ALANKAR ENTERPRISES

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INDUSTRY PROFILE
The Indian metal casting (foundry industry) is well established according to the recent
world census of casting by modern casting, USA India ranks as 2nd largest casting
producer producing estimated 7.44 million MT of various grades of casting as per
international standards.
The various types of casting which are produced are ferrous, non-ferrous aluminium
alloy, graded cast iron, ductile iron, steel etc. for application in automobiles, railways,
pumps compressors and values, diesel engines, cement/ electrical/textile machinery,
aero & sanitary pipes and fitting etc. and casting for special applications. However, grey
iron casting is the major share approx. 70% of total casting produced.
There are approx 4500 units out of which 80% can be classified as small scale units and
10% each as medium and large scale units. Approx. 500 units are having international
quality accreditation. The large foundries are modern and globally competitive and are
working at nearly full capacity. Most foundries use cupolas using LAM coke. There is
growing awareness about environment and many foundries are switching over to
induction furnaces and some units in agar are changing over to coke less cupolas.

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OBJECTIVES OF COMPANY
 To identity suitable sources of cast component, foundry, materials, equipment,
consultants etc.
 To generate information of special plat machinery and technology overseas in
developed countries.
 To maintain profile of exporters in foundry and allied industry.
 To maintain Indian standards of metal casting, foundry equipment, sands additives,
input materials inspection methods to represent IIF in various sectional committee of
BTS.
 To build up information system and periodically update for foundries and allied
industry in order to monitor trends and statistics and profile of individual associated
company regarding their capacity, capability, specialty and in house manufacturing
and testing facilities, quality accreditations etc.

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COMPANY PROFILE-

Company name Alankar enterprises

Address surveyno.698, plot no. B-36udyambag belgaum-590008

KarnatakaBelgaum.
Year established 1982

Business type manufacturing/ supplier

Turnover 5.00cr
Standard certifications ISO 9001-2000

Product Manufacturing Ci casting and steel components & assembly and supplying
automobile components, automobile spare part, shaft piston,Sleeve.

Total area of the foundry 8000sq.ft(built up-3000sq.ft)

Founder Mr. MahadevChougule (partner)

Phone number (0831) 2440345

Fax number (0831) 2440345

E-mail I’d mahadevialankar@gmail.com
Bank The Belgaum industrial co-op, bank ltd. Udyambag Belgaum
Total employees 62 employees (office staff-12 and workers 50)

Total machine 44no.s

Customers FAIRFIELD ATLAS LTD.SHINOLI, KIRLOSKA

BROTHERS.KIRLOSKARWADI, KOLSITE GROUP,
MUMBAI,SARASWATI AUTO
COMPONENTS LTD. AURANGABAD, BHARAT FRITZ
WENER LTD.
BANGLORE, etc

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Alankar group was established in the year 1982, by Mr. mahadev chougule with a modest
investment. Alankar group is well known in Belgaum as on ISO certified manufacturing of
precision machine components. Alankar group is manufacturer of products and sub products
in conventional and non-conventional machines since 36 years.
Alankar group products the entire component at high precision (in terms of micron level),
uses all the latest measuring tools. They adopted almost all the modern management
techniques like;
7’s to keep work place clean and neat,
JIT-Just in time of delivery products,
Kaizen-continuous improvement
Concurrent engineering
Value engineering, and
Rejection levels in terms of 6 sign levels
Alankar group is not only oriented towards profit as well as other facilities. Human resource
training and development is an ongoing process. They also work concurrently as team to
achieve high goals.

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BACKGROUND AND INCEPCTION OF THE COMPANY-
Alankar enterprises is a unit of Alankar group Alankar enterprises is a small company. They
introduce themselves as one of the leading CNC precision machined components supplier,
Conveyor’s and sub-assemblies for ferrous, non-ferrous and any other components.
They are in this field since 36 years serving the changing needs of their customers.
They are very much aware of the high quality levels expected as they are dealing with
multinational companies. Based on their performance they have been selected for direct
exports by their customer M/S Fairfield Atlas ltd to USA.
In its quest for quality, Alankarenterprises got certified for ISO 9001-2000 quality
management system certification from M/S TUV SOUTH ASIA (formerly TUV
suddeshland). Alankar enterprises has also implemented all concepts of ISO/TS 16949
automotive standard like FMFA, control plans, kaizen, SPC and MSA.
Alankar enterprises has continuously upgrade its manpower competencies, manufacturing
and quality assurance facilities a head if customer expectation. It has a team of qualified
engineers for planning, production and quality assurance activities.
The team at Alankar enterprises commits to continue its journey based on pillars of customer
satisfaction and continuous improvements.

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MILESTONES
Alankar enterprises stated as a small but positively accelerated journey to become one of the
precision manufacturer of the products. Some of the significant milestones in the company’s
journey towards excellence and best at their category
.
1982-company started with the name of Alankar engineering works with second hand
kirloskar make madras GD Lathe machine in agented premises at Udyambag.
1984-shifted the work shop to a new premise at Udyambag, borrowing loan under prime
minister Rojagarhosanna at SBI.
1985- Added lathe machine, to the enterprise borrowing loan under prime minister
Rojagarhosanna at SBI.
1990-company has named as Alankar enterprises.
1991-2003-company has started three more firms in the name of
1. Akkad precision-machining.
2. Rohan Metals-C. I, Graded casting.
3. DhanshreeIndustries-D.C. Motors.
2003-the 1st CNC Lathe machine purchased from ACE, jobber model. Then, every six
months one CNC Lathe machine is added to the enterprise. Now total of 20 CNC lathe
machine is operation.
2005-apllied and award ISO 9001-2000 certificate from TUV suddeutschiandIndiapvt Ltd.
Registered under central excise.
2007-started ESI, PF and LIC to the entire employees.
2009-2010- started second unit with the 6 CNC lathe machine and 1 VMC Machine.
2010-2011-started third unit with the 5 CNC lathe machine (AUTO NAGAR, KIADB,
KANBARGI IND AREA, BELGAUM.)
2013-2014-VMC machine in operating.
2016-2017-HMC machine in operation.

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NATURE OF THE BUSINESS CARRIED-
“Nature of business” refers to the type or general category of business or commerce such
as in the form of a manufacturing unit, a service undertaking or a trading concern etc.
Alankar enterprises is a small scale industry. The nature of business carried by Alankar
enterprises is manufacturing and supplying of components. Alankar enterprises manufactures
and supply products such as Ci casting and steel components & sub assembly, automobile
components, automobile spare part, shaft, piston, bushes, sleeve, etc.

VISION, MISSION AND QUALITY POLICY-

Vision-
 They want to achieve maximum turnover and to expand their business.
 They endeavour to provide maximum satisfaction to the clients.
 They strive to enter new markets and they follow new trends, while at the same time
they are strongly committed to a healthy tradition of the local community and local
knowledge.
 They want to be distinguishable, but also recognised as a company which is tends to
grow using the newest standards and technologies.

Mission-
 To develop, manufacturing and deliver the best quality machine components, storage
and displays system.
 They support their employees, enabling them to create a rewarding and innovative
culture.
 To be a responsible corporate citizen in the country and the markets where they
operate.
 They are committed towards offering qualitative products that too at industry leading
rates.

Quality policy-
 The integral part of their business policy is the quality of products and services that
meet the highest standards, and customer- buyer satisfaction.
 They ensure stringent quality checking and measurements at every stage of
production.
 They consistently improve their products & processes and comply with legal and
regulatory requirements.
 To maintain quality as per satisfaction of the customers and to ensure timely delivery
of products to customers.

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BUSINESS POLICY-
Alankar enterprises will strive to improve quality and skills to world standard. They will
manufacture products of consistent quality & price viable to their customers. They will
specialize in certain products for certain selected customers. They will adopt a policy of
continuous learning & improvement to retain our premier status.

KEY GOALS-
 Profitability
 Growth
 Customer loyalty
 Community development

PRODUCT/SERVICE PROFILE-
Products and service profile summarize information about the different products and service
within each business segment to be considered.
Alankar enterprises undertake design, engineering and manufacturing of complete range of
equipment and plants. A part from undertaking annual maintenance contract, they also
design, develop, procure and supply spare / equipment, carry out safety audits and provide
measure to identify areas of losses among other value added services offered by them.

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PRODUCT PROFILE OF ALANAKAR ENTERPRISES-

CASTING FLYWHEEL &

HOUSING

IMPELLER LEVELING PAD

MOTOR MOUNTING SCREW JACK

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FLANGES HYDRAULIC
FITTING

HYDRAULIC FITTING NOZZLE

RINGS

SHAFTS GEAR BLANKS

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AREA OF OPERATION-GLOBAL / NATIONAL/ REGIONAL-

Alankar enterprises operates in national/ domestic markets.

OWNERSHIP PATTERN-

Alankar enterprises is a partnership firm. Its founder is Mr. Mahadevchougule.

BOARD OF DIRECTORS-
 Operation executive: - Mr. Mahadevchougule (partner)
 Finance executive: - Mr. chandrekantchougule(partner)
 Technical executive: - Mr. sampatchougule (partner)
 Purchase manager: - Mr. Krishna gavage.
 Development & quality manager: - Mr. dinarKabbur.
 Production manager: - Mr. joseph D’Souza.
 Account manager: - Mr. Raju goanna
 System in charge: - Mr. Rohan chougule.

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COMPETITORS INFORMATION-
Alankar enterprises competitors and other players: -
 Beigey enterprises, Mache, Belgaum.
 Kamath Enterprises, Udyambag, Belgaum.
 Bali Enterprises, Udyambag, Belgaum.
 Naveen Enterprises, Udyambag, Belgaum.

INFRASTRUCTURAL FACILITIES: -
Alankar enterprises has good infrastructure facilities such as
 buildings, workspace, production machine & associated utilities,
 physical infrastructure in office space such as personal computers,
 internet connection,
 telephone lines and common infrastructure facilities like file server,
 fax machine, printer, scanner, photocopier,
 meeting / conference room with protection equipment, dining room and seminar
room.

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ACHIVEMENTS AND AWARDS

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WORK FLOW MODEL (END TO END)

Non-conformation Non-conformance
Receiving & inspection

Salvaging committee

Rough turning blank 20

Co-operative action & problem

evaluation
1st side finished turning
blank 30

2nd side finished turning

blank 40

Final inspection 50 Rework, repair scrap

Re-input
Deviation
Dispatch 60

Return to normal process

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FUTURE GROWTH AND PROSPECTS-
Alankar enterprise planning to expand their business units and earn more profits and also they
want to grow globally and enter into foreign markets & export their products to other
countries.
 Updating of humidification plant R&D.
 Updating of laboratory equipment.
 Development of product & process cost reduction.
 Diversify in to contract manufacturing.

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MCKENSY’S 7S MODEL-

Structure-
Company structure prescribe the formal relationship among various positions and activities. It
is the organisational chart and associated information that shows who reports to whom and
how tasks are both divided up and integrated. In other words, structure describe hierarchy of
authority and accountability in an organisation.
Alankar enterprises hierarchies and different responsibilities are shown in below chart,

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Owner of the company

Partner Partner (new Management Partner

(administrative development representative (production & QA)
on manager) enquiry)

Purchase Accounts Planning & Production &

development in maintained
manager officer QA
charge supervisor

Shift I/C (CNC I/C)

Machine operators

Helpers

The organization has been divided into four departments and each is headed by a partner
(manager). They have subordinated to assist them and share the work load of each
department.
 Production department
 Quality department
 Purchase department
 Account department

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Production department-
 Sole responsibility of implementing or accepting contract of work or not.
 To check the feasibility of product (contract) in terms of economy.
 Planning of machines and work force.

Quality department-
 Process approval at cutting stages.
 Inspection during at cutting process.
 Maintaining identification and traceability in their area of work.
 Maintaining all quality records pertaining to their area of work.
Purchase department-
 Selection of suppliers.
 Purchase of offloaded items for CNC tools and spares.
 Establishment of new suppliers.
 Purchase of indigenous product for CNC tools and spares.
 Marketing and technical adviser.
 Complete offloading of machines equipment and systems.

Accounts department-
 Financial marketing and technical adviser.
 Supporting staff (packing and forwarding).

System-
In Alankar enterprise planning & control system is very important function, which is done by
top management. They prepare plan every year by considering the potentiality, infrastructure
facility and past performance. A master plan is a plan which consisting plan of all
department. Thus plan is the standard course of action prescribed for one year. The actual
performance can be compared with this plan and reviewed by the board of directors, MD to
take decision on manufacturing/production / expansion plan or to control inventory.

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Style-
Style of management refers to how the management collectively manages the functioning go
various department & how much importance is given to the employee in decision making.
The style adopted by the organization:

A. Top-down approach-
Planning, decision making, delegating of work and other procedural aspects are done as per
top-down approach. The employees are required to follow the rules and regulations of the
company and these policies are strictly implemented.

B. Participative-
Alankar enterprise follow democratic leadership style. It is also known as participative style.
The subordinates are encouraged to talk to their heads about any topic at any time. While
setting targets the superior and subordinates sit together, discuss and decide on the targets.
The employees are free to express their opinion about the organisation working. This aspect
clearly shows that the management is allowing the ‘participation’ of employees in the overall
development of the organization.

Staff-
In the Alankar enterprise recruitment of the staff involves selection of the source from which
staff is to be recruit. Selecting the most suitable candidate through interviews and the actual
appointment of the staff through appointment letters, services and agreements etc.
Total number of staff in Alankar enterprises in 12 and 50 workers.

Skills-
The term skill includes those characteristics, which most people use to describe a company.
In other words, skill refers to dominant skills or distinctive competence of an organization.
Staffs of Alankar enterprises are highly qualified in accounting writing skills which is very
essential for maintaining books of account of the company and as well as qualified engineers
to operate machine.

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Strategy-
Strategy is the route that the organisation has chosen for its future growth, a plan and
organisation formulates to gain a competitive advantage.
 Strategy to bridge the gap between customer needs and availability of raw material.
 Strategy to retain the customers or maintain good relationship with the customers.
 Strategy for reducing defects accidents & break downs.
The Alankar enterprise use strategy to stay competitive and meet market expectations in a
global economy, both domestic and foreign companies must realign their manufacturing
processes, make improvement, and increase their manufacturing capabilities. With numbers
of employees working in network of domestic and foreign facilities, production processes are
as varied as the products being produced.

Shared values-
The fundamental or core values that are widely share in the organization and serve as
guidelines that are important, these values have greater meaning because they focus attention
and provide broader since of purpose.
The values of Alankar enterprise are-
 Honest, ethical and fairness.
 Customer delight. Integrity and transparency.
 High concern for quality, safety and work environment.
 Achieving organisation growth through excellence.
 Long-term relationship with customers.

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SOWT ANALYSIS-

Strengths-
 Established strong brand name.
 Most experienced technical manpower.
 Favourable access to distribution network.
 Good reputation among customers.
 Timely supply of goods to the customers.
 Co-ordination between the department and amongst the employees is best.

Weakness-
 Break-down of machinery act as a major cause of worry to the production department
/ injury to the workers on the job site.

Opportunities-
 Better utilization can be made with new machines.
 Can make more links for export.
 Technological advancement will help in future development in production and
security measures.

Threats-
 Competitors in the market like Beejay enterprises, kamatz enterprises, balaji
enterprises etc.
 Maintaining good quality products with competitive price in the current market.
 The concern is facing competitive from existing and upcoming units in the industry.

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GENERAL INFORMATION-
The important area in the day-to-day management of the firm is the inventory management.
Inventory is the functional area of finance that covers the efficiency of production of a
manufacturing firm. It is concerned with management of inventories as well as efficiency in
cost reduction. The study is evaluating efficiency of inventory management ofAlankar
enterprises.

STATEMENT OF THE PROBLEM-

A manufacturing firm will have substantially high level of inventories particular process
industries. These industries involve long production cycle and hence carry large inventories.
However, every business firm however big and small has to maintain inventory and it
constitutes an integral part of the working capital. TT has been estimated that inventory in
Indian industries constitute a significant portion of current assets. Inventory requires a
significant investment not only to acquire them but also to hold them.
The structure of inventory of the company is the degree of efficiency with which the funds
were utilized in major components of working capital.

OBJECTIVE OF THE STUDY-

The main objectives of the study are-
 To understand various techniques of inventory management and its control.
 To study the effectiveness of inventory management through various techniques.
 To analysed the function producers in inventory management.
 To make a comparative study of inventory management in last three years using
inventory ratio techniques.

SCOPE OF THE STUDY-

 The study covers a period of three years2014-2015, 2015-2016, 2016-2017.
 The study seeks to find out facts and opinions of inventory management and control
through various techniques in Alankar enterprises.
 In accordance with the present trends it aims mainly at finding out the inventory
control producers at Alankar enterprises.

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METHODOLOGY OF STUDY-

Identification of problem

Sources of data collection

Primary data Secondary data

Sampling techniques

Tabulation

Interpretation

Conclusion

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1. Primary data-
It is collection of first-hand information. This data is collected through discussion
with the concerned officers using the methods of interview schedule.

2. Secondary data-
It is the reviewing of the relevant information which is already collected and making
inferences base on the information collected. This includes information published in
files, annual reports, periodicals, manuals and text book.

I. Sampling Techniques-Microsoft word Microsoft excel.

II. Interpretation –

The data collected through primary and secondary sources were processed and
presented in the data analysis by various tables and graphs. The table thus obtained by
calculating average. Percentage, turnover ratio, graphs and diagram in respect of the
stock of raw material, spares, work-in-progress, sales, inventory control procedures
andThus to draw conclusion from the analysis done.

LIMITATIONS OF THE STUDY-

 Time restriction was only 30 days of the project work in the organization.
 The information, which was needed, could not be made public by the organization.
 Through discussion with all related officials was not possible due to their busy
schedules of auditing.
 This study was done by using annual reports, inventory manual etc.

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INTRODUCTION OF INVENTORY MANAGEMENT-
Inventory constitutes the most significant part of current assets of a large majority of
companies in India. On an average, inventories are approximately 60% of current assets in
public limited companies in India.

MEANING AND DEFINITION OF INVENTORY -

Inventories refers to the stock of raw material held for use in manufacturing process and
finished goods held for sale. Thus the term inventory refers to the stock of raw materials
work-in-process finished goods & suppliers.

NATURE OF THE INVENTORY-

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

Raw materials

Work in progress

Finished Goods

Supplier

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

Work in progress-
These inventories are semi manufacturing products that need more work before they become
finished products for sales.

Finished goods-
Finished goods inventories are those completely manufacturing products which are ready for
sale. Stock of raw materials and work in progress facilitate production while stock of finished
goods is required for smooth marketing operation. Thus, inventories serve as a link between
the production and consumption of goods.

Supplier-
It includes office and plant clearing material like soap, brooms, oil, fuel, lights, bulbs etc.
These materials do not directly enter production but are necessary for production process.
Usually, these supplies are small part of total inventory and do not involve significant
investment. Therefore, a sophisticated system of inventory control may not be maintained for
them.

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MANAGEMENT OF INVENTORY-
Inventory constitutes the principal item in the working capital of the majority of trading and
industrial companies. To maintain the continuity in the operations of business enterprise, a
minimum stock of inventory required. Management of inventory is designed to regulated the
volume of investment in goods on hand the type of goods carried in stock to meet the needs
of production and sales while at the same time, the investment in them is to be kept at a
reasonable level.

CONCEPT OF INVENTORY MANAGEMENT-

The term inventory management is used in two- ways-unit control and value control.

OBJECTIVES OF INVENTORY MANAGEMENT-

There are two types of objective of inventory management.

A. Operating objectives-

1. Ensuring availability of materials-

There should be a continuous availability of the types of raw materials. A minimum
quantity of each material should be held in to permit production to move on schedule.

2. Avoidance of Abnormal Wastage-

There should be minimum possible wastage of materials while these are being stored
in the god owns or used in the factory by workers. Wastage should be allowed up to
certain level known as normal wastage. To avoid any abnormal wastage, strict control
over the inventory should be exercised. Leakage, theft, embezzlement and spoilage
due to rust, dust or dirt should be avoided.

3. Promotion of Manufacturing Efficiency-

If right type of raw material is available to the manufacturing department at the right
time, their manufacturing efficiency is also increased. Their motivation level rises and
morale is improved.

4. Avoidance of out of stock danger-

Information about availability of materials should be made continuously available to
the management so that they can do planning for procurement of raw material. It
maintains the inventories at optimum level keeping in view the operational
requirements. It also avoids the out of stock danger.

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5. Better service to customers –
Sufficient stock if finished goods must be maintained to match reasonable demand of
the customers for prompt execution of their orders.

6. Highlighting Slow Moving and Obsolete Items of Materials-

7. Designing Poorer Organization for Inventory Management-

Clear cut accountability should be fixed at various level of organization.

B. Financial Objectives –

1. Economy in purchasing-
A proper inventory control brings certain advantages and economies in purchasing the
raw materials. Every attempt has to make to effect economy in purchasing through
quantity and taking advantage to favourable market conditions.

2. Reasonable price-
While purchasing materials, it is to be seen that right quality of material is purchased
at reasonably low price. Quality is not to be sacrificed at the cost lower price. The
material purchased should be of the quality alone which is needed.

3. Optimum Investment and Efficient Use of Capital-

The basic aim of inventory control from financial point of view is the optimum level
of investment in inventories.

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MOTIVES OF HOLDING INVENTORY-
1. Transaction Motive-
Where an enterprise maintains inventories to facilitate smooth production & sales operations
it is called transaction motive.
2. Precautionary Motive-
Where an enterprise holds inventories to protect itself against the risk of unexpected changes
in demand and supply forces, it is called precautionary motive.
3. Speculative Motive-
Where an enterprise holds inventories to take advantage of changes in prices, it is called
speculative motive.

IMPORTANCE OF INVENTORY CONTROL-

The important or necessity of inventory control is well explained in the terms of objects of
inventory control, which are obtained through it. A proper inventory control lowers down the
cost production and improves profitability of enterprise.

ADVANTAGES OF INVENTORY CONTROL-

 Reduction in investment in inventory.
 Proper and efficient use of raw materials.
 No bottleneck in production.
 Improvement in production and sales.
 Efficient and optimum use of physical as well as financial resources.
 Ordering cost can be reduced if a firm place a few large orders in place of numerous
small orders.
 Maintenance of adequate inventories reduces the set-up cost associated with each
production run.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
RISK AND COST ASSOCIATED WITH INVENTORIE-
Holding of inventories expose the firm to a number of risks and costs.
Major Risks Are-
a. Price Decline-
They may be due to increase in market supply of the product, introduction of a new
competitive product, price-cut by the competitors etc.

a. Product Deterioration-
This may due to holding a product for too long period or improper storage. Once
goods lose their quality, they may not be in saleable condition.

b. Obsolescence-
This may due to change in customer ‘taste, new production technique, improvement
in product design, specification etc.

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[DOCUMENT TITLE]
TECHNIQUES OF INVENTORY CONTROL-
1. Determination of stock level-
The following are different levels of stock which a firm fix to ensure steady supply of
adequate materials as and when required.

2. Fixing of economic ordering quantity-

Economic ordering quantity is an inventory control tool that determines ideal ordering
quantity of inventory at which the inventory cost (ordering cost + carrying cost) in the
minimum.

3. Perpetual inventory system-

It is a system of controlling the inventories in the store on a continuous basis. It refers
to regular checking if inventories throughout the year.

4. ABC Analysis-
An organisation uses different kinds of materials some stores materials may be costly
while others may be less expensive. The firm should not keep same degree of control
on all the items of inventory. It is advisable for the store keeper to exercise better
control over such items which are very costly because a little negligence may cause
have loss to the enterprises. Thus approach of selective control system is popularly
known as ABC control.

5. Just in time approach (JIT approach)-

Under this approach, the firm should maintain a minimum level of inventory and rely
on suppliers to provide raw materials and other requirements immediately as soon as
order is placed.

6. Material or inventory turnover ratio-

Inventory turnover ratio is also one method of exercising materials control.

7. Other techniques-

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
ANALYSIS AND INTERPRETATION OF DATA-
1. Size of inventory-

Growth of total inventory= (closing inventory-opening inventory)/opening inventory

Table showing inventory from the year 2014-2015 to 2016-2017

Year Closing stock Opening stock Growth of total

inventory (in %)
2014-2015 102960.00 1902680.00 -94.5
2015-2016 88920.00 102960.00 -13.6
2016-2017 128400.00 88920.00 44.39

Growth of total inventory (in %)

60

40

20

0
2014-2015 2015-2016 2016-2017
-20

-40

-60

-80

-100

-120

Interpretation-
 Size of inventory for 2014-15 is (-94.5) %.
 Size of inventory for 2015-16 is (-13.6) %.
 Size of inventory for 2016-17 is 44.39 %.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
2. Inventory to working capital-

Inventory to working capital ratio is defined as a method to show what portion of a

company inventory is financed from its available cash.

Inventory to working capital = total inventory / working capital

Table showing inventory to working capital

years Total inventory Working capital % of inventory to
working capital
2014-2015 102960.00 1624392.47 6.33%
2015-2016 88920.00 1522249.79 5.84%
2016-2017 128400.00 1927409.59 6.66%

% of inventory to working capital

6.80%

6.60%

6.40%

6.20%

6.00%

5.80%

5.60%

5.40%
2014-2015 2015-2016 2016-2017

Interpretation –
 Inventory to working capital for 2014-15 is 6.33%.
 Inventory to working capital for 2015-16 is 5.84%.
 Inventory to working capital for 2016-17 is 6.66%.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
3. Inventory to current assets-

A current assets is an item on an entity’s balance sheet that is either cash, a cash
equilvalent, or which can be converted into cash with in one year.

Inventory to current assets = total inventory / current assets

years Total inventory Working capital % of inventory to

current assets
2014-2015 102960.00 7109944.58 1.44%
2015-2016 88920.00 6806104.37 1.30%
2016-2017 128400.00 8506043.49 1.50%

% of inventory to current assets

1.55%

1.50%

1.45%

1.40%

1.35%

1.30%

1.25%

1.20%
2014-2015 2015-2016 2016-2017

Interpretation –
 Inventory to current assets for 2014-15 1.44%.
 Inventory to current assets for 2015-16 1.30%.
 Inventory to current assets for 2016-17 1.50%.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
4. Inventory turnover ratio-

Inventory turnover is a ratio showing how many times ac company’s inventory is sold
and replaced over a period of time.

Inventory turnover ratio = cost of goods sold / average inventory

Table showing the inventory turnover ratio

Year Cost of goods sold Average inventory Inventory turnover

ratio (in %)
2014-2015 7697559.32 1002820.00 767.59
2015-2016 3438557.00 95940.00 3584.07
2016-2017 52349861.45 10866.00 4817.65

Inventory turnover ratio (in %)

6000

5000

4000

3000

2000

1000

0
2014-2015 2015-2016 2016-2017

Interpretation –
 Inventory turnover ratio for 2014-15 767.59%
 Inventory turnover ratio for 2015-16 3584.07%
 Inventory turnover ratio for 2016-17 4817.65%

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]

5. Inventory to sales ratio-

The amount of stock that a company has compared with the amount of goods that they
have sold in a particular period of time.

Inventory to sales ratio = average inventory/ sales

Table showing the percentage of inventory to sales

Year Average inventory Sales Inventory to sales
ratio (in %)
2014-2015 1002820.00 19935059.44 5.03%
2015-2016 95940.00 11001667.79 0.87%
2016-2017 10866.00 14657907.74 0.74%

Inventory to sales ratio (in %)

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%
2014-2015 2015-2016 2016-2017

Interpretation –
 Inventory to sales ratio for 2014-15 5.03%.
 Inventory to sales ratio for 2015-16 0.87%.
 Inventory to sales ratio for 2016-17 0.74%

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]

6. 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.

Inventory conversion period = 360 days’ / inventory turnover ratio

Table showing the inventory conversion period

Year Days Inventory turnover Inventory
ratio conversion period
(in %)
2014-2015 360 767.59 46.90%
2015-2016 360 3584.07 10.04%
2016-2017 360 4817.65 7.47%

Inventory conversion period (in %)

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2014-2015 2015-2016 2016-2017

Interpretation –
 Inventory to conversion period for 2014-15 46.90%.
 Inventory to conversion period for 2015-16 10.04%.
 Inventory to conversion period for 2016-17 7.47%.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]

FINDING-
 The size of inventory is recent years is increase the 2016-2017compare to 2015-2016
and 2014-2015.

 Inventory to working capital it was increased for year 2016-2017compare to 2015-

2016 and 2014-2015.

 Inventory to current assent it was increased for year 2016-2017compare to 2015-2016

and 2014-2015.

 Inventory to turnover ratio it was increased for year 2016-2017compare to 2015-2016

and 2014-2015.

 Inventory to sales ratio is more for year 2014-2015 it further it decreses for year 2015-
2016 and again it decreses for the year 2016-2017.

 Inventory to conversion period is more for year 2014-2015 it further it decreses for
year 2015-2016 and again it decreses for the year 2016-2017.

 Monthly meetings are conducted to review the inventory status.

 Physical verification of all the materials is done when they received and also
periodically.

 Materials planning are based on order obtained from different customers. Thematerial
requirement plan is to be give exact requirement of materials be produced.

 Vendors are selected based on their performance with respect delivery, quality price
and standard, more preference is given only to quality of the materials.

 Alankar enterprise almost adopted all the modern management techniques like 7s to
keep work place clean and neat.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
SUGGESTION-

 The company should avoid over stocking or under stocking in the stores and spares
department. This can be done by maintaining stock levels.

 The company should try to increase the total inventory as well as working capital to
manitain the level of inventory to working capital of the firm.

 The company should try to increase the total inventory as well as current assets to
manitain the level of inventory to current assets of the firm.

 The company should try to increase the cost of goods sold as well as average
inventory to manitain the level of inventory to turnover ratio of the firm.

 The company should try to increase the average inventory as well as sales to manitain
the level of inventory to sales ratio of the firm.

 The company should try to increase the days as well as turnover ratio to manitain the
level of inventory to conversion period of the firm.

 Company should take measure for maintenance of proper stores and spare so as to
avoid the storage of products.

 The company should avoid over stocking in the stores and spares department.

 There is need to develop good communication system between various departments.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]

CONCLUSION
Alankar Enterprises is a well-managed company earning profit. The overall study shows that
the company is maintaining a good inventory system and also trying to increase its efficiency
in managing the fund. This I came to know by analysing different type of ratios like
inventory to working capital ratioetc., which is improving compared with other years.
The inventory management study for AlankarEnterprises implies that investment in
the inventory is reduced in order to avoid blockage of funds.
Thus the study indicates that the Alankar Enterprises is function very well and trying
to adopt new techniques in order to increases its efficiency in the management.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
LEARNING EXPERIENCE-
The internship program of 30 days @ Alankar Enterprises provides me a very good
opportunity to know the organizational structure, formation and it’s working. It helped to
gain practical knowledge about different function of various department of the company. This
training helps to make a thorough study of the company’s activities in each section and to
acquire and practical knowledge in this filed.
I got opportunity to visit production department to view the process of production. In fact,
it was good experience to enter in to a production department, to see the production process.
It gives an opportunity to see how few managers managed number of employees and
machines to run the company with profit, more over the in plant training was good exposure
to learn about the working conditions of the organization. Another important aspect noticed
in the company was regarding discipline followed in the office.

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
A. ANALYSIS OF FINANACIAL STATEMENT-
ALANKAR ENTERPRISES
BALANCE SHEET AS AT 31ST MARCH 2015
Liabilities amount assets amount

Capital accounts Fixed assets (gross)

(as per schedule A) 13442823.45 (As per schedule D) 12129826.69

Secured loans
(As per schedule B) 3191806.72 Investment & Deposits 3080411.00
(As per schedule E)

Unsecured loans 200000.00 Current Assets, loans &

(As per schedule B) Advance 48400.00
Umesh Enterprise 4186245.25
Sundry Debtors (As per list) 102960.00
Closing stock

Current liabilities & 5485552.11 1637074.16

Provisions Duties & taxes
(As per schedule C) (As per schedule F)
Belgaum industrial bank-179 12611.79
SBI C/A 1122653.38
Cash in hand

Total Rs. 22320182.28 Total Rs. 22320182.28

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
ALANKAR ENTERPRISES
TRADING & PROFIT &LOSS ACCOUNTFOR THE YEAR ENDING
31ST MARCH,2015
Expenses Amount amount Income amount amount
To, Opening 19,02,680.00 By, sales 19935059.44
stock
58,97,839.32 Labour charges 16094948.58
To, purchase received(W/S)
account
Purchases 14.5% 5,41,668.00 Packing charges 84648.36
Purchases 5% 16,59,086.00
Purchases 5.5% 2341177.00 Sales of scarp-5% 67600.00
Interstate
purchases 2% 1319597.32 Sales interstate- 3295090.50
URD purchases 26311.00 2%
412300.00
Direct expenses Sales machined
Electricity 47,64,850.77 casting (W/S)
charges 14,38,963.00 14.5% -19912.00

Job work Sales rejections

machining 12,41,318.83 2% interstate 384.00
Charges
Sales (W/S)-5.0%
Labour charges 102960.00
1,92,157.00
Rep&maintain Closing stock
electricals-0% 19,379.00

Rep &maintain/c 95,258.00

Transportation
charges 6,68,401.00

Wages
1,07,683.00
Weightiest
charges
1690.00
Gross profit c/d
74,72,649.35

Total 20038019.44 Total 20038019.44

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
Expenses Amount Amount Income Amount Amount
Audit fees 14000.00
By gross profit 7472649.35
Accounting charges 43000.00 b/d
231647.34
Advertisement 4722.00 Indirect incomes
expenses 9375.00
Dividend received
Bad dads 114174.00 16866.00
Interest received
Bank charges 3208.68 on electricity
deposit 130064.00
Bonus 98258.00
Interest received
Consultation charges 17750.00 on FD 75340.00

Consultation fee 40831.60 Interest received

on RD 2.34
Conveyance 79097.00
Round off
Donation 72302.00

Depreciation 1903283.31

House rent 202126.00

allowance
70865.00
ESI
128459.75
Ineligible input vat
2014-15
8758.00
Insurance stock
1078981.51
Interest on capital
10.00
Interest TDS
280806.00
Interest on TL
133501.00
Interest on Cc loan
3610.00
Medical Aid

Newspaper & 330.00

periodical
8000.00
Penalty for E sugar

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
Postage & courier 2550.00
charges

Printing & stationary 23213.00

Professional tax 2500.00

Provident & family

pension fund 161158.00

Repairs & maintain

building 2500.00

Staff &worker’s 16535.00

welfare
65585.00
Tea & tiffin expenses
108649.61
Telephone charges
8144.00
Testing & lab charges
20049.00
Travelling expenses
74200.00
Vehicle rep &
maintenance
15000.00
Watchman salary
2060.00
Water charges
30950.00
Website charges
42056.00
Income tax 2014-2015
341230.00
TDS 2014-2015
1734190.70
Salary to partner

Net profit transfer to 739352.53

partner
C.M. chougule
M.M. chougule
S.M. chougule

Total 7704296.69 Total 7704296.00

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
ALANKAR ENTERPRISES
BALANCE SHEET AS AT 31ST MARCH 2016
Liabilities amount assets amount

Capital accounts 13327727.66 Fixed assets (gross) 10559250.72

( As per schedule A) (As per schedule D)

Secured loans
(As per schedule B) 1487539.85 Investment & Deposits 2832267.00
(As per schedule E)

Unsecured loans Current Assets, loans & 6803104.37

(As per schedule B) 98500.00 Advance
( As per schedule F)

Current liabilities & 5283854.58

Provisions
(As per schedule C)

Total Rs. 20197622.09 Total Rs. 20197622.09

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
ALANKAR ENTERPRISES
TRADING & PROFIT &LOSS ACCOUNT FOR THE YEAR ENDING
31ST MARCH, 2016
Expenses Amount amount Income amount amount
To, Opening stock 102960.00
By, sales 11001667.72
To, purchase 3424517.00
account Labour charges 1483686.00
received(W/S)
Purchases14.5% 260145.00
Purchases 5% 1748595.00 Packing charges 76504.00
Purchases 5.5% 659309.00
Interstate pur2% Labour charges
with C form 488700.00 received(interstate) 5155734.84
Interstate pur2%
without C form 233188.90 Sales interstate 2% 3314777.95
URD purchases 34579.00
Sales 14.5% 825550.00
Direct expenses 3353014.01
CST sales 14.5% 88679.00
Electricity charges 850912.00
Job work machining Sales(W/S) 5.0% 56736.00
Charges 819707.33
Labour charges 56546.00 Closing stock 88920.00
Rep& maintain
electricals-0% 49765.00
Rep & maintain m/c 67313.68
Transportation
charges 242852.00
Wages 1188831.00
Weightiest charges 4880.00
Consumables and
store 0% 3352.00
Fuel & Oil 60855.00
Rent of shed 8000.00

Gross profit c/d 4210096.78

Total 11090587.79 Total 11090587.79

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
Expenses Amount amount Income amount amount
Audit fees 15000.00
By gross profit 4210096.78
Accounting charges 42000.00 b/d
279289.00
Advertisement 858.00 Indirect incomes
expenses
Interest received 8341.00
Books and 1380.00 on electricity
periodicals deposit 262000.00

Bank charges 1450.00 Interest received

on FD 8948.00
Bonus 99069.00
Interest received
Computer repairs 1800.00 on RD
and accessories

Consultation fee 49610.00

Conveyance 74889.00

Donation 4744.00

Depreciation 1570575.97

House rent 207155.00

allowance

ESI paid 68976.00

Ineligible input vat 34485.00

(2015-2016)

Insurance stock 8021.00

Interest on capital 775081.00

Interest on TDS 48.00

Factory licence fees 4000.00

Interest on Cc loan 256987.00

Income tax paid 4410.00

Interest on VAT
(2005-2006) 4804.00

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
Penalty on VAT 7207.00
(2005-2006)

Postage & courier 670.00

charges

Printing & 22717.00

stationary

Professional tax 2500.00

Provident & family 161370.00

pension fund

Repairs & maintain 39020.00

building

Staff &worker’s 95743.00

welfare

Remission 76134.00

Security charges 30500.00

Telephone charges 109305.47

Rounding off diff 11.73

Travelling expenses 14433.00

Vehicle repairs & 24345.00

maintenance

Water chargers 7100.00

Website charges 16450.00

Salary to partner 329076.31

TDS 2014-15 430.00

Income tax for FY 107739.00

15-16
Net profit transfer 219291.20
to partner
C.M. chougule 73112
M.M. chougule 73090
S.M. chougule 73090
Total 4489385.78 Total 4489385.78

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
ALANKAR ENTERPRISES
BALANCE SHEET AS AT 31ST MARCH 2017

Liabilities amount assets amount

Capital accounts Fixed assets (gross)

(As per schedule A) 14412342.62 (As per schedule D) 9601318.13

Secured loans
(As per schedule B) 3299001.00 Investment & Deposits
(As per schedule E) 6266116.00

Unsecured loans Current Assets, loans &

(As per schedule B) 83500.00 Advance 8506043.49
( As per schedule F)

Current liabilities &

Provisions 6578633.90
(As per schedule C)

Total 24373477.95 Total 24373477.95

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
ALANKAR ENTERPRISES
TRADING & PROFIT &LOSS ACCOUNT FOR THE YEAR ENDING
31ST MARCH, 2017
Expenses Amount amount Income amount amount

To, Opening 88920.00 By, sales 14657907.74

stock
Labour charges 1272049.64
To, purchase 5274341.45 received(W/S)
account
Packing charges 61960.00
Purchases 14.5% 204424.20
Purchases 5% 2128215.56 Labour charges
Purchases 5.5% 1916668.48 received(intersta 5251040.00
Interstate te)
purchases 2% 689462.21
Interstate Sales interstate 3161685.00
purchase 5.5% 290612.00 2%
Interstate
purchases 12.5% 3000.00 Sales 14.5% 2289580.00
URD purchases 41959.00
CST sales 2637829.00
Direct expenses 3852575.55 14.5%

Electricity 915994.00 less-sales

charges rejection 14.5% 16236.00
(interstate)
Labour charges 1487431.25
2621593.00
Rep & maintain 104167.30
m/c Closing stock 128400.00

Transportation 278337.00
charges

Wages 1044646.00

Rent of shed 22000.00

Gross profit c/d 5570470.74

Total 14786307.74 Total 14786307.74

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
Expenses Amount amount Income amount amount

Audit fees 15000.00 5448040.81 By gross profit 5570470.74

b/d
Advertisement
expenses 5000.00 Indirect 46635.00
incomes
Bank charges 3636.30
Interest received 33902.00
Bonus 104144.00 on FD

Computer repairs 4500.00 Interest received 12733.00

and accessories on RD

Consultation fee 60770.00

Conveyance 38665.00

Depreciation 1618587.59

House rent
allowance 166916.00

ESI paid 59443.00

Intelligible input
vat (2016-17) 73819.42

Interest on capital 1520560.00

Interest on Cc
loan 195146.50

Postage & courier

charges 1770.00

Printing &
stationary 6970.00

Professional tax 2500.00

Repairs &
maintain building 23538.60

Telephone 115592.82
charges

Travelling 14255.00
expenses

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[DOCUMENT TITLE]
Vehicle repairs &
maintenance 97933.56

Water charges 5950.00

CST 2013-14 3790.00

Interest on CST 1938.00

2013-14

Legal fees 71783.00

Rounded off 177.88

Salary to partner 834989.00

Stock insurance 2093.00

Excise duty
Absorbed 113677.14

Provided fund 141895.00

Tea and tiffin

expenses in house 12801.00

Income tax 131099.00

Net profit
transfer to
partner 169064.93
C.M. Chougule 56366.25
M.M. chougule 56349.34
S.M. chougule 56349.34

Total 5617105.74 Total 5617105.74

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 ALANKAR ENTERPRISES
[DOCUMENT TITLE]
BIBLIOGRAPHY
 Company records
 Internet
http://seminarprojects.com\Thread-inventory- management
 Book- working capital management author name-Dr .HARSHAL N.
TAMHANKAR.

D.M.S. MANDAL’S COLLEGE OF BUSINESS ADMINISTRATION, BELGAUM 54