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click here for freelancing tutoring sitesINTRODUCTION OF THE TOPIC

Every firm aims at maximizing the wealth of shareholders. Earning a steady amount of profit

requires successful sales activity. The firm has to invest enough funds in current assets for the

success of sales activity.

There are different types of inventories that influence the working capital of a firm.

They are raw materials, work-in-progress, finished goods, flabby etc. Inventories should be

managed between the two extreme peaks. It should be neither high nor less. A well

reconciled scientific approach can help the management to plan and control inventory

effectively and efficiently. According to the report of Prakash Tondon Committee (who

conducted a study on the issue of financing inventory and receivables in the light of scarce

resources of the country), commended that most of the Indian Industries generally finance

their inventories with bank credit. Traditionally, the industrial sector of the economy has been

accounting for more than 55 percent to 60 percent of the total credit granted by the banking

system. Industries get bank credits advance against inventory. Normally, credit is made

available on the basis of the inventory pledge or hypothecation. Out of the total value of the

inventory pledged or hypothecated, a certain percentage is advanced to the borrower.

However, a bank may advance loans against the full value of the inventory, the client have.

On an average the bank retain a margin of 15 percent to 35 percent. According to this report

“flabby” inventory shouldn’t be permitted and the “profit making” inventory might be

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positively discouraged. A good management always tries to bring down safety inventory as

much as periodical statistical checks may justify. Excess inventory is considered as luxury

and when consider with normal inventory it get clear that one is stable and the other

fluxuates. Even in the normal stage of inventory there should be an excellent system which

maintains the minimum level of Raw materials, process stock, finished goods and stores and

thus ensures continuity of production.

The term working capital refers to current assets which may be defined as those which are

convertible into cash or equivalents within a period of one year and those which are required

to meet day to day operations. The working capital refers to the management of current assets

and current liabilities. A firm's working capital consist of its investments in current assets

which includes short term assets such as cash and bank balances, inventories, receivables and

marketable securities. So the working capital management refers to the management of the

level of all those individual current assets.

Mainly there are two concepts regarding the meaning of working capital. As per the

first view, working capital is the total of current assets represented by the long term and short

term liabilities. This view place more emphasis on the quantitative aspect of working capital

rather than its qualitative aspect. It is because of the fact that as all the current assets assist in

the conduct of business operations, it doesn't matter whether they are finance by long term

funds or by current or short term liability.

On the other hand, the other view is given more emphasis on the qualitative aspects

rather than quantitative aspects of working capital. Similarly, the definitions of working

capital should be based on the net concept which means that working capital is the excess of

current assets over current liabilities.

Every business needs funds for its establishment and to carryout its day to day

operations. Long term funds are used to create production facilities through purchase of fixed

assets such as plant and machinery, land and building, furniture etc

The need and importance of working capital in a firm cannot be over emphasized.

Hardly, we can find a business firm, which does not require any amount of working capital.

But it is a fact that the requirement of working capital differs from firm to firm.

The need of working capital arises due to the time gap between production and its

realization of cash from sale proceeds. There is time gap in the operation cycle of purchase of

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raw material and its production; production and sales, and sales and realization of cash. Thus

it is necessary to have working capital for the following purposes: -

• For the purpose of raw material components and spares.

• To pay wages and salaries.

• For the purpose of meeting day-to-day expenses and overhead costs such as fuel,

power and office expenses etc.

• To meet the selling expenses such as packing, advertising etc.

• To provide credit facilities to the customers.

• To maintain the inventories of raw material work-in-progress, stores and spares and

finished stock.

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COMPANY PROFILE

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COMPANY PROFILE

EVEREADY INDUSTRIES LTD

ABOUT US

Eveready Industries India Ltd., a $150 million company, is one of the most reputed FMCG

companies in India, with formidable strengths in manufacturing, marketing and distributing a

diverse range of products covering Batteries, Flashlights and Packet Tea.

Eveready is the world''s third largest producer of carbon zinc batteries, selling more than a

billion units a year. Its carbon zinc batteries dominate the Indian market with a complete

range for all equipment types.

With such formidable strengths in the domestic market, Eveready Industries India Ltd.

launched its products in the Global market under the brand name LAVA. Making its presence

felt in 15 countries, LAVA is now a brand to watch out for.

Eveready Industries India, Ltd (EIIL) (previously known as Union Carbide India,

Limited) is the flagship company of the B.M. Khaitan Group. The brand Eveready has been

present in India since 1905.

EIIL's principal activities are the manufacture and market of batteries, flashlight cases,

electrolytic manganese dioxide and arc carbons. It also manufactures photo-engravers

plates/strips for printing, castings, hard facing and tube rods, carbon electrodes and other

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related products. The company also produces and markets tea. The Group's operating

facilities are located at Kolkata, Chennai, Hyderabad, NOIDA, Gurgaon and Navi Mumbai.

During the fiscal year 2002 the group sold its wholly subsidiaries Dufflaghur Investments

Limited and Natex Investment and Marketing Limited. Batteries accounted for 51% of fiscal

2002 revenues; Tea, 38%; Flashlight cases, 9%; Electrolytic Manganese dioxide, 1%;

Purchased products, 1% and Others, nominal.

EIIL is the world’s third largest producer of carbon zinc batteries, selling more than a billion

units a year. EIIL is India’s largest selling brand of dry cell batteries and flashlights (torches),

with dominant market shares of about 46% and 85% respectively.

VISION

For over a century, our corporation has been a partner to consumers with our expertise in

portable power and light. Today, we endeavour to be the perfect Companion to consumers by

providing value-for-money brands with Tangible Differentiation in quality Every day, we

seek Consumer Proximity to ensure the enjoyment of better living.

MISSION

Our core competence will be based on these three core values for the total synergy and future

profitable growth of our corporation

QUALITY POLICY / PROCESSES

Eveready has a totally computerized battery testing facility - the only battery testing

laboratory accredited by National Accreditation Board for Testing & Calibration Laboratories

(NABL) - where batteries can be tested as per BIS, IEC and JEC standards. Eveready's

research team constitutes highly qualified Scientists, Engineers, Chemists and Technicians

dedicated to maintaining technology leadership in Zinc-Carbon batteries, Flashlights and

related components. The Research Centre has Pilot Plant facilities, Analytical testing

facilities such as Atomic Absorption Spectrophotometer (AAS), Polarograph, X-Ray

Diffractometer (XRD) and a Chemical Laboratory. The Eveready Research Centre is capable

of providing world-class testing and research support to meet stringent customer

requirements from across the world.

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Products

Eveready Industries have business interests spreading across batteries, flashlights, lighting

solutions, alternative lighting solutions, and packed Tea.

Batteries

• Zinc-carbon battery : A zinc-carbon battery which is commonly used for Toys,

Cameras, Torches, Walkman, CD-players, Radios, clocks and cordless mikes.

• Alkaline Battery: Eveready Ultima Alkaline battery is the is one of one of the most

popular batteries used in electronic gadgets of modern times.

• Rechargeable Battery: 'Eveready Recharge' is one of the pioneers as a brand of

rechargeable batteries and chargers to be introduced in India.

• Battery Guide

Flashlights

• digiLED Torches: These torches use power efficient LEDs in place of the

incandescent bulbs.

• Brass Torches: Jeevan Sathi brass torchlight has been a reliable, durable and

repairable, making it a must-have evening companion especially in the villages. It is

one of the most trusted brands in rural India across all product categories.

• Aluminium & Plastic Torches: These torches have strong durable bodies, slide

switches for easy handling and come in a wide range of models and colors.

Lighting Solutions

• Compact Fluorescent Lamps: In 2007, Eveready forayed into the lighting business

with the launch of a range of Compact Fluorescent Lamps.

• Halogen Lamps: Eveready offers halogen lamps for outdoor lighting and video-

shooting.

• General lighting service/incandescent lamps: A range of incandescent bulbs in

different sizes, voltages and colours are used widely in household and commercial

lighting, apart from portable, decorative and advertising lighting.

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Marketing

In 1992, Rediffusion Y&R, the agency on record, cracked the ‘Give me Red’ tagline that

Eveready Industry continues to use. In 2004, Amitabh Bachchan was appointed as brand

ambassador for a period of two years, during which the agency came up with another ‘Give

me Red’ campaign. Following the Bachchan ads, it was only earlier in 2009 that Eveready

released an ad titled ‘Boxing’.

Eveready Industries has launched an advertising campaign for Eveready Ultima to highlight

its latest offering, Eveready Ultima Batteries. The entire animation has been worked on by

creating controlled trails of light concept which is derived out of light painting. Recognizable

shapes were made with a torch and captured on a digital still camera. The film comprises

over 3000 such photographs, played back quickly, one after the other, like in a flicker book.

HISTORY

Ask any Indian consumer to name a Battery and the first brand that comes to mind is

Eveready. Not just among batteries, Eveready is a powerful brand across categories.

Eveready has a portfolio comprising dry cell batteries (carbon zinc batteries, rechargeable

batteries and alkaline batteries), flashlights (torches), CFLs (Compact Fluorescent Lamps)

and packet tea. Recently it has also forayed into the mosquito repellant industry.

Eveready’s strength is the result of a continuous and well-orchestrated brand development

strategy that maximizes the value from each consumer touch-point.

Is the iconic urban face of Eveready. The advertising byline of the popular Red series of

batteries, it is today symbolic of the empowered urban lifestyle that the brand reflects. The

original, path-breaking campaign won as many as 11 advertising awards.

The current television commercial on Eveready Ultima, which has explored and

demonstrated the technique of light painting (through the TVC) has been very well received

and is a one of its kind commercial in the entire batteries segment.

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The unmatched consumer confidence is also reflected through the various accolades that the

company has got over the years.

Few highlights have been listed below:

• In the Confederation of Indian Industry (CII)’s ‘Brand of the year’ 2005 shortlist,

Eveready made the top ten finalists list, along with brands like Nokia, HP, Titan,

Dabur and five other Hindustan Lever Brands

• As per AC Nielsen, Eveready stood 7th among all FMCG companies in terms of

growth in the year 2004-2005.

• The Economic Times’ Brand Equity survey of Brands by Sales, April 2004, put

Eveready at no. 22 across brands in all categories.

• Scores in the CII survey done by the independent brand consultancy Vertebrands,

show Eveready scoring a near-perfect 99% total awareness among Target Consumers.

• As per Vertebrands’ survey, on a 10-point scale, Eveready scored 8 on popularity and

7.7 on contemporariness. Of all consumers surveyed, 41% called it “The Only Brand

for Me”.

• In the AAUTS (Awareness,Attitude,Ushership Tracking Study ) conducted by AC

Nielsen in the year 2007-2008 , Eveready emerged with a Brand Equity of 7.5 out of

10 and the nearest competitor came up with 3.7.

• The same study by AC Nielsen showed Eveready having 45% market share vis a vis

its nearest competitor having 30% (2007-2008).

Eveready products are available under the mother brand name EVEREADY (Batteries and

Lighting Solutions) and also extended brand names like

• EVEREADY ULTIMA (Alkaline Batteries)

• EVEREADY RECHARGE (Rechargeable Batteries)

• EVEREADY JEEVAN-SATHI (Brass Torches),

• EVEREADY DigiLED (LED Flash Lights),

• EVEREADY CFL (Compact fluorescent lamps),

• EVEREADY POWERON (Homecare products) and

• EVEREADY PREMIUM GOLD / JAAGO / TEZ (Packaged Tea) etc

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EARLY HISTORY

EIIL started its operation in India in 1905. The first dry cell batteries were imported from the

USA and sold in the major cities of the country. These batteries were primarily used in

imported torches.

In 1939, the company set up its first battery plant in Kolkata. This was followed by another

battery manufacturing plant in Chennai in the year 1952. A torch manufacturing plant was set

up at Lucknow in 1958. Today it is one of the largest torch manufacturing plants in South

East Asia. The plant manufactures the full range of brass, aluminium and plastic torches.

In 1969, the now infamous factory in Bhopal was opened.

SUCCESS

By the time of the Bhopal Disaster in 1984, the company was ranked twenty-first in size

among companies operating in India. It had revenues of Rs 2 billion (then equivalent to

US$170 million). Fifty-one per cent of the company (known at the time as UCIL) was owned

by Union Carbide Corporation; remaining shares were held by 24,000 stockholders. Ten

thousand people were employed in five operating divisions that manufactured batteries,

carbon products, welding equipment, plastics, industrial chemicals, pesticides, and marine

products. EIIL became part of the Williamson Magor Group through McLeod Russel Ltd in

the latter half of 1994 following the sale of Union Carbide Corporation's stake in UCIL.

UCIL is primarily a dry-cell battery manufacturer at the time, but as part of the Williamson

Magor Group EIIL launched three brands of packet tea under the Greendale Brand umbrella -

Tez, Jaago and Premium Gold. Coupled with EIIL’sbrands of packet tea are now easily

available in most states in India. In 1997, the Eveready brand was extended to its packet tea

business. McLeod Russel Ltd. eventually merged with Eveready Industries.

EIIL has the licence for the Eveready brand only in India, Bhutan and Nepal from Energizer

Holdings, so it had to create a new brand for export to other markets where Energizer

Holdings still has the rights to the Eveready brand[2]. The brand LAVA was launched in 1999.

LAVA batteries and flashlights have been sold in Dubai, Bahrain, Jordan, Sudan, Egypt,

Bangladesh, Mauritius, Sri Lanka, Azerbaijan, Mexico, US, Lebanon, Saudi Arabia, Ethiopia

and Nigeria.

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In 2005, EIIL celebrated its 100 anniversary in India. That same year, EIIL separated its bulk

tea business and de-merged McLeod Russell. EEIL also acquired the ailing BPL Soft Energy

System in 2005.

MILESTONES

• 1905: National Carbon starts its Indian operations with sale of batteries imported from

USA.

• 1926: Ever Ready Company India sets up the first arc carbon factory at Canal Road,

Kolkata.

• 1934: Eveready Company incorporated as a private company on 12 November.

• 1939: Camperdown Works - first modern battery plant established at Cossipore in

Kolkata.

• 1941: Union Batteries merges with Eveready Company and the name is changed to

National Carbon Company.

• 1951: Renamed as Union Carbide India Ltd, a subsidiary of world wide multinational,

Union Carbide Corporation.

• 1958: Company set its torch manufacturing plant in Lucknow,one of the largest in

south Asia.

• 1959: Name of the company changed to Union Carbide India Limited.

• 1984: Bhopal disaster at Union Carbide India LTD plant in Bhopal.

The Bhopal Disaster took place in the early hours of the morning of December 3, 1984, in the

heart of the city of Bhopal in the Indian state of Madhya Pradesh. A Union Carbide

subsidiary pesticide plant released 40 tonnes of methyl isocyanate (MIC) gas, immediately

killing nearly 3,000 people and ultimately causing at least 15,000 to 22,000 total deaths.

Bhopal is frequently cited as one of the world's worst industrial disasters.[3] The International

Medical Commission on Bhopal was established in 1993 to respond to the disasters.

• 1995: Sale of shares of Union Carbide Corporation in Union Carbide India Ltd to Mc

Leod Russel (I) Ltd. belonging to the Williamson Magor Group and a new name -

Eveready Industries India Ltd (EIIL).

• 1996: Mc Leod Russel (India) Ltd, merged with EIIL, bulk tea business brought into

EIIL fold.

• 2000: Bishnauth Tea Company merged with Eveready Industries India Ltd.

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• 2005: Brand EVEREADY is a hundred years old.

• 2009: EIIL acquires controlling stake in Uniross SA of France, which is a leading

rechargeable battery manufacturer.[4]

Advertisement

DISTRIBUTION

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Eveready has a wide distribution network all over the country with 15 branches, 40 godowns

and 4,000 distributors. Our products are available at grocery, general provision, music,

electrical, hardware, stationery, gift /novelty stores, at the chemists’ shops and at photo

studios and printing centres. So much so, that many of our products are even available at the

paan and cigarette shops.

According to AC Nielsen, Eveready batteries are available in 3.3 million outlets out of a total

universe of 7.3 million FMCG outlets. The distribution structure extends coverage out to

5000-population villages.

The company employs a strong sales force so that they can operate the extensive sales

network successfully.

As Eveready walks ahead in second century of existence, we have the following objectives -

• To consolidate our benchmark supplier position in all traditional outlets for batteries

and flashlights.

• Employ a systematic and scientific approach towards increasing our reach and quality

of reach.

• To leverage our sales & distribution competencies into identified newer channels

• To service the outlets with a diversified range of products. This includes batteries,

flashlights, homelights, packet tea, mosquito repellents, CFLs and bulbs.

• To constantly explore new selling arrangements in identified markets to improve

effectiveness of servicing

RANGE OF EVEREADY ALKALINE BATTERIES

Alkaline Batteries

Eveready Ultima Alkaline battery is the ultimate energy solution to the power-hungry

electronic gadgets of modern times. It is undoubtedly a new benchmark of quality &

performance in the category of alkaline batteries. The promise of performance comes with an

affordable price tag, making it truly an ultimate choice.

Eveready Ultima Alkaline Batteries are best suited for power-hungry new age gadgets like:

• Digital cameras

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• Remote-controlled toys

• Certain MP3 players

• High-end portable audio-recording systems etc.

More variety of sizes in the Ultima range will be available very soon.

• AAA Alkaline - 2112

• AA Alkaline - 2115

• 9V Alkaline - 2116

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The time lag between the out flow and the inflow of fund has to be financed with permanent

working capital in order to meet the above mentioned current obligations.

Benefits of holding inventories:

Holding adequate level of inventories will help in smooth production and marketing

operations. The manufacturing and merchandising process do not function quickly. To

continue with smooth production there should have adequate level of raw materials, work-in-

progress and finished goods. In case of a manufacturing concern if it does not hold adequate

stock of raw materials, finished goods etc, the purchasing will take place only after they

receive the orders from their customers. This will definitely result in delay of execution of

orders that may transfer their patronage to some other suppliers. The specific benefit of

holding adequate inventory is as follows:

1. Avoid Loss of sales: EVEREADY POWER CELL have their customers

outside the state of Madhya Pradesh. They do not have many local customers.

Also most of the customers of EVEREADY POWER CELL are spread

internationally. If they do not have enough inventory holdings, it will result in

loss of their customers which further will result into loss of sales.

2. Quantity Discount: - The companies can avail enough quantity discounts if

they go for bulk purchase of raw materials and other inventories.

3. Reduce Order Cost: - The firms maintaining adequate inventories can also

achieve economies in ordering cost such as typing, checking, approving, and

mailing. If a firm places only a few large orders instead of placing many

individual small orders it can reduce the variable ordering cost associated with

individual orders.

4. Reduce the set up cost: - Maintenance of large inventories helps the firm in

bulk production results in reduced set up costs. But holding large inventory is

not considered as it creates an uncertainty in technology advancement and

change in economic condition.

5. Avoid Interruptions in Production: - Large inventories help in smooth

production as there is no difficulty /interruption in getting inventories. It will

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also help in meeting all the orders placed by its customers in time. It will help

them to capture more goodwill and will help in making more sales which will

automatically result in large profits.

Economies of holding inventories

Holding of inventories exposes the manufacturing concerns to number of risks and costs

like:-

Risk of holding Inventories: - Mainly there are three risks involved in holding huge

amount of inventories. First of all there is a risk of price decline due to increase in market

supply of the product, introduction of new product, price cutting by the revival firms etc.

Secondly, there is a risk of product deterioration, which may arise due to holding a product

for a too long period or careless storage. Lastly, the risk of obsolescence, which may arise

due to the change in customer’s taste, production technique, improvement in the product

design & specification etc.

Cost of holding inventories: The cost of holding inventories like material costs,

ordering cost and carrying cost etc will result a huge amount of expenditure which in case of

low demand of product became a huge loss to the firm.

Inventory control comprises of two major factors like quantity control and value

control. It is quantity control because they are concerned with physical control of inventories.

But it can be value control because it is concerned with the efficient management of funds in

inventories. The financial executives see that too much money is not invested in inventories

and every rupee spend in inventories is efficiently and effectively utilized. Keeping in view

the quantity control and value control, inventory control should meet these two conflicting

functions of (1) maintaining adequate inventories for efficient operations and (2) maintaining

an inventory level that is not detrimental financially. Accounting aspect and operational

aspect are the two aspects of inventory control. The accounting aspect is concerned with

maintaining documentary evidence of movements of inventory at every stage right from the

time of sales and production budgets are approved to point when inventories are purchased,

committed to production process and turned into finished goods. Operational aspect is

concerned with maintaining inventories supplies at a level so to ensure that inventories are

available for maintaining investment in inventories. The area of inventory management

includes or describes the aspects like:

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1. Determining the size of inventory to be carried.

2. Establishing timing schedules, procedures, and lot of sizes for new orders.

3. Co-ordinating sales, production and inventory policies.

4. Ascertaining minimum safety levels

5. Providing proper storage facilities

6. Arranging the receipts, disbursements and procurements of inventories and

developing forms of recording these transactions.

7. Assigning responsibilities for carrying out inventory control functions.

8. Providing the report necessary for supervising the overall activity

Objectives of studying the inventory management of the selected public sector

manufacturing units are:

• To know whether they are procuring right quantity of inventories at right

prices and of right quantity.

• To know whether they are over invested in inventories.

• To know whether the inventories are underinvested or not.

The first and foremost objective of inventory management is to ensure continuous

supply of materials so that production is not held up for need of materials. Maintenance of

adequate inventories reduce inter dependence among various stages of operation. It permits

the manufacturing operations to continue smoothly without interruptions resulting from days

in supplies, whereas work-in-progress inventories allow production process to proceed

uninterrupted because of a temporary failure at a preceding stage in operations, the finished

goods inventories reduce the need of scheduling production according to the sales orders.

Another objective of inventory management is to derive the most efficient utilization

of the installed production facilities.

By inventory management one can exercise control over production and purchase

levels. Maintenance of adequate inventories allows a firm in making long production runs

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and reducing the set up costs associated with each run. Production can proceed at a uniform

rate when sales are slack, and can be released when demand picks up. The firm may purchase

inventories in economic lot sizes so that the overall cost of production is minimized.

Production variations can also be avoided through proper control over inventories. Inventory

management ensures continuous production despite fluctuations in sales. Since production is

based on sales forecasts which are seldom perfectly accurate, it has to be properly planned in

order to continue the production. When there is a difference between actual sales and

budgeted sales, inventories of finished goods are allowed to accumulate. Sales in excess of

anticipated demand are met by drawing from these accumulated inventories. This helps in

avoiding dislocations caused by rush orders. Through Inventory management an organization

can minimize the wastage of materials in the course of purchasing, storing and production.

By making prompt execution of orders of customers a firm can give efficient service to

customers. So through inventory management optimum level of inventories can be

maintained at all levels of operating cycle. Through the financial objective of inventory

management the financial manager can utilize the capital effectively to set up the maximum

and minimum levels of stocks to avoid deficiency or surplus of stock position. One of the

main objectives of inventory management is to minimize the carrying cost which comprises

of the expenses for storing, insurance, storage and cost of funds tied up in inventories.

Efficient management of inventories attempts to avail economies in purchasing raw materials,

supplies etc. Minimizing the risk of loss due to price decline, product deterioration and

obsolescence between the time of purchase and the time of sale are also an important

objective of inventory control.

Since inventories constitute the most important or significant part of a firm’s total

working capital, it is the major component in working capital of a firm. An analysis of a large

number public and private enterprises in India reveals that inventories account for nearly 60%

of cost of production or investment in current assets. In case of agricultural industries, the

percentage of investment in inventories ranges between 60 to 65 percent of the total

investment in current assets. But in cotton, yarn, fabrications etc. inventories amount for

more than 65 percent of the total investments in current assets. Thus a large part of working

capital of a firm is invested in inventories. A very good management of inventory is good

financial management. An effective inventory management contributes to an effective

material management. To manage adequate working capital in a firm, it is better to manage

its inventory efficiently. It is often said that more firms fall on account of absurd and

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inefficient inventory management than for any other reason. The central point of inventory

management is to avoid over investment or under investment in inventories and to maintain

inventories at the optimum level for maximum profits.

It is very essential to have centralized purchasing for a good inventory control system.

Purchasing is the most important aspects of inventory management as a substantial part of

firm’s finance is committed to materials inventories which affect the cash flow position of the

firm. An efficient and effective stores control is also essential for a good inventory control

system. The investments in materials constitute a major portion of current assets and

represent an equal amount of cash. The usual inventories maintained by a firm include raw

materials work-in-progress and finished goods. Each of these major categories may have a

number of such divisions. In order to facilitate prompt recording, locating and dealings each

item of inventory must be assigned a particular code for proper identification. Inventories in

stores are classified either on the basis of their nature or on the basis of their usage. For the

purpose of selective control on materials, ABC classification of inventories is very useful for

the manufacturing firms. Standardization and simplification of materials is an important

consideration of an efficient inventory system.

Adequate storage and handling facilities, adequate inventory records and reports and

efficient staffs to maintain the records and other establishment records are very necessary for

a good inventory control system.

There are three main methods of inventory control. They are determination of

economic order quantity, re-order level and ABC analysis. Perpetual inventory system is a

system of records maintained by the controlling department, which reflects the physical

movements of stocks and their current balance. This system is based on bin cards and stores

ledger as they make a record of the physical movements of stocks and also reflect the balance

in the stores. This system of inventory control facilitates regular physical checking of stocks

without closing down the work for stock taking. The perpetual inventory control system helps

in avoiding over stocking and under stocking of inventories, and serves as continuous system

of internal check against abnormal loss or wastage. It enables the Inventory as one of the

most important components of working capital and its proper management cannot be under

stressed. Fundamentally, inventory consists of raw material, work in progress and finished

goods. The proportion of inventories to fixed assets is quite high ranging from 25% to 45% in

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the manufacturing sector (in cement it is around 25%). Hence inventory management is

crucial for all managers irrespective of functional specialization. Since a number of industrial

relations disputes in manufacturing industries are linked to production bonus and incentives

relating to inventory irrespective of the market need for inventory, the HR Manager must

understand this point well. Every member of the organization feels its impact and yet scant

respect is paid to it. This is most unfortunate. A serious study of sick companies will support

this contention. Hence those managers who are involved with Strategic HR should take note

of some of these important criteria for insuring proper management.

1. Maintaining a proper level of stock

2. ABC analysis to control high value items more intensively as compared to low

value items.

3 Proper ordering policies.

4. Pricing of raw material work in progress and finished goods

5. Control over wastage and obsolescence.

Further research by industrial economists sheds light on some practices adopted by

various industries, which are shown through extracts from their balance sheets. Here is a

quick glance at some of these important indicators. Management has to keep the investment

in inventories under control and minimize the carrying costs.

Major Inventory Ratios

• Inventory Turnover Ratio =(Cost of materials consumed/Cost of average

inventory)

Where average inventory = (opening inventory + closing inventory)

2

This ratio indicates the liquidity of inventory. It explains whether investment in

inventories is within proper limits or not. This ratio indicates the velocity with which stock

moves through the business. There is no fixed standard for inventory turnover as it depends

greatly on nature of industry and on the sales policies followed by the firm. For assessing the

adequacy of the quantum of capital investment in inventory and its justification, this ratio

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should be compared with other such ratios at industry or firm level. A high inventory

turnover ratio indicates brisk sales and sound marketing efficiency of the firm. A low

inventory turnover ratio indicates blockage of funds in inventory resulting from slump in the

business or over investment in stock, or piling up of stock just to take the advantage of

expected rise in selling price or to meet the estimated rise in future sales, or incorrect or

improper valuation of stock. Too high inventory turnover ratio indicates that the firm is

operating with low margin of profit and vice-versa. It is, however, symptom of over-trading.

It is not possible to establish a standard ratio of inventory because it will differ from

industry to industry. But the following general rules can be taken into consideration for the

judgment of inventory turnover ratio.

1. The raw material should not exceed 2 or 4 months’ consumption of the year.

2. The finished goods should not exceed 2 to 3 months’ sales

3. Work in progress should not exceed 15 to 30 days’ sales.

• Work in Progress Turnover Ratio = Cost of completed work/Average

stock of WIP

For control purpose it is essential to complete the turnover rate of different items of

inventory so that to identify its slow moving inventories and avoid excessive investment of

funds in such items. Also it helps in identifying the fast moving inventories, slow moving

inventories and dormant inventories. Fast moving inventories need a high level of stock, slow

moving inventories have a low inventory turnover ratio and since the dormant inventories are

seldom demanded and that is why they need a very low stock holding. Obsolete inventories

are which no more in demand. So that it should be disposed off immediately to avoid

carrying cost.

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• Inventory to Working Capital Ratio

The inventory to working capital ratio shows the relationship between the investment

in the inventories and the net investment in the working capital. Every business organization

should have sufficient working capital for the day-to-day running of the business. Since the

inventory has a direct relationship with working capital its increase or decrease directly

affects the working capital of the business. The value of inventory is always unpredictable

due to the unexpected changes in the market condition, price fluxuation and other factors.

Normally a low rate is considered to be good as it express the sound financial condition of the

business.

• Inventory to Current Assets Ratio

The net working capital is directly related with the changes in the current assets. If the

current assets increase the working capital also increases. So the components of working

capital play an important role. While studying the working capital position of a firm it is very

important to see the different components of working capital. Since inventory plays a vital

role in the total current assets it is necessary to see the inventory position in the total current

assets. Normally less than 50% of current assets are treated as good inventory holdings in any

firm.

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OBJECTIVES OF

THE TRAINING

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OBJECTIVES OF THE TRAINING

Objectives of Inventory Management

Inventory management is the prime management when we talk about Working Capital

Management. Since the role of inventory in maintaining and determining the liquidity is

much important, it should be given prime attention in the management of working capital.

To know whether stocks are available or not in the selected units when they are

needed

• To know whether the Eveready Power Cell are meeting the best policy of

“Neither to over stocks nor to run out”

• To know the investment in inventories, inventory carrying cost and

obsolescence losses if any due to mismanagement of inventories in Eveready

Power Cell.

• To know whether there is any losses of material due to carelessness of

pilferage in Eveready Power Cell .

• To find out and bring down the inventory of Eveready Power Cell carrying

cost which is considerable.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Methodology

The research approach for this study was conclusive research. Conclusive

Research is designed to help executives to choose among various possible alternatives to

make a viable business decision. Further this research was of descriptive type, which is an

offshoot of conclusive research. The problem for this research was non-operating in

nature the data both primary and secondary data, the source was 50 respondents for primary

data. For the proper analysis of data simple Statistical techniques such as percentage were

use. It helped in making more accurate generalization from the data available.

Data Collection

Collect data from manger and other authorized executive of EVEREADY POWER CELL as

the secondary data.

Defining the Research Objectives

Defining the objective is often the most difficult step in the research process. A poorly

defined objective can lead to inappropriate research and a waste of valuable time and money.

Exploratory or preliminary research is often required to help define the issue to be

investigated. Sales figures from other markets indicated that their brand would appeal to

oneng people if the right marketing messages were created.

Defining the Research plan

Having defined the objective, Sprite then created a research plan to help gather the

information management needed. Market research information comes in the forms of Primary

and Secondary Data.

Primary Data is new information collected by a researcher specifically for the project in hand.

This data is often very expensive to gather and may vary in terms of quality

Secondary Data is information that already exists somewhere else, whether that is inside the

company or in an external source e.g. newspapers, magazines, the internet etc. Secondary

data is very useful for providing background knowledge to a problem and is used by most

companies as a starting point in a research process. The methodology needed to be in a

systematic process so as to come to a fruitful result so a project plan was prepared in order to

complete the project in time.

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LIMITATION OF THE STUDY

While completing this project there were certain limitations, which made this project more

challenging.

Meeting the concerned person and taking time was major constraint because of their

busy schedule.

Time was the major constraint.

The accuracy of indications given by the respondents may not be consider adequate

Tender system has been adopted to procure materials at the most

competitive rates. Three kinds of tenders are been followed by EVEREADY

POWER CELL. These are as follows

Open Tender

Limited Tender

Single Tender

Open tender

1. Open tender shall be restored to in such cases where adequate numbers of

approved vendors are not listed and/or procurement from limited tender is

considered not desirable. For this purpose all known sources shall be addressed

and/or press advertisement and /or publication on web site, this fact be also

advertised in the press.

2. Enquiry shall be treated, as an open tender if it is addressed to all approved

vendors, not less than six. In case of response from two/three vendors, the open

tender shall be treated as limited tender.

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Limited Tender

1. Limited tender would be addressed to at least three approved vendors. The

number of vendors to be addressed may be reduced, at the discretion of the head

of materials management/product manager incase where approved vendors are

not available.

2. In case of approved vendors are more than three and all are not addressed, care

should be taken that subsequent enquiry is addressed to the vendors on whom

earlier orders were placed and selection of other approved vendors is done by

rotation with the approval of next higher authority.

Single tender

The single tender route would be resorted to in exceptional cases. Single tender

may be invited from the approved vendors due to any of the following reasons duly

certified by the head of the indenting department.

a. Proprietary in nature

b. Purchase form collaborators or from there recommended vendors.

c. Customers contract requirements.

d. Urgency of requirements

e. Source standardization.

f. Educational and development orders.

g. Availability of partner/die/special tooling, with a single vendor.

h. Value of purchasing

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DESCRIPTION/ANALYSIS/

INTERPRETATION OF

THE STUDY

29 | P a g e

DESCRIPTION/ANALYSIS/INTERPRETATION OF THE STUDY

PURCHASE OF ITEM

Purchase of bought items can be of the following types.

Purchase as per performance Specification.

(i.e. as per supply Design/Technology).This is called

TYPE – X material.

Purchase as per EVEREADY POWER CELL design specification this can further

categorized into two parts.

Material is supplied by supplier but design and technology is given by

EVEREADY POWER CELL. This is called TYPE –Y material.

Material as well as design and technology is given by EVEREADY

POWER CELL. This is called TYPE –Z material.

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HOW TO MANAGE PRODUCT

PRODUCT MATERIAL DIRECTORY:-

Product Material Directory identifies the items along with the applicable purchase

specifications. This Would help in selecting the supplier in advance which meets to our

purchase specifications, so that once the indent is received only price can be obtained

from the suppliers; this would help in eliminate the time consumed in clarification on

technical matters which would greatly reduce the procurement time.

Product Material Directory identifies the quality control requirements of items as well as

supplier checks; even the procurement of new items would meet General Manager’s

approval. This will avoid the risk of procurement of items from outside sources.

Supplier Assessment System: -

Generally large firms like EVEREADY POWER CELL have needed the suppliers

because it does not manufacture all the items required for competition of its products

economically by utilizing the capabilities of suppliers it add overall value to our

equipments to meet ultimate need of the customer.

The system aims to select reliable suppliers and differentiate between quality

conscious professionals from those who are in the business for profit alone. The system

weed out such suppliers at initial stage itself, otherwise entry of such suppliers in

EVEREADY POWER CELL family would pose a serious problem like delaying and

substandard suppliers, contractual litigation, unrealistic price etc, which would consume

most of our product time. Thus the system aims to check supplier’s materials non-

conformance and reliability at entry stage.

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The process of source selection: -

The process of suppliers selection can be categorized in the following stages.

Information stage: -

The information about supplier is received in Supplier Development Cell

(SDC) through following channel.

Supplier approach directly

Information received through various disciplines of organization such as

Engg/MM/technology etc.

Through business catalog/exhibitions/Seminars/Electronics media etc.

Press tenders

Assessment stage

Based on the details furnished by supplier the MISCC would receive the same and

convey their comments to SDC. It is mandatory to assess the indigenous supplier for

critical Y & Z category of items by visiting the supplier’s work. Minimum two trained

and certified assessors shall assess the suppliers on the basis of documents

assessment/Site visit.

The MISCC after scrutiny may come to any of the following conclusion .

Supplier is not up to the mark or there are sufficient suppliers and adding a new supplier

would not five any benefit to EVEREADY POWER CELL the SDC intimate the

supplier.

Supplier can be considered but assessment is required by visiting the firm.

suppliers can be considered for trail code based on the details furnished.

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Enlistment Stage

Based on the Suggestions of the MISCC the matter shall be put up for consideration of

enlistment of suppliers to apex body of unit termed as UNIT SUPPLIER REVIEW

COMMITTEE (USRC) which will decide about the enlistment of status of the supplier.

The supplier will be assessed on organization soundness, quality system and technical

competence.

SUPPLIER ENLISTMENT PROCEDURE

Supplier enlistment is the most important activity of material management

function This is the entry point for supplier in EVEREADY POWER CELL family. A

carefully chosen supplier will be an asset to the organization and an error of judgment

may create a problem for EVEREADY POWER CELL. Hence the decision to enlist a

supplier shall be entrusted to an apex body at unit called as UNIT SUPPLIER REVIEW

COMMITTEE. The members of the USRC

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Members of Unit Supplier Review Committee

Chairman

Product

Material Head

Head BOI

Quality

Head Purchase

Finance

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Functional

Head

Head–Sub

ContractingConvener

TYPES OF REGISTRATION

Considering the total business operations of Eveready Power Cell involving purchase of

raw material / components /capital equipment from different types of business

organization like manufacture /authorized stockiest/agents. Following categories of

enlistment are recommended

1) One time

For item procured rarely like spares of machine tool and equipment, a one time code will

be allotted against which only one order is permitted and supplier performance rating is

not mandatory.

2) Development code

To establish /develop supplier three orders shall be permitted against trail code against

particular material category. However in exceptional cases more than three orders can be

allowed with permission of General Manager.

3) Permanent code

Where supplier establishes himself after successful completion of trail order against

particular material category. The supplier performance rating shall be reviewed against

trail orders and decision to allot permanent code will be taken by USRC considering

performance rating.

SUSPENSION OF BUSINESS DEALING WITH SUPPLIER

Hold on supplier

If supplier after evolution on performance rating fall under ‘C’ category he will be put

under ‘hold’ and no enquiry will be issued to him for particular category.

If a supplier fails or neglects to respond against three consecutive tenders for a particular

material category .

Delisting of suppliers

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1. No longer has the technical staff, equipment or financial resources,

identified at the time of enlistment

2. Fails to abide the condition of enlistment.

3. Persistently violates or circumvents important condition of the

contract.

4. Fails to submit statutory documents as and when required.

Banning / Black listing

1. If the supplier declared bankrupt, insolvent ,wound up , dissolved or

portioned .

2. If the supplier violates or circumvents the provision of labour

laws/rules and regulations.

3. If suppliers or his partners /representative are found indulging in

malpractices/ fraud.

HOW TO MANAGE STORE

PRICE STORE LEDGER

In EVEREADY POWER CELL. price store ledger (PSL) or stock ledger are classified

according to value and quantity. There are to type of stock are:

(1) Raw material is composed of direct materials and it come under prime cost.

(2) Spare is composed of indirect materials and it come under overheads.

Price store ledgers are not maintained for non- stock items. These items include

Directly Changeable items

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Stationery Items

Medicines and allied stores stocked in company hospitals/dispensaries.

Departmental wise store ledger is maintained and each material has given a

separate code. To maintain material code wise, quantity and value accounts and value

accounts of various receipts

Materials are classified into two.

Non-moving.

Slow –moving.

1. Non-moving materials refers to a materials for which no issue has taken place

during the preceding financial year.

2. Slow moving materials are the materials for which the cumulative issue

during the preceding financial years is less then 50% of the average stock of

that year. Average stock

of this purpose by is defined as:

Opening stock + Closing stock

2

STORE RECORDS

Two set of records are often maintained in EVEREADY POWER CELL. for

materials issue, materials received and transferred. They are:

BIN CARD.

STORE CARD.

BIN CARD

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Bin Card is maintained department wise. Bin card is used by storekeeper to

keep quantitative records of all the items, of materials and goods in his store. This

documents maintained by the storekeeper. A bin card is used for each material and

receipt, issue or return is recorded in this card.

STORE CARD

In EVEREADY POWER CELL the Store Card is maintained monthly wise. It

is kept in the costing store ledger. The store ledger is generally maintained in the form

of loose-leaf cards, because they can be removed and inserted easily.

MAJOR DOCUMENT RECEIVED

The mammoth organization like EVEREADY POWER CELL where it has to

control and fulfill a number of suppliers .For regulating the payment of the supplier’s

claims, the stores account section of EVEREADY POWER CELL receives the

following documents:

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Difference between Bin Card and Stores Ledger.

BINCARD STORE LEDGER

It is maintain by the Storekeeper

Department.

It contains only quantitative details of

materials received, issued and returned.

Entries are made when transaction take

place.

Store ledger is maintained by

Costing department.

It contains both quantity and value.

It is always posted after Transaction.

Purchase orders:

Purchase order is an order placed on the suppliers for supply of specified

quantity of specific material at a specified rate in accordance with the terms and

condition spelt out in the order. The purchase order contains the following essential

information:

1) Name of the supplier.

2) Description of the material.

3) Unit of measurement.

4) Quality to be supplied.

5) Rate at which the supply is to be made.

6) Terms of delivery.

7) Destination and mode of transport.

8) Terms of payment.

9) Import license number, date and validity period.

10) Test certificate, insurance, compensation delay supply.

Store Receipt Voucher:

Store receipts vouchers are a document through which the receipt of the

materials by their stores department and their acceptance is communicated to the store

account section and other departments. This document is called inspection cum

receiving report in Hyderabad division. The concerned receipt cell of store department

raises this document after receipt of material from the clearance section. There will be

one SRV for each consignment of a purchase order. This document will also be raised

when ever materials issued on loan are returned by the out side parties and received

by the stores department. PSL will be maintained only in the unit of issue by the

stores department.

The stores receipt voucher contains the following information:

a. Ward/section from which the store receipt voucher is issued or where the

stores are to be stocked ultimately.

b. Name of the supplier.

39 | P a g e

c. Challan number and date.

d. Purchase order number and date.

e. Name of the indenter.

f. Name of the slip.

g. Bill of landing number and data.

h. Description of the material with material code number.

i. Unit of measurement.

j. Quantity supplied.

k. Quantity accepted and quantity rejected.

l. Bin card balance.

m. Railway/lorry freight particular.

n. Other like postage

Supplier’s Bill:

This is the document commercially recognized and presented by a supplier for

the settlement of his claim for the supplier made/services rendered or to be

made/rendered

Stores Return Note

This document would be raised while materials are returned to stores of both

direct and indirect material.

Sub Contract Return Note

The sub-contract department EVEREADY POWER CELL raises Sub

Contract Return Note document whenever sub contractor returns materials. This

document will not be used in case of finished/ semi finish and work done by sub

contractor.

Scrap Delivery Note

The concerned department when delivering scrap to the concerned holding cell

of the store department would raise this document.

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Material Requisition Slip

This document would be prepared to authorize a shop/work center to draw the

required materials from the concerned holding cell. Shop planning section will

arrange to present material requisition slips to the holding cell and get the material

delivered at the required work center prior to the planned start of manufacture.

Stores Transfer Voucher

If a material is to be transferred from one holding cell to another, the material-

planning department would raises this voucher.

Inter unit Transfer

This document is raised by the material planning department to authorize issue and

dispatch of required material towards sister division.

INVENTORY CONTROL TECHNIQUES

ABC Analysis

This is also referred to as “Always Better Control” or the alphabetical approach.

ABC concept of classifying foods in an inventory is very commonly used for exercising

effective inventory control. Under this technique items in inventory are classified

according to value of usage. The higher value items have lower cost of safety stocks

because the protection is very high with respect to higher value items. The lower value

items carrying high safety stock.

The annual consumption analysis of the organization would indicate that a handful of

top high value items les than 10% of total number would account for a substantial portion of

about 75% of total value. These items are under ‘A’ category. Similarly large number of

bottom line items account for about 55% of total quantity for only 10% of consumption value

are categorized as C Category. The items lying in between the two are called B Category.

These techniques help to exercise selective control, that is , more attention is given

only to less number of items, where a large amount of capital is blocked. So that less amount

of cost is required for large amount of inventory

ECONOMIC OREDER QUANTITY

41 | P a g e

Economic Order quantity is referred to as he size of the order that gives

maximum economy in purchasing the materials. In fact the EOQ offers solution to

inventory problems. It helps in finding appropriate levels of holding inventories. It

facilitates the fixation of ordering sequence and the quantities so as to minimize the

total materials cost. It should take into account all the factors, which influence

adversely he adequacy of inventory and its consequent costs. An inadequate inventory

reduces it to the extent to which it ensures smooth and efficient operation of the

material dept as well as that of he whole organization.

The costs, which influence the EOQ, may broadly be classified into two

categories from ‘Cost management’ point of view. The categories are

1. The Cost of Acquiring materials that include the ordering cost, inadequate inventory

cost.

2. Cost of Holding the material that includes the inventory carrying cost.

The Formula

EOQ = SQRT( (2Q*Cp) / Sc)

Where

EOQ represents Economic Order Quantity Q represents Quantity of Units purchased in a given period (the period is generally a year) Cp represents Cost of placing an order, and Sc represents Storage Cost per unit per year.

Ordering Cost

It includes all the costs of procurement for a particular item of material. It’s the same

for any order placed for that item, irrespective of quantity. It includes

Time spent in preparing bid requests.

Evaluating cost estimates submitted by the suppliers

Clerical expenses for purchasing the purchase orders

Telephone costs to discuss delivery arrangements

42 | P a g e

Percentage of purchasing department overhead

Administrative salary to be charged against a particular order.

Carrying Costs

The Carrying Costs includes all the costs associated with carrying an

inventory. It includes

Storage facilities

Shipping & receiving

Warehousing operations

Security measures

Tax & Insurance

Interest expenses of capital

Cost of Obsolescence

Cost of Deterioration or Spoilage of Stored Material

Inventory Report To Management

The main purpose of this report is to inform the management with the latest

stock position of different items. This report should contain all information also

necessary for managerial action. On the basis of these reports management rakes

corrective action wherever necessary. The more frequently these reports are prepared

the less will be the chances of lapse in the administration of inventories. EVEREADY

POWER CELL usually prepare monthly reports and each store maintains separate

inventory reports.

Essential Features Of Good Report

Proper title

Name Of Raw material

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Quantity Remaining

Cost of that Product

Duration

New Purchase

VALUATION OF INVENTORY

If management is interested to show more profits then it can choose such a method

which will show more stock or vice versa.

The following methods for pricing material issues are generally used.

First In First Out method

In this FIFO method the materials, which are received first are issued first. The materials

are issued in chronological order. This method is suitable when prices are falling because

material issues will be priced at earlier figures while costs of replacements will be low.

Last In First Out Method

In this LIFO method he last received materials are issued first. This method is

also known as replacement cost methods because the latest purchased goods will

correspond to he current price except that goods were not purchased much earlier.

LIFO method is suitable during rising prices because goods will be issued from the

latest received lots at prices, which are closely related to current market price

Average Cost Method

In average cost method of pricing all materials in stock are mixed that

a price base on all lots is formed. It may be of two types.

1. Simple Average Cost Method:

In this the prices of all lots in stock are averaged and the materials are

issued on that average price.

44 | P a g e

2. Weighted Average Cost method:

In this method the total cost of all the materials are divided by the total

number of items in stock. This method recover the whole cost of materials. This

method is suitable when price fluctuations are frequently changed.

Base Stock Method

In this method some quantity of materials is assumed to be necessary

for keeping he concern going. The quantity is not issued unless otherwise there is

an emergency. This material, which is not issued as is kept in stock, is known as

base stock. This method is not an independent method. It is used along with some

other method such as FIFO, LIFO, and Average Cost Method etc.

Standard Price Method

The issue price of material is predetermined of estimated in this method.

The standard price base on market conditions, usage rate, storage facilities etc.

The materials are priced at standard price irrespective of price paid for various

purchases.

Market Price Method

In the market price method the price charged to production are not costs

incurred on the materials but latest market prices. The market prices may either

be realizable prices or replacement prices. The replacement prices are use for

the materials, which are kept in stock for use in production, and realizable prices

are used for the goods kept for resale. But this method of pricing is not been used

because of the number difficulties existed in it. It becomes difficult to select the

market price method because different prices are prevail in different markets

45 | P a g e

OBSERVATION AND FINDINGS

We should give special attention on material consumption.

The purchase of material should be economical.

Material management department should be active regarding decision making.

The scrap percentages of material should be reduced.

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CONCLUSION

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CONCLUSION

EVEREADY POWER CELL is maintaining Product Material Directory which is a

control document which facilitates the planning process of material thereby reduces

procurement time, non-conformities, Contractual litigation. This document is prepared

by a Committee consisting Engineering/Technology/Quality.

Control/Manufacturing/Material Management which identifies the items to be processed

and corresponding supplier list. Material management will have sufficient time to work

out the procurement strategy.

The value of materials has a direct bearing on the income of a concern, so it is necessary that

a method of pricing materials should e such that it gives a realistic value of stocks. The firms

follow the traditional method of valuing materials ‘Cost Price or Market Price whichever is

less’. But there are different methods of pricing material give different values.

Open tender through press advertisement and/or publication in the web site of the

unit/company may be resorted to for enlisting of vendors for further qualification.

Database regarding potential vendors has to be built up on the basis of past experience,

catalogues, product directories, advertisement in the newspaper and professional

journals.

48 | P a g e

Suggestions

• The capacity of all plants should be increased for better utilization of

resources.

The sheer scale and range of their operations ensure a place in any major

expansion of power generation capacity. Fears of a sharp increase in the price

of power generated by private power companies have made the government

replace the earlier policy of negotiated power projects, which allowed cost-

plus pricing of electricity, with a policy that is based on competitive bidding.

• Adopting different management methods should increase order procurement.

Project engineering management (pem) division is eveready power cell's

power plant 'system integrator' providing total engineering solutions for

power projects as well as procurement and erection & commissioning of

non-eveready power cell systems & equipment for thermal power stations,

thereby enabling eveready power cell to offer complete engineering,

procurement and construction (epc) services

• Financial management in overall power sector should be revised to increase

the financial condition of Eveready power cell.

• Eveready power cell should look for other related Eveready power cell

activities like production of thruster controlled series capacitors, traction

transformer and solid core insulators for railways etc.

• Adopting different production, management and financial methods should

increase export orders. Finished goods in plant and work in progress involving

hydro and thermal sets including gas based power plants, boilers, boiler

auxiliaries, compressors and

Industrial turbo sets are valued at actual/estimated factory cost or at 97.5% of the

realizable value, whichever is lower.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Books:

1. Sharma & Gupta, (2007)Financial Management,Kalyan Publication, New Delhi.

2. Pandey, I.M. (2007) Management Accounting, Vikas Publishing House, New Delhi

3. Khan My & Jain, P.K., (2008) Financial management, Tata McGraw-Hill

Publishing company, New Delhi.

4. Chandra,Prasanna (2008) Financial Management,Tata Mc Graw-Hill Publishing

Company, New Delhi

5. Kothari,C.R. (2008)Research Methodology, New Age International Publishers

6. Sharma R.K & Gupta Shashi K; "Management accounting-principles and practice.

eight edition, kalyani publisher's New Delhi.

7. Bhalla V.K"fmancial management and policy", first edition, annual

publications, New Delhi.

8. Maheshwari S.N ;"Management accounting and financial control", thirteen edition,

sultan chand & sons, New Delhi(2002).

9. Kothari C.R;"Research methodology-methods & techniques", second edition,

vishwa prakashan Delhi(1990).

10. Gupta Sunita, Management of Working CapitaI,First Edition.New Century

Publications,New Delhi(2003).

11. Chandra Prasana, Financial Management, TMH, 4th Edition, 1997, New Delhi

12. Gupta S.P., Management Accounting, Sahitya Bhawan Pub.,2002.

13. Khan & Jain, Financial Mnaagement, MH 3rd Edition, 1999.

14. Sharma R.K. & Gupta S.K.; Financial Management Kalyani Publishers, New Delhi

2003.

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15. Pandey I.M., Financial Management,Seventh Edition,Vikas Publishing House, New

Delhi.

Journal

John Sagan, “Towards a Theory of Working Capital Management,” The Journal of

Finance, May 1955 pp. 121-129.

J.M. Warren and J.P. Shelton, “A Simultaneous Equation Approach to Financial

Planning,” Journal of Finance, Volume 26, December 1976, pp. 1123-1142.

V. Appavadhanulu, “Working Capital and Choice of Techniques,” Indian Economic

Journal, July-Sept. 1971, Vol. XIX, pp. 34-41.

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