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ACHIEVEMENTS AND AWARDS IF ANY

Inside outside Mega Show 2008

1.1st

price-CHENNAI

2.2nd price-HYDERABAD

FUTURE GROWTH AND PROSPECTUS

The first and the foremost objective of the firm is to maintain the quality of product...To

be the leader in the Window blind industry, this is the major goal of Mattscorner India

pvt ltd.

To expand operations to foreign countries

To acquire the North Indian market

To maintain the quality of products

To maintain good relations with suppliers

To maintain a healthy competition with the competitors

To regulate production process without damages/defects

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1.3 INTRODUCTION

INVENTORY MANAGEMENT

CONCEPTS, MEANING AND NATURE OF INDUSTRY

The dictionary meaning of inventory is stock of goods, of a list of goods. Various

authors understand the word Inventory differently .In accounting language it may mean

stock of finished goods only .In manufacturing concern, it may include raw materials,

work in process and stores etc. to understand the exact meaning of inventory of the

word inventory we may study it from the usage side or from the side point of entry in the

operations .Inventory includes the following things:

RAW MATERIAL

Raw material form a major part input in to the organization .They is required to carry out

production activities uninterruptedly. The quantity of materials required will be

determined by the rate of consumption and the time required for replenishing the

supplies .The factors like availability of raw materials and government regulations, etc.

to affect the stock of raw materials.

WORK INPROGRESS

The work in progress is the stage of stocks, which are in between raw materials and

finished goods. The raw materials enter the process of manufacture but they are yet

attain the final shape of finished goods. The quantum of work in progress depends upon

time taken in the manufacturing; the more will be the amount of work in progress.

CONSUMABLES

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These are the raw materials, which are needed to smoothen the process of production.

These materials do not directly enter production but they act as catalysts etc.

consumables may be classified according to their consumption and criticality.Genarally,

consumable stores.do not create any supply problem and form a small part of

production cost. There can be instances where these materials may account for much

value than the raw materials .The fuel oil may form a substantial part of cost.

FINISHED GOODS

There are goods in which are ready for the consumers. The stock of finished goods

provides a buffer between production and market .The purpose of maintaining inventory

is to ensure proper supply of goods to consumers. In some concerns the production is

undertaken on order basis, in these concerns there will not be need for finished goods

.The need for finished goods inventory will be more when production is undertaken in

general without waiting for specific orders.

SPARES

Spares also form a part of inventory .The consumption pattern of raw materials

,consumables, finished goods are different form that of spares .The stocking polices of

spares are different from industry to industry.

The investment in inventory is very high in most of the undertakings engaged in

manufacturing, wholesale and retail trade. The amount of investment is sometimes

more in inventory than in other assets. An efficient system of inventory management will

determine

What to purchase

How much to purchase

From where to purchase

Where to store etc...

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There is conflicting interest of different departmental heads over the issue of inventory.

The finance manager will try to invest less in inventory because of him it is an idle

investment, where as production managers will emphasis to acquire more and more

inventory, as he does not want any interruption in production due to shortage of

inventory .The purpose of inventory management is to keep such that neither there is

overstocking nor under stocking. The overstocking will remain a reduction of liquidity

and starving of other production processed: under stocking, on the other hand will result

in stoppage of work. The investment in inventory should be kept in reasonable limits.

Inventory Turn over Ratio

Meaning

This ratio indicates the speed at which inventory is converted in to sales, which

contributed, to the profits of the organization. Higher the ratio the better will be the

efficiency.

Inventory Conversion Period

Meaning

This ratio indicates the number of days taken to convert the inventory and very useful in

deciding the organizations efficiency. It also helps to show financing institutions about

their efficiency, to obtain finance from them.

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Duration of Raw Material Stage

Meaning

Duration of raw material means that the number of days taken for the production unit toconvert the raw material into work in progress and to finish well, this helps the

organization to know the current requirements of the stock of other items like

consumables and spares for the future process.

Duration of the finished goods

Meaning

This indicates the duration of conversion of finished goods into sales. It is also called as

finished goods holding period.

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1.4 REVIEW OF LITERATURE

The Purchasing Manifesto

PurchTips - Edition #145 February 12, 2008

By Charles Dominick, SPSM

Are You Communicating Purchasing's Benefits?

Because it can be difficult to gain "buy-in" from functional departments when trying toget them to accept Purchasing's involvement, it is important to have a list of reasons

why it will benefit them to work with Purchasing. So I encourage you to develop such a

list - a Purchasing Manifesto, if you will - to aid in your efforts to "sell" the value of

working with Purchasing.

Here is an example of four points you can include in your Purchasing Manifesto.

1. Purchasing's Involvement Allows You To Focus On Your Core

Competency. You have a very important role in the organization. Your expertise

in your function makes you valuable. With Purchasing handling your procurement

activities, you'll be able to spend more of your time on what you do best.

2. Purchasing's Involvement Helps You Avoid Last Minute Crises. Your

department is very busy with many competing priorities. In many departments

that meet that same description, procurement activities are often put off until the

last minute. This results in failure to find the best value in the market, paying

expediting shipping charges, or, worst of all, not obtaining goods and services

on-time. Purchasing can help you avoid these headaches.

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3. Purchasing's Involvement Gets The Most Out Of Your Budget. Unless your

department invests in negotiation training for its staff and gives them the daily

opportunity to negotiate with suppliers, suppliers may have an advantage in

bargaining. Because the purchasing staff regularly receives negotiation training,

negotiates daily, and keeps up to date with the latest cost saving techniques,

Purchasing can help save your department money and alleviate some of your

budget constraints.

4. Purchasing's Involvement Can Uncover Unforeseen Obstacles. Whether it

be seeing the warning signs of a supplier in financial trouble, identifying a

material in short supply, or just knowing the typical timelines associated in getting

the goods or services you need, Purchasing reduces risks to your department's

operations.

1.5 STATEMENT OF PROBLEM

TITLE OF THE STUDY:

Inventory Management in Matts corner India pvt ltd.

One of the most important areas in the day-to-day management of the firm is the

management of the inventory. Inventory management is the functional area of finance

that covers the efficiency of a manufacturing firm. It is concerned with the managementof inventories as well as efficiency in cost reduction. The study helps in evaluating

efficiency of inventory management of Matts corner India pvt ltd.

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1.6 OBJECTIVES OF STUDY

The main objectives of the study are,

1. To understand the various techniques of inventory management and its control.

2. To understand the effectiveness of inventory management through various

techniques.

3. To analyze the function, procedures in inventory management.

4. To study the control measures in inventory management.

5. To make a comparative study of inventory management in the last three years.

6. To introduce stock levels for the proper management of the department.

1.7 NEED FOR STUDY

Inventory Management must be designed to meet the dictates of market place andsupport the companys Strategic Plan. The many changes in the market demand, new

opportunities due to worldwide marketing, global sourcing of materials and new

manufacturing technology means many companies need to change their Inventory

Management approach and change the process for Inventory Control. This system

provides information to efficiently manage the flow of materials, effectively utilize people

and equipment, coordinate internal activities and communicate with customers.

Inventory Management does not make decisions or manage operations; they provide

the information to managers who make more accurate and timely decisions to manage

their operations.

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To know the effectiveness of inventory management in the company.

To know the importance of inventory management.

How to maintain average inventory level in an organisation.

For finding the inventory conversion period.

To study the overall inventory transactions done in a company.

1.8 SCOPE OF THE STUDY

The first step in developing a system for materials management is to choose the righttype of classification for the materials and then apply appropriate techniques such as:

The economic order quantity (EOQ) formula

Bulk ordering with time phased delivery

A fixed order quantity system

A fixed order period system

A probability based trade off matrix

Speculative consideration

All these controls are applicable to inventory management in all industry, but since the

time allowed for this project is limited. The assessments are included under the heading

analysis and interpretation of the data

1.9 RESEARCH METHODOLOGY

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Research methodology simply refers to a methodical study in order to prove a

hypothesis or answer a specific question. Finding a definitive answer is the central goal

of any experimental process.

RESEARCH DESIGN

Research design means a search of facts, answers to question and solution to the

problems. It is a prospective investigation. Research is a systematical logical study of

an issue or problem through scientific method. It is a systematic and objective analysisand recording of controlled observation that may lead to the development of

generalization, principles, resulting in prediction ultimate control of events.

Research design is the arrangement of conditions for the collection and analysis of data

in manner that aims to combine relevance to the research purpose with relevance to

economy. There are various designs, which are descriptive and helpful for analytical

research.

In brief a research design contains

A clear statement of the research problem.

A specification of data required

Procedure and techniques to be adopted for data collection.

A method of processing and analysis of data.

Identifying the statement of the problem.

Collection of the companys specific literature i.e., annual reports for the study

period and the profile of the company.

Scanning through standard books to understand the theory behind the financial

performance evaluation

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Collection of information from various journals to understand the industrial

background of the study.

Sources of data:

There are two sources of data. They are as follows

1. Primary data

2. Secondary data

Primary data

This data was collected through discussion with concerned officers by sitting with them

in free time.

Secondary data

It is reviewing of relevant information, which is already collected and making inferences

based on the information collected

The secondary data used in the study are

1. Annual Report of the company

2. Financial records of the company

3. By viewing how they place order

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Tools and Techniques:

A financial analyst can adopt the following tools for analysis of the financialstatements. These are also termed as methods of Financial Analysis. The tool and

techniques used in the study are following

1. Inventory analysis and interpretation.

2. current ratio and quick ratio analysis.

3. statistical techniques.

1.10 LIMITATIONS OF THE STUDY

1. Time constraint.

2. All the informations required could not be made public by the organization.

3. A thorough discussion with all officials was not possible due to their busy

schedules.

4. The study covered a wide concept and owing to the above constraints, wide

collection and coverage of information was not possible.

5. Financial statements are essentially interim reports:

6. Influence of personal judgment:

CHAPTER-2

ANALYSIS AND INTERPRETATION

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Plan of Analysis

The data collected through primary and secondary sources were processed and

presented in the chapter. Data analysis by charts in respect of stock of raw materials,

sales, inventory control procedures and thus to draw conclusion from the analysis done.

Data Analysis

Evolution of Primary Data: Data collected through discussion with top management and

other departments like, Accounts, stores etc. From the discussion, I came to know that

the Matts Corner has both types of inventories.ie, Physical and value based inventories.

The inventory system here is fully computerized. Purchasing department is supplyingthe raw materials required by the production or service unit.

The company is following Determination of stock level inventory management

technique.

It Includes:

1. Maximum Level.

2. Minimum Level.

3. Re-order Level.

4. Danger Level.

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Inventory turn over ratio:

Concept:

This ratio indicates the speed at which the inventory is converted into sales, whichcontributed, to the profit of the organization. Higher the ratio better will be the efficiency.

Inventory turn over ratio = cost of sales / Average inventory

Table showing cost of sales, average inventory and inventory turn over ratio.

Table-2.1 Inventory Turn Over Ratio.

Year Cost of Sales Average Inventory Inventory Turn Over Ratio

2005-2006 9689186 543222 17.83651251

2006-2007 7564020 478765 15.79902457

2007-2008 8041837 497557 16.16264468

Source: Annual Report

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Chart-2.1 Inventory Turn Over Ratio

Analysis

Inventory turn over ratio in 2005-06 is 17.83 and it decreased to 15.79 in 2006-07 and in

the year 2007-08 it increased to 16.16.

Interpretation

The inventory turn over ratio is 39.00 times on an average. This is because the cost of

sales increases more proportionately than the average inventory. The higher the ratio

better will be the efficiency; company should try to reduce average inventory and

increase sales.

Inventory Conversion Period

Concept:

This ratio indicates the number of days taken to convert the inventory. This ratio is very

useful in deciding the organizations efficiency. This ratio helps the organization in

knowing its own efficiency to improve and also to show the financing institutions about

its capacity and its utilization, to obtain finance from the institutions mainly from banks.

Inventory Conversion Period = 365 days/Inventory turn over ratio.

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Table Showing the Inventory Conversion Period.

Table-2.2 Inventory Conversion Period

Year No Of Days Inventory Turn Over Ratio Inventory Conversion Period

2005-2006 365 17.83651251 20.46364163

2006-

2007 365 15.79902457 23.10269209

2007-2008 365 16.16264468 22.5866337


Chart-2.2 Inventory Conversion Period

Analysis

Inventory conversion period during the year 2005-06 was 20 days while it increased to

23 days in 2006-07 and it decreased to 22days in 2007-08.

Interpretation

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The inventory conversion period increased because of less inventory turn over ratio in

the year 2006-07, which is favourable to the company.

Raw Material Turn Over Ratio:

Concept:

Raw material turn over ratio is the velocity at which the raw materials are converted in to

goods ready for sales. If the raw material turn over ratio is high then the company is

efficiently converting the raw materials in to finished goods.

[Raw material turn over ratio = Cost of goods sold / Average raw material]

Table showing cost of sales, average raw material and raw material turn over ratio.

Table-2.3 Raw Material Turn Over Ratio

YearCost ofSales Average Raw Material Raw Material Turn Over Ratio

2005-2006 9689186 736127 13.16238366

2006-2007 7564020 885069 8.546248937

2007-2008 8041837 1177717 6.828327179

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Chart-2.3 Raw Material Turn Over Ratio

Analysis:

Raw material turn over ratio in the year 2005-06, 13.16:1 Times, which decreased to

8.54:1 Times in the year 2006-07 and it decreased to 6.82:1 Times in the year 2007-08.

Interpretation

The raw material turn over ratio is high in initial year then it has gradually decreased in

the next year due to gradually increase in average raw material and decrease in the

cost of sales which indicates an unfavorable raw material turn over ratio.

Work In Progress Turn Over Ratio:

Concept

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Work-in-progress turn over ratio indicates the speed at which the work-in-progress is

converted into the finished goods. This helps the organization to know the working

capital requirement of the organization that helps in planning.

Work-in-progress turn over ratio = Cost of goods sold / Average work in progress.

Table-2.4 Work-In-Progress Turn Over Ratio

Year Cost of SalesAverage work -in-progress

Work in progressturn over ratio

2005-2006 9689186 475667 20.36968299

2006-2007 7564020 354355 21.34588195

2007-2008 8041837 343654 23.40097016


Chart-2.4 Work-In-Progress Turn Over Ratio

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Analysis:

Here it is revealed that work in progress turn over ratio in 2005-06 was 20.36 and isincreased to 21.34 in the next year,and again increased to 23.40 in the last year 2007-

08.

Interpretation:

Work in progress turn over ratio has increased gradually in all the years because of the

proportionate change in the cost of goods sold.

Duration Of Work-in-Progress Stage:

Concept:

This indicates the number of days taken to convert the work in progress stock intofinished goods; this helps the organization to know the current requirement of stock of

other items like consumable for the further process in the production.

Duration Of Work-in-Progress Stage = 365 / work in progress turn over ratio

The table showing work in progress turn over ratio and its duration.

Table-2.5 Duration Of Work-in-Progress Stage

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Year No Of Days in a yearWork in progress turn overratio Days

2005-2006 365 20.36968299 17.91879

2006-2007 365 21.34588195 17.09932

2007-2008 365 23.40097016 15.59764


Chart-2.5 Duration Of Work-in-Progress Stage

Analysis:

The duration of converting work in progress to finished in 2005-06 was 17days and in

next year also 17 days were in 2007-08 it decreased to 15 days.

Interpretation:

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There is a gradual decreased in work in progress turn over ratio conversion period

because of increase in work in progress turn over ratio

Inventory to Current Asset Ratio

Inventory to current assets ratio indicates the relationship between the inventory and

current assets; it shows the percentage of inventory to current assets, which helps the

organization in deciding the current asset policy, which also affect the liquidity position

of the organization.

Inventory to current asset ratio = Inventory/ current assets

Table showing current assets, inventory and percentage of inventory to current assets.

Table-2.6 Inventory to Current Asset Ratio.

Year Inventory Current Assets Percentage

2005-2006 2430704 5959565 0.40786601

2006-2007 3099915 8565154 0.361921689

2007-2008 8259400 14520339 0.568815921

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.

Chart-2.6 Inventory to Current Asset Ratio

Analysis

The inventory to current asset ratio in the year 2005-06 was 0.407% and it decreased to

0.361% in the year 2006-07.And in 2007-08 it is 0.568% and is high compare to

previous years.

Interpretation

This ratio indicates the inventory components in the current assets. The inventory

component in 2006-07 was least which shows less funds blocked in current assets inform of stock. But in next year it started increasing which clearly indicates that more

portion of the inventory has blocked in current asset, at present is much higher in these

period.

Inventory to Total Assets (Percentage of total assets):

Concept:

Inventory to total assets indicates the relationship between the inventory and total

assets. The significance of this ratio is it reflects the portion of the inventory as a

percentage of the total assets, which helps the management in deciding the utilization of

remaining resources profitably. Since the inventory will lock up the huge funds and

reduces the profitability of the organization.

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Inventory to total assets = (Inventory / total assets) x 100

Table showing inventory, Total assets and its percentages.

Table-2.7 Inventory To Total Assets

Year Inventory Total Assets Percentage

2005-2006 2430704 12265929 19.81671343

2006-2007 3099915 15840910 19.56904622

2007-

2008 8259400 22257003 37.10921906


Chart-2.7 Inventory To Total Assets

Analysis:

During the year 2005-06the ratio of inventory total assets was 1/5th

and a slight

decrease in the year 2006-07. In 2007-08 it increased to more than 1/3rd

which is a high

increase in total asset.

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Interpretation:

The inventory to total assets ratio indicates that what percentage of inventory is involved

in the total stock. It was least in the year 2006-07.And the high increase in 2007-08 is

because of increase in inventory in the total asset.

Inventory to total capital employed:

Concept

This ratio indicates the relationship between the total capital employed and inventories;

it shows how much capital utilized to invest in the inventories other than the other

assets.

Inventory to capital employed ratio = Inventory / capital employed.

Capital employed = share capital + preference shares + reserves and surplus + long

term debt.

Table-6

Table showing inventory and total capital employed and its ratio.

Table-2.8 Inventory to total capital employed:

Year Inventory Capital Employed(In lacs.) Ratio {In Times}

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2005-2006 2430704 1908333 1.273731576

2006-2007 3099915 2597732 1.193315939

2007-2008 8259400 4930399 1.675199107


Chart-2.8 Inventory to capital Employed Ratio

Analysis

In the year 2005-06 the inventory to capital employed was 1.27 times, the ratio is

decreased in next year and a high increase in the year 2007-08 to 1.67 times.

Interpretation

The increase in capital employed shows that capital utilised for the stocks have

increased. Hence more portion of capital employed is invested in inventory which be

clearly shown in the chart.

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Inventory to working capital Ratio

Concept:

The relationship between inventory to working capital indicates the amount of inventory

included in the working capital. And it also shows the efficiency of inventory

management.

Inventory to working capital ratio = Inventory / working Capital

Table Showing inventory, working capital and its ratio

.

Table-2.9 Inventory To Working Capital Ratio

Year Inventory Working Capital Ratio {In Times}

2005-2006 2430704 583607 4.164967178

2006-2007 3099915 1212814 2.555969011

2007-2008 8259400 7709709 1.071298541


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Chart-2.9 Inventory to working capital

Analysis

The companys inventory to working capital ratio was 4.16 times in the year 2005-06

then it decreased in the next two years respectively.

Interpretation

The inventory to working capital ratio has decreased in these periods which indicate that

working capital is involves less in inventory. So non-liquid assets are less than liquid

assets.

Current Ratio:

Concept:

Current ratio is a more dependable indication of solvency than working capital. It is the

difference between current assets and current liabilities.

Current Ratio = current asset / current liability

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Table showing current ratio of the company.

Table-2.10 Current Ratio

Year Current Assets Current Liabilities Ratio {In Times}

2005-2006 8959565 8375958 1.069676448

2006-2007 8565154 7352340 1.164956191

2007-2008 14520339 6810630 2.132011136


Chart-2.10 Current Ratio

Analysis

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The current ratio of the company has increased from 1.06 to 2.13 in the periods 2005 to

2008.

Interpretation

The current ratio of the company is high in these periods which mean that the current

position of the company is good with respect to current liabilities.

Inventory To Sales Ratio:

Concept

Inventory to Sales indicates the relationship between the inventory and sales. It shows

how much of the inventories should be sold in an year with regarding to total inventory,

it shows companies sales of inventory.

Inventory to sales ratio = (Inventory / Sales) x 100

Table Showing Inventory, Sales and Inventory to sales Ratio

Table-1.11 Inventory To Sales Ratio

Year Inventory Sales Inventory to sales ratio

2005-2006 2430704 5468867 44.44620796

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2006-2007 3099915 5858555 52.91262094

2007-2008 8259400 10774733 76.65526375


Chart-1.11 Inventory To Sales Ratio

Analysis:

In the above table it shows in 2005-06 the inventory to sales ratio was 44.44 % and in

the next two years it is increasing to 52.91% and 76.65% respectively.

Interpretation:

Here it is the increasing of inventory to sales because of increase in inventory.Its is best

for more inventory more sales and high will be the return.

Purchase to Inventory Ratio:

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Concept:

Purchase to inventory shows the relationship between purchase and inventory. The

formula to find purchase to inventory ratio is,

Purchase to inventory ratio = purchase / inventory

Table Showing purchase, Inventory and purchase to inventory ratio.

Table-2.12 Purchase To Inventory Ratio

year purchase Inventory Purchase to inventory ratio

2005-2006 7257446 2430704 2.985738288

2006-2007 7644266 3099915 2.465959873

2007-2008 8757648 8259400 1.060324963


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Chart-2.12 Purchase To Inventory Ratio

Analysis:

It is the purchase to inventory ratio in 2005-06 as 2.98%, which decreased to

2.46% in 2006-07, which again decreased to 1.06% in 2007-08.

Interpretation:

The decrease in the purchase to inventory ratio shows the decrease in profit.

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SUMMARY AND FINDINGS

1. It is noted that Inventory turn over ratio in 2005-06 is 17.83 and it decreased to

14.37 in 2006-07 and in the year 2007-08 it increased to 16.16.

2. Inventory conversion period during the year 2005-06 was 20 days while it

increased to 25 days in 2006-07 and it decreased to 22days in 2007-08.

3. About 3/4th

of the customers are thinks that processing time and processing cost

of the company is reasonable, but some customers hints that processing time is

high.

4. Here the raw material turn over ratio in the year 2005-06, 13.16:1 Times, which

decreased to 1.76:1 Times in the year 2006-07 and it increased to6.82:1 Times

in the year 2007-08.

5. It can be seen that majority feels that there is a friendly approach from the

employee towards the customers, but still considerable number of customers

feels that employee approach is unfriendly.

6. The inventory to current asset ratio in the year 2005-06 was 0.407% and it

decreased to 0.361% in the year 2006-07.And in 2007-08 it is 0.568% and is high

compare to previous years.

7. During the year 2005-06the ratio of inventory total assets was 19.81% and a

slight decrease to19.56% in the year 2006-07. In 2007-08 it increased to 37.10%

which is a high increase in total asset.

8. In the year 2005-06 the inventory to capital employed was 1.27 times, the ratio is

decreased in next year and a high increase in the year 2007-08 to 1.67 times.

9. Working capital turnover ratio indicates that the company does not have an

efficient control over the working capital.

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10.The companys inventory to working capital ratio was 4.16 times in the year

2005-06 then it decreased in the next two years respectively.

11. The current ratio of the company has increased from 1.06 to 2.13 in the periods

2005 to 2008.

12.For more than half of the respondents quality seems to be the factor that

attracted the public to purchase the brand they are experienced.

13. Majority of respondents holds the view that TV is an effective medium for

advertisements.

A sincere effort has been made by the researcher to know the position of

inventory. The inventory position thus known from this helps the manager to take good

decision in the organization. Suggestions have also been given for the betterment of the

company.

SUGGESTIONS

The major finding of the study paves a way for the researcher to provide the

following suggestions to improve and develop inventory management in Matts corner

India pvt ltd.

1. As the inventory turnover rate is low, the inventory is high. The efficiency of

utilizing the inventory can be enhancing by reducing the stock levels to the

required level only.

2. Inventory to total capital employed increased shows that much of the capital is

utilized in inventories. The company can try to maintain a low ratio in this regard.

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3. As the raw material turnover ratio is high it indicates excessive raw material stock

lying idle, this can be reduced by purchasing the raw material when it is required.

4. The material can be purchased from the suppliers as and when required to avoid

unnecessary blockage of funds in idle stock.

5. Proper training to be given to workers for increasing efficiency in production

process.

6. The bin card system should be monitored to ensure the availability of right

quantity materials at the right time.

7. Current ratio of the company is increasing and needs to maintain it that the

liquidity position of the firm can be maintained.

8. In order to improve the brand awareness various activities like sponsorships etc

should be undertaken or should be continued.

9. A frequent audit should be made with the team by the management.

10. Special consideration should be given for employees who work in extra time.

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3.1 CONCLUSION

Finally it can be concluded that on whole the inventory position in matts

corner India pvt ltd is improving over the years. But still it has to concentrate on

the reduction of raw material holding period and inventory conversion period

which is the main cause of blockage of funds. So apart from this the inventory

control techniques and procedures followed are satisfactory. A period of one

month is taken for the study. For the particular study a simple survey was

conducted at an initial stage. After analyzing the data the study has further

shown the significance of media advertisements as a factor influencing upon the

customer buying decisions. The study has brought out that any few improvement

steps on the part of management can bring a lot of benefits to the product in the

coming future, since the target market for the product is quite high.

3.2 ANNEXURES

Over the years, Matts corner realized that people are as different as they

are similar. Different needs, different lives, different needs. With the depth of

knowledge Matts corner, today, is poised to fulfill the hopes and aspirations of

people across the length and breadth of the economy.

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BIBLIOGRAPHY

1. Kothari. C.R. ,Research Methodology Methods and Techniques, Wishwa

Prakashan, 2e,2002

2. Khan. M. Y & Jain. P. K.,Financial Management, Tata McGraw Hill, 4e, 2004.

3. K.Aswathappa & K. Sridhar Bhatt,Production and Operations Management 9 th

Edition, 2007.

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WEBSITES

1. www.mattscorner.net

2. www.mattscorne.in

3. www.google.com

4. www.wikipedia.com

WEEKLY REPORT

First week

I got permission to do a project in Matts Corner Indiapvt ltd. Later I informed the research topic and wentthrough the overview of the company.

Second week

I referred the research methodology books forreference.

Third week

This week I collected secondary data related toinventory analysis. Collected company balance sheetand P&L a/c (for 3 years).

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Fourth week

This week I started analyzing data using financial toolssuch as tables graphs and chart of the analyzed dataand interpreting the data, with the help of tables andchart.

Fifth week

I approached my guide for his opinion and guidance fordrawing conclusion.

Sixth week

I took the soft copy and showed it to the external guide.

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