CONTENTS

Chapter No. Name of the concept Page No.

Introduction Objectives I Need and scope of the study Methodology Limitations Review of Literature II 1 2 3 4 5 7

Industry Profile III Company profile IV V VI VII Data & Analysis. Findings Suggestions Conclusion Bibliography

25 43 44 70 71 72

LIST OF GRAPHS

TABLE Material turnover ratio

Page numbers

45 Holdings period 47 ABC graph for 2002-2003 59 ABC graph for 2003-2004 61 ABC graph for 2004-2005 63 ABC graph for 2005-2006 65 ABC graph for 2006-2007 67 ABC graph for 2007-2008 69

CHAPTER 1 INTRODUCTION 1.1 INTRODUCTION OF THE STUDY 1.1.1 Inventory Management

A stock of items held to meet future demand. Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. Constitute significant part of current assets, On an average approximately 60% of current assets in Public Limited Companies in India A considerable amount of fund is required Effective and efficient management imperative to avoid unnecessary investment. Improper inventory management affects long term profitability and may fail ultimately 10 to 20% of inventory can be reduced without any adverse effect on production and sales by using simple inventory planning and control techniques.

Objective of Inventory Management:

To maintain a optimum size of inventory for efficient and smooth production and sales operations To maintain a minimum investment in inventories to maximize the profitability Effort should be made to place an order at the right time with right source to acquire the right quantity at the right price and right quality

1. RIGHT QUALITY:
The quality of product is established based upon the customers needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements. 2. RIGHT QUANTITY: The manufacturing organization should produce the products in right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of products.

3. RIGHT TIME:
Timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective.

4. RIGHT MANUFACTURING COST: Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the products at preestablished cost, so as to reduce they variation between actual and the standard (preestablished) cost.

Types of Inventory

Work in process
Vendors

Raw Materials Work in process

Work in process

Finished Customer goods

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CHAPTER II REVIEW OF LITERATURE

REVIEW OF LITERATURE:

CONCEPT OF INVENTORY MANAGEMENT: Concept of inventory:

Inventory management or inventory control is an attempt to balance inventory needs and requirements with the needs to minimize costs resulting from obtaining and holding inventory.

Meaning of inventory:
INVENTORY MANAGEMENT

Introduction
Materials constitute the most significant part of current assets of a large majority of companies in India. On an average, materials are approximately 60 percent of current assets in public limited companies in India. Because of large size of materials maintained by firms, a considerable amount of funds is required to committed to them. It is, therefore, absolutely imperative to manage material efficiently and effectively in order to avoid unnecessary

investment. A firm neglecting the management of material will be jeopardizing its long-run profitability and many fail ultimately. It is possible for a company to reduce its level of material to a considerable degree, e.g., 10 to 20 percent, without any adverse effect production and sales. By using a simple material planning and control techniques. The reduction in excessive material carries a favorable impact on a companys profitability.

NATURE OF MATERIAL:
Materials are stock of the products a company is manufacturing for sale and components that make up the products. The various forms is which materials exists in manufacturing company are:

Raw Materials Working-in-Process Finished Goods.

RAW MATERIAL:
Raw Material are those basic inputs that are converted into finished products through the manufacturing process. Raw materials are thosr units mhich have been purchased and stored for future production. They are required will be determined by the rate of the raw materials and government regulation, etc. too affect the stock of raw materials. Raw materials turn over Ratio indicates the number of time material is replaced during the year. To judge whether the ratio of a firm is satisfactory or not, it should be compared over a period of time of the basis of trend analysis.

In general, a high material turnover is better than a low ratio. Yet a very high ratio calls for careful analysis. It is indicates of under investment in very low level of inventory. A very low inventory has serious implications. It is also likely that the firm may be following policy of replenishing it shock in too signified excessive material of over investment. Carrying excessive material involves the cost in terms of interest on funds of rental space and so on. Similarly, a very low material turns over ratio is dangerous. It signified excessive material or over investment. Carrying excessive inventory involves the cost in terms of interest of funds of rental space and so on. Thus a firm should have neither too low material turnover. To avoid stock out list associated with a high ratio and the cost of carrying the excessive material; there should be reasonable level for ratio the firm would well advised to maintain a close watch on the trend of ratio.

Raw material turnover ratio can be calculated as follows;

Raw material Turnover Ratio = Cost of raw material used Average Inventory

WORK IN PROGRESS:
Work in process is called stock in process. It refers to goods in the intermediate stage of production. These represents products that need more work before hey become finished product for sale. The work in process is that stage of stock which is in between raw materials and finished goods. The raw materials enter the process of manufacturing but they are yet to

attain the final shape of finished goods. The quantum of work in process depends up on the time taken in manufacturing, the more will be the amount of work in process

FINISHED GOODS:
The finished goods materials are those completely manufactured products which are ready for sale. Stocks of raw-material and working process facility production, while stock of finished goods is required for smooth marketing operations. These are goods, which are ready for consumers. The stocks of finished goods provide a buffer between the production and market. The purpose of maintaining material is to ensured proper supply of goods to the customers. In some concerns the production is undertaking on order basis. In these concerns there will not be a need for finished goods inventory. The need for finished goods stock will be more when production is under taken in general without waiting for specific orders. These, inventory serve as the link between the production and consumption of goods. The levels of three kinds of inventories for a firm depend on the nature of its business. A manufacturing firm will have substantially high levels of three kinds of materials, while retail or wholesale firms will have a very high level of finished goods in material and work in process stock. With in manufacturing firms there will be differences. Large heavy engineering companies produce long production cycles products, therefore, they carry large materials. On the other hand, materials of consumer product company will not be large because of short production cycle and fast turnover. A fourth kind of materials, supplies is also maintain by firms. These materials do not directly enter production, but are necessary for production process.

Usually these supplies are small part of total material and do not involve significant investment. Therefore, a sophisticated system of inventory control many not be maintain for them.

NEED TO HOLD MATERIALS:

The question of managing materials arises only when the company holds the material. Manufacturing materials involves tying up the companies firms and in currency of storage and handling costs. If it is expensive to maintain materials, why do companies holds materials There are three generally motives for holding materials.

TRANSCTIONS MOTIVE:
Emphasizes the needs to maintain materials to facilitate for smooth production and sales operations.

PRECAUTIONARY MOTIVE:
Necessities holding of materials guard the risk of unpredictable changes in demand and supply forces and other factors.

SPECULATIVE MOTIVE:
Influences the decision to increase of reduce material level to take advantage of prices fluctuation. A company should maintain adequate stock of materials for a continuous supply to the factory for an uninterrupted production. It is not possible for a company to procure raw materials when ever it needed. A time lag exists between demand for materials and its supply. Also, there exists uncertainly in procuring raw materials in time on many occasions. The procurement of materials may be delayed because of such factors as strike, transport disruption or short supply. Therefore, the firm should maintain sufficient stock of raw materials at a given time to stream line production. Other factors which may

necessitate purchasing and holding of raw material inventories are quantities of raw materials than needed for the desired production and sales level to obtain quantity discounts of bulk purchasing. At time, the firm would like to accumulate raw materials in anticipation of price rise. Work-in-process material builds up because of the production cycle. Production cycle is time span between introduction of raw material into production and emergence of finished product at the completion of production cycle. Till production cycle completes, stock of work-inprocess has to be maintained. Efficient firm constantly true to make production cycle smaller by improving their production techniques. Stock of finished goods has to be held because production sales are not instantaneous. A firm cannot produce immediately when goods are demanded by customers. Therefore, to supply finished goods on a regular basis, their stock has to be maintained. Stock of finished goods has also to be maintained. Stock of finished goods has also to be maintained for sudden demands from customers. In case the firms sales are seasonal in nature, substantial finished goods material should be kept to meet the peak demand. Failure to supply products to customers ,when demanded, would mean loss of the firms sales to competitors. The level of finished goods materials would depends upon coordination between sales and production as well as on production time.

OBJECTIVE:
To maintain a large size of material for efficient and smooth production and sale operation. To maintain a minimum investment in material to maximize profitability.

Both excessive and inadequate materials are not desirable. These are two danger points within which the firm should operate. The objective of material management should be to determine and maintain optimum level material investment. The optimum level material will lie between the two danger points of excessive and inadequate inventories. The firm should always avoid a situation of over investment or under investments in materials. The major dangers of over investment are: o Unnecessary tie-up of the firms funds and loss of profits. o Excessive carrying costs. o Risk of liquidity

The excessive level of material consumes funds of the firm, which cannot be used for any other purpose and thus it involves and opportunity cost. The carrying costs, such as the costs of storage, handking, insurance, recording and inspection, proportion to the volume of material. These costs will impair the firms profitability further. Excessive material carried for a long period increase chances of loss of liquidity. It may not be possible to sell material in time and at full value. Raw materials are generally difficult to sell as the holding period increases. There are exceptional circumstances where it may pay to the holding period increases. There are exceptional circumstances where it may pay to the company to hold stocks of raw materials. This is possible under conditions of inflation and scarcity. Work-inprocess is far more difficult to sell. Similarly, difficulties may be faced to dispose off finished goods materials as time lengthens. The downward shifts in market and the seasonal factors any cause finished goods to be sold at low prices. Another danger of carrying excessive material is the physical deterioration of materials while in storage. In case of certain goods or raw materials deterioration occur with passage of time,

or it may be due to mishandling and improper storage facilities. These factors are within the control of management, unnecessary investment in materials can, thus must be cut down.

Maintaining an inadequate level materials is also dangerous. The consequences of under investment in materials are: Production hold-ups and Failure to meet delivery commitments. Inadequate raw materials and work-in-process materials will result in frequent production Interruptions. Similarly, if finished goods materials are not sufficient to meet the demand of customers regularly, they may shift to competitors, which will amount to a permanent loss to the firm. The aim of material management thus should be to avoid a permanent loss to the firm. Materials should be make to place an order all the right source to acquire the right quantity at the right price and quality. An effective material management should: Ensure a continuous supply of raw materials to facilitate uninterrupted production Maintain sufficient stocks of raw materials in periods of short supply and anticipate price changes. Maintain sufficient finished goods maintain for smooth operations, and efficient customer services. Minimize the carrying cost and time, and Control investment in materials and keep it at an optimum level.

ORDERING LEVEL:
Along with the compilation of the economic order size, another important problem of the material control related to the timings of an order for replenishment of material. The problem

is concerned with arriving at the quantity level that automatically triggers a new order. This quantity level is known as Ordering cost. This quantity level of stock in respect of items materials is determined on a consideration of lead time which the time lag between the placing a order and receiving the delivery, as well as demands of the processes of production on goods during the period of lead times. It covers the time span from the point when a decision to place an order for the procurement of materials is make to the actual receipt of the material but the firm. So the lead time consists of the number of days which the goods will be in transit from the supplier. Therefore, reorder point many be defined as that material level should be equal to the consumption during the period of lead time. The ordering level should not be pitched too high which may bring in its train obvious dangers of looking of capital as also of deterioration in quality of goods and also obsolescence.

The ordering level is generally fixed by taking into account the following factors: The time intervening between the data of the order for goods and the arrival of suppliers. The average quantity consumed within a stipulated time period. The Margin of Safety Some authorities hold the view that ordering level is equivalent to minimum stock level at which order should be placed and, on this basis they describe it as re-ordering level but others make a distinction between ordering level and minimum stock in as much as the latter is lower because no allowance is made for the margin of safety in its determination.

MAXIMUM LEVEL::

The maximum level is the largest quantity of particular material, which should be kept in the store at any one time. The fixation of maximum level is necessary to avoid unnecessary blocking of capital in materials, losses on account of deterioration and obsolescence of materials, extra overheads and temptation to thefts.

Storage space Availability of working capital. Seasonal considerations of materials and time necessary in obtaining the new material Rate of consumptions of materials and time necessary in obtaining the new material Rules framed by government for import or procurement EOQ Cost of storage, insurance, interest on capital invested in stock.

RE-ORDER POINT
The problem how much to order, is solved by determining the economic quantity, yet the answer should be sought to the second problem, when to order. This is a problem of determining the re-order point under certainty, we should know: Lead time Average usage , and Economic order quantity

Lead time is the time normally taken in replenishing materials after the order has been placed. By certainty we mean that usage and lead time do not fluctuate. Under such a situation , reorder point is simply that material level which will be maintained for consumption during the lead time. That is:

RE-ORDER POINT (LEAD TIME AVERAGE USAGE) SAFETY STOCK :

Using the above formula, it is difficult to predict usage and lead-time accurately. The demand for material many fluctuate from the normal lead time. If the actual usage increases or the delivery of the material is delayed the firm can face a problem of stock stock-out. Therefore, in order to guard against the stock-out the firm may maintain a safety stock i.e., some minimum or buffer material as cushion against the stock-out the firm may maintain a safety stock i.e., some minimum or buffer material are against expected increased usage and/ or delay in deliver in time. Thus the formula to determine the re-order point when the safety stock is maintained is as follows

RE-ORDER POINT = (LEAD TIME * AVERAGE USAGE) +SAFETY STOCK

INVENTORY MANAGEMENT TECHNIQUES

ECONOMICS ORDER QUALITY:
There are two questions relating to materials management: What should be the size of the order At what level should the order placed?

To answer the first question the basic economics order quality model is helpful. If the firm is baying raw material, is has to be purchased on each replenishment. This problem is called order quality problem and the task of the firm is to; determine the optimum or EOQ.

The determination of the appropriate quality to be purchased in each lot to replenish stock as a solution to the order quality problem necessitate resolution of conflicting goals buying in large quantities implies a higher inventory level which will assure. 1. Smooth production/sales operations. 2. Lower ordering of set up costs.

But if will involve higher carrying costs. On the other hand small orders will reduce the carrying costs would increase as there is a likelihood operations due to stock-cuts. A firm should place neither too small orders on the basis of trade off between the benefits from the availability of inventory and the cost of carrying. To take enough care to avail the concession available in purchasing materials. Ensuring that the material of requisite specifications and quality have been received in good in good condition. Determining an optimum material level involves two types of costs: 1. ORDERING , COSTS & 2. CARRTYING COSTS of interruption the operations the

ORDERYING COSTS:
The term ordering cost is used in case of raw material and includes the entire cots of acquiring raw materials. They include costs incurred in following activites ; purchase ordering, transporting, receiving , inspecting. Ordering costs increase the number of orders: thus more frequently the material is acquired the firms ordering costs. On the other hand, if the firm maintains large inventory levels, there will be few orders placed and ordering costs will be relatively small. Thus , the ordering costs decrease with size of inventory.

CARRYING COSTS:
Costs incurred for maintaining a given level of inventory are called carrying costs. They include storage, takes, insurance, deterioration, obsolescence incurred on recording and providing special facilities such as fencing, lines etc. carrying costs vary with increases in inventory size. The economic size of the inventory would thus depend on trade-off between carrying costs and ordering costs.

ORDERING AND CARRYING COSTS TRADE-OFF:

The optimum inventory size is commonly referred to as economic order quality. It is that order size at which annual total costs of ordering and holding are the minimum. To find this the formula is:

EOQ = Sqrt (2AO/C)

Where,

A = Annual Total Requirement, O = Ordering Costs, C = Carrying Coasts.

ASSUMPTIONS IF EOQ:
1. The fore casts usage/damage for a given period, usually one year, is known. 2. The usage/demand is even throughout the period. 3. Inventory orders can be replenished immediately (there is no delay in placing and receiving orders). 4. There are two distinguishable coasts associated with inventories: Costs of ordering and Costs of Carrying. 5. The cost per order is constant regardless of orders.

6. The cost of carrying is a fixed percentage of the average value of inventory.

ANALYSIS OF INVESTMENT IN MATERIAL:

It is a major responsibility of the financial manager to over-see the management of material since material represent investment of the firms large fund in practice. A Decision to determine or change the level of material is an investment in material. The goal of material policy will maximize the firm value at a point at which marginal (incremental) return from the investment in material equal the marginal (increment) cost funds used to finance the investment in material. The cost of funds is the required rate of return of return to suppliers of funds, and it depends on the risk of the investment opportunity.

INCREMENTAL ANALYSIS:
The investment in material should be analyzed involving the following four steps: Estimation of operating profit. Estimation of investment in material. Estimation of the rate of return on investment in material,. Comparison of the rate of return on investment with the cost funds.

The incremental analysis should be used to compute the value of the operating Profit investment in inventory, rate of return and cost of funds. A change in the material policy is desirable if the incremental rate of return exceeds the require rate of return.

SECURITY INVENTORY CONTROL: ABC ANALYSIS

Usually a firm has to maintain several type of material. It is not desirable to keep the same degree of control on all the items. The form should pay maximum attention to those items

whose value is the highest. The firms should, therefore, classify material to identify which items should receive the most effort in controlling. The firm should be selective in its approach to control investment in various type of materials. This analytical approach is called ABC analysis and tends to measure the significance of each item of material in terms of its value. The high value items are classified as A items and would be under the tightest control. C items represent relatively least value would be under simple control. B items fall in between these two categories and require reasonable attention of management. The ABC analysis concentrates and exception. As items are classified in the importance of their relative value, this approach is also known as PROPORTIONAL VALUE ANALYSIS.

RESEARCH METHODOLOGY:

Meaning :
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.

INTRODUCTION:
Case study research excels at bringing us to an understanding of a complex issue or object and can extend experience or add strength to what is already known through previous research. Case studies emphasize detailed contextual analysis of a limited number of events or conditions and their relationships. Researchers have used the case study research method for many years across a variety of disciplines. Social scientists, in particular, have made wide use of this qualitative research method to examine contemporary real-life situations and

provide the basis for the application of ideas and extension of methods. Researcher Robert K. Yin defines the case study research method as an empirical inquiry that investigates a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used (Yin, 1984, p. 23). Critics of the case study method believe that the study of a small number of cases can offer no grounds for establishing reliability or generality of findings. Others feel that the intense exposure to study of the case biases the findings. Some dismiss case study research as useful only as an exploratory tool. Yet researchers continue to use the case study research method with success in carefully planned and crafted studies of real-life situations, issues, and problems. Reports on case studies from many disciplines are widely available in the literature. This paper explains how to use the case study method and then applies the method to an example case study project designed to examine how one set of users, non-profit organizations, make use of an electronic community network. The study examines the issue of whether or not the electronic community network is beneficial in some way to non-profit organizations and what those benefits might be.

This introduction to case study research draws upon their work and proposes six steps that should be used: Select the cases and determine data gathering and analysis techniques. Prepare to collect the data. Collect data in the field. Evaluate and analyze the data. Prepare the report .

Determine Data Gathering and Analysis Techniques:

During the design phase of case study research, the researcher determines what

approaches to use in selecting single or multiple real-life cases to examine in depth and which instruments and data gathering approaches to use. When using multiple cases, each

case is treated as a single case. Each cases conclusion can then be used as information contributing to the whole study, but each case remains a single case. Exemplary case studies carefully select cases and carefully examine the choices available from among many research tools available in order to increase the validity of the study. The researcher must determine whether to study cases which are unique in some way or cases which are considered typical and may also select cases to represent a variety of geographic regions, a variety of size parameters, or other parameters. A useful step in the selection process is to repeatedly refer back to the purpose of the study in order to focus attention on where to look for cases and evidence that will satisfy the purpose of the study and answer the research questions posed. Selecting multiple or single cases is a key element, but a case study can include more than one unit of embedded analysis. For example, a case study may involve study of a single industry and a firm participating in that industry. This type of case study involves two levels of analysis and increases the complexity and amount of data to be gathered and analyzed. A key strength of the case study method involves using multiple sources and techniques in the data gathering process. The researcher determines in advance what evidence to gather and what analysis techniques to use with the data to answer the research questions. Data gathered is normally largely qualitative, but it may also be quantitative. Tools to collect data can include surveys, interviews, documentation review, observation, and even the collection of physical artifacts. The researcher must use the designated data gathering tools systematically and properly in collecting the evidence. Throughout the design phase, researchers must ensure that the study is well constructed to ensure construct validity, internal validity, external validity, and reliability. Construct validity requires the researcher to use the correct measures for the concepts being studied. Internal validity (especially important with explanatory or causal studies) demonstrates that certain conditions lead to other conditions and requires the use of multiple pieces of evidence from multiple sources to uncover convergent lines of inquiry. The researcher strives to establish a chain of evidence forward and backward. External validity reflects whether or not findings are generalizable beyond the immediate case or cases; the more variations in places, people, and procedures a case study can withstand and still yield the same findings, the more external validity. Techniques such as cross-case examination and within-case examination along with literature review helps ensure

external validity. Reliability refers to the stability, accuracy, and precision of measurement. Exemplary case study design ensures that the procedures used are well documented and can be repeated with the same results over and over again.

Prepare to Collect the Data :Because case study research generates a large amount of data from multiple sources,

systematic organization of the data is important to prevent the researcher from becoming overwhelmed by the amount of data and to prevent the researcher from losing sight of the original research purpose and questions. Advance preparation assists in handling large amounts of data in a documented and systematic fashion. Researchers prepare databases to assist with categorizing, sorting, storing, and retrieving data for analysis. Exemplary case studies prepare good training programs for investigators, establish clear protocols and procedures in advance of investigator field work, and conduct a pilot study in advance of moving into the field in order to remove obvious barriers and problems. The investigator training program covers the basic concepts of the study, terminology, processes, and methods, and teaches investigators how to properly apply the techniques being used in the study. The program also trains investigators to understand how the gathering of data using multiple techniques strengthens the study by providing opportunities for triangulation during the analysis phase of the study. The program covers protocols for case study research, including time deadlines, formats for narrative reporting and field notes, guidelines for collection of documents, and guidelines for field procedures to be used. Investigators need to be good listeners who can hear exactly the words being used by those interviewed. Qualifications for investigators also include being able to ask good questions and interpret answers. Good investigators review documents looking for facts, but also read between the lines and pursue collaborative evidence elsewhere when that seems appropriate. Investigators need to be flexible in real-life situations and not feel threatened by unexpected change, missed appointments, or lack of office space. Investigators need to understand the purpose of the study and grasp the issues and must be open to contrary findings. Investigators must also be aware that they are going into the world of real human beings who may be threatened or unsure of what the case study will bring.

Collect Data in the Field :-

The researcher must collect and store multiple sources of evidence comprehensively and systematically, in formats that can be referenced and sorted so that converging lines of inquiry and patterns can be uncovered. Researchers carefully observe the object of the case study and identify causal factors associated with the observed phenomenon. Renegotiation of arrangements with the objects of the study or addition of questions to interviews may be necessary as the study progresses. Case study research is flexible, but when changes are made, they are documented systematically. Exemplary case studies use field notes and databases to categorize and reference data so that it is readily available for subsequent reinterpretation. Field notes record feelings and intuitive hunches, pose questions, and document the work in progress. They record testimonies, stories, and illustrations which can be used in later reports. They may warn of impending bias because of the detailed exposure of the client to special attention, or give an early signal that a pattern is emerging. They assist in determining whether or not the inquiry needs to be reformulated or redefined based on what is being observed. Field notes should be kept separate from the data being collected and stored for analysis. Maintaining the relationship between the issue and the evidence is mandatory. The researcher may enter some data into a database and physically store other data, but the researcher documents, classifies, and cross-references all evidence so that it can be efficiently recalled for sorting and examination over the course of the study.

Evaluate and Analyze the Data:The researcher examines raw data using many interpretations in order to find linkages

between the research object and the outcomes with reference to the original research questions. Throughout the evaluation and analysis process, the researcher remains open to new opportunities and insights. The case study method, with its use of multiple data collection methods and analysis techniques, provides researchers with opportunities to triangulate data in order to strengthen the research findings and conclusions. The tactics used in analysis force researchers to move beyond initial impressions to improve the likelihood of accurate and reliable findings. Exemplary case studies will deliberately sort the data in many different ways to expose or create new insights and will deliberately look for conflicting data to disconfirm the analysis. Researchers categorize,

tabulate, and recombine data to address the initial propositions or purpose of the study, and conduct cross-checks of facts and discrepancies in accounts. Focused, short, repeat interviews may be necessary to gather additional data to verify key observations or check a fact. Specific techniques include placing information into arrays, creating matrices of categories, creating flow charts or other displays, and tabulating frequency of events. Researchers use the quantitative data that has been collected to corroborate and support the qualitative data which is most useful for understanding the rationale or theory underlying relationships. Another technique is to use multiple investigators to gain the advantage provided when a variety of perspectives and insights examine the data and the patterns. When the multiple observations converge, confidence in the findings increases. Conflicting perceptions, on the other hand, cause the researchers to pry more deeply. Another technique, the cross-case search for patterns, keeps investigators from reaching premature conclusions by requiring that investigators look at the data in many different ways. Cross-case analysis divides the data by type across all cases investigated. One researcher then examines the data of that type thoroughly. When a pattern from one data type is corroborated by the evidence from another, the finding is stronger. When evidence conflicts, deeper probing of the differences is necessary to identify the cause or source of conflict. In all cases, the researcher treats the evidence fairly to produce analytic conclusions answering the original "how" and "why" research questions.

Prepare the report :Exemplary case studies report the data in a way that transforms a complex issue into

one that can be understood, allowing the reader to question and examine the study and reach an understanding independent of the researcher. The goal of the written report is to portray a complex problem in a way that conveys a vicarious experience to the reader. Case studies present data in very publicly accessible ways and may lead the reader to apply the experience in his or her own real-life situation. Researchers pay particular attention to displaying sufficient evidence to gain the readers confidence that all avenues have been explored, clearly communicating the boundaries of the case, and giving special attention to conflicting propositions.

Techniques for composing the report can include handling each case as a separate chapter or treating the case as a chronological recounting. Some researchers report the case study as a story. During the report preparation process, researchers critically examine the document looking for ways the report is incomplete. The researcher uses representative audience groups to review and comment on the draft document. Based on the comments, the researcher rewrites and makes revisions. Some case study researchers suggest that the document review audience include a journalist and some suggest that the documents should be reviewed by the participants in the study.

Conclusion:Case studies are complex because they generally involve multiple sources of data,

may include multiple cases within a study, and produce large amounts of data for analysis. Researchers from many disciplines use the case study method to build upon theory, to produce new theory, to dispute or challenge theory, to explain a situation, to provide a basis to apply solutions to situations, to explore, or to describe an object or phenomenon. The advantages of the case study method are its applicability to real-life, contemporary, human situations and its public accessibility through written reports. Case study results relate directly to the common readers everyday experience and facilitate an understanding of complex real-life situations.

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 analysis and 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

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 Annual Report of the company Financial records of the company

 By viewing how they place order

Tools and Techniques:

A financial analyst can adopt the following tools for analysis of the financial statements. These are also termed as methods of Financial Analysis. The tool and techniques used in the study are following Inventory analysis and interpretation. current ratio and quick ratio analysis. statistical techniques.