projedct report on inventory management

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M.P.E SOCIETY’S
SHREE DHARMASTHALA MANJUNATHESHWARA
COLLEGE OF ARTS, SCIENCE, COMMERCE, BCA
AND BUSINESS ADMINISTRATION
HONNAVAR
(Re-accredited with grade “A” by NAAC in Third cycle)
A Project Report On
Inventory Management
With Special Reference To
G.R Industries
Industrial Estate, Kumta.
Under the Guidance of
Mrs. FLOSSY FERNANDES
Lecturer
Department of BBA
Submitted By
Mr. Danish Raza
Reg.No.: 16N12804
BBAVI Semester
Submitted in partial fulfillment of requirements for the award of degree,
“Bachelor of Business Administration” to
KARNATAKA UNIVERSITY, DHARWAD.
2018-2019

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M.P.E SOCIETY’S
HONNAVAR
PRINCIPAL’S CERTIFICATE
This is to certify that Mr. Danish Raza, is a bonafied student of our S.D.M.College, Honnavar
during the academic year 2018-2019. He has carried out his in-plant training on the topic
“Inventory Management” with special reference to“G.R industries, Industrial Estate,
Kumta” and have prepared project report on for the partial fulfillment of BBA Degree of
Karnataka University, Dharwad.
Place: Honnavar Principal
Date: Dr. Vijayalaxmi .M. Naik

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M.P.E SOCIETY’S
HONNAVAR
GUIDE’S CERTIFICATE
This is to certify that the report entitled “Inventory Management” with special reference to “G.R
Industries”, Industrial Estate, Kumta is a work carried out by Mr. Danish Raza under my
guidance and supervision.
Place: Honnavar Signature of the Guide
Date:
Flossy Fernandes
Department of BBA

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Declaration
I, Danish Raza, hereby declare that the report entitled “Inventory Management” with special
reference to “G.R Industries”, Industrial estate, Kumta, prepared by me under the guidance of
Mrs. Flossy Fernandes, Faculty of B.B.A. Department, SDM Degree College and external
assistance by Proprietor of G.R Industries.
I also declare that this Internship Report is towards the partial fulfillment of the university
regulations for the award of degree of Bachelor of Business Administration by Karnataka
University, Dharwad.
I have undergone this internship for a period of four weeks. I further declare that this internship is
based on the original study undertaken by me and has not been submitted for the award of any
degree/diploma from any other University/Institution.
Place: Honnavar
Date: Signature of the Student

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Acknowledgement
My profound thanks to Mr. Gopalrishna Ugru, Proprietor, G.R Industries who took keen interest
in explaining concepts and imparting necessary inputs pertaining to the project work, without
which, it would not have been possible for me to complete this work. I am also thankful to staff
and all the employees of the organization for their co-operation in answering the questionnaire
required to complete the project work.
I wish to express my profound gratitude to Dr. Vijayalaxmi.M.Naik Principle, S.D.M College,
Honnavar, for her constant encouragement throughout the completion of the study.
It is my foremost duty to express my wholehearted thanks to my guide Mrs.Flossy Fernandes,
Lecturer, S.D.M College, Honnavar for her valuable guidance, support and motivation during the
course of this project work. Her inspiration at every stage of my work has helped me immensely
in completion of this project work and preparation of report.
I wish to express my profound gratitude to Mr.Shrikant Bhat, HOD, BBA Department, for his
constant encouragement throughout the completion of the study.
My special thanks to faculty members of the department for their constant support and
encouragement, which contributed towards the successful completion of the work.
Last, but not the least, I am indebted to my family members and friends for their blessings and
encouragement.
Place: Honnavar
Date: Danish Raza

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TABLE OF CONTENTS
Chapter
No
Particulars Page No
1. Design Of The Study.
1.1 Need For The Study
1.2 Objective Of The Study
1.3 Methodology
1.4 Limitation
1-2
2. Industry Profile.
2.1 Indian Chemical Industry
2.2 Basic Classification Of Chemical Industry Sector
2.3 Advanced Classification of Sectors of Chemical Industry
2.4 Impact Of Chemical Industry
2.5 Importance Of Chemical Industry In Pharmaceuticals
3-7
3. Company Profile.
3.1Company Profile At Glance
3.2 Background And Inception Of The Company
3.3 Nature Of Business Carried
3.4 Vision, Mission And Quality Policy
3.5 Production Process
3.6 Product Profile
3.7 Area Of Operation
3.8 Ownership Pattern
3.9 Infrastructure Facility
3.10 Competitors Information
3.11 Organizational Structure
8-17
4. SWOT Analysis. 18-19
5. Conceptual Framework 20-27
6. Data Analysis And Interpretation 28-44
Findings, Suggestions, Conclusions 45-47
Bibliography 48
Annexure 49-54

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Chapter 1
Design of the Study

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1.1 Need for the study
Inventory is very vital to every company, without inventory no company would survive. Keeping
inventory of sufficient stock will help to face lead time component, demand and supply
fluctuations and any unforeseen circumstance in the procurement of material. The aim of this
study is to analyze in detail the inventory techniques, methods of inventory calculations, and to
know how a company manages its inventory, as well as the working process, structure and
policies of G.R Industry and to analyze the reports of the company and to suggest some measure
to overcome its difficulties relating to its inventories.
1.2 Objectives of the study
▪ To study different techniques used for inventory management.
▪ To study the maintaining of inventories in the organization.
▪ To study the inventory management based on the ratios.
▪ To analyze financial reports of GR Industries specific with inventory management.
▪ To suggest the measures for improving the inventory level.
1.3 Methodology
a. Primary data:
▪ Face-to-face interaction with management executive of the company
▪ Few of the information collected by personal observation.
b. Secondary data:
▪ Electronic media, like internet.
▪ Reports and documents provided by the manager of the industry.

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1.4 Limitations of the study
▪ The time constraint was one of the major limitations of the study.
▪ Some of the informationwere treated confidential by the manager and hence could not get in
detail.

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2.1 Indian Chemical Industry
The Early Years of Chemical Industry:
Chemicals have been manufactured for thousands of years. The history of the chemicals industry
can be traced back to ancient times, when alkali and limestone were combined to make glass, and
sulfur and saltpeter became an explosive that is similar to modern gunpowder. Middle Eastern
artisans used to refine alkali and limestone for the production of glass in as early as 7,000 B.C.
and Phoenicians produced soap in the 6th century B.C. The Chinese developed black powder
around the 10th century A.D and it was used as a primitive explosive. In the middle ages,
alchemists produced small amounts of chemicals and by 1635 the Pilgrims in Massachusetts were
producing saltpeter for gunpowder and chemicals for tanning. But large-scale chemical industries
first developed in 19th cent.
Industrial Revolution:
The emergence of the chemical industry as an independent branch is associated with the industrial
revolution. The first sulfuric acid plants were built in Great Britain in 1740 (Richmond), France in
1766 (Rouen), Russia in 1805 (Moscow Province), and Germany in 1810 (near Leipzig). The
development of the textile and glass industries prompted the initiation of soda production. The
first soda plants were built in France in 1793 (near Paris), Great Britain in 1823 (Liverpool),
Germany in 1843 (Schonebeck), and Russia in 1864 (Barnaul). In the mid-19th century, artificial
fertilizer plants appeared in Britain (1842), Germany (1867), and Russia (1892).
In 1823, British entrepreneur James Muspratt started mass producing soda ash (needed for soap
and glass) using a process developed by Nicolas Leblanc in 1790. Further advances in organic
chemistry in the last half of the 19th century, allowed companies to produce synthetic dyes from
coal tar for the textile industry as early as the 1850s. In the 1890s, German companies began mass
producing sulfuric acid and, at about the same time, chemical companies began using the
electrolytic method, which required large amounts of electricity and salt, to create caustic soda
and chlorine.

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The Early Twentieth Century:
Man-made fibers changed the textile industry when rayon (made from wood fibers) was
introduced in 1914; the introduction of synthetic fertilizers by the American Cyanamid Company
in 1909 led to a green revolution in agriculture that dramatically improved crop yields. Advances
in the manufacture of plastics led to the invention of celluloid in 1869 and the creation of such
products as nylon by Du Pont in 1928. Research in organic chemistry in the 1910s allowed
companies in the 1920s and 30s to begin producing chemicals for oil. Today, petrochemicals
made from oil are the industry's largest sector. Synthetic rubber came into existence during World
War II, when the war cut off supplies of rubber from Asia.
Among the economically developed capitalist countries, the principal producers of chemicals are
the USA, Japan, the Federal Republic of Germany, France, Great Britain, and Italy. They
contribute approximately three-fourths of the capitalist output of chemical products. The
development of the chemical industry has proceeded extremely unevenly; as a result, significant
changes have occurred in the relative production capacities of the chemical industries of these
countries.
The Late Twentieth Century:
In the postwar years the USA’s position as leader among the capitalist countries in chemical
production was weakened. In 1950 the USA accounted for 54 percent of the total capitalist
production; in 1973 it accounted for only 35 percent. In the 1960’s Japan and the Federal Republic
of Germany advanced to second and third places, respectively, in volume of chemical production.
In the 1960s, there was an increase in the production of organic chemicals from oil and natural
gas. Many oil companies, such as BP, Shell, and Exxon, also began producing chemicals that
were derived from petroleum feedstock. During the 1970s, oil prices increased drastically, which
increased the cost of manufacturing petrochemicals and polymers. Many chemical companies
began to diversify. The oil crisis eventually created a consolidation in the industry as increased
costs, lowered economic activity, and a reduced rationalization for investing in major product
innovations took hold of the industry.

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Growth of Chemical Industry in Developing Nations:
Beginning in the 1980s, U.S. corporations faced expanding competition from foreign producers,
including some Third World oil producers who have set up their own oil refining and
petrochemical industries. In 1997 the U.S. chemical industry produced about $389 billion worth
of products and employed 1,032,000 workers. It exported about $71 billion worth of chemicals.
During the 1990s, intense growth in the industry began to take place in developing regions, such
as South Korea, Taiwan, Eastern Europe, and the Middle East.
The Twenty-first Century:
By this century, companies in the chemical industry include large, medium, and small companies
located all over world. Companies grew with their sales of chemical products and many
companies had sales greater than $10 billion dollars and for some of these companies the chemical
sales represented only a portion of their total sales. The chemicals industry established its
importance in national economies and grew to about $3.7 trillion USD in sales. Millions of people
got employed by the chemicals industry in production, research and development, as well as
chemists, engineers, and technicians. Though the business of chemistry is worldwide in scope, the
bulk of the world’s $3.7 trillion chemical output is accounted for by only a handful of
industrialized nations. The United States alone produced $689 billion, 18.6 percent of the total
world chemical output in 2008.
2.2 Basic Classification of Chemical Industry Sectors
Fundamentally, the chemicals industry can be divided into two sectors; commodity/basic
chemicals and specialty chemicals. Commodity chemicals are manufactured by many different
companies however the end product is generally the same with very little variations. Specialty
chemicals are typically made to suit the needs of a specific customer, and are generally only
available from a few suppliers. These chemicals are often protected by patents.
Basic/Commodity Chemicals: They are also called basic chemicals, are typically inexpensive
and include polymers, bulk petrochemicals, basic industrial chemicals, inorganic chemicals, and
fertilizers. Polymers make up the largest segment of this sector. Commodity chemicals are
generally made in large volumes.

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Specialty Chemicals: They are also called fine chemicals; include industrial gases, adhesives,
sealants, industrial cleaning chemicals, coatings, and electronic chemicals. A Specialty Chemical
is a chemical produced for a specialized use. They are produced in lower volume than bulk
chemicals, of which petrochemicals, made from oil feedstock, are the most common. However,
both are produced in a chemical plant. Some examples of specialty chemicals are adhesives,
additives, antioxidants, corrosion inhibitors, cutting fluids, dyes, lubricants, pigments, etc. These
chemicals are generally more expensive than commodity chemicals. Chemicals are made from
elements and every element has a unique set of physical and chemical properties. Specialty
chemists understand how to combine certain elements that result in a chemical with the required
properties.
2.3 Advanced Classification of Sectors of Chemical Industry
Further classification of chemicals industry can be done to separate Life Science Chemicals,
Science and Technology Chemicals and Commodity Chemicals. Definition of these two sectors is
provided below:
Life Science Chemicals: These are differentiated biological and chemical substances used to
induce specific outcomes in humans, animals, plants and other life forms. The major products of
this segment include agrochemicals, pharmaceuticals and biotechnology products. Life sciences
(about 30 percent of the dollar output of the chemistry business) include differentiated chemical
and biological substances, pharmaceuticals, diagnostics, animal health products, vitamins, and
pesticides. Life science products are usually produced with very high specifications and are
closely scrutinized by government agencies such as the Food and Drug Administration. Pesticides,
also called "crop protection chemicals", are about 10 percent of this category and include
herbicides, insecticides, and fungicides.
Science and Technology Chemicals: These products include advanced materials that transform
current technologies. They enhance the characteristics of traditional specialty chemical products,
as listed above.

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2.4 Impact of Chemicals Industry
Applications of chemical science have contributed significantly to the advancement of human
civilization by providing a growing understanding and ability to manipulate chemical molecules.
Chemistry controls the tastes and flavors of the food we eat, the scents we wear, the look and feel
of our clothes and how the world appears around us. Chemical behavior and the interaction of
elements and molecules give us the energy we need to heat our homes, to drive our cars and to
power our lives. This chemical behavior governs the distribution of the natural resources that we
need and industrial processes required to extract them. In turn we rely on chemistry to turn them
into products we rely on every day. Chemical Industry produces 70000 different types of products
that are used by individuals as well as other industries.
2.5 Importance of Chemicals Industry in pharmaceuticals
Biological science involves studying the science of life. However, chemistry is important to a
variety of sub-disciplines. These can include health science, the discipline of applied science that
deals with human and animal health, looking at the how the body functions and using this
knowledge to improve health and cure diseases. The study of pharmacology, determines how
substances (typically pharmaceuticals) interact with living organisms to produce a change in
function. Biochemistry is the study of the chemical substances and vital processes occurring in
living organisms, studying bio-molecules such as proteins, lipids and carbohydrates. Molecular
biology is looking at biology at the molecular level, analyzing the processes that control cells,
including replication, transcription and translation of genetic material within cells. This discipline
also includes biotechnology, the use of biological systems to modify or derive new products,
typically drugs or foodstuffs.

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3.1 Company profile at glance
Name of the Firm G.R. Industries
Established in the year 2008
Address Q1&Q2 Industrial Area, Hegde Road,
Kumta (U.K).
Founder Shri. Gopalkrishna Ugru
Type of unit Small Scale Industry
Ownership pattern Sole Proprietor
Name of the Proprietor Shri. Gopalkrishna Ugru
Borrowed capital from SBM 30,00,000
Total Invested capital 70,00,000
Nature of Industry Manufacturing Industry
Man power required 14
Working hour 3 shift in a day
Total area 11,000 Sq.ft
3.2 Background and inception of the company
G.R. Industries is a small scale proprietary company owned by Mr. Gopalkrishna Ugru, Resident
of Baggon, Kumta. The company is located at Plot Q1 and Q2 Industrial Area, Hegde Road,
Kumta. in an area of about 1000 Sq.mtrs. A company was formed in August 2008
The company was stated with an initial investment of Rs. 70,00,000, the capital borrowed by the
bank Rs. 30,00,000 from State Bank of Mysore, Kumta. Mr. Ugru has retuned back to his native
place Kumta, from North Kanara District in 2008, with the vast experience gained over 25 years
in many projects he has chosen to set up a small-scale industry suitable to Kumta region in the
initial phase. After careful study of many projects he has chosen to set up the Magnesium
Chloride, Potassium Chloride, Sodium Chloride and cyclopentanone plants on following
considerations.

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▪ Virtually no waste generation and use of any harmful materials.
▪ No high temperatures or pressures which issafe to work.
▪ Extremely simple process-Requires only few unskilled/semiskilled labors, which is easily
available in Kumta region.
▪ Products are mainly catering to Pharmaceutical and Food industries. Hence everlasting
market.
▪ Low capital cost as only few of the equipment are needed.
▪ Low gestation period.
3.3 Nature of business carried
G.R Industry is a small scale industry which is engaged in manufacturing bulk chemicals mainly
required for Pharmaceutical industry. This is a sole proprietor industry. They mainly produce four
types of chemicals in bulk, such as: sodium citrate, potassium chloride, magnesium chloride,
sodium acetate. They supply their products mainly to M.N Chemicals Ltd. Kumta.
3.4 Vision, Mission and Quality Policy
Vision:
▪ Company aims at rendering smooth, reliable and consistent service to its consumers and
maintains good industrial leadership.
Mission:
▪ To promote manufacturing top quality products and delivering them in time.
▪ Provide promising career and personal development opportunities to all its employees.
▪ Honesty and hard work is the mission of the company.
Quality Policy
▪ Raw material and finished product test.
▪ Analyze the product in the process control laboratory.
▪ Pollution monitoring in the pollution monitory wing.
▪ Company gives more attention on increase in the quality of product.

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3.5 Production Process
3.5.1 Sodium Citrate
Citric acid Caustic soda
Reaction in reactor
Crystallization of product
Collection of product
Centrifuging of crystals
Packing in bags

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STEP 1: Sodium citrate is manufactured by adding citric acid to caustic soda in controlled
manner.
STEP 2: The reaction is exothermic and needs no external heat, the reaction takes place to form
sodium citrate.
STEP 3: The product is allowed to crystallize.
STEP 4: The crystals are collected, centrifuged.
STEP 5: And then packed in drums.

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3.5.2 Cyclopentanone
Raw Material
(Adipic Acid)
Milting at 200Deg.c
in reactor
Addition Catalyst
Heating to
200Deg.c
Veporization of
product
Condensing Product
Vapour In cooler
Collection of Liquid
Product in Drums
Packing in Drums

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STEP 1: The manufacturing process of Cyclopentanone involves melting of raw material and
heating this in presence of catalyst for long time.
STEP 2: The raw material (Adipic Acid, typically a batch is of about 600kg) is poured in the
reactor and melting by heating to 175 degree Celsius.
STEP 3: Then the catalyst is slowly added to this molten solution and heated further (up to
250Degree Celsius).
STEP 4: The product is formed slowly and starts vaporizing.
STEP 5: In this process the rate of reaction is very slow and heating is very slow and the heating
maintained foe about 20 hours.
STEP 6: The product vapors are cooled in a cooler and the liquid product is directly collated in
metallic drums.
STEP 7: Packed in drums.

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3.5.3 Potassium Chloride and Magnesium Chloride
Raw material
Dissolution in water or
mother liquor
Heating to 95Deg.C
Filtering
Cooling
Collection of crystals and
recirculation of mother
liquor
Centrifuging of crystals
Drying
Packing in bags

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STEP 1: Basically the process involves purification of raw material by physically removing the
impurities.
STEP 2: The raw material (potassium chloride) is dissolved in hot water or hot mother liquor at
around 90-95Deg.C in an open vessel.
STEP 3: The material dissolves better in hot condition.
STEP 4: This hot solution is filtered though a bag filter.
STEP 5: Then the filtered solution is cooled in cooler/ reactor where the product is allowed to
crystallize.
STEP 6: These crystals are collected, centrifuged and then dried in dryers before packing or
dispatch. The cooled mother liquor is sent back to dissolution vessel.
The process does not involve any chemical reaction and hence no additional products are formed.
3.6 Product Profile
The following products are manufactured in the company
▪ Sodium Citrate: I P grade (Capacity: 20 M T per month)
▪ Potassium chloride: L.R.G.R.I.P. and A.R. grades (Capacity: 50 M T per month)
▪ Magnesium chloride: I P and other grades (Capacity: 10 M T per month)
▪ Cyclopentanone
3.7 Area of Operation
Company has set up a state of art modern manufacturing facility at the industrial Estate, Kumta,
North Kanara District Karnataka state. Hence this company is concentrating its sales mainly to M
N Chemicals as G.R. Industries is a part of the M N Chemicals group. M N Chemical is a well-
established Bulk Drugs manufacturing company operating for more than 16 years.

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3.8 Ownership Pattern
Mr. Gopalkrishna Ugru is basically an Electrical Engineer by qualification. Mr. Urgu has about 25
years of experience in setting up large and medium scale projects in Petrochemical and Fertilizer
sector. He has worked in Rashtriya Chemicals and Fertilizer Ltd, Mumbai in that Project for 7
years and then moved to Saudi Arabia in 1991. Since 1991 to 2008 Mr. Urgu was involved in
setting up as many as 20 project including green field project as well as expansion/diversification
project.
3.9 Infrastructure Facility
▪ Land and Building
Approximately 11,000Sq.ft land is made available for the proposed project in Plot No. Q1 and Q2
in KISSIDC Industrial Estate, Hegde Road, Kumta 6,000Sq.ft building is proposed for running the
unit. The building cover office works, raw material store, finished product store, packaging space
etc. Building will be constructed or strong foundation with partial covering of RCC and AC Sheet.
▪ Power Supply
Approximately 20HP power is needed for this project. Power supply is already available in the
site. The promoter will also make his own arrangement in installing transformer as per KPTCL
norms.
▪ Raw Material
The procurement of raw material is not a major problem as these raw materials are available in
bulk at Gujarat, Mumbai and Bangalore.
▪ Availability of Man Power
The Project requires semi-skilled and unskilled people. People can be trained easily because the
training given by M N Chemicals. At present 14 employees are working for this industry.

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▪ Water
Water is needed for this project its self-arrangement from bore well.
▪ Transportation Facility
G.R. Industries does not have its own transportation vehicles, but it has the good transportation
facility, for purchase of raw material from Mumbai, Bangalore and Gujarat.
3.10 Competitors Information
Major Competitors to G.R. Industry, Kumta is
▪ J.D. Industry, Belagavi.
▪ Other unorganized sectors.
3.11 Organization Structure
Organization defines the relationship between the owner and the employees. The overall
activities of the company are managed by the managing director himself. He is qualified in B.E.
Manager
Accountant
supervisor Worker

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4.SWOT Analysis
Strength
▪ It has a very good supplier and buyer network.
▪ Quality product is one of the strength.
▪ Owner has relevant experience of 25 years in setting large scale and medium scale industries.
▪ Continuous demand for the product as they supply their product mainly to pharmaceutical and
food companies.
Weakness
▪ High transportation cost for the purchase the raw material.
▪ Raw materials are borrowed from long distance.
▪ Competition from unorganized sector.
▪ There are less skilled workers in organization.
▪ No local market for this product.
SWOT
STRENGTH
WEAKNESS
OPPORTUNITY
THREATS

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Opportunities
▪ Utilizing modern technology.
▪ Maximum utilization of worker force efficiently.
▪ Reducing of production cost with automation.
▪ Opportunity to provide good service.
Threats
▪ Increasing number of competitors.
▪ Risk of uncertainty such as destruction of raw material while borrowing from different states.

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Chapter 5
Conceptual Framework

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5.1 Inventory
Inventory is a term used for describing unsold, unused goods held in the hand of concern during a
particular time for a specified purpose. Inventory is an itemized catalogue or list of tangible goods
or property, or intangible attributes or qualities to support production (raw materials,
subassemblies, work in process, for support activities like repair, maintenance, consumables) for
sale or customer service.
5.2 Types of Inventory
There are five main types of inventory:
▪ Raw materials inventory;
Raw materials inventory are raw materials that your business changes to produce its goods or
services. For example, if you manage an ice cream business, raw materials inventory could
include milk you use to make ice cream. The business importance of raw material as an inventory
is mainly to protect any interruption in production planning. Other reasons can be availing price
discount on bulk purchases, guard against market shortage situation, etc.
▪ Work-in-process inventory;
These are the partly processed raw materials lying on the production floor. They may or may not
be saleable. These are also called semi-finished goods. It is unavoidable inventory which will be
created in almost any manufacturing business. This level of this inventory should be kept as low
as possible. Since a lot of money is blocked over here which otherwise can be used to achieve
better returns.
▪ Finished goods inventory;
These are the final products after manufacturing process on raw materials. They are sold in the
market. There are two kinds of manufacturing industries. One, where the product is first
manufactured and then sold. Second, where the order is received first and then it is manufactured
as per specifications. In the first one, it is inevitable to keep finished goods inventory whereas it
can be avoided in the second one.

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▪ Packing Material;
Packing material is the inventory used for packing of goods. It can be primary packing and
secondary packing. Primary packing is the packing without which the goods are not usable.
Secondary packing is the packing done for convenient transportation of goods.
▪ MRO Goods
MRO stands for maintenance, repair, and operating supplies. They are also called as consumables
in various parts of the world. They are like a support function. Maintenance and repairs goods like
bearings, lubricating oil, bolt, nuts etc, are used in the machinery used for production. Operating
supplies mean the stationery etc, used for operating the business.
5.3 Inventory Management
Inventory Management is supervision of non-capitalized assets and stock items. A component of
supply chain management inventory management, supervises the flow of goods from
manufacturers to warehouses and from these facilities to point of sale.
5.4 Features of Inventory Management
▪Centralized Storage
The more stock locations you have to govern, the more difficult it becomes to manage orders and
direct products to the right customers. With an adequate warehouse tool in place, you will be able
to track the availability of all products and services, and thus maintain customers promptly
informed on the status of their orders.
▪ Efficient Stock Operation
Good inventory management is the founding pillar of any healthy retail business, as it saves both
the time and effort needed to manage stock manually. With a collaborative system in action, your
employees will no longer write daily reports and run back-and-forth through them to give
customers an answer, but rather have data ready and regularly updated on their devices.

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▪ Enhanced Sales Productivity
Many companies report significant improvement of their closed deal rates upon implementing
their first inventory management solution. This is so because accurate inventory prevents you
from losing customers, and minimizes common human mistakes such as reporting products out of
stock and referring clients to different stores.
▪ In-TimeDelivery
The core benefit of using inventory management software is being able to hit delivery deadlines,
and preventing customers from waiting ages for their shipment to arrive. Advanced programs will
even involve them in the process, giving them a realistic picture of the status of their order, and
allowing them to track the product’s movement from purchase to arrival.
▪ Adjusted Order Frequency
Despite of distributors perceiving stock shortages to be the worst possible scenarios, we’d ascribe
that attribute to overstocks. Leaving products to waste or paying for their storage and maintenance
is where businesses lose the most of their money, and that’s why inventory management software
is so useful. Being able to track their actual stock supplies, companies can re-order from vendors
in the right moment, or adjust the order frequency in a more suitable manner.
▪ No More Hidden Costs
Another competitive edge of good inventory system is that they adjust easily to sudden spikes in
your sales, and you get to tweak them in line with sudden spikes and drops. For the purpose, have
to pay extra storage fees, while in the best possible scenario, will also get a product that prepares,
packs, and ships products .
▪ Satisfied customers
With personalized service and accurate responses at any moment of time, your customers will be
more satisfied than ever. They will be able to track the status of shipped orders, without facing the
risk of a late notice that the product they expect is no longer available.

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▪ Integration with Back Office Systems
Another way to recognize a quality inventory management system is to examine its connectivity
to back office applications, in particular accounting and ERP systems which process stock related
data. The best option is to purchase an open API system, as it allows custom connections to all
service providers, and usually comes with the best technical support.
▪ Accurate Planning and Forecasting
Inventory management systems help you plan ahead and become more proactive, as they track the
status of your products, manage negative trends and opportunities, and retrieve vital historical data
to predict the progress of your sales. In fact, inventory tools are most of the time packed with
analytic features that free your time, and still pull off all important indicators that measure your
productivity.
5.5 Objectives of Inventory Management
▪ To keep inventory at sufficiently high level to perform production and sales activities
smoothly.
▪ To minimize investment in inventory at minimum level to maximize profitability.
▪ To ensure that the supply of raw material & finished goods will remain continuous so that
production process is not halted and demands of customers are duly met.
▪ To minimize carrying cost of inventory.
▪ To keep investment in inventory at optimum level.
▪ To reduce the losses of theft, obsolescence & wastage etc.
▪ To make arrangement for sale of slow-moving items.
▪ To minimize inventory ordering costs.

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5.6 Scope of Inventory Management
The first scope of inventory management is to record all items that come into the business.
The item should then be tracked through storage in a warehouse, going on to the shelf, selling to a
customer. Inventory management helps businesses have the right products available for
customers. Inventory management includes choosing the right suppliers for the business.. The
value of the inventory at the end of each period provides a basis for financial reporting on the
balance sheet. Measuring the change in inventory allows the company to determine the cost of
inventory sold during the period. This allows the company to plan for future inventory needs.
Inventory management system is a software system where one can track the number of sales and
purchase of the goods. It helps in reducing the amount of the time required for process shipping.
There and Back: The Scope of Inventory regardless of which type of inventory system a company
uses, the scope of the inventory may change based on the strategic targets of the business.
5.7 Advantages of Inventory Management
▪ Minimize Costs, Maximize Sales &Profits.
▪ Each material can be procured in the most economical quantity.
▪ Purchasing and inventory control people automatically gives their attention to those items
which are required only when are needed.
▪ It improves the liquidity position of the firm by reducing unnecessary tying up of capital in
excess inventories.
▪ It ensures smooth production operations by maintaining reasonable stocks of materials.
5.8 Disadvantages of Inventory Management
▪ Sometimes, the orders are placed at the irregular time periods which may not be convenient to
the producers or the suppliers of the materials.
▪ The items cannot be grouped and ordered at a time since the reorder points occur irregularly.
▪ EOQ may give an order quantity which is much lower than the supplier minimum and there is
always a probability that the order placement level for a material has been reached but not
noticed in which case a stock out may occur.

36
▪ The system assumes stable usage and definite lead time. When these changes significantly, a
new order quantity and a new order point should be fixed, which is quite cumbersome.
▪ Efficient inventory control methods can reduce but cannot eliminate business risk.
5.9 Inventory Management Techniques
1. ABC Analysis
ABC analysis is an inventory categorization technique. ABC analysis divides an inventory into
three categories- "A items" with very tight control and accurate records, "B items" with less
tightly controlled and good records, and "C items" with the simplest controls possible and
minimal records.
2. High, Medium and Low Analysis
The High, medium and Low (HML) classification follows the same procedure as is adopted in
ABC classification. Only difference is that in HML, the classification unit value is the criterion
and not the annual consumption value. The items of inventory should be listed in the descending
order of unit value and it is up to the management to fix limits for three categories.
The HML analysis is useful for keeping control over consumption at departmental levels, for
deciding the frequency of physical verification, and for controlling purchases.
Procurement department is more concerned with prices of materials so this analysis helps them to
take them the decisions such as, who will procure what based on the hierarchy and price of
material.
3. FSN Analysis
FSN stands for fast moving slow moving and non-moving. Here, classification is based on the
pattern of issues from stores and is useful in controlling obsolescence.
To carry out an FSN analysis, the date of receipt or the last date of issue, whichever is later, is
taken to determine the number of months, which have lapsed since the last transaction. The items
are usually grouped in periods of 12 months.

37
4. SOS Analysis
S’ stands for Seasonal items and ‘OS’ stands for off-seasonal items. It may be advantageous to
buy seasonal items at low prices and keep inventory or buy at high price during off seasons. Based
on the fluctuation in prices and availability, suitable decision has to be taken regarding how much
to purchase and at what prices.
5. XYZ Analysis
The XYZ analysis is a way to classify inventory items according to variability of their demand.
▪ X – Very little variation. X items are characterized by steady turnover over time. Future
demand can be reliably forecast.
▪ Y – Some variations: although demand for Y items is not steady, variability in demand can be
predicted to an extent. This is usually because demand fluctuations are caused by known
factors, such as seasonality, product lifecycle, competitor’s action or economic factors. It’s
more difficult to forecast demand accurately.
▪ Z – the most variation: the demand for Z items can fluctuate strongly or occur sporadically.
Here is no trend or predictable casual factor, making reliable demand forecasting impossible.
6. GOLF Analysis
This stands for Government, Open market, Local or Foreign source of supply. For many items
imports are canalized through government agencies such as State Trading Corporations, Mineral
and Metals Trading Corporations, Indian Drugs and Pharmaceuticals
Etc.
7. EOQ Model
Economic order quantity is the level of inventory that minimizes the total inventory holding costs
and ordering costs. It is one of the oldest classical production scheduling models. The framework
used to determine this order quantity is also known as Wilson EOQ Model or Wilson Formula.
The model was developed by F. W. Harris in 1913. But still R. H. Wilson, a consultant who
applied it extensively, is given credit for his early in-depth analysis of the model.

38
8. Minimum-Maximum Technique
The minimum-maximum system is often used in connection with manual inventory control
systems. The minimum quantity plus the optimum lot size. In practice, a requisition is initiated
when a withdrawal reduces the inventory below the minimum level; the order quantity is the
maximum minus the inventory status after the withdrawal. If the final withdrawal reduces the
stock level substantially below the minimum level, the order quantity will be longer than the
calculated EOQ.
9. Two-bin Technique
One of the oldest systems of inventory control is the two bin system which is adopted to control
‘C’ group inventories. In the two – bin system, stock of each item is separated into two bins. One
bin contains stock, just enough to last from the date a new order is placed until it is received in
inventory. The other bin contains a quantity of stock enough to satisfy probable demand during
the period of replenishment.
10. VED Analysis
The VED analysis is done to determine the criticality of an item and its effect on production and
other services. It is specially used for classification of spare parts.
11. SDE Analysis
The SDE analysis is based upon the availability of items and is very useful in the context of
scarcity of supply. In this analysis, items, generally imported, and those which are in short supply.
It refers to difficult items which are available indigenously but are difficult items to procure.

39
Chapter 6
Data Analysis and Interpretation

40
6.1 Analysis of Inventory Management
6.1.1 Inventory turnover ratio
This ratio indicates the number of times inventory is replaced during the year. It measures the
relationship between costs of goods sold and inventory level. Inventory turnover reflects how
frequently a company flushes from its system with-in a given financial reporting period.
ITR = Cost of Goods Sold ÷ Average Inventory
Table 6.1.1
Statement Showing Inventory Turnover Ratio
Year Cost of Goods Sold Average inventory Ratio
2013-2014 5480726 757720 7.23
2014-2015 5415750 936498 5.78
2015-2016 5423920 737773 7.35
2016-2017 60000 174250 0.34
2017-2018 361348 174250 2.07

41
Chart 6.1.1
Chart showing Inventory Turnover Ratio
Interpretation
It is evident from the graph that the firm efficient in procuring and selling its product till the year
2015-2016. In the year 2016-2017 the firm’s sales decreased unexpectedly due to incompetency
of the firm and its employees, but in the year207-2018 the firm managed to overcome its problems
and improved its sales and thereby improving its inventory turnover ratio by efficiently managing
its inventory.
0
1
2
3
4
5
6
7
8
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Ratio
Ratio

42
6.1.2 Inventory to Current Assets
This ratio indicates the amount of inventory which forms a part of current assets. It indicates the
raw material products, work in progress which is the part of the gross current assets. The other
part of current assets would be debtors and receivables.
Inventory to Current Assets = Total Inventroy ÷ Current Assets × 100
Table 6.1.2
Statement showing relationship of Inventory with Current Assets
Year Total Inventory Current Assets Percentage
2013-2014 1057990 7937856 13.330%
2014-2015 1872995 14725899 12.71%
2015-2016 1475545 6043188 24.41%
2016-2017 60000 5698333 10.52%
2017-2018 348500 7101371 4.90%

43
Chart 6.1.2
Chart showing inventory to current assets
Interpretation:
From the above graph it can be observed that the current assets related to inventory were more
from the year 2013 to 2016. From 2017 it started depending upon its inventory more than before.
The percentage of current assets relating to inventory started decreasing form 2017 which is a
good sign for the company.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Percentage
Percentage

44
6.1.3 Inventory Conversion Period
The inventory conversion period is the time required to obtain materials for a product,
manufacture it, and sell it. The inventory conversion period is essentially the time period during
which a company must invest cash while it converts materials into a sale.
ICP = Annual Days ÷ Inventroy Turnover Ratio
Table 6.1.3
Statement showing Inventory Conversion Period
Year Annual Days ITR I.C.P
2013-2014 365 7.23 51 days
2014-2015 365 5.78 63 days
2015-2016 365 7.35 50 days
2016-2017 365 2.90 126 days
2017-2018 365 2.07 176days

45
Chart 6.1.3
Chart showing inventory conversion period
Interpretation:
The data of inventory conversion period tells us that the company is taking lot of time to convert
its inventories from the year 2017 and it increasing year by year. This results in blockage of cash.
This is happening due to the company is failing to borrow its raw material, process it and convert
it into finished products within a specified time.
0
20
40
60
80
100
120
140
160
180
200
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
I.C.P
I.C.P

46
6.1.4 Analysis of Percentage Change in Inventory
For effective analysis the effectiveness of inventory comparison of holding inventory plays a
significant role. It shows variation in holding & controlling cost of inventory.
Percentage Change in Inventory = Total Inventory ÷ Change in Inventory × 100
Table 6.1.4
Statement showing change in inventory
Year Total Inventory Change in Inventory Percentage
2013-2014 1057990 578460 35.35%
2014-2015 1872995 815005 77.03%
2015-2016 1475545 -397450 -21.22%
2016-2017 1468843 -1415545 -95.93%
2017-2018 348500 288500 19.64%

47
Chart 6.1.4
Chart showing change in inventory
Interpretation:
According to the table and the graph it is evident that holding of annual inventory is decreased in
the year 2015 to 2017 to negative trend, which were the bad sign for the company. This happens
mainly because of the sales are decreased. But in the year 2017-2018 the company regained its
position to positive holding of inventory.
-120.00%
-100.00%
-80.00%
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Percentage
Percentage

48
6.1.5 Inventory to Cost of Goods Sold
This ratio shows the total inventory in relation to total revenue. It shows how much of the
inventory lying in the end of given period. The decreasing number indicates higher efficiency in
use of resources, an increasing number suggests potential cash flow problems due to greater sums
tied up in inventory.
Inventory to Cost of Goods Sold = Average Inventory ÷ Cost of Goods Sold
Table 6.1.5
Statement showing relationship between inventory and cost of goods sold
Year Average Inventory Cost of Goods Sold Ratio
2013-2014 757720 5480726 0.13
2014-2015 936498 5415750 0.17
2015-2016 737773 5423920 0.14
2016-2017 174250 60000 0.34
2017-2018 174250 361347 0.48

49
Chart 6.1.5
Chart showing relationship between inventory and cost of goods sold
Interpretation:
From the above analysis it is cleared that the industry was utilizing its resources efficiently till the
year 2016. But from 2017 the firm is not utilizing its available resources optimally this is mainly
because of cash flow problems. When cash doesn’t flows in a required manner the activities
cannot be carried out in efficient manner.
0
0.1
0.2
0.3
0.4
0.5
0.6
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Ratio
Ratio

50
6.1.6 Fixed Asset Turnover Ratio
Fixed-asset turnover is the ratio of sales to the value of fixed assets. It indicates how well the
business is using its fixed assets to generate sales. The higher the fixed asset turnover ratio, the
more effective the company's investments in fixed assets have become.
Fixed Asset Turnover Ratio = Cost of Goods Sold ÷ Net fixed Assets
Table 6.1.6
Statement showing fixed asset turnover ratio
Year Cost of Goods Sold Net Fixed Assets Ratio
2013-2014 5480726 2916818 1.87
2014-2015 5415750 2301405 2.35
2015-2016 5423920 2683625 2.28
2016-2017 60000 2336509 0.25
2017-2018 361347 3449289 0.15

51
Chart 6.1.6
Chart showing fixed asset turnover ratio
Interpretation:
According to the table and the graph above it is clearly understandable that from the year 2013 to
2016 the company had good fixed asset turnover ratio. But from the year 2016 it is decreasing its
investments in its fixed assets.
0
0.5
1
1.5
2
2.5
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Ratio
Ratio

52
6.2 Inventory Techniques Followed by the Company
6.2.1 FSN Analysis:-
In FSN Analysis, items are classified according to their rate of consumption. The items are
proudly classified into 3 groups: F means fast moving, S means slow moving, N means non
moving. The FSN analysis is conducted generally on the basis last date of receipt of the items or
the last date of the issue of items, whichever is later is taken into account and the time period is
usually calculated in terms of months or number of days and it pertains to the time elapsed since
the last movement was recorded. The FSN Analysis helps company in identification of the items
considered to be “active” may be reviewed regularly on more frequent basis. Items who stock at
hand are higher as compared to their rate of consumption. Non movingitems whose consumption
is “zero” or almost in significant.
FastMoving:
SL No. Commodity Rank
1 Potassium Chloride 1
Non-Moving:
1 Sodium Chloride 2
2 Magnesium Chloride 3
3 Sodium Acetate 4
4 Calcium Chloride 5
5 Caustic Soda 6
6 Citric Acid 7

53
Table 6.2.1
Statement showing FSN Analysis
Moving Method Commodity
Fast Moving Sodium Chloride
Non Moving Magnesium Chloride
Sodium Acetate
Calcium Chloride
Caustic Soda
Citric Acid
Chart 6.2.1
Chart showing FSN Analysis
0
1
2
3
4
5
6
7
8
Potassium
Chloride
Sodium
Chloride
Magnesium
Chloride
Sodium
Acetate
Calcium
Chloride
Caustic
Soda
Citric Acid
Rank
Rank

54
Interpretation:
The chemical potassium chloride is one and only material produced by the industry and the
information collected that the company stopped producing rest of the materials.
6.2.2 HML Analysis:
HML Analysis is classified based on their unit prices. Here cost / unit criteria is used they are
categories in 3 groups, where H means high price item, L means low price items.Objectives of
HML analysis is to determine the frequency of stock verification to keep control over the
consumption at the department level, considering buying policy and delegation of authority.
High Value:
SL No Commodity Rank
1 Potassium Chloride 1
Medium Value:
SL No Commodity Rank
1 Sodium Chloride 2
2 Magnesium Chloride 3
Low Value:
1 Sodium Acetate 4

55
Table 6.2.2
Statement showing HML Analysis
Value Product Rank
High Potassium Chloride 1
Medium Sodium Chloride 2
Medium Magnesium Chloride 3
Low Sodium Acetate 4
Chart 6.2.2
Chart showing HML Analysis
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
High Medium Medium Low
Rank
Rank

56
Interpretation:
The chemical potassium chloride is considered as a high value material in the industry and heads the first
rank and sodium chloride and magnesium chloride heads the medium value and it’s rank will be
respectively second and third and the chemical sodium acetate is considered as a low value material and
heads the fourth rank.

57
Findings, suggestions and
conclusions

58
Findings:
1. The inventory turnover ratio of the company decreased in the year 2016 due to decrease in
its sales.
2. The inventory conversion period is increasing year by year which results in blockage of
cash.
3. The fixed asset turnover ratio of the company is decreasing year by year. The firm has to
concentrate on its utilization of fixed assets more.
4. G.R Industry is providing quality products to its customers.
5. G R Industry is not updated its technology.
6. The firm has not faced any strikes, look out site which is the good sign for the firm.
7. The firm has taken up pollution control measures.
8. The firm suffered from number of marketing problems like adequate and cheap transport
facilities and lack of publicity.
9. The company is following two types of inventory techniques.
10. According to the companies report, the company is failing to clear its inventory regularly.
11. It supplies its products mainly to M.N Chemicals, Kumta.
12. Its competitors are far from the local area. Hence this company can easily capture the local
market.
13. The company has manufacturing some products. Presently it is manufacturing
cyclopentanone and sodium citrate.

59
Suggestions:
▪ The company has to take remedial measures to control its inventory.
▪ Firm should take necessary measures to overcome its financial difficulties.
▪ It must improve its inventory by proper utilization of stock.
▪ The company is suggested to improve its manufacturing technologies or machineries.
▪ The firm should adopt appropriate techniques to increase the overall efficiency.
▪ The company is suggested to have its own vehicle, so that high transportation cost can be
avoided. It will be helpful in bringing raw material to the factory premises.
▪ The machinery should be properly maintained, those who are working on machineries
should be trained properly.
▪ A small amount of investment of advertisement may increase the sales in long run. As the
unit exists under modern complex world.
▪ The firm has to show more consideration towards labor welfare measures. And company
should provide more facility to the workers.
▪ Another important remedy is that the firm should keep an eye on international market and
affective marketing policies.
▪ The organization can expand their business with the same products are by diversifying its
products.

60
Conclusion:
G.R Industry is small scale industry established in 2008 by Mr. Gopalkrishna Ugru which
manufacturer chemicals. This industry is based on Business run management directors. After the
study, we can come to a conclusion that, effectiveness of inventory management should improve
in all the aspects, hence the industry can still strengthen its position by looking into the following:
▪ The inventory should be fast moving so that warehouse cost can be reduced.
▪ The finished goods have to be dispatched in feasible time as soon as manufacturing is
completed.
The finished goods have to be dispatched in feasible time as soon as manufacturing is completed.
Inventory management system is provided with automatic reporting system. So each transaction
happened will be archiving and organizing in the computer rather than using paper or excel. By
record the transaction, it could also help the manager to understand each days profit or loss so it
could be said as a tool for decision support system because it will help the manager to add most
sell product and no more adding unproductive stock in warehouse.

62
Bibliography:
▪ http://www.Google.com
▪ http://www.technofunc.com
▪ http://www.wikipedia.com
▪ Annual Reports of the company

64
G R INDUSTRIES
PROPRIETOR: GOPALKRISHNA UGRU
KUMTA-581343
BALANCE SHEET AS ON 31ST MARCH 2013
Liabilities Amount Asset Amount
CAPITAL
SECURED LOANS:
SBM LOAN-0997
UNSECURED LOANS:
RAMAKRISHNA
UGRU
CURRENT LIABILITY
Sundry creditors
VAT
7,575,748.85
1,538,494.00
80,000.00
44,780.00
9342.00
FIXED ASSETS
CURRENT ASSETS,
LOAN &
ADVANCES
Sundry debtors:
Loan & Advances
Closing stock
Add tax
CASH & BANK
BALANCES
SBM C/A -5816
SBI A/C -76733705
Cash in hand
3,037,412.57
5,064,850.50
20,000.00
.00
11,
926,960.00
145,000.00
35,776.73
7102263.05
9,248,364.85 9,248,364.85

65
G R INDUSTRIES
KUMTA- 581343
BALANCE SHEET AS ON 31ST
MARCH 2014
LIABILITIES AMOUNT ASSETS AMOUNT
CAPITAL
SECURED LOANS:
SBM OD- 5816
UNSECURED LOANS:
RAMAKRISHNA
UGRU
CURRENT LIABILITY
Sundry creditor
VAT
Shyamala G Ugru
7,488,313.61
3,071,644.69
80,000.00
235,528.00
36,294.00
20,000.00
FIXED ASSETS
CURRENT ASSETS,
LOAN & ADVANCES
Sundry debtors
Closing stock
CASH & BANK
BALANCES
SBI A/C-76733705
CASH IN HAND
2,916,817.57
7,228,365.50
709,490.00
1389.00
75718.23
10,931,780.30 10,931,780.30

66
G R INDUSTRIES
KUMTA- 581343
MARCH 2015
CAPITAL
SECURED LOANS:
SBM OD- 5816
SBM Agri loan-9601
UNSECURED LOANS:
Ramakrishna Ugru
R M Shastri
CURRENT
LIABILITY:
Sundry creditor
VAT
Shyamala G Ugru
9,051,050.51
2,920,074.19
283,000.00
80,000.00
205,600.00
948,840.00
44,872.00
29,280.00
FIXED ASSETS
CURRENT ASSETS,
LOAN & ADVANCES:
Sundry debtors
Closing stock
Advance paid to
suppliers
CASH & BANK
BALANCES:
SBI A/C-76733705
CASH IN HAND
2,301,404.57
4,962,852.00
1,067,045.40
4,489.817.00
2,122.00
739,475.73
135,62,76.7 135,62,76.7

67
G R INDUSTRIES
KUMTA- 581343
MARCH 2016
CAPITAL
SECURED LOANS:
SBM OD- 5816
CURRENT
LIABILITY:
Sundry creditor
VAT
Shyamala G Ugru
90,00,180
32,56,332
8,05,889
36,003
29,280
FIXED ASSETS
CURRENT ASSETS,
LOAN & ADVANCES
Sundry debtors
Closing stock
Advance paid to
suppliers
CASH & BANK
BALANCES
SBI A/C-76733705
CASH IN HAND
26,23,625
56,34,688
4,09,500
40,82,031
4,044,00
2,51,791
1,30,64,678 1,30,64,678

68
G R INDUSTRIES
PROPR. GOPALKRISHNA UGRU
DAGGON, KALBAG,
KUMTA -581 343
BALANCE SHEET AS AT 31ST
MRACH 2017
CAPITAL
SECURED LOANS :
SBM OD -5816
CURRENT
LIABILITIES
Sundry Creditors
Vat
Shymala G Urgu
10,125,845.61
2,447,137,.19
565,443.50
32,483.00
29,280.00
FIXED ASSETS
CURRENT ASSETS,
LOANS &
ADVANCES
Sundry Debtors
Closing Stock
TDS Receivable
Advance paid to
Suppliers
CASH & BANK
BALANCES
SBI A/c – 76733705
Cash on hand
Suspenses A/c
2,336,508.57
5,312,824.00
348,500.00
37,009.00
3,717,420.00
4,044.00
1,279,917.73
99,000.00
13,135,223.30 13,135,223.30

69
G R INDUSTRIES
PROPR. GOPALKRISHNA UGRU
DAGGON, KALBAG,
KUMTA -581 343
BALANCE SHEET AS AT 31ST
MRACH 2018
Capital
Secured Loans:
SBM OD – 5816
Current Liabilities:
Sundry creditors
Vat
GST payable
73,20,546.41
33,16,894.84
93,760.00
32,483.00
64,794.00
Fixed Assets
Current Assets, Loans
and Advances:
Sundry debtors
TDS Receivables
Advance paid to
suppliers
Cash and Bank
Balances:
SBI A/c -76733705
Cash on hand
34,49.289.47
38,92,121.00
80,417.00
32,09,252.00
7,331.00
1,25,101.78
1,07,63,512.25 1,07,63,512.25

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