Final Project

TULSYAN NEC LIMITED
EXECUTIVE SUMMARY
The project work is carried out at Tulsyan NEC Limited. This manufacturing
industry has very strong competitions. As such it has not been able to lead the market.
There is large number of factors which has contributed to the same. Therefore it has
become imperative to analyses market situation. Every aspect of the industry was studied
clearly and finally analyzed and thus leading to very useful insights.
The methodology adapted for the study was observation and direct interview.
Various departments were visited and data was collected about the structure and
functioning of each department and the organization.
Company need to gear up its efforts and resources, to stand all the top level in the
global competition. The company has to throw light on distribution, pricing and tackling
competition. Thus its an instrument which helps the unit to understand its strength and
weakness and thus work on it to intensify its position in the market based on the
information collected SWOT analysis was prepared.
Title of study
A study is conducted to analyze and interpret the
Inventory Management and Control Techniques at TULSYAN
Design of the study
Working & learning has been introduced to have an exposure to org anisation
concepts, working in an industry. Ten weeks, a summer project is also about learning in a
specialized also. It has been done with inter -colligating the option definitions.
The past few dealers have been tremendous changes taking place in business environment
&industrial background of India. Globalization &liberalization has use in competition
&innovation almost in every sphere of life & to survive this. It has become imperative to
keep abreast with latest trends.
SCT INSTITUTE OF TECHNOLOGY
TULSYAN NEC LIMITED
The study is being carried at to know the financial performance of the company is the last
3 years i.e. 2006 to2009.The secondary date for study was collected from the final report
of the co. which includes balance sheet & profit and loss of company where as primary
data was collected from the office of finance department.
The first part of this report gives the general introduction to organization & product
profile &audit also shows organizational chart.
Second part is about the design of the study which includes statement of problem, scope
of the study, objectives of the study & limitation of the study.
Third part includes the theoretical framework of inventory management.
Fourth part includes part of this report includes the interpretation & analysis of data.
Last part includes the balance sheet, annexes and conclusions of the study.
TULSYAN NEC LIMITED
INDUSTRY PROFILE
Polymers are a large class of materials consisting of many small molecules (called
monomers) that can be linked together to form long chains, thus they are known as
Macromolecules. A typical polymer may include tens of thousands of monomers.
Because of their large size, polymers are classified as macromolecules.
In the late 1830s, Charles Goodyear succeeded in producing a useful form of
natural rubber through a process known as Vulcanization.
Some 40 years later,
Celluloid (a hard plastic formed from nitrocellulose) was successfully commercialized.

Despite these advances, progress in polymer science was slow until the 1930s, when
materials such as vinyl, neoprene, polystyrene, and nylon were developed. The
introduction of these revolutionary materials began an explosion in polymer research that
is still going on today.
Unmatched in the diversity of their properties, polymers such as cotton, wool,
rubber, Teflon(tm), and all plastics are used un nearly every industry. Natural and
synthetic polymers can be produced with a wide range of stiffness, strength, heat
resistance, density, and even price.
With continued research into the science and
applications of polymers, they are playing an ever increasing role in society.
HISTORY
Polypropylene is a polymer of the modern World. It was discovered as late as in 1954 by
Professor GiulioNatta. Till this time polyethylene was already discovered and the
catalysts that were used in the polypropylene industry were used by the professor to the
propylene gas to produce polypropylene. The commercial production of polypropylene
initiated in the year 1957 as it can also be produced at room temperature and low
pressure. For his work, Natta along with Karl Ziegler, the discoverer of the catalysts, got
the Nobel Prize in the year 1963.
TULSYAN NEC LIMITED
With its production, it was readily accepted by various industries as it is economical and
possesses exclusive physical properties. With time and the introduction of new
technologies of production, improvements were done relating to the types of catalysts
used and controlling the structure of the product. The world production of the polymer
crossed the 14 million tons mark. Polypropylene is a versatile polymer as it can be used
in a vast number of applications and today the polymer has become non-substitutable.
POLYPROPYLENE PRODUCING COMPANIES
The World production operation of polypropylene is undertaken by some of the biggest
energy companies of the World. Due to the enormous and ever increasing demand of the
polymer, high production standards are maintained throughout the world to keep up with
the demand. The major international polypropylene manufacturing companies are listed
below.
Exxon Mobil
Honam Petrochemicals
Hyundai Petrochemicals
Shell
Samsung
Dow Chemicals
United States of America is the largest producer of polypropylene with the production
figures of around 8.4 million metric tons pertaining to the year 2004. Japan and South
Korea is the other two major producers of polypropylene lying in the Asian continent
having production figures of 29,08,000 metric tons and 29,30,000 metric tons
respectively. In the European continent, Germany, France and United Kingdom sum up
to produce a mere 3.96 million tons, though the production trend is up. Taiwan is an
TULSYAN NEC LIMITED

important Asian producer indulging in propylene production up to an extent of around 1
million tons.
PRODUCTION OF POLYPROPYLENE IN INDIA
India is not among the dominant producers of polypropylene in the world but is an
upcoming player. The country is able to produce around 4500 thousand metric tons of
plastic products annually from which around 3150 thousand metric tons is shared by
polyethylene and polypropylene. In India too, like in the world scenario, the production
operation is held by various private and public sector companies. Reliance is the most
dominant player of all the other companies operating in the country. The major Indian
companies indulged in the production of the polymer are.
Reliance
Haldia Petrochemicals
Gas Authority of India Limited
GE Plastics India
IPCL
NOCIL
Karnataka Petrosynthese Limited
Supreme Industries
The Indian Petrochemicals industry is on a rise and a lot more integrated with new and
more developed technology coming up in the country. The industry registered a growth
rate of around 9.5% since the year 1999-2000. As a result, the dependency on imports to
satisfy domestic consumption demand has reduced gradually over the years. Also, new
uses of polypropylene are being discovered and to satisfy the increasing demand; more of
the current capacity of production is being utilized.
TULSYAN NEC LIMITED
INDIAN SCENARIO
The country has an estimated production capacity of 4500 thousand metric tons
annually. Of this, 60-70% accounts for the production of polyethylene (PE) and
polypropylene (PP).
India with 4 kg per capita consumption per year ranks eights in the World, against
World average of 20 kgs & developed nations above 100 kgs.
The industry demand is expected to touch 12.4 million tons by 2010-11,

becoming third largest consumer after US and China.
The polymer industry is growing at about 12-15% annually.
Over the last few years, the Indian Petrochemicals industry has witnessed
consolidation phase.
The top players-Reliance. IPCL, Haldia Petrochemicals
(HPL) and GAIL-hold the majority of the polymer capacity in the domestic
market.
Buyers in the industry have very little bargaining power against the suppliers.
Buyers are all highly vulnerable to raw material prices, which are highly
influenced by international demand and supply conditions.
MAJOR USES OF POLYMER PRODUCTS

PLASTIC TYPE
LDPE/LLDPE
USES
Consumer packaging/film, extrusion wires,
HDPE
cable coatings, etc.

Fertilizers, household packaging, woven
Polypropylene (PP)
sacks, cartoons, crates, luggage, pipes, etc

Cement packaging, monofilament yarn,
PVC
ropes, etc
Water pipe, electrical wires, cables, sheets,
Polybutadeine (PBR)
etc
Rubber
Automotive
tyres
and
tubes,
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TULSYAN NEC LIMITED

conveyor belts and footwear
DOMESTIC MANUFACTURERS
GAIL
GE Plastics India
Haldia Petrochemicals
IPCL
Karnataka Petrosynthese Limited
NOCIL
Reliance
Supreme Industries.
INTERNATIONAL MANUFACTURERS
Exxon Mobil
Honam Petrochemicals
Hyundai Petrochemicals
Samsung
Shell
Dow Chemicals
FACTORS AFFECTING PLASTIC PRICES
Changes in crude oil & natural gas prices

Economic growth of the major consuming countries such as
Industrial growth and development
International consumption demand
Government policy changes
TULSYAN NEC LIMITED
COMPANY PROFILE
Name of the Company
TULSYAN NEC LIMITED
Year of Establishment
12th October 1984
(Woven sacks)
Type of Company
Public Limited
Type of Machineries
Indigenous Machinery
Production Area
8 acres
Total Employees
1800
Total No.
of units Produced per day
34tons
Turn over
690crores per annum.
Type of production
Continuous production
ISO 9001-2008 BASED COMPANY
TULSYAN NEC LIMITED
BACKGROUND & INCEPTION OF THE COMPANY

Tulsyan NEC Limited has come into existence on account of the amalgamation of
Tulsyan Synthetics Limited, (now known as Synthetics/Plastic Division) with
National Engineering Company Limited (now known as Steel Division) both the
companies belong to Tulsyan group of Companies who have a turnover of about 350
crores. The group has interests in Steel Trading, Steel RE-Rolling Mills, Woven
Sacks and Software Development (IT related services and Commerce).
NATIONAL ENGINEERING COMPANY LIMITED (NECL), originally established
at Calcutta in the year 1947 is engaged in the manufacture of CTD Bars, MS Rounds
and other finished steel products.
In the year 1965 re-rolling facilities established at Calcutta were reallocated at
Madras. The Registered Office of the Company was also transferred to Madras in the
year 1978. The Company was taken over by the TULSYAN GROUP during 1986.
After the takeover the installed capacity of the rolling division was increased from
7200 TPA in 1985-86 to 84000 TPA in 2005-06. Addition facility to manufacture MS
Ingots to 36000 TPA and MS Billets 72000 TPA was also established. During the
year 2007-08 we have set up a hi-tech rolling mill at Gummudipoondi, with a
capacity of 150000 MT p.a with this the present capacity of TMT Bars is 2.34 lakh
MT per annum. Marketing set-up has been strengthened by expanding the dealer
network in Tamil Nadu, Kerala and Karnataka.
This division entered the exports markets during the year 1993-94 and was awarded
Regional Special Shield for outstanding performance.
A modernization-cum-
expansion plan was undertaken for the re-rolling division at Ambuttur in 1995. It
entered the Capital Market with its maiden Public Issue at a premium of Rs.10 per
Share in July 1994. The issue was over subscribed by 38 times.
TULSYAN NEC LIMITED
NATURE OF THE BUSINESS CARRIED

HDPE and PP Woven Sacks are now firmly established as a preferred means of bulk
packaging manually handled materials for storage and transport. Expect where
restricted by Government Legislation, user preference for woven Sacks has been
almost total. Of the alternate sack materials available, jute output is limited by a
stagnant jute cultivation level as well as by steadily increasing prices. Paper sacks
have also been limited by the growing pressure against tree-felling for pulp. It is
therefore, inevitable that the woven sacks market will grow steadily as Indian
industry expands.
FIBCs are more recent innovation on the international scene. The rising cost of
manual handling in developed countries has forced them to adopt more of automated
techniques for bulk product handling. In case of bulk commodities with large volume
handling requirements, tank cars for road or rail transport, bulk carries for marine
transport and conveying systems for storage are well established. Economics of scale
play an important part in cost control. However at points of distribution of such
commodities or where the commodity volumes are not so large and intermediate bulk
handling system is required. This requires the availability of a safe, convenient and
cost effective container for storage and handling. The FIBC has proved to be the
most effective container to meet these needs.
FIBCs have been standardized in size ranges from 200 kg to 4 tons depending on bulk
density and modes of transport and handling. Loss protection and safety aspects have
a major bearing on the FIBC design as do the lifting, transport, loading and unloading
methods. Further the commodity properties have a bearing on the container stability
which also needs to be taken care of by proper design. The FIBC has, therefore, a
much higher level of design engineering input when compared to the conventional
small woven sack, even though both use similar types of fabric.
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TULSYAN NEC LIMITED
VISION:
To be a global leader in Synthetic fabrics and delight the customer by creating products
that offer unmatched superiority.
MISSION STATEMENT
Our mission is to become a benchmark organization in packaging industry. For this we
are constantly striving to develop our organization, enhance professional skills and
upgrade infrastructure system so as to be highly successful in the competitive
environment of the new millennium.
Profit Maximization
Minimization of Waste
70%-80% Employment Opportunity
Employee Welfare
Creating Social Responsibility
Learning and Development
Family Focus
QUALITY POLICY
WE MAKE DIFFERENCE IN CREATING A NEW WORLD WITH HIGHER
QUALITY PRODUCTS
We shall make value addition to our customers by providing world class products
To the full satisfaction of the customer.
By enhancing productivity and efficiency.
Being internationally competitive.
With the total support of all our employees.
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TULSYAN NEC LIMITED
PRODUCT PROFILE:
PRODUCTS:
PP Woven Sacks.
Valve Bags
Lined Bags.
Coated bags.
Multi colored Printed Bags.
Fibc
Single loop bags.
Tunnel loop bags.
Four loop bags.
Coated /uncoated bags.
Container liner bags.
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TULSYAN NEC LIMITED
PRODUCTS
CAPACITY
FIBC(Flexible
2 ton
Intermediate
bulk 1ton
500kgs
container)
Tunnel
bags.
loop 2 ton
1ton
500kgs
USES
Carrying
grains.
of
sugar,
food
Used for filling food grains,

fertilizers.
Four loop bags
5ton
2ton
1ton
Specially used for chemical

and
petroleum
products
filling.
Single loop bags
1ton
500kgs
Filling
food
grains(rice,wheat,sugar)
Liner bags
100kg
50 kg
Used for fertilizers and for

chemicals filling.
Coated bags
(LAMINATED)
50 kg
Fertilizers.
50kgs
25kgs
10kgs
Cement packing
Valve bags
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TULSYAN NEC LIMITED
AREA OF OPERATION
Global operation
Tulsyan Company exports its goods to USA, Canada, Netherlands, Switerland,
Israel, UK sector.
National operation
It has also developed network at Gujarat, Chennai, Bangalore and mainly represented at
Bangalore &Chennai.
Regional operation
Company has its corporate office located at Chennai and has its manufacturing units at
Doddaballpur, Peenya, Malur and Karur.
OWNERSHIP PATTERN
TULSYAN is privately owned Company.
BOARD OF DIRECTORS & KEY MANAGEMENT PERSONNEL
PROMOTER DIRECTORS
1)
SHRI.LALITH KUMAR TULYSAN (Executive Chairman)
2)
SHRI.SANJAY TULYSAN (Managing Director)
PROFESSIONAL DIRECTORS
3)
SHRI.Soundarajan
4)
SHRI.P.T.Rangamani
5)
SHRI.A.P.Venkateswaran
6)
SHRI.S.RamaKrishnan
7)
SHRI.Sanjay Agar Walla
8)
SHRI.V.Kirubanandan
9)
SHRI.R.B.Prem Ganesh (Company Secretary).
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TULSYAN NEC LIMITED
COMPETITORS INFORMATION
Big Bag Pvt Ltd ,Bangalore .
Build met Pvt Ltd , Doddaballapur.
Gem proper6ties Pvt Ltd,Tumkur.
KCP Pvt Ltd ,Karur,Tamil nadu.
Marvel Industries, Gujarat.
Ransacks Pvt Ltd.
INFRASTRUCTURAL FACILITIES
The company has got 8 acres of land with well planned infrastructural facilities. It is
divided into different blocks which include stores department, HR department, generator
room, canteen for the workers.
The company also provides transportation facilities for procurement of raw
materials and supply of finished goods to the buyers.
Company also has huge blocks of buildings where manufacturing machineries are
kept. Machineries is divided into following type;
Woven Sacks manufacturing facility-Extruder, Looms, Stitching Machines
Liner manufacturing-Extruder and Cutting machine
Serving Thread or Stitching Yarn-Extruder, Twister and Loom

Webbing-Extruder and Loom.
Company also have well equipped chemical and physical laboratory to monitor
the quality of the product.
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TULSYAN NEC LIMITED
AWARDS AND ACHIVEMENTS
State Award For Excellence In Exports From Government Of Karnataka For The
Period 1995-1996
State Award For Excellence In Exports From Government Of Karnataka For the
Period 1996-2000
AIFTMA Export Award 1997-1998
All India Flat tape Manufacturers Association from National Association of

Plastics Woven Sacks Manufacturer for Excellence in Exports for Medium/Large
Scale Sector for the year 1997-1998.
AIFTMA EXPORT AWARD 1998-1999-11
Export Promotion Awards 2000-2002, Large/Medium Scale-II.
ISO Certified In 2002
Rated by Business Barons As One Among The 1st 500 Most Outstanding
Companies In The Country For The Financial Year 2002.
FUTURE GROWTH AND PROSPECTS

.
Manufacturing of 20541 metric tons of HDPE and PP Woven Sacks per annum.
Increase in TMT capacity by 120000 metric tons per annum.
Increase in HDPE and PP Manufacturing capacity by 2000 metric tons per annum.
Power generation of 125 Megawatt
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TULSYAN NEC LIMITED
WORK FLOW MODEL (end to end)
Receiving order
Ordering for raw material and spares
Procurement and testing of raw

materials
Production planning
Manufacturing of Bags
Assembling of components
Physical testing
Testing to ensure quality as per ISO 9001
Packing of final product as per customer requirement
Shipment of finished goods
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TULSYAN NEC LIMITED
MC KINSEY7s FRAME WORKS.

The Seven-s is a framework for analyzing organization and their effectiveness. It looks at
the seven elements that make the organization successful, or not: Strategy; Structure;
style; skills; staff; and shared values.
Consultants at Mckinsey & company developed the 7S model in the late 1970s to help
managers address the difficulties of organization change. The model shows that
organization immune systems and the many interconnected variables involved make
change complex, and that an effective change effort must address many of these issues
simultaneously.
The 7-S model is a tool for managerial analysis and action that provides a structure with
which to consider a company as a whole, so that the organizations problems may be
diagnosed and a strategy
may be developed and implemented.
The Seven S Model
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TULSYAN NEC LIMITED
STRATEGY
SYSTEMS
STRUCTUR
E
SHARED
VALUES
STYLE
SKILLS
STAFF
A.STRATEGY:
According to Mc Kinseys strategy means the action which complains in response
or anticipation of changes in its external environment, in other words it is the
determination of basis long-term objective or source of action and allocation of resources
to achieve the organization goal.
The implementation of VRS scheme in the company.VRS scheme is introduced in
the company due to the fast change in the technology in telecommunication field. The
existing manpower is treated as surplus because of their lack of knowledge and age
factor. VRS scheme is introduced to bring down these employees so as to reduce the
burden/ expenditure incurs against these employees. This as been made way to optimum
utilization of the technical staff with minimum expenditure. The company has also
introduced automatic machine for the production wherever manpower is required. the
existing non technical staffs were trained and utilized their services in the production
works.
Along with VRS scheme another scheme also introduced in the company called LINE
SCHEME. This scheme is applicable for the minimum period of six month and maximum
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TULSYAN NEC LIMITED

period of five years to reduce labor or manpower cost in the company. The company has
made sufficient saving in this regards.
B. STRUCTURE:
Structure is a basis for a specialization and co-ordination influenced primarily by strategy
and by organization activities are divided grouped and Co-ordinates the relationship
between the personnel in the organization is the formalized intentional structure of rolls
and position in the organization.
The organization structure in Tulsyan well planned the function and objective of
the organization are brought to the notice of the employees. The authority and
responsibility are properly assigned and therefore the rest is carried on smoothly.
ORGANISATION CHART
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TULSYAN NEC LIMITED

Board of Directors
Executive Chairman
MD
President
VP Marketing
Works
Mngr
VP Dpur
Quality
Analysis
GM Purchases
HR
Mngr
Accounts
Dept
Financial
Mngr
Executives
Domestic
Marketing
Mngr
Export Marketing
Mngr
Company Sec.
C. SYSTEM:
Systems includes formal and informal procedures that support the Strategy and
Structure, in other words it is the process and flows that show how an organization gets
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TULSYAN NEC LIMITED

its day-to-day things, done, this includes the procedures and routines that characterize
how an important work is to be done which is mainly looked by managers.
System followed in the finance department in the company in controlling of inventory.
Inventory turn over ratio indicates the efficiency of the firm in producing and
selling its product. It is calculated by dividing the cost of goods sold by the average
inventory
Inventory turnover=cost of goods sold/average inventory
Components of inventory
The manufacturing firms inventory consists of two components
Raw material
Work in progress
Generally , a high inventory turnover is indicative of good inventory management
low inventory turnover implies excessive levels than warranted by production and
sales activities, or slow moving or obsolete inventory. A high level of sluggish
inventory amount to unnecessary tie up in funds reduced profit and increased costs.
D .STAFF
Staff refers to the people in the enterprise and socialization into culture; the whole
departments are the companys most valuable assets. The H.R.M processes used to
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TULSYAN NEC LIMITED

develop management, ways of introducing experienced persons to the company ways of
developing to manage the carriers of employees.
Staff has been classified into two types
1 TECHNICAL
2 NON-TECHNICAL
TECHNICAL OPERATIVE
Staffs workings under the technical area are:
Assembly operator
Machine shop operator
Accountants
Machinists
Technician
NON-TECHNICAL OPERATIVE
Clerk
Drivers
Security staff
Laborers
Planner.
E.STYLE
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TULSYAN NEC LIMITED

Style stands for the patterns of actions taken by the top management over the
period of time. It is visible through reporting relationship amongst the three levels of
management or managers, organization culture a reflex ion of value system.
Having a participative kind of leadership the top management of Tulsyan
Company (p) ltd., encourages the initiative from employees and tries to implement
them, interaction sections are conducted at regular intervals. Company has free up word
communication channel.
F. SKILLS
Skills refer to the distinctive capabilities of an enterprise. In other words it is what the
company does best in ways of selecting capable persons and well trained persons.
As TULSYAN is a manufacturing organization engaged in manufacturing of high
quality sacks, technical and mechanical skills are very much required on workers
working on machines.
Clerk must posses a minimum qualification of P.U.C and officers must posses any
graduation. Promotion will also be given on the basis of experience, grade and skills.
The employees will be rated by their seniors or the managers, based on the
skills,abilities,punctuality,attendance,displine,qualityof work,etc.,
G.SHARED VALUES
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TULSYAN NEC LIMITED
1. The first and foremost value of company is the CUSTOMER SATISFACTION. The
company followed necessary actions to meet customers needs in terms of quality,
price and performance and after sales services.
2. The employees are the most important resource of company. The company treats
them with respect and dignity.
3. Integrity, fairness and equity are the guiding principle in all company business
dealings.
4. Quality is the key to productivity, improvement and cost reduction
5. Discipline and commitment created a climate in the company where employees
willing and voluntary adhere to good order and contributing positively.
6. Supplies and sub-contractors are crucial to company operation. Material loyalty and
mutual prosperity shall govern the relationship.
7. As a responsible member of society, the company has followed positive step to
promote a clean environment and take active part in efforts of the government to
enhance the quality of life.
SWOT ANALYSIS
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TULSYAN NEC LIMITED

A SWOT analysis helps find the best match between environmental trends (opportunities
and threats) and internal capabilities.
SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weakness, Opportunities and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
internal and
External factors that favorable and unfavorable to achieving that objective.
The aim of any SWOT Analysis is to identify the key internal and external factors
that are important to achieving the objective. SWOT Analysis groups key pieces of
information into two main categories: Internal and External factors, Internal factors
include Strengths and Opportunity, External factors include Weakness and Threat.
The first part of any SWOT Analysis is to collect a set of key facts about the
organization and its environment.
this will include facts about the organizations
markets, competition, financial resources, facilities, employees, inventories, marketing

and distribution system, R&D, management, environmental setting ( e,g,Technological,
political, social, and economic trends), history and reputation.
The Second part of a SWOT Analysis is to evaluate data to determine whether
they constitute strengths, weaknesses, opportunities or threats for the organization. This
may be done independently by the individuals in a group, results being compared
afterwards. It is important to note that any given fact may give rise to more than one
evaluation and so to ask- How may this fact be considered as an opportunity as well as a
threat?, How may this apparent strength turn out to be a weakness? How does this
weakness really represent strength?
STRENGTHS
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TULSYAN NEC LIMITED
Promoters of this company have more than three decades of experience in the line
of business.
Strong Management ( no raw material problem)
Products have good demand in the market.
Available in many designs and colours.
Timely delivery.
Good relationship with vendors which help to maintain smooth running of the
business activities.
Good relationship with suppliers.
WEAKNESSES
Unskilled workers.
Employees inability to adapt to changes in the technology.
Lack of technological updating in the organization.
Lack of Maintenance department.
Absence of R & D department.
OPPORTUNITIES
Generates job opportunities.
Demand and Supply gap is very wide in the FIBC production, so the company can
take advantage of demand and supply gap.
Reducing service cost.
Improving customer retention.
Develop and retain the best talent and resources.
New business alliances with clients abroad.
Different products can be produced using polymer.
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TULSYAN NEC LIMITED

THREATS
Competitors.
Government rules and regulations.
Frequent power failure generators.
Customers rejection of the goods produced.
Society opposing the usage of plastics.
Union members.
Increase in the cost of raw materials, transportation, power and so on, so the
expenditure is also increasing.
Entry of foreign investors with improved technology and reduced cost of

production can make the unit unviable.
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TULSYAN NEC LIMITED
SUMMARY OF LATEST ANNUAL REPORT OF THE COMPANY.

When we compare the figures of net worth of the company, it has been increased
as compared to
2003-04 from 1996.87 to 3984.53 in the 2005-06
The working capital (current arrest, loans & advances less trade dues and current
liabilities & provisions) was 86%, 87% &90% of the sales during the last three years
ending 31st march 2006.
Inventory has been railed by 6, 40,45,191,33 to 9,82,89,868.69 this shows
blockages in stock(unsold stock)
The profitability position of the company is satisfactory. If we see net profit of the
company in the present year 10,87,40,526.74 when compare to previous yr7,47 82 953.64
which shows increased by 3,39,57,573.10 which is 45% increased.
Incre
paid is 65,27,907.53in the current year when compare to previous year
77,65,237.29 which shows less payment of loan, which indicates less risk.
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TULSYAN NEC LIMITED

Learning Experience:
It was a dream come true for me who wished to experience as to how a
huge factory works, it was a great experience working in Tulasyan pvt ltd, where I learnt
many things about the functioning of the company in accordance with the present market
trends. The interaction with the company gave me an insight and a first hand experience
of the industrial scenario in the competitive outside the realms of the institute.
The main purpose of the organization study is to make the students acquainted
with the practical knowledge about the overall functioning of the organization. It gives
opportunity to study the human behavior and also makes one ready to face different
situations, which normally would come across while on work in the office or factory
environment.
In the beginning of the training, I went to different production sites where the
stitching of the bags is taking place, there I understood as to how the production work is
divided and how the responsibilities are allocated. The production here is carried on the
basis of customer cell concept. This cell is mainly created with the purpose of excelling
the customers expectation in terms of quality, delivery and a competitive environment.
After the production site in the subsequent weeks I went to different departments
like production, marketing, finance, quality, HR, planning, stores etc. I was able to
understand the importance of each department and their contributed towards the
achievements of the company objectives. I also learnt how the companies always try to
feel the pulse of the customers, because customers are the purpose of the business. More
importantly, I am able to understand the different tactics of the companies to attract and
retain the customers. I had interaction with the each of the departmental heads and I came
to know the real situation, duties, responsibilities and functions of the departments. In
spite of their busy schedules there were very much interested to explain us different
concepts.
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TULSYAN NEC LIMITED

I went to the stores where all the materials were racked and the quality check was
carried on every material. Here they demonstrated me as to how the materials are
received, documentation is done how quality checking is done for each and every
component and how to deal with defective materials and actually the stores department
will work in case of emergency when there is shortage of materials.
I could view a friendly atmosphere in the office premises among all level. It
makes the employees feel relaxed and well not go through a stress at time of their work.
This boosts the morale of the employees and promotes a sense of responsibility and good
relationships and most importantly it improves the quality.
STATEMENT OF THE PROBLEM

31
TULSYAN NEC LIMITED

Recent studies have shown that in many manufacturing companies the inventory
investment can range from 20 to 35 percent of its total investment capital. Inventory
management must have its aim the reduction and control of that investment in inventory.
A study is conducted to analyze and interpret the Inventory
Management and Control Techniques at TULSYAN. Management and control of
inventory is a problem common to all organization in any sector of the economy.
The problem of inventory management not only confine to profit making
business firms. This is the main basis of the study. It is found that large number of firms
is adopting traditional methods of inventory management even though various new
methods have entered the Indian industry.
The present study will enable the existing method of inventory followed by
TULSYAN and further to have a relock on their practice and to suggest effective
measures for reducing excessive inventories in TULSYAN, which also would benefit
other private sector undertakings in framing their inventory policy.
TITLE OF THE STUDY
A study is conducted to analyze and interpret the
Inventory Management and Control Techniques at TULSYAN
OBJECTIVES OF THE STUDY
To know the overall effectiveness of inventory management in TULSYAN.
To study the methods of inventory control
To study the materials stored
To know how the procurement of material is done.
To study the inventory valuation at TULSYAN.
To study the reason for excess inventory.
To identify the areas of inefficiencies in inventory management and suggest

measures.
32
TULSYAN NEC LIMITED

SCOPE OF THE STUDY
The scope of the study confines to TULSYAN COMPANY (P) LTD. The
study is related to inventory management and control, which has a number of
planning, purchasing, material receiving, stores control, material handling and
inventory control
A study was conducted in TULSYAN to analyze the above mentions
functions in brief and inventory control in detail. Maintaining of optimum level of
inventory it is the difficult task for the organization. Is to be maintained in such a way
that neither excessive nor in sufficient. Excessive investment of inventory leads to
blocking of funds which does not provide any return. In sufficient inventory leads to
establish optimum level of inventory for the organization.
METHODOLOGY OF THE STUDY
Methodology implies the science of the method of study; The data is mainly
collected through secondary sources direct contract with work and other people related to
the firm serve as the primary data.
Source of data collection
The main sources of data collection are as under.
Primary sources
Primary data has been collected through direct contact with officials of the
concerned department, interview schedules observation etc. During observation notes
were made and compiled for the study. Interaction with executives of the finance
department and stores section.
Secondary sources
1. Manual of stores department
2. Annual report of the company.
3. The website of the company.
33
TULSYAN NEC LIMITED

LIMITATIONS OF THE STUDY
1. The inventory management and Facility Management as a field of study are by
itself very wide. Thus this act as a limiting factor.
2. Based on the findings of the report, the overall organization effectiveness cannot
be questioned.
3. The duration of the project is limited.
4. The perceptions of customer, suppliers and other interactions have not been
considered.
5. As the company is dealing in different varieties of products, the inventory ratios
are based on overall materials of the company.
DEFINITIONS OF CONCEPTS INVENTORY MANAGEMENT
Definition
The term inventory includes material-raw, in process, finished packaging spares
and others stocked in order to meet and unexpected demand or distribution in future
CONCEPTUAL BACKGROUND
The concept in TULSYAN about the inventory management is that it is one of
the tool of the management where the organization as to secure efficiency and
effectiveness. This is because it is here that the funds are used and efficiency depends on
how judiciously the amount is spent and inventory is managed. To ensure qualitative
work the company and efficient work the companys inventory policy has purchase
policy, materials management policy and quality assurance policy.
The entire functions have been divided into various sub-functions like material
management, purchase, stores and accounts department.
34
TULSYAN NEC LIMITED
INVENTORY MANAGEMENT
Introduction: Inventory constitutes the most significant part of any companys current
assets; they constitute approximately 60% of the current assets in public limited
companies. Because of the large size of inventories maintained by firms, a considerable
amount of funds is required to maintain them. It is, therefore absolutely imperative to
manage inventories efficiently and effectively in order to avoid unnecessary investment.
NATURE OF INVENTORIES
The various forms is which inventories exists in a manufacturing company are.
Raw materials are those basis inputs that are converted into finished products
through the manufacturing process. They are purchased and stored for future
productions.
Work-in-process inventories are semi-finished manufacturing products.
Finished goods inventories are those completely manufactured products, which

are ready for sale. Stocks of finished goods facilitate smooth marketing
operations. Thus inventories serve as a link between the production and
consumption of goods.
NEED TO HOLD INVENTORIES

Maintaining inventories involves tying up of the companys funds and incurrence of
storage and handling costs. There are three general motives.
Transaction motive emphasizes the need to maintain inventories to facilitate

smooth production and sales operations.
Precautionary motive necessitates holding of inventories to guard against the

risk of unpredictable changes in demand and supply forces and other factors.
Speculative motive influences the decision to increase or reduce inventory levels

to take advantage of price fluctuations.
Thus a company should maintain adequate stock of materials for a continuous supply to
the factory for an un-interrupted production.
35
TULSYAN NEC LIMITED
The specific benefits that accrue from holding inventories are.
Avoiding lost sales: without goods on hand, which are already to be held, most
firms would lose business. Though some customers are willing to wait if goods
are not available, this cannot be taken as a breathing space for not holding
inventory. It may so happen in the absence of inventory that the customer not
getting goods from the company may look towards company competitor.
Gaining quantity discounts: In returns for making bulk purchases, the supplier
of the goods may give discount on the prices of supplies. Thus the willingness of
the company to buy in bulk and get discount on regular price will reduce the cost
of goods sold there by contributing to profit margin.
Achieving efficient production runs: Each time a firm sets up workers and
machines to produce an item, start-up costs are incurred. These are then absorbed
as production begins.
The longer the runs, the smaller the costs to begin
producing the goods, longer runs involve lower costs as compared to frequent
setups.
Their benefits arise because inventories provide a buffer between
purchasing, producing and marketing goods.
Check the seasonality of materials: It is well known that certain materials are
available only in particular season. This is very much true in agro-based
industries. This necessitates the company to procure its entire production ends in
that season and take the risk of storage of materials. Thus holding of inventories
in this case provides a vital link in continuation of production.
36
TULSYAN NEC LIMITED
EVALUATION
OF
SYSTEM
AND
PROCUREMENT
OF
INVENTORY IN THE COMPANY

Being a heavy earth moving equipment manufacturing company, it has
vast inventory field. Nearly 62 stores are there in the company, which contains
inventory of imported and indigenous items.
Each store contains 60 100 types of items of high value, medium value
and low value in nature. Managing and controlling in the company is a complicated job
and are done by an engineer and his staff. He has to report directly to the stores chief
materials manager. He has to collect inventory status from materials planning
department and inventory value from accounts department. Inventory manager keeps a
keen watch on non-moving items and gives information to surplus committee, which
consists of department heads to discuss about the non-moving items. If the items are in
excess without using or moving for more than 2 years are called non-moving items.
In surplus committee this will be discussed and a proper solution for the
problem is identified. The inventory manager has to give explanation for non-moving
items and he must see the inventory to keep in its norms. He has to verify the
inventories whether they are under the norms of the company with the help of stores
department if not have to take necessary action.
STOCK LEVEL
For items which are consumed regularly maximum, minimum and reorder levels are maintained and automatic replenishment action is taken when the stock
level reaches reorder level, initiating MRP for procurement action. These levels are
fixed on the basis of past 2 years consumption. For majority items
Minimum Level : 2 months consumption
Reorder Level
: 4 months consumption
Maximum Level: 6 months consumption

Order Quantity : 4 months consumption
37
TULSYAN NEC LIMITED
In the view of the need for reducing the inventory to the barest minimum, consistent
review of the stock levels with reference to lead time required for procurement and also
by phrasing deliveries is carried.
REPLENISHMENT ACTION
When the stock level comes down to the reorder level or near about, a material
procurement advice is raised giving all relevant details such as full description of
materials with class, stock number, specification, user department, part consumption and
suggest change of level where required. This will be put up to the stores chief for
approval before being converted into material purchase request. After approval, its
forwarded to the purchase department for action and its followed up until receipt of
materials.
Inventory Management and control Techniques.

Because of high costs involved in inventories, their proper management and
control assume considerable importance. 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. The actual
steps taken to maintain the stock levels or stock records refer to inventory control.
Factors Influencing Inventory Management and Control

Several factors influence inventory management and control. They are
1. Type of the product.
2. Type of Manufacture.
3. Volume of output.
4. Other factors like .
5. The objectives of the company.
38
TULSYAN NEC LIMITED

6. The qualification of the staff personnel.
7. The capabilities of personnel.
8. The nature and size of inventories and their relationship to other functions
in the company.
9. The capability of present and future data processing equipment.
Benefits of Inventory Management and control

Proper management and control of inventories will result in following benefits to
an organization.
1. Inventory control ensures and adequate supply of material, stores, etc
2. It keeps down investment in inventories
3. It facilitates purchasing economies
4. It eliminates duplication in ordering or in replenishing stocks.
5. It permits a better utilization of available stocks.
6. It provides a check against the loss of materials.
7. It facilitates cost accounting activities
8. It enables the management to make cost and consumption comparisons between
operations a periods.
INVENTORY CONTROL TECHNIQUES
Several techniques of inventory control are used 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 inventory and all stages, i.e., from the stage of receipt from supplier to
the stage of their use. The techniques most commonly used are.
1. Always better control (ABC) classification
2. High, medium and low (HML) Classification.
3. Vital, essential and designable(VED) Classifications
4. Fast moving, slow moving and non-moving(FSN)
39
TULSYAN NEC LIMITED
5. Scarce, difficult and Easy to obtain (SDE)

6. Economic order quantity (EOQ)
7. Level Setting
8. Material Requirement Planning
9. Two bin system
1. Always better control (ABC) analysis
One of the widely used techniques for control of inventories is ABC analysis. An
ABC analysis offers an important solution to the problem of a scientific planning and
control of inventories and is an important technique of inventory management. It is based
upon the value of different items constituting an inventory.
The idea underlying an ABC analysis is in the recognition of the principle that
some items of inventory are more important than others. Thus items are classified under
broad categories A, B and C, which may differ form unit to unit. The ABC technique
enables an enterprise to keep its investments low and avoid stock outs of critical items. Its
objective is to reduce the minimum stock as well as the working stock.
Generally a category items constitutes about 70% of the total value and
about 15% of the total number. Items of low value constitute 10% of the total value and
about 60% of the total number. An item of category constitutes about 20% of the total
value and about 25% of the total number. Items of A category are subject to strict
control with regard to purchase, storage and use items of B category are subject to
moderate control. Items of C category are not subject to much control.
2. High, Medium and low (HML) Classification
The classification is made on the basis of the unit value of an item. Some items
may be low classification follows the same procedure adopted in the ABC classification.
Only difference is in (HML) classification, value is the criterion and not the annual
consumption value.
40
TULSYAN NEC LIMITED
3. Fast moving, slow moving and Non-moving (FSN)

FSN classification is based on the pattern of issues form stores and is useful in
controlling obsolescence.
To carry out FSN analysis, the dates of receipt are the last date of issue which ever a
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.
4. Economic order quantity
It can be described as the basic How much to buy model. It is shortened as
EROS and is the oldest and widely know inventory model. It dates back to 1915. The
purpose of using the EOQ model is to find that particular quantity of order, which
minimizes total inventory cost. EOQ is the technique, which solves the problem of the
materials manager. EOQ is the order size at which the total cost, comprising ordering cost
and plus carrying cost is the least. EOQ will be fixed at a level where the total of ordering
cost and carrying costs will be minimum. EOQ can be calculated by a mathematical
formula.
Square Root of (2AQ)/C
Where:
A refers to Annual consumption in units.
O refers to ordering cost per order.
C refers to carrying cost per unit per annum.
EOQ FORMULA = Square Root (2 x Annual Requirements x Ordering
Costs)/Unit cost x Inventory carrying cost.
41
TULSYAN NEC LIMITED

5. Material Requirement planning:
It is fairly recent technique that has been introduced to control inventories. IT is
based on computer technology; material requirement planning mainly helps in ensuring
in arrival of material exactly when it is needed for production. At the same time it reduces
the length of time material s are held in inventory. Material requirement plans and
controls goods on order and generates data, which helps in determining when and what
specific material will be needed to meet the previously planned production schedules
6. Level setting
Setting up of inventory levels, such as maximum level, minimum level reorder
level, danger level, and average stock level. The above levels are calculated to enable,
when a storekeeper should place an indent for fresh.
Stock and also to avoid over stocking of any material, at the same time to ensure
flow of sufficient material to production process. The main purpose of fixing the levels is
to control the investment on inventories.
A.
Minimum Level
This is limit below, which the stock should not be allowed to fall. IT is fixed on the
basis of average consumption and average lead-time required procuring the item. The
main purpose of fixing this level is to ensure adequate stock for continuous production
and sales.
Minimum Level = Reorder Level (Normal Consumption*Normal reorder period).
42
TULSYAN NEC LIMITED

B.
Maximum level.
This is the limit or level beyond which the stock of an item should an exceed. This
level is fixed for avoiding overstocking of raw materials and its associated risks.
Maximum level = Reorder level + Reorder quantity (EOQ) - (Minimum *
Minimum Reorder Period).
C.
Recorder Level
It is the point fixed between maximum and minimum level at which the
storekeeper has to initiate the action to obtain fresh supplies of materials. This point will
usual be slightly higher than the minimum stock to cover such emergencies as abnormal
usage or unexpected delay in supply. Recorder level depends on lead-time, rate of
consumption and economic order quantity
Reorder Level= Maximum consumption * Minimum Reorder Period.
D.
Danger level
It is the level below the minimum level. When the stock reaches this danger level,
urgent action for purchase is necessary. As normal lead-time is not available it is

necessary to resort to unorthodox purchase resulting in higher purchase cost.
Danger level = Minimum Consumption * Emergency Reorder period.
43
TULSYAN NEC LIMITED

DATA COLLECTION AND ANALYSIS
INVENTORY COMPARISION.
Comparison of Inventory with the following.
Inventory to Working Capital
Inventory to Total Current Assets
Inventory to Total Assets
Inventory Turnover Ratio
Inventory to Net sales
INVENTORY TURNOVER RATIO

TABLE SHOWING INVENTORY TURNOVER RATIO
PARTICULARS
2006-07
2007-08
2008-09
COST OF GOODS
SOLD(Rs)
29441.05
39160.97
47282.29
AVERAGE
INVENTORY(Rs)
5119.85
6203.22
6042.51
RATIO
5.75
6.31
7.82
44
TULSYAN NEC LIMITED

ANALYSIS:
Above table reveals that inventory turnover ratio was 5.75, 6.31, and 7.82 in the
year from 2006-2009 respectively.
GRAPH SHOWING INVENTORY TURNOVER RATIO
INTERPRETATION:
From the above data it can be analyzed that the inventory turn over ratio of 200809 is comparatively higher than remaining two years this is due to increase in cost of
goods sold and decrease in average stock.
The percentage of increase in cost of goods sold in the year 2008-09 is higher
than two years. Percentage of increase in average stock is less than the cost of goods sold
off in past two years. So the inventory turn over ratio in 2008-09 is greater than past two
years.
45
TULSYAN NEC LIMITED

INVENTORY TO WORKING CAPITAL RATIO.
= Inventory
x 100
Working Capital
TABLE SHOWING INVENTORY TO WORKING CAPITAL.

PARTICULARS
2006-07
2007-08
2008-09
INVENTORY(Rs) 216272439
276769841
198580207
WORKING
CAPITAL(Rs)
288337285
382395371
286228632
RATIO
75.006
72.377
69.378
ANALYSIS :
Above table reveals the working capital ratio was 75.006,72.377,69.378 from
2006-09 respectively showed the decreasing trend.
46
TULSYAN NEC LIMITED
GRAPH SHOWING INVENTORY TO WORKING CAPITAL
INTERPRETATION:
From the above data we can say that, only in the year 2008-09 company
has managed their inventory efficiently which is below 75% when compared to
previous years, where it is more than 75%. As per the standard or idle inventory to
working capital ratio, the inventories should not absorb more than 75%of the working
capital.
47
TULSYAN NEC LIMITED
INVENTORY TO NET SALES.

Inventory
* 100
Net sales
TABLE SHOWING INVENTORY TO NET SALES
PARTICULARS
2006-07
2007-08
2008-09
276769841
198580207
NET SALES(Rs)
1606811034
1690008568
1756984041
RATIO
13.45
16.37
11.30
ANALYSIS:
Above table shows the increasing rate of net sales the inventory to net
sales ratio is 13.45,16.37&11.30
48
TULSYAN NEC LIMITED
GRAPH SHOWING INVENTORY TO NET SALES
INTERPRETATION:
The table shows that inventory of the company has decreased in the year 200809 . the size of the inventory bares a relation with the sales of an undertaking. The
table shows that inventory has decreased where as the increase in net sales in 200-09.
the effective regulation of inventory calls for the maintenance of appropriate level of
inventory. All though inventory is necessary to run a plant efficiently the excess of
inventory serves no purpose and also affects the profitability of the firm.
49
TULSYAN NEC LIMITED

INVENTORY TO CURRENT ASSETS
= Inventory
x 100
Current assets
TABLE SHOWING INVENTORY TO CURRENT ASSETS
PARTICULARS
2006-07
2007-08
2008-09
276769841
198580207
CURRENT
ASSETS(Rs)
RATIO
556698312
703539927
567646299
38.84
39.33
35.02
ANALYSIS:
Current assets to inventory ratio is 38.84,39.30&35.02 in the year 2006-09
respectively.
50
TULSYAN NEC LIMITED

GRAPH SHOWING INVENTORY TO CURRENT ASSETS
INTERPRETATION:
From the above table and graph shows the decrease trend in current assets to
35.02%as on 2008-09 which also shows the decreasing order of both inventory and
current assets.
INVENTORY TO TOTAL ASSETS

Inventory
*100
51
TULSYAN NEC LIMITED

Total assets
TABLE SHOWING INVENTORY TO TOTAL ASSETS
PARTICULARS
2006-07
2007-08
2008-09
276769841
198580207
TOTAL
ASSETS(Rs)
RATIO
629683473
808492773
755207309
34.34
34.23
26.29
ANALYSIS:
The above table showea the decreasing trend of inventory to net sales ratio from
34.34% to 26.29% . The inventory and the total assets of the company also showed the
decreasing trend .
GRAPH SHOWING INVENTORY TO TOTAL ASSETS
52
TULSYAN NEC LIMITED
Interpretation
The table shows the decreasing ratio of total assets over the inventory to 26.29%
in the year 2008-09 due to decrease in the total assets and also inventory which also
showed the decreasing trend from past year also.
Table showing various components of inventories of different time period:
53
TULSYAN NEC LIMITED

Inventories
2006-07
2007-08
2008-09
Rs
Rs
Rs
in %
Raw material
lakhs
2064.36
Stores &spares
in %
29.707
lakhs
2115.64
179.65
2.5
Finished stock
4531.35
Goods in transit
173.62
Scrap
2409MT
Total
6948.98
in %
36.25
lakhs
2044.41
31.76
194.88
3.33
229.04
3.55
65.20
3532.37
60.52
4169.10
64.78
2.49
4410MT
100%
5836.16
5141MT
100%
6435.66
100%
ANALYSIS:
The table shows the total inventories of the company. Inventories consist of rawmaterials, spares& stores and finished goods.inventories have showed the decresed
from 6948.98 to 6435.66 from 2006-09.
Graph showing components of inventory
54
TULSYAN NEC LIMITED

2006-2007
2007-2008
2008-2009
55
TULSYAN NEC LIMITED
Interpretation
From above chart it is clear that the ratio of raw-material have showed the increasing
trend in 07-08 and has decreased to 31.76. the stocks& spares increased by 3.55 times
and finished goods have decreased in 2008-09 by 64.78 times as a result of decreased in
finish good in 08-09. scrap have increased to 5141 MT in 08-09.
FSN classification.
56
TULSYAN NEC LIMITED

Table showing FSN classifications:
Head of
account
ADHESIVES
BEARINGS
ELECTRICAL
SPARES
EXTRUDER
SPARES
FASTNERS
FIBC
ACCESSORIES
FUEL-DIESEL
GENERAL
HARDWARE
GENERATOR
SPARES
GENERAL
LIGHTING
LOOM SPARES
HDN4 LOHIA
LOOMS SPARESGCL
SULZER SPARES
LUBRICANTS
NEEDLE LOOM
SPARES
NICROME WIRE
PACKING
MATERIAL
PRINTING INK
Fast moving
items
Slow moving
items
Non moving
items
SHELLAC
BROWN TAPE 6"
6003, 6002
1205. 1206
CARBON BRUSH
TIMER
NYLON CAM,
ALLEN BOLTS
8X60,8X30
FILLER CARD,
WOODENPALLET
DIESEL
WELDING ROD,
HACKSHAW BLADE
AIRCLEANER
ELEMENT
TUBELIGHT,
STARTER
ALU.BEARING
BLOCK
OIL SEALS
FILTERMESH
GRUB SCREW
FRONT END BUSH

PROJECTILE
GRIPPER
STITCHING OIL
STUD
LATCH NEEDLE,
NICROME WIRE 18G
GEAR 8209
BROWN TAPE2"
SIZE 6000, 6001,
608, 63206
173 CONTACTOR,OL
RELAYS
TWINE, BALE PATTI

BLACK INK, BLUE
INK
PEDAL PLATES
0
INTERLINER CLOTH
0
COPPER ROD
HOSES
GASKET
MERCURY BULB
BOBBIN HOLDER
E RING STAND
WARP STPOOER
SPRING
HEALDWIRE
220 OIL
0
0
HEALD FRAMES
0
WHITE INK
TABLE SHOWING CLASSIFICATION OF FSN ITEMS

CATERGORY
NO OF ITEMS
57
TULSYAN NEC LIMITED
FAST MOVING ITEMS
29
SLOW MOVING ITEMS
16
NON MOVING ITEMS
11
TOTAL
56
ANALYSIS
the above table shows the number of items of FSN classification. The fast
moving items consists of 29 items. 16 items are slow moving and 11 items are non
moving.
GRAPH SHOWING CLASSIFICATION OF FSN ITEMS
FINDINGS
58
TULSYAN NEC LIMITED
Inventory turnover ratio as increased from 5.75 from in 2006 to 7.82

times. It indicates that inventory turnover was good.
Percentage of working capital was decreased from 75.006 to 69.378 in

2008-09.
The percentage inventory in current asset was 38.84 in 2006-07 and

increased up to 39.33 in 2007-08 but 2008-09 decreased to 35.02.
The total asset of company increased in 2007-08 up to 34.23times but

decreased to 26.29 times in 2008-09.
The net sales of the company as increased in 2008-09 as a result of this

inventory to net sales as decreased 11.30 times.
There is a increase scrap of 5141 MT in 2008-09.
The technique adopted by TULSYAN for Inventory Control is FSN

analysis and FIFO method.
Days of holding inventory are also high.
SUGGESTIONS
59
TULSYAN NEC LIMITED
The company was maintaining good inventory turnover ratio. It is

advice to company carry on same ratio.
The company is advance to maintain minimum inventory to

increase the inventory in current assets.
The company is advance to maintaining short span time for the

conversion in to cash.
Inventory to working capital ratio must increase because to remove

man moving inventory which are the nature debt capital for the
origination.
FSN classifications must be periodically revised.
Procedures for disposing obsolete and surplus inventories must

be simplified.
Modern techniques of inventory management have to be followed

in spite of the traditional methods.
CONCLUSIONS
60
TULSYAN NEC LIMITED
The main objective of the study is to analyze and evaluate the effectiveness of
Inventory Management system adopted at TULSYAN (P) LTD.,
In conclusion one thing has to be mentioned is that the company does not follow
any standard system of cost control techniques like ABC Analysis and it is not
successful in converting inventory into cash at shorter period of time.
Review of stock is done in once in 3 months. But it is suggested that the

frequency of verification should be done once in a month.
It is clear that the systems and procedures adapted to purchase, planning, control,
and storage and material accounts are very effective and systematic in achieving
organizational goals.
The stores department has to look in to new techniques, which can reduce stock of
material and smoothen the functioning of the same.
TULSYAN NEC LIMITED

61
TULSYAN NEC LIMITED

BANGALORE BRANCH
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH2008
DISCRIPTIONS
Sales & Other Receipts
Other Income
Deduct: Cost Of materials and other
expenses Depreciation
PROFIT FOR THE YEAR
Taxation
Current Tax
Fringe Benefit Tax
Deferred Tax
PROFIT AFTER TAXATION
Amount available for appropriation

APPROPRIATIONS
Transfer to General Reserve
Proposed Dividend
Tax on Proposed Dividend
BALANCE TRANSFERRED TO
HEAD OFFICE A/C
Sch Rs
Ps
No 31 st Mar 2008
Rs
Ps
31 st Mar 2007
9
10
1690008568.53
12412113.85
1606811034.1
1929955.2
1702420682.38
1608740989.3
1639028461.95
21290635.19
1660319097.14
42101585.24
1551000293.7
19020262.3
1570020556.0
38720433.3
0.00
632647.00
2063593.00
0.00
498264.00
2276319.0
39405345.24
35945850.34
39405345.24
35945850.3
39405345.24
3594850.3
11
TULSYAN NEC LIMITED

BANGALORE BRANCH
BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH-2008
62
TULSYAN NEC LIMITED
DESCRIPTION
SOURCES OF FUNDS
1. SHAREHOLDERS FUND
a. Share capital
b. Reserves & surplus
2. LOAN FUNDS
a. Secured loans
b. Unsecured loans
Sch
no
31st Mar 2008
31st Mar 2007
1
2
0.00
0.00
0.00
0.00
3
4
1430879736.47
113660845.49
1053296686.68
99606257.19
-817573535.88
39405345.24
42120382.00
-599222109.7
35945850.34
40056789.00
808492773.32
62963473.50
483279674.30
178210320.92
389394076.4
158444672.7
6
7
107900.00
9772322.1
703539927.57
111415054.51
-321144556.14
556698312.7
90567841.0
-268361027.8
493810425.94
378905125.9
808492773.32
629683473.4
3. HEAD OFFICE
Add: profit for the year
4. DEFFERED TAX LIABILITY
TOTAL
APPLICATION OF FUNDS
1. FIXED ASSETS
Gross block
Less depreciation
(a) Net Block
2. INVESTMENTS
3. CURRENT ASSETS,LOANS&ADVANCE
a. Current assets
b. Loans & advances
Less: current liabilities & provisions
NET CURRENT ASSETS
TULSYAN NEC LIMITED

63
TULSYAN NEC LIMITED

BANGALORE BRANCH
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH2009
DISCRIPTIONS
Sales & Other Receipts
Other Income
Deduct: Cost Of materials and other
expenses Depreciation
PROFIT BEFORE EXCEPTIONAL
ITEMS
PROFIT FOR THE YEAR

Taxation
Current Tax
Fringe Benefit Tax
Deferred Tax
PROFIT AFTER TAXATION
Amount available for appropriation
APPROPRIATIONS
Transfer to General Reserve
Proposed Dividend
Tax on Proposed Dividend
BALANCE TRANSFERRED TO
HEAD OFFICE A/C
Sch Rs
Ps
No 31 st Mar 2008
Rs
Ps
31 st Mar 2009
9
10
1756984041.75
13206768.28
1690008568.53
12412113.85
11
1770190810.03
1690862838.53
25047330.35
1702420682.38
1715910168.88
54280641.15
1639028461.95
21290635.19
1660319097.14
42101585.24
0.00
632647.00
2063593.00
19017912.15
574,000.00
2378352.63
39405345.24
16065559.52
39405345.24
16065559.52
39405345.24
TULSYAN NEC LIMITED

BANGALORE BRANCH
64
TULSYAN NEC LIMITED

BALANCE SHEET FOR THE YEAR ENDED 31ST MARCH-2009
DESCRIPTION
SOURCES OF FUNDS
5. SHAREHOLDERS FUND
a. Share capital
b. Reserves & surplus
6. LOAN FUNDS
a. Secured loans
b. Unsecured loans
Sch
no
31st Mar 2009
1
2
3
4
1542243991.31
116471106.18
1430879736.47
11366.845.49
-9641287977.77
16065559.52
44555531.63
-817630332.88
39405345.24
42177179.00
755207390.87
808492773.32
514478066.30
203090180.31
483279674.30
178210320.92
107900.00
107900.00
567646299.67
157482972.27
-281417667.05
70359927.57
111415054.51
-321144556.14
443711604.89
493810425.94
755207390.88
808492773.32
7. HEAD OFFICE
Add: profit for the year
8. DEFFERED TAX LIABILITY
TOTAL
31st Mar 2008
APPLICATION OF FUNDS
2. FIXED ASSETS
Gross block
Less depreciation
(b) Net Block
2. INVESTMENTS
3. CURRENT ASSETS,LOANS&ADVANCE
c. Current assets
d. Loans & advances
Less: current liabilities & provisions
NET CURRENT ASSETS
5
6
7
8
Bibliography
65
TULSYAN NEC LIMITED

SUBJECT
Financial
management
Financial
Management
AUTHOR
Prasanna Chandra
PUBLICATION
Tata McGraw hill
B.S.Raman
United Publication
Production and
Operation
Management
Financial
Management
P.Ashwathappa and K.Shridhar

Bhatt
Himalaya publishing
House
P.K.Khan and M.Y.Jain
TATA McGraw hill
Website Address:www.rediffmail.com
www.tulsyannec.com
News Papers:Business Line
66

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TULSYAN NEC LIMITED

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

Some 40 years later,

Celluloid (a hard plastic formed from nitrocellulose) was successfully commercialized.

With continued research into the science and

applications of polymers, they are playing an ever increasing role in society.

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

Gas Authority of India Limited

Karnataka Petrosynthese Limited

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

The industry demand is expected to touch 12.4 million tons by 2010-11,

The polymer industry is growing at about 12-15% annually.

The top players-Reliance. IPCL, Haldia Petrochemicals

MAJOR USES OF POLYMER PRODUCTS

cable coatings, etc.

sacks, cartoons, crates, luggage, pipes, etc

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

Karnataka Petrosynthese Limited

FACTORS AFFECTING PLASTIC PRICES

Changes in crude oil & natural gas prices

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

TULSYAN NEC LIMITED

12th October 1984

690crores per annum.

ISO 9001-2008 BASED COMPANY

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

BACKGROUND & INCEPTION OF THE COMPANY

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

NATURE OF THE BUSINESS CARRIED

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

70%-80% Employment Opportunity

Creating Social Responsibility

Learning and Development

To the full satisfaction of the customer.

By enhancing productivity and efficiency.

Being internationally competitive.

With the total support of all our employees.

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

Used for filling food grains,

Four loop bags

Specially used for chemical

Single loop bags

Used for fertilizers and for

SCT INSTITUTE OF TECHNOLOGY

TULSYAN NEC LIMITED

SHRI.LALITH KUMAR TULYSAN (Executive Chairman)

SHRI.SANJAY TULYSAN (Managing Director)

SHRI.Sanjay Agar Walla