1.

1 INTRODUCTION:
Stock or Inventory is the goods and materials that a business holds for the
ultimate goals of sale. Inventory management is for keeping the materials required for
manufacturing the finished goods to lessen the break down time and to keep the records of related
activities.

1.2 INDUSTRY PROFILE:

It belongs to electronic transformers manufacturing industry, which manufactures Transformers

tanks up to capacity of 252 KVA, 11/0.434 KV class. They are licensed by ALL ESCOMS and
manufacture and distribute transformers for industries, BDA & personal layouts, multi -storied
building and residences within the Bangalore (abbigere) and state of Karnataka. It is not solely
producing transformers, service additionally offer this company.

The company’s trend for distribution of transformers is largely associated with power
generation program envisaged for the country and rural electrification. The demand for these
transformers is probably going to extend significantly. The facility of transmitted at high voltage
11000 volts , stepped all the way down to 433 volts with these distribution transformers.

The company also manufactures some spare parts and components used in Automobiles
(steering column brick, battery carrier, electrical mounting paddle, cam mounting, brake paddle)
as per necessities of the clients.

Manufacturing Tools:
 Pressing
 Drilling
 Cutting
 Wielding.

Manufacturing Products:

 ARC Transformer.
 Auto step Transformer.
 Furnace Transformer.

1
  Dry type Transformers.

1.3 IMPORTANCE & NEED FOR THE STUDY:

The inventory plays vital role in the economic operations of the company. Inventory is the major
item in most of the businesses which involves huge investment of funds. Hence, it requires proper
control on storage cost and ordering cost. Inventory management aids the organisation to manage
inventories for avoiding uninterrupted manufacturing process, also support for smooth
functioning of activities. In shortage of stocks, the company should buy within possible time as it
reduces the customer order. It helps in management of continuous supply of in and out flow of
the prevailing inventory.

1.4 THEORTICAL BACKGROUND OF THE STUDY:

Inventory refers to the materials that are maintained at intervals that associate trade for
the reason of sale. Inventory management is science specifically around stipulating the shape and
per cent of stock of merchandise. The inventory has required areas with a bit facility or at
intervals varied location of the serves network in lead of general & deliberate direction of company
students have provided you with a combine of definitions of stock and also the approach one can
manipulate the stock. Therefore, special definitions may additionally be determined in exclusive
references.

Inventory management refers to all or any the events involved in establishing and managing the
stock stages of raw materials, demonstration progress materials and completed things so as that
enough provides are on the market and also the bills of over or below stocks are low.

Flower the corporate management system (2014) used the mathematical modelling in show the
inventory management system is best performed once operated beneath seller – Managed
Inventory (VMI) and show the potential of reducing the standard inventory holding the value. A
dog, and paloverde (2014) analyzed the warehouse and inventory management system in shell
petroleum development company (SPDC) in African country and incontestable the utility of ICT
as a veritable added tool in inventory management apply. Ali is corporate (2013) is additionally
tried to justify the employment of changed Wagner-whiten logistic-based approach to managing
inventory of transformers merchandise.

2
Kurano (2014) used company applied mathematics method watching tools within the inventory
management levels and stock out of the key metrics in achieving proactive inventory policy
intervention within the context of cooperative provide chains. Their results showed the likelihood
of detective work out of the management provider signals beforehand and considerably reducing
stock out of the dynamic adjustment of inventory management levels. The equally, Achebe
associated moorage (2013) development in probabilistic model to analyzed secondary knowledge
over 2003 - 2012 of an endemic towards developing within the inventory management policy
(ordering and rearrangement levels) of electrodes packing used for fastening oil and gas pipelines.
Researchers have conjointly explored alternative mathematical approaches like fault tree analysis
and convexity to optimize inventory demand in transformers producing (chrng 2013), and bike.

1.6 INVENTORY TYPES:

Inventories take part in a very important position in a business or character of the business. An
inventory can been divided as under.

• RAW MATERIALS:

Raw materials will be measured as basic inputs of production method and that are reworked
into finished merchandise by the assembly method. It’s one among the unit that is been purchased
and assembled or warehoused for the longer term necessities of production method.

• SEMI FINISHED PRODUCTS:

Semi-finished merchandise check with the merchandise that are part finished at the time of
producing method. Semi-finished merchandise are stocks and elements that have a metamorphosis
into finished merchandise.

• FINISHED GOODS:

The producing of products has been completed and to be distributed to ultimate clients, in
which it is named as finished product. Here, a chain which provides managing stream, finished
merchandise of a dealer will represent the raw objects of a customer.

3
1.7 REASON TO KEEP INVENTORIES:

Some of certain reason used for keep as inventories.

• Time: The inventory postponement reward among expectations of client is that the
provide to provider person the every level needed within the keep distinctive quantity of
stock to within the inventory in lead of your time.
• Uncertainty: Inventories are assembled and hold on for the aim to face uncertainties
of demand and provides and action of merchant.

Essentials of inventory control:

 Correct division of materials together with codes, materials substanderdization and

simplification for the aim of straightforward identification.
 The operation of a rendezvous of inner check to ensure that each one exchanges as well
as materials and kinds of substances are checked suitably approved and autonomous
persons.
 The operation of frameworks of endless stock with the goal that it's conceivable to
make your mind up time, the add and valve of type of materials in inventory.

Objectives of inventory control:

 To keep up a considerable variety of stock for effective and sleek running and deals
operation.
 To cut back the opportunity cost and time consumption.
 To manage a minimum investment in stocks to extend the revenue.
 To retain adequate inventories of raw materials at intervals amount of little deliver and
expect worth vary.
 Investment management on inventories to keep up associate optimum level.

Advantages of inventory control:

 Cost reduction and savings.

 Increase effectiveness.
 It decreases the danger of loss by fraud and felony.

4
  Risk because of physical decoration.
 Excessive stocks.
 It helps to stay continuous stock and any statement to facilitate for examines the precise
material report administration.

1.8 Tools and techniques of inventory management:

Efficient stock maintenance desires associate economical dominant structure

to inventory. The careful stock manage isn't solely facilitate to minimizing actual risks of liquidity,
decreasing price of products however additionally it helps to extend the organization. The
subsequent are often thought of because the tools and technique used for effective inventory
managing and organizes.

 Lead time.
 Determinations of the merchandise.
 Material producing system inventories.
 ABC analysis.
 Inventories turnover quantitative relation.
 Preparations of inventory reports.
 Determinations of stock levels.

Lead time:

Lead-time is that the amount that slips by between the acknowledgment of want and
satisfactions. There’s an on the spot relationship between time interval and inventories the extent
of stock of a factor depend on the length of its time interval. Time interval has 2 organizations
(organization time interval) from begin of acquisition activity till setting up missive of invitation
and time interval for technique referred to as conveyance time interval submitting missive of
invitation till the conveyance of requested material restrictive lead time trails conveyance is taken.

Administrative lead time Procedures lead time

Lead time

5
It is often seen that heft of interval is concerned by authoritative interval this is often the time over
that a corporation has management nonetheless at the identical time Associate in Nursing excessive
quantity of your time is concerned within the accretive and review of product.

Determination of the merchandise:

Well-being stock exists for support to assemble numerous unforeseen increment throughout
observe. The employment of stock not be cleanly forecast the changes on top of amount. The
interest used for material may vary furthermore conveyance for stock may likewise postponed and
such a circumstance the firm may confront issue of stock-out to confirm against the stock out rising
out of vacillations, firm may as a rule, maintain some fringe of security stock. 2 prices re for the
foremost half included:

• Opportunity cost
• Carrying cost

Opportunity cost:

It is as well-known as unseen worth. The inventory on read is that the difficulty once firm
should not be overwhelming models of associate degree object in retailers however there is demand
geared toward the item either for the customers or the creation section. The inventory out refers to
zero degree inventories. Thus there's a rate of stock out among the expertise that the corporation
appearance a difficulty of misplaced earnings are once more orders. The stock-outs are fairly dear.
The carrying rate associate degree ordering rate that are opposite forces. They check the extent of
inventories in a very organization.3. Requesting expense of stock.

The fundamental issue of stock is chosen the reorder purpose. The purpose demonstrates
once asking must be set. The reorder position is resolved through the help of those effects.

 Economic request quantity at the purpose once stock is drained to guide time utilization,
the request must be planed.
 Average utilization rate.
 Lead time.

6
Carrying cost:

Protection of a stock of 1 component of a Raw materials.

Total carrying cost = Carrying cost per * average inventory.

ABC analysis:

ABC It divides numerous inventories into 3 set or cluster priority of that allotted
management effort in proportion of the priority. The a lot of usable things are divided into class A,
those of middle things are divided into class B, stay things are divided into class C; the monetary
government ought to observe the things belongs to completely different cluster in type to main
concern and relying ahead the consumption. The item by higher valve run precedence and is
controlled than low valve factor. The re rational limit might follow analysis.
Category Item Percentage Percentage to total
consumption of material

Category A 5 TO 10 70 TO 80

Category B 15 TO 30 15 TO 30

Category C 70 TO 80 5 TO 10

V.E.D Analysis:

The V.E.D analysis is utilized for many further elements. The wants and earnestness of
additional elements is distinctive of the materials. A.B.C analysis may not utilize for further
element. The interest for further elements depend on the execution of the plant with equipment.
Save half are delegated (V) very important, (E) Essential, (D) fascinating. The imperative elements
are AN absolute necessity for management the concern simply and these need to survive away
satisfactorily. The E further is to boot elementary but, their stock may keep at low figures. The
stock D of variety of extras may maintain a strategic distance from ordinarily. On the off

7
probability that the leadtime of this further could be a smaller quantity, next load of those extras
could keep left since.

1.9 INVENTORY TURNOVER QUANTITATIVE RELATION:

These are cipher to precise whether or not inventory might or might not utilize proficiently.
Aim to guarantying preventative of simply important least reserve into stock. The stock financial
gain proportion might acknowledge as stock speed, usually discovered as deal. Traditional stock
or price of merchandise sold/ traditional stock expense.

 Inventory turnover ratio = Cost of goods sold/ average inventory

Inventory report:

From powerful stock management, the administration should educate once is minimum
merchandise of position numerous things. The ordinarily means by prepare in staple stock reports.
All reports should all information very important FO body activity. On the premise of those reports
are readied.

Valuation of inventory:

Estimation of products has a direct bearing in pay concern thus it's essential that a technique
for evaluating be such it provides a sensible estimation of stock. Distinctive techniques for
estimating offer various good thing about motility materials and leave the extent of window
dressing. To defend open interest administration of Republic of India thus as based statutory
management to forestall serial changes of fabric valuations technique. A worry can have to utilize
a particular valuation technique for the board should endorse no but 3 years and each from should
favour any progressions there.

It provides the money valve to the parts that helps to create up their inventories. These are most
vital to any business and also the correct dimension can helps to urge an accurate monetary records.
If it fails to live properly it'd have face improper balance between the price, financial gain and
results in poor business.

8
Determinations of stock levels:

To associate in nursing economical inventory management needed the firm needs to

maintain optimum level of inventory effects are less at the identical time if the firm has not having
stock outs it impact on sales and productions. A number of the amount of stocks will followings.

A) Minimum level: That refers to the capability that ought to be maintain within the hand at each
periods of your time.

Minimum stock level = Re – order level – (Normal consumption*Normal re-order period).

B) Re-order level: Re ordering level or order level is mounted between lowest level and highest
level

Re- order level = Maximum consumption * Maximum re – order period.

C) Maximum level: Is quantity of apparatus previous that the corporate should not go higher than
its stock. However the extent exceed minimum level edge then it might be.

Maximum stock level = Re – order + Recodering Quality.

D) Danger level: Is prior to that material should not fall in whichever cases. However risk level
begin once instant.

Danger level= Average consumption * Maximum re-order period for purchase.

E) Average stock level: it is calculate as such

Average stock = Minimum stock level + ½ of re-order level

The valuing strategy:

 FIFO (first in first out) method:

The cost of stock oversubscribed on the value of fabric got initial of your time, but price
|the value the price} of stock on cost of fabric obtained later of the year. These ends up in
staple of within the bases honored of this assets within the value. Is material thick of times
of inventory, value of FIFO come through the insignificant analysis of the inventory in
among the techniques, & most supported raised pay.

9
 LIFO (last in first out) method:
The staple is value supported the value of staple no heritable towards the consummation of
the time, realizing prices that immovably unpleasant current value. The stock but within
the conclusion material of all as been inpsectionced bought of the year finish. The daily
and times of development, in sages of LIFO is understand the foremost wonderful analysis
in staple values available oversubscribed among the approaches within the inventory
management.
 The method of average pricing
1) Method of simple average.
2) Method of Weighted average.
The material is that the lot a of expense of product sale are market primarily
based to traditional expense of all part bought through time. The ability of material within
the turnover quickly this methodology of closely be like FIFO than inventory accounting.
 Level of product value.
 Method of staple.
 Customer and market.

10
2.1 Review of literature and gaps:

Inventory refers back to the materials in manicuring in the goods that an

industry holds for the excellent reason of resale. Inventory management is science in particular
approximately stipulating the shape and per cent of stock of goods. The inventory has required
areas with a work facility or inside various location of the serves network in lead of general &
deliberate direction of construction then inventory of raw materials.Many scholars have provided
you with a couple of definitions of stock and how one can manipulate the stock. Therefore, special
definitions can also be determined in exclusive references.

Inventory management refers to all the events concerned in establishing and managing the stock
stages of uncooked materials, work-in progress materials and completed items in order that enough
provides are available and the bills of over or below stocks are low.

Zinnia the company management system (2014) used the mathematical modelling in show the
inventory management system is better performed when operated under Vendor – Managed
Inventory (VMI) and show the potential of reducing the traditional inventory holding the cost.
Adoga and valverde (2014) analyzed the warehouse and inventory management system in shell
petrolcum development company (SPDC) in Nigeria and demonstrated the utitity of ICT as a
veritable value-added tool in inventory management practice. Ali is company (2013) is also tried
to justify the use of modified Wagner-whiten logistic-based approach to managing inventory of
transformers products.

Kurano (2014) used company statistical process monitoring tools in the inventory management
levels and stock out of the key metrics in achieving proactive inventory policy intervention in the
context of cooperative supply chains. Their results showed the possibility of detecting out of the
control supplier signals beforehand and significantly reducing stock out of the dynamic adjustment
of inventory management levels. The similarly, achebe and moorage (2013) development in
probabilistic model to analyzed secondary data over 2003 - 2012 of an indigenous towards
developing in the inventory management policy (ordering and reordering levels) of electrodes
packing used for welding oil and gas pipelines. Researchers have also explored other mathematical
approaches such as fault tree analysis and convexity to optimize inventory demand in transformers
manufacturing (chrng 2013), and bike-sharing (raviv and kolka, 2013).

11
2.2 STATEMENT OF THE PROBLEM:

The problem hand-picked to the analysis is “an analysis on stock levels

management in M/s Balaji enterprises, the effectiveness of the prevailed inventory system is
analyzing at the same time. The difference of the costs of raw materials are analyzing with their
effects on the general operating of the unit.

The literary that means of the word “inventory” is stock of products. Each mercantilism desires
inventory for sleek running of its works. It is a link between production and distribution method.
The unforeseen fluctuation in demand and provide of products additionally necessitates the
necessity for inventory. It additionally offer a cushion for future worth fluctuations.

The target of inventory management is to make sure convenience of materials in spare quality and
quality as and once needed and additionally to reduce investment in inventories. So it's terribly
essential to possess correct management and management of inventory.

Inventories play a significant role operational of realty trade. The inventory ensures operational
smoothness. In most the organization the substantial a part of capital is endowed with in
inventories. Inventory refers to stock of product a firm that's available and additionally the
elements that form up the merchandise. Inventories represent a significant portion. Regarding sixty
one of total current assets. Hence, management of inventory becomes penal to the prosperous
management of overall capital of a commercial enterprise.

The control of inventory is important for hindrance of discharge, spoilage, deterioration,

degeneration, wastage of materials. It goals at rising things handing, saving in material price,
inflated production and enormous profile. The stock management could be a part of designing
budget, which regularly fails inside monetary space.

2.3 SCOPE OF THE STUDY:

In any organization starts with needed capital together with the people that is with their goals to
realize and it is achieved with the individual involvement and each individual interest.

12
The thought of inventory management is consisting of a lot of stocks and additionally toddler, and
therefore the safe management of stocks level is a lot of advanced and wish longer as a result of if
it's not following refined technology as per current situation.

The inventory management is extremely a lot of required to BALAJI ENTEPRISES Etc. It helps
to create out there of needed merchandise for assembly line to supply a product as per the client
schedule and reach them with finished merchandise at stipulated amount.

2.4 OBJECTIVE OF THE STUDY:

 To study the various stock levels maintained by the company.

 To know internal control process of the company.

 To review the existing internal control process adopted by the company.

2.5 SAMPLING:
For the purpose of making a study on more specific and analysis portion covers statements of
balance sheet and profile and loss ac for 3 years 2014-15, 2015-16, 2016-17.

2.6 TOOLS FOR DATA COLLECTION:

SOURCES OF DATA:

Information known with profit and losses is important for the study i.e. regarding the sources and
application of funds, Primary knowledge, and Secondary knowledge is gathering the P / L
account and record for examining various things.

The information is gathered in 2 ways that, such knowledge are as follows:

 PRIMARY DATA
 SECONADRY DATA

Primary data:

The primary knowledge assortment is one amongst the key tolls employed by the investigator of
knowledge assortment. It’s the primary hand info collected by the investigator from the
arespondents directly.

13
Primary knowledge is directly collected totally interviewing the highest executives and interaction
with finance department and company chief person.

Secondary data:

These are the sources of knowledge that are collected and complied for one more purpose. The
secondary consists of promptly obtainable knowledge and already complied applied mathematics
statement and reports whose knowledge is also employed by researchers for his or her studies.
Secondary knowledge for the current are collected from the subsequent sources, books.

 Company stock.
 Annual reports like Profit and loss a/c, record.
 Inventory management available.
 Annual statement of the corporate.

2.7 DATA ANALYSIS:

The data’s analyzed using the following tools and tables, graph.

2.8 LIMITATIONS OF THE STUDY:

 The study created supported the info given by all corporate connected workers.
 Study conducted just for the tutorial purpose.
 Certain information pertaining confidential matter problems not discovered.
 Because of time constraint in careful study is not possible.

14
3.1 PROFILE OF THE COMPANY:

The take this chance to introduce ourselves as a unit concerned in producing of distribution
electrical device , electrical device tank fabrication up to capability of 252 KVA , 11/0.433
potential unit category.

They licensed by ALL ESCOMS and manufacture and provide of latest distribution transformers
for industries, BDA & personal layouts, Multi-storied Buildings and flats within the state of
Mysore.

The would like to tell tour that we've been vendors approved by the KIRLSOKAR public utility
(Pune & Mysore), Major electrical advisor, Electrical category one contractors & Builders in
Mysore & different states.

This company request you kindly inscribe USA in your list of suppliers for offer of distribution
transformers and forward USA your valuable enquiries to change USA to participate in your
ventures. And reassuring you of the most effective services in the slightest degree times.

The company business the demand for distribution transformers is largely associated with power
generation program envisaged for the county and rural electrification. The demand for these

15
transformers is probably going to extend significantly. the ability of transmitted at high voltage
11000 volts, stepped all the way down to 433 volts with these distribution transformers.

Automobile makers equipment’s (steering column brick, battery carrier, electrical mounting
paddle, cam mounting, brake paddle, clutch paddle, all kinds of press elements and fabrication) as
per the wants of the client.

BALAJI ENTEPRISESS is that the company explicit within the year 2003, the corporate product
is producing within the power transformers. The corporate are has emerged because the reliable
manufacturer and repair supplier of impeccable vary wattage transformers. Company vary includes
high power transformers, power management within the universal power transformers, wattage
electrical device, distribution electrical device, electrical transformers and industrial transformers.
Line of work to the varied would like of varied industries. Its product vary is much appreciated for
top performance within the product is tolerance corrosion resistant and low maintenance. Ever
since of the institution, have maintained a relentless pursuit of improvement through moral
business practices and trendy production techniques. Its R & D is term with their constant product
up gradation and market data allows U.S. to fulfill the need of shopper as their specifications.

1. Capacity range : 25KVA to 252 KVA

2. Voltage range : 11/ 0.434 KVA
3. Basis of calculation : 25 KVA to 252 KVA

The industry basis is product pcs, range of pcs Steering column brick, battery carrier, Electrical
mounting paddle, all types of press components and fabrication will be all types of 4200 pcs.

3.2 Vision, Mission, Objective, and Philosophy of the Company:

VISION:

Vision while not action is simply a dream. Action while not vision simply passes the time vision
`and action will modification the globe. To be a pacesetter within the transformers producing.

MISSION:

A satisfaction client is that the best advertise for our merchandise, and to satisfy the client with
their efforts. To emerge as a most well-liked answer supplier for quality electrical device with a

16
team of dedicated skilled and business Associates United Nations agency are moral, worth driven
and build glorious client relationship.

PRODUCT:

• ARC Chamber Transformers

• Furnace Transformers
• Dry Sort Transformers
• Auto Step Down Transformers
• Auto Type Transformers
3.3 QUALITY POLICY OF THE COMPANY:

• Its prime focus is to product is highest quality of power transformers.

• Company up gradation of silk within the producing method.
• Assembly of the core unit H.T & L.T, coils.
• The corporate quality product on time of effective implementation of quality of
management system.
• The company quality is ISO 9001-2008 certified company.

Balaji enterprises are dedicated to ensure:

• The merchandise is continual improvement.

• Assembly of leads and creating of connections within the coils.
• Company review of highest quality of management system, the corporate organization of
all motivated within the members & suppliers.
• The power products is producing in the client satisfactions.

3.4 OBJECTIVE OF THE COMPANY:

• The corporate product is continuous up gradation of silk within the producing method.
• Company product are going to be enhancing of client satisfaction within the product.
• Providing defect free product on through effective implementation of quality management
system.

17
 • Continued review of quality management system, involving all the motive team members
and suppliers within the quality of the work system.
• The company continual development.

3.5 VALUE OF THE COMPANY:

• Work resolution
• Motivation
• Delegate
• Dignity
• Strategy
3.6 NATURE OF THE COMPANY:

Balaji Enterprises is section provides background info on the dimensions, geographic

distribution, employment, production, sales, and status of the motor vehicle
instrumentation business. Product quality of power and distribution transformers
established within the year of 2006. The take this chance to ourselves as a unit concerned
in producing of distribution transformers, electrical device tank fabrication up to a
capability of 252 KVA, 11 /0.433 potential unit category is that the power transformers
pcs. The corporate power transformers is that the extremely qualified of engineers and
technicians within the company. “Action speaks louder than words”

3.7 ORGANISATION STRUCTURE:

The structure structure may be a vital task of prime management of organization. It’s the
skeleton of the entire structure arrangement and their relationship. It prescribes the way
however a company arrangement associated their relationship however an organization
members communicate with alternative members. What roles is to be performed and what
rules and procedures exist to guide the varied activities performed by members with
business executive at the helm and a cupboard of twelve managers, the Organization
structure is meant to deliver World category producing practices, taking it throughout to
the complete men. The center management team at balaji enterprises power controls will
match the simplest within the trade.

18
 ORGANISATION STRUCTURE OF BALAJI ENTERPRISES

Boards of Director

CEO

GM Operation GM Quality

Production HR Sales Finance purchase quality manager

Assistant Assistant Executive Assistant Ececutive Executive

Manager manager managaer

No of Employees in Different Categories or Levels

Department No of Employee

Production 135
Marketing & Sales 20
Human Resources 10

19
3.8 TEAM:
The inventory management is that the vision while not action of the simply a dream. Vision is that
the quality analysts within the action is while not vision simply passes the time. The inventory is
date values of visions and action will amendment of the globe. The action of team collective efforts
of team has been business to varied want within the shoppers within the very best manner. The
team is vision of action of the inventory date within the team. The corporate industrious and metric
luaus efforts of the team established ourselves as reliable organization a brief span of your time

• Engineers
• Administrators
• Sales personnel
• Quality analysists

3.9 INFRASTRUCTURE FACILITY:

The progressive producing part is blowout higher than an enormous space of 15000 sq. feet with
associate put in capability of a thousand units in province, India. This assists America within the
quick producing of business Refractories with utmost preciseness. The perceive the necessities of
shoppers and work consequently to manufacture industrial refractory product as per the
international normal. A number of the machineries put in within the company production layout
or premises includes.

The ability management is undertake over truck age and repairs of all makes and capacities on
website and are also endeavor mobile filter machine 2400 ltr / hrs. Further, we tend to timely
upgrade the put in machines to enhance its practicality and productivity.

3.10 ADVANCED CERAMICS APPLICATIONS:

 Power management
 Electronic applications
 Mechanical building
 Break paddle
 Electrical mounting paddle

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3.11 REFRACTORIES INFORMATION:

The company producing within the power transformers controls is extremely technical of
workforces. Product producing is completely different levels of the regular coaching. The
facility transformers is nice producing and highest quality within the happy of client is that
the best advertisers for product.
The corporate up gradations of skills within the coaching of producing processes. The
instrumentality of automobile are cutting and banging. The electrical device is tested within
the section as per relevant IS, specifications.

 Continual improvement  Enhancing of client satisfaction

3.12 COMPANY DETAILS:

Incorporated name: Balaji Enterprises

Address: #1/3, Lakshmaiah industrial layout, Abbigere
Karnataka (state), India (country)
Bangalore-560090
Ph.: +91 9902018770
E-mail: www.balajienteprises.com
Website: www.balajienteprisescom
Year of establishment: 2000
Constitution: Partners
Management: proprietor
Plants: - At Bangalore

MANAGEMNT PROCESS:
 Chairmen – VARALAXMI/ RAVI KUMAR
 General Manger – HEMANTH
 HR – RAVI KUMAR
 LABOURS
 STAFFS

21
3.13 PRODUCT MANUFACTURED:

The organization is concerned in producing and provision. The operators at totally different levels
endure regular coaching. The undertake electrical device is tested within the testing section as per
relevant IS, specifications. Voltage vary – eleven / zero.433 KV

The fitting and accessories are mounted on the M.S tank fancied within the works. The core coil
assembly is fitted within the tank and tank is then stuffed with oil. The ultimate stage material of
all as been inspectional.

 Raw material
 Testing
 Packing

3.14 MANUFACTURE TOOLS:

22
The organization is concerned in giving comprehensive vary of part of manufacture tools within
the transformers that cater to the requirements of the equipment’s of automobile are cutting and
bending and alternative connected industries across the world. These are offered in numerous
industrial specifications relating to dimension, material grade and fitting ends. Our method of
transformers is obtainable at trade leading costs.

Some of its salient features are given below:

 Drilling
 Inspection
 Testing
 Bending
 Cutting
 Pressing

3.15 MANUFACTURE TYPE FURNACES:

The manufacture within the transformers connections of L.T & H.T coil are created and also the
assembly is place in a very hot chamber of drying impregnation with insulating compound is
dispensed and also the assembly is dried of fifty KV(RMS) as laid out in IS :355.ckecking in
additional winding coil and voltage vary check. The transformers is manufacture in tiny and high
level in testing in additional choice within the company.

 Bending
 Cutting

23
3.16 MANUFACTURE PROGRAM:

The organization is concerned in producing and provision. The H.T & LT coils are wound on the
coil winding machines and assembled on the core limbs out of Si steel sheet. Once the cutting and
bending is on pressing the fabric. The pressing the fabric is can trained and wielded.

Some features are as follows:

 Packing
 Assembly of lead
 Cutting
 Making of connection in the coil
 Testing
 Placing the assembly in tank

3.17 SWOT ANALYSIS:

STRENGTHS:

 Name from decades in electrical device of power control.

 Certified by ISO.
 Continuous development just in case of quality of management.

24
WEAKNESSES:

 Low communication between the departments.

 Company is not associate degree echo friendly thanks to exploitation some merchandise
that are harmful to the atmosphere.
 Company uses a lot of workforce than automation, as a result of automation consumes less
time to supply an element.

OPPORTUNTIES:

 They advantage from a double advantage-cost-effectiveness and improved machining

capability.
 They supply position and comes for college kids.
 They provide chance to their staff to specific their views or concepts.
 They encourage and support to their engineers to create a brand new machine.
 They provide job opportunities for physically challenged individuals.

THREATS:

 Competition.
 Amendment in technology.
 Fluctuation of cost, demand and provide.
 Amendment in client preference regards to product style supported necessities.

3.18 PROMOTERS:

 NEC LTD.
 Power system controls.
 CHETHAN Granites.
 S.K Power services.
 MOHAM projects PVT ltd.

25
4.1 Table shown inventory size:
The inventory position and share of growth of inventory over the previous
year for a whole firm.

Formula:
Growth of inventory = (Base year – Following year)/Following year*100

Year Total Inventory % of Growth Of Total

Inventory
2012 – 2013 3658954 0%
2013 – 2014 4152456 11.88 %
2014 – 2015 5012051 17.15 %
2015 – 2016 7548965 21.90 %
2016 – 2017 9972778 24.30 %

4.1 Graph showing the inventory size:

Inventory size
30

24.304
25
21.903

20
17.15

15
11.884

10

0
0
2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017

Column2 Inventory size Column1 Linear (Column1)

Inventory size

26
Analysis & Interpretation:

From the above table it is observed that the growth of inventory during 2013-14 is 11.88
% whereas the growth in the following years 2014-15, 2015-16 and 2016-17 are 17.15 %, 21.9 %
and 24.3% respectively. It is observed that level of inventory is growing every year which reflects
the increased demand for the products of the company.
4.2 Table shown current ratio:
The current quantitative relation could confirm the company’s financial
condition. This represents the connection among the each current liabilities and current assets.

Formula:

Current ratio = current asset/current liabilities

Year Current assets Current liabilities Current ratio

2012 – 2013 9562314 2256231 4.238
2013 – 2014 6589450 695625 9.472
2014 - 2015 48865265 42565489 1.148
2015 – 2016 8895647 2356840 3.774
2016 - 2017 8956842 1156258 7.746

4.2 Graph Showing Current ratio:

27
Analysis & Interpretation:

The above table shows a high current ratio during 2012-13, 2013-14 and 2016-
17. It is observed that the current ratio during 2014-15 is not meeting the standards. The
high current ratio shows good liquidity and ability to pay the current liabilities on time, but
it adversely effects the profitability of the company.

4.3 Table Shown Quick ratio:

It can also be referred to as assessment or liquid quantitative relation it include the money
and different assets of a company in similarity its current liabilities.

Formula:

Quick ratio = (current assets – inventory) / Current liability.

Year Current Assets - Current Liability Quick ratio

inventory
2012 – 2013 3054896 1026589 2.975
2013 – 2014 3047560 776652 3.923
2014 – 2015 5625621 2056256 2.735

2015 – 2016 5725124 2054625 2.786

2016 – 2017 5802102 1125654 5.154

Analysis:
The above table clearly shown the quick ratio for the year 2012 – 2013 was 2.975, during
the year 2013 – 2014 it was 3.923, and during the year of 2014 – 2015 the quick ratio is
2.735, and for the year of 2015 – 2016 quick ratio was 2.786, and during the 2016 – 2017
it was 5.154.

28
4.3 Table shown Quick Ratio:
Quick ratio
6
5.154
5

3.923
4

2.975
3 2.735 2.786

0
2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017

Quick ratio

Interpretation:
From the above graph, the quick ratio of the company during the
year 2012 – 2013 was 2.975, it increased to 3.923 during the year 2013 – 2014 but which
is not an ideal standard but again reduced to 2.735 during the year 2014 – 2015 which is
not at all satisfactory. But during the year 2015 – 2016 it is slightly increased to 2.786 and
again reduced to 5.154. This shows the company is maintaing the quick assets above the
standards which is good sign for liquidity, but it is keeping it funds idle which may reduce
profitability of firm.

29
4.4 Table shown to share of inventory to operating capital:
It refers to the whole capital, which can calculate as below.

Inventory may be a part of capital and it’s a forced impact on vale of capital. If
inventory are additional, capital required is additional and if inventory is low capital required is
low.

Working capital: Current Assets – Current Liabilities.

Formula:
Working capital = inventory / working capital.

Year Inventory Working capital Percentage

2012 – 2013 2021562 5658952 0.357

2013 – 2014 3112561 6120156 0.508

2014 – 2015 3520012 6956529 0.506

2015 – 2016 5465891 6998985 0.780

2016 – 2017 5802102 7156580 0.810

Analysis:
The above table shows that within year 2012 – 2013 the company had 0.357 inventory.
Assets within the year 2013 – 2014, the company had 0.508 inventory and within the year
2014 – 2015, the inventory in assets is 0.506. In the year of 2015 – 2016 it is 0.780 and
next year 2016 - 2017 the inventory in assets is 0.810.

30
4.4 Graph showing to percentage of working capital inventory:

Chart Title
0.9

0.8 0.81
0.78
0.7

0.6
0.56
0.5 0.508

0.4
0.357
0.3

0.2

0.1

0 0 0 0 0 0
2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017

percentage

Analysis&Interpretation:

From the above graph, it is increased from 0.357 to 0.508 during the years
2012-2014, where the capital is insufficient to meet the specified level of elements of capital
because of shortage in term loans and advances. In 2014 – 2015, it is slightly increased within the
level 0.506. The following year 2015 – 2016, the year values in company increased to 0.780.
Additionally, the money and debt instrument for the years impacting on the capital. During the
year 2016-2017, it is again increased to 0.810.

31
4.5 Table Shown Inventory Turnover:

Turnover ratio = Sales / Average inventory

Average inventory = Opening inventory + Closing inventory /2

Year Sales Average Inventory Turnover ratio

2012 – 2013 18021524 4521256 3.985

2013 – 2014 7845621 2652152.1 2.958

2014 – 2015 34526256 25202132 1.369

2015 – 2016 3562015 4856520 0.733

2016 – 2017 812011 6225860 0.130

Analysis:
From the above table, the stock turnover for the year 2012 – 2013 is 3.985, 2013-2014
is 2.958, 2014-2015 is 1.369, 2015-2016 is 0.733, 2016-2017 is 0.130.

32
 4.5 Graph Showing Inventory Turnover ratio:

40000000
34526256
35000000

30000000
25202132
25000000

20000000 18021524

15000000

10000000 7845621
6225860
4521256 4856520
2652152.1 3562015
5000000
3.985 2.958 1.369 0.733 812011
0.13
0
2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017

sales average turnover

Interpretation:
The above graph discloses the stock turnover throughout the year 2012 -
2013 was 3.985 and in the year 2013 - 2014 was 2.958. It was raised by 1.369 throughout the year
2013-2014 however it has met within the year 2014-2015 and 2015-2016 was 0.733 and 0.130
when compared to 2011-2012, 2012-2013. It shows the company unskillfulness in inventory
management for these 2 years. The reason could also be a lot of investment on inventory,
monotonous business, stock increase and growth of obsolete and slow moving merchandise.

33
4.6 Table Shown of Inventory to Current assets:

Formula:

Inventory/ Current assets = % of inventory to current assets.

Year Inventory Current assets Percentage

2012 – 2013 2021562 8659478 0.233

2013 – 2014 3112561 5894875 0.528

2014 – 2015 3520012 28758951 0.122

2015 – 2016 5465891 7895846 0.692

2016 – 2017 5802102 8102456 0.716

Analysis & Interpretation:

From the above table, it is clearly shown that inventory to current
assets ratio for the following years 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 were
0.233, 0.528, 0.122, 0.692 and 0.716. For the years 2012-13 and 2014-15 the percentage
was low when compared to other years whereas the inventory meets 50% of the current
assets. Though it increases the quantity of current assets it may adversely effect the
liquidity position of the company and may need more working capital and may not possible
to meet current obligations.

34
4.6 Graph showing Inventory to Current Assets:

Sales2

0.233

0.716

0.528

0.122

0.66

2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017

4.7 Table shown of percentage of current assets over assets:

The current plus over total assets is that the
economical quantitative relation that measures the organization ability to manufacture sales from
its assets compares income and average total assets. In different words, it shows however the
corporate is utilizing its assets and resources to manufacture available purpose.

35
Formula:
Percentage = Current assets / Total assets

Year Current assets Total assets Percentage of

current assets
2012 – 2013 5895867 6589554 0.894

2013 – 2014 28895689 31254870 0.924

2014 – 2015 2998568 3114507 0.962

2015 – 2016 7854857 8785485 0.894

2016 – 2017 8012871 9972778 0.803

4.7 Graph showing Percentage of current Assets to Total Asset:

% current assets
1
0.962
0.95
0.924

0.894 0.894
0.9

0.85

0.803
0.8

0.75

0.7
2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017

36
Analysis & Interpretation:
The above table clearly states that in the year 2012 – 2013 the turnover was 0.894. It
has slightly increased to 0.924 in year 2013 – 2014, but again raised in the year 2014 – 2015 is
0.962. Later it has decreased for the next following years to 0.894 and 0.803. The graph represents
that the company does not have constant growth.

4.8 Table Showing on Percentage of Current Liabilities over Total

Liabilities:

The current to mixture obligation proportion measures the speed of mixture current risk to mixture
liabilities, a valuable estimation whereas evaluating an organization's obligation structure. A
growth during this proportion could be a negative sign, demonstrating organization's
recommendations of mixture current liabilities are increasing contrasted with its liabilities.
Formula:

Percentage = Current liability / Total liability.

Year Current liability Total liability Percentage of current

liability to total
liability
2012 – 2013 203689 10652682 0.019

2013 – 2014 775695 6984250 0.111

2014 – 2015 21458720 39252459 0.546

2015 – 2016 2185420 10665238 0.204

2016 – 2017 1125654 9972778 0.112

37
4.8 Graph showing Percentage of Current Liability over Total Liability:

% of current liability to total liability

0.6
0.546

0.5

0.4

0.3
0.204
0.2
0.111 0.112
0.1
0.019
0
2012 - 2013 2013 - 2014 2014 - 2015 2015 - 2016 2016 - 2017

% of current liability to total liability

Analysis & Interpretation:

Percentages of current liabilities in the above table were 0.019, 0.111, 0.546, 0.204 and
0.112. From the above graph it is clearly shown that the current liability over total liability was
high during the following year 2014 – 2015 and very low during the year 2012–13. But when
compared, the years 2012 – 2013 and 2013-14 have low ratio of current liabilities which is said to
be good for the company. Moreover, it needs to maintain constant increase on current liability over
total liability.

38
4.8 ABC ANALYSYS:
For the aim of internal control, the first rudiment analysis is used.
supported the consumption and price concerned in varied things is divided into three
categories‟ is giant consumption and also the usage are going to be additional is
comparatively little consumption and B Comes in between A and B.A needs rigorous
management deserves but A however over C.

A – CATEGORY
 WINDING OIL
 HT & LT COIL
 CORE UINT
 ASSEMBLY OF CORE
 PACKING
 PLACING OF THE TANK
 TESTING
 MAKING CONNECTION IN OIL
 ASSEMBLY OF HEAD

B – CATEGORY

 VOLTAGE
 SSVT
 MBT
 MWASUREMENT OF WINDING RESISTTANCE
 BDV
 AIR PRESSURE TEST
 VECTOR GROUP
 VOLTAGE

39
C – CATEGORY
 DRILING
 BENDINING
 CUTTING
 WIELDING
 IMPULSE TEST  INSPECTION

CATEGORY ITEMS IN CLASSES PERCENTAGE

A 9 37.5

B 8 33.32

C 7 29.16

TOTAL 24 100

Analysis:
The above table tells that the A category products are more important
and has more consumption level which comes between 60% to 70 % consumption of
material. Moreover, B category is the middle importance that represents 20% to 30%
consumption of material and remaining things are C category, which represents 10% to
15% percentage.

40
 4.8 Graph showing ABC analysis:

Column1

19 %

CATEGORY
A
50 %
17 % B
C

14 %

Interpretation:
The on top of graph is maintaining sensible dominant system in inventories
level within the company by mistreatment sensible techniques and higher class system it helps to
company for higher management in financial gain level. The corporate class is additional product

within the makers in sensible techniques within the method.

41
5.1 FINDINGS:

 From the analysis it is observed that the level of inventory is constantly growing every
year.
 It is also observed that the level of inventory is effective working capital requirement
during 2013 – 2014 and 2014 – 2015 half of the working capital is used for investment in
inventory, whereas between 2015 – 2016 it has contributed 75% of working capital.
 The stock turnover ratio during 2014 – 2015 and 2015 – 2016 is low due to obsolescence
and slow moving merchandise.
 Based on consumption, price and process, inventory has been classified into 3 categories,
Under category- A 9 items are there, which are contributing 37.5% of total inventory are
subject to high control, 33.2 % and 29.16 % of inventory falls under categories B and C
are attracting medium and low control respectively.
 The current ratio during 2013 – 2014 and 2016 – 2017 is very high indicates good liquidity
but may have adverse effective on profitability.
 The quick ratio is also high during 2013 – 2014 and 2016 – 2017 indicating that the
company is maintain fuse current asset. And the proposition of inventory is high during
these years. It represented that fuse amount of Investment is blocked in form of inventory.

5.2 SUGGESTIONS:

 Investment in inventory should be reduced to improve profitability.

 The company should reduced level of inventory to reduce the holding cost.

 The organization can adopt Just – In – Time strategic in case of certain materials to save
holding cost and obsolescence.
 The company is maintaining more current asset than required. Hence it is avoid investing
excess funds in marketable securities.
 The company should relook in to its marketing strategies to improve their sales to avoid to
decrease the level of slow moving merchandise.

42
5.3 CONCLUSION:
The BALAJI ENTEPRISES has an intensive form of merchandise and services since from
the year type together with higher quality policy. By seeing organization transformers are
vital links of the chin of power of transformers distribution systems and client awards that's
given to organization shows the higher performance in performance in its service. The
makes positive that the corporate property developments and higher future growth by
achieving client satisfaction, wants and needs. The use of latest technology economical and
consummate workers can helps to urge a more robust productions and sales.
Inventories are a primary component to any business operation which to producing
business. A listing refers to storage of stock, handling and circulated in line with requisition
sent by necessary department.

Balaji enterprises this section provides background info on

the scale, geographic distribution, employment, production, sales, and condition of the
automobile instrumentality business. The facility transformers factory-made within the
engineering’s. Additionally, one of the India’s leading exactitude engineering corporations
provides crucial motorcar elements to the auto manufacturer’s equipment’s. The corporate
is maintaining it’s customary by keeping its recent client and increasing with new client by
giving quality merchandise and services that's each once sales and before sales. In features
a sensible relationship among its provider and sensible maintenance system. The corporate
developing from day by day which might be seen in increasing of plants and exports in
power controls.

43
BIBLIOGRAPHY:

Referred following text and websites:

Financial Management - Prasanna Chandra

Management Accounting and control - S.N Maheswari

https://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-
terms/15282-inventory-management.html

https://investinganswers.com/finanical-dictionary/finanical-statement -
analysis/inventory-management-5999

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