A STUDY ON

INVENTORY MANAGEMENT

ULTRATECH PVT LTD

 ABSTRACT

This project is aimed at developing a desktop based application named Inventory

Management System for managing the inventory system of any organization. The Inventory
Management System (IMS) refers to the system and processes to manage the stock of
organization with the involvement of Technology system. This system can be used to store the
details of the inventory, stock maintenance, update the inventory based on the sales details,
generate sales and inventory report daily or weekly based. This project is categorize
individual aspects for the sales and inventory management system. In this system we are
solving different problem affecting to direct sales management and purchase management.
Inventory Management System is important to ensure quality control in businesses that
handle transactions resolving around consumer goods. Without proper inventory control, a
large retail store may run out of stock on an important item. A good inventory management
system will alert the wholesaler when it is time to record. Inventory Management System is
also on important means of automatically tracking large shipment. An automated Inventory
Management System helps to minimize the errors while recording the stock
 INDEX

S.NO NAME OF THE CHAPTER PAGE NO.

CHAPTER-1 INTRODUCTION
NEED OF THE STUDY
OBJECTIVES OF THE STUDY
SCOPE OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS

CHAPTER-2 REVIEW OF LITERATURE

CHAPTER-3 INDUSTRY PROFILE

COMPANY PROFILE

CHAPTER-4
CODING
IMPLEMENTATION

CHAPTER-5 FINDINGS
SUGGESTIONS
CONCLUSION
BIBILIOGRAPHY
 CHAPTER - I

INTRODUCTION
 INTRODUCTION

In this competitive business world each and every business organization need inventory

management system for determining what to order, when to order, where and how much to

order so that purchasing and storing costs are the lowest possible without affecting production

and sales. Thus, inventory management control incorporates the determination of the

optimum size of the inventory-how much to be order and when after taking into consideration

the minimum inventory cost.

The over all inventory management includes design and inventory control organization with

proper accountability establishing procedure for inventory handling disposal of scrap,

simplification, standardization and codification of inventories, determining the size of

inventory holdings, maintaining record points and safety stocks, economic order quantity,

ABC analysis and VALUE analysis and finally framing an INVENTORY MANUAL.

MEANING AND NATURE OF INVENTORY

Inventory can be referred to as 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.

In large companies inventory place a most significant part of the current assets. The business

has about 15 to 30% of inventories in total assets.

Inventory is composed of assets that will be sold in feature in the normal course of business

operations. The assets which firms stores as inventory is anticipation of need are raw

materials, work in progress and finished goods.

MEANING OF INVENTORY MANAGEMENT

Inventory management consists of maintaining for a given financial investment an adequate

of something in order to meet and accepted pattern of demand. Inventory considers control

over costs of inventory on one hand and handles the size of inventory on other hand.

Controlling investments in inventories constitute crucial part in current assets. An efficient

inventory controlling system will decide,

What and when to purchase?

How to purchase?

Size of purchase?

And from where to purchase (Suppliers)?

 NEED FOR THE STUDY

The main purpose of inventory management is to ensure

1. Required quantity of availability of raw materials

2. Minimize the investments in inventories

3. Maintain reasonable stock levels not excess or not under stocks.

 OBJECTIVE OF THE STUDY

The main objective of the project work is to study and analyze and preparation INVENTORY

MANAGEMENT in Ultratech .

1. Purchasing procedure of the inventories.

2. Classification of inventories.

3. Codification of inventories.

4. Analyze the records of stock levels.

5. Analyze the JIT system of Dr.Reddy’s.

6. Analyze the two bin system.

7. Analyze the inventory turn over ratio.

 SCOPE OF THE STUDY:

This research design confines its scope to studying about inventory turnover

and inventory carrying cost.

 METHODOLOGY OF THE STUDY:
Data Collection Method:

Secondary Data: The Secondary data has been collected from annual reports of organization,

internet (www.Dr.Reddy’s.com) and books.

Research Techniques:

The following are the statistical tools employed for analysis and interpretation are ABC

Analysis, Economic Order Quantity, VED Analysis, RE-ORDER Level, Safety Stock, and

Just-in-time Inventory.
 LIMITATIONS OF THE STUDY:

1. Since the study covers only bulk division of Dr Reddy’s laboratories

Limited, it does not represent the over all scenario of the bulk industry.

2. The period of the study is limited to 45days.

3. All inventory management techniques were not studied, as some information is related

to purchase department.
 CHAPTER - II

REVIEW OF LITERATURE
 REVIEW OF LITERATURE
INVENTORY CONTROL
Inventory control is the system devised an adopted for controlling investments in inventory.

It involves inventory planning and decision making with regard to the quantity and time of

purchase, fixation of stock levels, maintenance of stock records and continuous stock –

taking.

Definition of Inventory:

The Dictionary meaning of Inventory is 'a list of goods'. In a wider sense, inventory can be

defined as an idle resource which has an economic value. It is however, commonly used to

indicate various items of stores kept in stock in order to meet future demands.

In any organization, there may be following four types of inventory:

(a) Raw materials & parts—these may include all raw materials, components and

assemblies used in the manufacture of a product;

(b) Consumables & Spares -- These may include materials required for maintenance and

day-to-day operation;

(c) Work in progress -- These are items under various stages of production not yet converted

as finished goods;

(d) Finished Products -- Finished goods not yet sold or put into use.

Need For Inventory:

Many of the items we need for our day-to-day maintenance and operation are required to be

specially manufactured for the drugs. The time to procure these materials, therefore, is longer

due to various reasons and it is not possible to procure these materials when instantaneously

required. It is, therefore, necessary to keep stocks of such items.

Even for those items which are readily available in the market, it may not be economical to

buy these items every time as buying in piecemeal involves additional costs to the
administration. Therefore, we may find it cheaper to buy in bulk and to stock some of these

items and supply our indenters through such stocks

There are always some fluctuations in demand as well as fluctuations in the time with in

which material can be procured. It is therefore, not possible to forecast our requirements

exactly and time the purchases in such a way so that the materials will arrive just when they

are physically required. It, therefore, becomes necessary to maintain stocks of these items.

Basic Management Problems of Inventory:

From the above discussions, it will be seen that on the one hand inventories are idle and

valuable resource i.e. capital remains locked up in the inventories which can be used for other

productive purposes but on the other hand, they are desirable to satisfy manufacturing,

maintenance or operation requirement of the organization. Hence basic problem of inventory

management is to optimize the stock levels of different materials so that their stocks are

maintained at optimum levels without affecting the production or day-to-day maintenance.

Three basic problems associated with this optimization of stocks are;

(a) When to initiate purchase of the materials

(b) How much quantities are to be purchased at a time and

(c) What should be the stock levels of different items?

Inventory Control Techniques:

Various techniques employed for controlling stock levels are:

1. Selective Management: In this technique, various items of stores are classified in

various classifications depending upon their consumption, value, unit price, criticality

for the organization, source of supply, purchasing problems, and rate of drawl from

stores, seasonality and stores balances on a particular date. Different approaches of

control are being followed for different types of items.

2. Management by exception
 In this technique, items with certain exceptions are tackled on different points of time. For

example, overstock items, surplus items and inactive items may require more attention.

 Designing of recoupments policies :- Recoupments policies are designed in such a

manner that average stocks of materials are optimum.

 Rationalization :- Techniques of standardization and variety reduction are used to

minimize lead time of the material, and reduce unnecessary inventory carrying costs.

 Value Analysis :- Functions performed by the materials are analyzed and

alternative designs/raw materials are suggested to achieve the same function at

minimum cost.

 Computerization :- Computer Outputs can be used for scientific forecast of

demand to solve many inventory models, providing optimum safety stocks and for

controlling funds.

OBJECTIVE:

A truly effective inventory management system will minimize the complexities involved in

planning, executing and controlling a supply chain network which is critical to business

success. The opportunities available by improving a company’s inventory management can

significantly improve bottom line business performance. From a financial perspective,

inventory management is no small matter. Oftentimes, inventory is the largest asset item on a

manufacturer’s or distributor’s balance sheet. As a result, there is a lot of management

emphasis on keeping inventories down so they do not consume too much cash. The objectives

of inventory reduction and minimization are more easily accomplished with modern

inventory management processes that are working effectively.

SCOPE OF COVERAGE:

 Active Management

 Asset Management

 Supply Chain Management

 Annual Report

SUCCESSFUL INVENTORY MANAGEMENT:

LARSON (1999) observed that inventory personnel have to constantly track market

conditions and price trends for successful inventory management. Software has to be

designed to input these trends to determine the inventory requirements and economic order

quantity (EOQ),The inventory management has also be in constant contact with the

production and sales departments, In order to ensure that stock outs at the sales end do not

occur as a result of material storage at the production end. Computerized systems have help

improve the efficiency of data recording.

The raw materials, work-in-process goods and completely finished goods that are considered

to be the portion of a business's assets that are ready or will be ready for sale. Inventory

represents one of the most important assets that most businesses possess, because the turnover

of inventory represents one of the primary sources of revenue generation and subsequent

earnings for the company's share holders/owners. Possessing a high amount of inventory for

long periods of time is not usually good for a business because of inventory storage,

obsolescence and spoilage costs. However, possessing too little inventory isn't good either,

because the business runs the risk of losing out on potential sales and potential market share

as well.
INVENTORY CLASSIFICATION:

INVENTORY

PROCESS STAGE

NUMBER & VALUE

DEMAND TYPE

OTHER

Raw materials

WIP

FINISHED GOODS

Finished Goods

A Item

B Items

C Items

C Items

Independent

Dependent

Maintenance

Dependent

Operating

2.1 Figure showing inventory classification

Costs involved in inventory:

Every firms maintains inventory depending upon requirement and other features of firm for

holding such inventory some cost will be incurred there are as follows:

(a) Carrying Cost:

This is the cost incurred in Keeping or maintaining an inventory of one unit of raw materials,

work-in -process or finished goods. Here there are two basic cost involved.

(i) Cost of storage:

It includes cost of storing one unit of raw materials by the firm. This cost may be for the

storage of materials. Like rent of spaces occupied by stock, stock for security, cost of

infrastructure, cost of insurance, and cost of pilferage, warehousing costs, handling cost etc.

(ii) Cost of financing:

This cost includes the cost of funds invested in the inventories .It includes the required rate of

return on the investments in inventory in addition to storage cost etc. The Carrying cost

include there fore both real cost and opportunity cost associated with the funds invested in the

inventories. The total carrying cost is entirely variable and rise in directly proportion to the

level of inventories carried.

Total carrying cost = (carrying Cost per unit) x (Average inventory)

(b) Cost of ordering:

The cost of ordering includes the cost of acquisitions of inventories. It is the cost of

preparation and execution of an order including cost of paper work and Communicating with

the supplier.

The total ordering cost is inversely proportion to annual inventory of firm. The ordering cost

may have a fixed component, which is not affected by the order size: and a variable

component, which changes with the order size.

Total Ordering Cost = (No. Of orders) x (cost per order).

(c) Cost of stock out:

It is also called as Hidden cost. The stock out is the situation when the firm is not

having units of an item in stores but there is a demand for that Item either for the customers or

the production department .The stock out refers to zero level inventory .So there is a cost of

stock out in the sense that the firm face a situation of lost sales or back orders .The stock outs

are quite often expensive. Even the good will of firm also be effected due to customers

dissatisfaction and may lose business in case of finished goods, where as in raw materials or

work in process can cause the production process to stop and it is expensive because

employees will be paid for the time not spend in producing goods.

The carrying cost and the ordering cost are opposite forces and collectively. They

determine the level of inventors in a firm.

Total cost = (cost of items purchased) + (Total Carrying and ordering cost)

Valuation of Inventory:

The methods of valuing inventory are combination of the actual cost and repla cost plans. The

chief advantage of the cost or net realizable value rule is that it is conservative. Hence the

methods of Valuation of inventory are quite independent of system of mincing.

In balance sheet closing stock is shown under current assets and is also credited to

manufacturing or trading accounts. The inventories are valued on the basis as follows.

(i) Cost of raw materials in stock may include freight charges and carrying

cost. But such cost should not exceed market price,

(ii) Cost of finished goods wound normally to be total or full cost it

includes prime cost plus appropriate amount of the overhead.

Valuation of Inventories at the Division (As well as whole MOTHER DAIRY):

Indian GAAP US GAAP

Inventories are valued at the lower of CostInventories are stated at lower of Cost or
or Net realizable value. Market Value
Cost of inventories comprises all cost ofStores and Spares comprise engineering
purchase, cost of conversion and other costsspares i.e., Machinery Spares &
incurred in bringing the inventories to theirConsumables such as lubricants, cotton
present location and condition waste & oil which are used in operating
Method: machines or consumed as indirect materials
Raw Materials – FIFO in the manufacturing process.
ores and Spares – Weighted Average Stores and Spares – Weighted Average
WIP & FG (manf.) – FIFO + appropriateMethod:
share of manufacturing overheads All Other Categories – FIFO Method
FG traded – Cost of Purchase Cost of Raw Material, Stores and Spares =
Goods in Transit – At Actual Cost Purchase Price + Attributable direct cost –
trade discounts
Cost in case of Work in process & Finished
Goods comprise Material Cost, Direct
labor, Purchased overheads

Table 2.1: - Valuation of Inventories at the Division

Purchase & Stores Procedure:

In inventory management the purchase department, stores department plays a major

role to be the effective inventory there must be cooperation of various departments such as

purchase, receiving and inspections, stores, production and stock control departments. The

main functions of each department are as follows:

(1) Purchase departments:

It is responsible for purchase of all necessary goods of proper quality to produces, without

interruption to supply the finished goods.

 It receives purchase requisitions.

 Invites quotations or tenders from suppliers with desired quality.

 Issue purchase orders to the selected supplier.

  Certify the quality and quantity of order received in specified time

 Approve purchase invoice for payment after checking invoice for paying

after checking prices and extensions if any needed.

Material Cost:

Materials cost of a job or cost unit can be ascertained by multiplying the quantity consumed

for the job or cost unit by the price of the materials. For ascertaining the quantity consumed

for each job or cost unit we have devised material requisition which will indicate the quantity

required for the job and the job number against which the material cost will be change

directly.

For indirect material issued the material requisition will not indicate the job number but the

cost center number will be indicated for charging to relevant cost center as indirect materials.

(2) Receiving and inspection Department:

 Receiving all raw materials and other supplies from various suppliers.

 Verify items by count, weight etc., and report any shortage.

 Inspect materials and supplied as to quality by analyzing them suitably.

 Inform the purchasing department and accounts department all facts that may require

adjustment with vendor.

 Analyze and give them the code depending up on the type of materials.
(3) Stores keeping department:

 Check and accept all materials from the received department

 Identity each material received with the stock list, check the code

number and place in the respective bins.

 Issue materials and supplies for use upon presentation of authorized

requirement.

(4) Production departments:

a) Make out materials requirement note i.e. requisition of requisite quantity and

quality of materials at the right moment so the all materials may be available without

delay on production.

 Check and verify that the materials of requisite quantity and quality

have been have been received and charged to production.

 Keep proper records of materials received and their progress through

different operations or progress.

 Prepare materials return note for excess materials.

(5) Inventory control department:

In may be a subdivision of the cost accounting department, although in many

concerns, it is a part of the stores keeping department.

 Adjust the stock on receipt of the property authorized adjustment notes.

 Prepare weekly or monthly, statements of receipts, issue, balance and rage

consumption of materials both in terms of quantity and value.

ISSUE PRISING METHOD:

There are two categories:

(i) Cost prices:

(a) FIFO (First in First out)

(b) LIFO (last in first out)

(ii) Derived from cost prices:

(a) Weighted average price

(b) Standard price

(c) Inflated price

First in First out (FIFO):

This is the price paid for the material first taken into stock from which the material to be

priced could have been drawn.

Under this method stocks of materials may not be used up in chronological order

but for pricing purpose it is assumed that items longest in stock are used up first. The method

is most suitable for use where in material is slow-moving and comparatively high unit cost.

Last in first out (LIFO):

This is the price paid for the material last taken into stock from which the materials to be

priced could have been drawn. This method also ensure material being issued at the actual

cost. Its use is based on the principle that costs should be as closely as possible related to

current price level. Under this method production cost is calculated on basis on repla cost.

Weighted average price: This is the price which is calculated by dividing the total cost of

material in the stock from which the material to be priced have been drawn, by the total
quantity of material in the stock. This method differs from all other methods because here

issue prices are calculated on receipts of materials and not on issue of materials. Thus as soon

as new lot is received a new price is calculated and issues are then taken.

Standard price: It is the predetermination of fixed price on basis of a specification of all

factors affecting price like the quantity of materials in hand and to be normally purchased and

rate of discount compared with existing price including or excluding freight and ware housing

expense.

A standard price for each material is set and the actual price paid is compared with standard.

It is paid exceeds the standard a loss will be realized if not profit will be obtained.

Inflated price: This is the price, which includes a charge designed to cover the cost of

contingencies or related costs.

This price includes not only the cost involved in bringing the material to the purchases

premises but also the loss due to evaporation and breakage etc. as well as carrying costs.

RECEIPT AND ISSUE OF INVENTORIES:

(a) Receipt of Inventories in to stores:

After incoming materials have been examined and approved they are passed on to the

appropriate stores together with the goods received note. Articles are inspected and passed

and on the stores in the usual way. In order to keep the accounting procedure uniform, it is

desirable that a goods received note be prepared for these articles also: The store keeper then

places the inventory in appropriate bin or shelf and makes necessary entries in the receipt

column of the Bin Card.

A location code for materials helps in proper store -keeping with greater efficiency, because

stores can be easily identified. It is a part and parcel of stock control procedure. Location

code helps in mechanized accounting and safeguard against omission in counting as

verification.
BIN CARD

DESCRIPTION: MAXIMUM LEVEL:

MATERIAL CODE: MINIMUM LEVEL:

LOCATION CODE: ORDERING LEVEL:

BIN NO: ORDERING QUANTITY:

STORES LEDGER NO: UNITS:

RECIEPTS ISSUES BALANCE AUDIT

Date Goods Qty Date Requisition Qty Qty (units) Initial & Date

Received (units) note no. (units)

note no.

BIN CARD

For each kind of materials or article a Bin card is attached to the bin on which each

individual's materials is stored. A bin card provides a running record of receipts, issues and

stock in the simplest form. An entry will be made at the time of each receipt or issue and a

new balance will be extended.

These cards should agree with the quantities entered in the relevant accounts in the stores

ledger. The main advantage is to enable the stores keeper to ascertain at a glace the quantity

of materials in stock and remind him to place purchase requisition for further suppliers the

ordering level has been reached more over they provide on independent check on stores

ledger and anciently a second perpetual inventory. If the Bin card is from three years then the

transactions are made in same card .If Bin card does not exist new Bin card to be opened.

(b) Issues of Materials from Stores:

The storekeeper issue materials on receipt of proper authorized document usually called a

materials requisition or a specification of material. Materials requisition is a document which

authorities and records the issue of materials for use. The materials requisition details the

items required for use showing the quantity, description, code or past number and the cost

center of job to be charged. Requisition is normally prepared in triplicate; the department

receiving the goods retains one copy and the other two copies are handed over to the two

copies are handed over to the storekeeper. He keeps one along with him and enters on the

issue sides of the appropriate bin card Day-to day transactions are noted in stores ledger.

Stores ledger:

The stores ledger which is usually a loose leaf or card type, contains an account for

each class of materials their ledger is kept in the cost department and contains such

information as well facilitate the ascertainment of all details relating to the materials in the

minimum of time.
 CHAPTER-3

INDUSTRY PROFILE
COMPANY PROFILE
 INDUSTRY PROFILE

The Indian cement industry is directly related to the country's infrastructure sector and
thus its growth is paramount in determining the development of the country. With a current
production capacity of around 366 million tonnes (MT), India is the second largest producer
of cement in the world and fueled by growth in the infrastructure sector, the capacity is
expected to increase to around 550 MT by FY20.
India has a lot of potential for development in the infrastructure and construction sector and
the cement sector is expected to largely benefit from it. Some of the recent major government
initiatives such as development of 100 smart cities are expected to provide a major boost to
the sector.
Expecting such developments in the country and aided by suitable government foreign
policies, several foreign players such as the likes of Lafarge, Holcim and Vicat have invested
in the country in the recent past. Another factor which aids the growth of this sector is the
ready availability of the raw materials for making cement, such as limestone and coal.
Market Size
According to data released by the Department of Industrial Policy and Promotion (DIPP),
cement and gypsum products attracted foreign direct investment (FDI) worth US$ 2,984.29
million between April 2000 and September 2014.
In India, the housing sector is the biggest demand driver of cement, accounting for about 67
per cent of the total consumption. The other major consumers of cement include infrastructure
at 13 per cent, commercial construction at 11 per cent and industrial construction at nine per
cent.
To meet the rise in demand, cement companies are expected to add 56 MT capacity over the
next three years. The cement capacity in India may register a growth of eight per cent by next
year end to 395 MT from the current level of 366 MT. It may increase further to 421 MT by
the end of 2017. The country's per capita consumption stands at around 190 kg.
A total of 188 large cement plants together account for 97 per cent of the total installed
capacity in the country, while 365 small plants account for the rest. Of these large cement
plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. The Indian
cement industry is dominated by a few companies. The top 20 cement companies account for
almost 70 per cent of the total cement production of the country.
Investments
On the back of growing demands, due to increased construction and infrastructural activities,
the cement sector in India has seen many investments and developments in recent times.
Some of them are as follows:
 Lafarge and Holcim plans to request for the European Commission's approval for their
possible merger. The two companies had earlier unveiled plans in April 2014 to create the
world's biggest cement group with US$ 44 billion in yearly sales.
 JSW cement plans to enter the Kerala market to cash in on the construction frenzy in the
state. JSW is presently building a three million tonnes per annum (MTPA) capacity plant
at Chitrapur in Karnataka to add to the current 5.4 MTPA capacity in South India.
 Zuari Cement through its subsidiary Gulbarga Cement Limited (GCL) plans to set up a
3.23 MT cement plant in Gulbarga, Karnataka. The company along with the cement plant
is setting up a 50 MW captive power plant in the region.
 Malabar Cements plans to set up an automated cement handling and bagging unit as well
as raw materials import facility in the Kochi port. Malabar Cements has projected a
minimum throughput of 300,000 tonnes per annum which can be extendable up to
600,000 tonnes per annum, apart from intermediate products and raw materials such as
clinker, limestone and coal.
 Reliance Cement Company (RCC), a subsidiary of Reliance Infrastructure, has entered
into the cement market of Bihar where the demand for the building material is on the rise
due to a realty boom. RCC presently has plants with total installed capacity of 5.8 MTPA.
Government Initiatives
In the 12th FiveYear Plan, the government plans to increase investment in infrastructure to
the tune of US$ 1 trillion and increase the industry's capacity to 150 MT.
The Cement Corporation of India (CCI) was incorporated by the Government of India in
1965 to achieve self-sufficiency in cement production in the country. Currently, CCI has 10
units spread over eight states in India.
In order to help the private sector companies thrive in the industry, the government has been
approving their investment schemes. Some such initiatives by the government in the recent
past are as follows:
 The Andhra Pradesh State Investment Promotion Board (SIPB) has approved
proposals worth Rs 9,200 crore (US$ 1.48 billion) including three cement plants and
concessions to Hero MotoCorp project. The total capacity of these three cement plants
is likely to be about 12 MT per annum and the plants are expected to generate
employment for nearly 4,000 people directly and a few thousands more indirectly.
 India has joined hands with Switzerland to reduce energy consumption and develop
newer methods in the country for more efficient cement production, which will help
India meet its rising demand for cement in the infrastructure sector.
  The Government of India has decided to adopt cement instead of bitumen for the
construction of all new road projects on the grounds that cement is more durable and
cheaper to maintain than bitumen in the long run.
Road Ahead
With the Government of India providing a boost to the infrastructure and various housing
projects coming up in urban as well as rural areas, the cement sector has enough scope for
development in the future.

Market Size

The Indian cement sector is expected to witness positive growth in the coming years, with
demand set to increase at a CAGR of more than 8 per cent in the period FY 2013-14 to FY
2015-16, according to the latest report titled ‘Indian Cement Industry Outlook 2016’ by
market research consulting firm RNCOS. The report further observed that India’s southern
region is creating the maximum demand for cement, which is expected to increase more in
future.

The cement and gypsum products sector has attracted foreign direct investments (FDI) worth
US$ 2,656.29 million in the period April 2000–August 2013, according to data published by
the Department of Industrial Policy and Promotion (DIPP).

Investments

 Prism Cement Ltd has become the first Indian company to get the Quality Council of
India's (QCI) certification for its ready-mix concrete (RMC) plant in Kochi, Kerala. The
company received the certification from Institute for Certification and Quality Mark
(ICQM), a leading Italian certification body authorised to oversee QCI compliance.
 UltraTech Cement, an Aditya Birla Group Company, has acquired the 4.8 million tonne
per annum (MTPA) Gujarat unit of Jaypee Cement Corp for Rs 3,800 crore (US$ 595.61
million).
 ACC Ltd plans to invest Rs 3,000 crore (US$ 470.22 million) to expand its capacity by
nearly 4 MT a year in three eastern region states, over the next three years.
 Reliance Cements Co Pvt Ltd will set up a 3 MTPA grinding unit at an estimated cost of
Rs 600 crore (US$ 94.04 million). The unit is likely to come up at Raghunathpur in
Purulia, West Bengal.
 Reliance Cement Co, a special purpose vehicle (SPV) of Reliance Infrastructure Ltd, is
commissioning its first 5 MTPA plant in Madhya Pradesh. The project has been
implemented at a cost of approximately Rs 3,000 crore (US$ 470.22 million).
 Zuari Cement plans to set up a cement grinding unit at Auj (Aherwadi) and Shingadgaon
villages in Solapur, Maharashtra. The new unit will have a production capacity of 1
MTPA and is expected to be operational by the second quarter of 2015.
 JSW Steel has acquired Heidelberg Cement India's 0.6 MTPA cement grinding
facility in Raigad, Maharashtra, for an undisclosed amount.

Government Initiatives

Giving impetus to the market, the Indian government plans to roll out public-private
partnership (PPP) projects worth Rs 1 trillion (US$ 15.67 billion) over the next six months.
The Principal Secretary in the Prime Minister's Office (PMO) will monitor these projects.
Also, the steering group appointed by Dr Manmohan Singh, Prime Minister of India, to
accelerate infrastructure investments, has set deadlines for the awarding of projects such as
Mumbai rail corridor and Navi Mumbai Airport, among others.
The Goa State Pollution Control Board (GSPCB) has signed a memorandum of understanding
(MoU) with Vasavdatta Cement, a company with its plant in Karnataka. The firm would use
the plastic waste collected by the state agencies and village panchayats from Goa as fuel for
its manufacturing plant.

Road Ahead

The globally-competitive cement industry in India continues to witness positive trends such
as cost control, continuous technology upgradation and increased construction activities.
Furthermore, major cement manufacturers in India are progressively using other alternatives
such as bioenergy as fuel for their kilns. This is not only helping to bring down production
costs of cement companies, but is also proving effective in reducing emissions.
With the ever-increasing industrial activities, real estate, construction and infrastructure, in
addition to the various Special Economic Zones (SEZs) being developed across the country,
there is a demand for cement.
It is estimated that the country requires about US$ 1 trillion in the period FY 2012-13 to FY
2016-17 to fund infrastructure such as ports, airports and highways to boost growth, which
promises a good scope for the cement industry.
The 4th Annual India Cement Sector Business Sentiment Survey is nearly out and the India
Construction & Building Materials Journal provides the opportunity of an exclusive look at
the survey’s results before their sharing with the wider audiences. We are glad to be able to
present here some of the survey highlights and provide our readers with before-hand data
regarding the views and expectations of cement industry professionals.
Optimism continues to be the name of the game for the Indian cement industry – a function of
long-term trends as well as human nature. But on a closer look, the survey shows that the
optimism only runs skin deep and that it has already been eroded by an increasing percentage
of industry members who feel dissatisfied with the overall performance of the field last year.
For instance, the percentage of those who believe the industry performed “well” dropped
from 43 percent in 2012 to 26 percent in 2013, while the number of respondents who believe
the industry performed poorly almost tripled from 8 percent last year to 22 percent in 2013.
Regarding the future evolution of the industry, survey participants continue to be on the
optimistic side and hope for a “somewhat better” or “much better” performance compared to
the last 6 months.
China tackles pollution and overcapacity
2013 has been the year that China's central planners took action against cement production
overcapacity and pollution. Consolidation plans for the industry followed falling profits for
cement producers in 2012. However, record air pollution levels in Beijing in early 2013 shut
the city down, raised public awareness and gave the government a strong lever to encourage
further industry consolidation through environmental controls. By the middle of year profits
of major producers were up but production was also up. Finally in December 2013, China
started to launch its emissions trading schemes (ETS), led by Guangdong province, to create
what will be the second largest carbon market in the world after the EU ETS.
India faces a sticky wicket
Meanwhile, the world's second largest cement producing country has faced poor profits and
growth for cement producers blamed on paltry demand, piddling prices and proliferating
production costs. Compounding that, the Indian Rupee fell to a historic low relative to the US
Dollar in mid-2013, further putting pressure on input costs. Holcim reacted to all of this by
releasing plans to simplify its presence in the country between Holcim India, Ambuja and
ACC.
Sub-Saharan Africa draws up the battle lines
Competition in sub-Saharan Africa is set to intensify when Nigeria's Dangote Cement opens
its first cement plant in South Africa in early 2014. It is the first time Africa's two largest
cement producers, Dangote and South Africa's PPC, will produce cement in the same country.
Future clashes will follow across the region as each producer increasingly advances toward
the other.
The Kingdom needs cement... and workers
Saudi Arabian infrastructure demands have created all sorts of reverberations across the
Middle Eastern cement industry and beyond as the nation pushes on to build its six 'economic'
cities amongst other projects. Back in April 2013 King Abdullah bin Abdulaziz Al Saud of
Saudi Arabia issued an edict ordering the import of 10Mt of cement. Then some producers
started to report production line shutdowns in the autumn of 2013 as they buckled under the
pressure, although they consoled themselves with solid profit rises. Now, cement sales have
fallen following a government crackdown on migrant workers that has hit the construction
sector.
Competition concerns in Europe
Europe may be slowly emerging from the economic gloom but anti-trust regulators have
remained vigilant. An asset swap between Cemex and Holcim over units in the Czech
Republic, Germany and Spain has received attention from the European Commission. In the
UK the Competition Commission has decreed that further action is required for the cement
sector following the creation of new player Hope Construction Materials in 2012. Lafarge
Tarmac may now have to sell another one of its UK cement plants to increase more
competition into the market. Elsewhere in Europe, Belgium regulators took action in
September 2013 and this week we report on Polish action against cartel-like activity.
Don't forget South-East Asia, Brazil or Russia!
Growth continues to dominate these regions and major sporting tournaments are on the way
in Brazil and Russia, further adding to local cement demand. Votorantim may have cancelled
its US$4.8bn initial public offering in August 2013 but it is still has the highest cement
production capacity in Brazil. Finally, Indonesia may not have had any 'marquee' style story
to sum up 2013 but it continues to regularly announce cement plant builds. In July 2013 the
Indonesian Cement Association announced that cement sales growth had fallen to 'just' 7.5%
for the first half of 2013.

In the most general sense of the word, a cement is a binder, a substance which sets and
hardens independently, and can bind other materials together. The word "cement" traces to the
Romans, who used the term "opus caementicium" to describe masonry which resembled
concrete and was made from crushed rock with burnt lime as binder. The volcanic ash and
pulverized brick additives which were added to the burnt lime to obtain a hydraulic binder
were later referred to as cementum, cimentum, cäment and cement. Cements used in
construction are characterized as hydraulic or non-hydraulic.
The most important use of cement is the production of mortar and concrete—the bonding of
natural or artificial aggregates to form a strong building material which is durable in the face
of normal environmental effects.
Concrete should not be confused with cement because the term cement refers only to the dry
powder substance used to bind the aggregate materials of concrete. Upon the addition of
water and/or additives the cement mixture is referred to as concrete, especially if aggregates
have been added.
It is uncertain where it was first discovered that a combination of hydrated non-hydraulic lime
and a pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction), but concrete
made from such mixtures was first used on a large scale by Roman engineers.They used both
natural pozzolans (trass or pumice) and artificial pozzolans (ground brick or pottery) in these
concretes. Many excellent examples of structures made from these concretes are still
standing, notably the huge monolithic dome of the Pantheon in Rome and the massive Baths
of Caracalla. The vast system of Roman aqueducts also made extensive use of hydraulic
cement. The use of structural concrete disappeared in medieval Europe, although weak
pozzolanic concretes continued to be used as a core fill in stone walls and columns.
Modern cement
Modern hydraulic cements began to be developed from the start of the Industrial Revolution
(around 1800), driven by three main needs:
Hydraulic renders for finishing brick buildings in wet climates
Hydraulic mortars for masonry construction of harbor works etc, in contact with sea water.
Development of strong concretes.
In Britain particularly, good quality building stone became ever more expensive during a
period of rapid growth, and it became a common practice to construct prestige buildings from
the new industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic limes
were favored for this, but the need for a fast set time encouraged the development of new
cements. Most famous was Parker's "Roman cement." This was developed by James Parker in
the 1780s, and finally patented in 1796. It was, in fact, nothing like any material used by the
Romans, but was a "Natural cement" made by burning septaria - nodules that are found in
certain clay deposits, and that contain both clay minerals and calcium carbonate. The burnt
nodules were ground to a fine powder. This product, made into a mortar with sand, set in 5–
15 minutes. The success of "Roman Cement" led other manufacturers to develop rival
products by burning artificial mixtures of clay and chalk.
John Smeaton made an important contribution to the development of cements when he was
planning the construction of the third Eddystone Lighthouse (1755-9) in the English Channel.
He needed a hydraulic mortar that would set and develop some strength in the twelve hour
period between successive high tides. He performed an exhaustive market research on the
available hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of
the lime was directly related to the clay content of the limestone from which it was made.
Smeaton was a civil engineer by profession, and took the idea no further. Apparently unaware
of Smeaton's work, the same principle was identified by Louis Vicat in the first decade of the
nineteenth century. Vicat went on to devise a method of combining chalk and clay into an
intimate mixture, and, burning this, produced an "artificial cement" in 1817. James
Frost,orking in Britain, produced what he called "British cement" in a similar manner around
the same time, but did not obtain a patent until 1822. In 1824, Joseph Aspdin patented a
similar material, which he called Portland cement, because the render made from it was in
color similar to the prestigious Portland stone.
All the above products could not compete with lime/pozzolan concretes because of fast-
setting (giving insufficient time for placement) and low early strengths (requiring a delay of
many weeks before formwork could be removed). Hydraulic limes, "natural" cements and
"artificial" cements all rely upon their belite content for strength development. Belite
develops strength slowly. Because they were burned at temperatures below 1250 °C, they
contained no alite, which is responsible for early strength in modern cements. The first
cement to consistently contain alite was made by Joseph Aspdin's son William in the early
1840s. This was what we call today "modern" Portland cement. Because of the air of mystery
with which William Aspdin surrounded his product, others (e.g. Vicat and I C Johnson) have
claimed precedence in this invention, but recent analysis of both his concrete and raw cement
have shown that William Aspdin's product made at Northfleet, Kent was a true alite-based
cement. However, Aspdin's methods were "rule-of-thumb": Vicat is responsible for
establishing the chemical basis of these cements, and Johnson established the importance of
sintering the mix in the kiln.
William Aspdin's innovation was counter-intuitive for manufacturers of "artificial cements",
because they required more lime in the mix (a problem for his father), because they required a
much higher kiln temperature (and therefore more fuel) and because the resulting clinker was
very hard and rapidly wore down the millstones which were the only available grinding
technology of the time. Manufacturing costs were therefore considerably higher, but the
product set reasonably slowly and developed strength quickly, thus opening up a market for
use in concrete. The use of concrete in construction grew rapidly from 1850 onwards, and
was soon the dominant use for cements. Thus Portland cement began its predominant role. it
is made from water and sand

Types of modern cement

Portland cement
Cement is made by heating limestone (calcium carbonate), with small quantities of other
materials (such as clay) to 1450°C in a kiln, in a process known as calcination, whereby a
molecule of carbon dioxide is liberated from the calcium carbonate to form calcium oxide, or
lime, which is then blended with the other materials that have been included in the mix . The
resulting hard substance, called 'clinker', is then ground with a small amount of gypsum into a
powder to make 'Ordinary Portland Cement', the most commonly used type of cement (often
referred to as OPC).
Portland cement is a basic ingredient of concrete, mortar and most non-speciality grout. The
most common use for Portland cement is in the production of concrete. Concrete is a
composite material consisting of aggregate (gravel and sand), cement, and water. As a
construction material, concrete can be cast in almost any shape desired, and once hardened,
can become a structural (load bearing) element. Portland cement may be gray or white.
Portland cement blends
These are often available as inter-ground mixtures from cement manufacturers, but similar
formulations are often also mixed from the ground components at the concrete mixing plant.
Portland blastfurnace cement contains up to 70% ground granulated blast furnace slag, with
the rest Portland clinker and a little gypsum. All compositions produce high ultimate strength,
but as slag content is increased, early strength is reduced, while sulfate resistance increases
and heat evolution diminishes. Used as an economic alternative to Portland sulfate-resisting
and low-heat cements.
Portland flyash cement contains up to 30% fly ash. The fly ash is pozzolanic, so that
ultimate strength is maintained. Because fly ash addition allows a lower concrete water
content, early strength can also be maintained. Where good quality cheap fly ash is available,
this can be an economic alternative to ordinary Portland cement.
Portland pozzolan cement includes fly ash cement, since fly ash is a pozzolan, but also
includes cements made from other natural or artificial pozzolans. In countries where volcanic
ashes are available (e.g. Italy, Chile, Mexico, the Philippines) these cements are often the
most common form in use.
Portland silica fume cement. Addition of silica fume can yield exceptionally high strengths,
and cements containing 5-20% silica fume are occasionally produced. However, silica fume is
more usually added to Portland cement at the concrete mixer.
Masonry cements are used for preparing bricklaying mortars and stuccos, and must not be
used in concrete. They are usually complex proprietary formulations containing Portland
clinker and a number of other ingredients that may include limestone, hydrated lime, air
entrainers, retarders, waterproofers and coloring agents. They are formulated to yield
workable mortars that allow rapid and consistent masonry work. Subtle variations of Masonry
cement in the US are Plastic Cements and Stucco Cements. These are designed to produce
controlled bond with masonry blocks.
Expansive cements contain, in addition to Portland clinker, expansive clinkers (usually
sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage that is
normally encountered with hydraulic cements. This allows large floor slabs (up to 60 m
square) to be prepared without contraction joints.
White blended cements may be made using white clinker and white supplementary materials
such as high-purity metakaolin.
Colored cements are used for decorative purposes. In some standards, the addition of
pigments to produce "colored Portland cement" is allowed. In other standards (e.g. ASTM),
pigments are not allowed constituents of Portland cement, and colored cements are sold as
"blended hydraulic cements".
Very finely ground cements are made from mixtures of cement with sand or with slag or
other pozzolan type minerals which are extremely finely ground together. Such cements can
have the same physical characteristics as normal cement but with 50% less cement
particularly due to their increased surface area for the chemical reaction. Even with intensive
grinding they can use up to 50% less energy to fabricate than ordinary Portland cements.
Non-Portland hydraulic cements
Pozzolan-lime cements. Mixtures of ground pozzolan and lime are the cements used by the
Romans, and are to be found in Roman structures still standing (e.g. the Pantheon in Rome).
They develop strength slowly, but their ultimate strength can be very high. The hydration
products that produce strength are essentially the same as those produced by Portland cement.
Slag-lime cements. Ground granulated blast furnace slag is not hydraulic on its own, but is
"activated" by addition of alkalis, most economically using lime. They are similar to pozzolan
lime cements in their properties. Only granulated slag (i.e. water-quenched, glassy slag) is
effective as a cement component.
Supersulfated cements. These contain about 80% ground granulated blast furnace slag, 15%
gypsum or anhydrite and a little Portland clinker or lime as an activator. They produce
strength by formation of ettringite, with strength growth similar to a slow Portland cement.
They exhibit good resistance to aggressive agents, including sulfate.
Calcium aluminate cements are hydraulic cements made primarily from limestone and
bauxite. The active ingredients are monocalcium aluminate CaAl 2O4 (CaO · Al2O3 or CA in
Cement chemist notation, CCN) and mayenite Ca12Al14O33 (12 CaO · 7 Al2O3 , or C12A7 in
CCN). Strength forms by hydration to calcium aluminate hydrates. They are well-adapted for
use in refractory (high-temperature resistant) concretes, e.g. for furnace linings.
Calcium sulfoaluminate cements are made from clinkers that include ye'elimite

(Ca4(AlO2)6SO4 or C4A3 in Cement chemist's notation) as a primary phase. They are used in
expansive cements, in ultra-high early strength cements, and in "low-energy" cements.
Hydration produces ettringite, and specialized physical properties (such as expansion or rapid
reaction) are obtained by adjustment of the availability of calcium and sulfate ions. Their use
as a low-energy alternative to Portland cement has been pioneered in China, where several
million tonnes per year are produced. Energy requirements are lower because of the lower
kiln temperatures required for reaction, and the lower amount of limestone (which must be
endothermically decarbonated) in the mix. In addition, the lower limestone content and lower
fuel consumption leads to a CO2 emission around half that associated with Portland clinker.
However, SO2 emissions are usually significantly higher.
"Natural" Cements correspond to certain cements of the pre-Portland era, produced by
burning argillaceous limestones at moderate temperatures. The level of clay components in
the limestone (around 30-35%) is such that large amounts of belite (the low-early strength,
high-late strength mineral in Portland cement) are formed without the formation of excessive
amounts of free lime. As with any natural material, such cements have highly variable
properties.
Geopolymer cements are made from mixtures of water-soluble alkali metal silicates and
aluminosilicate mineral powders such as fly ash and metakaolin.
 COMPANY PROFILE
ULTRATECH CEMENT:

UltraTech Cement Limited has an annual capacity of 18.2 million tonnes. It manufactures and
markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland
Pozzalana Cement. It also manufactures ready mix concrete (RMC).

UltraTech Cement Limited has five integrated plants, six grinding units and three terminals
— two in India and one in Sri Lanka.

UltraTech Cement is the country’s largest exporter of cement clinker. The export markets
span countries around the Indian Ocean, Africa, Europe and the Middle East.
UltraTech’s subsidiaries are Dakshin Cement Limited and UltraTech Ceylinco (P) Limited.

The roots of the Aditya Birla Group date back to the 19th century in the picturesque town of
Pilani, set amidst the Rajasthan desert. It was here that Seth Shiv Narayan Birla started
trading in cotton, laying the foundation for the House of Birlas.

Through India's arduous times of the 1850s, the Birla business expanded rapidly. In the early
part of the 20th century, our Group's founding father, Ghanshyamdas Birla, set up industries
in critical sectors such as textiles and fibre, aluminium, cement and chemicals. As a close
confidante of Mahatma Gandhi, he played an active role in the Indian freedom struggle. He
represented India at the first and second round-table conference in London, along with
Gandhiji. It was at "Birla House" in Delhi that the luminaries of the Indian freedom struggle
often met to plot the downfall of the British Raj.

Ghanshyamdas Birla found no contradiction in pursuing business goals with the dedication of
a saint, emerging as one of the foremost industrialists of pre-independence India. The
principles by which he lived were soaked up by his grandson, Aditya Vikram Birla, our
Group's legendary leader.

FACT FILE

 Largest producer of grey cement, white cement and ready-mix concrete in India.
 Largest producer of white cement in India.
  Installed capacity of 62 MTPA.
 Presence with 12 integrated plants, 1 white cement plant, 2 WallCare putty plants, 1
clinkerisation plant in UAE, 16 grinding units; 12 in India, 2 in UAE, 1 in Bahrain and
Bangladesh each, 6 bulk terminals; 5 in India and 1 in Sri Lanka and 101 Concrete
plants.
 Straddling export markets in countries across the Indian Ocean and the Middle East.

Aditya Vikram Birla: putting India on the world map

A formidable force in Indian industry, Mr. Aditya Birla dared to dream of setting up a global
business empire at the age of 24. He was the first to put Indian business on the world map, as
far back as 1969, long before globalisation became a buzzword in India.

In the then vibrant and free market South East Asian countries, he ventured to set up world-
class production bases. He had foreseen the winds of change and staked the future of his
business on a competitive, free market driven economy order. He put Indian business on the
globe, 22 years before economic liberalisation was formally introduced by the former Prime
Minister, Mr. Narasimha Rao and the former Union Finance Minister, Dr. Manmohan Singh.
He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines and
Egypt.

Interestingly, for Mr. Aditya Birla, globalisation meant more than just geographic reach. He
believed that a business could be global even whilst being based in India. Therefore, back in
his home-territory, he drove single-mindedly to put together the building blocks to make our
Indian business a global force.

Under his stewardship, his companies rose to be the world's largest producer of viscose staple
fibre, the largest refiner of palm oil, the third largest producer of insulators and the sixth
largest producer of carbon black. In India, they attained the status of the largest single
producer of viscose filament yarn, apart from being a producer of cement, grey cement and
rayon grade pulp. The Group is also the largest producer of aluminium in the private sector,
the lowest first cost producers in the world and the only producer of linen in the textile
industry in India.

At the time of his untimely demise, the Group's revenues crossed Rs.8,000 crore globally,
with assets of over Rs.9,000 crore, comprising of 55 benchmark quality plants, an employee
strength of 75,000 and a shareholder community of 600,000.
Most importantly, his companies earned respect and admiration of the people, as one of
India's finest business houses, and the first Indian International Group globally. Through this
outstanding record of enterprise, he helped create enormous wealth for the nation, and respect
for Indian entrepreneurship in South East Asia. In his time, his success was unmatched by any
other industrialist in India.

That India attains respectable rank among the developed nations, was a dream he forever
cherished. He was proud of India and took equal pride in being an Indian.

Under the leadership of our Chairman, Mr. Kumar Mangalam Birla, the Group has sustained
and established a leadership position in its key businesses through continuous value-creation.
Spearheaded by Grasim, Hindalco, Aditya Birla Nuvo, Indo Gulf Fertilisers and companies in
Thailand, Malaysia, Indonesia, the Philippines and Egypt, the Aditya Birla Group is a leader
in a swathe of products — viscose staple fibre, aluminium, cement, copper, carbon black,
palm oil, insulators, garments. And with successful forays into financial services, telecom,
software and BPO, the Group is today one of Asia's most diversified business groups.

Board of Directors
:: Mr. Kumar Mangalam Birla, Chairman
:: Mrs. Rajashree Birla
:: Mr. R. C. Bhargava
:: Mr. G. M. Dave
:: Mr. N. J. Jhaveri
:: Mr. S. B. Mathur
:: Mr. V. T. Moorthy
:: Mr. O. P. Puranmalka
:: Mr. S. Rajgopal
:: Mr. D. D. Rathi
:: Mr. S. Misra, Managing Director

Executive President & Chief Financial Officer

:: Mr. K. C. Birla
Chief Manufacturing Officer

:: R.K. Shah
Chief Marketing Officer

:: Mr. O. P. Puranmalka
Company Secretary

:: Mr. S. K. Chatterjee

Our vision
"To actively contribute to the social and economic development of the communities in which
we operate. In so doing, build a better, sustainable way of life for the weaker sections of
society and raise the country's human development index."— Mrs. Rajashree Birla,
Chairperson,
The Aditya Birla Centre for Community Initiatives and Rural Development

Awards won
Year Award
IMC Ramkrishna Bajaj National Quality Award
2018-19

Asociated with Govrmnent projects & Business World FICCI-SEDF CSR

2012-2013
Award
ASSOCHAM CSR Excellence Award for its "truly outstanding" CSR
2011-2012
activities
2010-2011 Subh Karan Sarawagi Environment Award
2010-2011 Business World FICCI-SEDF CSR Award
2010 Greentech Environment Excellence Gold Award
2010 IMC Ramkrishna Bajaj National Quality Award
2010 Asian CSR Award
2009-2010 National Award for Prevention of Pollution
2009-2010 Rajiv Gandhi Environment Award for Clean Technology
2009-2010 State Level Environment Award (Plant)
Making a difference
Before Corporate Social Responsibility found a place in corporate lexion, it was already
textured into our Group's value systems. As early as the 1940s, our founding father Shri G.D
Birla espoused the trusteeship concept of management. Simply stated, this entails that the
wealth that one generates and holds is to be held as in a trust for our multiple stakeholders.
With regard to CSR, this means investing part of our profits beyond business, for the larger
good of society.

While carrying forward this philosophy, his grandson, Aditya Birla weaved in the concept of
'sustainable livelihood', which transcended cheque book philanthropy. In his view, it was
unwise to keep on giving endlessly. Instead, he felt that channelising resources to ensure that
people have the wherewithal to make both ends meet would be more productive. He would
say, "Give a hungry man fish for a day, he will eat it and the next day, he would be hungry
again. Instead if you taught him how to fish, he would be able to feed himself and his family
for a lifetime."

Taking these practices forward, our chairman

Mr. Kumar Mangalam Birla institutionalised the concept of triple bottom line accountability
represented by economic success, environmental responsibility and social commitment. In a
holistic way thus, the interests of all the stakeholders have been textured into our Group's
fabric.

The footprint of our social work today straddles over 3,700 villages, reaching out to more
than 7 million people annually. Our community work is a way of telling the people among
whom we operate that We Care.

Our strategy
Our projects are carried out under the aegis of the "Aditya Birla Centre for Community
Initiatives and Rural Development", led by Mrs. Rajashree Birla. The Centre provides the
strategic direction, and the thrust areas for our work ensuring performance management as
well.
Our focus is on the all-round development of the communities around our plants located
mostly in distant rural areas and tribal belts. All our Group companies —- Grasim, Hindalco,
Aditya Birla Nuvo, Indo Gulf and UltraTech have Rural Development Cells which are the
implementation bodies.

Projects are planned after a participatory need assessment of the communities around the
plants. Each project has a one-year and a three-year rolling plan, with milestones and
measurable targets. The objective is to phase out our presence over a period of time and hand
over the reins of further development to the people. This also enables us to widen our reach.
Along with internal performance assessment mechanisms, our projects are audited by reputed
external agencies, who measure it on qualitative and quantitative parameters, helping us
gauge the effectiveness and providing excellent inputs.

Our partners in development are government bodies, district authorities, village panchayats
and the end beneficiaries -- the villagers. The Government has, in their 5-year plans, special
funds earmarked for human development and we recourse to many of these. At the same time,
we network and collaborate with like-minded bilateral and unilateral agencies to share ideas,
draw from each other's experiences, and ensure that efforts are not duplicated. At another
level, this provides a platform for advocacy. Some of the agencies we have collaborated with
are UNFPA, SIFSA, CARE India, Habitat for Humanity International, Unicef and the World
Bank.

Our focus areas

Our rural development activities span five key areas and our single-minded goal here is to
help build model villages that can stand on their own feet. Our focus areas are healthcare,
education, sustainable livelihood, infrastructure and espousing social causes.

The name “Aditya Birla” evokes all that is positive in business and in life. It exemplifies
integrity, quality, performance, perfection and above all character.

Our logo is the symbolic reflection of these traits. It is the cornerstone of our corporate
identity. It helps us leverage the unique Aditya Birla brand and endows us with a distinctive
visual image.

Depicted in vibrant, earthy colours, it is very arresting and shows the sun rising over two
circles. An inner circle symbolising the internal universe of the Aditya Birla Group, an outer
circle symbolising the external universe, and a dynamic meeting of rays converging and
diverging between the two.
Through its wide usage, we create a consistent, impact-oriented Group image. This
undoubtedly enhances our profile among our internal and external stakeholders.
Our corporate logo thus serves as an umbrella for our Group. It signals the common values
and beliefs that guide our behaviour in all our entrepreneurial activities. It embeds a sense of
pride, unity and belonging in all of our 130,000 colleagues spanning 25 countries and 30
nationalities across the globe. Our logo is our best calling card that opens the gateway to the
world.

Group companies
:: Grasim Industries Ltd.
:: Hindalco Industries Ltd.
:: Aditya Birla Nuvo Ltd.
:: UltraTech Cement Ltd.

Indian companies
:: Aditya Birla Minacs IT Services Ltd.
:: Aditya Birla Minacs Worldwide Limited
:: Essel Mining & Industries Ltd
:: Idea Cellular Ltd.
:: Aditya Birla Insulators
:: Aditya Birla Retail Limited
:: Aditya Birla Chemicals (India) Limited

International companies
Thailand
:: Thai Rayon
:: Indo Thai Synthetics
:: Thai Acrylic Fibre
:: Thai Carbon Black
:: Aditya Birla Chemicals (Thailand) Ltd.
:: Thai Peroxide
Philippines
:: Indo Phil Group of companies
 CHAPTER - V

DATA ANALYSIS
AND
INTERPRETATION
 DATA ANALYSIS

MOTHER DAIRY LTD BULK ACTIVES DIVISION:

Total Inventory trend (All figure in thousands)

Particular 2015-2016 2016-17 2017-2018 2018-2019

Raw material 992425 2334552 2099552 2533789

Work in progress 1008575 1436810 1643466 2226873

Finished Goods 732561 2465468 697155 1052467

Store and Spares 304547 428381 596214 435663

Total 3038108 6665211 4875836 6409343

Total inventory trend chart

Inventories play a major role in a business or company depending on nature of the business.
The inventories may be classified as under:-

(i)Raw materials:

Primary or secondary material that is used to produce a product. Unfinished goods used in the
manufacture of a product. For example, a steelmaker uses iron ore and other metals in
producing steel. A publishing company uses paper and ink to create books, newspapers, and
magazines. Raw materials are carried on a company's balance sheet as inventory in the
current assets section. Amount of raw materials to be kept by a firm depends upon number of
factors, including the speed with which raw materials can be ordered and received. Its
purpose is to uncouple the production function from the purchasing function i.e. to make
these two functions independent of each other so that delay in procurement of raw-materials
do not cause production delays and the firm can satisfy its need for raw-materials out of the
inventory lying in the stores.
Raw Material Trend at Bulk Actives Division:

Particulars 2015-2016 2016-17 2017-2018 2018-2019

Raw material 992425 2334552 2099552 2533789

Raw material trend

(2)Work in-process or progress:

It refers to the raw materials engaged in various phases of production process. The degree of
completion may be varying for
different units some units may be 40% finished, or some other 90% completed. The value of
work in progress involves material costs, the direct wages and expenses already incurred and
the overheads if any. So, work in progress inventory contains partially produced or completed
goods. The purpose of work-in-progress inventory is to uncouple the various operations in the
production process, so that machine failures and stoppage in operations will not affected by
one another. It depends on the user of the terms. I use the term “work in process” to mean a
manufacturer’s inventory that is not yet completed. I think of work in process as the goods
that are on the factory floor of a manufacturer. The amount of Work in Process Inventory
would be reported along with Raw Materials Inventory and Finished Goods Inventory on the
manufacturer’s balance sheet as a current asset.
Work in process Trend at Bulk Actives Division:

Particulars 2015-2016 2016-17 2017-2018 2018-2019

WIP 1008575 1436810 1643466 2226873

Work in Progress trend

(3)Finished Good:
Finished goods are goods that have completed the manufacturing process but have not yet
been sold or distributed to the end user. In trading firm purchase are made where as in the
manufacturing firm produce or process the goods. However, it may be. These are goods that
are either being purchased by the firm or are being produced or processed in the firm. These
are just ready for sale to customers. If the firms do not maintain a sufficient finished goods
inventory, they run the risk of losing sales due to customer dissatisfaction. The purpose of
finished goods inventory is to uncouple the production and sale can be made directly out of
inventory.
Particular 2015-2016 2016-17 2017-2018 2018-2019
Finished Good 732561 2465468 697155 1052467

Finished Goods Trend

(4)Stores and Spares:

Particulars 2015-2016 2016-17 2017-2018 2018-2019
Store and Spares 304547 428381 596214 435663

Stores and Spares

TOOLS AND TECHNIQUES

Main problems in inventory management are to answer.
 Are all items of inventory important if not what are items to be given
more importance?
 What should be the size of the order for replenishment be placed?
 What should be the over level?
To answer the above question following techniques are used:
 ABC Analysis and EOQ
 VED Analysis and Re-order level
 Safety Stock and Just-in-time Inventory
ABC Analysis: In accounting, ABC stands for activity-based costing. In inventory or stock
management, it's a method of stock control. Its basic assumption is that not all stock is
equally valuable, therefore doesn't need the same kind of attention. So you categories all your
stock according to its cost and quantity - and create a graph with cost shown on Y axis and
quantity shown on X. From left to right, you place your stock from highest value to lowest.
Typically, you see that a small portion of stock is the most valuable, and therefore needs
maximum attention and resources - that's called 'A’. Then utmost valuable section of stock is
B, the next is C and so on.
Basically it shows you which stocks need more attention and which need less. It helps
in utilizing resources for stock management more effectively.The items with the highest value
is given top priority and soon and are more controlled then low value item.

The re-rational limits are as follows.

A Item: The Top 10% of all items which have the highest rupee percentages and classify
them as A items
B Items: The Next 20% of all items with the next highest rupee percentages and designate
them as B items

C Items: The Next 70% of all items with the lowest rupee percentages are C items

A CLASS ITEMS
Description Qty Rate Value
Succenic Acid 1034 30805 31852370
Dimethicone 3728 30988 115523264
Sodium Benojate 1634 23295 38064030
Micro Crystalline 328 19116 6270048
SUB TOTAL 6724 28511 191707964
SCRAP 11221 16900 189634900
Analysis of class item A

Interpretation It is observed that five items fall under ‘A’ class items namely Drugs
manufacturing and scrap based on their consumption value which constitutes 70% of the total
consumption value.

B CLASS ITEMS

Description Qty Rate Value

Anidrisorb 271 71812 19461052
Opadry Purple 261875 49 12831875
Magnesium
5292 2103 11129076
Stearate
Ethyl Cellulose 93 106564 9910452
Sillica colloidal 443138 85 37666730
Analysi of class item B

Interpretation:
It is observed that five above items fall under ‘B’ class items coating, based on their
consumption value i.e., which constitutes 20% of the total consumption value.

C CLASS ITEMS
DESCRIPTION QTY RATE VALUE
Lactose Anhydrous 294 32488 9551472
Calcium Chloride 3475 23 79925
Macrogol 3 40152 120456
Titanium Dioxide 352 7701 2710752
Potassium 64 13355 854720
Desloratadine 6592 65 428480
Black Currant 6990 185 1293150
EHG Capsules 5630 124 698120
Povid One IP 47 49762 2338814
Poloxamer 12165 310 3771150
Docusate Sodium 2751 350 962850
Powered cellulose 102 13265 1353030

Analysis of class item C

Interpretation:

It is observed that twelve items fall under ‘C’ class items based on their consumption
value which constitutes 10% of the total consumption value.

Category % of Items % of total materials cost

A 5-10 70-85
B 10-20 10-20
C 70-85 5-10
Analysis of class items
Procedure:
(i) Items with the highest value is given top priority and soon.
(ii) There after cumulative totals of annual value of consumption are
expressed as percentage of total value of consumptions,
(iii) Then these percentage values are divided into three categories.
ABC analysis helps in allocating managerial efforts in proportion to importance of various
items of inventory.

ABC Analysis at Bulk Actives Division:

Raw MATERIAL
* Rs In millions
Particulars 2015-2016 2016-17 2017-2018 2018-2019
A 69% 72% 70% 71%
B 23% 19% 17% 14%
C 8% 9% 13% 15%

ABC Analysis at Bulk Actives Division

Chart2.9:- ABC Analysis at Bulk Actives Division chart

Interpretation:

Consumption of raw material A gradually increased every year from 2015-16 to 2006 and
decrease in 2007 after that it again increase in the year 2008, raw material B’s consumption
increased from 2015-16 to 2006 and decreased thereafter and raw material C’s consumption
increased gradually every year from 2015-16 to 2008.

WORK IN PROCESS

*Rs in millions
Particulars % 2015-16 % 2016-17 % 2017-18 % 2008-09
Total Work in Process 1008575 1436810 1643466 2226873
A 69% 695917 72% 1034503 70% 1150426 71% 1581080
B 23% 231972 19% 272994 17% 279389 14% 311762
C 8% 80686 9% 129313 13% 213651 15% 334031

ABC Analysis at Bulk Actives Division chart

Interpretation:

The consumption of work-in-progress A gradually increased from 2015-16 to 2008,

work-in-progress B’s consumption increased from 2015-16 to 2008 and work-in-progress C’s
consumption when compared to 2015-16 and increased there after.
SYSTEM DESIGN
4.1 Process Flow Diagram
Process Flow Diagram or Flowchart is a diagram which uses geometric symbols and
arrows to define the relationships. It is a diagrammatic representation of the
algorithm. The Process flow Diagram of our application is shown below:

Figure 4.1: IMS Process flow diagram

4.2 Use Case Diagram

Its purpose is to present a graphical overview of the functionality provided by a
system in terms of actors and their goals.
The main purpose of a use case diagram is to show what system functions are
performed for which actors.
4.2.1 Diagram Building Block
Use cases
A use case describes a sequence of actions that provide something of measurable
value to an actor and is drawn as a horizontal ellipse.
Actor
An actor is a person, organization or external system that plays a role in one or more
interactions with the system
System boundary boxes (optional)
A rectangle is drawn around the use case called the system boundary box to indicate
scope of the system.

Actor

Use case
Figure 4.2.1: IMS Use Case Diagram
5.1 Development Tools
5.1.1 Microsoft visual Studio
Microsoft Visual Studio is an integrated development environment (IDE) from
Microsoft. It is used to develop console and graphical user interface applications
along with Windows Form applications, websites, web applications, and web services
in both native code together with managed code for all platforms supported by
Microsoft Window, Windows Mobile, Windows CE, .NET Framework, .NET
Compact Framework and Microsoft Silverlight. Microsoft Visual Studio simplifies the
basic tasks of creating, debugging and deploying applications.
Microsoft Visual Studio comes with .NET Framework and supports applications
targeting Windows. It supports IBM DB2 and Oracle databases, in addition to
Microsoft SQL Server. It has integrated support for developing Microsoft Silverlight
applications, including an interactive designer. Microsoft Visual Studio offers several
tools to make parallel programming simpler: in addition to the Parallel Extensions for
the .NET Framework and the Parallel Patterns Library for native code, Visual Studio
includes fools for debugging parallel applications.
The Visual Studio code editor now highlights references; whenever a symbol is
selected; all other usages of the symbol are highlighted. It also offers a Quick Search
feature to incrementally search across all symbols in C++, C# and VB.NET projects.
Quick Search supports substring matches and camel Case searches. The Call
Hierarchy feature allows the developers to see all the methods that are called from a
current method as well as the methods that call the current one. IntelliSense in Visual
Studio supports a consume-first mode which developers can opt into. In this mode,
IntelliSense will not auto-complete identifiers; this allows the developer to use
undefined identifiers (like variable or method names) and define those later. Visual
Studio can also help in this by automatically defining them, if it can infer their types
from usage.
We have used Visual Studio Community 2015, v 14.0.23107.10 for developing the
Inventory Management System Application.
5.1.2 Microsoft SQL server Management Studio Express
Microsoft SQL Server Management Studio Express (SSMSE) provides a graphical
management tool for SQL Server Express Edition. SSMSE user interface is a subset
of SQL Management Studio that is available with other editions of SQL Server.
SSMSE call also manage instance of the SQL Server Database Engine created by any
edition of SQL Server. Inventory Management System is developed using Microsoft
SOL Server 2008.
5.1.3 .NET Framework 4.5
The .NET Framework is a development platform for building apps for Windows,
Windows Phone, Windows Server, and Microsoft Azure. It consists of the common
language runtime (CLR) and the .NET Framework class library, which includes
classes, interfaces, and value types that support an extensive range of technologies.
The .NET Framework provides a managed execution environment, simplified
development and deployment, and integration with a variety of programming
languages, including Visual Basic and Visual C#.

5.2 Technology Used

5.2.1 .NET Framework Structure
The .Net architecture is basically segregated in to three layers namely top, middle and
bottom layer. The bottom layer is CLR, it is the heart of .NET Framework which
provides the runtime environment in which programs are executed. The middle layer
comprises the next generation of standard system services are brought under the
control of the framework, making them universally available and standardizing their
usage across languages. The top layer includes user and program interfaces as figure:
 Figure 5.2.1: .Net Framework Architecture
Source: Teacher’s Handout

The first thing that you should notice when looking at this diagram is that the .NET
Framework sits on top of the operating system. There has also been a lot of talk about
.NET being ported over by some third-party companies so that a majority of the .NET
Framework could run on other platforms as well.
At the base of the .NET Framework is the Common Language Runtime (CLR). The
CLR is the engine that manages the execution of the code. The next layer up is the
.NET Framework Base Classes. This layer contains classes, value types, and
interfaces that you will use often in your development process. Most notably within
the .NET Framework Base Classes is ADO.NET, which provides access to and
management of data.
The third layer of the framework is ASP.NET and Windows Forms. ASP.NET should
not be viewed as the next version of Active Server Pages after ASP 3.0, but as a
dramatically new shift in Web application development. Using ASP.NET, it’s now
possible to build robust Web applications that are even more functional than Win32
applications of the past.
5.2.2 Compilation to Manage Code
Code that is compiled and targeted to the CLR is known as managed code. Managed
code provides metadata that is needed for the CLR to provide the services of multi-
language support, code security, object lifetime management, and memory
management. The .NET Framework requires that you use a language compiler that is
targeted at the CLR, such as the Visual Basic .NET, C#, C++ .NET, or Jscript .NET
compilers provided by Microsoft. So how does the code that you typed into Visual
Studio .NET become the code that the user receives when he is using your
application? It is fairly simple and straightforward. Figure below shows a diagram of
the compilation process.

Figure 5.2.2: Compilation to managed code

Source: Teacher’s handout
The IL is CPU-independent. This means that IL code is not reliant on the specific
computer that generated it. In other words, it can be moved from one computer to
another (as long as the computer supports the .NET Framework) without any
complications. This is what makes XCopy, or just copying over the application,
possible.
5.2.3 JIT compilation
The .NET Framework contains one or more JIT compilers that compile your IL code
down to machine code. This is done when the application is executed for the first
time.
5.2.4 The .NET Language
In the past, you chose the development language for an application based upon the
functionality that you were trying to perform. Some languages were more powerful
than others, but at the same time they might have required a higher level of
understanding and were, in most cases, more difficult to program in.
Now the .NET Framework provides you with a language-independent programming
platform. You do not have to decide which language would provide a better solution.
All languages are now on a level playing field. In .NET, no one language is superior
to any of the other languages. They all have equal access to everything that .NET
offers.
To be part of the .NET Framework, a language only has to follow certain rules. The
biggest and most important rule for inclusion is that the language needs to be an
object-oriented language. Microsoft provides four languages with the .NET
Framework:
Visual Basic .NET
C#
C++.NET and
Jscript .NET.
Microsoft also provides J# (pronounced J-sharp), but in order to use this new
language that is basically Java for .NET, you need to download the language to install
it on your server.
5.2.5 Data Provider
The data provider is responsible for providing and maintaining the connection to the
database. A database provider is a set of related components that works together to
provide in an efficient and performance driven manner. Each Data provider consists of
the following components classes:
 The command object which is used to execute a command.
 The Connection object which provides a connection to the database.
 The Data Reader object which provides a ready only, connects recordset.
5.2.6 The Connection object
The connection object created the connection to the database. Microsoft Visual Studio
.NET provides two types of connection classes: the SQLconnection object, which is
designed specifically to connect to Microsoft SQL Server.
5.2.7 The command Object
The command object is represented by corresponding classes: SQL Command.
Command object are used to execute commands to a database across a data
connection. The command objects provides three methods that are used to execute
commands on the database.
  ExecuteNonQuery: Executes commands that have no return values such as
INSERT, UPDATE AND DELETE
 ExecuteScalar: Returns a single value from a database query
 ExecuteReader: Returns a result set by way of a DataReader Objects.
5.2.8 The Data Reader object
The DataReadre object provides a read-only, connected stream recordset from a
database. Unlike other components of the Data Provider, DataReader objects cannot
be directly instantiated. Rather, the DateReader is returned as the result of the
Command objectsExecute Reader method. The DataReader can provide rows of data
directly to application logic when one does not need to keep the data cached in
memory. Because only one row is in memory in time, the DateReader provides the
lowest overhead in terms of system performance but requires the exclusive use of an
open Connection object for the life time of the DataReader.
5.3 Microsoft SQL Server
Microsoft SQL Server is an application used to create computer databases for the
Microsoft Windows family of server operating systems. Microsoft SQL Server
provides an environment used to generate database that can be accessed from
workstations, the Internet, or other media such as a personal digital assistant (PDA).
Microsoft SQL Server is used to create desktop, enterprise, and web-based database
applications. It is used at different levels and with various goals.
SQL Server makes simpler and easier to deploy, manage, and optimize enterprise data
and analytical applications. An enterprise data management platform, it performs a
single management console that enables data administrators anywhere in your
organization to monitor, manage, and tune all of the databases and associated services
across your enterprise. It provides an extensible management infrastructure that can
be easily programmed by using SQL management objects, enabling users to
customize and extend their management environment and independent software
vendors to build additional tools and functionality to further extend the capabilities
that come out of the box.
SQL Server simplifies management by providing integrated management console to
monitor and manage the SQL Server relational database as well as integration
services, analysis services, reporting services, notification services and SQL Server
Mobile Edition across large number of distributed servers and databases. Database
administrator can perform several tasks at the same time, such as authorizing and
executing a query, viewing server objects, managing an object, monitoring system
activities, and viewing online help.
SQL Server expose more than 70 new measures of internal database performance and
resource usages, ranging from memory, locking, and scheduling to transactions and
network and disk I/O. these dynamic management views provide greater transparency
and visibility into the database and a powerful infrastructure for proactive monitoring
of database health and performance. The major characteristics are listed below:
Reliability: achieve a more secure deployment. SQL Server provides rich security
features to protect data and network resources.
Confidentiality: Protect your data. SQL Server clustering supports Kerberos
authentication on a virtual Server and Microsoft-style policies on standard logins so
that a consistent policy is applied across all accounts in the domain.
Integrity: SQL Server supports encryption capabilities within database itself, fully
integrated with a key management infrastructure. By default, client server
communications are in encrypted.
 CHAPTER-4

CODING IMPLEMENTATION
 CODING IMPLEMENTATION

6.1 Application Code Structure

Inventory Management System was designed using Visual Studio as mentioned earlier
following the three tier application architecture. It provided us with the code editor as
a white blank space and the solution explorer where every code files were kept. Code
Editor is where the logical were developed into code and kept safe in the solution
explorer. In solution explorer we kept every code file by creating the folder and
adding those files in a folder that are similar in nature. The main folder was the
Inventory Management System. Following are the list of the folders, sub-folders and
their corresponding files:
6.2 Logic
Logic is the main component of any application portrayed through the code. Every
modules in the application includes logic. Most of the logic are common and
understandable as we call 3-tier architecture based system.
6.3 Code for Login page and validation
frmLogin.cs
using System;
using System.Collections.Generic; using
System.ComponentModel; using
System.Data;
using System.Drawing;
using System.Linq; using
System.Text;
using System.Threading.Tasks; using
System.Windows.Forms; using
System.Data.SqlClient;

namespace InventoryManagementSystem
{
public partial class frmLogin : Form
{
public frmLogin()
{
InitializeComponent();
}

private void txtUserName_KeyDown(object sender, KeyEventArgs e)

{
clsGlobalFunction.Tab_Function(e);
clsGlobalFunction.Escape_Function(e, btnCancel);
}

private void txtPassword_KeyDown(object sender, KeyEventArgs e)

{
 clsGlobalFunction.Tab_Function(e);
clsGlobalFunction.Escape_Function(e, btnCancel);
}

private void txtFiscalYear_KeyDown(object sender, KeyEventArgs e)

{
clsGlobalFunction.Tab_Function(e);
clsGlobalFunction.Escape_Function(e, btnCancel);
}

private void btnCancel_Click(object sender, EventArgs e)

{
Application.Exit();
}

private void btnCancel_KeyDown(object sender, KeyEventArgs e)

{
if (e.KeyCode == Keys.Escape) { Application.Exit(); }
}

private void btnOK_Click(object sender, EventArgs e)

{
clsGlobalFunction.temp_text = "Select * from user_login where user_name='" +
txtUserName.Text + "' and password='" + clsGlobalFunction.Encrypt(txtPassword.Text) + "'";
SqlDataAdapter da = new SqlDataAdapter(clsGlobalFunction.temp_text,
clsGlobalFunction.cn);
DataSet ds = new DataSet();
da.Fill(ds, "table0");
if (ds.Tables[0].Rows.Count > 0)
{
 this.Hide();
}
else
{
MessageBox.Show("User Name or Password is not Correct");
txtUserName.Focus();
}

private void txtUserName_Validated(object sender, EventArgs e)

{

private void txtPassword_Validated(object sender, EventArgs e)

{

private void txtFiscalYear_Validated(object sender, EventArgs e)

{

private void frmLogin_Load(object sender, EventArgs e)

{
try
{
clsGlobalFunction.temp_text = "select * from fiscal_year";
 SqlDataAdapter da = new
SqlDataAdapter(clsGlobalFunction.temp_text, clsGlobalFunction.cn);
DataSet ds = new DataSet(); da.Fill(ds,
"table0"); txtFiscalYear.Items.Clear();
for (int i = 0; i < ds.Tables[0].Rows.Count; i++)
{

txtFiscalYear.Items.Add(ds.Tables[0].Rows[i]["fyear"].ToString());
txtFiscalYear.Text =
ds.Tables[0].Rows[i]["fyear"].ToString();
}
}
catch { }

private void txtUserName_Validating(object sender, CancelEventArgs e)

{
if (txtUserName.Text == "") { MessageBox.Show("Please Enter User Name", "Inventory
Management System", MessageBoxButtons.OK, MessageBoxIcon.Information); txtUserName.Focus();
return; }
}

private void txtFiscalYear_SelectedIndexChanged(object sender,

EventArgs e)
{

private void label3_Click(object sender, EventArgs e)

{

}
}
}

6.4 Backup Data code

SaveFileDialog saveBACKUP = new SaveFileDialog(); try
{
DialogResult Dr;
saveBACKUP.Filter = "File format (*.bak)|*.bak"; saveBACKUP.FileName =
"INVENTORY ( BACKUP ) "
+
DateTime.Now.Year.ToString() + "-" + DateTime.Now.Month.ToString() + "-" +
DateTime.Now.Day.ToString();
Dr = saveBACKUP.ShowDialog(); if
(Dr == DialogResult.OK)
{
string s = null;
s = saveBACKUP.FileName;
SqlCommand cmd = new SqlCommand("Backup database " +
clsGlobalFunction.DatabaseName + " to disk='" + s + "' WITH STATS", clsGlobalFunction.cnMaster);
cmd.ExecuteNonQuery(); clsGlobalFunction.MessageBoxDisplay("Sucussfully
Created
Backup !!!");
}
}
catch (Exception ex)
 {
clsGlobalFunction.MessageBoxDisplay(ex.Message);
}

6.5 Restore Data code

OpenFileDialog RestoreBACKUP = new OpenFileDialog(); try
{
DialogResult Dr;
RestoreBACKUP.Filter = "File format (*.bak)|*.bak"; Dr =
RestoreBACKUP.ShowDialog();
if (Dr == DialogResult.OK)
{
string s = null;
s = RestoreBACKUP.FileName; SqlCommand
cmd = new SqlCommand();
cmd.Connection = clsGlobalFunction.cnMaster;

try
{
cmd.CommandText = "Alter Database " +
clsGlobalFunction.DatabaseName + " SET SINGLE_USER With ROLLBACK IMMEDIATE";
cmd.ExecuteNonQuery();
cmd.CommandText = "RESTORE DATABASE "
+ clsGlobalFunction.DatabaseName + " FROM
DISK = '" + s + "' WITH REPLACE";
cmd.ExecuteNonQuery();
cmd.CommandText = "Alter Database "
+ clsGlobalFunction.DatabaseName + " SET
MULTI_USER";
cmd.ExecuteNonQuery(); clsGlobalFunction.MessageBoxDisplay("Sucussfully
Created Restored.Application is Restarted !!!");
Application.Restart();
}
catch (Exception ex) {
clsGlobalFunction.MessageBoxDisplay(ex.Message); }

}
6.6 Project Screenshot

Figure 6.6.1: Admin or login page

Figure 6.6.2: Company/Shop details
Figure 6.6.3: Inventory Entry System
Figure 6.6.4: Back up and Restore Menu
 Figure 6.6.5: Report Menu

Figure 6.6.6: Creating Godwom

 Figure 6.6.7: Creating Units

Figure 6.6.8: Creating Product Type

 Figure 6.6.9: Creating Product

Figure 6.6.10: Inserting Opening Stock

Figure 6.6.11: Purchasing product form vendor

Figure 6.6.12 Sales product to Customer

Figure 6.6.13: Purchase Return

Figure 6.6.14: Sales Return

Figure: 6.6.15 Report of Current Stock

Figure 6.6.16: Back-up Data

 CHAPTER-5
FINDINGS, SUGGESTIONS, CONCLUSIONS
 FINDINGS

The purpose of software testing is to access or evaluate the capabilities or attributes of

a software program’s ability to adequately meet the applicable standards and
application need. Testing does not ensure quality and the purpose of testing is not to
find bugs. Testing can be verification and validation or reliability estimation. The
primary objective if testing includes:
 To identifying defects in the application.
 The most important role of testing is simply to provide information.
 to check the proper working of the application while inserting updating and
deleting the entry of the products.
7.1 Type of Testing
We have used one type of testing to ensure the error free features of our software
application:
7.1.1 Units Test
This type of testing is the testing of individual software components. It is typically
done by the programmer and not by the testers. It requires details information and
knowledge about the internal program design and code to perform this.
During unit testing, we carried out various testing task such as the reflection of the
unit data on database and its interface. Various types of bugs associated with the
component were identified and fixed. We use various functional keys to test our
software.
In our software unit testing is concerned with the stock units, opening stock units and
product units validation as well as the validation of product units.
 SUGGESTIONS
Project Limitation
Since this is our first project it has some limitation. Due to less knowledge in
particular fields and limited time we were not able to fulfill all our expectations that
we expected we could do while the project got started. We hope this limitations are
considerable. Some of the project limitations are:
 This application is not suitable for those organization where there is large
quantity of product and different level of warehouses
 This software application is able to generate only simple reports.
 Single admin panel is only made.
 It is not suitable for large organization.
8.1 Conclusion
To conclude, Inventory Management System is a simple desktop based application
basically suitable for small organization. It has every basic items which are used for
the small organization. Our team is successful in making the application where we can
update, insert and delete the item as per the requirement. This application also
provides a simple report on daily basis to know the daily sales and purchase details.
This application matches for small organization where there small limited if
godwoms.
Through it has some limitations, our team strongly believes that the implementation
of this system will surely benefit the organization.
 CONCLUSION

Lesson Learnt
Doing something for long time periods always gives good lesson. Some of the things
that our team learnt are listed as below:
 Basically we learnt to work in team.
 Learnt about the IMS process.
 Learnt about .NET technology, its components and ways to implement them
 Learnt to work in pressure and to be patient.
 Learnt to manage the database under Microsoft SQL server 2008.
Future Enhancements
Since this project was started with very little knowledge about the Inventory
Management System, we came to know about the enhancement capability during the

Process of building it. Some of the scope we can increase for the betterment and
effectiveness oar listed below:
 Interactive user interface design.
 Manage Stock Godown wise.
 Use of Oracle as its database.
 Online payment system can be added.
 Making the system flexible in any type.
 Sales and purchase return system will be added in order to make return of
products.
 Lost and breakage
 BIBLIOGRAPHY

1. Khan. M .Y. Jain. P.K., 2007 , Management Accounting –Text ,Problems and
cases, Fourth Edition, Tata McGraw Hill ,New Delhi-8
2. K.S. Menon, purchasing and Inventory control, Third Edition, Wheeler Publishers
3. Gopalakrishnan, Sundaresan, Materials Management, prentice-hall of India.
4. Anthony A.Atkison, Robert S. koplan, S. Mark young, Management Accounting,
Fourth Edition, Pearson Prentice hall
5. I.M.Pandey: Financial Management, Vikas Publishers.
Web:
http://www.ultratech.com

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