PREFACE

The prime objective of doing this industrial training project work was to understand
organization as to how various departments within an organization works and to apply the
theoretical concepts to real life professional experience.
As the part of academic curriculum I was supposed to undergo this assignment to bridge the gap
between knowledge and practical aspects.
After the semester 2, University Exams , we are supposed to undergo summer training in the
company for 8 weeks. I have taken my summer training at PALM GREENS CLUB. . I have to
select the Specialization under which particular topic is selected and on which data is gathered
and analyzed. And so I have taken FINANCE Specialization and

done Inventory

Management as my primary study for PALM GREENS CLUB . I also collected general
information of PALM GREENS CLUB i.e. related to industry functional departments etc.
This report include study of various departmental role and functions within the organization.
Further study of this report will help readers to understand working of various department of
PALM GREENS CLUB.
I thankful to all those who have helped in one way or other in the preparation of the project.
Valuable suggestion of readers for further improvement of the report shall be highly appreciated.

ACKNOWLEDEGEMENT
At this gratifying moment of completion of my project, I feel obliged to record my gratitude to
those who have help me.
I begin by extending my thanks to PALM GREENS CLUB Where I did the project . My
special thanks to Mr. PARAS DIXIT(CEO) ,who granted my permission to undergo my summer
training in PALM GREENS CLUB . Than after my sincere thanks goes to Mrs. Nirali (Finance
manager) who was very co-operative and offered his help whenever required , instead of his
busy schedules. I had completed my project under the very special guidance of both of them.
I feel immense pleasure in expressing my deep sense of respect and indebtedness to my guide
ASST. PROF. SHNEHA PAREKH (faculty ) , R.H.PATEL INSTITUTE OF MANAGEMENT
for her invaluable, talented and inspiring guidance , planning, constructive criticism and
encouragement throughout the course of investigation and preparation of this dissertation.
I would also like to thanks each and everyone working for the Finance department who have
helping me in preparing the project.

DECLARATION

I, Jyoti R. Parmar, hereby declare that the report on Summer Training project entitled for
Inventory management is a result of my own work and my indebtedness to other work
publication, if any , have been duly acknowledged.
Place:
Date:

Jyoti R. Parmar

EXECUTIVE SUMMARY

The project report based on summer internship training is as per the syllabus prescribed by the
university & institute for student . Overall, the report deals with the functioning of the company,
its day to day way of administration & financial management of the company as a whole.
I have prepared my summer training report Of PALM GEENS CLUB, The data of company for
the period from 2008 to 2013 used in this study have been taken from the annual reports the
company.
General Information :- In the overview of company it is divided in to six section namely
about the company, general profile , mission & vision ,&history &development , organizational
structure. PALM GEENS CLUB .
Thereafter , I have given overview of Functional Departments of PALM GREENS CLUB, H.R.,
& Finance . Company also takes various Quality assurance Measures, it has been its own quality
policy of being committed to the goal of High quality.
Inventory control is the process whereby investment in materials and parts carried in stock is
regulated within predetermined limits set in accordance with inventory policy established by the
management.
In modern competitive one of the burning problem of every business and industries that of cost
control and cost reduction. An all pervasive effort for cost control and cost reduction is of
paramount, importance for survival and growth of every industrial enterprises. This is why
inventory management as a scientific device for controlling inventory cost and eliminating
wastage, is now regarded as an integral part of industrial management , inventory management
does not involve any human factor, as it concerns itself not with men but with inventory.
It is one the widely used techniques for the control of inventory. Objective of ABC control is to
vary the expenses associated with maintaining appropriate control according to the potential
savings associated with the proper level of such a control. A many account for more than half the

total value usage in the inventory these items required very careful management and special
careful estimates of future usually class C items which in total account for only a few percent of
the total value usage very little effort should be devoted to forcast the requirement of items The
inter mediate class b items justify a reasonable but routine effort in forecasting demands and
managing inventory.
The basis for my study is the theory related to inventory , the theory collected is as follows
meaning and definition of inventory , objective & significant of inventory and techniques of
inventory and also what are the benefits derived to company by holding inventory.

Inventory Management of PALM GEENS CLUB

Financial Management is concerned with the duties of the finical manager in the business
firm. Financial managers actively manage the financial affairs of any type of business,
namely financial and non-financial, private and public, large and small, profit seeking and
non-profit. They perform such varied task, as budgeting, financial forecasting, cash
management, credit administration, investment analysis, funds management and
inventory management.
A term inventory refers to the stock file of the products a firm is offering for sale and the
components that make up the product. In other words, inventory is composed of assets
that will be showed in future in the normal course of the business operations.
The assets which firms store as inventory in anticipation of need are:

Raw materials
Work in process (Semi Finished goods)_
Finished goods

The raw material inventory contains item that are purchased by the firm from other and
are converted into finished goods through the manufacturing (production) process. They

are an important input of the final product. The working process inventory consists of
items currently being used in the production process.
They are normally semi finished goods that are at various stages of production in a
multistage production process. A finished goods represented final or completed products
which are available for sale .The inventory of such goods consists of items that have been
produced but are yet be sold.
Inventory, as a current asset, differs from other current assets because only financial
managers are not involved. Rather all the functional areas, finance, marketing,
production, and purchasing are involved. The views concerning the appropriate level of
inventory would differ among the different functional areas.
The job of the financial manger is to reconcile the conflicting view points of the various
functional areas regarding the maximizing the owners wealth. Thus, inventory
management, like the management of other current assets , should be related to the
overall objective of the firm. It is in this context that the present chapter is devoted to the
main elements of inventory management from the view point of financial management.
The objective of inventory management is explained in some detail sections. Section two
is concerned with inventory management techniques. Attention is given here to basic
concepts relevant to the management and control of inventory.
One of the main areas of the project is the analysis part, where the data are analyzed &
interpreted, to find out how the inventories were managed. Some of the tools used in inventory
are regarding to:
Economic Order Quantity
Safety Stock
Reorder level
Inventory turnover ratio
Inventory conversion period
Raw material turnover ratio
Raw material conversion period
Work-in process turnover ratio
Work-in-process conversion period

 Finished goods turnover ratio

Finished goods conversion period

ANNEXTURE

Nu

BALANCE SHEET OF BEEPEE COATING PVT LTD

Mar13
Mar12
Mar11
Mar10
Particular

Mar0
9

Equity liability
1.

2.
3.

Sources of funds
Total share capital
Equity share capital
Share application money
Preference share capital
Reserves
Revaluation on reserves
Net worth
Secured Loans
Unsecured Loans
Total debt
Total liabilities

69.26
69.26
0.00
0.00
915.17
0.00
984.43
147.68
155.34
303.02
1,287.4
5

69.20
69.20
0.00
0.00
775.40
0.90
845.50
71.80
98.00
169.80
1,015.3
0

69.21
69.21
0.88
0.00
651.99
0.93
723.01
78.53
0.03
78.56
801.57

69.21
69.21
0.00
0.00
556.04
0.98
626.23
24.41
0.05
24.46
650.69

63.77
63.77
9.90
0.00
350.37
1.09
425.13
78.00
0.06
78.06
503.19

601.98
280.30

518.80
246.80

419.49
215.33

371.74
186.15

322.68
160.37

321.68
171.23
90.58
576.91
324.55
222.54
1,124.0
0
131.34
0.00
1,255.3
4
0.00
469.91
81.47
551.38

272.00
98.60
79.60
513.90
305.00
19.00
837.90

204.16
76.79
117.59
403.92
240.29
28.95
673.16

185.59
31.60
170.20
299.33
204.73
25.99
530.05

162.31
18.82
29.52
266.33
180.38
23.96
470.67

67.10
157.40
1,062.4
0
0.00
433.30
64.00
497.30

55.62
93.98
822.76

50.58
11.57
592.20

61.60
7.91
540.18

0.00
375.71
44.01
419.72

0.00
276.31
52.59
328.90

0.00
219.89
27.74
292.55

ASSETS
1.

2.
3.

Application of funds
Gross block
Less : Accumulation of
depreciation
Net block
Capital working progress
Investment
Inventories
Sundry debtors
Cash and bank balance
Total current assets
Loans and advances
Fixed deposit
Total current assets loans
and advances
Differed credit
Current liabilities
Provisions
Total current liabilities &

4.

provisions
Net current assets
Miscellaneous expenses
Total assets

403.04
0.00
801.58

263.30
0.00
650.69

292.55
0.00
503.20

84.11
20.84

49.30
18.07

34.44
12.99

BEEPEE COATING PVT LTD PROFIT&LOSS A/C

Mar13
Mar12
Mar11
Mar10
Particular

Mar09

Contingent liabilities
Book value (R.s)

Nu
1.

Income
Sales Turnover
Excise duty
Net sales
Other income
Stock adjustments
Total income

2.

Expenditure
Raw Materials
Power & Fuel cost
Employee cost
Other manufacturing
expenses
Selling and admin
expenses
Miscellaneous expenses
Preoperative exp
capitalized
Total expenses

3.

Operating profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off

703.96
0.00
1,287.4
5
462.29
28.43

565.10
0.00
1,015.3
0
424.10
24.40

3,024.2
1
0.00
3,024.2
1
30.76
41.49
3,096.4
6

2,901.2
0
251.30
2,649.9
0
22.60
85.40
2,757.9
0

2,288.35 1,822.4
2
203.12
135.76
2,085.23 1,686.6
6
40.28
24.22
68.49
10.45
2,194.00 1,721.3
3

1,688.6
6
177.70
1,510.9
6
25.64
14.16
1,550.7
6

1,919.9
3
28.04
139.96
0.00

1,787.3
0
25.10
121.10
29.80

1,400.83 1,093.3
0
22.61
17.86
107.97
90.12
27.82
23.42

1,027.6
4
17.18
77.21
20.50

0.00

433.70

341.03

263.06

224.84

641.45
0.00

57.00
0.00

40.49
0.00

33.02
0.00

30.33
0.00

2,729.3
8
336.32
367.08
27.67
339.41
46.28
0.00

2,454.0
0
281.30
303.90
18.10
285.80
37.60
0.00

1,940.75 1,520.7
8
212.97
176.33
253.25
200.55
12.18
4.75
241.07
195.80
29.98
26.41
0.00
0.00

1,397.7
0
127.42
153.06
15.33
137.73
20.40
0.00

4.

Profit Before Tax

Extra ordinary items
PBT (Post Extra Ord
items)
Tax
Reported Net Profit
Total Value Addition
Preference dividend
Equity dividend
Corporate dividend tax
Per share data
(annualised)
Shares in issue (LAKHS)
Earnings per share
(R.s)
Equity dividend (%)
Book value (R.s)

Particulars
Opening Raw materials
Closing Raw materials
Raw materials
consumption
Opening Work in Process
Closing Work in Process
Manufacturing expenses
Opening Finished goods
Closing Finished goods
Purchase of Finished
goods
Distribution & other
expenses

293.13
0.00
293.13

248.20
0.00
248.20

211.09
0.00
211.09

169.39
0.00
169.39

117.33
5.42
122.75

83.33
209.80
809.45
0.00
62.33
10.60

70.80
177.40
666.70
0.00
48.50
7.80

62.81
148.31
539.92
0.00
44.99
7.37

49.26
120.14
427.47
0.00
38.07
6.32

34.00
88.76
370.06
0.00
19.13
3.25

3,462.9
0
6.06

3,461.5
3
5.12

3,460.72 3,460.7
2
4.29
3.47

3,188.7
2
2.78

90.00
28.43

70.00
24.40

65.00
20.84

30.00
12.99

20082009
2803.82
5279.61
77297.37

55.00
18.07

20092010
5279.61
5269.92
105123.2
3
1838.22
3007.29
3007.29
580.18
116146.61 148964.9
4764.67
3937.86
3937.86
13653.44
24667.73 40212.52

2010-2011 2011-2012

2012-2013

5269.92
5774.87
123118.41

5774.87
6406.32
123605.5

6406.32
10133.78
124761.39

580.18
3447.03
177802.22
13653.44
9411.58
65054.77

3447.03
1968.82
181360
9411.58
11252.97
30641.17

1968.82
252.00
177580.75
11252.97
3250.04
6264.59

12870.76

17751.56

17427.51

23140.49

15313.18

BIBLIOGRAPHY
Books
FINANCEIAL MANAGEMENT--- I M PANDEY
FINANCIAL MANAGEMENT----- SHRIVASTAV / MISHRA
FINANCIAL ACCOUNTING-----V.RAJASEKARAN / R.LALITHA
Websites

http://wwwbeepeecoating.in/aboutus/finance.html
http://www.google.com
http://www.beepeecoating.com
http://www.moneycontrol.com/beepeecoating/financials.html