The objectives of any business concern are to maximise its volume of profits or to earn the next rate of return on investment. The transport undertakings, besides rendering the general public utility service, are expected to earn a profit a minimum of adequate the speed of return of the large capital invested. The right maintenance of vehicles will account for an honest amount of profit. Therefore, internal control furthermore as effective management of capital plays a significant role within the maintenance of the vehicles. In road Transport Corporation, the inventory components alone constitute around 60 per cent of the whole disbursement. The full operational cost is reduced to a maximum extent, by minimising the inventory cost drastically. But it'll be difficult to cut back the inventory cost because the long run demand for the fabric components utilized in transport Corporations isn't certain. Hence, a little changes in materials cost may end up in saving an oversized sum of cash. If some efforts are taken and also the material cost is reduced by 5 per cent, it'll increase the profit substantially by 5 per cent. The reduction in material cost will lead to the increased profit admire 35 per cent increase in sales. An in depth analysis of the current situation of state transport corporations, within the midst of certain emerging trends, is important to form its performance better. During this context, the performance of the nationalised road transport has not come up to the expectation of either the government which owns and operates the system or the general public who are the users of the road transport. Therefore, an in depth scrutiny of STUs from the assorted angles with reference to various aspects of inventory operations becomes essential. The current study may be a step towards this direction.

KEYWORDS: Inventory, Road transport, System, Potential Growth, Efficiency, Industrial Output.