A

Training Report
On
“INVENTORY MANAGEMENT”
At
ACTI VEDA LTD.

Submitted in partial fulfillment of the requirement of

Bachelor of Business Administration
To
Kurukshetra University, Kurukshetra

(Session 2023-2024)
SUBMITTED TO: SUBMITTED BY:
Dept. of Commerce & Management Nikhil Saini
Arya P.G. College, Panipat University Roll No. 210003091

ARYA P.G. COLLEGE, PANIPAT

AFFILIATED TO KURUKSHETRA UNIVERSITY,
KURUKSHETRA
 DECLARATION

I hereby declare that I have completed the project entitled “Inventory Management”
assigned by me for the training report to be submitted in the partial fulfillment of BBA degree
from Kurukshetra University Kurukshetra. Further I declare that this is original work done by
me and information provided in the study is authentic to the best of my knowledge.

This study has not been submitted to any other Institution or University for the
award of any other degree or for any purpose.

Nikhil Saini
 ACKNOWLEDGEMENT

I would like to thank Dr. Jagdish Gupta (Principal, Arya P.G. College, Panipat) and Dr.
Madhu Gaba (HOD, Department of Commerce & Management) for supporting me
during this project and providing me an opportunity to learn outside the classroom it was
truly a wonderful learning experience.

I would like to thank my project incharge for guiding me through my internship. Her
encouragement time and effort are greatly appreciated.

I am grateful to the management of ACTI Veda Ltd. & the executive of ACTI Veda Ltd. who
spared valuable time to share their knowledge & experience with me.
 PREFACE

Managing human resources in today’s dynamic environment is becoming more and more
complex as well as important. Recognition of people as a valuable resource in the
organization has led to increases trends in employee maintenance, job security, etc
My research project deals with “Inventory Management” as carried out at ACTI Veda Ltd.
in this report.

In the first section of my report, I have conducted a research study to evaluate the process of
“Inventory Management” as carried out at ACTI Veda Ltd.

The second section of my report deals with a detailed company profile. It includes the
company’s history: its activities and operations, organizational structure, etc. this section
attempts to give detailed information about the company and the nature of it’s functioning.
The third section deals with “Inventory Management”. In this section, I have given a brief
conceptual explanation to “Inventory Management”. It contains the definition, process and
significance of “Inventory Management” this section also contains my findings, conclusions,
suggestions and feedback.
 Sr. No CONTENTS

1. CHAPTER 1 : INDUSTRY PROFILE

• Introduction to the Industry
• Introduction to Company
Introduction to Topic

2. CHAPTER 2 : REVIEW OF LITERATURE

3. CHAPTER 3 : RESEARCH METHODOLGY

 Title of the study
 Data collection method
 Limitations of the study

4.
CHAPTER 4 : DATA ANALYSIS AND INTERPRETATION
• Ratio analysis
• Comparison statement
• Document of finished goods

5. CHAPTER 5 : FINDING, SUGGESTIONS & CONCLUSION

• FINDING
• SUGGESTIONS
• CONCLUSION
• INVENTORY VALUATION

BIBLIOGRAPHY

. ANNEXURES
 CHAPTER-1
INTRODUCTION

THE PHARMACEUTICAL INDUSTRY-GLOBAL VIEW

ORIGINS AND EVOLUTION

“ACTI VEDA Pharmaceuticals” are the prominent processors and suppliers of a wide range
of medicines. We offer these high quality products which are a result of high end research and
development and are prescribed readily by doctors world-over. These medicines have exact
formulations and are free from any side-effects. We also offer a wide range of Ayurvedic
syrups and oils that are completely herbal formulations. These products are known for their
long term healing and cure of various diseases, pain and other disorders.

Our processing unit is a state-of-the-art unit decked with all modern amenities required in the
processing of medicines. This facility is located in Panipat, Haryana. The city is conveniently
connected with all major transport networks. Our processing unit is backed by a warehouse
specially designed for the purpose. It has efficient temperature and humidity control systems,
required for proper storage of medicines before these are dispatched.
India is the largest provider of generic drugs globally. Indian pharmaceutical sector supplies
over 50% of global demand for various vaccines, 40% of generic demand in the US and 25%
of all medicine in the UK. Globally, India ranks 3rd in terms of pharmaceutical production by
volume and 14th by value. The domestic pharmaceutical industry includes a network of 3,000
drug companies and ~10,500 manufacturing units.
India enjoys an important position in the global pharmaceuticals sector. The country also has
a large pool of scientists and engineers with a potential to steer the industry ahead to greater
heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS
(Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
Market Size
According to the Indian Economic Survey 2022, the domestic market is expected to grow 3x
in the next decade. India’s domestic pharmaceutical market is estimated at US$ 42 billion in
2022 and likely to reach US$ 65 billion by 2024 and further expand to reach ~US$ 120-130
billion by 2030.
India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture,
bio-industry, and bioinformatics. The Indian biotechnology industry was valued at US$ 64
billion in 2019 and is expected to reach US$ 150 billion by 2025.
India’s medical devices market stood at US$ 10.36 billion in FY21. The market is expected
to increase at a CAGR of 37% from 2020 to 2025 to reach US$ 50 billion.
As of August 2022, CARE Ratings expect India's pharmaceutical business to develop at an
annual rate of ~11% over the next two years to reach more than US$ 60 billion in value.
In the global pharmaceuticals sector, India is a significant and rising player. India is the
world's largest supplier of generic medications, accounting for 20% of the worldwide supply
by volume and supplying about 60% of the global vaccination demand. The Indian
pharmaceutical sector is worth US$ 42 billion and ranks 3rd in terms of volume and 13th in
terms of value worldwide.
In August 2022, the Indian pharmaceutical market increased at 17.7% annually, up from
13.7% in July 2022. According to India Ratings & Research, the Indian pharmaceutical
market revenue is expected to be over 12% Y-o-Y in FY22.
Exports
India’s drugs and pharmaceuticals exports stood at US$ 24.44 billion in FY22. India is the
12th largest exporter of medical goods in the world. The country’s pharmaceutical sector
contributes 6.6% to the total merchandise exports. As of May 2022, India supplied a total of
586.4 lakh COVID-19 vaccines, comprising grants (81.3 lakh), commercial exports (339.7
lakh) and exports under the COVAX platform (165.5 lakh), to 71 countries. Indian drugs are
exported to more than 200 countries in the world, with US being the key market. Generic
drugs account for 20% of the global export in terms of volume, making the country the
largest provider of generic medicines globally. India’s drugs and pharmaceuticals exports
stood at US$ 3.76 billion between April 2022 and May 2022. The foreign direct investment
(FDI) inflow in the Indian drugs and pharmaceuticals sector stood at US$ 18.12 billion
between April 2000 and June 2022. The foreign direct investment (FDI) inflows in the Indian
drugs and pharmaceuticals sector reached US$130 million between April 2022 and June
2022. In FY22, North America was the largest market for India’s pharma exports with a 34%
share and exports to the U.S., Canada and Mexico recorded a growth of 12.6%, 30% and
21.4%, respectively.
Investments and Recent Developments
The Union Cabinet has given its nod for the amendment of existing Foreign Direct
Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100% under
the automatic route for manufacturing of medical devices subject to certain conditions.
The Indian drugs and pharmaceuticals sector received cumulative FDIs worth US$ 17.99
billion between April 2000 and March 2022.
Some of the recent developments/investments in the Indian pharmaceutical sector are as
follows:
 In October 2022, AstraZeneca India launched a Clinical Data and Insights (CDI)
division to further strengthen its global presence and manage data-related aspects of
its clinical trials.
 In September 2022, the Indian government contributed US$ 4 billion to the
pharmaceutical and medical industries.
 In August 2022, Glenmark collaborated with SaNOtize to introduce spray for
COVID-19 treatment in India and other Asian markets.
 In August 2022, Uniza Group, an Ahmedabad-based pharmaceutical firm, signed an
agreement with Lysulin Inc. (an US-based firm) to introduce Lysulin, a nutritional
product for Indian consumers.
 In August 2022, Alkem Laboratories introduced Famotidine and Ibuprofen tablets to
treat osteoarthritis and rheumatoid arthritis symptoms in the US.
 In July 2022, Generic Health (an Australia-based subsidiary of Lupin Limited) signed
an agreement with Southern Cross Pharma Pty Ltd. (SCP). Under this deal, Lupin will
 acquire 100% shares of SCP. The acquisition is expected to further strengthen Lupin’s
foothold in Australia.
 In July 2022, Generic Health (an Australia-based subsidiary of Lupin Limited) signed
an agreement with Southern Cross Pharma Pty Ltd. (SCP). Under this deal, Lupin will
acquire 100% shares of SCP. The acquisition is expected to further strengthen Lupin’s
foothold in Australia.
 In June 2022, Sun Pharmaceuticals acquired the patent license for Dapagliflozin from
AstraZeneca. The company will be distributing and promoting the drug under the
brand name ‘Oxra’.
 In June 2022, Lupin Ltd. announced its intention to enter the digital healthcare space
in India. It incorporated Lupin Digital Health Ltd., a wholly owned subsidiary, to
provide a digital therapeutics platform for medical practitioners and patients in the
country.
 In May 2022, Cipla launched a real-time COVID-19 detection kit ‘ViraGen’ that is
based on multiplex polymerase chain reaction (PCR) technology.
 In May 2022, the Government of India invited R&D proposals on critical components
and innovations in oxygen concentrators by June 15, 2022.
 In May 2022, Indian Immunologicals Ltd. (IIL) and Bharat Immunologicals and
Biologicals Corporation (BIBCOL) inked technology transfer pacts with Bharat
Biotech to develop the vaccine locally to boost India's vaccination drive. The two
PSUs plan to start production of vaccines by September 2022.
 In May 2022, Eli Lilly & Company issued non-exclusive voluntary licenses to
pharmaceutical companies—Cipla Ltd., Lupin Ltd., Natco Pharma & Sun
Pharmaceutical Industries Ltd.—to produce and distribute Baricitinib, a drug for
treating COVID-19.
 In April 2022, the CSIR-CMERI, Durgapur, indigenously developed the technology
of Oxygen Enrichment Unit (OEU). The unit can deliver medical air in the range of
~15 litres per minute, with oxygen purity of >90%. It transferred the technology to
MSMEs—Conquerent Control Systems Pvt. Ltd., A B Elasto Products Pvt. Ltd. and
Automation Engineers, Mech Air Industries and Auto Malleable.
 In April 2022, National Pharmaceutical Pricing Authority (NPPA) fixed the price of
81 medicines including off-patent anti-diabetic drugs allowing due benefits of patent
expiry to the patients.
  In February 2022, Aurobindo Pharma announced plans to procure solar power from
two open access projects of NVNR Power and Infra in Hyderabad. The company will
acquire 26% share capital in both companies with an US$ 1.5 million investment. The
acquisition is expected to be completed by the end of March 2022.
 In February 2022, the Telangana government partnered with Cytiva to open a ‘Fast
Trak’ lab to strengthen the biopharma industry of the state.
 In February 2022, Glenmark Pharmaceuticals Limited launched SUTIB, a generic
version of Sunitinib oral capsules, for the treatment of kidney cancer in India.
 In February 2022, Natco Pharma launched Brivaracetam for the treatment of epilepsy
in India.
 In February 2022, the Russian Ministry of Health allowed Glenmark Pharmaceuticals
to market its novel fixed-dose combination nasal spray in Russia.
 In January 2022, the Central government announced to set up three bulk drug parks at
a cost of Rs. 14,300 crore (US$ 1,957 million) to manufacture chemical compounds
or active pharmaceutical ingredients (APIs) for medicines and reduce imports from
China.
 PharmEasy received US$ 300 million in July 2022 from its existing investors after
acquiring Thyrocare, the diagnostic firm. These funds will be utilised to continue
Thyrocare's acquisition process. After the transaction is completed, the online
pharmacy plans to float the company on the Indian Stock Exchange.
Government Initiatives
Some of the initiatives taken by the Government to promote the pharmaceutical sector in
India are as follows:
 In August 2022, Union Health Minister, Mr. Mansukh Mandaviya announced that an
additional number of pharmaceutical companies in India are expected to commence
manufacturing of anti-coronavirus vaccines by October-November 2022. This move is
expected to further boost the vaccination drive across the country.
 In June 2022, Finance Minister Ms. Nirmala Sitharaman announced an additional
outlay of Rs. 197,000 crore (US $26,578.3 million) that will be utilised over five
years for the pharmaceutical PLI scheme in 13 key sectors such as active
pharmaceutical ingredients, drug intermediaries and key starting materials.
 To achieve self-reliance and minimise import dependency in the country's essential
bulk drugs, the Department of Pharmaceuticals initiated a PLI scheme to promote
domestic manufacturing by setting up greenfield plants with minimum domestic value
 addition in four separate ‘Target Segments’ with a cumulative outlay of Rs. 6,940
crore (US$ 951.27 million) from FY21 to FY30.
 In May 2022, under Atmanirbhar Bharat 3.0, Mission COVID Suraksha was
announced by the Government of India to accelerate development and production of
indigenous COVID vaccines. To augment the capacity of indigenous production of
Covaxin under the mission, the Department of Biotechnology, Government of India,
provided financial support in the form of a grant to vaccine manufacturing facilities
for enhanced production capacities, which is expected to reach >10 crore doses per
month by September 2022.
 In April 2022, the Union Government decided to streamline and fast-track the
regulatory system for COVID-19 vaccines that have been approved for restricted use
by the US FDA, EMA, UK MHRA, PMDA Japan or those listed in the WHO
Emergency Use Listing (EUL). This decision is likely to facilitate quicker access to
foreign vaccines by India and encourage imports.
 In February 2022, the Punjab government announced to establish three pharma parks
in the state. Of these, a pharma park has been proposed at Bathinda, spread across
~1,300 acres area and project worth ~Rs. 1,800 crore (US$ 245.58 million). Another
medical park worth Rs. 180 crore (US$ 24.56 million) has been proposed at Rajpura
and the third project, a greenfield project, has been proposed at Wazirabad, Fatehgarh
Sahib.
 Under Union Budget 2022-22, the Ministry of Health and Family Welfare has been
allocated Rs. 73,932 crore (US$ 10.35 billion) and the Department of Health Research
has been allocated Rs. 2,663 crore (US$ 365.68 billion). The government allocated
Rs. 37,130 crore (US$ 5.10 billion) to the 'National Health Mission’. PM
Aatmanirbhar Swasth Bharat Yojana was allocated Rs. 64,180 crore (US$ 8.80
billion) over six years. The Ministry of AYUSH was allocated Rs. 2,970 crore (US$
407.84 million), up from Rs. 2,122 crore (US$ 291.39 million).
Road Ahead
Medicine spending in India is projected to grow 9 12% over the next five years, leading India
to become one of the top 10 countries in terms of medicine spending.
Going forward, better growth in domestic sales would also depend on the ability of
companies to align their product portfolio towards chronic therapies for diseases such as such
as cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the rise.
The Indian Government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus and is
expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural
health programmes, lifesaving drugs and preventive vaccines also augurs well for the
pharmaceutical companies.

COMPANY PROFILE

ACTI VEDA is a sister concern of Gaumukh pharmaceuticals. Gaumukh Pharmaceuticals

was setup in 1987 with aim of producing ayurvedic medicine strictly on the
principles/guidelines of Ayurveda.

The legacy of researching nature forms the foundation of Gaumukh’s operations. Gaumukh
uses the tools of modern science to create pharmaceutical-grade ayurvedic products. We have
pioneered research that has converted Ayurveda’s herbal tradition into a complete range of
proprietary formulations dedicated to healthy living & longevity. Today, these products have
found acceptance with medical fraternities & serve the health & personal care needs of
consumers in India & Abroad.

The Gaumukh Pharmaceuticals was founded in 1987 by Dr. Suresh Goel in Panipat(Hr) with a
clear vision to bring ayurveda to society in a contempory form & to unravel the mystery
behind the 5,000 year old system of medicine. This included referring to ancient ayurvedic
texts, selecting indigenous herbs & creating the formulations for new drugs & therapies.

Our mentor 'Dr. Suresh Goel' has a huge amount of industry knowledge and experience. He has
been a source of inspiration in every sphere of the business and his able guidance has enabled
us to achieve huge success in the recent years.

Product Portfolio

At ACTI VEDA, each of the formulation is time tested,pure,herbal & [Link] herbs used by
us in the various formulations are [Link] products are processed using high grade
ingredients and are engineered to perfection. Their formulations are very accurate and
effective in curing. Incidentally most of our products are free from any side-effects. Our
products have huge market demand due to their high quality and economic pricing. Our range
of products can be broadly classified as given below:

Product Category Products

Medicines Capsules Tablets
Rakat Suraksha Gaumuges Oil
Gaumuzyme Gaumulive Syp She
Tone
New Items Kafari Madhu Exical Syrup Acciron
Syrup

Our Team

We are proud of our highly skilled professionals. These professionals have huge amount of
experience in this field and have been instrumental in shaping a path of success for our
organization. These professionals are committed towards quality and work keeping company
ethics and policies in mind. We realize that success or failure of an organization rests entirely
on the shoulder of its employees. Hence we make sure that our professionals stay up-to-date
with latest innovations and technologies by organizing frequent training sessions.

Why Us
We are aware of the ever increasing competition in this field. We also realize that having a lot
of industry experience is not much of a help when every day there is an announcement of a
 new market player entering the industry. Hence what has kept us alive and ahead in
competition is a range of factors; some of these factors are listed below.
 Unique range of high quality products that are a result of 20+ years of R&D
 Herbal and Ayurvedic formulations are known for their long term relief & curing and are free from
any side effects
 Hassle free financial transactions and ordering related processes
 Ready stocks for bulk delivery
 Competitive pricing

Our Quality Assurance

We are committed towards providing quality products to our valued customers. These
products are processed from high quality ingredients procured from our reliable vendors. Our
procurement agents have a vast amount of experience in the procurement process and ensure
that these products are pure and safe to be processed. Moreover our processing techniques and
equipments leave little scope for any discrepancies.
Client Satisfaction

We are aware that client satisfaction is an important parameter in deciding any organization's
market performance. That's why we constantly takes into account clients feedback for the
improvement and development of our range of medicines. We maintain ready stocks of most
of our medicines and are capable of delivering bulk orders.

Our Infrastructure

We have a state-of-the-art processing unit located at a prime location in Sonipat, Haryana.

This unit is equipped with ultra modern machines that provide a better degree of control in
accurate and hygienic processing of medicines. These micro processor controlled machines
require little manual intervention and have little scope of error. However, we have employed a
team of quality analysts, who are involved in final testing of these medicines before these are
dispatched. The facility is backed by a spacious warehouse equipped with latest temperature &
climate control mechanisms, inventory management and safety systems.

Research and Development

Our endeavor to carry out sustained research and development has enabled us to provide our
clients with high quality medicines and pure herbal [Link] main aim of our research is
to enhance the quality standards of our medicines and herbal products and to analyse the data
related with client feedback from all over the country.
Our Therapies

We are engaged in offering treatment therapies for different ailments. We manufacture pure,
herbal, ethical and patented ayurvedic medicines, which are formulated using completely
herbal raw materials. At ACTI VEDA, each of the formulation is time tested, pure, and
herbal & safe. The herbs used by us in the various formulations are selected. Our products are
processed using high grade ingredients and are engineered to perfection. Our formulations are
very accurate and effective in curing, free from any side-effects and have huge market
demand due to their high quality and economic pricing.

Products & Services

We are involved in processing and supplying of a large range of medicines. These products
have a huge demand in the market due to their high quality features. Our products pass
stringent quality testing procedures and match international quality standards. We have
introduced some new items which are a result of extensive research and development work.
These syrups produce extraordinary results and provide instant relief in congestion, digestive
and other acute disorders. The range is processed from high quality ingredients and their
formulations have been devised carefully at our research facility. Given below is a
description of our products:
Gaumuzyme Syrup

Action
Gaumuzyme Syrup is a herbal formulation for indigestion & flatulence. It checks gasous
distension & aids digestion after heavy , irregular & rich meals. Due to its effective
formulation , it act as a carminative; appetizer;digestive & an antacid. Dosage please consult
your physician to prescribe the dosage that best suits your condition.

Gaumulive Ds

Action
gaumulive ds is a double strength herbal liver tonic which restores the functional efficiency
of the liver by protecting the hepatic parenchyma & promoting hepatocellular regeneration. It
prevents & treats the liver damaged due to excessive alcohol consumption. It improves
appetite & promotes weight gain. Its highly efficient formulation contains mandoor bhasam
(ferric oxide) along with other important herbs which increases rbc count. As a daily
supplement, gaumulive promotes appetite, the digestion & assimilation processes &
promotes weight gain.
Dosage
Please consult your physician to prescribe the dosage that best suits your condition.

Side effects
Gaumulive ds is not known to have any side effects if taken as per the prescribed dosage.

Indication
Gaumulive ds is useful in
 in the prevention & treatment of
 chronic & acute hepatitis
 liver damaged due to drugs & alcohol
 loss of appetite
 jaundice, anemia & other liver disorders
 for routine use as liver protective
 for increase in weight & as a valuable adjuvant during prolong illness.

Gaumulive Tonic

Action
Gaumulive is a herbal liver tonic which restores the functional efficiency of the liver by
protecting the hepatic parenchyma & promoting hepatocellular regeneration. It prevents &
treats the liver damaged due to excessive alcohol consumption. It improves appetite &
promotes weight gain. Its highly efficient formulation contains mandoor bhasam (ferric
oxide) along with other important herbs which increases rbc count. As a daily supplement,
gaumulive promotes appetite, the digestion & assimilation processes & promotes weight
gain.

Dosage
Please consult your physician to prescribe the dosage that best suits your condition.

Side effects
gaumulive tonic is not known to have any side effects if taken as per the prescribed dosage.
Indication
gaumulive tonic is useful in
 in the prevention & treatment of
 chronic & acute hepatitis
 liver damaged due to drugs & alcohol
 loss of appetite
 jaundice, anemia & other liver disorders
 for routine use as liver protective
 for increase in weight & as a valuable adjuvant during prolong illness.

Availability
gaumulive syp. Is available in 60ml, 100ml, 200ml & 450ml packing.

Kafari Madhu

Action

Kafari madhu is a pure herbal cough syrup & is free from alcohol & other narcotics. It is not
habit forming. It is absolutely safe & is free from any [Link] madhu is beneficial
in both productive & dry cough. With its cooling effect, Kafari madhu soothes the throat,
reduces spasms & helps in normal breathing. It thus controls the cough.

CHIDREN & BABY PRODUCT

We are leading Manufacturer for the CHIDREN & BABY PRODUCT which also includes
Dyo-DYS Syrup & Baby-Tone Syrup since 2010

Dyo-DYS Syrup

Dyo-dys Syrup is a useful herbal remedy for loose motion ,dysentries,Non specific
diarrhoea,summer diarrhoea,food poisoning ,gascolic and all types of diarrhoea and
dysentery.
 Baby-Tone Syrup

Baby Tonic enriched with Kesar and Ayurvedic Calcium is an effective digestive tonic for
new borns and infants.

Other Products
Also Deals In
 Syrups
 Ayurvedic Medicines
 Capsules
 Medicines

SPECIALITIES

Three specialized division dedicated to

 Dermatology
 Psychiatric
 Herbals

Apart from the specialty range of the followings:

 Cardiac
 Orthological
 Dental
 Diabetic

 Gynecological
 Surgical
 Ophthalmology
 Nutritional Supplement.
Corporate strategy

VISION:

“A focused mindset backed by continuous learning aimed to have completely

integrated operations for self Reliance and to be the global leader in the business.”
MISSION:

“To over come every barrier for growth to attain a level where there is no defined
limit for growth, to promote a work climate that harnesses the best of human potential,
encourage to compete with self and to explore all possible means for unmatched growth.”
Management:

“Scientific with significant organic and analytical chemistry experience

entrepreneurial. The management team also offer experience in managing complex chemistry
projects as well as Drug development programmes.”
Finance and accounts information System

Following are the external and internal customers for the department whose profile and
transaction details are maintained.
External: Suppliers, contractors, government, bank, financial institution, consultants, buyers
and auditors.
Internal: Materials department, stores, shops, employees, HRD, marketing department and
internal audit.
Safety policy: Providing a safe and healthy work place for all employees on the basis of
hazard identification, policies.

Major Action plans: To make the impossible possible. Meridian pharma services will
provide our chemistry expertise to generate new drugs, optimize the synthesis of potential
therapeutic candidates, and provide chemistry expertise to partners in biotech and pharma
fields.

Environment Policy: ACTI VEDA has worked for continuous up gradation of its systems in
the environmental interests with a view to create a green world. ACTI VEDA Ltd. follows all
the statutory rules and also educates its employees to maintain economic friendly operations.
Acti veda has installed dust recycling system. It has hence adopted Herbal Products which
emits side effect risk. Providing appropriate levels of education and training to all employees
including contractor’s employees.

STAFF:

Staffing is process of procurement of manpower required to achieve organization

goals. It also refers to selection, placement, training and development.
Training is given to both ACTI VEDA and outsourced employees after need
identification The company provides similar environment to both as to housing, incentive,
personal proactive equipment’s, canteen facility etc.
The total Man power in ACTI VEDA is large. The total number of salary based
employees working in ACTI VEDA have official staff 800 and other labours 3000, and
increase with new job opportunities. Due to the adaption of new technology in the company,
the company can find.

QUALIFICATIONS DETAILS OF STAFF.

Shared Values:

It refers to superior-subordinate goals, value shared by the members

Core value: Transparency, strive for excellence, dynamics, passion for learning.

Other value: Concern for employees, customer satisfaction, commitment to society, creating
shareholders wealth.

Culture: There is a combination of many cultures in ACTI VEDA, it gives more importance
to pollution control, concern for health and safety, being eco- friendly and plantation of trees
in all its plants. It has a target to plant 10000 trees per year.
Purpose: The main purpose is to include good and conductive working condition, discipline,
and motivation to employees and improve their morale and safety at all plants of acti veda.
Concern for people: People come first in the new business paradigm .the success of an
organization essentially depends upon utilization of this resources. ACTI VEDA has
suggestion on improvement of technology, production process or operations. The top level
accidents and quality achieved gets incentives. On Independence Day every year one
employee gets the “Best employee of ACTI VEDA” award. Our corporate values are dear to
us and they guide our approach to work and environment.
• Young thinking is crystal clear.
• Young thinking fosters leadership
• Young thinking is for winners
• Young thinking is unique.

SWOT ANALYSIS

It is often said that the pharma sector has no cyclical factor attached to it. Irrespective of
whether the economy is in a downturn or in an upturn, the general belief is that demand for
drugs is likely to grow steadily over the long-term.

Strengths:

1. The growth of middle class in the country has resulted in fast changing lifestyles in urban and
to some extent rural centers. This opens a huge market for lifestyle drugs, which has a very
low contribution in the Indian markets.

2. Indian manufacturers are one of the lowest cost producers of drugs in the world. With A
scalable labor force, Indian manufactures can produce drugs at 40% to 50% of the cost to the
rest of the world.

3. Indian pharmaceutical industry possesses excellent chemistry and process Reengineering

skills. This adds to the competitive advantage of the Indian companies The strength in
chemistry skill helps Indian companies to develop processes, which are cost effective.

Weaknesses:

1. The Indian pharma companies are marred by the price regulation. The National Pharma
Pricing Authority, which is the authority to decide the various pricing parameters, sets prices
of different drugs, which leads to lower profitability for the companies. The companies,
which are lowest cost producers, are at advantage while those who cannot produce have either
to stop production or bear losses.
2. Indian pharma sector has been marred by lack of product patent, which prevents global pharma
companies to introduce new drugs in the country and discourages innovation and drug
discovery.
3. Due to very low barriers to entry, Indian pharma industry is highly fragmented. This makes
Indian pharma market increasingly competitive. The industry witnesses price competition,
which reduces the growth of the industry in value term.

Opportunities

1. The migration into a product patent based regime is likely to transform industry fortunes in the
long term. The new product patent regime will bring with it new innovative drugs.

2. Large number of drugs going off-patent in Europe and in the US during 2005 – 2009offers a
big opportunity for the Indian companies to capture this market. Since generic drugs are
commodities by nature, Indian producers have the competitive advantage, as they are the
lowest cost producers of drugs in the world.

3. Being the lowest cost producer combined with FDA approved plants; Indian companies can
become a global outsourcing hub for pharmaceutical products.

Threats:

1. Threats from other low cost countries like China and Israel exist. However, on the quality
front, India is better placed relative to China.

2. The short-term threat for the pharma industry is the implementation of VAT. Though this is
likely to have a negative impact in the short-term, the implications over the long-term are
positive for the industry.
 INTRODUCTION TO TOPIC INVENTORY

Meaning:

The dictionary meaning of the word inventory is stock of goods. In financial parlance
inventory is defined as the some of the raw materials, fuel, lubricants, spares point of time.
The operations defined would be the amount of all the above to be stocked for the smooth
running of plant. For a marketing manager the inventory is finished goods required for
smooth distribution through different channels.

Definition of inventory:

Several authors have defined the term inventory. The most popular of them are, “the term
inventory includes raw-materials, work-in-progress, finished packaging spares and other
stocked in order to meet an unexpected demand or distribution in the further”

Benefits of holding Inventory:

• It enables the firm to undertake continuous production and reduce the setup costs associated
with the state of production.
• It enables the firm to avoid losses arising on account of loosing the customers for non-supply
of goods in time.
• It enables the firm to reduce variable costs associated with planning small orders frequently.
• It enables the firm to drive the advantage of bulk buying such as competitive price, higher
rates of discount, benefit of lower prices against anticipated or announced price-rise
avoidance of unexpected shortage, etc.
• It enables the firm to avoid scarcity of goods meant for either production or sale.

• Adequate stock of finished goods received either from purchases or from production serves to
bridge the gap between purchases or production and actual sale.
It also serves as a competitive marketing tool to meet customer demand as it can supply
goods to its customers immediately. If it is not able to do so, its customers are likely to go its
rivals. Inventory therefore ensures continued patronage of customers.
Inventory in general means “stock of goods”. It covers the stock of raw materials;
components and spare part work in progress or semi-finished goods and finished goods.
Inventory constitutes the most significant part of current asset of a large majority of the loss
in India.
On the average, inventories are approximately 60% of the current asset in public companies in
India. Because of the large size of inventories maintained by firms, a considerable amount of
fund is required to be committed in them.
Inventory can be reviewed as idle resources of any kind having an economic value. They are
those goods, which are procured, stored and used for the day to day functioning of an
organization.

TYPE OF INVENTORY
Inventory can be classified according to their different use and point of entry in the
operations as raw material, consumables, bought out components, work in progress, finished
goods, packing materials and spares.
Raw material inventory:

These are the major inventory form the bulk, which gets converted into output; any
break in supply will keep the production Line idle. The function of this is to act as a buffer
between procurement and manufacturing such as internal lead-time for purchase of suppliers
lead time, vendor’s relation availability of material, etc.

Work in progress:

The inventory is considered as buffer with in the manufacturing sub system, which
consists of group of machine or assembly line that is it decouples the successive
manufacturing operations, the rate of production at each work center is different. So, to
maintain continuous flow of material this inventory is maintained. The size of inventory is
dependent on the production cycle time, percentage of machine utilization, make or buy
policy of company, etc.
Finished goods inventory:

This stock completed products ready for shipment. This inventory acts as buffer
between production and manufacturing departments. The purpose of this inventory is to
assure a free flowing supply to the customer. Marketing department controls this inventory.
The size of the inventory depends on the ability of the marketing departments to push the
products, delivery in schedule and the self-life and ware housing capacity.
Material for maintenance and repairs:
 These are the stock of materials meant for consumption for maintenance and repairs
of the plant and do not form part of production, e.g. Lubricating oil, soap and spare parts.
Consumption pattern will differ form that of raw materials.
The levels of the above four kinds of inventories differ depending upon the nature of
the business. For example a manufacturing firm will have all the four kinds of inventories.
But a retailer or wholesaler will have a high level of inventories of finished goods but they
will have no inventories of raw materials, spares, maintenance supplies and stores and goods
in progress. Further depending upon the nature of the business inventories may be durable or
non-durable, valuation or inexpensive, perishable or non-perishable etc.
Inventory control has been attracting the attention of managers in India for a long
time. But with the credit squeeze measures announced by the government of India and the
consideration of the recommendation of the committee for inventories top management is
deeply a concern with developing suitable norms for inventory control. In this context
research has shown the engineering oriented public sector undertaking carry more inventory
than the other categories.

FACTORS INFLUENCING INVENTORY:

There are both internal and external factors, which influence decision making on inventory in
an organization.
INTERNAL FACTORS:

Relevant cost:

Inventory management faces the problem in balancing various costs involved so as to

minimize the total cost.
Lead time:

There is a direct relationship between lead time and inventory. During lead time there will
have to be required inventory held in stock. If consumption rate is abnormal during lead-time
there should be sufficient stock to cope with the situation.
Scrap:

All manufacturing processes will generate scrap. Hence, the stock of scrap also plays its role
in the inventory management.
EXTERNAL FACTORS:

Market conditions:

Market condition can be viewed in two angles. First, there is a dynamic nature of prices and
availability. Secondly, there is a time lag between the placing an order and obtaining
material.
Government regulations:

Various rules, regulations and policies of government will affect the holding of inventory in
companies.
Credit availability:

Inventory represents the blocked up working capital. if the organization is suffering

shortage of funds, only credit terms of suppliers determine the inventory position.

NEED TO HOLD INVENTORY:

The question of managing inventory arises only when the company holds inventory.
Maintaining inventory involves blocking up the company’s funds and incurrence of storage
and handling cost. If it is expensive there are three general motives for holding inventory.
Transaction motive:

Emphasizes the need to maintain inventory to facilitate smooth production and sales
operation.
Precautionary motive:

Necessitates holding inventory to guard against the risk of unpredictable changes in demand
and supply forces and factors.

Speculative motive:

Influences the decision to increase or reduce inventory levels to take advantage of price
fluctuation.
 INVENTORY MANAGEMENT CONCEPT:

Inventory management is very important area of production management and plays a

vital role in the economic operations of concern. It has been defined in a variety of ways and
most of the definitions stress the importance of control element in achieving cost
effectiveness, irrespective of range of particular discipline which the functional fields in
meeting the needs of individual situation.
According to Prichard and Eagle, Inventory management can be defined as “the sum total
of those activities necessary for the acquisition, storage, disposal or use of inventory.
Inventory management in a fact is an integral part of production planning and control, which
according to Charles A Keopke may be defined as, “the coordination of a series of function
according to a plan which will economically utilize plant facilities and regulate the orderly
movement of goods through their entire manufacturing cycle, from the procurement of all
materials to the shipping of finished goods at a pre- determined rate”. The scope of inventory
management is not restricted to technique of regulating the movement of inventory and it
rather converts the entire range of functions, which affects the flow, conservation, quality and
cost of delivery.
It can be inferred from the above definitions of inventory management that there are two
guiding principles in inventory management.
• Adequate inventory has to be maintained to avoid stock out and causing consequent
production held up and customer dissatisfaction.
• Excessive investment in inventory items must be avoided as it increases the carrying cost and
results in loss of profit.
In view of these principles it may be inferred that for a manufacturing concern, inventory
management is the significant aspect of production and financial planning and control.
IMPORTANT BENEFITS OF OPTIMUM
INVENTORYMANAGEMENT:
• It provides check against the loss of material through carelessness or pilferage.

• Inventory management ensures adequate supply of materials, stores, spares, etc., minimizes
the stock out and shortage and avoids costly interruptions in operation.
• It reduces the length of manufacturing cycle to the minimum.

• It facilitates purchasing at economic ordering quantities (EOQ) through measurement of

 requirements on the basis of recorded experience.
• It creates buffers between input and output.

• It utilizes the benefits of price fluctuations.

• It ensures against scarcity of materials in the market.

• It ensures against the delay in deliveries.

MAJOR DANGERS OF OVER INVESTMENT IN INVENTORY:

• Blocking of firm funds in inventory.

• Excessive carrying costs.

• Risk of liquidity.

• The excessive level of inventories the finds of the firm, which cannot be used for any other
purpose. The carrying cost such as the cost of storage, handling insurance, recording and
inspection also increases in proportion to the volume of inventory excessive inventories
carried for a long period brings down the liquidity of the firm.
PROBLEM OF INADEQUATE INVENTORIES:

• Inadequate raw-materials and work in progress will result in stopping of production.

• If the finished goods inventories are sufficient to meet the demands of the customers may
shift to order competitors, which will amount to a permanent loss to the firm. An effective
inventory management should avoid both extreme situation namely over investment and
under investment in inventories.
NORMS OF INVENTORY:

Either the top management or the material management department could set the limit
for inventory. The top management usually sets monetary limits for investment then has to
allocate this investment to the various items and ensure the smooth operations of the
company. It would be worthwhile if the inventory norms are set by the management by
objective ‘concept’. This concept expects the top management to set the inventory norms in
consultation with the material department. The norms thus evoked should be specific and
quantified the achievement of the target set is the responsibility of the material department.
 CHAPTER-2
LITERATURE REVIEW

In order to comprehensively answer our research questions we have reviewed literature on

recruitment & selection. To appreciate the specific nature of recruitment and selection, it was
essential that we first explored general recruitment and selection literature.

Stewart and Knowles e.t. al. (2008) studied the topic and find that the research conducted
on recruitment and selection and greater weight was placed on current trends in recruitment
and selection rather than a detailed account of the history of recruitment and selection.

Marchington and Wilkinson (2008) studied the topic and find that the fundamental
importance of recruitment and selection is presented in the research explaining it as a way of
managing an organisation’s human resources

Barber (1998) studied the topic and find that in conduct of research recruitment is defined as
‘[the] practices and activities carried on by the organisation with the primary purpose of
identifying and attracting potential employees.

Boudreau and Rynes (1985) studied the topic and find that the findings of a study are that
selection involves practices that allow organisations to predict future performance of
candidates and assist in the final decision-making process.

Breaugh and Starke (2000) studied the topic and find that emerging noticeable trends have been
found in recruitment and selection. Earlier the objective of recruitment was to attract a high quantity
of applicants and job fit was the sole consideration.

Robert (2005) studied the topic and concluded that there has been an increase in the diversity of
recruitment objectives he identified numerous objectives including; ‘future work, mobility in and out
of the organization, interaction with a wide range of potential colleagues, fit with the current ‘social’
environment of customers, suppliers, culture and the ‘physical’ environment, particularly technology.
Cath Hancock (2002) studied the topic and concluded that two articles addressing aspects of
the recruitment and selection process are supplied. The article concentrates on the pre-
interviews process but also looks briefly at post-interview issues.

Barber (1998) studied the topic and find that three stages of the recruitment process have
been identified;’ generating applicants, maintaining applicant status and influencing job
choice decisions.

Breaugh (2008) studied the topic and find that a more comprehensive model incorporating
earlier recruitment stages such as setting objectives to guarantee overall effectiveness of the
process and maintain attraction of the candidates, ongoing communication should be
employed have been provided in the research conducted.

Breaugh and Billings (2000) studied the topic and find to attract potential candidates, employers
have to carefully construct the message they will communicate

Breaugh and Starke (2000) studied the topic and find that the message has to be credible, consistent
and realistic in order to meet applicants’ expectations and to ensure psychological contract is not
breached.

Torrington e.t. al.. (2008) studied the topic and stated that the ‘key is to build on any aspect,
that is distinct from that offered by [competing organisations] in the same broad applicant
pool.’

Richard Lee (2018) studied the topic and stated that in conduct of a research many factors are
considered which influence staff recruitment in the current economic climate and debates what are
seen as the four main dilemmas: flexibility versus security; control versus empowerment;
“competence” versus learning and comfort versus challenge.

Jean M. Barclay (2019) studied the topic and find that a larger study has been performed into
organizations’ use of structured interviewing techniques. Reasons for continued popularity of
interviewing in selection, despite its shortcomings were discussed and also consider the use of two
structured interviewing techniques to improve selection: behavioral and situational questioning. The
findings of a large scale survey of UK organizations’ use of these techniques were presented. The use
of structured interviewing is rapidly increasing and is used by all sizes of organization. Behavioral
interviewing is being used more than situational interviewing, and many respondents use both
techniques. Structured techniques are most commonly used for management posts. Discusses links
with competency based HRM and roles of line managers and HR specialists in selection. Areas for
further research are outlined.

Cheri Ostroff (2021) studied the topic and find that the multi-level perspective on selection offered
by Ployhart and Schneider; it provides an important framework for enhancing the utility for selection
procedures. By examining relationship between predictors and criteria across multiple levels of
analysis, new insights into how the selection process contributes to group and organizational
performance and effectiveness can be gleaned.
 CHAPTER -3
RESEARCH METHODOLGY

OBJECTIVE OF THE STUDY:

The main objectives of the study are:-

• To study the historical background of inventory Management of ACTI VEDA LTD.

• To evaluate the existing inventory management with reference to norms of the company.

• To analyze the inventory turnover period and turnover ratios of the company.

• To study the scope for improving material management.

• To analyze the functions, procedures in inventory management.

SCOPE OF THE STUDY:

The scope of the study spread over five years of period 2013-2014 and encompasses
importance of inventories efficiency of conversion of inventories into cost, growth rate of
inventories versus that of assets, analysis of general material management of the company
and overall inventories of Acti veda Ltd.

LIMITATION OF THE STUDY:

• The time factor is the main constraint, as per time is allotted to complete project was not
enough to study in depth.
• The information, which was required, was not revealed by the organization.

• Interaction with all related officials was not possible.

RESEARCH DESIGN TITLE OF THE STUDY

The title of study is “INVENTORY MANAGEMENT” with reference to the ACTI

VEDA Ltd. Panipat (HRY).

STATEMENT OF PROBLEM:

Inventories constitute most significant part of assets of large majority of the company in
 India. Inventory a double edged sword is usually an asset of an organization, if not used
properly it will become liability. It is therefore absolutely very important to manage
inventories efficiently and effectively in order to overcome unnecessary investment.

DATA COLLECTION METHOD:

To collect data for project, “inventory Management at ACTI VEDA LTD”, used both
primary and secondary data collection methods.
DATA COLLECTION METHOD

Primary Secondary

PRIMARY DATA:

The data which are collected from the discussion with executives and stores officers. Primary
data are that, which are collected freshly and for first and thus happens to be original in
character.

The methods of primary data collection are:

• Observation method.
• Personal Interview.

SECONDARY DATA:

The data which have been collected form someone else and which have already been
passed through statistical process.
The secondary data sources are:

• Record of the company.

• Annual reports.

• News-papers and text books.

• Websites: [Link]
 FIELD WORK:

This is undertaken individually to collect various information regarding the study by visiting
following section.
• Stores department :

Information regarding stocking of material receipts and issues to work shop, inventory
control in acti veda Ltd. Panipat(HRY).
• Accounts department:

Remaining all information was obtained form accounts department through personal
interviews with section officials.

TOOLS FOR DATA COLLECTION:

• Database.

• Plan of analysis.

• Graphical presentation.
 CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
MEANING OF INVENTORY MANAGEMENT:

Inventory management covers a much wider field. The Inventory management is

concerned with the entire range of functions, which effaced the flow, conversion and
utilization, the quality and the costs of materials. It is that aspect, which is concerned with the
activities, involved in the acquisition and storage of all material directly and indirectly
employed in the production of the finished products. These activities includes material
planning, programming functions such as customer service requirements etc. viewed in that
perspective inventory management is broad in scope and effects a great number of activities
in organization.
Because of these numbers inter-relationship inventory management stresses the need
for integrated information flow and decision making as it relates to inventory policies and
overall systems.
Inventory control on the other hand is defined in a narrow sense than inventory
management and pertains primarily to the administration of established policies, systems and
procedures. For example, the actual steps taken to maintain the stock levels or stock records
refer to inventory control.

Type of Product and its Production

TABLETS AND CAPSULE: This section of manufacturing tablet and capsules is highly
cleaned area; entry to this section is crossed by double door entry which passes through the
primary and secondary changing room.
Layout of Tablets and Capsule

1 Primary change room 2 Pass box 1st 2 Corridor 7 Pass box 2nd

3 Secondary change room 4 Warehouse gate 4 Wet granulation room

5 Q.C Room 6 Dry granulation room

7 Production Office
 Then there are different rooms for the different manufacturing procedures like for wet
granulation,
washing room, coating room, tablet punching machine capsule filling etc.

Different Areas For Tablets And Capsules Manufacturing

 Linen room: This room is used for storing the primary and secondary uniform along with
shoe covers for staff and visitors. These all are necessarily for entrance in production
department.
 Primary change room: In this room the visitors and workers were clothes over their clothes
also were shoe covers.
 Secondary change room: In this area second dress is put on before entering the
manufacturing area.

 Wet granulation area : In this area the powders are mixed and converted into granules
sieved made dry and then sent for final compression.

 Q.C Room: In this room the tablets are tested while manufacturing i.e. weight variation,
tablet
hardness moisture content, disintegration etc.

Different Machine For Manufacturing Of Capsules And Tablets

The rotary tablet punching machine: the rotary press has more than one set of tooling. The
dies
and the corresponding pairs of punches are arranged around a circular rotating turret.

Tablet Punching Machines

Each individual die with the lower punch in its lowest position, passes under the powder bed
which is contained with in a feed frame, which in turn in fed from a hopper. The quantity of
solid in the die is adjusted by weight controlling cam. Then the powder is actively
compressed from both top and bottom faces.

Capsule Filling Machine

For the filling of the capsules automatic capsule filling machine is used in which the capsules
are put in the capsule hopper and the powders or the granules which are to befilled in
different hopper the powders are mixed and filled in the capsule. Then the capsules are sent
for packing.

LIQUID MANUFACTURING SECTION

Liquid orals production facility is established as a separate facility, separate from

tabs/caps and ointments. The main products in this facility are ZEDEX syrup, BRO-
ZEDEX syrup, PRACTINE syrup, PRACTINE EN.
 Layout of Liquid Section

FACILITY DESCRIPTION:

The plant is designed to be operated by one trained operators and one Helper, saving on

precious man-power costs.

Designed for internal vacuum to facilitate transfer of sugar directly from stores to sugar syrup
vessel.
Sugar syrup is transferred to manufacturing vessel through online. Pre filter by vacuum.
Entry of all propeller agitators are from bottom through a specially designed cartridge
mechanical seal with TC/TC seal face.
The advantage of the bottom propeller agitator over the conventional agitator is that there are no
vibrations of shaft, no couplings in the drive assembly, leading tolower maintenance cost .

Pipes, pipe fittings and valves are of SS 316, seamless, internally

Electro polished with DIN standard unions and silicon Gaskets.

MANUFACTURING FACILITY CONSISTS OF:

 Online Sugar Syrup Pre filter

 Manufacturing Vessel

 Storage Vessel

 Vacuum System for transfer of Sugar Syrup

 Filter press/ Inline Homogenizer

 Product piping

 Control panels

PACKING OF LIQUID PREPARATION :

 After filling of bottles are transferred in packing section.

 In packing section the bottles and their caps are checked and are labeled.

 The labeled bottles are packed in the folded cartoon and cartoons are also labeled.

 After packing these cartoons are transferred in finished goods storage.

OINTMENT SECTION

The ointment facility is established as a separate facility in the ACTI VEDA Plant. It has its
own ware house facility. It has only one production line. The major products are Nadoxin
cream, Nadoxin Gel, Sper sunscreen, Eclospan cream, Triclin DS cream &[Link]

MANUFACTURING PLANT CONSISTS OF THE FOLLOWING EQUIPMENT

 1. Wax heating Vessel.
2. Water Melting Vessel. [Link] vessel. [Link] vessel.
5. Interconnecting pipeline.
6. Pumps (Bump Pump & metering pumps) [Link] automatic control
panel.
8. Working Platform.

MANUFACTURING PROCEDURE:

All vessels are manufactured from S.S. 316 grade stainless steel sheets and are cGMP
compliant construction. The vessels are Jacketed, insulated, added and with suitable agitator
assembly in each vessel. Wax is melted in Wax melting vessel; Water is heated in water
heating vessel. Both wax and water are transferred into the manufacturing vessel
automatically through vacuum. In manufacturing vessel both wax and water are homogenized
to make a uniform emulsion and cooled by passing chilled water into the jacket of
manufacturing vessel. After the emulsion is formed active ingredients / coloursetc are added
and are thoroughly mixed & homogenized. Later necessary perfume is added in case of
cosmetics or wherever necessary.
Ointment / Cream are ready. The same is transferred by bump pump into the storage vessel.
& from the storage vessel it is automatically transferred into the filling machine by means of
metering pump. Flow rate of Metering pump can be set as per your tube filling machines
speed and capacity.

Salient Features:

Complete Untouched Process, consisting of wax phase, water phase,

manufacturing vessel & storage vessel.
 Hydraulic power pack for lid lifting.
 Homogeniser mounted from bottom.
 PLC based control panel.
 Load cell for online weighing.
 Lower maintenance cost as no moving components used.
 Special contra-rotary type anchor with blades.
 Interconnected pipeline up to the storage tank
 Available from 100 kgs to 1000 kgs.
 Tube Filling, Sealing & Crimping Machine:

This machine is available in single head as well as Double head Model. It is suitable for
Filling,Sealing and Crimping Metal, Lami Tube. It is provided with “no tube no fills” device
is fully automatic.

PACKING OF TUBES:

 After filling of tubes are transferred in packing section.

 In packing section the tubes, leaflet is inserted in coded corton automatically.

 After packing these cartons are packed in final shipper.

 QA checks the finished product release from Quality Control.

 Finished Goods are transferred to warehouse after release from QA.

BENEFITS OF INVENTORY MANAGEMENT:

Proper management and control of inventories will result in the following benefits to
an organization.
• Inventory control ensures an adequate supply of material stores etc. minimizes stock-out and
shortages and avoids costly interruptions in operations.
• It keeps down investment in inventories, inventory carrying costs and obsolescence losses to
the minimum.
• It facilitates economical purchasing through the measurement of requirement on the basis of
recorded experience.
• It eliminates duplication in ordering or in replenishing stocks by centralizing the sources from
which purchases requisitions emanate.
• It permits a better utilization of avoidable stocks by facilitating inter-department transfers with
in a company.
• It provides a check against the loss of material through carelessness or pilferage.

• It facilitates cost allocating activities by producing a means for allocating material cost to
products departments or other operating accounts.
• It enables management to make cost and consumption comparison between operations and
periods.
 TECHNIQUES OF INVENTORY CONTROL:

• ABC Classification

• HML Classification

• VED Classification

• SDE Classification

• FSN Classification

• Level setting

• Just in time technique

• Cost price method

• Specific price

• First in first out (FIFO)

• Last in first out (LIFO)

• Highest in, first out (HIFO)

• Base stock price.

• Average price methods:

• Simple Average

• Weighted Average

• Periodic Simple Average

• Periodic Weighted Average

• Moving Simple Average

Current Price Methods:

• Replacement Price
• Next in, first out (NIFO)

ABC-ALWAYS BETTER CONTROL CLASSIFICATION:

One of the widely used techniques of control of inventories is ABC analysis. The
objective of ABC control is to vary the expenses associated with maintaining appropriate
control according to the potential savings associated with a proper level of such control.
ABC analysis consists of the classification of the material into categories A, B and C
on the basis of their value. Items of high value and comparative less in number are included
in ‘A’ category. Generally, they account for above 70% of the total value and about 15% of
the total number. Items of low value be large in number are included in ‘C’ category.
Generally, they account for above 70% of the total value and about 60% of the total number.
Items of moderate value and moderate in number are included in ‘B’ category. They account
about 20% of the total value and 25% of the total number.
Items of ‘A’ category are subject to strict with regard to purchase storage and use.
Items of ‘B’ category are not subject to much control. The objective of this analysis is to reduce
the investment of inventory the cost of inventory and also loss of inventory. ABC “ALWAYS
BETTER CONTROL” Classification is as follows.
HML-HIGH MEDIUM LOW CLASSIFICATION:

The high, medium and low classification follows the same procedure as adopted in ABC
classification only difference in this HML classification unit value is the certify and not the
consumption value and it is up to the management to fix limits for the three categories.
The HML analysis is useful for keeping control over consumption at departments levels, for
descending frequency of physical verification and for controlling purchases.

VED-VITAL ESSENTIAL DESIRABLE CLASSIFICATION:

While in ABC classification inventories are classified on the basis of their

consumption value and in HML analysis and value is the basis, criticality of inventories is the
basis for vital, essential and desirable categorization.
The ‘V’ and ‘D’ analysis is done to determine the artificially of an item and its effect
on production and other services. It is specially used for classification of spare part. If a part
is vital it is given ‘V’ classification, if it is essential than it is given ‘E’ classification and if it
is not so essential the part is given ‘D’ classification. For ‘V’ items a large stock of inventory
 is generally maintained, while for ‘D’ items minimum stock is enough.

SDE-SCARES, DIFFICULT AND EASY TO OBTAIN CLASSIFICATION:

The SDE analysis is based upon the availability of items and is very useful in the
context of scarcity of supply. In this analysis ‘S’ refers to Scares items, generally imported
and those which are in short supply ‘D’ refers to difficult items which are available
indigenously but are difficult items to produce. Items which have to come from distance
places or for reliable suppliers are difficult to come by fall into ‘D’ category. ‘E’ refers to
items which are easy to acquire and which are available in the local markets.
The SDE classification based on problem faced in procurement is vital to lead time
analysis and is deciding on purchasing strategies.
FSN- FAST MOVING, SLOW MOVING AND NON-MOVING:

FSN classification is based on the pattern of issue from stores and useful in
controlling obsolescence. To carry out FSN analysis the date of receipt or the last date of
issue whichever is later is taken to determine the number of months, which have moved since
the last transaction. The items are usually grouped in period of 12 months.
FSN analysis is helpful in identifying cutoff items, which need to be moved regularly
and surplus items, which have to be examined further. Non material moving items may be
examined further and their disposal can be considered.

LEVEL SETTING:

Setting up of inventory levels, such as maximum level, minimum level, re-order level,
danger level and average level. The above level are calculated when a storekeeper should place
an indent for fresh stock and also to avoid average stocking of any material. At the same time
to ensure follow-up sufficient materials to production process. The main purpose of fixing the
levels is to control the investment on inventories.
• Minimum level: This is the limit below, which the stock should not be allowed to fall. It is
fixed on the basis of average consumption and average lead time. The main purpose of fixing
this level is to ensure adequate check for continuous production and sales.
Minimum level = Re-order level-[normal consumption*normal re-order period]

• Maximum Level: This is the limit or level beyond which the stock of an item should not
exceed. This level is fixed for avoiding over stocking of materials and its associated risks.
 Maximum level= EOQ (re-order quantity) (Minimum consumption*minimum re-order

period)

• Re-order level: it is the point fixed between maximum and minimum level at which the
storekeeper has to initiate action to obtain fresh supplies of materials.
This point well usually be slightly higher than the minimum stock to cover such
emergencies is abnormal usage or unexpected delay in supply. Re-ordering levels depend on
lead time, rate of consumption and economic order quantity.
Re-order level= maximum consumption*maximum re-order period.

• Danger level: it is the level below the minimum level when the stock reaches this danger
level urgent action for purchase is necessary. As normal lead-time is not available it is
necessary to resort to unorthodox purchase procedure resulting in higher purchase cost.
Danger level= minimum consumption*emergency re-order period.

Average stock level: = Maximum level+ minimum level/ 2

ECONOMIC ORDER QUANTITY (EOQ):

The EOQ is the optimum or the most favorable quantity which should be purchased
each time the purchases are to be made. The EOQ is one where the cost of carrying inventory
is equal or almost equal to the cost of not carrying the inventory. Also EOQ level, the total of
these costs are minimum.
The cost of not carrying adequate inventory arises because of frequent placing of
order at short intervals. This includes cost, such as extra purchasing, handling and
transportation cost.
The cost of carrying the inventory, an ordering cost change in the reverse order. The
cost of placing order decrease as the size of order increase since with the bigger size of order,
the number of order will be lower. However, simultaneously the cost of carrying the
inventory will go up because purchases have been in large quantities. It may be possible to
have a point which provides the lowest total and this point is known as EOQ.
EOQ= (2AO/C) 1/2

Where A= annual consumption to units O= ordering cost per order

C= carrying cost per unit per annum

JUST-IN-TIME (JIT):

The concept JIT means that virtually no inventories are held at any stage of
production and that exact number of units is brought to each successive stages of production
at the right time. It is called “zero inventories”. The just in time inventory system while
conceptually very difficult to implement because it involves a significant change in total
production and management system.
INVENTORY VALUATION
Several methods are used for valuation of inventories, those are:

STORE LEDGER:

Store ledger contains the same columns, which a bin card has, but in addition the
amount of columns for pricing receipts and issues of materials are provided. Stores ledger
shows, at any time. The value on band, the ledger is maintained in stores as well as cost office
to provide a crosscheck on the stores personnel. Entries in the store ledger are supported by
goods received note, material requisition etc.
FIRST IN FIRST OUT (FIFO) METHOD:

Under this method, materials are issued at the prices of materials in the order in which
they are received. Thus the prices of materials which come first, will go out first for
production. As a result, closing inventory reflects the latest value. When the prices of
material s show declining trend the closing stock is valued at lowest cost and vice versa. But
seldom has this happened, in the real situation.
LAST IN FIRST OUT (LIFO) METHOD:

Under this method, materials that are issued are priced at the rate of latest arrival of
materials. In other words, the materials are issued at the rates in the reverse order of the
materials received. Accordingly, whenever the issue is made it is priced at the rate of the
latest consignment received. As, a result the materials that go into production are coasted at
the latest cost of materials and closing stock at the end of a period is represented by the
earliest purchase price. This method is suitable when the prices are rising because the coast of
material consumed represents the latest increased price and the closing stock represents
earlier low price. This is his line with the conservative policy. This is the method adopted for
cost accounting purpose to record in stores ledger. But in stores, materials are issued in
accordance with their plan and schedule (preferably, in the order of receipts) and this may not
be in true with what is recorded in the stores ledger account maintained in cost accounting.
SIMPLE AVERAGE METHOD:

Under this method, the materials are issued from the stores to production centers at the
simple average price of materials available in the stores. Every time when the issue is made,
the average rate of all the rates of the materials available for dispatch is calculated. A rate has
to be considered for averaging purpose, even if a small quantity at a rate is existing in the
stores in the stores. In other words, price of material which is exhausted, i.e., already issued,
completely, is not considered while calculating average price. However, materials are
exhausted in the first in first out order. This method is suitable when uniform quantities are
purchased and the prices are heavily fluctuating. But when the quantities are different,
discrepancy arises in the value of stock. This difference is adjusted to costing P&L A/c at the
end of each period. The main advantage is that it is difficult to keep track of materials
exhausted.

WEIGHTED AVERAGE PRICE METHOD:

Under this method, materials are issued at the weighted average price which is
calculated by considering both the quantity and price. It is calculated as below:
W1P1+W2P2+W3P3+………..

Weighted average price =

W1+W2+W3……….

Where, W1, W2, W3 are the various quantities in stores, P1, P2, P3 are the respective rates of
these quantities.

This is a good measure because both quantity and price are considered and therefore,
discrepancy due to price will not arise. In other words, entire material cost is recovered by
production units. This method is useful when the prices and quantities fluctuate heavily.

DOCUMENTS FOR FINISHED GOODS:

STORES REQUISITION NOTE:

It is also called material requisition note. When production or department requires materials
from the stores it raises a requisition, which is an order on the stores for the material required
for execution of the work order. This not is signed by the department in charge of the
concerned departments. Any person who requires materials from stores must submit stores
requisition note. The store keeper should only issue material from stores against such a
properly authorized requisition and this will be entered in the bin card or stores ledger.
GOODS RECEIPT NOTE:

When the receipt department receives the material, the goods received note is given
by the concerned department, which signifies the receipt of the goods by the department.

DATA ANALYSIS:
MEANING OF RATIOS:

Ratio analysis is a widely used tool of financial analysis. It is defined as the

systematic use of ratio to interpret the financial statements, so that the strength and weakness
of a firm as well as its historical performance and current financial conditions can be defined.
Ratio analysis or ratio technique is one of the tools available to a financial analyst for
the analysis of financial statement and ratio is statistical yardstick that provides a measure of
relationship between two accounting figures. Ratio analysis is the technique of calculation of
a number of accounting ratios from the data or figures found in the financial statements. The
comparison of these accounting ratios of the previous year or of other concerned of the same
industry provides indispensable help to the financial manager.

TURN OVER RATIOS:

Turn over ratios, also referred to as activity ratios of assets management ratios.
Measure how efficiently the assets are employed by a firm. These ratios are based on the
relationship between the level of activity, represented by sales or cost of goods sold and levels
of various assets. The important turnover ratios are inventory turnover ratio, average
collection period, receivables turnover ratio, fixed turnover ratio and total assets turnover
ratio.
INVENTORY TURNOVER RATIO:

This ratio indicates the number of times inventory is replaced during the year. It
measures the relationship between the cost of goods sold and the inventory level. The ratio can
be compared in two ways.
Sales or Cost of goods sold

Inventory turnover ratio = Closing Inventory Average Inventory

Particulars/years 2017-18 2018-19 2019-20 2020-21 2022-22

COGS 15.69 27.75 38.53 52.48 61.78

Average Inventory 3.25 3.80 5.27 5.82 7.16
Inventory 4.82 7.30 7.31 9.01 8.62
turnover Ratio

Interpretation: From the above table we can say the firm stock turnover ratio is
average and the stock is turning into sales at average rate. In the year 2017-18
decrease in stock turnover ratio is due to more production.
INVENTORY HOLDING PERIOD: 365/ITR

YEAR 2017-18 2018-19 2019-20 2020-21 2022-22

Stock turnover 4.82 7.30 7.31 9.01 8.62

Inventory 75 50 49 40 42
(days)holding
period

Interpretation: The inventory holding period is varying from year to year. But
in 2022-22 it decreased and stock is converting into sales quickly.
INVENTORY TO CURRENT ASSETS

ICA =Average Inventory

Current Assets

Particulars/years 2017-18 2018-19 2019-20 2020-21 2022-22

Average Inventory 3.25 3.80 5.27 5.82 7.16

Current Assets 7.11 7.42 9.49 10.96 14.87
Ratio 0.45 0.51 0.55 0.53 0.48

INTERPRETATION

The above graph shows that an inventory to current assets in ACTI VEDA. The inventory to
current assets ratio should be less than the company’s liquidity will be good. The inventory
will be considered as a company’s current assets; in ACTI VEDA ltd the inventory was good
in the year of 2017-18. But it has been decreased in the year 2017-18.
INVENTORY TO WORKING CAPITAL

Working Capital= Current assets - Current liabilities.

Particulars/years 2017-18 2018-19 2019-20 2020-21 2022-22

Average Inventory 3.25 3.80 5.27 5.82 7.16

Working Capital 1.39 1.51 2.07 1.75 1.90
Ratio 2.33 2.51 2.54 3.32 3.76

INTERPRETATION:

The above graph shows that the inventory to working capital in ACTI VEDA
ltd, in ACTI VEDA the ratio is utilizing the inventory with average working
capital.
DEBTOR TURNOVER RATIO:

Debtor Turnover ratio = Net sales /Average Debtors

This ratio indicates the speed with which the amount is collected from debtors.
Higher the ratio is better. This ratio indicates the relation between credit sales
and average debtors during the year.
Rs. In crores
Particulars/year 2017-18 2018-19 2019-20 2020-21 2022-22
Net sales 21.64 36.93 50.10 65.00 76.98
Average debtors 0.78 1.52 1.16 1.46 1.89

Debtor 27 24 43 44 40
turnover ratio

Interpretation: From the above table it is clear during the 2017-18 and 2018-
19 it is continuously decreasing. But it is still better into 2019-20. The credit
sales policy of the firm is strictly and good.
 INVENTORY VALUATION AT ACTI VEDA LTD.

Under ACTI VEDA ltd the inventories are valued at lower of cost and net realizable all costs
of purchase, cost of convection and other cost incurred in bringing the inventories and the cost
is determined by “ weighted average cost method” in ACTI VEDA Ltd.
Under this method, materials are issued at the weighted average price which is calculated by
considering both the quality and price.
This is a good measure because both quantity and price are considered and therefore,
discrepancy due to price will not arise. In other words, entire material cost is recovered by
production units. This method is useful when the prices and quantities fluctuate heavily.

Advantages:
• Easy to calculate and operate.

• When prices fluctuate considerably, it smooths out the fluctuations.

• Closing stock value is acceptable. This method is suitable where wide fluctuation of prices
occur, as it evens out prices over the accounting period.
 CHAPTER-5
FINDING & CONCLUSION
FINDINGS:

The study on inventory management at ACTI VEDA LTD disclosed very important facts
which are given below.
• A proper inventory management is very useful in controlling cost, as a small amount can
make large difference.
• The stock undertaking is done once in three months.

• The company is maintaining the inventory level appropriate with the demand. The company
is not blocking up its work in progress to a level extend.
• The documentation of a company is much elaborated and time consuming.

• The inventory to current assets ratio shows that good performance to the company. It does not
classify raw-materials as show, medium or fast moving, hence fails to identify and dispose
the slow or non-moving materials.
• The modern technique of material management and inventory control such as standardization,
codification, classification etc are not given much of importance.
• Company maintains FIFO method, which is easy to account for but is not accurate as other
methods such as weighted average method.
 SUGGESTIONS:

• The study reveals that the reduction of inventories is not sufficient on the part of the company
for some items. The least company can do is to ensure that the undertaking is not
overburdened with avoidable excessive stocks.
• In the year 2012-13 the stock turnover ratio has showed some improvement but in the past
years it doesn’t maintain the standard ratio, so it has to improve in the future days.
• Publish an inventory statement to guide all the employees in the company.

• As training in materials management can help all the staffs in all level in materials
organization to carry out their responsibilities with such more understanding and in greater
capacities, it is necessary to train them in discipline. This will drop cost consciousness in the
individuals.
• As inventory appears too complex to control. It can be controlled through hard work,
dedication, very close attention to the details and continuous self- criticism of previously
made decisions.
• The documentation of the company is very elaborate and it should be reflected by centralized
purchasing which would reduce the paper work involved in purchase by other department.
• Investment in the inventory, which to a greater extend on their number that can be reduced
through variety reduction. This leads to the reduction of the manufacturing cost, saving in
purchase cost and reduction in inventory investment, effective advertising and reduction in
labor cost, lower process rejection and improvement in quality.
CONCLUSION:

The demand of the herbal products is changing everyday the trend which has occurred before
a day be old for the next day. Everyday every organization has to face the changes in all the
areas of their business. The organization has to accept these uncertainties and should cope up
with that change to survive in the competitive and changing world.
The change in the market directly affects the inventories. The demand for the product may
fall today and rise tomorrow. If the organization has to cope with rising and falling demand it
has to maintain balanced relationship with demand and supply, this task is effectively done
by the inventory management by maintaining adequate stock in the organization.
Final report of inventory 2018-19

Particular 31-03-2022 31-03-2022

Raw Materials 2.42 1.79
Work-in-progress 3.21 1.21
Finished Goods 3.29 2.41
Production consumables 2.76 1.83
and stores & spares

Construction Materials 1.48 1.63

Total 13.16 8.87

According to above table the ACTI VEDA ltd company has maintained a good amount of
finished goods, by comparing last year performance of the company is better than last year.
 BIBLIOGRAPHY
REFERENCES:-

BOOKS:-

1. ASHOK .[Link]. INTRODUCTION TO PHARMACEUTICS-I 3RD

STANDARDISATION OF TABLETS ON PAGE NO.268-
274,STANDARDISATION OF CAPSULES ON PAGE NO.285-287

2. S.J CARTER .DISPENSING FOR PHARMACEUTICAL STUDENTS 12TH

EDITION( COOPER AND GUNN’S

3. EMGT303 : QUALITY MANAGEMENT IN ORGANIZATION CHAPTER-

5

WEBSITES:-

[Link]

[Link]

[Link]

[Link]

[Link]
 ANNUXURES

Balance Sheet as at 31st March, 2022 Rs. In cr.

As at As at
(I) Equity and Liabilities 31-03- 2022 31-03-2022

• Shareholder’s funds
Share Capital Reserve & Surplus 124.26 120.15
67.59 63.42 183.57
191.85
• Non-current liabilities Long-term borrowings
Deferred Tax liabilities Other Long term liabilities 66.39 63.90
Long-term provisions 10.14 07.29
76.30 65.90
02.90 02.82
155.73 139.91
• Current liabilities Short-term borrowings
Trade payables 4.16 4.23
Other current liabilities Short term provisions 1.25 0.75
4.21 2.13
3.35 2.10
TOTAL
12.97 9.21

360.50 332.69
(II) ASSETS
• Non-current Assets
Fixed assets Tangible assets Intangible Assets 108.82 107.11
Capital work-in-progress 56.89 63.04
Intangible assets under development 114.77 105.56
5.62 3.12

Non-current investments Long-term loans and advance 286.10 278.83

Other non-current assets 12.20 14.81
45.85 28.01
1.48 0.08
• Current assets Current investments Inventories
Debtors 49.53 42.90
Cash and cash Equivalents
0.75 0.95
8.92 5.41
TOTAL 1.92 1.87
3.28 2.83

14.87 10.96
360.50 332.69