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Inventories constitute the most significant part of current assets of a large majority of companies in India. On an average, inventories are approximately 60% of current assets in public limited companies in India. Because of the large size of inventories maintained by firms, a considerable amount of feuds is required to be committed to them. It is therefore, absolutely imperative to ménage inventories efficiently and efficiently in order to avoid unnecessary investment. A firm neglecting the management of inventories will be jeopardizing its long run profitability and may fail ultimately. It is possible for fore a company to reduce its levels of inventories to a considerable degree e.g. 10 to 20 percent, without any adverse effect on production and sales, by using simple inventory planning and control techniques. The reduction in excessive inventory carries a favorable impact on a company’s profitability.
“An adequate inventory facilitates production activities and help to customer’s satisfaction by providing goods service.”
The basic financial aim of an enterprise is maximization of its value. At the same time, a large both theoretical and practical meaning has the research for determinants increasing the firm value. Most financial literature contains information about numerous factors influencing the value. Among those factors is the net working capital and elements creating it, such as the level of cash tied in accounts receivable, inventories and operational cash balances?
A large majority of classic financial models proposals, relating to the optimum current assets management, we reconstructed with net profit maximization in view. In order to make these models more suitable for firms, which want to maximize their value, some of them must be reconstructed. In the sphere of inventory management, the estimation of the influence of changes in a firm’s decisions is a compromise between limiting risk behaving greater inventory and limiting the costs of inventory. It is the essential problem of the corporate financial management.
The basic financial inventory management aim is holding the inventory to minimally acceptable level in relation to its costs. Holding inventory means using capital to finance inventory and links with inventory storage, insurance, transport, obsolescence, wasting and spoilage costs. However, maintaining a low inventory level can, in turn, lead to other problems with regard to meeting supply demands.
NEED OF THE STUDY:-
Inventories are equivalent to cash and they make up an important of the total cost. It is essential that inventory should be properly safeguarded and correctly accounted. Proper control of inventory can make a substantial contribution to the efficiency of a business.
The success of a business concern largely depends upon efficient purchasing, storage, consumption and accounting. Inventory plays a vital role in study of inventory management in bulk so I selected the Katkam Motors
OBJECTIVE OF THE STUDY:-
To examine the organization structure of inventory management in the stores of the Katkam Honda.
To discus pattern levels & trends of inventories in Katkam Honda.
To understand the various inventory control techniques followed by stores in Katkam Honda.
To know the inventory control technique of Katkam Honda.
To access the performance of inventory management of the Katkam Honda by selected accounting ratios.
Methods of data collection:
In analysis of inventory of Katkam Motors, We collect the data by the different sources. We collect the primary and secondary data.
PRIMARY DATA –
Primary data or fresh data are those data that are originated very first time with the help of primary data we formulated the research objectives. Primary data are the accurate, attainable, reliable and useful data.
1. Inventory control techniques used by the company
2. Inventory systems as perpetual and periodic systems.
3. Stock levels etc.
4. Company’s website
SECONDARY DATA –
The secondary data are those data that are already in presence for specific purpose, we use the secondary data about inventory to look old records of the company
In the analysis of inventory, the secondary data provided is not sufficient then we collected primary data.
LIMITATIONS OF THE STUDY:-
The study is limited only for a period of 5 years i.e., from 2010-11 to 2014-2015
The limitation of Ratio analysis can be applicable to the study.
There may be approximations.
The study is purely based on secondary.
To results in a lack of detail in the information about how inventory moves.
The nature of a small business may not require such detail, or minimum order quantities of raw materials at aggressive discounts may cover several periods, making such detail unnecessary, so these limitations may be minimal for certain businesses.
COMPANY PROFILE
Motorcycles have made their debut around the 1950s; this section looks at the two wheelers which have over the years caught the imagination of the country. It was in the year 1954 that the Indian government ordered for totaling number of 800 motorcycles to man the Pakistani borders. The bullets which were initially launched in England as a 350cc bike and it was upgraded to 500cc a year or so later.
These bikes have remained unaltered, barring some cosmetic changes which have undergone over the years. Thus one can say without much of the doubt that the 1955 Bullet was one of the initial hits of the Indian two wheeler industries and till today it continues to be a darling of the motorcycle enthusiasts. Enfield Bullet had a close competition with another study bike named Rajdoot; as the bike was strong enough to handle the rough Indian roads.
The company had roped in Indian He-Man Dharmendra for the promotion of the Bike. With more than 1.6 million vehicles on the road the Rajdoot motorcycle was one of the initial hits of the earlier years of two wheeler industry in the country. When heavy motorcycles were the order of the day a relatively lighter bike had caught on the imagination of the Indian 2 wheeler user. Ind-Suzukia bike launched by the then TVS Suzuki group was an instant hit.
The bike could not sustain its initial success due to the high import content in the vehicle and less of the localization. In Scooters Bajaj Chetak has been hugely responsible for adding momentum, to the transport system of the country, till today it remains one of the most successful brands to have come out of the Bajaj Stable.
The scooter is named after the Horse of Legendry RanaPratap Singh; these sets of two wheels have become a part of the Indian milieu and are often considered a representative of the Indian middle class operation. Very few 2 wheelers have been able to emulate the success, which Bajaj Chetak has achieved over the years. Similarly LML Motors enjoyed a reasonable success with the launch of LML select which came with new age technology and improved performance.
Today newer models of 2 wheeler are entering the market every day, slowly pushing these names down the memory lane. However names like Chetak, Rajdoot and Bullet will always find a mention in the history of 2 wheelers in the country.
About 2 wheelers:
The motorcycle has entered its third century, and the two wheeler has come a long way from its origins as a bicycle with an engine. Its new celebrated in the museums and is revered as a symbol of rebellion and freedom. With the meteoric rise in gas prices in the first decade of 21st century, many former riders are returning to motorcycles to save on gas and to create less impact on the environment.
History:
The first motorized two wheeler was built by SYLVESTER HOWARD ROPER of Massachusetts in 1867. The inventor demonstrated his steam powers motorbike at fairs along the east coast. It featured hand grip twist throttle and a 2 cylinder engine fired by coal. It did not catch on. The German inventors Gottlieb Daimler and Wilhelm May Bach produced the Reitwagen (“Riding Car”), the first gas powered bike in 1885. The German Company Hildebrand & wolfmuller debuted the first bikes for sale to the public in 1894. All the major motorcycle brands that are still around today. Were founded in the period of 1902 to 1955. Triumph (1902), Harley-Davidson (1903), Honda (1946), Suzuki (1952) Kawasaki (1954) and Yamaha (1955).
Types:
Motorcycles are classified as either street or off-road. Off-road Bikes are built to with stand the vagaries of travelling over unpaved terrain. There are 3 basic types of Street motorcycles. A standard bike usually doesn’t have the room of lots of luggage or accessories and the rider is positioned upright with his knees below his waist. Cruisers are larger, with lots of room for baggage and other extras. The cruiser rider usually sits low in the saddle, reclined back a little, arms extended farther to the handle bars. The third category, the Sport Bike usually has plastic fairing and is much lighter faster and more maneuverable than standards and cruisers, the riding profile is a lean towards the handle bars. Each of these categories has sub categories of specialized motorbikes, including the sport tourer, which has more room for luggage and a more upright rider profile.
Popularity:
Motorcycle sales worldwide grew by 6.5 percent during the economic downturn of 2009. According to Bloomberg.com. The insurance institute for Highway safety estimates that motorcycle registrations in the United States grew by 51 percent between 2000 & 2005.
Safety:
Fatal accidents involving motorcycles are far higher than cars. Data from the U.S department of Transportation’s 2005 Fatality Analysis Reporting System report (the latest available of this writing) indicates there were 25.32 car crashes resulting in a fatality per 100, 00 passenger cars in that year, compared to 85.93 fatalities per 100,00 re4gistered motorcycles.
The biggest causes of motorcycle rider fatalities are passenger vehicles making an illegal turn into the rider and riders taking turns too wide and going off the road.
Fuel Efficiency:
The United States govt. does not require fuel emissions standards for motorcycles and the industry does not have a standardized method for computing miles per gallon. Modern motorcycles average around 50 miles per gallon.
Two Wheeler Models:
The two wheelers have played a pivotal role in the surging growth of the Indian automobile industry. Over the years domestic sale of various brands of 2 wheelers has grown in large numbers. Even, in exports, the 2 wheelers have been able to maximize the profit margin of various 2 wheelers manufacturers. There are mainly 3 models of 2 wheelers namely, Scooter & motorcycles & mopeds. In recent years, the 2 wheeler industry has witnessed a sea change. During the yesteryears the scooters used to have about 50 % of the Market share and the rest were divided between the motorcycles and mopeds. But now the trend indicates the people are referring motorcycles more than the scooters. At present there is a huge demand for the motorcycle models in India.
Two Wheeler Companies:
There are a number of 2 wheeler companies in India. The produced vehicles of extremely high standard. Some of the leading 2 wheeler manufactures in India are Bajaj Auto, TVS motors, Kinetic Motors, Suzuki Motor Corporation, Royal Enfield Motors India, Yamaha motor India, LML India & Honda Motor Cycle & Scooters India Pvt Ltd. Many of 2 wheelers manufactured by these companies are exported to countries in South East Asia, Africa & South America. Motorcycles are as usually priced higher than that of the scooters and mopeds.
There are even equipped with more features for faster travel based upon the engine displacements and power capacity motor cycles are further classified as ;
Road Bikes, Trial Bikes, Racing Bikes, & Touring Bikes Most of the motorcycles in India come with engine capacity of about 100cc to 250cc.
The engine capacity of Scooters as usually varies between 100cc to 150cc. Mopeds have small engine capacity ranging between 50cc to 100cc. most of the automobile companies in this segment are always coming up with newer variants of different models of 2 wheelers.
To be in the long run these companies are even adding more number of features to these vehicles. Bike models become popular when they are as good in appearance as in the performance. Two wheeler bike models in India also get popular when they are in good price range along with other attractive features.
Two wheelers in India:
India is the second largest producer of two wheelers in the world. In the last few years the Indian 2 wheeler industry has seen spectacular growth. The country stands next to China & Japan in terms of production and sales respectively.
Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in 2 wheeler industries, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy communication. Large varieties of 2 wheelers are available in the market. known for their latest technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class for both men and women in India.
Benefits of 2 wheelers:
Two wheelers are the most popular and highly sought out medium of transport in India. The trend of owning 2 wheelers is due to its:
Economical price.
Safety.
Fuel-efficient.
Comfort level.
However, few Indian bike enthusiasts prefer high performance imported bikes. Some of the most popular high speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero Honda Karizma, and Bajaj Pulsar & Honda Unicorn. These super bikes are specially designed for those who have a zeal for speedy drive. Browse through the pages and catch all the details of high performance 2 wheelers in India. Know more about latest launches and happenings in 2 wheelers industry.