APJ INSTITUTE OF

MANAGEMENT
TECHNICAL CAMPUS,
RAMA MANDI, JALANDHAR

Divya CA Hardeep Saini Sir (Guide)

Roll No -181110 HR Kanika Aggarwal
 A
SUMMER TRAINNING REPORT ON
“INVENTORY MANAGEMENT”
FOR

In the partial fulfilment of the for the degree of

MASTER OF BUSINESS ADMINISTRATION

ACADEMIC SESSION
(2018-2020)

Under the guidance of:

MR. SANDEEP SHARMA, HOD. (INVENTORY MANAGEMENT)

Submitted by:
Divya
 Preface

In 21st century the world is changing very fast. We are across many
theories and implementation of management.

Any serious thinking on contain and emerging issue of modern business

suggested that basis pillar through which student of management can
learn and understand.

I have visited the industry in order to set the practical knowledge about
which I study in the class theoretical. So that as student of management
can know in training age.

Thus, report prepared as per our syllabus and the necessary guidance
even instruction also gives by our professor.

I have prepared this report so far as my knowledge is concern. This

report reflection of what so a come to know industry during the work at
RELIANCE Company.
 ACKNOWLEDGEMENT
It is almost a ritual to begin the project report with an
“ACKNOWLEDGEMENT” and heartfelt to all those who
directly or indirectly made our project a great learning
experience, indicating me the value and importing the
skills and hard work required for project.

Many have contributed to the successful preparation of

this report. I would like to place on record our grateful
thanks to each one of them. I have great pleasure in
submitting this report on “INVENTORY MANAGEMENT”
as part of our M.B.A project work.
I am thankful to Mr. Sandeep Sharma for his valuable
guidance given to me before and during our project work
and for their keen interest untiring efforts, unfailing
courtesy encouragement and efficient guidance in
completing the project in such and elegant form.
I would like to express my humble thanks to CA Hardeep
Saini (training officer) without whom my training at RIL,
CHOHAL. Complex would not have been possible at all.
I would also like to thank Mr. Sandeep Sharma who have
given me time from their busy schedule to provide me with
information.

At last but not least, I take an opportunity to appeal my

profound gratitude to my adorable and beloved parents for
their everlasting love, strong moral support,
encouragement and personal sacrifice without which I was
unable to reach the present status of education.
 Declaration
I, Divya, hereby declare that the report for “Summer Training
Project” entitled “Inventory Management” is a result of my
own work and my indebtedness to other work publications,
References, if any, have been duly acknowledged.

Place: CHOHAL (Signature)

Date: (Divya)
 Executive summary
The project assigned to me was studied the inventory
management &budget of any organization in the country. I
decided to choose one of the India’s largest companies in a
sector that has rapidly grown over the last few years.
Through this report, I try to enhance the knowledge about the
inventory management &budget management in reliance
industry limited is operating.
Through a thorough of inventory management & budget my aim
is to understand the practical applicability in the company and
effect in decision making by company.
 Table of Contents
S. No. Particulars Page No.
1 GENERAL INFORMATION HISTORY OF 8

RELIANCE INDUSTRY

2 INTRODUCTION TO RELIANCE COMPANY 9-22

3 BOARD OF DIRECTORS 23-25

4 PRIMARY STUDY 26-38

5 INVENTORY MANAGEMENT 39-56

6 RESEARCH & DESIGN 57-59

7 DATA ANALYSIS & INTERPRETATION 60-72

8 QUESTIONNAIRES 73-75
 GENERAL INFORMATION HISTORY OF
RELIANCE INDUSTRY

Reliance Industries Limited (RIL) is an Indian conglomerate holding

company headquartered in Mumbai, Maharashtra, India. Reliance owns
businesses across India engaged in energy, petrochemicals, textiles,
natural resources, retail, and telecommunications. Reliance is one of the
most profitable companies in India, the largest publicly traded
company in India by market capitalization, And the largest company in
India as measured by revenue after recently surpassing the government-
controlled Indian Oil Corporation. On 18 October 2007, Reliance
Industries became the first Indian company to breach $100 billion market
capitalization
The company is ranked 148th on the Fortune Global 500 list of the
world's biggest corporations as of 2018. It is ranked 8th among the Top
250 Global Energy Companies by Platts as of 2016. Reliance continues
to be India’s largest exporter, accounting for 8% of India's total
merchandise exports with a value of Rs 147,755 crore and access to
markets in 108 countries. Reliance is responsible for almost 5% of the
government of India's total revenues from customs and excise duty. It is
also the highest income tax payer in the private sector in India.
INTRODUCTION TO RELIANCE COMPANY

History (1969-2002):
Indian petrochemicals corporation limited (IPCL), a company
under the company’s act with registered office at Jamnagar in
Gujarat was registered on March 22,1969. It was assigned the
responsibility of setting up two upstream mother units and two
downstream units near an established public sector refinery,
Gujarat refinery of Indian oil corporation on the outskirts of
Vadodara in Gujarat. The first board meeting of the board of
directors of the company was held on March 26, 1969 at new
Delhi.

Reliance industry have mainly six (6) production

sites(units).
-Gandhar
-Dahej
-Vadodara
-Hajira
-Jamnagar
-Nagothane
In this six units reliance industry produce hydro petrochemical
products. In vadodara manufacturing department the main
product use as raw material is NEPTHA and the byproduct
form NEPTHA is Ethaline and Propeline. For preparation of
neptha manufacturing unit use chemical cathelit. Reliance
Industries Ltd is an India-based company. The company is
India's largest private sector company on all major financial
parameters. They are the first private sector company from
India to feature in the Fortune Global 500 list of 'World's
Largest Corporations' and ranks 117th amongst the world's Top
200 companies in terms of profits. The company operates
world-class manufacturing facilities across the country at
Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar,
Nagothane, Nagpur, Naroda, Patalganga, Silvassa and
Vadodara.

The company operates in three business segments:

petrochemicals, refining, and oil and gas. The petrochemicals
segment includes production and marketing operations of
petrochemical products. The refining segment includes
production and marketing operations of the petroleum
products. The oil and gas segment includes exploration,
development and production of crude oil and natural gas. The
other segment of the company includes textile, retail business
and special economic zone (SEZ) development.

In the year 1966 the RIL was founded by Shri Dhirubhai

H.Ambani, it was started as a small textile manufacturer unit.
In May 8, 1973 RIL was incorporated and conformed their
name as RIL in the year 1985. Over the years, the company
has transformed their business from manufacturing of textiles
products into a petrochemical major.

The company has set up a texturizing / twisting facility in 1979,

RIL has also set up plants for Polyester Staple Fiber (PSF) in
1986 and for Linear Alkyl Benzene (LAB) & Purified Terephthalic
Acid (PTA) in 1988. RIL has setup a petrochemical facility to
produce HDPE and PVC at Hazira, Gujarat in technical
collaboration with DuPont and BF Goodich respectively. The
Hazira petrochemical plant was commissioned in 1991-92.

In the year 1995-96, the company entered the telecom

industry through a joint venture with NYNEX, USA and
promoted Reliance Telecom Private Limited in India. Reliance
became the first corporate in Asia to issue bonds in the U.S at
the year of 1996-97. The company commissioned an 80,000-
tonne bottle grade PET chip plant at Hazira manufacturing
complex. Reliance's PET chips have been accepted
internationally due to their high quality during the year 1997-
98 and in the same year Reliance Industries planned to invest
around Rs. 5000 corers (USD 1,250 million) in building two
world-scale plants at the site of the Jamnagar refinery in
Gujarat. In 1998-99, RIL introduced packaged LPG in 15 kg
cylinders under the brand name Reliance Gas. In 1999-2000,
RIL commissioned the world's largest 1.4 million tonnes per
annum Paraxylene (PX) plant at its new integrated
petrochemicals complex at Jamnagar which was planned at
1997-98. Reliance Petroleum Limited (RPL) was amalgamated
with Reliance Industries Ltd in the year 2002-03.

In 2004-05, RIL acquired the polyester major, Trevira GmbH,

headquartered in Frankfurt, Germany which has the capacity of
130,000 tonnes per annum of polyester staple fibres, polyester
filament yarns and polyester chips. In the year 2006, the
company set up a new export-oriented refinery through its
subsidiary, Reliance Petroleum Limited (RPL).

In the year 2007, Indian Petrochemicals Corporation Limited

(IPCL) merged with the company. Also, Reliance Retail entered
the organised retail market in India with the launch of its
convenience store format under the brand name of 'Reliance
Fresh'. During the year, the company commissioned their
largest expansion project. The company expanded its
polypropylene (PP) capacity by 280 KTA at Jamnagar that
increased the combined capacity to 1,710 KTA.

During the year 2007-08, the company signed an agreement to

certain polyester (capacity) assets of Hualon, Malaysia. It took
over the majority control of Gulf Africa Petroleum Corporation
(GAPCO) and started shipping products to the East African
markets. Also, the company signed MoU with GAIL (India) Ltd to
explore opportunities of setting up petrochemical plants in
feedstock rich countries outside India. In April 2008, the
company signed gas sales and purchase agreement (GSPA) with
the customers in power sector for supply of natural gas to be
produced from the KGD6 block.

During the year, Reliance Commercial Associates Ltd, Reliance

Nutraceuticals Pvt Ltd, Reliance Pharmaceuticals (India) Pvt
Ltd, Reliance Petro investments Ltd, Gull Africa Petroleum
Corporation (Mauritius), Gapco Tanzania Ltd, Gapoil Tanzania
Ltd, Gapco Kenya Ltd, Gapco Uganda Ltd, Gapco Rwanda SARL,
Gapoil Zanzibar Ltd, Transenergy Kenya Ltd, Recron (Malaysia)
SDH BHD, Peninsula Land Kenya Ltd, Reliance International
Exploration and Production INC, Wavely Investments Ltd,
Reliance Digital Retail Ltd, Reliance Lifestyle Holdings Ltd,
Reliance Universal Ventures Ltd, Reliance Home Store Ltd,
Reliance AutoZone Ltd, Reliance Trade Services Centre Ltd,
Reliance Integrated Agri Solutions Ltd, Reliance Agri Products
Distribution Ltd, Reliance Food Processing Solutions Ltd,
Reliance Supply Chain Solutions Ltd, Reliance Digital Media Ltd,
Strategic
Manpower Solutions Ltd, Reliance Gems and Jewels Ltd,
Reliance Leisure’s Ltd, Reliance Loyalty & Analytics Ltd,
Reliance Retail Securities and Broking Company Ltd, Delight
Proteins Ltd, Reliance F&B Services Ltd, Reliance Hypermart
Ltd, Reliance Financial Distribution and Advisory Services Ltd,
Reliance Retail Travel & Forex Services Ltd, Reliance Trends
Ltd, Reliance Wellness Ltd, Reliance Brands Ltd, Reliance
Footprint Ltd, Abcus Retail Pvt Ltd, Big deal Retail Pvt Ltd,
Advantage Retail Pvt Ltd and RIL (Australia) PTY Ltd became
subsidiaries of the company.

During the year 2008-09, Reliance People Serve Treeline

Infrastructure Management Services Ltd, Reliance Global
Business, BV, Reliance Gas Corporation Ltd, Reliance Global
energy Services Ltd, Reliance One Enterprises Ltd, Reliance
Personal Electronics Ltd, Reliance Global Energy Services
(Singapore) Pte Ltd, Reliance Polymers (India) Pvt Ltd, Reliance
Polyolefins Pvt Ltd, Reliance Aromatics and Petrochemicals Pvt
Ltd, Reliance Energy and Project Development Pvt Ltd, Reliance
Chemicals Pvt Ltd, Reliance Universal Enterprises Pvt Ltd,
International Oil Trading Ltd, Reliance Nutritional Food
Processors Pvt Ltd, Reliance Review Cinema Pvt Ltd, Reliance
Replay Gaming Pvt Ltd, RIL USA Inc. Reliance Commercial Land
Infrastructure Pvt Ltd, Reliance Corporate IT Park Ltd, Reliance
Eminent Trading & Commercial Pvt Ltd, Reliance Progressive
Traders Pvt Ltd, Reliance Prolific Traders Pvt Ltd, Reliance
Universal Traders Pvt Ltd, Reliance Prolific Commercial Pvt Ltd,
Reliance Comtrade Pvt Ltd, Reliance Ambit Trade Pvt Ltd,
Reliance Petro Marketing Pvt Ltd, LPG Infrastructure (India) Pvt
Ltd and Reliance Infosolution Pvt Ltd become subsidiaries of
the company. Also, Abcus Retail Pvt Ltd ceased to be a
subsidiary of the company.

During the year, Reliance Petroleum Ltd (RPL) merged with

the company with effect from April 1, 2008. From April 2,
2009, the company commenced production of hydrocarbons in
its KGD6 block in the Krishna Godavari basin with the
production of sweet crude of 420 API. In November 2009, the
company discovered first oil exploration in the on land
exploratory block CB-ONN-2003/1 (CB 10 A&B) awarded under
the NELP-V round of exploration bidding. In December 2009,
the company discovered gas in the exploration block KG-DWN-
2003/1 (KG-V-D3) of NELP-V. The Deepwater block KG-DWN-
2003/1 is located in the Krishna basin, about 45 kilometers off
the coast in the Bay of Bengal.

In April 2010, the company commissioned a 1 MW solar Photo

Voltaic power plant at Thyagaraj stadium in New Delhi. The
power plant is expected to generate around 1.4 million units of
electricity a year. It would cater to the power requirements of
the stadium and the surplus would be fed to the grid at 11 KV.
In addition, the company's subsidiary Reliance Marcellus LLC
executed definitive agreements to enter into a joint venture
with United States based Atlas Energy, Inc, of Pittsburgh,
Pennsylvania under which Reliance will acquire a 40% interest
in Atlas' core Marcellus Shale acreage position.

In June 2010, the company entered into an agreement to

acquire asubstantial stake in Infotel Broadband Services (P)
Ltd, which emerged as a successful bidder in all the 22 circles
of the auction for Broadband Wireless Access (BWA) Spectrum
conducted by the DOT. The company sees the broadband
opportunity as a new frontier of knowledge economy in which
it can take a leadership position and provide India with an
opportunity to bein forefront among the countries providing
world-class 4G network and services.

In August 2010, the company through their subsidiary, Reliance

Industries Investment and Holding Pvt Ltd acquired the equity
shares of EIH Ltd representing 14.12% from Oberoi Hotels Pvt
Ltd and certain other promoters at a total cost of Rs 1,021
crore.

In December 2010, the company entered into a joint

venture agreement with Russian petrochemical company
SIBUR for the production of butyl rubber in India. The
joint venture
facility will have an initial capacity of 100,000 tonnes of
butyl rubber at the company's integrated refining
cum
petrochemical site in Jamnagar and is expected to be
commissioned by 2013.

In January 2011, the company's wholly owned subsidiary,

Reliance Ventures Ltd entered into an agreement with
Infrastructure Leasing and Financial Services Ltd,
whereby
IL&FS will become a strategic partner and co-promoter of
a project which intends to develop a model economic
township and other infrastructure facilities at Hajar in
Haryana.

In February 2011, the company entered into a strategic

partnership with BP which comprises BP taking a 30%
stake in 23 oil and gas production sharing contracts that
the
company operates in India for a consideration of USD
7.20 billion and the formation of a 50:50 joing venture
between
the two companies for the sourcing and marketing of gas
in
India. The joint venture will also endeavour to accelerate
the creation of infrastructure for receiving, transporting
and marketing of natural gas in India.
In March 2011, the company and D E Shaw Group agreed
to establish a joint venture to build a leading financial
services
business in India. This joint venture will incorporate the D
E Shaw Group's investment and technology expertise with
the company's operational knowledge and extensive
presence across India to offer a comprehensive array of
financial services to the Indian marketplace.

In June 10, 2011, the company and their associate,

Reliance
Industrial Infrastructure Ltd entered into an agreement
with
Bharti Enterprises for acquiring Bharti's shareholding of
74% in Bharti Axa Life Insurance Co Ltd and Bharti Axa
General Insurance Co Ltd. On completion of the proposed
transaction, the company and Reliance Industrial
Infrastructure Ltd would effectively own 57% and 17%
respectively in both insurance companies and would
become Axa's joint ventures partners in India.

In September 2011, Reliance Security Solutions Ltd, a

subsidiary of the company Siemens Ltd signed an MoU to
jointly develop Homeland Security Solutions for Highways
in India.

In November 2011, the company and BP incorporated

India
Gas Solutions Pvt Ltd, a 50:50 joint venture company
which will focus on global sourcing and marketing of
natural gas in
India. The joint venture company will also develop
infrastructure to accelerate transportation and marketing
of natural gas within the country. India Gas Solutions Pvt
Ltd will be funded with equal equity from BP and RIL.
 In November 2011, AXA SA, Bharti, Reliance Industries
Limited (RIL) and its associate Reliance Industrial
Infrastructure Limited (RIIL) announced that they have
mutually agreed to terminate their negotiations on the
proposed acquisition by RIL and RIIL of Bharti's
shareholding of 74% in Bharti AXA Life Insurance Co. Ltd
and Bharti AXA General Insurance Co. Ltd.

In February 2012, the company and SIBUR have agreed

to form a joint venture named Reliance Sibur Elastomers
Pvt
Ltd to produce 100,000 tons of butyl rubber per year in
Jamnagar, India. The joint venture will be the first
manufacturer of butyl rubber in India and the fourth
largest supplier of butyl rubber in the world.

“Growth has no limit at reliance. I keep

revising my vision
LOCATION OF RELIANCE PLANTS
VISION
Through sustainable measures, create value for the nation.
Help India to become a global leader in the domains where it operator.

MISSION
Create value for all stakeholders.
Grow through innovation.
Lead in good governance practices.
Use sustainability to drive product development.
 Product
Refining and Marketing
RIL is among top ten in the world in terms of refineries. Jamnagar Complex has 2% of
world’s crude processing capacity. It is a global hub in the present day.

Petrochemicals

Polymers

polymers Chemicals polymer &

fibre

P1 PFI1

P1 (8) PFI1
 PFI1 (24)

Polymers, Polyester, Fibre Intermediates, Chemicals, and Elastomer are among the major

products from the petrochemicals subsidiary. This department boasts of large production
capacities with world-scale projects.
Explorations and Production 
With several ties and partnerships from major parts of the world, explorations and
production is one of the key places of interest of RIL.
 Retail (12)

RIL has made inroads in retail, providing a direct link between farmers, consumers, and
small retailers.
Natural Gas
In 2002, Reliance struck gas in the D1-D3 field of KG D6 block. RIL is producing natural
gas from the gas fields D1-D3 since April 1, 2009, and light crude oil from the D26 oil field
in KG D6 block, since September 17, 2008.

TEXTILE
Textile

Vimal DEO2

Textil
Vimal

Textil
 Vimal Gifting V2
Vimal Vimal

Textil Textil
RIL manufacturing division at Naroda houses one of the largest and most modern textile
complexes in the world, an achievement recognised by The World Bank. Through Vimal,
they have brought in a new era in fabrics.
Telecommunication
Reliance Jio Infocomm Limited is providing services like 4G Internet, Broadband and
Digital Services across India.
Media
Network 18 Media & Investments Ltd is an Indian mass media company which is owned
and operated by Reliance Industries. Headquartered in Noida, India. It has interests in
television, print, internet, film, mobile content and allied businesses.
Acquisitions
 In 1975, a company formed two years back was merged into Reliance Textile Industries Pvt
Ltd. It was earlier named as Mynylon Limited.
 A company named IPCL was acquired in 2002-03 via shares. RIL bought 46% of the shares of
the company via Reliance Petro Investments Limited at Rs. 2638 crores.
 Infotel Broadband Services Limited, the only successful bidder for pan-India 4G spectrum was
acquired in 2010. This was the major step after which the plan of Jio started to materialize.
Only when you can dream it, you can do it.”
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28,1932-July 6,2002
Dhirubhai Ambani founded Reliance as a
textile company and led its evolution as
a global leader in the materials and
energy value chain businesses.

He is credited to have brought about the equity cult in

India in the late seventies and is regarded as an
icon for
enterprise in Indian. He optimizes the spirit „dare to
dream
and learn to excel‟. The Reliance Group is a living
testimony to his indomitable will, single minded
dedication and an unrelenting commitment to his
goals.
 Board of Directors

Shri Mukesh D. Ambani

Chairman & Managing Director

shri nita m.Ambani Shri Nikhil r.mheshvre

Non executive director Executive director

Shri P.M.S. Prasad Shri Hital R. Meshwani

Executive director Executive director
prof. Dipak C. Jain Dr. Dharamvir Kapur
Independent director Independent director

Shri Ramniklal H Amban shri Mansing L.Bhakta

Non Executive- Independent director

Shri Yogen dra P. Trivedi Shri Mahesh P.Modi

Independent director Independent director
Dr. Raghunath A. Mashelka Prof. Ashok Mishra
Independent director Independent director

Shri Adil Zainulbhai shri Pawankumar Kapil

Independent director Executive director
 PRIMARY STUDY

Company provide benefits to employee

In reliance industry, chohal

RETIRAL BENEFIT

BENEFITS
This loan can be taken 3 times of whole services.
 House loan (Non-refundable fund)
(Minimum)
5 years Housing construction ready building plot purchase
10 years Housing repair (1 st years)
20 years Housing repair (2 nd years)

 Education children

 Fee-schedule
 Registration latter
 Marriage loan- (child, brother, sister, self)
Time limit- fulfil 7 years of services.

PENSION

 Retirement pension condition

Minimum services ----- 10 years\]

Age ----- 50 years/]

 Superannuation
58 years -----extension---60 years

P.F -------------
 Employee case regular
12%
Pensioner
3.67 8.33
In the job % %

12%

 Widow pension - up to age 25 years

Widow /2 children

If child disable, then 3rd child able to take pension also.

EDLT (DEATH CASE)

Employee deposit linked insurance scheme 1976.

 Govt. set amount –6,00,000.

 Reliance insurance—6,02,000.
Independ on industry. They give 6 or more than 6 lakhs.

Gratuity -------- Eligibility (5 years)

Gratuity annulation
4,00,000/- and due amount
1/3rd, 1,00,000 cash 3,00,000/-
Pension.
 RELIANCE INDUSTRY LIMITED
HOSHIARPUR

DEPARTMENTS

TECHNICAL DEPARTMENTS NON-TECHNICAL DEPARTMENT

PRODUCTION AND OPERATION SECURTY DEPARTMENT

POWER AND UTILITY DEPARTMENT OCCUPTIONAL HEALTH CNTER

QUALITY CONTROL DEVELOPMENT HR/ ADMIN/ LEARNING & DEVELOPMENT/

FINANCE& ACCOUNTIMG

RESEARCH AND DEVELOPMENT

INDIRECT TAXES

STORE (MATERIAL MANAGEMENT)

WEREHOUSING (Dispatch section)

 TECHNICAL DEPARTMENT

1. Production & operation

 It main 4 product

 PSF
 PFF
(Polyester  R3S
(Polyester
stable (recon)
fibre fill)
fibre)

 Conjugate
(for export
utility)

2. Power and utility department

Electricity steam Hot water

Chilled water
 3. Quality control department: -

1st quality

2nd quality

3rd quality

If any case quality is defect than it shifts next stage.so it improved.

Non-continuous department other 3 are linked.

ORDER

MATERIAL SERVICES (MAN POWER)

 Use requirement
 Requisition
 Tender

If whole payment is made than to clear in last month and payment on E-payment/ electronic.

4. Research and development

 It first plant in Maharashtra.
 Jamnagar—biggest plant of reliance (world level)
 Crude oil plant in Gujrat.

Bottle—----------------flakes-------------------use for filling

Use as raw material selling

Popcorn----- make form PSF waste

ORGANISATION STRUCTURE

SITE PRESIDENT

GENERAL MANAGER

SR, MANAGER

MANAGER

EXECUTIVE
Finance Department Hierarchy OF
RIL- CHOHAL

GENERAL
MANAGER

SR. MANAGER

EXECUTIVE
THE FINANCE DEPARTMENT IS
DIVIDED INTO 8 DIFFERENT
SECTIONS OF RIL-chohal
CENTRAL
ACCOUN
ACCOU TING
NT CASH&B
RECEIV ANK
ABLE

PROCU RIL. FIN.

REMEN DEPARTM COSTING
T ENT

ACCOU
TAXATI NT
ON PAYABL
PAYROL E
L
1.CENTRAL ACCOUNTING:

Central accounting section is heart of finance. Activities of all other

section are connected with central accounting section.
The different functions of this section are: preparation of the Balance
Sheet and Profitability Statement. Financial statements and accounts
prepare on annually basis as par the requirements and send to
Seanad the stock exchange. As per the information whole accounting
is done through SAPSYSTEM centrally at the main administration
hade office situated in MUMBAI.
2.CASH & BANK SECTION:
Check out the details of baking transition and maintain the balance
of bank. VMD mainly deal with HDFC, SBI, AND AXIS BANK for the
transition of the customer, employees as well as venders.
Basic task performed by this section:
To consolidate the bank account.
Take into account the cash credit limit.
Cash credits are monitored so that interest payment can be control.
Cash flow statement is prepared.
Rill is using E-PAYMENT for easy of payment. Credit limit of the
company depends on the negotiated day’s contact.

The transition of cash and bank are done on the daily basis and it is
record in the SAP SYSTEM regular
basis. For the payment of vendors first of all check and verify the
detailed information about material and the vendor of the company
then they collect the BANK GUREENTY for the further process.
After all the verification system make an INVOICE
NUMBER/CODE of the vendor through this number department
release the payment of the vendor. This whole transaction of
payment is record in the system and after the payment this
transaction is debited in system automatically as expenditure.
3. COSTING SECTION:
Make estimation of cost to the company(catch) and budget in
advance and try to reduce the cost and improve efficient. Costing is
done not only for whole activity but also for individual items. This
section is preparing the monthly cost incurrence budget. They have
to ascertain the
variable cost of the items being produced is because the knowledge
of the variable cost is very essential as if an item is sold below the
variable cost it would be incur loss to the company.
4. ACCOUNT PAYABLE:
All the bills that are come to this department for the sanction. Even
when raw materials are purchased, the supplier sends the bill to the
purchase department, which then sends to the finance department.it
is here that all the particulars are checked and approved. Only after
the bills have been approved payments will be made. Any
department requiring any payment of the bill needs to first send the
bill here for approval. The company enjoys E-PAYMENT.
5.PAYROLL SECTION:
Do all employees related work like prepare pay bill of employees,
income tax, pension and gratuity, leave? encashment etc. this
section works in union with the hr department. The calculation of the
salary for both management and non-management is done here. All
the deduction like PF, loans etc. are done here. They also incorporate
into the salary the various allowances like….
Housing allowance
Conveyance allowance
Medical allowance
Canteen allowance
Shift allowance
Washing allowance
Battery allowance
Professional skill development allowance
Transportation allowance
City compensation allowance
Main functions of this section are:
Salary
Overtime
Income tax deduction of employees
Statutory government payment like professional tax etc.
PF, Loans and advance to employees
Employees claims
Pension
Retirement dues like leave encashment and gratuity.
PF:
At the time of joining of the company PF will be cut from the
employee’s salary. In most of the cases company create a committee
for this particular section, in this case the trust was of commission of
8 members of which 5 people is of trade union. In case, there were
no trust the PF will automatically deducted from Rational Provident
Fund Commission (RPFC).
AS the company’s rule employees cannot withdraw the amount of PF
till 5 years of job in the company.

PF-12% MINIMUM FROM SALATY

+12% FROM COMPANY
For the purpose of loan like, marriage, LIC premium, medical, natural
calamities, renovation of house, construction of house etc. company
provide the PF as follow;

<10 years of service/job company give loan of 75% from PF;

>10 years of service/job company give loan of 85% from PF.

6.TAXATION:
This section takes care of all tax related issues. They are involved in
tax planning and update all the laws with respect to taxation. This
becomes
very important for the company because many decisions may take;
keeping in mind its tax implication.

The budget in this respect has also to be made for the payment and
provision of advance tax. Involved
in updating in taxation as per rules. Tax planning is under this
department as part of prior responsibility.

7.PROCUREMENT:
This section deals with external parties such as dealers,
manufactures and retail traders. It is also maintaining the detail sales
and detail debtors accounts and related adjustment.
Responsibilities of this sections:
Vendor basis
Market information
Negotiations from vendors
Import purchase orders
8. ACCOUNT RECEIVABLS:
This section is work on payment receivable from the customer of the
company.
 INVENTORY MANAGEMENT
INTRODUCTION

Inventory management is the overseeing and controlling

of the ordering, storage and use of components that
a
company will use in the production of the items it will sell
as well as the overseeing and controlling of quantities
of
finished products for sale. A business's inventory is one
of its major assets and represents an investment that is
tied up
until the item is sold or used in the production of an item
that is sold. It also costs money to store, track and
insure
inventory. Inventories that are mismanaged can create
 significant financial problems for a business, whether
the mismanagement results in an inventory glut or an
inventory shortage.

RAW MATERIAL TYPE IN

RIL (chohal):

 CHEMICAL AND CATALIST

 FUEL & LUBRICANTS
 MACHENICAL CONSUMABLE
 SAFTY AND FIRE ITEMS
 STEEL AND CEMENT
 PACKING ITEMS  SCRAP
 OBJECTIVES:
 Requirement based on information from
sale forecast and the production schedule.
 Quality in stock or order from stock
ledgers and from pending purchase
orders.  Procurement time.
 Obsolescence/process change.
 CLASSIFICATION
OF INVENTORY:
RAW MATERIAL

WORK-IN-PROCESS

FINISED GOODS

SCRAP

SPARES

TOOLS

CONSUMABLES

3 STORES FOR MANAGING RAW

MATERIAL & SPARES:
 • Central engineering store
• Chemical store
• Packing store

LEVAL OF INVENTORY:
• Safety(minimum)
• Reorder  Maximum

TECHNIQUE OF INVENTORY:
 ABC ANALYSY AND;
 XYZ TECHNIQUE

In RIL for the purpose of evaluation of

inventory mainly use ABC and XYZ
technique.

They decided some criteria

in % for both the techniques.

TABLE:1 ABC TECHNIQUE

Particular Description
 A 60%of total consumption value

B 30%of total consumption value

C 10% of total consumption value

TABLE:2 XYZ TECHNIQUE

Particular Description
X 60%of total inventory value

Y 30% of total inventory value

Z 10% of total inventory value

FLAGGING
SYSTEM:
 In the RIL in the inventory management
one more system which is known as
FLAGGING SYSTEM. In this system
materials have their particular codes on the
basis of their movement.

TABLE:3
Particular(code) Description
13 1year>2years, procure but not moved
and not issued.

08 2years procure but not moved.

03 More than 4 years procure but not

moved (Slow moving)

05 Surplus
06 Obsolete

The obsolete material of the inventory is

replaced with other plants which are in
need of.
There are two categories of items Planned
and Unplanned.
Planned items are depend upon the bills of
materials (BOM).
Inventory management also levied the
excise duty on the raw material
purchased. As par the government rules
14% excise on NEPTHA and 12.5% on
other raw materials. CENVET credit an
ailment on Inputs is 100% of excise duty.
On the Capital Goods 50%of excise duty
value is in the current financial year and
50% of value is in the next financial year is
available.
 STOCK MAINTANCE
(inventory management)

PROCUREMENT AND CONTROL

PROCUREMENT
 1. purchase of raw material.
2. purchase of spare.
3. chemical.
4. packaging and material.
5. all others.

 Contract for man power.

 Services of all equipment.

 Inside and outside repairing.

 The need for generated resection generated department and for minimum store items for
procurement and control generated to store department.

 After p&c generate for approval by for different attitudes or spend to P&C department for
further action

 RFQ (Request for quotation)

RFQ floatation prospective vender within validity day for receipt offer.

 After offer receipt QCS (quotation competitive statement) and send to P&C department foe
technical department.

 After TCS final liquidity done for purchase order is been issued.
 Followed is done for delivery material after received material for hardly store for preparation
GRN (Good receipt note).

 Based on approved GRM to payment process with vender for taken place.
 The same processer followed for import material for different countries. which are need for
industry.

 CONTRACT

1. All services contract into P&C services required for

operation of the plant.
2. Against the different services required the prospective
services provider are contracted for taking of the job.

 These are two type of contract

 Inside company
 Outsider company
1. Inside plant requirement and other one is outsider plant.
2. For inside plant job contract is finally for contractor for
carry out / executing of the job inside the plant.
3. To carry out inside plant job for services provider
document and after document are verify for necessary
gate pass.
4. For outsider services job depend upon the nature of
repairing, re-winding and machinery job the spare or
equipment are sent to the services provider workshop.
5. On receipt on the equipment the services provider
evaluating the nature of spare to be taken place and
according estimation is sent to P&C department.
6. For the estimation taken evaluate by P&C and user’s
department. After department final negotiation done and
work order is issued to the services department.
7. After received order to services provider to carry on
preparing job and after completion of repairing the
equipment is return back.

Payment on delivery-----------LD clause for order delivery

Vender------it purchases raw material in company through. IOCL
(INDIAN OIL CORPORATION LIMITED) PANIPAT,
IOCL headquarter---new Delhi, India.
Owner: government of India (58.57%).
Panipat refinery is an oil refinery located in baholi village, Panipat
Haryana, India. It was set up in 1998. Panipat refinery is the seventh
refinery belonging to Indian oil corporation limited.

Jamnagar---pet coke (reliance)

Reliance is one of the major petcoke provide in India. Reliance
provides petcoke from its Jamnagar refinery. The Jamnagar
manufacturing division of reliance is the world’s largest refining hub.
Reliance also has another refinery—the sixth largest in the world—in
the special economic zone at Jamnagar. This refinery has a capacity
for processing 580000/-of crude.
This petcoke is also of grade A quality.

Feature: --

 Rich carbon content

 Stable and appropriate chemical properties.
 Low moisture& ash
 High carbon, low sulphur and low nitrogen

Reliance provides petcoke of following grades.

 Grade A
 Grade B
 Grade C
Specification of petroleum coke (petcoke)
Petroleum coke (petcoke) is provide by reliance Jamnagar plant and
the specification are providing by reliance.

property unit Petcoke Petcoke

GRADE A GRADE B

Guaranteed Guaranteed
limits limits

8.0, max 8.0, max

Total %
1.0, MAX 1.0, MAX
moisture %
8 MIN 8 MIN
air dried %
87, MIN. 87, MIN.
basis %
8200, MIN 8200, MIN
ash KCAL/KG
7.0, MAX. 7.0, MAX.
volatile % 35, MIN.
35, MIN.
matter
fixed
carbon
gross
calorific
value
sulphur
HGI
STORE (INVENTORY MANAGEMENT)
RECEIPT department: --
Store in reliance industry they are every day manufacture process as per need of material they
are required. They are need raw material for continuous process. They are purchase raw
material through contractor. It uses transport services for help to smooth running operation
system in company. they are timely supply raw material. In such case important for transport
inventory supplier. (GRM) number
GRM- generation form purchase number in the form of original/duplicate. Original
document required for inventory department or attach E-way bill also. duplicate
document form to require for entry gate pass.
In case material
order in same company e.g.- reliance, it denote as concining.
Other party order material e.g. – Tata company. It denotes as consider.

All document verifies in gate. Than followed step_--

TRN/TPN – truck report number/ Truck park number.
MMN - material management centre.
TOL – truck order linking.
WBN- weight abridge unit.
WBX- weight abridge exit.
MGX- material gate exit.
GRN- generation of purchase number.
Than last print all document.

All approved
/ signed by
head of department / inspection department / labour try department.

ISSUED department: --
All material is done we are required for department. Material/ spare are store in
systematically way in department. It allotted
 Bin number
 Q R code
 And again, scanning bin number because easily allocated in store
department no wastage of time further systematically manufacture
process is followed.
Than store department are issued as requirement of plant department it issued
material.
MDM CELL: -
This cell checks all vender. It also verifies all document. Than entre the gate.

PLC (PROGRAMMABLE LOGIC CONTROL)

It controls all bill than payment to vender.
Minimum- 30 days of payment all clear.

X- bar rating: -
1. Material HSN CODE
HSN means harmonized system of nomenclature code used for classifying the good under
the GST, good and services tax.
 It including cotton materials, synthetics & woven fabrics.
HSN code description Rate
(%)
5203 Cotton and cotton waste 5

5201 Cotton and cotton waste 5

5202 Cotton and cotton waste 5

5204 Cotton sewing thread, 5

5205 Cotton yarn (other than 5

khadi yarn)

2. Services accounting code (SAC)

 It means services accounting code under which services fall under GST are
classified.

 CLOSSING STOCK: -

1. 1% (TCS) tax collected at source in advance to customer.

This tax payable by the seller who collects in turn form the lesser or buyer. This good
are specified under section 206C of the income TAX act, 1961.

SERVICES; -
  Joint measurement sheet
Measurement sheet is record of measurement taken for the selected items.

Civil contractor > document > measurement sheet >new

Fill the details of measurement sheet.

 Date
 Delivery note
 Items
 Description
 Measurement table
 UOM (unit of measurement)
 Total quality
If in case of period check work is done if any felt than reject.

QUALITY SERVICES DEPARTMENT

 Contractor salary--- Allahabad bank
 Employee salary---- HDFC bank

Advanced shipping note (ASN)

It documents that provide detailed information about a pending delivery. The purpose of ASN
notify the customer were shipping occur.

GST

DUPLICATE
OIGINAL DOCUMENT
DOCUMENT

FOR PAYMENT INSURANCE FOR ENTRY GATE

1. Fire policy- all assets.

2. (MBD) policy- 3 marine policy.

 Machinery break down – more than 7 days required than all claim in stop production

and all losses are cover in insurance.

3. In case machinery are elder in stop production than 25% are allotted claim.

4. Medical policy – employee is 15000/- insurance policy under started.

5. PFF cut super employee.

6. GPA—personal accident policy

7. GTLI – dead case in natural it claims charge 25 lakh.

GPL – WORKERS benefits 6 lakhs.

Super employee – 25 lakhs.

Non- super employee –4.5 lakhs.

8. In case damage electronic items, it not charges deprecation.

It provides facilities for issued some services: --

 ATM cards-

Platinum card –10 lakhs

In case 6-month one time or more than 1 use required.

RESEARCH
DESIGN
 RESEARCH METHODOLOGY
“Research is a common parlance refers to search for a new knowledge”.

“Research is comprised defining and redefining problem, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data, making deductions and
reaching conclusions, and at last carefully the testing the conclusions and at last careful
testing the conclusion to determine whether they fit the formulating the hypothesis “

Aim of the study

The aim is to study the INVENTORY MANAGEMENT IN RELIANCE INDUSTRY

LIMITED.

OBJECTIVE OF THE STUDY

The main objectives for undertaking this project are: -
 To know that aware about inventory management system?

 To know that an inventory management system in place in any other same

organisation / company?

 To know that you feel that these should be an inventory management system?
 To know that inventory management system in your company has fulfilled the need
for which it was in evolved?
  To know that the major benefit of going for an inventory management system by
your company?
 To know that skilled professionals in your company for inventory management?

 To know that category of professional is managing your company inventory?

 To know that company gives more emphasis software than skilled manpower with
regard to inventory management?
 To know that the software used by company is according to the design and need of
the system?
 To know that the future of inventory management system in your company?

RESEARCH DESIGN
INTRODUCTION
“Research design is a broad framework that states the total pattern of conducting research
project. It specifies objectives, data collection and analysis methods, time, costs,
responsibility, probable outcomes, and actions.”

The word ‘design’ has various meanings. But, in relation to the subject concern, it is a pattern
or an outline of research project’s recruiting. It is the statement of essential elements of a
study that provides basic guidelines of conducting the project. It is same as the blue print of
architect’s work.

The research design is similar to broad plan or model that states how the entire research
project would be conducted. It is desirable that it must be in written form and must be simple
and clearly stated. The real project is carried out as per the research design laid down in
advance.

I visited NFL, NAYA NANGAL and interacted with officers to make our knowledge
explosive. Research design is flexible enough to provide opportunity for considering different
aspects of problem under study. It helps in bringing into focus some inherent weakness in
enterprise regarding which in depth study can be conducted by management.

METHOD OF DATA COLLECTION

(a) DATA TO BE COLLECTED

Data collection is the process of gathering and measuring information on variable of

interest, in an established systematic fashion that enable one to answer stated research
questions, test hypotheses, and evaluate outcome. In order determine the present
inventory management to employees of RIL.
PRIMARY DATA

The data that is being collected for the first time or to particularly fulfil the objectives of the
project are known as primary data.

The above primary data were collected through Reponses of employees given in the
questionnaire prepared for them.

(b) DATA COLLECTION METHOD

For given project, the primary data, which needed to collect for the first time, were
much significant. This type of information gathered through survey technique, which
is the most popular and effective technique for correct data collection. The survey was
completed with the use of questionnaire.

- Questionnaire for employees.

(c) SAMPLING TECHNIQUE

Initially, a rough draft was prepared keeping in mind the objective of the research. A
Likert scale study was done in order to know the accuracy of the questionnaire
samples was used to convince selected the respondents.

(d) SAMPLING UNIT

The respondents who were asked to fill out questionnaire are the sampling unit.

(e) SAMPLING SIZE

The sampling size was restricted to only 40, comprised of mainly people from
different departments RIL.

(f) SAMPLING AREA

The area of the research was restricted to only RIL (CHOHAL).

 DATA ANALYSIS
AND
INTERPRETATION
 Are you aware about inventory management system?

 Yes

 No

S. NO FREQUENCY PERCENTAGE

YES 25 83.33%

NO 5 16.67%

TOTAL 30 100%
 Respondent

16.67%

83.33%

Yes No

INTERPRETATION: -

From the above data, we can say that 83.33% employee are say YES and 16.67% say NO for aware

about inventory management system.

 Do you agree that these should be an inventory management system in place in any other

same organisation / company?

 Agree

 Disagree

 Do not know / cannot say

S.NO FREQUENCY PERCENTAGE

AGREE 22 73.33%

DISAGREE 4 13.33%

DO NOT KNOW / CANNOT SAY 4 13.33%

 TOTAL 30 100%

RESPONSES

13.33%

13.33%

73.33%

Agree Disagree Do not know / cannot say

INTERPRETATION: -

From the above data, we can say that 73.33% employee are agree, 13.33% employee are disagree\

and other can say that do not know that / cannot say.

 For you reason do you feel that these should be an inventory management system?

 To smoothly operation requirement

 To save time
 To maintain accountability and transparency
 Other reasons
 Do not know / can’t says
S.NO FREQUENCY PERCENTAGE
To smoothly operation 20 66.67%
requirement
To save timely 2 6.67%
To maintain accountability 5 16.66%
 and transparency
Other reason 3 10%
Do not know /cannot say 0 0%
Total 30% 100%

RESPONSES

30.00%

10.00% 66.67%

16.66%

6.67%

To smoothly operation requirement To save timely

To maintain accountability and transparency Other reason
Do not know /cannot say Total

INTERPRETATION: -
From the above data, we can say that 66.67% employee are say smoothly work, 6.67% say it to save
time, 16.66% are say to maintain accountability and transparency and other say that other reason.

 Do you agree that the inventory management system in your company has fulfilled the need
for which it was in evolved?

 Strongly agree
 Agree
 Disagree
 Strongly disagree
 Do not know / cannot say
S. NO FREQUENCY PERCENTAGE
STRONGLY AGREE 28 93.33%
AGREE 2 6.67%
DISAGREE 0 0%
 STRONGLY DISAGREE 0 0%
DO NOT KNOW / CANNOT SAY 0 0%
TOTAL 30 100%

RESPONSES

6.67%

93.33%

STRONGLY AGREE AGREE DISAGREE

STRONGLY DISAGREE DO NOT KNOW / CANNOT SAY

INTERPRETATION: -
From the above data, we can say that 93.33% employee are strongly agree, 6.67% are agree
that the inventory management system in your company has fulfilled the need for which it
was in evolved.

 What according to you is the major benefit of going for an inventory management system by
your company?

 It has made storage and retrieval of material easier

 Improved sales effectiveness
 Reduced operational cost
 Other benefits
 Do not know / cannot say

S. NO FREQUENCY PERCENTAGE
It has made storage and 21 70%
retrieval of material easier
Improve sales effectiveness 7 23.33%
Reduced operational cost 2 6.67%
 Other benefits 0 0%
Do not know /cannot say 0 0%
total 30% 100%

RESPONSES
6.67%

23.33%

70.00%

It has made storage and retrieval of material easier Improve sales effectiveness
Reduced operational cost Other benefits
Do not know /cannot say

INTERPRETATION: -

From the above data, we can say that 70% employee say has made storage and retrieval of material

easier,23.33% are Improve sales effectiveness and other has Reduced operational cost according to

you is the major benefit of going for an inventory management system by your company.

 Do you have skilled professionals in your company for inventory management?

 Yes

 No

S. NO FREQUENCY PECENTAGE

YES 30 100%

NO 0 0%
 R ESPONSES
YES NO

RESPONSES; 100%

INTERPRETATION: -

From the data say that, 100% skilled professionals in your company for inventory management.

 What category of professional is managing your company inventory?

 Skilled and trained

 Only skilled but not trained
 Non-skilled but trained professional
 Non-skilled and non-trained professional
 Other

S. NO FREQUENCY PERCENTAGE
Skilled and trained 27 90%
Only skilled but not trained 3 10%
Non-skilled but trained professional 0 0%
 Non-skilled and non-trained 0 0%
professional
Other 0 0%
TOTAL 30% 100%

RESPONSES

10%

90%

Skilled and trained Only skilled but not trained

Non-skilled but trained professional Non-skilled and non-trained professional
Other

INTERRETATION: -

From the above data, we can say that 90% employee are Skilled and trained, 10%Only skilled but not
trained category of professional is managing your company inventory.

 Do you agree that your company gives more emphasis software than skilled manpower with
regard to inventory management?

 Strongly agree
 Agree
 Disagree
 Strongly disagree
 Do not know / cannot say

S. NO FREQUENCY PECENTAGE
STRONGLY AGREE 29 96.67%
AGREE 1 3.33%
 DISAGREE 0 0%
STRONGLY DISAGREE 0 0%
DO NOT KNOW / CANNOT SAY 0 0%
TOTAL 30% 100%

RESPONSES
3.33%

96.67%

STRONGLY AGREE AGREE DISAGREE

STRONGLY DISAGREE DO NOT KNOW / CANNOT SAY

INTERPRETATION: -

From the above data, we can say that 96.67% STRONGLY AGREE, 3.33% has agree your company
gives more emphasis software than skilled manpower with regard to inventory management.

 Do you think that the software used by company is according to the design and need of the
system?

 Yes
 No

S. NO FREQUENCY PERCENTAGE

YES 30% 100%

NO 0% 0%
INTERPRETATION: -

From the above data, we can say that 100% you think that the software used by company is
according to the design and need of the system.

 What is the future of inventory management system in your company?

 Will continue as a successful mechanism

 May change according to time
 Don’t know / cannot say

S.NO FREQUENCY PERCENTAGE

Will continue as a successful 4% 13.33%
mechanism

May change according to time 24% 80%

 Don’t know / cannot say 2% 6.67%

TOTAL 30% 100%

RESPONSES

6.67%

13.33%

80.00%

Will continue as a successful mechanism May change according to time

Don’t know / cannot say

INTERPRETATION: -

From the above data, we can say that 80% employee say May change according to time, 13.33% say
it Will continue as a successful mechanism and other say Don’t know / cannot say.

CONCLUTION:
From The study of the inventory
management of RELIANCE INDUSTRY I
can able to understand how the inventory
is kept in the big organization accurately
and adequately.
 I come to know the practical knowledge of
INVENTORY MANAGEMENT which I learn
theoretically.

I feel honour to take training in such a big

and international company. All the
information regarding this project,

www.ril.com

BIBLIOGRAPHY
BOOK --

1. Finance Management by Prasanna Chandra

2. Cost and Management Account by M. N.

Arora Websites: -

www.ril.com
 Questionnaire

 Are you aware about inventory management system?

 Yes

 No

 Do you agree that these should be an inventory management system in place in any other

same organisation / company?

 Agree

 Disagree
  Do not know / cannot say

 For you reason do you feel that these should be an inventory management system?
 To smoothly operation requirement
 To save time
 To maintain accountability and transparency
 Other reasons
 Do not know / can’t say
 Do you agree that the inventory management system in your company has fulfilled the need
for which it was in evolved?
 Strongly agree
 Agree
 Disagree
 Strongly disagree
 Do not know / cannot say
 What according to you is the major benefit of going for an inventory management system by
your company?
 It has made storage and retrieval of material easier
 Improved sales effectiveness
 Reduced operational cost
 Other benefits
 Do not know / cannot say

 Do you have skilled professionals in your company for inventory management?

 Yes

 No

 What category of professional is managing your company inventory?

 Skilled and trained
 Only skilled but not trained
 Non-skilled but trained professional
 Non-skilled and non-trained professional
 Other
 Do you agree that your company gives more emphasis software than skilled manpower with
regard to inventory management?
 Strongly agree
  Agree
 Disagree
 Strongly disagree
 Do not know / cannot say
 Do you think that the software used by company is according to the design and need of the
system?
 Yes
 No
 What is the future of inventory management system in your company?
 Will continue as a successful mechanism
 May change according to time
 Don’t know / cannot say