A

PROJECT REPORT
ON
INVENTORY MANAGEMENT
Of
SWISS GLASSCOAT EQUIPMENT
LIMITED VIDHYANAGAR
GLASS PRODUCT
-: PREPARED BY:-

SANDEEP RANA
ROLL NO :- 1411001440

CENTER CODE: 00218

t
SEMESTER:-3rdSem(INTERNATIONAL
BUSINESS MANAGEMENT)

GUIDED BY
SUNIL B. PATEL
SUBMITTED TO
GENIUS TECHNOLOGIES
SIKKIM MANIPAL UNIVERSITY NADIAD CENTER

Project

Project

The Project Report of

SANDEEP RANA
On
INVENTORY MANAGEMENT
IS APPROVED AND IS ACCEPTABLE IN QUALITY
AND FORM.

Internal Examiner

External examiners

Project

Project

PREFACE
Today the field of management is expanding. The demand for
Professional manager is increasing day to day. To become professional manager
Specialized knowledge. skills and trading are required .M.B.A. is the program
which can provide all these pre-request.

master of business administration (MBA) program was started by Sikkim manipal

university in the year 2012 It is a complete management program for under
graduates to get the knowledge about the professional functional of business
administration. it also emphasis on conceptual. Analytical and decision making
skills.

Being a management student practical training for us is an essential part of our

course. I get the opportunity to undergo my practical training at swiss
glass coat equipment limited such a training very helpful to increase the skills
ability and development of students.

Project
In college , we get only theoretical knowledge but in industrial training we get the
practical knowledge which very essential. I found that the staff as well the member
are quite co-operative and helpful in solving queries of related to project.

Sandeep Rana
MBA (3rd Sem)
Roll no:- 521123043

Project

ACKNOWLEGDEMENT
A successful completion for a project requires active involvement of
many people from time of inception of an idea to its implementation. Many beings
work together and together and that only provides fruitful results.
It is great pleasure and privilege in presenting this INVENTORY
MANEGEMENT Training report to one and all concerned. My deepest gratitude
to our college for giving me great opportunity to undergo training at one of the
most reputed organization like SWISS GLASSCOAT EQUIPMENT LIMITADE. I
am deeply interested and thankful to the company for giving me a wonderful
opportunity in allowing me to my project work there.
I take this opportunity to express my gratitude to my respected director
Suresh Patel granting me presentation to undertake practical training
I am very thankful to its staff specially Mr. Atul sir (personal manager)
for providing me the relevant information during own trading period and helpful
me in finding solution of the problem related to inventory management.

Project
Iam also thankful to my respected miss Ygna Vyas for providing proper
Guideline to prepare this report and helped me finding of the solution of problem.
I Thanks to all of them who provided me the information about unit.
I Express my views for all necessary information provided to me or the visit
Are the costs of their valuable time?

Project

Index
No. particular
1.

Company profile

2.

Introduction of inventory management

3.

Research methodology

4.

Date analysis

5.

Conclusion

6.

Suggestions

7.

Finding

Project

COMPANY PROFILE
INTRODUCTION
SWISS GLASSCOAT EQUIPMENT LIMITED (S.G.E.L.) is located at G.I.D.C.
Vithal Udhyognagar. NearAnand .S.G.E.L. was established in the year 1992.The
technical knowledge for glass has been obtained from (SIR/ CGCRT) calculated
for the entire product rage of the company comprising of glass lined items
Through a license under the memorandum of an agreement on 11thNovember
1993. production activity commenced in Dec.1994.

Project

ABOUT THE COMPANY

NAME OF COMPANY :SWISS GLASSCOAT EQUIPMENTS LIMITED

YEAR OF INCORPORATION ::1992
YEAR OF COMMENCEMENT OF PRODUCTION :: 1994
INDUSTRY NAME ::Glass and glass product
TYPE OF ORGANISATOIN ::PUBLIC LIMITED COMPANY SIZE OF ORGANISATION ::Large scale
E-MAIL ::-marketing @ glasscoat.co

Project
Mr .shashikantpatel Director
Mr .paresh shah

Director

ANKERS ::

State Bank of India

Axis banks

STATUTORY AUDITORS :

Darji& Associates charted accountants. S-403 .kavita shopping center

.Opp. GPO. Anand

Legal Advisor:

A MoheyMayavillaMahadev Area. Vallabh Vidhyanagar.

Awards and certificates:ISO 9001 certified by LROR

Lods register quality assurance

Project

Competitors :In India the company is facing competition from two competitiors:

GMM pfaudler limited

Navbharat India limited.

Customer :The company has customers from the field of chemicals.

Pharmaceutical. Petrochemicals pesticides and fertilizers.

Project

HISTORY AND DEVELOPMENT

SWISS GLASSCOT EQUIPMENT LIMITED (SGEL) is located at GIDC.
VIthhal udhyognagar .near anand. SGLS was established in the year 1992. The
technical knowledge for Glass has been obtained from CSIR / CCIR
Calculated for enter product range of company comparing ofgood glass lined
item through a license under the memorandum of an agreement on 11th
NOvember.1993. producing activity concerned in December.1994.

SWISS GLASSCOT EQUIPMENTLTD. Is the first company to introduction?

the play free reactors in the market it has highest capacity of 50,000 liars which no
other company manufacturers production capacity was stated in 1994 and it was
also capital foreign market like USA etc.

The company has established good practice in corporate government which

is implemented by a professional board of Directors. Corporate government has
Attained permanent important for ensuring fairness, Transparency, accountability

And responsibility to all state holder. Company has practically institutionalized the Project
Best practices in respect of effective control ad enhancement of share holder value.

SGEL was established with the technological advocated glass lining is one
of the best was that apply serves the purpose due to its inseparable characterizes.
Swiss glass coat not only has a history of being a director leader of domestic market
in design and development of reactors and vessels. But also continuous to be an
innovation in working out effective and efficient solution to a wide variety or
applications.

To break the monopolistic market of glass lined equipments and to provide a

complete range of glass lined products under one roof. Swiss Glass coat
equipments was established with technological development .

SGBL mainly manufacturers Glass lined processing equipments called

restores, storage, tanks, distillations column agitators, pipes and pipe fitting etc.

Today SGBL becomes front runner of domestic glass lining. There are very
few companies in the world who manufacture glass lined reactors vessels. In India
only 3 companies manufacture this product. In this 3 GMM is first with regard to

market share and SGBL is a front runner. Since its incorporation it has try to
increases market share and achieve high level of efficiency and effectiveness.

Project

Project

MANUFACTURING FACILITIES

Shop setup
Total land area

42,000 sq.m.

office floor area

1,405 sq.m.

Shop floor area

14,500 sq.m.

Power capacity

2900 kva
180 kva dieselgenset
1385 kva gasgenset

Manufacturing capacity

7,50,000literage/annum

Material handling facility

Overhead cranes

25 MT-7 m-2 nos.

20 MT-7 m-2 nos.

10 MT-7 m-2 nos.
7.5 MT-7 m-2 nos.
5 MT-7 m-2 nos.
5 MT-2 nos.
2 MT-1 nos.

Project

1 MT-2 nos.
Jib cranes

1 MT-4 nos.

Fork lift

2 MT-1 nos.

Manipulator

30 MT-1 nos.

Project

Project
Cutting facilities

Gas cutting

Up to 50mm thickness

Profile cutting

Up to 50mm thickness

Plasma arc cutting machine

Up to 30omm thickness

Nozzle trimming machine

1000ltrs to 20000 ltrs GLR

Welding process
SMAW,
SAW,
GTAW and
MIG.

Surface preparation facilities

Blasting unit

04 nos.

Grinding machine

12

Project
Material sub contract
Dished end forming
Forgings
Casting

GLASSLINING TEST

Glass frit row material test.

Alkai resistance test of glass as per Din standard.

Acid resistance test for glass as per Din standard.

Thermal shock resistance test for glassing.

Spark test of check glassing continuity

Project

Project

ASE MENTAL TEST

CHEMICAL :carbon slphur test to ascertain composition of metal.

Testing to determined manages and silicon component
in the metal.

Physical :tensile, bend and impact test are done at accredited

Laboratory.

Project

Project

WELDING TEST

Dye penetration test for detecting superficial defects on the metal surface.
Ultrasonic test for detecting welding defects.

Project

Project

OBJECTIVE

1.Offering to prompt delivery and services exceeding customers

expectations.
2.Meeting accelerated growth to become a market leader.
3.Adopting innovative manufacturing processes .
4.Imparting training to every employee and u sub vendor of the

organization to do the job first time the right way.

5.Enhancing establish quality standard through bench marketing.

Project

POLICY

1.

To manufacturer and promote glass lined process equipment for

chemical ,pharmaceutical pesticide and food processing industries.

2.

To provide our customers with products and services that exceed their

expectation.
3.

To establish, implement and review quality management system for

continual improvement to manufacture world class quality glass lined

equipment.
4.

To ensure that the profits are share by all those contributing to the growth

of the organization.
5.

To provide healthy working environment to employees and vendors.

To implementation of forms will be reviewed periodically of improve the

effectiveness of our commitment to constant innovation and sound

business practices.

Project

INRODUCTIONS OF INVENTORY
MANAGEMENT

The dictionary meaning of the inventory is stock of goods. but the generally
accepted meaning of the word goods in accounting language is the stock of
finished goods only. in a production organization however in addition to stock of
finished goods. this will be stocks of finish goods. There will be stocks of partly
finish goods. Raw material and stores.
Inventories constitute the most important part of current assets of a large
majority of companies in India. On an average. Inventories are approximate 60%
of current assets in public limited companies in India. Because of large sizes of
inventories maintained by firms. A considerable amount of funds is required to be
committed to them.
A firm neglecting the management the management of inventories will be
jeopardizing its long run profitability and may fail ultimately. It is possible for a
company to reduce its levels of inventories to a considerable.

Project

Nature Of Inventories
Inventories are stocks of the product a company is manufacturing for
scale and components that make up the product. The various forms in which
inventories exits in a manufacturing company are :

Raw material

Work in process

Finish goods

Raw material

Raw material are those basic inputs that are converted into finished product
through the manufacturing process. Raw materials inventories are those units
which have been purchased and stored for future production.

Project
Work in-process

Work in process inventories are semi manufactured products. They present

products that need more work before they become finished product for sale.

FinishGoods

a)

Finish goods inventories are those completely management manufactured

products which are ready for sale stocks of raw materials and work in- process
facility production while stock of finish goods ,

b)

Its required for smooth marketing operations. Thus inventories serve as a link

between the production and consumption of goods .

The levels of three kinds of inventories for the a firm depend on the nature
of its business. A manufacturing firm will have substacally high levels of all three
kinds of inventories while a retail or whole share firm will have a very high level
of finish goods inventories and no raw material and work in process inventories.

Project
Firm also maintained a fourth kind of inventory. Supplier or stores and
spares. Suppliers include office and plant cleaning material like soap. Booms. Oil
fuel light bulbs etc. there material are directly enter in production. But are
necessary for production process.

Project

Project

NEED TO HOLD INVENTORY

The questions of managing inventories arises only when the company
hold inventories. Maintaining inventories involves typing up of company s funds
and incurrence of storage and handling costs. If it is expensive to maintain
inventories why do companies hold inventories ?
There are three motive of inventories.

Transaction motive

Precautionary motive

Speculative motive

1.

Transaction motive:

Transaction motive emphasizes the need to maintain inventories to facilitate

smooth production and also sales operations.
2.

Precautionary motive

Precautionary motive necessitate holding of inventories to guard against the risk

of unpredictable change in demand and supply force and other factors.

Project
3.

Speculative motive

Speculative motive influence the decision to increase levels to advantage of price

fluctuation .

Project

Inventory management techniques

In managing inventories the data firms objective should be in consumers
with the share holder wealth maxima ion principal. To achieve this the firm should
determination the optimum level of inventory. Efficiently controlled inventories
make the firm. Flexible inefficient inventory control results in unbalanced
inventory and inflexibility the firm may sometime run out of stock and sometimes
may pipe up unnecessary stocks. This increase the level of investment and makes
the firm unprofitable.
To manage inventories efficiently answers should be sought to the following to
two questions:

How much should be adored?

When should it be adored?

The first question how much to order. Relates to the problem of

determining. Economic order quantity (EOQ) and is answered with an analysis

of costs of maintaining certain level of inventories. The second when to order.
Arises because of uncertainty and is a problem of determining the re-order poin

Project

Economic Order Quantity (EOQ)

According to EOQ approach optimal level of investment of inventory is
one where total cost of inventory comprising carrying and acquisition costs will be
minimum. This is also known as economic order quantity. the approach begins
with analysis of behaviorally relationship between carrying cost and acquisition
cost and different levels of ordering inventories . thus .the cost of carrying raw
materials. Storage cost and servicing cost tends to rise as the size of the order
quantity increases.
The net effect of these rises and falls or total cost will depend on the
magnitude of the changes in those related costs.
Regarding behavioral changes in related costs in carrying different levels of
inventories. Typically it is observed that cost for acquiring initially burger amounts
of inventories tends to fall more marketing than the ratio of increase in carrying
costs the combined effects of these changes will result in a decline in total cost of
inventory with increase in size of the inventory.
Total inventory cost at this point will be maintain as it will show a rising
tendency with further increase in order quantity.

Project

Reorder point
The problem how much to order is solved by determining the economic
order quantity . yet the answer should be bought to the second problems whom to
order. This is a problem of determining the reorder point. The reorder point under
certainty .we should know

Lead time

Average usage and

Economically order quantity

Lead time is the time normally taken in replenishing inventory after

the order has been placed. By certainly we mean that usage and lead time do not
function under such a situation . Reorder point is simply that inventory level which
will be maintained for consumption during the level time is:
Re- order point = lead x average usage.

Project

OBJECTIVE OF INVENTORY MANAGEMENT

The firm is faced with the problem of meeting two conflicting needs: To maintain a large size of inventories of material and work in-progress for

efficient and smooth production and of finished goods for uninterrupted

sales operations.
To maintain a minimum investment in investment to maximize profitability.

Both excessive and in adequate inventory are not desirable. These

are not danger points with in which the firm should avoid. The objective of
inventory management should be to determine and maintain optimal level of
inventory investment. The optimal level of inventory will lie between will lie
between the two danger points of excessive and inadequate inventories.
The firm should always avoid a situation of over investment or under
investment in inventories. The major dangers of over investment are :
a)

Unnecessary tie up of the firm s funds and loss of profits.

b)

Excessive currying costs and

c)

Risk of liquidity.

Project
Excessive inventories carried for long period increase chance of loss of liquidity. It
may not period increase chances of loss of liquidity. It may not be possible to sell
inventories in time and at full value. Raw material are generally difficult to sell as
the holding period increase. These are exceptional circumstances where it may pay
to the company to hold stocks of raw materials. This is possible under condition of
inflation and security difficulties may be faced to dispose of finished goods
inventories as time lengtheners.

Maintaining an inadequate u levels of inventories is also dangerous. The

consequence of under investment in inventories are :
a)Production hold ups and
b)Failure to most delivery commitments.

Inadevate

raw material and work-in process inventories will result in frequent

production interruptions . similarly if finished goods inventories are not sufficient

to meet the demand of customers regularly. The may shift to competitors .which
will amount to a permanent loss to the firm .

Project
The aim of inventories management. This should be to avoid excessive and
inadequate levels of inventories and to maintain sufficient inventories for the
smooth production and sales operation. Efforts should be place an order at right
time with the right source to acquire the right quantity.

An effective inventory management should :

ensure a continuous supply of raw materials is periods of short supply and

anticipate price changes .

maintain sufficient stocks of raw material in period short supply and

anticipate price changes.

Maintain sufficient finished goods inventory for smooth sales operation and

efficient customers service.

Minimum the carrying cost and time and
Control investment in inventories and keep it at an optimal level.

Project

RESEARCH METHODOLOGY
INTRODUCTION :
Research in common per lance refers to a search for knowledge, once can
also define research as a scientific and automatic search for pertinent information
on a specific topic, in fact, research is an art of scientific investigation or inquiry
specially through search for new facts in any branch of knowledge . some people
consider research as a moment from the known in the unknown. It is actually a
voyage of discovery.

Research is an academic activity and as such the should be used in a

technical sense. According to Clifford woody research compares defining and
refunding problems , formulating hypothesis or suggested solutions collection
organizing and evaluating date .making deduction and conclusions the at last
carefully testing conclusion to determine whether they fit the formulating
hypotheses , research is an original contribution to the existing stock of knowledge
making for a its advancement .

Project
it is the pursuit of truth with the help of study. Observation comparison and
experiment in short the search for knowledge through objective and systematic
method of finding solution to problem is research. The systematic approach
concerning generation and the formulation of theory is also research.

Project

TYPES OF DATA & SOURCE OF

DATA COLLECT

There are two types of data :

1.Primary data
2.Secondary data

But here the present data is based on secondary data. The data relating to this
study are collected through following secondary sources.

Published annual reports of SGEL.

Books and journals of carious authors.

Internet

www.glasscoat.com

Project
for the purpose of analysis of balance sheet and profit and loss Account.
They have been rearrange and presented in a condensed from the figures
taken from annual reports of SGEL are converted in to thousand to facilitate
comparison and decimals are adjusted accordingly.

Project

SIGNIFICANCE OF THE STUDY

In this study attempt is made analysis financial of well established glass lined
unit. So this study is mainly useful to management competitors. Investors
suppliers. Bankers creditors tax authorities researchers and employee of the
company.

Project

Limitation of the study

There are limitation as below :
1. This study is based on secondary data taken from published annual reports.
2. The time period of the study is limited in only five years starting from 2004-

05 to 2008-09
3. The study is undertaken to analysis financial statements which have their

own limitations.

Project

DATA ANALYSIS

The dictionary meaning of the inventory is stock of goods. But the generally
accepted meaning of the ward goods. But in accounting language. is the stock of
Finished goods only. In a production organization how ever in addition to stock
to stock of finished goods. There will be stocks of partly finished goods. Raw
Material and stores.

Inventory may be defined as the material which are either scalable in the
market or useable directly or in directing in the manufacturing process and it also
include the items which are ready for making finished goods by some other
procures or composing them either by the concern itself or by outside parties.

Project

INVENTORY AS A COMPONENT OF CURRENT

ASSESTS

PARTICULAR AMOUNT

%AGE

2010-11
Inventories

204753369

62.61

Loans and advances

50475036

15.43

Cash and bank balance

24611608

7.53

Sundry debtors

472021286

14.43

2009-10
Inventories

204753369

62.61

Loans and advances

50475036

15.43

Cash and bank balance

24611608

7.53

Sundry debtors

472021286

14.43

Project

2008-09 :
Inventories

204753369

62.61

Loans and advances

50475036

15.43

Cash and bank balance

24611608

7.53

Sundry debtors

472021286

14.43

From the above details we can see that inventory form a large component of
current assets .
So inventory is a very important components of current assets .it forms nearly
half of current assets.

INVENTORY MANAGEMENT AT SWIS

GLASSCOAT
PHYSICAL VERIFICATION OF
INVENTORY :

There are three of physical verification continuous . periodical and skaldic .

a) The procedure of physical verification of u inventory followed by the

management are reasonable and adequate in relation to the size of the

company and the nature of its business.
b) The physical verification of inventory is that the company is maintaining

proper records of inventory and number of material description were noticed.

In swiss glass coat verification system . in this system . the whole of the country
inventory is checked usually at the end of given period which is normally the close
of the financial year. Inventory is verified on the data of balance sheet thus the
inventory is checked only in a year.

Project

Project
Inventory Turnover Ratio :

Inventory turnover is the ratio of cost of goods sold to average inventory. It is an

activity / efficiency ratio and it measures how many times per period, a business
sells and replaces its inventory
Formula :
Inventory turnover ratio is calculated using the following formula:
Cost of Goods
Inventory Turnover =

Sold
Average Inventory

Average Inventory is calculated as the sum of the inventory at the beginning and at
the end of the period divided by 2.
Cost of goods sold figure is obtained from the income statement and the values of
beginning and ending inventory are obtained from the balance sheets at the start
and at the end of the accounting period.

Project
Analysis :
Inventory turnover ratio is used to measure the inventory management efficiency
of a business. In general, a higher value indicates better performance and lower
value means inefficiency in controlling inventory levels. A lower inventory
turnover ratio may be an indication of overstocking which may pose risk of
obsolescence and increased inventory holding costs. However, a very high turnover
may result in loss of sales due to inventory shortage. Inventory turnover is different
for different industries. Businesses which trade in perishable goods have very
higher turnover with comparison to those dealing in durables. A comparison would
be fair only if made between businesses of same industry.

Project
Examples:
Example 1:Dring the year ended December 31, 2010 Loud Corporation sold
goods costing $324,000. Its average stock of goods during the same period was
$23,432. Calculate the company's inventory turnover ratio.
Solution
Inventory Turnover Ratio = $324,000 / $23,432 = 13.83

Example 2: Cost of goods sold of a retail business during a year were $84,270;
Its inventory at the beginning and at the ending of the year was $9,865 and $11,650
respectively. Calculate the inventory turnover ratio of the business from the given
information.
Solution
Average Inventory = ( $9,865 + $11,650 ) / 2 = $10,757.5
Inventory Turnover = $84,270 / $10,757.5 = 7.8

Project

INVENTORY RELATED RATIO

Inventory as percentage of total Assets :(RUPEES)

YAER

INVENTORY

TOTEL ASSETS
(CA + EA)

INVENTORYS
%
Of total Assets
44.01

2010-11

204753369

465230715

2009-10

129807855

408812756

31.75

2008-09

121946559

378135350

32.24

Project

INTERPRETATION
From the above calculation , we can see that inventorys percentage of total assests
has been continuously increasing during the last five year.
Inventory as a largest components of current assets can be a profit center. If the
finance manager concentrate more on it inventory is a direct contribution if it is
managed well.

Project
INVENTORY TURN OVER RATIO :

1.uInventoryTurn over Ratio :

sales

Average Total Inventory

2.u Inventory holding days

360
Inventory Turnover Ratio

Year

Inventory turnover ratio

2010-11

415329071= 2.48 times

167280612

Inventory holding days

=

360
=

2009-10

325402083
98301049

3.31times

=
=

2008-09

333954308 = 3.81 times

87668157.5

2.48
145 days
36
9.31
109days

360
3.8

Project
inter/inventory :
The inventory turnover ratio in swiss glass coat is not consistent. In some
year it increase and again it falls during the last five years.

Inventory holding days at present has increased from last year also we
see the graph we can conclude that after year 10-11 it has a remarkable leverage
in the inventory holding time also after year09-10 till year it is on a
devisal slope which is indirectly a profitable phase for the company. There he in
year 08-09 it is so days which is profitable to the company.

Project
Stores and spares turnover ratio
1. Stores and spares turnover ratio

=
Ave .stores & spares

2. stores and spares holding days

Year
2008-09

sales

360
Stores and spares turn over ratio

Stores & Spares turn over ratio

415329071
973874.5

= 426.47 times

S&S holding days

=
=

2007-08

406427629
1065413.5

= 381.47 times

=
=

2006-07

326165690
1745493.5

= 174.58 times

=
=

360
426.47
0.84 days
360
318.47
0.94 days
360
174.78
2.06 days

Project
Finished goods turnover ratio :
1 .finished goods turnover ratio =
Average finished goods/inventory
2.u Finished goods holding days =

Year

2010-11

sales

360
Finished goods turnover ratio

finished goods turnover ratio

415329071
170609468

finished goods holding days

= 24.36 times

360
24.33
15days

=
2009-10

406427629 = 65.16times
6237768

360
65.16
6days

=
2008-09
8951717.5

326165690

= 36.44 times =
36.44

360
=

2007-08

325402083 = 42.59times
7640275.5

10days
360

42.59
8days

Project
Interpretation :

After stores and spares turnover ratio the finished goods turnover ratio forms a
second largest of inventory ratios.

During the largest last five years. The finished goods turnover ratio is not
consistent due to increase and decrease in the average finished goods inventory.
This finished goods holding days at present has not present has increased
compared to last years. And if we see the graph we can revert that after 07-09 it
has a remarkable increase in the finished time by 6 days to 15 days. it is not
profitable for the business. because its the period for which the business load
the punished good in land.

Project

Component growth of sales and inventory :

year
2010-11

sales
415329071

% growth
2.19

inventory
% growth
204353369 57.73

2009-10

406427629

24.6

129807855a6.44

2008-09

326165690

0.23

121946559a34.1

2007-08

325402083

7.43

90938668

86.06

2006-07

333954308

41.55

1056634.3

51.66

Interpretation
In 2008-09,the growth percentage of raw material is increasing and
decreasing over the last five years, in year 2007-08 was highest growth as he in
year 04-05, it was lowest and as if use we compare to 07-08 to 08-09 there is
decrease in the growth rate by 21.29 % but now company and trying to increase
the growth rate.

Project

GROWTH IN DIFFRENCE COMPONENTS OF INVENTORY

YEAR

RAW MATERIAL

GROWTH %

2010-11

49971093

77.51

2009-10

64464838

99.3

2008-09

64917543

35.7

2007-08

47837979

87.37

2006-07

54752234

30.86

Interpretation :
The growth rate percentage of raw material is increasing and
decreasing over the last five years. In year 2007-08 it was highest growth as
he in year 04-05 it was lowest and as if use we compare to 07-08 to 08-09
there is decrease in the growth rate by 21.29 % but now company are trying
to increase the growth rate.

Project

Work in process

YEAR

WORK IN PROCESS

GROWTH %

2010-11

121091290

92.37

2009-10

62947318

90.00

2008-09

44818352

33.10

2007-08

33671295

81.08

2006-07

41529034

73.42

Interpretation

In last five year, the growth rate percentage of work in process is increasing
and decreasing the highest percentage in work in process growth is in year 08-09
while is increase from 07-08 which is 51.93 %. As from date we can also see that
it was also highest in year 05-06.

Project

STORE AND SPARES :

YEAR

STORES ANS SPARES

GROWTH %

2010-11

852215

77.70

2009-10

1095534

5.82

2008-09

1035293

38.32

2007-08

2701330

22.56

2006-07

829655

2.38

Interpretation

The growth rate is not consistent in last five year in stores and spares
growth there is a constant fluctuation at an highest rate after year 08-09 to 09-10
there is increase by 66.50 % as in year 045-05 it was lowest at the rate of 2.38 %.

Project

FINISHED GOODS :
YEAR

FINISHED GOODS

GROWTH %

20010-11

32838771

2425.73

2009-10

1300165

11.63

2008-09

111753371

66.10

2007-08

6728064

78.67

2006-07

8552487

177.78

Interpretation
In last five years, years the growth rate is also not consistent. Here the
finished goods growth rate in 08-09 is highest and in year 07-08 it was lowest at
11.63% .after year 04-05 till a years 06-07 is goes on rate but as compare to year
06-07 in year 07-08 it decrease by 54.57

Project

Current ratio

Current ratio =

current assets
Current liabilities

2010-11

32704298
146254620

2.23:1

2009-10

274790330
137946220

1.97:1

2008-09
=
238872620
114674435

2.08:!1

Project

Liquidity ratio :-

Liquidity ratio

liquidity assets inventory

Liquidity liabilities

2010-11

= 377042198 204763369
146254620

= 0.83:1

2009-10

= 374790330 129807855
139746220

= 1.03:1

2008-09

238872620 121946559 = 1.01.1

1145744

Interpretation :The standard ratio current ratio is 2:1 here. The ratio is 2.23.:1 it is good
for the company and its soundness. The liquidity ratio is 1:1 . and here in the
company ratio is 0.83.1 which is near to 1:1 this shows good position f the
company.

Project
Inventory records :-

Different types of industries have adopted different methods of record

.keeping and maintenance of account of inventory due to difference in nature and
size of manufacturing u concern. Items included in the list of inventory.
government policies and restrictions imposed on various forms of inventories.

Inventory records help to solve the problem of when to order and how
much to order by giving proper accounting information about inventories both in
quantity and value . maintain of proper inventory records is necessary for
successful of inventory management . normally a certain process of inventory
handling is followed which in its nature course forms the basis of inventory
recording and accounting system.

Every records has its own important and gives adequate information for the
purpose of inventory control . in swiss glass coat proper records of inventory are
maintained .there are adequate internal control procedure for the purchase of
inventory.

Project

Conclusion
Swiss glass coat limited is a public limited company producing a wide range
of process equipment in glass coat line construction.
Its was the ISO certificated by IROA to needs of Indian markets.
It has many shop set up material handling facilities .cutting facilities.
Testing facilities and any other such arrangement which creates the proper glass
lined produces.
Employees of company are 180 only so there are very small group and having
good relations with each other which created an environment of peace in the
company and so the productivity Is high.
The report on inventory management is concerned with decision relating
problems that arises in attempting to manage the raw material and finish goods. It
lubricates the wheels of productions. This facilities the industrial units to have
continuous production.
I have observed that the SWISS GLASSCOAT EQUIPMENT LIMITED
Had strong financial position and inventory management.

Project

Suggestion

1. Liquidity position of SWEL is not good because the average current ratio

and liquid ratio are lower than the stander . so management has to take steps
to improve there ratio by maintaining proper balance of current assets and
current liability.
2. SGEL should review its credit policy and there by to shorten collection

period.
3. SGEL has try to increased the export of glass lined equipments. The

company has to create the market both inside and outside the country and
there by capture more market share.
4. The competition is increasing in glass line industry had in such a situation

SGEL should concentrate more on its marketing policies.

5. SGELS good relationship with employees and dealers strength of the

company. Suppose the competitors .the company should introduce new

incentive schemes in monetory as well as non-monetary forms for employed
and declares to maintain its position of market leader.

Project

Finding
Glasing stock of raw materials. Stores and spares packing materials is valued at
cost work in process is valued at cost plus procurement and production overhead.
Finished goods ,stocks in valued at cost or market value whichever is lower.

Project

Inventory financing
Investment in inventories normally accounts for about one third value or total
assets and for an average manufacturing concern , cost of inventories about one
half of the product cost.

Inventory is the stock of finished goods which meets the operational and
Maintenance requirement so inventory financing is very important .

Project

HOW DO SWISS GLASSCOAT OBTAIN CAPITAL FOR

INVENTORY FINANCING?

1. The company has taken unsecured loans from parties and firms covered in

the register maintained 301 of the companies act 1956.

2. Working capital loan from:

- oriental bank of commerce.

- HDFC bank limited .
- term loan from oriental bank of commerce.
- term loan from HDFC bank ltd.
3. working capital loan and term loan from bank are secured by equitable
Mirage of land factory handling and assuming of inventories. Plant and
Machineries and receptacles.