Will I able to check the reason for change in inventory balance of previous financial years?

Hi there, Sooraj. Yes, you can track inventory changes in previous years using the Inventory Valuation Detail report, which lists adjustments, purchases, and sales. 
 
Go to Reports > Standard reports, then enter "Inventory Valuation Detail" in the search field. Then, set the Report period section to the previous year. You can use the result of this report to analyse the reasons for the changes in your stock.
 
Let me know if you have additional questions so we can assist you right away.