Final Project - 19w51e0025

Inventory Management
CHAPTER - I
INTRODUCTION
Inventory comprises stock of raw materials, work-in-process, finished products, stores

and components. “JOHN HAMPTON” – treats inventory as “locked up capital”. Inventory
measured by rupee value constitutes, the major element in the “Working capital”
(approximately 60% of current assets) of many business undertaking in INDIA.
Inventory management means safeguarding the company’s property in the form of
inventories and maintaining it at the optimum level for each item inventory. The reduction in
an “an optimum level negatively affects the company’s profitability. Hence, inventory
management should be comprehensive enough to cover the flow of materials starting from
the point when someone makes a request for the purchase, up to the stage when the finished
products are sold.
Efficient inventory management reduces levels of inventories to considerable degree
without effect on production and sales by using simple inventory planning and control
techniques .An understanding neglecting the management of inventories will be jeopardizing
its long run profitability and survival.
DEFINITION
“John J. Hampton” defined inventory as “The goods for eventual sale by the firm”.
Inventory, measured by rupee value constitute the major element in the working capital of
many business undertakings. Inventory is the value of raw materials, consumables, and
spares, work-in-process, finished goods and scraps are called as locked up capital. The major
determinants of investment in inventory are:
1. Level of sales
2. Length and technical nature of the production process.
3. Durability vs. perishability or styling obsolescence of the product.
Inventory involves two types of costs. The first is “DIRECT COSTS”, which is
connected to buying and holding of goods and the second is “INDIRECT COSTS” or
“FINANCIAL COSTS”. The direct costs includes firstly ordering costs. These costs include
cost of placing order, shipping, handling and quality discount etc.., if the firm places few
orders frequently, the ordering cost will be higher. Secondly, carrying cost are the costs
SVTM/MBA/2021 Page 1
which are incurred for storing the goods. These costs include the space insurance,
obsolescence, spoilage and damages or thefts. The indirect costs include interest paid on the
capital tied up in the inventory and the inadequacy of materials involves the cost.
MEANING
Inventory comprises stock of raw materials, work in process, finished goods, stores
and components. The aim of inventory control is to achieve maximum efficiency in the
management of inventory. ”INVENTORY CONTROL” may be defined as “safe-guarding
of the company’s property in the form of inventory and maintaining it at the optimum level,
considering the operating requirements and financial resources of the business“. The
definition embraces control over purchases, storage and consumption of materials and
determining the optimum level for each item of inventory. The system of control should be
comprehensive enough to cover the flow of materials starting from the point when someone
makes a request for the purchases up to stage when materials are consumed and their costs
complied and assembled in cost sheet.
OBJECTIVES
The following purpose should be kept in mind in developing and maintaining
a system of control.
 Effective use of financial resources available to business i.e. to maintain the investment in
inventory at the lowest level consistent with operating requirements.
 Avoidance of the “out-of-stock” danger i.e.., to provide a supply of required materials
without any delay for efficient and uninterrupted operations.
 Reduction to a minimum of the risk through obsolescence.
 Economy in purchasing as affected by quantity buying and favorable raw material market.
 Storage of inventory with a minimum of handling time and cost and to protect them from
losses by theft, fire and damage.
 Service to customers i.e.., maintaining sufficient stock of finished products to meet
reasonable expectations of customers for prompt delivery of their order.
1.1 INDUSTRY PROFILE
A Battery is an Electro Chemical Device in which the energy of chemical

reaction is converted into the electrical energy contained in the active materials is converted
into electrical by means of electrical oxidation reduction reactions.
Inventory in wider sense, is defined as any idle resource of an enterprise. It is a

physical stock of goods kept for the purpose of future affairs. The term is generally used t
indicate raw materials in process, finished products, packing, spares and others – stocked in
order to meet expected demand or distribution in the future. Though inventory of material is
idle resource it is not meant for immediate use – it is almost essential to maintain some
inventories for smooth functioning of an enterprise.
For example, let us consider an enterprise that has no inventory of material at all.
When this enterprise receives a sales order, it will have to order out the raw material required
to complete the order, wait till these arrive and then start production .This would keep the
customers invariably to wait too long for the delivery of the goods ordered. Among other
disadvantage of not maintaining the inventories, the enterprises may have to purchase the raw
material at very high prices because of piece-meal buying the production cost may also be
high because of not being able to take advantage of batching; the load on manufacturing
shops would vary from period depending upon the orders on hand the company may not be
able to provide adequate customer service in the matter of completion, waiting and price.
Introduction to battery manufacturing process
The manufacturing process involved in production of maintenance free valve

regulated lead acid storage batteries is explained below.
a. Grid Casting
b. Plate Production
c. Pasting
d. Assembling
e. Formation
f. Dispatch
a. Grid Casting
Positive and negative grids required for batteries are made from different alloys .Besides
providing the necessary support to hold the active material together, the grids serve as a
conductor of current required for the electro chemical reaction that takes place at the active
material /electrolyte interface in the battery.
Grid are obtained by pouring molten led alloy in to special water cooled grid
mound’s .Casting is done on sophisticated automatic casting machines which control the
parameters within narrow tolerance to produce consistently good quality grids.
b. Plate Production
The lead oxide produced by the Barton process is mixed with water, sulphuric acid and
special additives like synthetic flock and expanders. The paste
Mixing is done in a tub mixture. Dry lead oxide along with the additives is added to the tub.
Distilled water is first dispensed into the tub when it is in rotation .After a fixed quality of
water addition, sulphuric acid is slowly dispensed into the tub at a slower rate to avoid
temperature raise in the mixer.
c. Assembling
The process of assembly is different for power plus and power stack. Plates are first stacked
into groups with the negative and positive plates alternating with the glass absorbent
separator interspersed between the plates. These separators are wrapped around individual
plates.
d. Formation
The assembled batteries are filled with a specified grades and quality of sulphuric acid left on
stand to enabled the separators to soak. Then electricity is passed through the grids for
formation. During the formation, the active material on the positive plate is converted into
lead oxide and is converted into spongy lead on the negative plate. Time of formation and
charging current depends on the size and number of the plates.
e. Dispatch
After completing the battery manufacturing, packed and labeled to that battery and transport
to the various places.
f. Pasting
Among all stages, we are mainly concentrating on the PASTING of the plates. In pasting
process we have some stages:
PASTING PROCESS
CURING
DRYING
DRY CYCLING
The main aim of this process is to improve the life, performance and storage capacity
of the battery .We achieve this by doing the process of curing and drying of the plates at
some constant temperature.
Curing Process:
TEMPERATURE 46°C
HUMIDITY 100%
DURATION 16hrs
Intermediate Drying Process:
TEMPERATURE 49°C
HUMIDITY 50%
DURATION 8hrs
Dry Cycling:
This is the final process where we maintain 0%Humidity and 80°C temperature to eliminate
the moisture.
 How Battery Works:
When your place a battery in your car’s ignition and turn the ignition switch “ON” a
signal sent to the battery. Upon receiving the signal, the battery takes energy that it has been
strong in chemicals form and releases it as electricity power is used in crank the engine. The
batteries also release energy to power the car’s light and other accessories. It is the only
device, which can store electrical energy in the form of chemical energy, and science it is
called as a storage battery.
 Sealed Maintenance Free (SMF)Battery:
Sealed Maintenance Free (SMF) batteries technology is leading the battery industry
in the recent years in automobile industry and battery sector around the globe.
SMF batteries come under the rechargeable battery category so it can be used a
number of times the life of the battery.SMF batteries are more compact then the wet type
batteries. It can be at any position, these batteries are very popular for portable power
requirements and space constraints applications.
The replacement market, on the other hand, is much longer. The replacement market is
characterized by the presence of larger unorganized sector, which constitutes around 55-60%
of total replacement market. This is possible due to low capital entry barrier. These players
have advantage of inapplicality of exercise duties and sales tax.
 Industrial batteries:
Industrial batteries can be basically classified into main categories:
1. Automotive Batteries
2. Stationary Batteries
The automotive batteries are used in electric vehicles and forklifts. The
stationary batteries used in Telecom, Railway and power industries have registered a growth
in excess of 20% and this trend in likely to be continuing in the next 5years.
The industrial segment is highly technology is an important factor land is vital

for brand refrence.The total demand for the industrial battery segment is met by indigenous
production with a small saves of about 10%of by imports. The demand for industries has
grown slowly steadily
 Recycling of Batteries:
Battery acid is recycled neutralizing it into water of converting it to sodium soleplate for
laundry manufacturing. Cleaning the batteries cases, melting the plastic and reforming it into
pellets recycle plastic. Lead, which makes up 50%of every battery, is melted, poured into
slabs and purified.
Prospectus of SMF/VRAL Batteries in India:
The following factors are influencing demand of VRLA Technology batteries:
 Entry of multinationals in telecom industry.
 DOT’S policy decision to upgrade the overall technology base.
 Constraints in the use of conventional battery in radio paging and cellular segments.
Telecom:
The government policy to increase the capacity from 10millions lines by 2006 increased the
demand for storage batteries considerably. The value added services like radio paging and
cellular will increase the demand for storage batteries in future considerably.
Railway:
In railways the establishment demand is based on the annual post production which comes to
2500 numbers by railways itself and 1000 numbers more by various other segments, plus
replacements demand and annual requirements for railways electrification.
Power Sector:
In power sector the estimated 90 private projects which are expected to produce 40000 MV
with approximate capital outlay of Rs .1, 40,000 cores would keep the industry figured
brighter in the coming years. The demand for VARLA batteries is increased due to its
performance over the conventional batteries. So it is more acceptable to the consumers.
Value Regulator Lead Acid Batteries:
In the recent years in automobiles industry and battery sector around the globe VRLA
batteries have become the preferred choice in various applications such as uninterrupted
power supply, emergency lights, security systems and weighting scales.
VRLA batteries are leak-proof, explosion resistant and having life duration of 15-
20 years. These with stand environment conditions due to high technology, in built in the
batteries. Each cell is housed in power coated steel tray making them convenient to transport
and installation. So transits damages are minimized in case of these batteries.
LEAD OXIDE
MANUFACTURING PREPARATION
OF BASIC ACTIVE
MATERIAL
GRID CASTING PASTE MIXING
(POSITIVE&NEGATIVE) (POSITIVE&NEGATIVE)
PREPARATION PREPARATION
OF CURRENT OF ACTIVE
COLLECTORS PASTING MATERIAL
FORMATION
(POSITIVE&NEGATIVE)
PREPARATION OF
CURING &DRYING
(POSITIVE & NEGATIVE)
STRAP/
SEPARATOR ASSEMBLY
G BUSBAR (COS)
GROUPING A CELL WITH

POSITIVE, NEGATIVE
PLATES AND SEPARATOR
FORMING A
CELL/BATTERY WITH
DC INPUT (STORING ACID FILLING AND
THE ELECTRICAL
ENERGY) FORMATION
FINISHING CLEANING
LABELING &
DISPATCH
GENERAL MANUFACTURING PROCESS OF A BATTERY IN ARBL
1.2 COMPANY PROFILE
Amara Raja Batteries Ltd Amara Raja Group of companies is now a 600 million dollar
Company with many group of companies.
Amara Raja Batteries Ltd incorporated under the companies Act 1956 in 13 th
February 1985, and converted into public limited company on 6 th September 1990 by
Mr.Rama Chandra N. Galla. The Group of Company has provided the direct employment for
over 3000 people. Now strength of employees increased to 15,216 peoples. Amara Raja
group of companies has been involved in several social projects, which are responsible for
social upliftments. Mr. Ramanchandra N. Galla did his graduation in tirupati.After
completing his graduation he finished his post-graduation and left for the states for higher
studies. Prior to his tenure, for 14years, Ramachandra N. Galla worked in various capacities
such as Sr.Electrical Engineer, Electrical Project Engineer,and Sr. Electrical Project Engineer
for sergeant & Lundy, Chicago USA. He was involved Nuclear power Projects.
Amara Raja is having a technology Joint Venture with Johnson Controls INC (JCI),
USA in the year 1991 who owns 26% stake in the company.JCI is a Leading battery
manufacturing in USA. Johnson Controls is a Fortune 500 company and also the largest
manufacture of lead acid batteries in North America and a leading global supplier to major
automobile manufacturing and industrial customers.
Amara Raja has demonstrated its commitment to offer optimum system solution of
the highest quality and has become the largest supplier of standby power systems to core
India utilities such as the Indian Railways, Department Telecommunications, Electricity and
major power generation’s companies.
About Johnson Controls
Johnson Controls Inc. ranking 136th among the fortune 500 companies in the world a
largest battery manufacturing in North America and second largest in the world. Forbes
magazine praised it as “America’s Best Technology Users”. It had won the General Motors
“Supplied of the year” award as well as the “Manufacturing Excellence” award by National
Association of Manufacturers. Being a leader in Auto Battery Makers it becomes the OME
(Original Equipment Manufacturer) Supplier to Daimler Chrysler, Ford, Honda, Nissan and
Toyota. Itsaftermarket includes Auto Zone, Interstate Battery, sears and Wall-Mart.
Amara Raja has demonstrated its commitment to offer optimum system solutions of
the highest quality its and has become the largest supplier of standby power systems to core
Indian utilities such as the Indian Railways, Department of Telecommunications, Extensive

plans have been charted out for the future, wherein the company undertaken to become the
most preferred supplier for power back-up systems.
Amara Raja has offered time tested world-class technology and processes development
on International standards be it high integrity VRLA systems like Power Stack and Power
Plus of the recently launched high performance UPS battery KOMBAT & AMARON HI-
LIFE automotive batteries that are the products of the collaborative batteries efforts of
engineers at Johnson patrols Inc.ARBL comprises of two major divisions viz.,
I. Industrial Battery Division (IBD)
II. Automotive Battery Division(ABD)
I. Industrial Battery Division (IBD)
Amara Raja has become the benchmark in the manufacturing of industrial batteries India as
one of the largest and fastest growing markets for Industrial batteries in the world and Amara
Raja is leading in the font with a 60% market share for standby VRLA batteries.
It is also having the facility for producing plastic components required for Industrial
batteries.ARBL is the first company in India to manufacture VRLA batteries (SMF).The
company has set –up Rs. 1920 Lakhs plant in 150 acres in Karakambadi village ,
ReniguntaMandal. The project site is notified under ‘B’ category.
Customer Base:
 Telecom:
-Our Batteries power almost half of BSNL/MTNL exchanges.
- 70% of the Private Basic Service providers exchange (Siemens).
- More than 70% of the Cellular services providers exchange (Nokia,
Ericson).
Telecom customers include:

 All ITI (Indian Technology Institutions) plants for In- house and switch requirements.
 BSNL/MTNL
 All NT Switch OEMs viz., Lucent,Alcatel,Simens,Nokia,Ericsson etc.,
 All C-DOT switch OEMs viz.,BEL,BHEL,CGL,UTI,etc.,

 All private Basic and Cellular service providers and all Network Integrators.
 Power Control
We provide Back-Up critical installations in Power generating Units and provide back-up
power transmission and distribution sub-stations like:
 RaichurTherminal Power station

 North Chennai Thermal Power Corporation Ltd (NHPC(National Hydro Power
Corporation)and Power Grid Corporation
 Oil &Gas
ARBL provides integrated solutions for renewable energy back-up power for ONGC’s
offshore platform. The island of Lakshadweep is powered through Amara raja Power
Systems. Also provide back-up power for power transmitters for Doordarshan.
 Motive Power
ARBL is the country’s first manufacture of maintenance-free traction batteries used

in Forklifts and Pallet trucks.
 Our Customers:
APC(American Power Control),Siemens (All type of power Supply Products)

Eg:SwitchBoards,Alstom (Power Projects)Eg:Metro Line Delhi, Compton Greaves etc.
(Power Products) .
 Defense
ARBL introduced new technology for back-up power in defense, Police and Paramilitary
communications systems.
 UPS & EPABX:
ARBL is the preferred suppliers for all leading UPS back- up manufactures like APC,
Numeric (India), DB Power, APLab, and Electronics & Controls etc. Our UPS batteries are
the fastest growing battery brand since its launch in July 2002 with a nation-wide footprint of
Sales and Service points and over 300,000 batteries in use at over 10,000 customer sites.
 Railways
ARBL pioneered the use of maintenance- free batteries in the Indian Railways. Over
50% of Indian Railways’ II and III Tire self- generation Air- conditioned
Coaches are powered by ARBL. Over 40% of Railway’s Signaling and Telecom power
supply solution are provided by ARBL.
 Competitors
The major competitors for Amara Raja Batteries products are Exide Industries Ltd.,
Hyderabad Batteries Ltd., and GNB.
II. AUTOMOTIVE BATTERY DIVISION (ABD)
ARBL has inaugurated its automotive plant at Karakambadi in Tirupati on September

24th 2001 this plant is a part of the most completely integrated battery manufacturing facility
in India with all critical components, including plastic sourced in house from existing
facilities in site. In this project Amara Raja strategic alliance partners Johnson controls, USA
have closely worked with their Indian components required for automotive batteries.
 CAPACITY:
With an existing production capacity of one Lakhs units of automotive batteries the new
Greenfield plant will now be able to produce 3.5 million Batteries per annum.This is the first
phase in the enhancement of Amara Raja production which the company has invested Rs.75
crores.In the next phase at an additional cost Rs.25 Cores .Production capacity will increase
to 5million units estimated to complete around 1year .After that ARBL will become the
single largest facility for battery manufacture in Asia.
 PRODUCTS: Some of the products of ABD are
 Amaron Highlife
 Amaron Harvest
 Amaron Shield
 Amaron Hi-way
 Customers:
ARBL has prestigious OME (Original Equipment Manufacturer) clients like FORD
general motors, Daewoo motors, Mercedes Benz Daimler CHRYSLER, MarutiUdyog
premier Auto Ltd., and recently acquired a preferential supplier alliance with Ashok Leyland,
Hindustan motors. Telco, Mahindra & Mahindra and Swaraz Mazda, Hyundai.
 Competitors:
 Exide Industries Ltd

 Hyderabad Batteries Ltd, and
 Other Small Battery Manufactures.
AMARA RAJA GROUP OF COMPANIES
1. Amara Raja Batteries Limited (ARBL), Karambadi, Tirupati.

2. Amara Raja Power Systems Pvt. Ltd. (ARPSL), Karakambadi, Tirupati.
3. Mangal Precision Products Pvt.Ltd. Karakambadi, Tirupati&Petamitta.
4. Amara Raja Electronics Pvt.Ltd. (AREPL), Dighavamagham, Chittoor Dist.
5. Galla Foods Pvt.Ltd, Dighavamagham, Chittoor Dist.
6. Amara Raja Infra Pvt.Ltd, Tirupati.
7. Amara Raja Industrial Service Pvt.Ltd, Tirupati.
Mile Stones of Amara Raja Batteries Ltd:
1985 DEC – Foundation stone laid for Amara Raja.

1992 MAY – Designed & implemented the most advanced battery manufacturing facility
In India.
1997 FEB - Received the ISO 9001 certification.
1997 DEC- Joint venture with Johnson Controls.
1997 DEC – Commissioned own plastic & tool room sections.

1999 May – Received QS 9000 certification.
2000 JAN – Launched Amaron automotive batteries.
2001 APRIL – Awarded the ISO 14001 certification New Corporate Logo launched.
2002 MAY – Commissioned phase 1 of new automotive battery plant, with capacity of
2million
2002 JULY – Launched Quanta UPS batteries
2002 AUG – Launched AmaronHI way and Harvest batteries.
2004 MAR – Received Ford World Excellence Award
2004 SEPT – Launched Amaron PRO, GO and FRIESH automotive batteries
2004 OCT – OE agreement with MarutiUdyog Ltd.
2005 JUN – OE agreement with Hyundai motors.
 ARBL’s Future Plans
 Maximizing the exports

 Emerge as global player
 Constant up gradation of products
 Stream of new models
 Constant stress on improving productivity.
 Awards for Amara Raja Batteries Ltd
 Automotive Product of the year 2000 by Overdrive

 Excellence in Environment Management in 2002 by AP Pollution Control Board
 Creative Advertiser of the year;02 by ABBY
 Ford “World Excellence Award “
 Ford Q1 Award
 ISO – 9001 in 1997… RWTUV
 QS 9000 in 1999….. RWTUV
 ISO/TS 16949 in 2004…. RTUV
 Quality benchmarks.
 Best Business Practices as per JCI
 ISO 14001 in2002…. RWTUV

 Part of the world’s largest battery manufacturing alliance- Johnson Controls Inc., USA.
 Largest manufacture of standard VRLA batteries in South Asia
 Pioneered the widely used VRLA batteries for industrial application in India
Amara Raja Batteries Ltd.’s Strengths:
 Proven technology from GNB and Johnson Control Inc being a pioneer.
 Strong and well organized customer base.
 Full-organized infrastructure in place.
 Manufacturing facilities perceived as a benchmark in India.
 Complete range of VRLA batteries.
MISSION AND VISION
 MISSION
Mission, mantra, way of thinking, philosophy, what we live for … call it what you
want, you’ll find it below. Introduce yourself to the way we think.
“To transform our spheres of influence and to improve the quality of life by building
institution that provide better access to better opportunities, good and services to more
people.. All the time”.
 VISION-2025
Through the Amara Raja way and though ensuring progressive partnership we will be a
global leader in batteries and battery technologies and dominant player in Indian Ocean rim.
PRODUCT PROFILE OF ARBL
S.NO Product Name Features Application
1. Amaron Harvest High performance, totally high For Tractors.

power charge acceptance.
2. Amaron Shield Ready to fit, long life, low For Inverters.

maintenance, higher cranking
power
3. Amaron Hi-Life Long life, maintenance free, Cars, utility vehicles,

batteries fully scaled and tested no tractors, 3 wheelers,
leakage/improved safety. HCV’s, gensets &
LCV’s.
4. Kombat High discharge, high UPS, EPBS, engine

performance batteries, which starting emergency
are compact, lightweight lighting, SPB, portable
factory charged, explosion, power, fine alarm
resistant & environment security systems.
friendly.
5. Amara Raja (Power Light weight, sturdy weather Industrial applications,

Stack) Industrial proof & long lasting, high power plants, railways,
integrity, high energy density. telecommunications,
defense,motive power,
solarphotovoltaic,
electricvehicles,
emergency lighting.
6. Amara Raja Genpro Zero maintenance, no specific For Generators.

gravity cheeks, no water
tapping up required, long life,
ideal size factory charged,
therefore ready to use, assured
starting and service.
7. Amaron Hi-Way Long life, ultra low For trucks.

batteries maintenance, ready to fit,
higher cranking power,
8. Quanta UPS batteries

(uninterrupted life)
9. Brute (The motive Factory vehicles like

power house) fork lifts, pallet trucks.
CHAPTER - II
REVIEW OF LITERARURE
Inventories constitute the major element in the working capital of many business enterprises.
Inventories constitute the most significant part of current assets of large majority of
companies in India.
2.1 Definition of Inventory
- “As the aggregate of those items of tangible personal property which are
held for sale I the ordinary course of business, process of production for sales controls
currently consumed in the production of goods or services to be available for sale” .
“The American Institute of Accountants.”
The amount of investment is sometimes more in inventory than in other assets. About 90%
part of working capital invested in inventories.
A proper planning of purchasing, handling, storing and accounting should form a part
of inventory management .An efficient system of inventory management will determine,
 What to purchase
 How much to purchase
 From where to purchase
 Where to store
Components of Inventory:
Components of Inventory
Raw Raw
Materials
Mate Work in progress Finished products Stores and spares
Raw materials are those that are converted into finished goods through a manufacturing or
conversion process. These form a major input for manufacturing a product.
Work-in- progress:
Work in progress is a stage of stocks between raw materials and finished goods. Work in
progress inventories are semi-finished products. They represent products that need to undergo
some other process to become finished goods.
Finished Products:
Finished products are those products, which are completely manufacture and ready for
sale .The stock of finished goods provides a buffer between production and market.
Stores and Spares:

Stores and spares inventory are purchased and stored for the purpose of maintainence
of machinery.
Need to Hold Inventors

They are three general motives for holding inventories.
Transaction motive:
Transaction motive includes production of goods and sale of goods. Transaction
motives facilities uninterrupted production and delivery of order at a given time.
Precautionary motive :
This motive necessitates the holding of inventories for unexpected changes in
demand and supply factors.
Speculations motive:
This compels to hold some inventories to take the advantage of changes in prices and
getting quality discounts.
2.2 Importance Of Inventory Management

o Inventory in smooth and efficient running of business.
o Inventory provides service to the customers immediately.
o Due to absence of stock, the Manufacturing of inventory may earn price discount
because of bulk purchasing.
o Inventory also acts as buffer stock when raw materials are received late and so many sales
orders are likely to be rejected.
o Inventory also reduces products costs because there is an additional advantage of batching
and long smooth running production runs.
2.3 Types of Inventory

o Movement inventories
o Buffer inventories
o Anticipation inventories
o Decoupling inventories
o Cyclic inventories
Movement Inventories
Movement inventories are also called transit (or) pipeline inventories. Their existence owes
to the facts that transportation time is involved n transferring substantial amount can’t
provide any services to the customers for power generation.
Buffer Inventories
Buffer inventories are held to protect against the uncertainties of demand and supply. An
organization generally knows the average demand for various items that it needs. The actual
demand may not exactly match the average and could hell exceed it. To meet with this kind
of situation inventories may be held in excess of the average for expected demand .Similarly
the average delivery time may be known. But unpredictable events could cause the actual
delivery time to be majored the average. This excess stock might be kept in order to meet
demand during the time for which the delivery is delayed. These inventories which are in
excess of those necessary just to meet the average demand, held for protecting against the
fluctuations in demand and lead-time are known as “safety stocks”.
 Anticipation Inventories
Anticipation inventories are held for the reason that a future demand for the
product is anticipated.ProductionofspecializedcrackerswellbeforeDaily,Umbrellas and
raincoats before rains, fans while summers are approaching.
 Decoupling Inventories
The Decoupling inventory is to be decoupled (or) disengage, different parts of the
production system. Different machines and people normally work at different rates some
slower and faster.
 Cycle Inventories
Cycle inventories are held for the reason that purchases are usually made in lots rather than for the
exact amounts which may be needed at a point of times. If purchase is made exactly as and when the
item is required, there would be no cycle inventories.
Meaning of Inventory Control:

Inventory control is a system, which ensures the provisions of the required quality of
inventories of required quality at the required time with minimum amount investment.
Purpose of Inventory Control:
 To improve customer services.
 Permits purchase and transaction economics.
 Transportation Economics.
 Hedge against price fluctuations.
Following four fundamentals factors govern for these questions:

 Requirement breaks down time wise.
 Quality in stock or on order.
 Procurement time or lead time.
 Obsolescence.
Stores (or Material) Records
The bin cards and the stores ledger are the two important stores records that are generally
kept for making a record of the various items of stores.
a) Bin Card:
A bin card makes a record of the receipt and issue of material and is kept for each item of
stores carried, Quality of stores received is entered in stores is taken after every receipt or
issue, so that the balance at any time can readily seen.
A bin card is also known a bin tag or stock card and is usually hung up or placed in
shelf, rack or bin where the raw material has been kept. Bin card can also be in the form of
loose sheets which can be maintained in a ledger kept in the stores.
b) Double Bin System:

Some concerns divide the bin, rack or shelf (where material has been kept) in two parts,
namely, the smaller parts to store the quality equal to quality and the other part to store the
remaining quantity.
c) Stores Ledger:
This ledger is kept in the costing department and is identical with the bin card issues
and balances are shown along with their money values. The different between a bin card and
the stores ledger as follows:
Bin Card Stores Ledger
 A record of qualities only  A record of both quantities and values.
 Maintained by the storekeeper.  Maintained by the Costing department.
 Normally posted by just before the

 Always posted after the transaction takes
transaction takes place. place.
 Each transaction is individually posted.  Transactions may be summarized.
Levels of Inventory:
Danger Level:
It is that below which stock not be allowed to except under emergency conditions.
When stock reaches this level urgent action for purchases is limited.
Danger level = Average consumption * Maximum re-order period for

emergency purchases
But some firms prefer to fix the danger level above the minimum level and below the re-order
level. However fixing danger level below the minimum level is meant for taking corrective
action whereas fixing it above the minimum level is for action.
The formula for computing maximum level is follows:
Maximumlevel=Re-order level +Re-order quantity – (Minimum Consumption*

Minimum re-order period)
Minimum Level:
The minimum level is that level of stock below it should be normally be allowed to fall .This
is essentially a safety stock and will not normally be allowed to fall .This is essentially a
safety stock and will not normally be touched. In case of any item falling below this level,
there is danger of stoppage in production and, therefore, management should give top priority
to the acquisition of supplies. This level is fixed after the consideration if the following
factors.
 Rate of consumption ,and
 The time required under top priority to acquire enough supplies to avoid a stoppage in
production.
Minimum Level = Re-order level – (Normal Consumption * Normal reorder

period)
Re-order Level:
This is that level of material at which a new order for material is to be placed .In
other words this is the level at which a purchase requisition is made out .This level will be
fixed somewhere between maximum and minimum levels .by re-ordering when stocks fall to
this level, then in the normal course of events new supplies will be received just before the
minimum level is reached. It is fixed after the consideration of the following factor.
 Rate of consumption.
 Minimum level.
 Delivery time.
 Variation in delivery time.
Re-order level = (Maximum Consumption *Maximum re-order quantity)
Average stock level:

First in First out (FIFO):
The material which are received first are issued and therefore there flow of cost of material
should also be in the same order .Issues are priced at the same basis until the first batch
received is used up which the price of the next batch received becomes the issue price. Upon
this batches fully used for pricing and so on .In Amara Raja Batteries they are First in First
Out method for issuing of raw material from stores to the production/manufacturing unit.
Last In First Out (LIFO):

The latest receipts of material are issued first for production and the earlier receipts are
issued last. It uses the price of the last batch received for all the issues until all units from this
batch have been issued after which the price of the pervious batch received becomes the issue
price .Usually however, a new delivery is received before the first batch in fully used, in
which case the new delivery price becomes the last in price and is used for pricing issues
until either the batch exhausted or a new delivery is received.
Highest In First Out (HIFO):

In this method, issues are always valued at the highest price of the receipt. This rate continues
either until the material at that high price is exhausted, after which the next highest price is
used a new batch of raw materials is received at a rate which is higher than the previous high
rate. Closing stock under this method airwaves remains at the minimum cost. This method
however has not been widely adopted.
Tools and Techniques/Controls of Inventory Management

Financial manager should aim at determination of optimum inventor level based on costs and
benefits to maximize shareholders wealth.
In managing inventories, the firm’s objective should be in consonance with the

shareholders wealth maximization principle. To achieve this, the firm should determine the
optimum level of inventory .Efficiently controlled inventories make the firm flexible. Some
of the techniques are as follows:
 ABC Analysis
 EOQ
 FSN
 Ratio Analysis
 ABC Analysis(Activity Based Control)

ABC Analysis is an important factor in controlling the inventory. It is very effective and
useful tool for classifying monitoring and control of inventories. The firm should not keep
same degree of control on all the items of inventory. It is based on paretols law; It is also
known as selective inventory control. The firm should put maximum controls on those items
whose value is the highest, with the comparison of the other two items .The technique
concentrates on important items and also known as control by important and exception
usually a firm has to maintain several types of inventories for proper control of they firm
should have to classify inventories in the instance of their relative value. Hence it is also
known as “proportional value analysis”.
Under ABC Analysis the materials are divided into three categories like A,B,C 10% of
the items contributes to 70% of value consumption this category is called “A” Category.
About 20% of the value of consumption this is known as category “B” materials “C” Covers
about 70% of items of materials which contribute only 10% of the value consumption.
A-B-C Analysis helps to concentrate more efforts on category “A”. An attention should
be paid in estimating requirements purchasing, maintaining safety stock and properly storing
of “A” category materials. These items are kept under a constant review so that a substantial
material cost may be controlled.
The control of “C” items may be relaxed and these stocks be purchased for the year. A
little more attention should be give towards “B” Category items and their purchase should be
undertaken at quarterly (or) half yearly.
Class No.of.Items Value of Items (X)

A 10 70
B 20 20
C 70 10
 Economic Order Quantity(EOQ)

EOQ is an important factor in controlling the inventory. It is a quantity of inventory which
can reasonably be ordered economically at a time .It is also known as “standard order
quantity”.
Ordering cost, and carrying costs are taken in to consideration ordering cost
are basically the cost of getting an item of inventory and it includes the cost of placing an
order carrying includes cost of storage facilities.
2.4 Meaning of EOQ:

Economic Order Quantity to that level of inventory at which the total cost of
inventory is minimum .The total inventory cost comprising ordering and carrying cost.
Storage costs are excluded in adding total cost of carrying due to the difficulty in
computation of shortage cost EOQ also known as economic lot size.
EOQ formula:
EOQ can be obtained by adopting two methods:
 Trial and error approach
 Simple mathematical formula.
The formula is
EOQ = √2AO/C
Where,
A = Annual usage
C = Carrying cost per unit
O = Ordering cost per unit
The above formula will not be sufficient to determine EOQ when more complex cost
equations are involved.
EOQ applicable both the single items and to any group of stock items with similar holding
and ordering costs. Its use causes the sum of the two costs to be lower than under any other
system of replenishment.
 FSN Analysis(Fast Slow Nonmoving)

Under this technique inventory is classified based on movement of inventories from
stoer.FSN stand for Fast Moving (F), Slow Moving(S), and Non-moving (N). This technique
particularly involved in inventory useful for avoiding obsolescence. Whether a particular
inventory is fast moving or not the date of receipt or last date of issue which is later, is taken,
which have lapsed since the last transaction.
The items are usually grouped in period of 12months.Active moving inventory
need to be reviewed regularly and surplus items. Which have to be examined further Non-
moving items may be examined further and their disposal can be considered.
 Ratio Analysis
The ration analysis is one of the most powerful tools of financial analysis. It is the process of
establishing and interpreting various ratios. It is with the held of ratio that the inventory
management can be analysed more clearly and decision made from such analysis. Following
ratio is used in the study.
1. Inventory Turnover Ratio:

-Raw material Turnover Ratio.
- Work-In –Progress.
-Finished Goods Turnover Ratio.
-Inventory Conversion Period.
2. Raw Material Holding Period.

3. Work – In – Progress Holding Period.
4. Finished Goods Holding Period.
5. Inventory Holding Period.
1. Inventory Turnover Ratio:
Inventory turnover ratio is a ratio that establishes the relationship between cost of sales and
average inventory. It indicates whether the investment in inventory is within proper limit or
not.
Sales (or) Cost of goods sold
Inventory Turnover Ratio = --------------------------------------------
Average inventory
Opening stock + Closing Stock

Average inventory = --------------------------------------------
2
a) Raw Material Turnover Ratio

Raw Material Consumed
Raw Material Turnover Ratio = -----------------------------------------
Average stock of raw material
b) Work In Progress Turnover Ratio
Cost of goods manufacture

Work In Progress Turnover Ratio = --------------------------------------------
Average stock of work in progress
c) Finished Goods Turnover Ratio

Cost of goods sold
Finished Goods Turnover Ratio = --------------------------------------------
Inventory Turnover Ratio
d) Inventory Conversion Period

Inventory conversion period may be interest to see time to taken for clearing the goods.
Days in a year
Inventory Conversion Period = ----------------------------------------
2. Raw Materials Holding Period
Days in a year
Raw Material Holding Period = ---------------------------------------------
Raw Material Turnover Ratio
3. Work-in-Progress Holding Period

Days in a year
Work-in-Progress-Holding Period = -----------------------------------------------
Work-In-Progress Turnover Ratio
4. Finished Goods Holding Period

Days in year
Finished Goods Holding Period = ---------------------------------------------
Finished Goods Turnover Ratio
5. Inventory Holding Period
Days in year
Inventory Holding Period = -----------------------------------------------------
CHAPTER - III
RESEARCH METHODOLOGY
The study was conducted to know the position of inventory management. In every enterprise
needs inventory for smooth running of its activities. It’s served as a like between production
and distribution process. There is a time lag between the recognition of need and fulfillment.
The greater the time lags the time lag, the higher the requirements.
The present study is based on secondary data.
 Primary Data
Primary data was collected from experts of finance department on their course of actions
towards collections.
 Secondary Data
The secondary data has been collected from annual reports, schedules, stores
ledger, budgets and purchase orders, magazines, journals.
3. 1 NEED OF THE STUDY
The choice of area of the study for the project work was given after initial study of
company’s operations and the system of working. Though the company has several
departments, the scrutinizing various financial aspects. I found inventories which consists an
integral part of working capital of Amara Raja batteries Ltd., needed better management.
The company did not follow and scientific inventory management system before 2004
and hence there arise a need to devise a system which could considerably reduce the cost and
thus constituting towards profitability. Every firm must maintain adequate inventory for its
smooth running of the business and to give the competition and want to use of customers and
business for that purpose maintenance of adequate inventory is must.
 To facilitate smooth production and sales operations.

 To face the risk of variation in demand and supply.
 To face the price changes in inventory and quantity discounts.
3.2 OBJECTIVES OF THE STUDY
 To study the methods of valuation of inventory.

 To know the existing system of the company.
 To suggest how much quantity should be ordered.
 To maintain minimum investment in material to maximize profitability.
 To study the investment in inventory to meet operations.
 To suggest suitable inventory technique to the company.
3.3 SCOPE OF THE STUDY
 An extensive study has been conducted to know different cost involved in inventory
management through economic order quantity, ABC analysis was conducted to categories the
raw materials based values and measure the significance of each item of inventories in terms
of its values.
 Ratio analysis was also conducted to analyse inventory management more clearly and
decision made from such analysis.
3.4 LIMITATIONS OF THE STUDY
 Much of the data is collected from secondary source and the analysis is made on 5 years data
only.
 The present study is based on two techniques only.
 Detailed analysis could not be carried for the project work because of limited time span.
CHAPTER - IV
DATA ANALYSIS
1. ABC ANALYSIS:
(a) ABC CLASSIFICATION ON THE YEAR (2015-16)
Class Value % of Cumulative %

value Items
A 16803152 54 54 102
B 8785515 29 83 151
C 5276050 17 100 327
total 30864717 100 580
350
300
250
200
150
100
50
0
A B C
INTERPRETATION:
In the year 2015-16 , there Are 102 items which constitutes their value of 54%, in the
total value which comes under “A”category.151 items which constitutes 29% in the total
value which comes under “B” category and 327 items which constitutes 17% in the total
value which comes under “C” category.
(b) ABC CLASSIFICATION ON YEAR (2016-17)
Items
Class Value % of value cumulative %
A 20370713 60 60 112
B 10185357 30 90 166
C 3395119 10 100 360
total 33951189 100 630
180
160
140
120
100
80
60
40
20
0
A B C
INTERPRETATION:
In the year 2016-17, there Are112ems which constitutes their value of 60%, in the
total value which comes under “A” category. 166 items whichConstitutes30%, in the total
value which comes under “B” category and360 items which constitutes10 %, in the total
value which comes under “C” category.
(c) ABC CLASSIFICATION ON YEAR (2017-18)
Class Value % of Value cumulative % Items

A 23154711 62 62 123
B 10830429 29 91 182
C 3361168 9 100 396
total 37346308
Series 1
450
400
350
300
250
200
150
100
50
0
A B C
Series 1
INTERPRETATION:
In the year 2017-18 , there Are123 items which constitutes their value of 62%, in the
total value which comes under “A”category.182 items which constitutes29% in the total
value which comes under “B” category and 396 items which constitutes 9% in the total value
which comes under “C” category.
(d) ABC CLASSIFICATION (2018-19)
% of Items
Cass Value value Cumulative%
A 28756656 70 70 135
B 8216188 20 90 200
C 4108093 10 100 436
total 41080938 100 771
Series 1
500
450
400
350
300
250
200
150
100
50
0
A B C
Series 1
INTERPRETATION:
In the year 2018-19 , there Are135 items which constitutes their value of70%, in the
value which comes under “B” category and 436 items which constitutes 10%n the total value
(e)ABC CLASSIFICARION ON THE YEAR (2019-20)
% of Items
Cass Value value Cumulative%
A 36151226 80 80 148
B 6778354 15 95 220
C 2259452 5 100 480
Total 41080938 100 848
600
500
400
300
200
100
0
A B C
INTERPRETATION:
In the year 2019-20 , there Are148 items which constitutes their value of80%, in the
value which comes under “B” category and 480 items which constitutes 5%n the total value
2. RATIO ANALYSIS
a. RAW MATERIAL TURNOVER RATIO
Period Raw Material AVERAGE RAW RATIO VALUE

Consumed(Rs) MATERIAL(Rs)
2015-16 3937812454 226333146 17.39
2016-17 7794794675 466270075 16.71
2017-18 8453055263 475934324 17.76
2018-19 986258975 523129488 18.85
2019-20 10983459834 5691548818 19.30
RATIO VALUE
20
19.5 19.3
19 18.85
18.5
18 17.76
17.5 17.39
17 16.71
16.5
16
15.5
15
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
In the above data indicates that raw material turnover ratio is 17.39 times in the year
2015-2016 and it is decreased 16.71 in the year 2019-2018.then it is increase to 17.76 in the
year 2017-2018, again it is increased to 18.85 in the year 2018-2019again it is increased to
19.30 in the year 2019-2020. It can be conclude that raw material turnover ratio has improved
even with increased requirement of raw material and business volatilities.
(b)WORK-IN-PROGRESS TURNOVER RATIO
Period Cost of Goods Sold Average Work-in - Ratio Value

Progress
2015-16 4780617871 253103985 18.89
2016-17 9236956058 478121242 19.32
2017-18 9928113854 581208251 17.08
2018-19 10878654391 6233285677 17.45
2019-20 12656892562 6758236514 18.73
20
19.5
19
18.5
18
17.5
17
16.5
16
15.5
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
In the above data indicates that work-in-process ratio is 18.89 times in the year 2015-
16 and it is increased 19.32 in the year 2016-17.then it is decrease to 17.08 in the year 2017-
18 ,and it is increased to 17.45 in the year 2018-19 again it is increased to 89.73 in the year
2019-20. It can be conclude that raw material turnover ratio has improved even with
increased requirement of raw material and business volatilities.
(c) FINISED GOODS TURNOVER RATIO
Period Cost of Goods Sold Average Finished Ratio Value

Goods
2015-16 5958016404 120859398 49.29
2016-17 10833256904 277797726 38.99
2017-18 13177230047 389043563 33.87
2018-19 13945268712 3890413563 35.85
2019-20 14256394874 3956897412 36.03
60
50
40
30
20
10
0
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
In the above data indicates that finished goods turnover ratio is 49.29 times in the year
2015-16 and it is decreased 38.99 in the year 2016-17.then it is decrease to 33.87 in the year
2017-18, again it is increased to 35.85 in the year 2018-19, again it is increased to 36.03 in
the year 2019-20. It can be conclude that finished goods turnover ratio has improved even
with increased requirement of finished goods and business volatilities.
(d)INVENTORY TURNOVER RATIO
Period Net Sales Average Inventory Ratio Value

2015-16 5958016404 746837818 7.97
2016-17 10833256904 1432524560 7.56
2017-18 13177230047 1775802189 7.42
2018-19 7354 603.219 12.19
2019-20 9219 718.672 12.82
14
12
10
0
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
In the above data indicates that inventory turnover ratio is 7.97 times in the year 2015-
16 and it is decreased 7.56 in the year 2016-16.again it is decrease to 7.42 in the year 2017-
18,and it is increased to 12.19 in the year 2018-19 again it is increased to 12.82 in the year
2019-20. It can be conclude that inventory turnover ratio has improved even with increased
requirement of inventory and business volatilities.
COMPARISION OF TURNOVER RATIO
Turnover 2015-2016 2016-17 2017-18 2018-19 2019-20

Ratio
RAW 17.9 16.71 17.76 18085 19.30
MATERIAL
WORK-IN- 18.89 19.32 17.08 17.45 18.73
PROGRESS
FINISED 49.29 38.99 33.87 35.85 36.03
GOODS
INVENTORY 7.97 7.56 7.42 12.19 12.82
14
12
10
0
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
In the above data indicates the inventory turnover ratio is to some extent increased to
year by tear like 2015-16, 2016-17 and 2017-18.But it is decrease in the year 2018-19 and
2019-20. Inventory turnover ratio is declined for year by year. That is company production is
also declined subsequently sales are also declined.
RAW MATERIALS HOLDING PERIOD
Period No. of Days Raw Materials Holding Period

Turnover Ratio (In days)
2015-16 365 17.39 20.98
2016-17 365 16.71 21.84
2017-18 365 17.76 20.55
2018-19 365 18.85 19.36
2019-20 365 19.30 18.91
23
22
21
20
19
18
17
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
The above table indicates that the raw material holding period for the financial year
2015-16 is 21 days, for 2016-17 is 22 days for 2017-18 is 21 days for 2018-19 is 19 days and
the financial year 2019-20 is 19 days.
WORK-IN-PROGRESS HOLDING PERIOD
Period No.of.Days Work-In-Progress Holding Period

2015-16 365 18.89 19.32
2016-17 365 19.32 18.89
2017-18 365 17.08 21.37
2018-19 365 17.45 20.91
2019-20 365 18.73 19.48
22
21.5
21
20.5
20
19.5
19
18.5
18
17.5
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
The above table indicates that the work-in-process holding period for the financial year
2016 is 19.32 days, for 2017 is 18.89 days for 2018 is 21.37 days for 2019 is 20.91 days and
the financial year 2020 is 19.48 days.
FINISED GOODS HOLDING PERIOD
Period No. of Days Finished Goods Holding Period

2015-16 365 49.29 7.40
2016-17 365 35.99 10.14
2017-18 365 33.87 10.77
2018-19 365 35.85 10.18
2019-20 365 33.03 11.05
12
10
0
2015-16 2016-17 2017-18 2018-19 2019-20
INTERPRETATION:
The above table indicates that the finished goods holding period for the financial year
the financial year 2020 is 11.05 days.
INVENTORY HOLDING PERIOD
Period No. of. Days Inventory Turnover Holding Period

Ratio (In days)
2015-16 365 7.97 45.79
2016-17 365 7.56 48.28
2017-18 365 7.42 49.19
2018-19 365 12.19 29.94
2019-20 365 12.82 28.47
60
50
40
30
20
10
0
2014 2015 2016 2017 2018
INTERPRETATION:
The above table indicates that the finished goods holding period for the financial year
the financial year 2020is 11.05 days.
COMPARISION OF HOLDING PERIOD
Holding 2015-16 2016-2017 2017-2018 2018-2019 2019-2020

Period
RAW 20.98 21.84 20.55 19.36 18.91
MATERIAL
WORK-IN- 19.32 18.89 21.37 20.91 19.48
PROCESS
FINISED 7.40 10.14 10.77 10.18 11.05
GOODS
INVENTORY 7.97 7.56 7.42 12.19 12.82
14
12
10
0
2014 2015 2016 2017 2018
INTERPRETATION:
The above table indicates the raw material, work-in-process, finished goods and inventory
holding period is little change to year by year like 2015-16, 2016-17, 2017-18, 2018-19 and
2019-20 respectively.
3. EOQ ANALYAIS:
ECONOMIC ORDER QUANTITY ON YEAR (2015-2016)
Description Annual Total Ordering carrying EOQ

consumption cost cost
9075-6CL WINDOW GREY 76,216,320 26800 11.78 588889.4

TRAY
FRPPCPV0 DARK GREY 75,391,463 22000 10.012 575608.24

COLOUR
1775-6CL WINDOW GREY 19,118,160 26800 12.65 284616.57

TRAY
PRESSURE RELIEF VALVE 11,267,376 20200 9.56 218209.23

VENT SEAL(PS)
SULPHURIC ACID(CP)1.245 10,889,934 28600 6.5 309566.5

@27 Deg.C
26Ah PPCP SILVER COVER 9,767,363 10600 1.08 138468.39
42Ah PPCP SILVER COVER 7,627,955 10600 2.78 241184.61
Rubber sleeve for 20X2mm 5,646,620 9520 3.56 173781.18

connector
BLACK MASTER BATCH 3,169,636 22600 10.45 117088.91
BARIUM SULPHATE 2,291,535 16000 4.56 126810.67
PVC Shim Roll 175(W) x 0.3(T) 2,161,964 19600 2.2 196270.9
ECONOMIC ORDER QUANTITY ON THE YEAR (2015-2016)
EOQ
700000
600000
500000
400000
300000
200000
100000
0 EOQ
C
S)
or
AY
AY
UR
T)
R
ER
H
g.
TE
(P
VE
ct
3(
TC
De
TR
TR
2m COV
LO
HA
AL
ne
0.
O
BA
O
EY
EY
27
E
LP
)x
S
C
co
R
ER
GR
GR
SU
@
NT
Y
VE
W
TE
m
RE
LV
5
VE
5(
W
AS
UM
SI
SI
24
G
17
DO
M
E
RK
CP
CP
1.
RI
ND
0X
LV
ll
IN
K
P)
BA
DA
PP
PP
Ro
VA
r2
AC
I
W
(C
h
Ah
fo
im
BL
V0
ID
CL
CL
A
LIE
e
AC
Sh
26
42
CP
-6
-6
ev
RE
75
75
PP
C
sle
C
PV
RE
RI
90
17
FR
HU
er
SU
bb
LP
ES
Ru
SU
PR
INTERPRETATION :
In the year 2015-16 indigeneous items like windows grey trey, dark grey color
are increased a lot such that sulphuric acid.was slightly increased. So that you can see that
EOQ has increased a lot.
Description Consumptio Total Carrying EOQ

n Ordering cost cost
Value (Rs)
9075-6CL WINDOW GREY TRAY 10,531,424.0 24000 11.78 206,976.0
0 3
FRPPCPV0 DARK GREY 8,441,492.87 20000 10.01 183,663.3
COLOUR 8
1775-6CL WINDOW GREY TRAY 5,628,480.00 22600 12.65 141,814.1
3
SULPHURIC ACID(CP)1.245 @27 1,646,499.10 19800 9.56 82,584.66
Deg.C
PRESSURE RELIEF VALVE 1,313,875.91 25400 6.50 101,333.3
VENT SEAL(PS) 3
42Ah PPCP SILVER COVER 699,216.96 9200 1.08 109,144.7
9
PVC Shim Roll 175(W) x 0.3(T) 562,956.30 8400 2.78 58,326.97
26Ah PPCP SILVER COVER 478.00 7650 3.56 1,433.29

BLACK MASTER BATCH 2,042.47 20100 10.45 2,803.06
BARIUM SULPHATE 10,364.11 13000 4.56 7,687.23
Rubber sleeve for 20X2mm 3,062.00 15000 2.20 6,461.77
connector
ECONOMIC ORDER QUANTITY O THE YEAR (2016-

17)
250,000.00
200,000.00
150,000.00
100,000.00
50,000.00
0.00
TE
Orders
Y R Y ) R ) R H r
T RA LOU TRA Deg.C L(PS OVE 0.3(T OVE BATC PHA ecto
EY O EY 7 A C x C L n
GR REY C GR SE R ) R R U con
W W 5 @2 ENT SILVE 5(W SILVE ASTE UM S m
O K G O 24 V P 1 7 P M AR I 2m
W IND DAR WIND P)1. ALVE h PPC Roll h PPC LACK B 2 0X
L V0 L (C F V 42A Shim 26A B or
5 -6C PCP 5-6C ACID ELIE C e v ef
7 P 7 IC R PV le
90 FR 17 UR SURE ers
H
LP RES b b
SU P Ru
Materials
INTERPRETATION:
In the year 2015-16 graph you can see that window grey trey, sulphuric acid,were used in a
lot compared to 2016-17 the window grey trey was carrying cost was same .Where it shows
effect on increase in consumption of raw material ,this intiurn results in increase in
EOQ.Total inventory cost will be increased.
ECONOMIC ORDER QUANTITY ON THE YEAR (2017-18)

Description Annual Total ordering Carrying EOQ
Consumption cost (Rs) cost(Rs)
FRPPCPV0 DARK GREY 10,715,683.29 25,000.00 11.78 213266.3

COLOUR
1775-6CL WINDOW GREY TRAY 10,219,086.68 18,000.00 10.01 191708
9075-6CL WINDOW GREY TRAY 6,811,081.47 21,200.00 12.65 151093.5
PRESSURE RELIEF VALVE 1,131,695.10 18,000.00 9.56 65281.03

VENT SEAL(PS)
26Ah PPCP SILVER COVER 636,410.18 21,400.00 6.50 64734.18
42Ah PPCP SILVER COVER 623,422.81 8,500.00 1.08 99061.27
PVC Shim Roll 175(W) x 0.3(T) 616,506.38 7,500.00 2.78 57675.58
BARIUM SULPHATE 505,350.78 8,500.00 3.56 49124.21
BLACK MASTER BATCH 250,111.23 19,000.00 10.45 30157.82
SULPHURIC ACID(CP)1.245 @27 37,294.77 15,000.00 4.56 15663.98

Deg.C
ECONOMIC ORDER QUANTITY ON YEAR(2017-18)

250000
200000
150000
100000
50000
0
R R ) E H ECONOMIC ORDER QUANTITY ON
Orders
O UR RAY RAY (PS)OVE OVE .3(T HAT ATC g.C ctor YEAR(2009-10)
L T T L C C 0 LP B De e
Y CO REY REY SEAVER VER ) x SU TER 27 onn
E G G T IL IL (W M S @ C
K GR OW OW VENP S P S 175 RIU MA 45 mm
D D E C C A K 2 2
DAR IN IN ALVh PP h PP Roll B LAC P)1. 20×
W W V B C
( or
V0 CL CL F 6A 2A im
P CP 5-6 5-6 ELIE 2 4 C Sh A CID ve f
P 7 7 R PV e
FR 17 90 URE U RIC r Sle
S H e
ES LP bb
PR SU Ru
Materials
INTERPRETATION :
In the year 2016-17 graph you can see that window grey trey, sulphuric
acid,were same in a lot as compared to 2017-18 the window grey trey was as same as there
was no change in consumption value,and ordering cost,there is no change in EOQ value.The
effect of EOQ is same as 2018-19.
Description Annual Ordering Cost Carrying Cost EOQ

Consumption
1775-6CL WINDOW 11652891 28500 12.56 229963.7861

GREY TRAY
9075-6CL WINDOW 10256365 21600 11.25 198455.1375
GREY TRAY
FRPPCPV0 DARK 8811052 22500 13.5 171377.2836
GREY COLOUR
PRESSURE RELIEF 2250653 20145 9.65 96936.9270
VALVE VENT
SEAL(PS)
26Ah PPCP SILVER 837520 23212 7.55 71762.1425
COVER
42Ah PPCP SILVER 725623 9600 2.05 82438.3335
COVER
PVC Shim Roll 175(W) x 698452 8654 2.82 65473.7434
0.3(T)
BARIUM SULPHATE 582695 9200 3.25 57436.4880
BLACK MASTER 365840 22450 10.85 38909.3428

BATCH
SULPHURIC 125612 16250 5.5 27244.3155
ACID(CP)1.245 @27
Deg.C
ECONOMIC ORDER QUANTITY ON YEAR (2018-

2019)
250000
200000
150000
100000
50000
0
Orders
H
R
R
AY
AY
UR
)
S)
g.C
(T
AT
VE
VE
TC
(P
TR
TR
.3
LO
De
PH
CO
CO
BA
AL
x0
CO
EY
EY
UL
27
SE
ER
R
R
GR
GR
)
VE
VE
S
(W
EY
@
NT
ST
UM
SIL
SIL
GR
W
75
5
VE
24
M
DO
DO
RI
CP
CP
ll 1
RK
VE
1.
BA
CK
IN
IN
PP
PP
DA
AL
Ro
P)
A
LW
(C
FV
Ah
Ah
BL
im
0
CL
ID
V
C
26
42
LIE
Sh
CP
AC
-6
-6
RE
75
75
C
PP
C
PV
RE
RI
17
90
FR
HU
SU
LP
ES
SU
PR
Materials
INTERPRETATION:
In the year 2018-19 indigeneous items like windows grey trey, dark grey color are
increased a lot such that sulphuric acid.was slightly increased.As the usage of raw material
increase ,consumption value will automatically increase, all this will show effect on increase
in EOQ value,So that inventory cost will increase.
Description Annual Ordering Cost Carrying EOQ

Consumption (Rs) Cost(Rs)
FRPPCPV0 DARK GREY 12562385 23560 14.25 201011.0250

COLOUR
PRESSURE RELIEF 10632546 21545 10.5 208887.3944
VALVE VENT SEAL(PS)
1775-6CL WINDOW 9563251 29500 13.5 204438.1296
GREY TRAY
9075-6CL WINDOW 8563421 23560 12.12 182463.0704
GREY TRAY
42Ah PPCP SILVER 956425 12365 4.05 76420.5231
COVER
26Ah PPCP SILVER 912362 20450 8.65 65680.6126
COVER
BARIUM SULPHATE 653245 10236 4.85 52510.6403
BLACK MASTER 465213 21560 11.85 41143.9631

BATCH
PVC Shim Roll 175(W) x 725896 9560 3.96 59201.6148
0.3(T)
SULPHURIC 225631 15630 6.55 32815.0614
ACID(CP)1.245 @27
Deg.C
ECONOMIC ORDER QUANTITY ON YEAR (2019-

2020)
250000
200000
150000
100000
50000
0
Orders
TE
CH
ER
(T)
Y
SIL RAY
UR
HA
RIU OVE
AT
OW TRA
g.C
OV
GR )
OW L(PS
0.3
LO
LP
RB
T
De
RC
RC
SU
CO
EY
EY
)x
IND SEA
E
VE
VE
27
GR
ST
M
(W
EY
SIL
5@
L W NT
MA
GR
75
VE
CP
CP
BA
24
ll 1
CK
RK
IND
PP
PP
VE
)1.
Ro
A
DA
AL
BL
LW
Ah
Ah
CP
im
V0
FV
42
26
ID(
-6C
-6C
h
CP
LIE
CS
AC
75
75
PP
RE
PV
RIC
17
90
FR
RE
HU
SU
LP
ES
SU
PR
Materials
INTERPRETATION:
In the year 2019-20 indigeneous items like windows grey trey, frppcpvo dark
gray colour are increased a lot such that sulphuric acid.was slightly increased. So that you
can see that EOQ has increased a lot.It shows effect on increase in consumption value ,Where
it increase inventory cost of raw materials.
COMPARING THE EOQ OF ALL THE YEARS:

Description 2015-16 2016-17 2017-18 2018-19 2018-20
9075-6CL WINDOW GREY 588889.4 206,976.03 213266.3 198455.13 182463.0704
TRAY
FRPPCPV0 DARK GREY 575608.2 183,663.38 191708 171377.28 201011.0250
COLOUR 4
1775-6CL WINDOW GREY 284616.5 141,814.13 151093.5 229963.7861 204438.1296
TRAY 7
PRESSURE RELIEF VALVE 218209.2 82,584.66 65281.03 96936.9270 208887.3944
VENT SEAL(PS) 3
SULPHURIC ACID(CP)1.245 309566.5 101,333.33 64734.18 27244.3155 32815.0614
@27 Deg.C
26Ah PPCP SILVER COVER 138468.3 109,144.79 99061.27 71762.1425 65680.6126
9
42Ah PPCP SILVER COVER 241184.6 58,326.97 57675.58 82438.3335 76420.5231
1
Rubber sleeve for 20X2mm 173781.1 1,433.29 49124.21 63237.2436 64531.6342
connector 8
BLACK MASTER BATCH 117088.9 2,803.06 30157.82 38909.3428 41143.9631
1
BARIUM SULPHATE 126810.6 7,687.23 15663.98 57436.4880 52510.6403
7
PVC Shim Roll 175(W) x 196270.9 6,461.77 187360.8 65473.7434 59201.6148
0.3(T)
COMPARING THE EOQ OF THE ALL YEARS
Series 1
250000
200000
150000
100000
50000
0
2016 2017 2018 2019 2020
Series 1
INTERPRETETION:
If you see the consumption of all the years you can find that window grey trey was imported
a lot from out and the cost we spent on that particular item was more than any other item.
FINDINGS
In the year 2015-2016 ‘B’ class 15% and ‘C’ class 5% class items are decreased than
2016-17 where the value also increased a lot.
The ‘A’ class items in 2017-18 (80%) where eventually increased compare to the year
2018-2019(62%).
The inventory turnover ratio was increased to 12.82 times in the year 2019-2020
compare to the year 2015-2016 i.e., 7.97 times.
As the procurement of the orders is against the forecast, particularly ‘A’ class items as
these items require minimum of 45 Days lead time.
The company is planning the raw material based on the Sales plan for customer’s orders.
Frequent changes in sales plan leads to more revisions in order planning which affects
inventory.
Have not been implementing any evolved technique in material or stores management
like two bin system or just-in-time.
SUGGESTIONS
 The company has to eliminate dead inventory as depreciation is charged even on the dead
inventory and this has resulted in decrease profits.
 Company should strive for “Getting the rights goods to the right place at the right time for the
least cost”.
 Company has to position inventory items according to risk and opportunity.
 Company has to distinguish between bottleneck items, critical items (high risk, high
opportunity).
 Can be negotiated with vendors to reduce lead time for ‘A’ class material so as to reduce
inventory levels.
 Two bin systems and just-in-time can be implemented to control inventory.
CONCLUSION
Finally, I conclude that:
After studying the inventory management of Amara Raja Batteries Limited, is good it
follows inventory techniques like JIT it reduces the number of orders for expectation of the
production. When JIT principles are implemented successfully, significant competitive
advantages are realized. JIT principles can be applied to all parts of the organization; order
taking, purchasing, operations, distribution, sales, accounting, design, etc…,
ANNEXTURE
Profit and Loss Account for the year ended March 31, 2015-16.
(Amount in Rupees)
Particulars Year Ended Year Ended

31-03-2015 31-03-2016
INCOME
Sales – Gross 26,057,500,000 19,443,140,000
Less: Excise duty Collected 2,383,940,000 1,832,610,000
Net Sales 23,673,560,000 17,610,530,000
Other Income 151,850,000 77,760,000
TOTAL 23,825,410,000 17,688,290,000
EXPENDITURE
Cost of material consumed 14,993,380,000 11,787,140,000
Purchase of stock in trade 840,020,000 74,140,000
Change in inventories of finished product, work-
121,690,000 283,140,000
in-process and stock in trade
Employee benefits expenses 1,002,640,000 884,590,000
Finance cost 40,590,000 30,580,000
Depreciation and amortization 464,730,000 417,120,000
Other expenses 3,175,910,000 2,574,040,000
TOTAL 20,638,960,000 15,484,470,000
Profit Before Taxation 3,186,450,000 2,203,820,000
Less Tax expenses
Current ax 1,030,210,000 731,390,000
Deferred tax(income)/expenses 14,670,000 11,420,000
Earlier years(excess)/short provision 9,060,000 2,890,000
Profit for the year 2,150,630,000 1,480,960,000
Basic Earnings Per Equity Share 25.18 17.34
BALANCE SHEET as at March 31, 2015-16

(Amount in Rupees)
Particulars As at 31-03-2015 As at 31-03-2016
SOURCES OF FUNDS
Shareholders' Funds
Share capital 170,810,000 170,810,000
Reserves and surplus 8,063,880,00 6,288,460,000
0
8,234,690,000 6,459,270,000
Noncurrent liabilities
Long term borrowings 784,720,000 701,020,000
Deferred tax liabilities 219,600,000 204,930,000

Long term provisions 146,180,000 104,170,000
1,150,500,000 1,010,120,000
Current liabilities
Short term borrowings 56,040,000 200,100,000
Trade payables 888,500.000 1,053,790,000
Other current liabilities 1,124,560,000 967,930,000
Short term provisions 2,060,880,000 1,467,990,000
4,129,980,000 3,689,810,000
Total 13,515,170,000 11,159,200,000
Assets
Noncurrent assets
Fixed asset
Tangible asset 3,524,800,000 3,132,810,000
Intangible asset 20,920,000 18,060,000

Capital work in process 310,650,000 369,570,000
3,860,950,000 3,526,280,000
Noncurrent investment 160,760,000 160,760,000
Long term loans and 122,850,000 145,180,000
advances
Other noncurrent assets 1,110,000 2,370,000
4,145,670,000 3,834,590,000
Current assets
Inventories 2,666,170,000 2,846,970,000
Trade receivables 3,196,830,000 3,056,620,000
Cash and bank balance 2,292,200,000 451,180,000
Short term loans and 1,182,700,000 946,740,0000
advances
Other current assets 31,600,000 23,100,000
9,369,500,000 7,324,610,000
Total 13,515,170,000 11,159,200,000
Profit and Loss Account for the year ended March 31, 2016-17
(Amount in Rupees)
31-03-2016 31-03-2017
INCOME
Sales of product 32,957,450,000 25,978,360,000
Net Sales 29,461,730,000 23,594,420,000
Sale of Services 137,020,000 38,960,000
Other operating revenue 15,210,000 11,300,000
Net revenue from operations 29,613,960,000 23,644,680,000
Other income 465,510,000 279,710,000
TOTAL 30,079,470,000 23,924,390,000
EXPENDITURE
Purchase of stock in trade 2,632,540,000 840,020,000
Change in inventories of finished product, work-
320,890,000 98,150,000
in-process and stock in trade
Employee benefits expenses 1,266,230,000 1,002,640,000
Finance cost 9,980,000 24,470,000
Depreciation and amortization 660,920,000 464,730,000
Other expenses 3,882,010,000 3,175,850,000
TOTAL 25,769,730,000 20,737,940,000
Profit Before Taxation 4,309,740,000 3,186,450,000
Less Exceptional items 91,570,000 -
Less Tax expenses
Current ax 1,377,970,000 1,030,210,000
Deferred tax(income)/expenses 24,510,000 14,670,000
Earlier years(excess)/short provision 2,340,000 9,060,000
Basic Earnings Per Equity Share 16.78 12.59
BALANCE SHEETas at March 31, 2016-17

(Amount in Rupees)
SOURCES OF FUNDS
Shareholders' Funds
Share capital 170,810,000 170,810,000
10,598,140,000 8,234,690,000
Noncurrent liabilities
Long term borrowings 773,130,000 784,720,000
Deferred tax liabilities 195,090,000 219,600,000
1,334,630,000 1,150,500,000
Current liabilities
Short term borrowings 98,630,000 56,040,000
Trade payables 1,362,840,000 876,330,000
Other current liabilities 1,807,260,000 1,136,730,000
Short term provisions 2,493,200,000 2,060,880,000
1,888,508,475 1,568,304,581
5,761,930,000 4,129,980,000
Total 17,704,700,000 13,515,170,00
Assets
Noncurrent assets
Fixed asset
Tangible asset 3,554,970,000 3,524,800,000
Intangible asset 33,690,000 20,920,000
Capital work in process 1,024,970,000 310,650,000
Intangible asset under development 4,840,0000 4,580,000
4,618,470,000 3,860,950,000
Noncurrent investment 160,760,000 160,760,000
Long term loans and advances 353,520,000 96,410,000
Other noncurrent assets 3,430,000 1,110,000
5,136,180,000 4,119,230,000
Current assets
Inventories 2,928,580,000 2,666,170,000
Cash and bank balance 4,107,900,000 2,291,900,000
Short term loans and advances 1,656,780,000 1,209,440,000
12,568,520,000 9,395,940,000
Total 17,704,700,000 13,515,170,00
Profit and Loss Accountfor the year ended March 31, 2017-18.
31-03-2017 31-03-2018
INCOME
Sales of product 38,041,270,000 32,949,370,000
Net Sales 34,036,120,000 29,436,920,000
Sale of Services 309,320,000 137,020,000
Other income 455,140,000 465,510,000
TOTAL 34,821,730,000 30,054,660,000
EXPENDITURE
Purchase of stock in trade 2,113,690,000 2,632,540,000
Change in inventories of finished product,
( 292,100,000) (320,890,000)
work-in-process and stock in trade
Finance cost 7,180,000 2,690,000
Depreciation and amortization
expenses[includes impairment loss of Rs 645,710,000 660,920,000
nil(pay Rs 75.52 million)]
Other expenses 4,346,600,000 3,904,240,000
TOTAL 29,416,190,000 25,744,920,000
Profit Before Exceptional Items And Tax 5,405,540,000 4,309,740,000
Less: Exceptional items(net) 38,840,000 91,570,000
Profit before tax 5,366,700,000 4,218,170,000
Less : Tax expense - -
Current Tax 1,580,000,000 1,377,970,000
Deferred Tax(credit)/expense 106,230,000 (24,510,000)
Earlier years (excess)/short
6,110,000 (2,340,000)
provision
Basic and diluted earnings per equity share of
21.51 16.78
Rs 1 each
(Amount in Rupees)
(Amount in Rupees)
SOURCES OF FUNDS
Shareholders' Funds
Share capital 170,810,000 170,810,000
13,627,000,000 10,598,000,000
Non-Current Liabilities
Long-term borrowings 759,470,000 773,130,000
Long-term provisions 369,570,000 376,410,000
Deferred tax liability 301,330,000 195,090,000
1,430,370,000 1,344,630,000
Current Liabilities
Short-term borrowings 83,830,000 98,630,000
Trade payables 1,277,790,000 1,362,840,000
Short-term provisions 2,818,730,000 2,493,200,000
6,337,030,000 5,761,930,000
TOTAL 21,394,410,000 17,704,700,000
Assets
Fixed assets
Current Investments 7,678,640,000 4,618,470,000
Non- Current Investments 160,760,000 160,760,000
Long-term loans and 567,690,000 353,520,000
advances
8,408,310,000 5,136,180,000
Current assets
Inventories 3,350,080,000 2,928,580,000
Trades receivables 4,527,890,000 3,806,770,000
Cash and bank balances 2,945,670,000 4,107,900,000
Short-term loans and 2,119,300,000 1,656,780,000
advances
12,986,100,000 12,568,520,000
TOTAL 21,394,410,000 17,704,700,000
Profit and Loss Account for the year ended March 31, 2018-19
(Amount in Rupees)

31-03-2018 31-03-2019
INCOME
Sales of product 46,039,980,000 38,041,270,000
Net Sales 41,781,600,000 34,036,120,000
Sale of Services 314,840,000 309,320,000
Other income 422,990,000 455,140,000
TOTAL 42,536,280,000 34,821,730,000
EXPENDITURE
Cost of material consumed 21,011,950,00
25,494,490,000
0
Purchase of stock in trade 2,746,490,000 2,113,690,000
Change in inventories of finished product, work-in-
( 479,950,000) (292,100,000)
process and stock in trade
Finance cost 2,410,000 7,180,000
Depreciation and amortization expenses 1,339,920,000 645,710,000
Other expenses 5,310,400,000 4,346,600,000
TOTAL 36,364,870,000 29,416,190,000
Profit Before Exceptional Items And Tax 6,171,410,000 5,405,540,000
Less: Exceptional items(net) 72,790,000 38,840,000
Less : Tax expense - -
Current Tax 1,910,000 1,580,000
Deferred Tax(credit)/expense 67,160,000 (106,230,000)
Earlier years (excess)/short provision 12,840,000 (6,110,000)
0 0
Basic and diluted earnings per equity share of Rs 1
24.05 21.51
each

Particulars
As at 31-03-2018 As at 31-03-2019
SOURCES OF FUNDS
Shareholders’ funds
Share capital 170,810,000 170,810,000
Reserve and surplus 16,824,900,000 13,456,200,000
16,995,710,00 13,627,010,000
0
Non-current liabilities
Deferred tax liabilities (net) 368,480,000 301,330,000
Long-term provisions 443,060,000 369,570,000
1,552,920,000 1,430,370,000
Current liabilities
Short-term borrowings - 83,830,000
Trade payables 1,520,800,000 1,277,790,000
Short-term provisions 1,195,720,000 1,259,780,000
5,332,210,000 4,778,080,000
Total 23,880,840,00 19,835,460,000
0
Assets
Non-current assets
Fixed assets
Tangible assets 9,398,930,000 6,198,940,000
Intangible assets 43,690,000 32,960,000
Capital work-in-progress 861,680,000 1,443,600,000
Intangible assets under development 1,520,000 3,140,000
10,305,820,000 7,678,640,000
Non-current investments 160,760,000 160,760,000
Long-term loans and advances 654,700,000 567,690,000
Other non-current assets 0,700,000 1,220,000
11,121,980,00 8,408,310,000
0
Current assets
Inventories 4,181,330,000 3,350,080,000
Cash and bank balances 2,221,710,000 2,945,670,000
Short-term loans and advances 740,820,000 560,350,000
12,758,860,00 11,427,150,000
0
Total 23,880,840,00 19,835,460,000
0
(Amount in Rupees)
Profit and loss Account for the year ended March 31, 2019-20
(Amounts in Rupees)
31-03-2019 31-03-2020
Revenue from operations 52,417,610,000 46,371,670,000
(gross)
Less: excise duty 5,510,930,000 4,258,380,000
Revenue from operations (Net) 46,906,680,000 42,113,290,000
Other income 456,850,000 422,990,000
Total Revenue 47,363,530,000 42,536,280,000
Expenses
Cost of materials consumed 27,421,380,000 25,494,670,000
Purchase of stock – in- trade 3,254,510,000 2,746,490,000
(Traded goods)
Changes in inventories of (1,031,200,000) (479,950,000)
finished goods, Work-in-
progress and stock-in-trade
Employee benefits expense 2,430,020,000 1,950,930,000
Finance costs(int) 4,850,000 2,410,000
Depreciation and amortization 1,398,670,000 1,339,920,000
expense
Other expenses 6,663,370,000 5,383,190,000
Total Expenses 40,141,600,000 36,437,660,000
Tax expense
Current tax expense 2,115,000,000 1,910,000,000
Taxation of earlier years (7,440,000) 12,840,000
Deferred tax 219,920,000 67,160,000
Net tax Expense 2,327,480,000 1,990,000,000
Earnings per share (of Rs,1/-
each)
Basic and diluted( Rs.) 28.65 24.05
BALANCE SHEET As at March 31, 2019-20

(Amount in Rupees)
Equity & Liabilities
Share holders funds
Share capital 170,810,000 170,810,000
21,016,420,000 16,995,710,000
Non-current liabilities
Deferred tax liabilities(Net) 588,400,000 368,480,000
1,773,270,000 1,552,920,000
Current liabilities
Trade payables
Total outstanding dues of Micro & 14,420,000 6,940,000
Small enterprises
Total outstanding Dues of creditors 3,286,210,000 2,602,140,000
other than Micro & Small Enterprises
Short-term provisions 522,410,000 1,195,720,000
6,293,590,000 5,314,230,000
TOTAL 29,083,280,000 23,862,860,000
ASSETS
Non currents assets
Fixed assets
Tangible assets 13,122,660,000 9,398,930,000
In-tangible assets 40,630,000 430,690,000
Capital work-in –Progress 1,197,420,000 861,680,000
In-tangible assets under developments 1,720,000 1,520,000
14,362,430,000 10,305,820,000
Non-current Investments 160,760,000 160,760,000
Long term loans & advances 479,280,000 701,700,000
15,002,470,000 11,168,280,000
Current Assets
Inventories 6,016,480,000 4,181,330,000
Cash & cash equivalents 1,502,580,000 2,221,710,000
Short term loans & advances 527,750,000 660,810,000
14,080,810,000 12,694,580,000
TOTAL 29,083,280,000 23,862,860,000
BIBLIOGRAPHY
REFERENCES:
 I M Panday ; ”Financial Management”, Ninth Edition -2004, Vikas Publishing House Pvt
Ltd, New Delhi.
 Dr. pradip Kumar Sinha; “Financial Management”- Tools and Techniques, EXCEL BOOKS,
New Delhi.
 S N Mahesheswari & S K Maheswari; “Financial Management “ ,Fourth Revised Enlarged
Edition 2005,Vikkas Publishing House Pvt Ltd, New Delhi.
 MK Y Khan & P K Jain; “Financial Management”- Text problems and cases, Fifth Edition,
Tata McGraw-Hill Publishing Company Limited, New Delhi.
 Sudhindra Bhatt; “Financial Management “, Second Edition, EXCEL BOOKS, New Delhi.
Website Source:
www.amararaja.co.in
www.google.com
www.Wikipedia.com

Final Project - 19w51e0025

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Final Project - 19w51e0025

Uploaded by

Copyright:

Available Formats

Inventory Management

Inventory comprises stock of raw materials, work-in-process, finished products, stores

1.1 INDUSTRY PROFILE

A Battery is an Electro Chemical Device in which the energy of chemical

Inventory in wider sense, is defined as any idle resource of an enterprise. It is a

Introduction to battery manufacturing process

The manufacturing process involved in production of maintenance free valve

Intermediate Drying Process:

 How Battery Works:

 Sealed Maintenance Free (SMF)Battery:

The industrial segment is highly technology is an important factor land is vital

GRID CASTING PASTE MIXING

(POSITIVE & NEGATIVE)

GROUPING A CELL WITH

GENERAL MANUFACTURING PROCESS OF A BATTERY IN ARBL

1.2 COMPANY PROFILE

Indian utilities such as the Indian Railways, Department of Telecommunications, Extensive

I. Industrial Battery Division (IBD)

Telecom customers include:

 All C-DOT switch OEMs viz.,BEL,BHEL,CGL,UTI,etc.,

 RaichurTherminal Power station

ARBL is the country’s first manufacture of maintenance-free traction batteries used

APC(American Power Control),Siemens (All type of power Supply Products)

 UPS & EPABX:

II. AUTOMOTIVE BATTERY DIVISION (ABD)

ARBL has inaugurated its automotive plant at Karakambadi in Tirupati on September

 PRODUCTS: Some of the products of ABD are

 Exide Industries Ltd

AMARA RAJA GROUP OF COMPANIES

1. Amara Raja Batteries Limited (ARBL), Karambadi, Tirupati.

Mile Stones of Amara Raja Batteries Ltd:

1985 DEC – Foundation stone laid for Amara Raja.

1997 DEC – Commissioned own plastic & tool room sections.

 ARBL’s Future Plans

 Maximizing the exports

 Awards for Amara Raja Batteries Ltd

 Automotive Product of the year 2000 by Overdrive

 ISO 14001 in2002…. RWTUV

Amara Raja Batteries Ltd.’s Strengths:

PRODUCT PROFILE OF ARBL

S.NO Product Name Features Application

1. Amaron Harvest High performance, totally high For Tractors.

2. Amaron Shield Ready to fit, long life, low For Inverters.

3. Amaron Hi-Life Long life, maintenance free, Cars, utility vehicles,

4. Kombat High discharge, high UPS, EPBS, engine

5. Amara Raja (Power Light weight, sturdy weather Industrial applications,

6. Amara Raja Genpro Zero maintenance, no specific For Generators.

7. Amaron Hi-Way Long life, ultra low For trucks.

8. Quanta UPS batteries

9. Brute (The motive Factory vehicles like

2.1 Definition of Inventory

Stores and Spares:

Need to Hold Inventors

2.2 Importance Of Inventory Management

2.3 Types of Inventory

Meaning of Inventory Control:

Following four fundamentals factors govern for these questions:

b) Double Bin System:

Bin Card Stores Ledger

 A record of qualities only  A record of both quantities and values.

 Maintained by the storekeeper.  Maintained by the Costing department.

 Normally posted by just before the

 Each transaction is individually posted.  Transactions may be summarized.