
electricity. The entire payback is made in 23 years. Solar system for petrol
pumps is a leading example of such an application. IOCL is leading the race
for solarization of petrol pumps with aggressive targets. Solar applications for
petrol pumps by RelyOn Solar has been installed in more than 150 IOCL
petrol pumps across India and now other oil companies are also looking to
solarize their ROs. Solar installations for commercial buildings, where the
electricity rates are higher, are also proving to be a game changer for the
owners of IT companies.

RESEARCH METHODOGY:
Research methodology is the way to systematically solve the research
problem. Objective of research study is Analysis of inventory of SmartTrak
Solar Systems Pvt Ltd. Analyzing of inventory, we determining following
inventories1. Raw materials inventory.
2. Work in progress inventory.
3. Finished goods inventory &
4. Supplies inventory.

In this section of inventories, we should analyze the annual investment

in inventories, Valuation of inventory after closing balance of items in
inventory. In this manner, we calculate reorder point, safety stock levels,
minimum & maximum levels of inventory.

Working hypothesis of the objective is that inventories are the stock piles
of goods .The all organization on their inventories. JOL invests about
60%of total assets inventory should be analyzed their records.
The analysis of inventory according to their data available in the
company. The data collection of inventory for analysis by the direct store
department. We should record primary and secondary data by the helps
of assistants ledger books M R N etc. We went to the all inventories as
raw material , work in progress inventory, finished goods inventory by the
proper observation of datas of the company.
The particular method for data collecting used direct interview with
assistants and telephone interview with friends to known about annual
investment of inventories and other important data.

LIMITATIONS OF THE SOLAR INDUSTRY:

1. It's intermittent. Solar energy is only available when the sun is shining.
2. It's low efficiency. It requires large areas of land.
3. It's not completely free of environmental impact. Ultrapure polysilicon
is now scarce.
4. It's high cost.

SCOPE OF THE PROJECT:

The scope of the inventory may change based on the strategic targets of
the business. Scope may refer to different aspects of how inventory
counts are conducted or to the way inventory information is used. A
manufacturer of durable goods may use inventory information to control

the costs of raw materials and to maximize margins, while a food

manufacturer may prioritize fast turnover of inventory to ensure
freshness. The importance of inventory counts in those examples may
require staff dedicated to inventory management, while a small cleaning
business may not need more than an occasional scan of its cleaning
supplies inventory to function efficiently.