Mba Project in KSDL Print Out

INVENTORY MANAGEMENT
Finance is treated as life blood of an enterprise. Finance is required to start a business, to purchase raw materials, to pay bills, any wages and for every activity of a business enterprise. The term finance was interrupted to mean the procurement of funds by corporate enterprises to meet the financing needs. The term procurements were used in a bread sense include the whole gamut of raising the funds externally.
Meaning of finance
Finance is one of the major elements, which activates the overall growth of the economy. Finance is the lifeblood of economic activity. A well-knit financial system directly contributes to the growth of the economy. An efficient financial system calls for the effective performance of financial institutions, financial instruments and financial markets.
Importance of finance: Ensure that there are adequate funds available to acquire the resources needed to help the organization to achieve its objectives. Ensure costs are controlled. Ensure adequate cash flow Establish and control profitability levels. One of the major roles of the finance
department is to identify appropriate financial information prior to communicating this information to managers and decision makers in order that they may make informed judgments and decisions. Finance also prepares financial documents and final accounts for managers to use and for reporting purposes (AGM etc.)
Meaning of management
In the present day industrial world, management has become universal. The principles of management are being applied not only for managing business concerns, but also to manage various other service sector institutions like hospitals, educational institutions, etc. It is in this context both finance and management functions gained substantial significance in the industry.
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INVENTORY MANAGEMENT Meaning of financial management

Financial management is the specialized functions directly associated with the top management. The significance of this function is not only seen in the Line but also in the capacity of Staff in the overall administration of a company. It has been defined differently by different experts in the field. Some of the important definitions are:
Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation
By Joseph and Massie
Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals
By Weston and Brigham
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PART -A
INTRODUCTION TO INDUSTRY INDUSTRY PROFILE
Soap is one of the commodities which have become an indispensable part of the life of modern world. Since it is non durable consumer goods, there is a large market for it. The whole soap industry is experiencing changes due to innumerable reasons such as government relations environment and energy problems increase in cost of raw material etc. The changing technology and ever existing desire by the individual and the organization to produce a better product at a more economical rate has also acted as catalyst for the dynamic process of change. More and more soap manufactures are trying to capture a commanding market share by introducing new products. The soap industry in India faces a cut throat competition with multinational companies dominate the market. They are also facing severe threat from dynamic and enterprising new entrance especially during 1991-92. If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when roasted meat over flowed on the glow in ashes. This lump like product was soap & had foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made & marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent for making soap was taken in London. The world consumption of soap in 1884A.D. was said to be 2lakh tonnes p.a.
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INVENTORY MANAGEMENT HISTORY OF THE SOAP

Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at various places in Italy, France, England & other countries. France became famous & many small factories were established there. In India the first soap industry was established by North West soap company in1897 at Meerut following the swadeshi movement. From 1905 onwards few more factories were setup. They are, Mysore soap factory at Bangalore Godrej soap at Bombay Bengal chemicals Tata oil mills 1930 lever brothers company
THE INDIAN SOAP INDUSTRY SCENARIO

The Indian soap industry has long been dominated by hand full of companies such as: 1. Hindustan levers limited. 2. Tata oil mills (taken over by HLL) 3. Godrej soaps private limited. The Indian soap industry continued to flourish very well until 1967-68, but began to stagnate & soon it started to recover & experienced a short upswing in 1974. This increase in demand can be attributed due to;
1. 2.
Growth of population. Income & consumption increase.

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3. 4. Increase in urbanization. Growth in degree of personal hygiene. Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes under organized sector.
PRESENT STATUS Market scenario:

India is the ideal market for cleaning products. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlements. The 7.4lakhs tons per annum soap market in India in crawling along at 4% The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits, but even a range of emotions within that outlining framework.
PROBLEMS OF SOAP INDUSTRY

Soap industry faces some problems in case of raw materials. The major ingredients are soap ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakh tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper varieties of soaps are quite high.
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PART-B
Introduction to inventory
In financial parlance, inventory is defined as the sum of the value of raw materials, fuels and lubricants, spare parts, maintenance consumables, semi-processed materials and finished goods stock at any given point of time. The operational definition of inventory would be: the amount of raw materials, fuel and lubricants, spare parts and semi-processed materials to be stocked for the smooth running of the plant. Since these resources are idle when kept in stores, inventory is defined as an idle resource of any kind having an economic value. Inventories are maintained basically for the operational smoothness, which they can affect by uncoupling successive stages of production, where as the monetary value of inventory serves as a guide to indicate the size of the investment made to achieve this operational convenience. The materials management department is expected to provide this operational convenience with a minimum possible investment in inventories. The objectives of inventory, operational and financial, needless to say, are conflicting. The materials department is accused of both stock outs as well as large investment in inventories. The solution lies in exercising a selective inventory control and application of inventory control techniques.
Defining Inventory
Inventory is an idle stock of physical goods that contain economic value, and are held in various forms by an organization in its custody awaiting packing, processing, transformation, use or sale in a future point of time. Any organization which is into production, trading, sale and service of a product will necessarily hold stock of various physical resources to aid in future consumption and sale. While inventory is a necessary evil of any such business, it may be noted that the organizations hold inventories
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for various reasons, which include speculative purposes, functional purposes, physical necessities etc. From the above definition the following points stand out with reference to inventory: All organizations engaged in production or sale of products hold inventory in one form or other. Inventory can be in complete state or incomplete state. Inventory is held to facilitate future consumption, sale or further
processing/value addition. All inventoried resources have economic value and can be considered as assets of the organization .
MEANING AND DEFINATION

According to jennies C.P Teal Inventory can be used to refer to the stock on the hand at a particular time of raw materials, goods in process of manufacture, finished products, merchandise purchased of resale, and the like tangible assets which can be seen, measured and counted in connection with financial statements and accounting records, the reference may be to the amount assigned to the stock of goods owned by an enterprise at a particular time.
DIFFERENT TYPES OF INVNTORY

Inventory of materials occurs at various stages and departments of an organization. A manufacturing organization holds inventory of raw materials and consumables required for production. It also holds inventory of semi-finished goods at various stages in the plant with various departments. Finished goods inventory is held at plant, FG Stores, distribution centers etc. Further both raw materials and finished goods those that are in transit at various locations also form a part of inventory depending upon who owns the inventory at the particular juncture. Finished goods inventory is held by the organization at various stocking points or with dealers and stockiest until it reaches the market and end customers.
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Besides Raw materials and finished goods, organizations also hold inventories of spare parts to service the products. Defective products, defective parts and scrap also forms a part of inventory as long as these items are inventoried in the books of the company and have economic value.
TYPES OF INVENTORY BY FUNCTION

INPUT Raw Materials Consumables required for processing. Eg : Fuel, Stationary, Bolts & Nuts etc. required in manufacturing PROCESS Work In Process Semi Finished Production in various stages, lying with various departments like Production, WIP Stores, QC, Final Assembly, Paint Shop, Packing, Outbound Store etc. OUTPUT Finished Goods Finished Goods at Distribution Centers through out Supply Chain
Maintenance Items/Consumables Packing Materials Local purchased Items required for production
Production Waste and Finished Scrap transit Rejections Defectives
Goods
in
and Finished Goods with Stockiest and Dealers Spare Parts Stocks & Bought Out items Defectives, Rejects and Sales Returns Repaired Parts Stock and &
Sales Promotion Sample Stocks
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TYPES OF INVENTORY BASED ON DEMAND AND PATTERN

There are two types Independent demand inventory Dependant demand inventory
Independent Demand
An inventory of an item is said to be falling into the category of independent demand when the demand for such an item is not dependent upon the demand for another item. Finished goods Items, which are ordered by External Customers or manufactured for stock and sale, are called independent demand items. Independent demands for inventories are based on confirmed Customer orders, forecasts, estimates and past historical data.
Dependant Demand
If the demand for inventory of an item is dependent upon another item, such demands are categorized as dependant demand. Raw materials and component inventories are dependent upon the demand for Finished Goods and hence can be called as Dependant demand inventories. Take the example of a Car. The car as finished goods is an held produced and held in inventory as independent demand item, while the raw materials and components used in the manufacture of the Finished Goods - Car derives its demand from the demand for the Car and hence is characterized as dependant demand inventory.
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INVENTORY MANAGEMENT PURPOSE OR BENEFITS OF HOLDING INVENTORY

Generally speaking there are three main purposes of holding inventories (1) The transaction motive which facilitates continuous production and timely execution of
sales orders (2) The precautionary motive which necessitates the holding of inventories for meeting the
unpredictable changes in demand land supplies of material (3) The speculative motive which includes keeping inventories for taking advantage of price
fluctuations saving in re-ordering costs and quantity discounts etc..
RISK AND COSTS OF HOLDING INVENTORIES

The holding of inventories involves blocking of a firms funds and incurrence of capital and other costs .It also exposes the firm to certain risks. The various costs and risks involved in holding inventories are below. (1) (2) (3) (4) (5) Capital costs Storage and handling costs Risk of price decline Risk of obsolescence Risk determination in quantity
Inventory management
The most important objective or inventory control is to determine and maintain an optimum level of investment in the inventory. Most companies have now successfully installed one or the other system of inventory planning and control. Inventory management and inventory control must be designed to meet the dictates of the marketplace and support the company's strategic plan. The many change in market demand, new
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manufacturing technology means many companies need to change their inventory management approach and change the process for inventory control. Despite the many changes that companies go through, the basic principles for accomplishes and techniques are wrapped in new terminology, but the underlying principles for accomplishing good inventory management and inventory activities have not changed. The inventory management system and the inventory control process provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities, and communicate with customers. Inventory management and the activities of inventory control do not make decisions or manage operations; they provide the information to managers who make more accurate and timely decisions to manage their operations. The basic building blocks for the inventory management system and inventory control activities are:Sales forecasting or Demand management Sales and operations planning Production planning Material requirements planning Inventory reduction The emphases on each area will vary depending on the company and how it operates, and what requirements are placed on it due to market demands. Each of the areas above will need to be addressed in some form or another to have a successful program of inventory management and inventory control.
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INVENTORY MANAGEMENT Characteristics of inventory management

The holding inventory is risky because of the capital investment and the potential for
obsolescence. Investment for inventory cannot be used to obtain other goods or assets that could Funds supporting inventory investment must be borrowed, increasing the firms interest
improve enterprise performance.
expense. A second form of risk is the possibility that the product will be pilfered or become obsolete. These factors and the relative magnitude of assets that are inventory-related contribute substantially to the riskiness of most enterprises. It is important to understand that the nature and extent of risk vary depending on an enterprises position in the distribution channel.
Importance of inventory management:Inventory management refers to the process of managing the stocks of finished products, semifinished products and raw materials by a firm. Inventory management, if done properly, can bring down costs and increase and increase the revenue of a firm. How much one should invest in inventory management? The answer to this question depends on the volume and value of inventory as a percentage of the total assets of a firm. The importance of inventory management varies according to industries. For example, an automobile dealer has very high inventories, sometimes as high as 50 percent of the total assets, whereas in the hotel industry it may be as low as 2to 5 percent. The process of inventory management is a continuous one and there are various kinds of solutions available. It is advisable to employ specialized staff for inventory management. The inventory management process begins as soon as one has started production and ordered raw materials, semi-finished products or any other thing from a supplier. If you are a retailer, then this process begins as soon you placed your first order with the wholesaler.
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Once orders have been placed, there is generally a short period of time available to a firm to put an inventory management plan in place before the supplies are delivered. Inventory management helps a firm to decide in advance where these supplies should be stored. If a firm is getting supplies of small-sized goods, it may not be much of a problem to store them, but in the case of large goods, one has to be careful so that the warehousing space is optimally utilized. From invoices to purchase orders, there is lot of paperwork and documentation involved in inventory management. Several software programs are available in market, which help in inventory management. Inventory management provides detailed information on inventory management, inventory management software, supply chain inventory management, inventory management system and more. Inventory management is affiliated with E-procurement services.
INVENTORY OR MATERIAL CONTROL DFINATION

Material control is defined as safeguarding of companys property in the form of materials by proper system of recording and also to maintain them at the optimum level considering operating requirements and financial resources of the business.
Significance of inventory control

No cost accounting system can become effective without proper and efficient control of materials this is so because quite after materials is the largest single element of cost and as such an efficient system of materials control reads significant economy in the total cost of production.
Objectives of inventory control

(1) (2) (3) (4) To promote customer service in the face of sale and production fluctuations To handle production variation To make action against expected increase in sale To manufacture goods in economic production run
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(5) (6) (7) (8) (9) (10) (11) To take advantage of distribution costs To keep storage equipment operational To minimize cost and maximize profits To avoid running out of stocks To keep the inventory within the available storage capacity To control capital investment To maximize sales and share of market
Principles of inventory control

(1) There should be coordination and cooperation & cooperation between various
departments dealing in materials (2) There should be new central purchasing departments under the control of the competent
and expert purchases management (3) (4) (5) (6) (7) (8) There should be proper classification and codification of materials. Materials requirement should be properly planned Perpetual inventory system should be operated Adequate records should be introduced to control materials The storage of all materials should be well planned Purchases of materials should be controlled through budgets
Inventory control techniques

Inventory control techniques are employed by the inventory control organization within the framework of one of the basic inventory models, viz., fixed order quantity system or fixed order period system. Inventory control techniques represent the operational aspect of inventory management and help realize the objectives of inventory management and control. Several techniques of inventory control are in use and it depends on the convenience of the firm to adopt any of the techniques. What should be stressed, however, is the need to cover all items of the stage of their use.
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The techniques most commonly used are the following:1. Always better control (ABC) analysis
ABC analysis underlines a very important principle Vital few: trivial many. Statistics rev eal that just a handful of items account for bulk of the annual expenditure on materials. These few items, called An items, therefore, hold the key to business. The other items, known as B and C items, are numerous in number but their contribution is less significant. ABC analysis thus tends to segregate all items into three categories: A, B, and C on the basis of their annual usage. The categorization so made enables one to pay the right amount of attention as merited by attention as merited by the items.
2.
High, medium and low (HML) analysis
HML analysis is similar to ABC analysis except for the difference that instead of usage value, price criterion is used. The items under this analysis are classified into three groups that are called high, medium and low. To classify, the items are listed in the descending order of their unit price.
3.
Vital, essential and designable (VED) analysis
V stand for vital, E for essential, D for desirable. This classification is usually applied for spare parts to be stocked for maintenance of machines and equipments based on the criticality of the spare parts. The stocking policy is based on the criticality of the items. The vital spare parts are known as capital or insurance spares. The inventory policy is to keep at least one number of the vital spare part irrespective of the long lead-time required for procurement. Essential spare parts are those whose non-availability may not adversely affect production. Such spare parts may be available from many sources within the country and the procurement lead time many not be long. Hence, a low inventory of essential spare parts is held. The desirable spare parts are those, which, if not available, can be manufactured by the maintenance department or may be procured from local suppliers and hence no stock is held usually.
4.
Scarce, difficult and easy to obtain (SDE)
SDE analysis is based on the problems of procurement namely:Non-availability Scarcity

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Longer lead time Geographical location of suppliers, and Reliability of suppliers, etc SDE analysis classifies the items into three groups called scarce, difficult and easy. The information so developed is then used to decide purchasing strategies.
5.
Fast moving, slow moving and non-moving (FSN)
FSN stand for fast moving, slow moving and non-moving. Here classification is based on the pattern of issues from stores and is useful in controlling obsolescence. To carry out FSN analysis the date of receipt or the last date of issue, whichever is later, is taken to determine the number of months which have lapsed since the last transaction. The items are usually grouped in periods of 12 months. FSN analysis is helpful in identifying active items which 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.
6.
Seasonal-off seasonal (S-OS) Analysis
S-OS analysis is based on the nature of supplies wherein S stands for seasonal items and OS stands for the off-seasonal items. This classification of items is done with the objective of determining proper procurement strategies. Agri based industries need to design their procurement policies in such a way that they procure their raw material during the harvesting season so that they get the best quality in the reasonable price. They need to have proper storing facilities in order to pressure the items till such time they are consumed.
7.
XYZ analysis for finished goods inventory
XYZ analysis is based on the closing inventory vale of different items. Items whose inventory values are high are classified as X items while those with low investment in them are termed as Z items. Other items are the Y items whose inventory value is neither too high nor too low. Read made garments industry can effectively use this analysis to determine their investments in finished goods inventory.
8.
Government, ordinary local and foreign (GOLF) supplies
GOLF analysis is used to identify the stock interms of government supplies, ordinary supplies, local supplies and foreign supplies. This analysis can be effectively used by industries in designing their procurement strategies.
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9.
Economic order quantity (EOQ)
Economic order quantity refers to that level of inventory at which the total cost of inventory is minimum. The total inventory cost comprising ordering and carrying costs. Shortage costs are excluded in adding total cost of inventory due to the difficulty in computation of shortage cost.EOQ also known as Economic Lot Size (ELS). EOQ FORMUL
Where A = Annual usage, O =Ordering cost per order, CC= Carrying cost per unit and CC= price per unit Carrying cost per unit in percentage.
10. Max-minimum system

The maximum-minimum system is often used in connection with manual inventory control systems. The minimum quantity is established in the same way as any reorder point. The maximum is the minimum quantity plus the optimum lot size. In practice, a requisition is initiated when a withdrawal reduces the inventory below the minimum level; the order quantity is the maximum minus the inventory status after the withdrawal. If the final withdrawal reduces the stock level substantially below the minimum level, the order quantity will be longer than the calculated EOQ. The effectiveness of a minimum-maximum system is determined by the method and precision with which the minimum and maximum parameters are established. If these parameters are based upon arbitrary judgments with a limited factual basis, the system will be limited in its effectiveness. If the minimum are based on an objective rational basis, the system can be very effective.
11.
Two bin system
It is mainly adapted to control o group inventories. In the two-bin system, stock of each item is separated into two bins. One bin contains stock to last till the date of placing a new order. The
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other bin contains a certain quantity of stock that will be sufficient to satisfy probable demand during the period of replenishment stock first issued from the 1st bin. When the 1st bin is empty, an order of replenishment is made and the stock in the 2nd bin is utilized until the order material is received.
12.
Materials requirement planning (MRP)
MRP is a new solution to an old problem: having stock of materials always on hand when needed without carrying excess inventory. Highly dependent upon computer technology, MRP is most helpful to firms with finished goods or end products which are made from a number of components and which are also subject to uneven or lumpy demand. The technique separates the various components and co-ordinates purchasing and delivery with production. This result in materials arriving exactly when needed for production and, at the same time, reduces the length of time materials are held in stock. MRP plans and controls goods on order and generates data for determining when and what specific materials will be needed to meet previously planned production schedule.
13.
Just-in-time (JIT)
Just in time is highly discussed in materials management circles these days. The concept is alternatively known as ZIPS (Zero inventory production system), MAN (Materials as needed), NOT (Nick of time), or ZIN (Zero inventories). As a concept, JIT means that virtually no inventories are held at any stage of production and that exact number of units is brought to each successive stages of production at the right time.
Objectives of inventories
Inventory is as old as man. The primitive man's inventory consisted of a few tools; as a shepherd, man had to tend his flocks and herds; later, he had his granaries and warehouses; today, with industrialization, his inventories cover a very wide range. As man has progressed and his needs and activities have multiplied, the range of inventory has become larger and more diversified. As of today inventories include, among others, raw materials, part finished goods, finished goods and operating supplies. Each of these serves specific purposes. The following are the objectives of inventory management:Page 18
1. 2. 3. 4. To facilitate smooth operation of the manufacturing process. To minimize investment in inventory. To reduce material handling costs. Reasonable utilization of people.
Inventory management and control

The management of inventory is given such an importance that it is often treated synonymous with materials management. Literature wise, there are more number of books and articles written on inventory management than on materials management. Inventory management involves the development and administration of policies, systems, and procedures which will minimize total costs relative to inventory decisions and related functions such as customer service requirements, production scheduling purchasing, traffic, etc. Viewed in that perspective, inventory management is broad in scope and affects a great number of activities in a company's organization. Because of these numerous interrelationships, inventory management stresses the need for integrated information flow and decision making, as it relates to inventory policies and overall systems. Inventory control, on the other hand, is defined in a narrower sense than inventory management and pertains primarily to the administration of established policies, systems and procedures. For example, the actual steps taken to maintain the stock levels or stock records refer to inventory control.
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Research design
Research means a search of facts, answers to questions and solutions to problems. It is a purposive investigation; it is an organized inquiry. It seeks to find explanations to unexplained phenomenon to clarify the doubtful facts and to correct the misconceived facts. Research design stands for collecting the relevant data and techniques to be used in their analysis keeping in view the objectives of the research and the availability of staff, time and money. Research study in fact, has a great bearing on the reliability of the results aimed at and such constitutes the firm foundation of the entire research. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible, yielding maximum information with minimum expenditure of effort, time and money. The type of research undertaken is PURE RESEARCH i.e., it is done for the sake of knowledge without any intention to apply it in practice. It is a basic or fundamental research. This research is not problem oriented.
RESEARCH METHODOLOGY
DESIGN OF THE STUDY:

Title of the study Statement of the problem Objectives of the problem Scope of study Limitations of the study Methodology of the study Research instruments
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Title of the study

A study on inventory management of (KSDL) Karnataka soaps & Detergent limited at Bangalore.
Statement of the problem

Every business firm big or small has to maintain inventory and it constitute an integral part of the working capital. It has been estimated that inventory in Indian industries constitute a significant portion of current asset inventories require a significant investment not only to acquire them but also hold them investment in inventory is said to be idle but it is unavoidable in any organization manufacturing or trading so inventory cost has become necessary.
Objectives of the study

To analyze the inventory requirements of the firm to fix various inventory levels. To compare the inventory levels of last three years to know the improvements. To classify the inventories according to various inventory techniques. To offer findings, suggestions and recommendations to the firm. To keep a track on the materials cost in the company. To study present system of inventory management.
Scope of the study

Study was limited only to last three years of inventory requirements Study aims at giving a clear picture of various levels of inventory in the current year. Study also aims at giving a clear picture of improvement in the levels from three years. Study aims at classification of inventory according to its techniques. The study covers all the areas of cost accounting that can be used by the stores
department of the firm.
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Limitations of the study
Study restricted to three years of inventory requirements. The overall performance of inventory is analyzed not the particular model. Limited tools were used to analyze the inventory transactions. The collection of data for the analysis is restricted to KS&DL only at Bangalore. Time was major limiting factor to study.
METHODOLOGY OF THE STUDY:Mainly data is obtained from the annual reports of the company, and websites. Further data is collected through interviews with the personnel and concerned staff of Karnataka soaps & Detergent limited, Bangalore. A questionnaire is also appended.
RESEARCH INSTRUMENTS:
The study period covered in this case study is 3 financial years i.e., from , 2007-2008, 2008-2009,2009-2010,2010-2011
Overview of chapter scheme

CHAPTER-1 INTRODUCTION It gives an introduction to the topics relating to finance.
CHAPTER-2 RESEARCH DESIGN It deals with the research methodology to be adopted.
CHAPTR-3 COMPANY PROFILE It focuses on profile of industry and company

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CHAPTER-4 ANALYSIS OF DATA Analysis and interpretation of inventory management.
CHAPTER-5 FINDINGS AND CONCLUSIONS
Consist of findings, suggestion and conclusion.
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KARNATAKA SOAPS AND DETERGENTS LIMITED

HISTORY OF KS&DL
Karnataka soaps & Detergents Limited, a successor to the government soap factory, which is one of the premier factories among the Indian soap industries. After World War 1, there was a slump in the sandal wood export to the west. It dropped a blanket of gloom over business & trading in India. The Maharaja of Mysore turned this threat in to an opportunity, by sowing the budding seeds of KS & DL on the out skirts of Koti forest, near Bangalore in 1918. The project took shape with the engineering skill and expertise of a top-level team with the inspection of the Diwan of Mysore Late Sir. M. Visvesvaraya & with the service of scientists late Sir S.G. Shastry, Professor Watson & Dr. Sub rough. The entire credit goes to Sir. S.G.Shastry, who improved & made the process perfect of manufacturing of sandalwood oil & world famous Mysore Sandal Soap. The factory was started a very small unit near K.R.Circle, Bangalore with the capacity of 100 tons p.a in 1918. Then, the factory shifted its operations to Rajajinagar industrial area, Bangalore in July 1957. The plant occupies an area of 42 acres (covering soap, detergent & fatty acid divisions) on the Bangalore-Pune Highway easily accessible by transport services and communication. In November 1918, the Mysore Sandal Soap was put in to the market after sincere effort & experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap.
RENAMING OF COMPANY
On Oct 1st 1980, the Government Soap Factory was renamed as KARNATAKA SOAPS AND DETERGENTS LIMITED. The company was registered as a Public Limited company. Today the company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder. KS&DL has been built up with rich tradition for the quality of its products. Mysore Sandal Soap is the No: 1 anywhere in the world. The Karnataka state is the original
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home of the Sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soaps. It is also known as the FRAGRANT AMBASSADOR OF INDIA.
TRADEMARK OF MYSORE SANDAL SOAP

The SHARABHA
SLOGAN
NATURAL PRODUCTS WITH EXOTIC FRAGRANCES
KS & DL has a long tradition of maintaining the highest quality standard, right from the selection of raw materials to processing and packing of the end product. The reasons why its products are much in demand globally and are exported regularly to UAE, Beharen, SaudiArabia, Kuwait, Qatar, South America. The entire toilet soaps of KS & DL are made from raw materials of vegetable origin and are totally free from animal fats.
POLICY OF KS&DL
i.Seek purchase of goods and services from environment responsible suppliers. ii. Communicate its environment policy and best practices to all its employees implications. iii. Set targets and monitor progress through internal and external audits.
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iv. Strive to design and develop products, which have friendly environmental impact during manufacturing. v. Reuse and recycle materials wherever possible and minimize energy consumption and waste.
OBJECTIVES OF KS&DL:
I. To serve the National economy. II. To attain self-reliance. III. To promote purity & quality products IV. To maintain the Brand loyalty of its customers. V. To build upon the reputation of Mysore sandal soap based on pure sandal oil. VI. To promote and uphold its image as symbol of traditional products VII. To maintain the brand loyalty of its customer. VIII. To supply the products mentioned above at most reasonable and competitive price.
BIRDS EYE VIEW OF KS&DL

1918 Government Soap Factory was started by Maharaja of Maharaja and the Mysore Sandal Soap was introduced into the market for the first time 1950 The factory output rose to 500 M.Tons with the following modifications. 1. 2. 1954 Renovating the whole premises. Installing new boiler soap building plant and drying Chamber.
Received license from Government to manufacture 1500 to soap and 75 tons of glycerin per year.
1957 1974
Factory shifted its operation to Rajajinagar Industrial Area. Mysore sales international limited was appointed as the sole selling agent, for marketing its products
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1975 Rs.4 Crores synthetic detergent plant was installed based on Italian technology by Ballestra SPA. 1980 On 1st October 1980, the Government Soap Factory was converted into a public sector enterprise and renamed as Karnataka Soaps & Detergents Limited. 1981 1984 1985 Production capacity increased Rs. 5 Crores Fatty Acid Plant was installed
Manufacturing of premium quality of Agarbathies at Mysore Division Production capacity was raised to 26000 M.Tons Per Annum. A large variety of toilet soaps at attractive shapes, colors and fragrances introduced to meet the varieties & tastes consumers
1992
The company was registered with the Board for Industries and Financial Reconstruction(BIFR), New Delhi in December for rehabilitation, as the company suffered losses continuously since 1980 as it net worth fully eroded
1996
The BIFR approved the rehabilitation scheme in September & the Company stated making Profits.
1999
ISO-9002 Certificate for quality assurance in production, installation and servicing.
2000 2003
ISO-14001 certificate pertaining to environmental management system The entire carried forward loss of Rs. 98 Crores wiped out and in May BIFR, declared the company to be out of its Purview. The Company is making profit continuously: It is only State Public Sector unit that has come out of BIFR.
2004
The ISO-9002 was upgraded to ISO-9001-2004, Quality Systems.
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2005 Launched new herbal care soap of 100 gms contains 19 herbs & leaves
extracted perfumes. Geographical indication registry for
Mysore Sandal soap Mysore Sandalwood Oil 2006 2007 2008 Award for the outstanding export performance of Cosmetics & Toiletries ICWAI National award national for excellence KSDL prime products, Mysore Sandal Wood Soap and Oil are accredited
with Geographical Indications as the Intellectual property of India as per the Geographical Indication of goods Act 1999. The ISO-9001 was upgraded to ISO-9001-2008 Quality accreditations & ISO 14001 2004, EMS accreditation 2009 KSDL upgraded the ISO 9001-2008 policy for Quality Management System and ISO-14001-2004 Environmental Management System 2010 Won Karnataka Chief company Ministry Ratna Award for profited government
2012
A new soap named MILLENIUM was introduced
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KS&DL AT GLANCE
Incorporated Name Address Karnataka Soaps and Detergents Limited Karnataka Soaps & Detergents Limited Bangalore Pune Highway Post Box No. 5531, Rajajinagar, Bangalore-560055 PH: 0803377691/ 3370469/23371103 to 06/ 22376922to24 Email: Mysoresandal@vsnl.com Website: www.mysorsandal.com Year Of Establishment Constitution Management 1918 Wholly owned by Govt. of Karnataka Undertaking Govt. Of Karnataka nominates/ appoints Board of Directors Chairman & MD Renamed Trademark 1980 The trademark is Sharabha. It is the Body is the head of an elephant means blending the intelligence of lion with strength of an elephant Production range Toilet soaps, bar soaps, detergents cakes, powders, agarbhathies, cosmetics, baby products, Sandalwood Oil Process know how The facility is a pioneer in the Manufactures of various soaps and technology imported from Italy.
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Capacity of the Unit Licensed capacity is 26000 metric tons of Soaps & 10000 metric tons of detergents per annum Plants At Bangalore: Soap Plant, Detergent Plant, Fatty Acid Plant At Mysore : Sandalwood Oil, Agarbathies At Shimago: Duty Paid Godown Bankers 1. 2. 3. 4. 5. Co operation Bank, Bangalore State Bank of Mysore, Bangalore Syndicate Bank, Bangalore Canara Bank, Bangalore Vijaya Bank, Bangalore
VISION, MISSION AND QUALITY POLICY:
VISSION:
I. Keeping pace with globalization, global trends & the States policy for using technology in every aspect of governance. II. Ensuring global presence of Mysore Sandal products while leveraging its
unique strengths to take advantage of the current Tech scenario by intelligent & selective diversification.
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III. Secure all assistance & prime status from Government India all Tech alliances. Further, ensure Karnatakas pre-eminent status as a proponent & provider of Tech services to the world, nation, & private sectors.
MISSION:
I. To serve the National economy. II. To attain self-reliance. III. To promote purity & quality products IV. To maintain the Brand loyalty of its customers. V. To build upon the reputation of Mysore sandal soap based on pure sandal oil.
OBJECTIVES OF KS&DL:
I. To serve the National economy. II. To attain self-reliance. III. To promote purity & quality products IV. To maintain the Brand loyalty of its customers. V. To build upon the reputation of Mysore sandal soap based on pure sandal oil. VI. To promote and uphold its image as symbol of traditional products VII.To maintain the brand loyalty of its customer. VIII.To supply the products mentioned above at most reasonable and competitive price.
ISO 9002 QUALITY POLICY:

KS&DL commits to customer delight through Total Quality Management & continues improvement by involvement of all its employees.
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INVENTORY MANAGEMENT ISO 14001 ENVIRONMENTAL POLICIES OF KS&DL:

I. Is committed to preserve the natural environment in the production of its quality products to the satisfaction of its customer. II. Will comply with all statutory & regulatory requirements pertaining to environment stipulated by both state & central authorities. III. Would invite & implement action to reduce all impacts that are likely to be a source of concern to the environment. IV. Would strive & set an example in protection & promotion of an eco-friendly environment. V. Is committed to prevent & minimize risks to the environment & conserve natural resources by waging a war against wastes. VI. Will motivate every employee of the company in preserving the environment by providing appropriate training.
VII. Will make available a copy of environment policy, under environment Management system
on a written request to its manager (Environment & Policy)
AN ISO-9002 COMPANY
KS & DL with a tradition of excellence of over eight decades is committed to customer delight, through total quality management and continuous improvement through the involvement of all employees. KS&DL has got ISO 9002 certificate. To improve the quality management system and to facilitate TQM in the process of soap and detergent, the management took decision to obtain ISO-9002 by end of March 1999. Accordingly action plan was drawn and a committee was set up for the purpose during October 1998 with a mission statement. The company gives initial training including conducting employees awareness programme, document quality manual and quality system procurement. In this direction company obtained the guidance from Consultancies, Bangalore and Bureau of Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002 by the end of March to the Bureau of Indian Standards. Obtained the certificate by the end of March 1999 itself.
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This is to project in the national and international market and also to improve quality of products offered to the consumers with the assurance of quality in the message. The Company got itself upgraded to ISO-9001-2004, Quality Systems in the year 2004-05.
ISO-14001
The company is located in the heart of the Bangalore city. The management of the company took a decision to get the ISO-14001 and become model to other public sector for the techniques used and also to other Government units to spread the message of maintenance of environment. ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and it will help the company to improve the profits, year after Year on long-term basis. The environment management system adopted in the company through this motive as follows: I. Conservation of energy II. Conservation of Surrounding III. Conservation of resources. Equipped with latest technology and backed by full-fledged quality control and R&D support, KS&DL is marching confidentially ahead in the new millennium. The Company is developing new products to meet the changing preferences of its customers.
KS&DL follows the following distribution Channel AREA OF OPERATION:
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WORK FLOW MODEL
SILOS (Silos are closed chambers) Soaps Noodles
Container Mixer
Simplex plodder
It becomes NOODLES
Milling
It becomes soap ribbons
Duplex plodder
Cutting Machine
Cakes are led to
Stamping machine
Wrapping machine
Led through the conveyor belt

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ACHIEVEMENTS / AWARD:
1. Government of Karnataka Dept of Industries and commerce State Export Promotion Advisory Board. EXPORT AWARD 1974-75 2. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81 3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2000
FUTURE GROWTH AND PROSPECTUS:

1. Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil based perfume, Aloe Vera, Vitamin-E etc as additive and suitable for all types of skin and all seasons. 2. Improvement in existing products Mysore Sandal classic improved moisturizers & skin conditions. 3. Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand
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for religious purpose. 4. Introduction of new higher powered detergent powder for institutional sales in bulk packaging. 5. To attain market leadership. 6. Introduction of new trade schemes to increase sales. 7. Aggressive advertisement and publicity as part of sales promotion. 8. Reduction in distribution expenses. 9. Cost-reduction in all areas. 10. Instant decision making in certain procurement activities. 11. Timely introduction and implementation of market driven decisions. 12. Ensuring effective internal control.4 in the year 2000
GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS

KS&DL has a long tradition of maintaining the highest quality standards, right from the selection of raw materials to processing and packaging of the end product. The reason why its products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South America. The sandalwood oil, of course, is much sought after by the leading perfume houses of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable origin & totally free from animal fat.
OWNERSHIP PATTERN:
Wholly owned by Government of Karnataka.
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INVENTORY MANAGEMENT COMPETITORS SHARE: INFORMATION AND THEIR MARKET
HUL Godrej Procter and gamble KSDL Other
70% 04% 10% 11% 05%
STRENGTHS
1. 2. 3. 4. 5. Only soap in India that contains pure sandal & almond oil. Certified by ISO Worlds largest production of sandal wood oil. Brand name from decades in soap market. It has very good dealership network in south which ensures that the products reach every
customer.
6.
Diversified product range helps the company to maintain stability.
WEAKNESSES
1. 2. 3. 4. 5. Distribution network weak in north and east. Absence of television advertisement Neglecting freshness aspect. High oriented cost due to excessive labour force. Low turnover resulting in low profit.
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INVENTORY MANAGEMENT OPPORTUNITIES

1. 2. 3. 4. Traditional benefits that sandal is good for skin. Skin care is just gaining importance among consumers. Government of being in the industry for a long time. Existence of vast market and huge demand.
THREATS
Other competitors products such as rexona, moti santoor etc. there is a need for renovation of plant and machinery. Government policy may reduce growth potential. Other sandal soaps in the market. Entry of new multinationals in soap business. SYSTEMS:
A. Accounting System:
Financial statements are prepared under the historical cost convention on an accrual basis and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.
B. Costing System: process costing C. Inventory Control System

ABC analysis for stock control. FIFO method for issuing materials. Computerized accounting system for stores.
D. Remuneration System:
1. 2. Time rate system is followed to employees. Government fixes the remuneration to executives.
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E. Performance Appraisal System:

Confidential report is prepared by heads of various departments for systematic judgment of the subordinate by authority to assess the standard of work & overall performance.
F. Inventory Control System: STAFF:

As any employer, KS&DL follow ethical employment standards wherever it operates with a goal in mind company guarantees. 1. To fulfill its entire legal obligation in terms of employment payments and benefits practices. 2. Adequate and timely training for every one for the job for which they are employed. 3. Career advancement related to performance and experience. STAFF:
Improvement in the existing products.

Their future plans include launching of new products. The cost control exercise is in consolidation. Introduction of cost effective substitutes without compromising on quality Development of new perfumes, soaps detergents, agarbathis, creams and shampoos.
Highlights for the year

1. The companies has set an ambition sales target of Rs 220 crores for the year 2009-10 & have plans to achieve the sales target. 2. The company introduced multi variants in the brand name of wave soap namely wave lime for the long run like Mysore sandal soap & wave lime soap in public distribution system through Karnataka food & civil suppliers new liquid body wash in the name of wave ,rose & Mysore sandal gold , in the liquid soap segment. Wave body spray etc., during the financial year.
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Future prospects
1. Put up new plant & machinery with latest technology to improve the quality & also to reduce the cost of production. 2. The competition in the FMCG sector is raising day by day & almost all competitors are
offering heavy consumer offers to capture market share, incentives & trade schemes to the traders & consumers. 3. Non supply of sandal wood by the Karnataka state forest department has necessitated
sourcing sandal wood from public auction at very exorbitant rates. 4. Due to the non availability of sandal wood & also the exorbitant cost of sandal wood, the
company is developing on promotion of popular soaps. 5. During the current year, the company launches wave talcum powder with cologne
perfume, liquid soaps, herbal anti septic hand wash, to increase its sales column substantially in the days ahead.
FINANCE, ACCOUNTS, AUDITING DEPARTMENTS:ACCOUNTING

It is the life blood of every organization. It is concerned with managerial decision making. This department is concerned with proper utilization of cash. It identifies the source of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc.
It has abundant of function which can be enumerated as follows: Effective funds management which is inverted in beneficial projects. Decision making regarding fixing of cash account. Obtaining trade credit. Profit Maximization. Wealth Maximization. Preparation of cash budgets.
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Systematic approach to working capital management. Pricing of raw materials & valuation of stores. To protect financial interest of the company
AUDIT DEPARTMENT:
KSDL audit wing is headed by internal auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes. After the Auditors monitor everything they give report which is helpful to the company.
COSTING:
When a company does costing it ensures proper fixation of selling price of the product, cost control it also help in taking decision. KSDL use process costing as the production
mechanism is systematic it involves addition of a lot of ingredient in the manufacturing.
PRODUCT PROFILE:
KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps, Detergents, Agarbathies and Sandalwood oil.
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PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP PRODUCTS MANUFACTURED BY KSDL TOILET SOAPS nn NAME OF THE PRODUCTE PRODUCT MYSORE SANDAL SOAP MYSORE SANDALCLASSIC SOAP MYSORE SANDAL GOLD SOAP MYSORE SANDAL BABY SOAP MYSORE SPECIAL SANDAL SOAP MYSORE ROSE SOAP MYSORE SANDAL HERBAL CARE SOAP MYSORE JASMINE SOAP WAVE SOAP MYSORE LAVENDER SOAP MYSORE SANDAL BATH TABLET MYSORE SANDALCLASSIC BATH TABLET MYSORE JASMINE BATH TABLET MYSORE SPECIAL SANDAL TABLET MYSORE SANDAL ROSE TABLET MYSORE SANDAL GUEST TABLET UNITS OF GRAMS 75, 125 75 75, 125 75 75 100 100, 125 100 100 150 150 150 150 150 150 75
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DETERGENTS NAME OF THE PRODUCT MYSORE DETERGENT POWDER MYSORE DETERGENT POWDER MYSORE DETERGENT CAKE MYSORE DETERGENT CAKE UNITS IN GRAMS 1000 500 125 250
TALCUM POWDERS NAME OF THE PRODUCT MYSORE SANDAL TALC MYSORE SANDAL BABY TALC UNITS IN GRAMS 20, 50, 100, 300 100, 200, 400
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AGARBATHIES
NAME OF THE PRODUCT Mysore Sandal Premium Mysore Sandal Regular Mysore Rose Nagachampa Suprabhatha Mysore Jasmine Parijata Sir M.V.100 Bodhisattva Venkateshwara Durga Ayyappa Alif Laila Meditation
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INVENTORY MANAGEMENT ABC ANALYSIS USED IN KSDL (ALWAYS BETTER CONTROL)

All inventory items are categorized as A, B & C items. The total consumption of item materials for the previous years will be arranged in descending order and items according by the values the first 10,00,000 and above of total consumption are taken as A class items. The items accounting for above 2,00,000 and above with n 10,00,000 value of total consumption are taken as B class items. The items accounting for below 2,00,000 value of total consumption are taken as C class items. Strict control for commitment, receipt and consumption would be exercised on A category items. The purchase budget for the budget year will be complied in detail for A category items and under major groups for B and C category. The internal audit department conduct their visit strictly attempt once in a year for A items once in two to three year for B & C items respectively.
Advantages of ABC
This approach helps the material manager to exercise selective control and focus his By concentrative on A class items the material manager is able to control inventories attention only on few items.
and show visible results in a short spare of time. It reduces the clerical cost and resulted in better planning and improved inventory.
Disadvantages of ABC
As ABC analysis is based on grades of different items, this gradation may include a lot of subjective elements. The result of ABC analysis should be received and updated which is not easy.
KARNATAKA SOAPS AND DETERGENTS LTD FOLLOWS THE ABC ANALYSIS TECHNIQUE OF INVENTORY MANAGEMENT
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INVENTORY MANAGEMENT ABC Analysis (Always Better Control) segregated on the basis of value in Rs.
A Class Items B Class Items C Class Items
Consumption worth Rs. Consumption worth Rs. Consumption worth 10,00,000 & above p.a. 2,00,000 below below Rs.2,00,000 Rs.10,00,000 p.a. p.a. Palms, distillate fatty acid Solvents Items other than solvents aromatic Almond oil AB Red oil Blue colour paper Oil dark brown Oil green Soda ash Water soluble yellow Tactaric acid Camphor Benzyl propionale Common salt Liquid paraffin Glycerin White clay White oil Sandal bottle wood oil
Soap nobles Imported chemicals
Indigenous items Rice bran acid oil Clove leaf oil Stemon Acid slurry Silicon Cellophane paper
MS gold pouches Wrappers
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DEPARTMENTAL ORGANISATIONAL STRUCTURE
Finance Department Chart
GENERAL MANAGER
(Finance)
AGM (Finance)
AGM (Costing) / AGM (Bills)
MGR A/Cs
MGR
MGR (PR&PF)
MGR (LS)
Supervisor
Supervisor
Junior Officer
Junior Officer
Junior Officer
Senior Assistant / Stenographer Junior Assistant
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HR DEPARTMENT
MANAGING MANAGINGDIRECTOR DIRECTOR
ASST. GEN MANAGER [HRD]
MANAGER [HRD]
FIRST AID
TIME OFFICE
OFFICER [HRD]
CANTEEN
VMO
ASS MANAGER
MANAGER
MANAGER R SR ASSTS
JR OFFICER JR. OFFICERS JR ASST SR. ASSTS JUNIOR ASST HELPERS ASST MANAGER
ATTENDER
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PRODUCTION DEPARTMENT
General Manager
Deputy General Manager
Asst General Manager
Manager
Jr.Officer
Charge man
Employees
Page 49
Page 50
ACHIEVEMENTS / AWARD: 1. Government of Karnataka
Dept of Industries and commerce State Export Promotion Advisory Board. EXPORT AWARD 1974-75 2. Detergent Plant M/s Chemical Bombay have given 1 st price for the year 1980-81 3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2004 in the year 2000
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DATA ANALYSIS AND INTERPRETATION
1. SIZE OF INVENTORY
Inventory means stock of goods. It covers the stock of raw materials, stores and spares, work in progress and finished goods
Table No. 1
Table showing the progressive base year percentage growth of inventory for the period 2006-09 Rs. in Crores Year
2007-2008 2008-2009 2009-2010 2010-2011
Inventory
35.0855 29.6012 40.7452 51.7605
Growth of inventory
19.42% 16.39% 22.15% 32.92%
Percentage growth of total inventory =
Inventory Total Inventory
x 100
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GRAPH-1
Growth of inventory
35.00% 30.00% 25.00% 19.42% 20.00% 15.00% 10.00% 5.00% 0.00%
2007-2008 2008-2009 2009-2010 2010-2011
32.92%
22.15% 16.39%
Growth of inventory
ANALYSIS The above table shows the percentage growth of total inventory. Year 20072008 is taken as base year. In year 2007-2008 there was growth in inventory and it decreased to 16.39% in 2008-2009 and there was growth of inventory in succeeding years,22.15% in 2009-2010and 32.92% in 2010-2011. INTERPRETATION The position of inventory and its percentage were decreasing from 20072009.inventory and percentage growth of inventory were in downward trend due to decrease in production resulting to decrease in sales during the year 2007-2008 and 2008-2009.but in succeeding years i.e.2009-2010 & 2010-2011 the position of inventory and its percentage has increased due to increase in production and sales.
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2. PERCENTAGE CAPITAL:-
OF
INVENTORY
TO
WORKING
Working capital is the amount of funds used in current operation of business, working capital need not be in cash, and it can be in form of asset that can be converted into cash within one year. Working capital = Current assets - Current liabilities
Table No. 2
Table showing the Percentage of Inventory to Working Capital for period 2006-09 Years
2007-08 2008-09 2009-2010 2010-2011
the
Inventory
29.60 40.74 51.76 52.52
Working capital
40.62 63.98 67.80 63.76
Percentage
72.87% 63.67% 76.34 82.37
PERCENTAGE OF INVENTORY TO WORKING CAPITAL = Inventory X 100 Working Capital

As per standard or idle inventory to working capital, the inventory should not observe more than 75% of working capital.
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GRAPH-2 CHART SHOWING PERCENTAGE OF INVENTORY TO WORKING CAPITAL
PERCENTAGE OF INVENTORY TO WORKING CAPITAL

90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2007-2008 2008-2009 2009-2010 2010-2011 PERCENTAGE OF INVENTORY TO WORKING CAPITAL
ANALYSIS
The above table shows the inventory to working capital, year 2007-2008 is taken as the base year.72.87% in 2007-08, 63.67% in 2008-09. it increased for the next succeeding years 76.34% in 2009-2010 and presently 82.37% in 2010-11. INTERPRETATION Inventory to working capital, helps to measure the short term solvency of a company. It is 63.67% in 2008-09, 76.34% in 2009-2010 The inventory to working capital is sufficient but during 2010-11 it is above the standard 82%. This shows it is not good situation for the company. This may be due to much of inventories is locked up in working capital.
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INVENTORY MANAGEMENT 3. PERCENTAGE OF INVENTORY IN CURRENT ASSETS

Inventory generally means stock of good involved in current assets. Current asset is those assets which change their form and substances and which are converted into cash during the normal operating cycle of business.
Table No. 3
Table showing the Percentage of Inventory in Current Assets for the period 2006-09
Years 2007-08 2008-09 2009-10 2010-11
Inventory 29.6012 40.7452 51.7605 52.5234
Current assets 88.1689 109.1372 118.956 112.114
Percentage 33.57% 37.33% 41.75% 46.84%
PERCENTAGE OF INVENTORY TO CURRENT ASSETS = Inventory x 100 Current Assets
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GRAPH-3
Percentage of inventory in curent assets

50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
2007-2008 2008-09 2009-10 2010-2011 Percentage of inventory in curent assets
46.84% 39.17% 41.75% 33.57%
ANALYSIS
The above table shows the percentage of inventory in current asset. Year 2007-08 is taken as the base year. The above table shows the increasing trend, 33.57% in 2007-08, 37.33% in 200809,41.75% in 2009-10 and presently 46.84% in 2010-11
INTERPRETATION
From the above graph it is clear that the inventory to current assets ratio is increasing year by year , which increases the assets of the company. The current assets can b converted in o cash within the financial year. It provides more working capital to the company which needs for day to day activities of the firm.
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4. INVENTORY TURN OVER RATIO OR STOCK TURN OVER RATIO It indicates the number of times the stock is turned over (sold) during the year. It is a ratio between net sales and average inventory.
Table No. 4
Table showing the percentage of Inventory Turnover Ratio for the period 09 (Rs. In Crores) Years 2007-08 2008-09 2009-10 2010-11 Net sales 128.6462 153.3703 164.7774 164.9723 Avg. inventory 29.6012 40.7452 51.7605 52.5234 Turnover times 4.34 3.34 3.183 3.76 2006-
Inventory Turnover Ratio ANALYSIS = Net Sales Average Inventory
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GRAPH-4 CHART SHOWING INVENTORY TURN OVER RATIO
INVENTORY TURN OVER RATIO

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
2007-2008
2008-2009
2009-2010
2010-2011
INVENTORY TURN OVER RATIO ANALYSIS The above table shows the inventory turnover ratio year 2007-08 is taken as the base year ,4.34 times in 2007-08.there was a decrease in turnover times for the next three succeeding years i.e.3.76 in 2008-2009,3.18 in 2009-10 and presently 3.14 in 2010-11.
INTERPRETATION
The above graph shows that the inventory turnover ratio is decreasing year by year from 20072011.This shows that there is improvement in control over the inventories from every year to year.
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5. RAWMATERIAL TURNOVER RATIO

Annual consumption It is the consumption of raw material inventory during the year Average raw material opening stock of raw material + closing stock of raw material
Table no. 5 Table showing the percentage of raw material ratio for the period 2007-11
Years 2007-08 2008-09 2009-10 2010-11
Annual consumption
AVG.INVENTORY TURNOVER TIMES 5.3810 8.7290 13.9591 17.3447 10.06 9.19 5.554 4.7165
54.1433 80.1928 77.5383 81.8064
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GRAPH-5
RAW MATERIAL TURNOVER RATIO

12 10 8 6 4 2 0 2007-2008 2008-2009 2009-2010 RAW MATERIAL TURNOVER RATIO RAW MATERIAL 2010-2011
ANALYSIS
The above table shows the raw material turnover ratio. Year 2007-08 is taken as the base year. In 2007-08 the turnover times were 10.06 further there was decrease in turnover times in succeeding years. It was 9.19 times in 2008-09, 5.54 times in 2009-10and presently 4.716 in 2010-11.
INTERPRETATION
Raw material turnover ratio shows the number of times the raw material was replaced during the year. The raw material turnover ratio is decreasing year by year so, necessary steps should be taken for proper management of raw materials.
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6. STORES AND SPARES TURNOVER RATIO

It is the value of stores and spares inventory consumed during the year TABLE .6
Table showing the turnover of stores and spares turnover inventory for the period 2007-2011
Years
Value of stores AVG. stores and TURNOVER and spares spares TIMES consumption 1.0313 0.8691 1.3257 1.1733 1.159 0.5439 0.9316 0.5077 0.89 1.60 1.42 2.311
2007-08 2008-09 2009-2010 2010-2011
Stores and spares turnover ratio =annual consumption of stores and spares Average stores and spares
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GRAPH-6
Stores and spares turnover ratio

2.5
2.311
1.6
1.5
1.42 Stores and spares turnover ratio
0.89
0.5
ANALYSIS
The above table shows the stores and spares turnover ratio. Year 2007-08 is taken as the base year, its 0.89 times in 2007-08, 1.60 times in 2008-09, 1.42 times in 2009-10 and presently 2.31 in 2010-11. Its fluctuating over the years.
INTERPRETATION
Stores and spares turnover ratio is fluctuating over the years. This shows that there is inefficiency in managing the stores and spares. But in current year 2010-11 it has been increased when compared to that of previous year . so the company should see that it maximizes this ratio.
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INVENTORY MANAGEMENT 7. INVENTORY CONVERSION OF PEROID

This represents the number of days of which inventories remain before they are issued for production.
Table No. 7
Table showing the Inventory turnover Conversion in number of days for the period 2006-09 Years No. of Days in a year 2007-08 2008-09 2009-2010 2010-2011 365 365 365 365 Inventory Turnover Ratio 4.34 3.76 3.183 3.14 No. of Days 84 97 114 116
Inventory Conversion period =
Number of Days
Inventory Turnover Ratio
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GRAPH-7
Inventory conversion period

120
114 97
116
100
84
80 60 40 20 0
Inventory conversion period
ANALYSIS
The above table shows the inventory conversion period. Year 2007-08 is taken as the base year. 84 days in 2007-08, there is increase in succeeding years it was 97 days in 2008-2009, 144 days in 2009-10 and in the current year 2010-11 it is 116 days .
INTERPRETATION
The inventory turnover ratio shows the increasing trend which means that there is problem in proper inventory management. So necessary steps should be taken to correct it .
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INVENTORY MANAGEMENT 8. DURATION OF STORES AND SPARES CONVERSION PERIOD

This represents the number of days for which stores and spares remain in inventory before they are issued to production.
Stores and spares consumed per day= Average stores and spares turnover Times of stores and spares ___________________________________ 365 TABLE .8
TABLE SHOWING DURATION OF STORES AND SPARES CONVERSION PERIOD FOR THE PERIOD 2007-2009
Years
Average stores Stores and spares No. of and spares consumed per day Days 1.159 0.5439 0.9316 0.5077 0.0283 0.0238 0.0362 0.0321 41 23 26 16
2007-08 2008-09 2009-2010 2010-2011
Duration of stores and spares =
Average stock of stores and spares Average stores and spares consumed per day
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GRAPH-8
Duration os stores and spares conversion period

45 40 35 30 25 20 15 10 5 0
41
26 23 16
Duration os stores and spares conversion period
Analysis
The above table shows the duration of stores and spares conversion period. Year 2007-08 is taken as the base year.41 days in 2007-08, 23 days in 2008-09, 26 days in 2009-10, 16 days in 2010-11.
Interpretation
The stores and spares conversion period are fluctuating every year. During the period 2007-08 it had taken 41days where as in the current year it took 16 days. Its not better sign of inventory management.
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INVENTORY MANAGEMENT 9. DURATION OF RAWMATERIAL CONVERSION PERIOD

This represents the number of days for which the raw material remain in inventory before they are issued for production AVERAGE RAW TURNOVER PER DAY 365 MATERIALSCONSUMED =AVERAGE RAWMATERIALS
TIMES OF RAW MATERIALS
TABLE .9 Table showing duration of raw materials conversion period for the year 2007-2011
Years
Average materials 5.3810 8.7290 13.9591 17.3447
raw Raw materials No. of consumed per day Days 0.1483 0.2192 0.2124 0.2241 36 40 66 77
2007-08 2008-09 2009-2010 2010-2011
DURATION OF RAWMATERIALS= AVERAGE STOCK OF RAW MATERIALS AVERAGE RAW MATERIALS CONSUMED PER DAY
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GRAPH-9
Duration of raw materials conversion period

80 70 60 50 40 30 20 10 0
77
66
40 36
Duration of raw materials conversion period
Analysis
The above table shows the duration of raw materials conversion period. Year 2007-2008 is taken as the base year. It shows the increasing trend , 36 days during 2007-08, 40 days during 2008-2009,66 days during 2009-2010 and currently 77 days in 2010-2011.
INTERPRETATION
The raw material conversion period shows the increasing trend for the period 2007-2011. During the year 2007-08 raw material conversion period was comparatively less when compared
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to that of other years. It is increasing year by year. The increasing trend of raw material conversion period is not the good sign of inventory management.
Operating expenses ratio
Table No: 10 Table showing Operating expenses ratio for the period 2006-09
Years Operating cost Total income Ratio (in %)
2007-08 2008-09 2009-2010 2010-2011
1,15,85,36,413 1,54,03,40,291 1580165818 1551413073
1,28,09,80,587 1,66,47,01,541 1723349221 1649398091
90.44 92.53 91.69 94.05
Source: Records of the KS&DL Annual Reports Operating cost OPERATING EXPENSES RATIO: Total Income x100
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GRAPH-10
Operating expenses ratio

95.00% 94.00% 93.00% 92.00% 91.00% 90.00% 89.00% 88.00%
94.05% 92.53%
91.69%
90.44% Operating expenses ratio
Analysis
The KS&DL has 90.44, 92.53, 91.69 & 94.05 as operating expenses ratio for the years 2007-08, 2008-09, 2009-10 & 2010-11 respectively. This shows KS&DL operating expenses position through over all income of the industry
INTERPRETATION
The above graph represents the constant increase. In the operating expenses through total income the years 2007-2011.
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CHAPTER-5 FINDINGS AND CONCLUSION
Page 72
Findings
The study of Inventory management at KSDL Ltd. reveals the following findings.
A material planning is done based on orders obtained from different customers. The
material requirement plan processed is to give exact requirements of material to be produced. All material is stored in right condition at respective locations and the company has items
which are slow moving and non-moving, which are disposed off at regular intervals. Verification of high value material in holding store is conducted in accordance with
predetermined programmers. Vendors are related based on their performance with respect to delivery a quantity price
standard. The received materials are inspected as per standard plan is finished products are tested
on 100% basis material is released and handled properly. The inventory turnover ratio of the company is showing a decreasing trend from 3 years
where as in current year there is a slight improvement in control over inventories. The raw material turnover ratio is fluctuating. These shows there should be necessary
steps taken to manage the raw materials. Stores and spares turnover ratio is fluctuating. This show there is insufficiency in
managing the stores and spares inventory. The scrap obtained in the process is comparatively very low. The entire department of KSDL is computerized.
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INVENTORY MANAGEMENT SUGGESTIONS

After analyzing the overall performance of the present and past years working, a few short comings have been notice. Though the company is doing well overall, a little more care taken about same of the aspects of inventory management will add to the profitability of the company. Keeping this view, the following recommendations are put forth after a detailed study was made: The sales department should be effective to reduce the stocking in the finished goods
component of inventory. New sales technique should be activated to increase the sales. Over stocking and under stocking of raw materials should be controlled by technical
auditors, there should be coordination between production processes department and inventory handling department for efficient outcome. The company should follow EOQ to reduce over stocking of material, purchase at
competitive prices, to reduce the cost of product. Concentrated effort will be needed to reduce stock of materials, which have not moved
for years, insurance items should be monitored and made certain that they would meet their purpose when called upon to do so. The production department should sequence the cycle of operation and stick to the
scheduled dates in all areas. Speed conversion of inventory will reduce the interest burden and improve the bottom line.
CONCLUSION
The following conclusion is drawn after analyzing the data collected from the company:KS&DL will remain a household name to the people of India. Their ambition has always been and will continue, to make soaps for the family of all around the country. And bringing new brands extension to suit the need of traditional and modern scenario. The organization firmly believes that giving its people the right encouragement yield in comparable rewards.
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Emphasis is given to man, management and every opportunity so that people can grow with the organization. Its giant infrastructure and network people working toward a common goal to give the customer service and value that he deserve through relentless search for quality and pursuit of excellence looking toward the next century. The performance of KS&DL in the financial year 2008-2009 was satisfactory. The profits of the company have been increased in the financial year 2008-2009. Due to this there is an increase in the turnover of the company. But, during the financial year2009-2010 & 2010-2011 the profits of the company is decreasing. Due to this there is decrease in the turnover of the company. In KS&DL rate of inventory represents a very significant proportion of total assets. The size of the inventory is increasing year after which indicate inefficient inventory management in KS&DL The nutshell the KS&DL provides good quality of products & maintaining the good turnover and profitability position.
Page 75
Page 76
KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2008
Amount as at 31-03-2008 Amount as at 31-03-2007 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation 2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories 296,012,822 350,855,723 296,106,154 237,050,829 59,055,325 30,000,100 32,146,548 292,406,486 233,475,517 58,930,969 100 10,365,536 89,995,436 16,629,120 100,360,972 129,995,436 146,624,556 555,408,013 479,915,849 318,221,000 136,826,041 318,221,000 15,070,293 Rs Rs Rs
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(b) Sundry Debtors (c) Cash & Bank Balances 146,346,670 334,385,423 80,873,641 312,345,581
(d) Loans & Advances TOTAL
104,944,640 881,689,555
72,546,525 816,621,470
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions TOTAL Net Current Assets 5. (a) Miscellaneous Expenditure ( to the extent not written off {or adjusted]) (b) Profits & Loss A/c 28,039,490 12,931,061 308,752,365 166,770,640 475,523,005 406,166,550 292,624,243 115,943,508 408,567,751 408,053,719
TOTAL
555,408,013
479,915,849
Page 78
INVENTORY MANAGEMENT PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2008
PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1,455,284,544 168,822,536 1,286,462,008 20,985,305 1,307,447,313 Increase / (-) decrease in stock -26,466,726 1,280,980,587 EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 541,433,115 613,525,868 3,577,430 1,158,536,413 Operating Profit Interest & Finance Charges 122,444,174 4,508,734 507,094,583 551,982,974 3,605,016 1,062,682,573 48,005,540 4,648,394 43,357,146 1,195,803,294 151,428,824 1,044,374,470 19,004,300 19,004,300 47,309,343 1,110,688,113 Amount for the Amount for the year ending 31-03- year ending 31-0308 07
PROFIT/(LOSS) BEFORE TAX 117,935,440 Provision for Taxation
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- Current Tax - Defferred Tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Prior Period Expenditure Income / (-) 14,687,533 32,146,548 -27,048,785 13,730,643 121,755,743 Profit / (-) Loss brought forward from previous year 15,070,293 -5,326,044 15,070,293 22,099,763 20,396,797 6,640,866 18,000,000 7,098,690 4,596,941 88,239,809 35,855,694 5,200,000 2,301,452
Deferred Tax Asset Proposed Dividend Tax of Earlier Years
Profit / (-) Loss carried to Balance Sheet 136,826,041
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KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2009 Amount as at 31-03-2009 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus & exchange fluaction reserve 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation 2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories (b) Sundry Debtors 407,452,487 163,529,618 296,012,822 146,346,670
Page 81
Amount as at 31-03-2008 Rs Rs
Rs
318,221,000 269,488,487
318,221,000 136,826,041
107,204,608 83,506,504
10,365,536 190,711,112 89,995,436 778,420,599 100,360,972 555,408,013
309,623,620 239,847,860 69,775,760 50,000,100 52,504,866
296,106,154 237,050,829 59,055,325 30,000,100 32,146,548
(c) Cash & Bank Balances 255,132,909 334,385,423
(d) Loans & Advances TOTAL
215,257,572 1,041,372,587
104,944,640 881,689,555
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions TOTAL Net Current Assets 5. (a) Miscellaneous Expenditure ( to the extent not written off {or adjusted]) (b) Profits & Loss A/c 16,374,640 28,039,490 246,650,794 204,956,560 451,607,354 589,765,233 308,752,365 166,770,640 475,523,005 406,166,550
TOTAL
778,420,599
555,408,013
Page 82
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2009 PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1,693,919,368 160,215,837 1,533,703,531 60,623,797 1,594,327,328 Increase / (-) decrease in stock 70,374,213 1,664,701,541 EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 801,928,343 734,442,910 3,969,038 1,540,340,291 Operating Profit Interest & Finance Charges 124,361,250 7,276,261 541,433,115 613,525,868 3,577,430 1,158,536,413 122,444,174 4,508,734 117,935,440 1,455,284,544 168,822,536 1,286,462,008 20,985,305 1,307,447,313 (26,466,726) 1,280,980,587 Amount for the year ending 31-03- Amount for the year 09 ending 31-03-08
PROFIT/(LOSS) BEFORE TAX 117,084,988 Provision for Taxation
Page 83
- Current Tax - fringe benefit tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Perior Period Income Expenditure Deferred Tax Asset Proposed Dividend Tax of Earliar Years 130,893,087 Profit / (-) Loss brought forward from previous year 136,826,041 15,070,293 136,826,041 / (-) 14,078,609 20,358,318 -----14,687,533 32,146,548 -27,048,785 13,730,643 121,755,743 18,500,000 2,128,828 --96,456,160 18,000,000 7,098,690 4,596,941 88,239,809
Profit / (-) Loss carried to Balance Sheet 267,719,128
Page 84
KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2010 Amount as at 31-03-10 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus & exchange fluaction reserve 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation (b) net block 2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories 517605839 407452487
Page 85
Amount as at 31-03-2009 Rs Rs
Rs
318221000
318,221,000 269,488,487
343479146 107,204,608 80092400 83506504 163598904 825299050 83,506,504 190,711,112 778,420,599 778420599
309,623,620 327262896 241431939 239,847,860 69,775,760 50,000,100
100 61435241
100 52,504,866
(b) Sundry Debtors (c) Cash & Bank Balances (d) Loans & Advances (e)Investment trust TOTAL in gratuity 50000000 1239560593 50000000 1091372587 172641760 285359727 213953267 163529618 255132910 215257572
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions Net Current Assets 292361773 269166068 561527841 678032752 246650794 204956560 451607354 639765233
5. (a) Miscellaneous Expenditure ( to the extent not written off {or adjusted]) (b) Profits & Loss A/c 16374640
TOTAL
855299050
778420599
Page 86
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010 PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1789059796 141285059 1647774737 22288309 1,693,919,368 160,215,837 1,533,703,531 60,623,797 1,594,327,328 Increase / (-) decrease in stock 53286174 1723349221 EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 775383439 799799905 4982474 1580165818 Operating Profit/loss Interest & Finance Charges 143183402 8297546 801,928,343 734,442,910 3,969,038 1,540,340,291 124,361,250 7,276,261 117,084,988 70,374,213 1,664,701,541 Amount for the year ending 31-03- Amount for the year 10 ending 31-03-09
PROFIT/(LOSS) BEFORE TAX 134885857 Provision for Taxation
Page 87
- Current Tax - fringe benefit tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Prior Period Expenditure Income / (-) 1441082 8930375 15911050 14,078,609 20,358,318 -----75760017 Profit / (-) Loss brought forward from previous year 26,77,19,129 130,893,087 136,826,041 48000000 2704083 93112149 18,500,000 2,128,828 --116814479
Deferred Tax Asset Proposed Dividend Tax of Earlier Years
Profit / (-) Loss carried to Balance Sheet 34,34,79,146
26,77,19,128
Page 88
KARNATAKA SOAPS AND DETERGENTS LIMITED BALANCE SHEET AS ON 31ST MARCH 2011 Amount at 31-3-11 Amount as at 31-03-10 Rs SOURCES OF FUNDS 1. Share Holders Funds (a) Share Capital (b) Reserves & Surplus & exchange fluaction reserve 2. Loan Funds (a)Secured Loan (b)Unsecured Loan TOTAL APPLICATION OF FUNDS 1. Fixed Assets (a)Gross Block Less Depreciation 32,72,62,896 24,14,31,939 8,35,06,504 79,32,48,197 8,00,92,400 83506504 16,35,98,904 82,52,99,050 3,18,22,100 391,520,693 318221000 343479146 Rs
2. Investments 3. Deferred Tax Asset 4. Current Assets, Loans & Advances (a) Inventories
100 6,25,71,241
100 61435241
525234558
517605839
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(b) Sundry Debtors (c) Cash & Bank Balances (d) Loans & Advances 165859183 240314138 189732241 1201140120 172641760 285359727 213953267 50000000 1239560593
(e)Investment in gratuity trust 80000000 TOTAL
LESS: Current Liabilities & Provision (i) Liabilities (ii) Provisions Net Current Assets 273532955 289914262 563447217 292361773 269166068 561527841 67,80,32,752
5. (a) Expenditure
Miscellaneous
( to the extent not written off {or adjusted]) (b) Profits & Loss A/c
TOTAL
79,32,48,197
85,52,99,050
Page 90
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010 PARTICULARS INCOME Sales Less: Excise Duty Net Sales Other Income 1810681627 160958395 1649723232 24,378,057 1789059796 141285059 1647774737 22288309 Amount for the Amount for the year year ending 31-3-11 ending 31-03-10
Increase / (-) decrease in stock
2,47,03,198 1649398091
5,32,86,174 1723349221
EXPENDITURE Material consumed (including trading items) Other Expenditure Depreciation 72,75,73,371 5775312 1551413073 Operating Profit/loss Interest & Finance Charges PROFIT/(LOSS) BEFORE TAX 9,79,85,018 52,39,449 81,80,64,390 775383439 799799905 4982474 1580165818 143183402 8297546 134885857
Page 91
Provision for Taxation - Current Tax - fringe benefit tax - Dividend Tax PROFIT /(LOSS)AFTER TAX Prior Period Expenditure Income / (-) 1,00,13,655 11,36,000 1,59,11,050 14,41,082 89,30,375 1,59,11,050 26,42,627 5,39,38,942 3,40,00,000 48000000 2704083 9,31,12,149
Deferred Tax Asset Proposed Dividend
4,80,41,547 Profit / (-) Loss brought forward from previous year 34,34,79,146
75760017 26,77,19,129
Profit / (-) Loss carried to Balance Sheet 39,15,20,693
34,34,79,146
Page 92
Bibliography
NAME OF THE TITLE AUTHOR EDITION THE BOOK

Reddy Appannaiah Satyaprasad K.Aswathappa G.Sudarsana Reddy M.Krishna Reddy
& PUBLISHER OF PLACE

Himalaya Publishing House, Mumbai Himalaya Publishing House, Mumbai
& YEAR OF PUBLICATION
Financial Management, Second revised edition Production and Operations Management
2009
2008
INTERNET SOURCES
WED ADDRESS
www.google.com www.mysoresandal.co.in/ www.scribd.com
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INVENTORY MANAGEMENT

INVENTORY MANAGEMENT Meaning of financial management

INVENTORY MANAGEMENT HISTORY OF THE SOAP

THE INDIAN SOAP INDUSTRY SCENARIO

Growth of population. Income & consumption increase.

PRESENT STATUS Market scenario:

PROBLEMS OF SOAP INDUSTRY

MEANING AND DEFINATION

DIFFERENT TYPES OF INVNTORY

TYPES OF INVENTORY BY FUNCTION

Production Waste and Finished Scrap transit Rejections Defectives

Sales Promotion Sample Stocks

TYPES OF INVENTORY BASED ON DEMAND AND PATTERN

INVENTORY MANAGEMENT PURPOSE OR BENEFITS OF HOLDING INVENTORY

fluctuations saving in re-ordering costs and quantity discounts etc..

RISK AND COSTS OF HOLDING INVENTORIES

INVENTORY MANAGEMENT Characteristics of inventory management

improve enterprise performance.

INVENTORY OR MATERIAL CONTROL DFINATION

Significance of inventory control

Objectives of inventory control

Principles of inventory control

Inventory control techniques

High, medium and low (HML) analysis

Vital, essential and designable (VED) analysis

Scarce, difficult and easy to obtain (SDE)

SDE analysis is based on the problems of procurement namely:Non-availability Scarcity

Fast moving, slow moving and non-moving (FSN)

Seasonal-off seasonal (S-OS) Analysis

XYZ analysis for finished goods inventory

Government, ordinary local and foreign (GOLF) supplies

Economic order quantity (EOQ)

10. Max-minimum system

Two bin system

Materials requirement planning (MRP)

Inventory management and control

DESIGN OF THE STUDY:

Title of the study

Statement of the problem

Objectives of the study

Scope of the study

department of the firm.

Overview of chapter scheme

CHAPTER-2 RESEARCH DESIGN It deals with the research methodology to be adopted.

CHAPTR-3 COMPANY PROFILE It focuses on profile of industry and company

CHAPTER-4 ANALYSIS OF DATA Analysis and interpretation of inventory management.

CHAPTER-5 FINDINGS AND CONCLUSIONS

Consist of findings, suggestion and conclusion.

KARNATAKA SOAPS AND DETERGENTS LIMITED

TRADEMARK OF MYSORE SANDAL SOAP

NATURAL PRODUCTS WITH EXOTIC FRAGRANCES

BIRDS EYE VIEW OF KS&DL

ISO-9002 Certificate for quality assurance in production, installation and servicing.

The ISO-9002 was upgraded to ISO-9001-2004, Quality Systems.

extracted perfumes. Geographical indication registry for

A new soap named MILLENIUM was introduced

VISION, MISSION AND QUALITY POLICY:

ISO 9002 QUALITY POLICY:

INVENTORY MANAGEMENT ISO 14001 ENVIRONMENTAL POLICIES OF KS&DL:

KS&DL follows the following distribution Channel AREA OF OPERATION:

It becomes soap ribbons

Cakes are led to