FACT SHEET OF SURYA RUBBER

 Nature of Business Manufacturer

 Additional Business Supplier

 Company CEO Mr. Ajay Bedi

 Year of Establishment 1995

 Legal Status of Firm Private Limited Company

 Surya Rubbers is one of the leading
manufacturers in Microcellular rubber sheets,
Eva rubber sheets, Eva Insole, Rubber sole
sheets, Heel sheets, Block sheets, Rubber
hawai chapples.
 These products are used in footwears, packing
industry, printing industry, house hold goods,
Engineering & Mechanical industry inputs etc.
 Surya Rubber range of technologically-
advanced products are fabricated with finest
grade raw material and cutting edge tools.
The company has also planned to
open a stream of new branch
offices abroad to expand their
business operations
Surya Rubber has been able to become
the leader in this industry, owing to the
support of team members.
PRODUCTS

•Eva rubber sheets

•Eva Insole
•Rubber sole sheets
•Heel sheets
•Block sheets
•Rubber hawai
chapples
 To study the Production Process of EVA Sheet in
Surya Rubber
 To find out the impact of inventory on working
capital.
 To study the material management and its
effective control through various techniques.
 To suggest the measures for improving the
inventory level.
•Time limits of six weeks were not enough.
•Not wide area to be covered.
•Study has limited use as single ratio is used to draw
conclusion.
•Some of the information was kept confidential and
was not disclosed to any person whosoever.
RAW MATERIAL TURNOVER RATIO:
Raw Material Turnover Ratio

12
10.75
10.27
10
Ratio (in times)

4
1.74
2

0
2016-17 2015-16 2014-15
Year

 Raw material turnover ratio is increased rapidly in 2014-

15 from 1.74 in 2015-16 to 10.27 for 2016-17. Indicates
that company is converting raw material into finished or
semi finished goods very quickly.
HOLDING PERIOD OF RAW MATERIAL:

Holding period of raw material

250
206
200
No. of Days

150

100

50 33 35

0
2016-17 2015-16 2014-15
Year

 In 2014-15 conversion period was 206 days but in

decreased to 35 days for 2015-16. This is shown in above
graph. Before 2016-17 there was no production process
they were converting semi finished goods into finished
products hence to start their own production process they
hold the raw material in 2015-16.
WORK IN PROCESS TURNOVER RATIO:

Work in Progress turnover Ratio

40 36.98 37.01
35
30
Ratio (in times)

25 23.12
20
15
10
5
0
2016-17 2015-16 2014-15
Year

 Work in process turnover ratio is decreasing from 37.01

in 2014-15 to36.98in 2015-2016. The ratio was high in
2014-15 as compared to 2015-16 and 2016-17. The
ratio was 37.01 Indicates that company is converting
semi finished into finished goods quickly.
HOLDING PERIOD OF W.I.P:
Holding period of W.I.P

18
15.57
16
14
12
No. of Days

9.73 9.72
10
8
6
4
2
0
2016-17 2015-16 2014-15
Year

 As the work in process turnover ratio is increasing

from 9.72 in 2014-15 to 15.57 for 2016-17 it
indicates that firm is taking less days for
conversion, which shown in above graph.
FINISHED GOODS TURNOVER RATIO:
Finished goods turnover ratio

34
33.01
33 32.35
32
Ratio (in times)

31
30
29
27.95
28
27
26
25
2016-17 2015-16 2014-15
Year

 finished goods turnover ratio is decreasing from 33.01 in

2014-15 to 27.95 for 2015-16. Indicates that company is
selling goods little slowly as compared to 2015-16 but it is
bit fast as compared to 2016-17. Where the ratio for that
particular period was 32.35 increased to 11.20 for 2015-16
it is satisfactory. Which shown in above graph.
 Raw material turnover ratio is increased rapidly in 2016-17 from 1.74
in 2014-15 to 10.27 for 2015-16.
 As the raw material turnover ratio is increasing form to 10.27 for
2015-16 it indicates that firm is taking less days for conversion as
compared to 2 014-15.
 Work in process turnover ratio is decreasing from 37.01 in 2014-15
to 23.12 2016. The ratio was high in 2014-15 as compared to 2015-
16 and 2016-17.
 As the work in process turnover ratio is increasing from 9.72 in 2014-
15 to 15.57 for 2016-17 it indicates that firm is taking less days for
conversion
 Finished goods turnover ratio is decreasing from 33.01 in 2014-15 to
27.95 for 2015-16. Indicates that company is selling goods little
slowly as compared to 2014-15 but it is bit fast as compared to
2016-17.
 Purchase Raw Materials at the time when the stock reaches
the minimum level.
 The purchases should not cross the Maximum limit otherwise
the stock kept in stores idle.
 We can have more Raw materials which are imported from
other countries but carry reasonable stocks which are available
locally.
 If we purchase less quantity of materials at a time it will reduce
the carrying cost but increases the ordering cost and vice
versa. Therefore optimum ordering quantity is necessary, which
minimizes the cost.
 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.
 Optimum order quantity should be maintained, hence
cost can be minimized.
 Proper inventory control techniques are employed by the
inventory control organization within the framework of
one of the basic models like ABC, HML and VED etc.