A project report on working capital management of shree dayal tours & travels pvt ltd

WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD

SL.NO. CONTENTS PAGE NO.

1 CHAPTER 1

EXECUTIVE SUMMERY

• INDUSTRY PROFILE.• COMPANY PROFILE• NEED FOR STUDY• OBJECTIVE OF THE STUDY• RESERCH METHDOLOGY• FINDING• SUGGESTION• CONCLUSION

3 TO 7

2 CHAPTER 2

INTRODUCTION OF INDUSTRY

INDUSTRY PROFILE

8 TO 14

3 CHAPTER 3

INTRODUCTION OF COMPANY

• COMPANY PROFILE • VISION, MISSION AND GOAL.• BOARD OF DIRECORS.• OBJETIVE OF SDT&TPL.• PRODUCT & SERVICE PROFILE• ORGANIZATION FLOW CHART OF SDT&TPL.• DEPARTMENT STUDIES OF SDT&TPL

15 TO 34

4 CHAPTER 4

RESEARCH METHDOLOGY

• SCOPE OF STUDIES.• OBJECTIVE OF STUDIES• METHDOLOGY

35 TO 39

Babasabpatilfreepptmba.com 1


5CHAPTER 5

WORKING CAPITAL MANAGEMENT

• INTRODUCTION• MEANIG OF CAPITAL.• FORM OF CAPITAL• MEANING OF WORKING CAPITAL • NEED OF WORKING CAPITAL• NATURE OF WORKING CAPITAL• FACTORS DETERMINING WORKING CAPITAL

REQUIREMENTS.• FINANCING OF WORKING CAPITAL• WORKING CAPITAL COMPOSITION.

40 TO 52

6 CHAPTER 6

DATA ANANLYSIS AND INTERPRETATION53 TO 70

7 CHAPTER 7• FINDINGS• SUGGESTIONS• CONCLUSIONS

ANNEXURE

BALANCE SHEET

BIBLOGROPHY

71TO 77





EXECUTIVE SUMMARY

TITLE OF THE PROJECT

“WORKING CAPITAL MANAGEMENT”

Organization: SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED.

INDUSTRY PROFILE:-

In the 3500 BC fixed wheel chart are invented first wheel vehicles in

history .Other early wheel vehicles included the carious. The wheel vehicles were used for

the traveling purpose. Littleton area first began to be settled in 1862, there were two principal

forms of transportation available: walking and either riding or being pulled by a horse. There

were no roads to speak of, only old Indian trails which had been widened and packed hard

by the increased usage of white men. Their after in air India has came in 19th century. Air

Indian has first Government sector company in India .It was introduced long year ago in

India And there after many private air lines comes in India .The airlines has developing the

service sector in India by providing tours and traveling facility to the customer. In 19 th

century many tours & Travels Company introduce in India. Air Deccan is continues to be one

of the faster growing commercial passenger airlines today .Air Deccan company has

developed tours & travels sectors to provide various facility to the tours & travels facility

company.

Company profile:-

SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED (SDT&TPL) is situated

at Makwana Road Andheri (East) in Mumbai; State – Maharashtra .Shree Dayal Tours &

Travels Pvt Ltd is a medium scale of Tours & Travels service providing company. Shree

Dayal Tours & Travels Pvt Ltd was incorporated in the year 2001. Shree Dayal Tours &

Travels Pvt Ltd was set up in the year of 2001, 17 August. The Registration number is U

63040 MH 2001 PTC 133094. The registered office of the company will be situated in the

state of Maharashtra i.e. within the jurisdiction of registrar of companies at Mumbai. Shree

Dayal is a Tours & Travels company. I have undertaken my study in area of working capital


http://www.littletongov.org/history/othertopics/natives.asp


in order to get the basic understanding and information regarding the tours & traveling

company.

• Objectives of the study :

To study the working capital requirement of a company.

To know the progress of working capital in a company

To study the efficiency of cash, and receivables management of the company

To know the solvency of the company & how the company is managing working

capital.

The objective of study to analyzed the liquidity position of the company.

THE WORKING CAPITAL NEED ARISES FOR THE FOLLOWING PURPOSE.

• For purchasing of Tickets.

• For paying wages and salaries

• To increase day-to-day expense and overhead costs like power and office expense etc.

• To meet selling costs of packages, advertising etc…

• To provide credit facilities to customers.

• SCOPE FOR THE STUDY :-

This project acts as a reference guide or as a source of information. It gives the

idea about the financial analysis and working capital of the firm. The main scope of the

study was to put into practical the theoretical aspect of the study into real life work

experience. The study deals with analysis and interpretation of the data collected through

the sources of primary and secondary data for a period of five financial years. I.e. 2004-

2005, 2005-2006, 2006-2007, 2007-2008 and 2008-2009 Graphs, diagrams and tabulation

methods are used to analyze and interpret the data collected. It will help to understand the

company’s liquidity position.



LIMITATION OF THE STUDY

• This study deals only with the data made available. Hence the result of this study

cannot judge the business of the firm in general

• The study have been influenced by the limitation of the ratio analysis

• The study extensively uses the data provided is the financial reports of the firm which

may also have their own limited perspective

• The analysis made on the working capital management is for a particular period of

time the current assets and current liabilities will change for an analysis made at any

other of time.

• METHODOLOGY:

. In preparing of project the information collected from the two sources.

Primary Sources:

Primary sources include information collected through discussion with the concerned

departmental persons i.e. Mr. Parihar and Mr. Manoj.R

Secondary Sources:

I was used secondary sources also for collecting the data. They are:

• Information from the text sources

• Information form the internet sources

•Information from the materials provided by the concern

SAMPLING DESIGN

0 Sampling unit : Financial Statements

1 Sampling Size :Last five years financial statements

• Finding and Suggestion :

Finding:-



The net working capital has declined in the year 2007-2008 and but the profit of the

company was increased in the year 2007-2008

The Shree dayal tours & Travels Pvt Ltd has abled to repay the liability & loan of the creditors or not.

Suggestion:-

In the year 2007-2008 the current assets of the Shree Dayal tours and travels Pvt Ltd has

declined and current liability of the company has increases there for the net working capital

declined. There for the current ratio has declined. The net working capital of the company

has increased remaining year .But profit has increased because the sales has increased in the

year 2007-2008.

The company has abled to repay the liability of the creditors because of the current

ratio of SDT&TPL is above the standard of current ratio i.e. 2:1. The profit of the

company has increased every year.

• Conclusion:-

The Shree Dayal tours & travels Pvt Ltd has profit orient company and

company has to able to the repay of his lability.The company have sufficient reserve and

surplus and reserve and surplus has increases every year. After going through the

different aspects of the industry departments and the awards it has received in different

fields. There is good relationship between the directors and employee. The management

concerned about employees complete health and wealth.



INDUSTRY PROFILE.



INDUSTRY PROFILE

.

HISTORY:-

Littleton area first began to be settled in 1862, there were two principal forms of transportation available: walking and either riding or being pulled by a horse. There were no roads to speak of, only old Indian trails which had been widened and packed hard by the increased usage of white men. This did not change for nearly a decade. As farfetched as it may sound, the early South Platte valley settlements had a legacy of steamboat travel. The Rocky Mountain News regularly published the arrivals and departures of various river boats, and saw to it that major east coast newspapers reprinted them. Was the South Platte River deeper then? No. This was just one of many schemes dreamed up by News editor William Byers to boost settlement in Colorado Territory -- by the time greenhorns discovered the deception, they were in St. Louis, more than half-way here. The only "real" traffic on the South Platte, then or since, were shallow-draft barges and canoes carrying beaver and buffalo hides to Missouri markets. Steam-powered transportation did reach Littleton in 1871, when tracks of the Denver and Rio Grande Railroad were completed to a siding at Richard little’s farm. On August 24, the engine Montezuma brought the Mayor of Denver and assorted dignitaries to the end of the line. The striking beauty of the area elicited such enthusiasm that the railroad added a public excursion


http://www.littletongov.org/history/histlandmarks/denverrgdepot.asp

http://www.littletongov.org/history/histlandmarks/denverrgdepot.asp

http://www.littletongov.org/history/othertopics/natives.asp


two days later, a Sunday, and sold out at $2.50 for the round trip. This began a long relationship between the citizens of Denver and the "resort" community of Littleton.Three years later, the Denver, South Park and Pacific Railroad laid tracks on the west bank of the South Platte River, putting Littleton on the most direct route to the Leadville mining district. In 1887 the Atchison, Topeka and Santa Fe pulled into town from Pueblo, joining several smaller and/or short-lived lines. In 1889, one observer along the tracks wrote, "...we counted twelve trains as they passed to and fro inside an hour. No one has any idea of the monster traffic on these two roads until they go and look for themselves." At its peak, Littleton boasted twenty-four scheduled stops a day for passengers and freight.

The star of the railroads was the D&RG's Uncle Sam, a special excursion between Denver and Littleton, with a stop at Fort Logan that ran as many as six trips a day. Begun in 1888 and terminated in 1924, it was considered one of the country's finest passenger operations, and was the D&RG's most profitable route, despite a round-trip fare of just 25 cents. Between 1906 and 1923 the Uncle Sam boasted a "Theater Train" once or twice a week.

In the 1890s, during the height of railroad popularity, another transportation craze swept the country -- bicycling. Although bicycles, or velocipedes as they were originally called, had been around since the 1860s, the invention of pneumatic rubber tires and friction brakes made it a household item. Denver led the craze, boasting the highest per capita bicycle ownership in the country. Among the many popular bike paths constructed was south from Denver along the city ditch to Littleton. Once there, many cyclists picnicked in the shade surrounding the Sunshine and Shadow Inn or watched the bike races around the Inn's track, while the more adventurous continued south to Palmer Lake and back, completing a

"century" ride, or 100 miles in a day.

The next improvement was the electric trolley car, which was extended from Denver into Littleton in 1907. The line came down south Broadway, went cross-country at Big Dry Creek to enter the town on Prince Avenue and then turned onto Main. Eventually, the line was

Babasabpatilfreepptmba.com

D. & R.G. "Uncle Sam," c. 1916.

Littleton's street car, c. 1910.

10

http://www.littletongov.org/history/othertopics/hotels.asp

http://www.littletongov.org/history/othertopics/irrigation.asp

http://www.littletongov.org/history/histlandmarks/atchisondepot.asp


extended across the South Platte River, south of Bowles Avenue. For a time, the Littleton route included the famous "Cherrelyn" street car on south Broadway, where a horse assisted the motors going up a steep grade, then climbed aboard and rode on the car during the descent. The streetcar line was abandoned in 1926 in favor of cheaper o run and more flexible buses.

The final improvement in personal transportation began just after the turn of the century and continues to today. In 1904, Rude Chandler's "benzine buggy" automobile cruised onto Littleton's streets. Within two years there were eight of the infernal contraptions buzzing about and the city was besieged by calls to license the machines and ticket those exceeding "an immoderate speed". The city responded with a speed limit for all conveyances of 8 miles an hour. Now, of course, Littletonites could hardly imagine their city without wide boulevards, super highways and the automobile.

Air Indian has first government sector company in India .It was

introduced long year ago in India And there after many private air lines comes in India .The

airlines has developing the service sector in India by providing tours and traveling facility to

the customer. In 19th century many tours & Travels Company introduce in India. Air Deccan

is continues to be one of the faster growing commercial passenger airlines today .Air Deccan

company has developed tours & travels sectors to provide various facility to the tours &

travels facility company. The airlines company has given registration to the tours & travels

company to sell his air ticket and developing the tourisms in country. All airline operators

and the competition continue to be stiff among all operators putting pressure on yields. The

future growth of air travels within to and from India will continue to depend on the growth of

the Indian economy. The company’s scheduled airlines business continued to grow in all

areas of its operations and your company is a significant player in the Indian domestic

aviation and tours & travels sectors. It has also achieved the distinction of becoming the

carrier with the widest reach covering more destinations then any other domestic carrier.

An Indian airline has succeeded in changing the face of the aviation and tours and travels

sectors in India. It has succeeded in enlarging the market for air travels and has turned air

Babasabpatilfreepptmba.com

Dr. and Mrs. Crysler in their firstautomobile, 1909.

11


travels into a mass commodity. Passengers traveling with tickets not issued from the

departure station on the below classes will be entitled for hotel accommodation, if available.

Business Class Fares booked and ticketed in C, J, Z and I class.

Economy Class Fares booked and ticketed in Y and M class.

The Tours & Travels Company has continuance of positive economic

factors and strong performance of the service and retails sectors should lead to

sustained growth in passenger traffic. The aviation market has witnessed a shift

growing aspirations. The unprecedented growth in passenger traffic in India has

attracted several airlines already to set up operations resulting in a highly competitive

environment.

A major development within the industry has been the recent

trend of consolidation. This has resulted in three major market share leaders, viz., Air

India-Indian, Jet Airways-Jetlite and Deccan-Kingfisher which control more than

85% of the market. It is expected that may result in a reduction in cut-throat pricing

leading to improved yields and, consequently, a road to profitability the combined

group of Kingfisher-Air Deccan will be in a better position to offer air travel options

across a wider network and to all segments of the traveling population. An all new

livery and colures and a complete makeover of the frontline staff and executives will

provide a whole new experience to both the existing traveler and a new traveler. The

Company’s operations, sales, marketing and distribution, front line and support

services and the completion of these are vital to achieve a profitable growth in the

future. India – the land to travel to, a haven of tourism delights, a civilization to tour

through. Tourists come to India for its wealth of sights, cultural exuberance, diversity

of terrain and in search of that special something, an extra punch that only India

promises and delivers. Teeming with over a billion people who voice over a million



concerns in fifteen hundred different languages, India is where people live with

variety, thrive on diversity and are too familiar with largeness to let it boggle them.

Mud huts and mansions face off across city streets. Lurid luxury and limp living are

inhabitants of the same lane.

History of Transportation

3500 BCFixed wheels on carts are invented - the first wheeled vehicles in history. Other early wheeled vehicles include the chariot.

3500 BC River boats are invented - ships with oars

2000 BC Horses are domesticated and used for transportation.

181-234 The wheelbarrow is invented.

770 Iron horseshoes improve transportation by horse

1492Leonardo da Vinci first to seriously theorize about flying machines - with over 100 drawings that illustrated his theories on flight

1620 Cornelis Drebbel invented the first submarine - an human oared submersible


http://inventors.about.com/library/inventors/blsubmarine.htm

http://inventors.about.com/library/inventors/blearlyflight.htm#da_vinci

http://inventors.about.com/library/inventors/blhorseshoe.htm

http://inventors.about.com/library/inventors/blwheelbarrow.htm

http://inventors.about.com/library/inventors/blhorseshoe.htm

http://inventors.about.com/library/inventors/blnautical.htm

http://inventors.about.com/library/inventors/blwheel.htm


1662Blaise Pascal invents the first public bus - horse-drawn, regular route, schedule, and fare system

1740 Jacques de Vaucanson demonstrates his clockwork powered carriage

1783First practical steamboat demonstrated by Marquis Claude Francois de Jouffroy d'Abbans - a paddle wheel steamboat

1783 The Montgolfier brothers invent the first hot air balloons

1787 Steamboat invented

1769First self-propelled road vehicle invented by Nicolas Joseph Cugnot

1790 Modern bicycles invented

1801 Richard Trevithick invented the first steam powered locomotive (designed for roads)

1807Isaac de Rivas makes a hydrogen gas powered vehicle - first with internal combustion power - however, very unsuccessful design

1807First steamboat with regular passenger service - inventor Robert Fulton's Clermont

1814 George Stephenson invents the first practical steam powered railroad locomotive

1862 Jean Lenoir makes a gasoline engine automobile

1867 First motorcycle invented

1868George Westinghouse invents the compressed air locomotive brake - enabled trains to be stopped with fail-safe accuracy

1871 First cable car invented

1885Karl Benz builds the world's first practical automobile to be powered by an internal combustion engine

1899 Ferdinand von Zeppelin invents the first successful dirigible - the Zeppelin

1903 The Wright Brothers invent and fly the first engined airplane

1907 Very first helicopter - unsuccessful design

1908Henry Ford improves the assembly line for automobile manufacturing

1908 Hydrofoil boats co-invented by Alexander Graham Bell & Casey Baldwin - boats that skimmed water

1926 First liquid propelled rocket launched

1940 Modern helicopters invented

1947 First supersonic jet flight

1956 Hovercraft invented


http://inventors.about.com/library/inventors/blhovercraft.htm

http://inventors.about.com/library/inventors/bljetengine.htm

http://inventors.about.com/library/inventors/blhelicoptor.htm

http://inventors.about.com/library/inventors/blrocketliquid.htm

http://inventors.about.com/library/inventors/bltelephone2.htm#flight

http://inventors.about.com/library/inventors/blnautical.htm

http://inventors.about.com/library/inventors/blford.htm

http://inventors.about.com/library/inventors/blhelicoptor.htm

http://inventors.about.com/library/inventors/blairplane.htm

http://inventors.about.com/library/inventors/bl_wright_brothers.htm

http://inventors.about.com/library/inventors/blzeppelin.htm

http://inventors.about.com/library/inventors/blbenz.htm

http://inventors.about.com/library/inventors/blstreetcars.htm

http://inventors.about.com/library/inventors/blwestinghouse.htm

http://inventors.about.com/library/inventors/blmotorcycle.htm

http://inventors.about.com/library/weekly/aacarsgasa.htm#lenoir

http://inventors.about.com/library/inventors/blrailroad7.htm

http://inventors.about.com/library/inventors/blsteamship.htm#fulton

http://inventors.about.com/library/weekly/aacarsgasa.htm#ic

http://inventors.about.com/library/inventors/blrailroad8.htm

http://inventors.about.com/library/inventors/blbicycle.htm

http://inventors.about.com/library/weekly/aacarssteama.htm

http://inventors.about.com/library/inventors/blsteamship.htm

http://inventors.about.com/library/inventors/blairship.htm

http://inventors.about.com/library/inventors/blsteamship.htm

http://inventors.about.com/library/inventors/blpascal.htm


1964 Bullet train transportation invented

1969 First manned mission (Apollo) to the Moon

1970 First jumbo jet

1981 Space shuttle launched


http://inventors.about.com/library/inventors/blnasa3.htm

http://inventors.about.com/library/inventors/bljetengine.htm

http://inventors.about.com/library/inventors/blnasa2.htm


COMPANY PROFILE.

VISION, MISSION AND GOAL

BOARD OF DIRECTORS

OBJECT OF SDT&TPL

PRODUCT & SERVICE PROFILE

DEPARTMENT STUDIES.

ORGANIZATION FLOW CHART

PROFILE OF THE COMPANY

COMPANY HISTORY OF THE PLACE The Shree Dayal Tours & Travels Private Limited was established in August 2001 at

Mumbai, Maharashtra State.

REGD. OFFICE & WORKS OF THE COMPANY Shree Dayal Tours & Travels Private Limited

Corporate Office: 207, ARK Industrial Estate, Makwana Road, Marol Naka, Andheri (East)

Mumbai -400059.India Tel: 91-228501786/2686/ 2489 Fax: 91-228504947



DIRECTOR OF THE COMPANYMrs.Roli P. Choudhery,

Ms.Babita Choudhary.

Mr. Suresh S.Choudhary

PRODUCT AND SERVICE LINE OF THE COMPANY• Tours Product.

• Domestic and international Flight booking services.

• Hotel Booking services.

• Provided Bus facility services.

• Provided Car facility services.

• Provided Cruises services.

• Railways ticket booking services.

• Foreign exchange services.

CLIENTS OR CUSTOMERS • Aditya Birla Groups

• Johnson & Johnson Pvt Ltd

• Siyaram textiles Pvt Ltd

• Other People

MARKET CHANNELS

• On the basis of Clients, they make Direct Sales to the Customers.

COMPETITORS The main competitors of the Company are:



• Akbar Tours & Travels Pvt Ltd

• Riya Tours & Travels Pvt Ltd

• Kesari Tours & Travels Pvt Ltd.

NUMBER OF SHIFTSGeneral Shift:

9-00 AM to 6-00 PM

No. Of Working Days:

300 Days in a year

SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED

(SDT&TPL) is situated at Makwana Road Andheri (East) in Mumbai; State –

Maharashtra .Shree Dayal Tours & Travels Pvt Ltd is a medium scale of Tours & Travels

service providing company. Shree Dayal Tours & Travels Pvt Ltd was incorporated in the

year 2001. Shree Dayal Tours & Travels Pvt Ltd was set up in the year of 2001, 17 August.

The Registration number is U 63040 MH 2001 PTC 133094. The registered office of the

company will be situated in the state of Maharashtra i.e. within the jurisdiction of registrar of

companies at Mumbai. Shree Dayal is a Tours & Travels company .This company has

booking the aero planes ticket and booking, reserving accommodations seats, compartments

and berths on railways, Steam ships motor ships boats ,omnibus ,Motorbus and carriages of



all descriptions and to issue tickets international & Domestics for the same and to hire

taxies ,Motor car and all kind of Public vehicles and transports and to charter services and to

book reserve and secure for and on behalf of the constituents of the company ,Room and

boarding and lodging accommodations in hotels ,restaurants and boarding’s houses and to

handle cargoes ,goods ,luggage or baggage’s and also to book ,and secure accommodations

including boarding and lodging accommodations in resorts on behalf of guests or customers

of the company.

There is another industry in the Campus of Shree Dayal Tours & Travels Pvt Ltd

which is a husband concern Dayal Impax private Limited was established in the year 2003.

Dayal Impax private Limited has cloth stitching company .This company has taking order from

the supplier and prepare a cloth.

This company has provided many offer more than 15 leisure tour product to

Singapore and Europe, more than 10 to south East Asian and is the Domestic and

international tour operator in Indian tours. Shree Dayal tours & Travels Pvt Ltd also takes

pride in being consistently innovation in the tourisms industry.

The Shree Dayal Tours & Travels Private Limited is customer focused and

Quality oriented Service unit, which is continuously strive to services to meet its external

customer’s requirements. The main goal of the company is to giving full satisfaction to

the customer and providing good quality of service, enhancing to improve the services

and make company more competitive.

The Shree Dayal Tours & Travels Private Limited has specialized divisions

to cater to the needs of all types travelers, whether it is a guest looking for the safety and

security of escorted group tours, or someone seeking exclusive customized holidays or the

business traveler .We offer our guests a range of allied travel services such as air ticketing,

Visa, Foreign exchange and hotel booking at one stop for their convenience.



Company has issue domestic and also international flight ticket booking to the people on

the basis of the commission. The company has issue more flight ticket booking of that

company those who are give high commission to The Company .The Company has issued

or booking of the Domestic air ticket railway ticket, booking of hotel and give rent on car

The Company has also provided helicopter service facility to the people. The company has

also sold many tours product to the people for his tour convenience purpose. The company

has offered many tours product to the people. The company was offered world tours as well

as Indian tours to the people.

The company has offered tours product like Second Inning tours, Sport tours,

Honeymoon tours, Education tours, and Business tours to the people. The different Air

lines company has given different commission rate to the company. If the company has

ticket booked of Jet Air ways, Spice jet and go air Airline Company then SDT&TPL

Company will get 6% transaction fees. And remain Air ways like kingfisher, Indian

airlines; indigo and air Deccan air ways will get 3% transaction fees on booking of flight

ticket.

World Tour

Indian Tour

Tashkent - WA 4 Days 3 Nights

Bali - WB 4 Days 3 Nights

Dubai - WD4 Days 3 Nights

Hong Kong - WH4 Days 3 Nights

Bangkok - WK 4 Days 3 Nights

London - WL4 Days 3 Nights

Mt. Abu - W14 Days 3 Hotel Nights

Varanasi Allahabad - W2 4 Days 3 Hotel Nights

Nilgiri Hills-W34 Days 3 Hotel Nights

Bhubaneswar Konark Puri-W44 Days 3 Hotel Nights


http://www.kesari.in/SITs/tr_ChtBrk_W4.asp










http://www.kesari.in/SITs/tr_ChtBrk_WZ.asp


http://www.kesari.in/SITs/tr_ChtBrk_WL.asp




http://www.kesari.in/SITs/tr_ChtBrk_WK.asp


http://www.kesari.in/SITs/tr_ChtBrk_WH.asp





http://www.kesari.in/SITs/tr_ChtBrk_WD.asp




http://www.kesari.in/SITs/tr_ChtBrk_WB.asp

http://www.kesari.in/SITs/tr_ChtBrk_WA.asp




http://www.kesari.in/SITs/tr_ChtBrk_WB.asp










Mauritius - WM 4 Days 3 Nights

Amsterdam – WN 4Days 3Nights

Paris - WP 4 Days 3 Nights

Srilanka - WR 4 Days 3 Nights

Singapore - WS 4 Days 3 Nights

Turkey - WT4 Days 3 Nights

Maldives - WV 4 Days 3 Nights

Samarkand Bukhara - WX 4 Days 3 Nights

Goa-W54 Days 3 Hotel Nights

KhajurahoJabalpur Bedaghat-W64 Days 3 Hotel Nights

Katra Vaishnodevi-W74 Days 3 Hotel Nights

Jaipur-W84 Days 3 Hotel Nights

Pondicherry Mahabalipuram-W94 Days 3 Hotel Nights

Cochin Munnar-WC4 Days 3 Hotel Nights

Name of Domestic Airlines:-


http://www.kesari.in/SITs/tr_ChtBrk_WC.asp
















http://www.kesari.in/SITs/tr_ChtBrk_WX.asp




http://www.kesari.in/SITs/tr_ChtBrk_WV.asp




http://www.kesari.in/SITs/tr_ChtBrk_WT.asp




http://www.kesari.in/SITs/tr_ChtBrk_WS.asp




http://www.kesari.in/SITs/tr_ChtBrk_WR.asp




http://www.kesari.in/SITs/tr_ChtBrk_WP.asp


http://www.kesari.in/SITs/tr_ChtBrk_WN.asp




http://www.kesari.in/SITs/tr_ChtBrk_WM.asp

















Kingfisher Red.

Jet Airways

Indian Airlines.

Spice Jet.

Indigo

Go Air

Air Deccan

Name of International Airlines:-

Sr.No AIRLINE NAME PREFIX CODE1 Singapore Airline SQ 6182 Silk Air MI 6293 Continental Airline CO 0054 Sri Lankan Airline UL 6035 Dragon Air KA 0436 Royal Dutch Airline KL 0747 Kenya Airways KQ 7068 Air Canada AC 0149 Korean Air KE !80

10 Thai Airways TG 21711 Northwest Airlines NW 01212 American Airlines AA 00113 Qatar Airways QR !5714 Air India AI 09815 Air One AP 867


http://www.jetairways.com/EN/IN/AboutUs/CodeShare.aspx


16 Bangkok Airways PG 82917 Gulf Air GA 08418 Air Mauritius MK 23919 Jet Airways 9W 58920 LAN Chile LA 04521 LAN Peru LP 54422 LAN Argentina 4M 46923 Austrian OS 25724 Philippine Airlines PR 07925 Swiss Airline LX 72426 Royal Jordanian RJ 51227 South African Airways SA 08328 Virgin Atlantic VS 93229 Saudi Airlines SV 06530 Egypt Airlines MS 07731 Japan Airlines JL 13132 Air China CA 99933 British Airways BA 12534 Indian Airlines IC 29735 China Airlines CI 29736 Turkish Airlines TK 23537 Air New Zealand NZ 08638 Kuwait Airlines KU 22939 Air France AF 05740 China Southern CZ 78441 Kingfisher IT 09042 Oman Air WY 91043 EVA Air BR 69544 Biman Airlines BG 99745 Air Portugal TP 04746 Iran AIR IR 09647 Air Astana KC 46548 Delta Airlines DL 00649 Pakistan Airlines PK 21450 Virgin Blue DJ 856

Details about Fair Rate of the Airline



Business Class.

Economic class.

1:-BUSINESS CLASS FLIGHT FAIR

Sr.no STATE AIRLINES CODE Included

TAX Total

1 America Delta Airline BOM/JFK/EWR 738188

2 Australia Qantas Air BOM /SYD/ MEL/ 242710

3 Sri Lanka Srilanka BOM/ CMB/BOM 49398

4 Canada Jet Airways BOM/ YYZ/BRU 242769

5 Newzland Singapore BOM/AKL/BOM 207534

6 South Africa Kenya Airlines BOM/JNB/BOM 122155

7 England Luptansa BOM/LHR/MAN 274005

8 Mexico Delta Airline BOM/ MAX /BOM 572192

9 Saudi Arabia Air India BOM/ RUH/BOM 44181

10 Nepal Jet Airways BOM/ KTM /BOM 71545

11 Etly KU BOM/ RWI/ ROM/ 221434

12 China 9W BOM/PVG/BOM 120193

13 Russia Aeroflot BOM/ SVO /BOM 104055

14 France Air France BOM/CDG /BOM 234146

15 Germany Luptansa BOM/ FRA/ MAM 236212

16 Kolalampur Malaysia BOM/KUL/BOM 86602

17 Singapore Singapore BOM/ SIN/BOM 83709

18 Dubai Emirates BOM/DXB/BOM 86758

19 Turkey Turkey BOM/IST/BOM 226453

20 Bangkok Bk BOM/BKK/Bom 628942:-ECONOMY CLASS FLIGHT FAIR

Sr.no STATE AIRLINES CODE Included TAX

Total1 America Delta Airline BOM/JFK/EWR 1101382 Australia Qantas Air BOM /SYD/ MEL/ 1835453 Sri Lanka Srilanka BOM/ CMB/BOM 285344 Canada Jet Airways BOM/ YYZ/BRU 144482



5 Newzland Singapore BOM/AKL/BOM 631526 South Africa Kenya Airlines BOM/JNB/BOM 835927 England Luptansa BOM/LHR/MAN 786908 Mexico Delta Airline BOM/ MAX /BOM 2710889 Saudi Arabia Air India BOM/ RUH/BOM 2886710 Nepal Jet Airways BOM/ KTM /BOM 2919911 Etly KU BOM/ RWI/ ROM/ 8232012 China 9W BOM/PVG/BOM 4206813 Russia Aeroflot BOM/ SVO /BOM 7906114 France Air France BOM/CDG /BOM 9178115 Germany Luptansa BOM/ FRA/ MAM 7204416 Kolalampur Malaysia BOM/KUL/BOM 3937717 Singapore Singapore BOM/ SIN/BOM 2732418 Dubai Emirates BOM/DXB/BOM 4712319 Turkey Turkey BOM/IST/BOM 5069620 Bangkok Bk BOM/BKK/Bom 40060

Vision

S.exe “Spreading Smiles Happiness and Joyful life to People and Developing the

Business in a country”.

Mission



“Shree Dayal Tours & Travels is passionately committed to quality travel, with

continual delivery of value added services .We upholds the highest ethical

standards and believes in creating new benchmarks in the industry”.

Goals

Main goal of company

To earn a profit.

To providing good quality of services to people.

To attracting new and new customer.

To service can not stop any boundary.

SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED

BOARD OF DIRECTORS

Ms.Roli Choudhary.

Ms.Babita Choudhary.

Mr. Suresh S.Choudhary.



MANAGING OF DIRECTOR

Mr.Pawan S.Choudhary

STATUTORY AUDITORS

N.B Shetty & co Mumbai

BANKERS

Oriental Bank of Commerce.

RIGISTER OFFICE

207 –ARK Industrial Estate Makwana Road, Marol NakaAndheri (East)Mumbai-400058.

Object of Shree Dayal Tours & Travels Pvt Ltd

The main Objects of the Company as set out in the Memorandum of Association

of the Company are as follows:

To run manage or carry on the business of taxi cars, deluxe coaches ,lorries , cars ,trucks,

airships wagons ,rail , motors vessels, ferries ,boats and other vehicles propelled by

electricity, gas ,gasoline compressed air steam ,manned power ,mechanized power, oil



,crude oil, automatic or other energy or by whatsoever means and from any place or

another whether within India or otherwise for the purpose of carrying conveying

,transportation goods , materials produce ,machinery ,animals passengers, merchandise ,

mail ,freight ,and all such things which may be conveniently carried on with the aforesaid

object of the company.

To insure with any persons or company, against losses, damages, risks and liability of

any kind which may effect the company either wholly or partially and if thought fit to

effect any such insurance by joining or becoming members of any mutual insurance,

protection or indemnity association federation or society and to accept any such

insurances or any thereof for the account of the company.

To procure information for as to the standing and responsibility of parties with whom

they propose to transact business.

To provide clear ,comfortable and inexpensive sleeping accommodation for workmen

and others and in connection their with to the afford to such persons facilities and

convenience for washing ,bathing ,cooking , reading, writing , and finding employment

and for the purchase ,sale and consumption of provisions both liquidity and solid.

Product & Service Profiles

The Shree Dayal Tours and Travels Pvt Ltd have provided many tours product to the people .The company has also provided service to the people. The totally honest policy, excellent service and perfect tours planning are the hallmarks of company success. The company has perfected our tour itineraries to meet the special needs of the discerning tourist.

Product Profile: - (Tour Products)

1. Second Innings Tours



2. Educational Tours.

3. Honeymoon Tours.

4. Holiday after Holiday Tours.

5. Sports Tours.

6. Chillax Tours.

7. Business Tours.

8. Thrillax Tours.

1) Second Inning Tours :-

An exclusive tour for senior citizens is fully of masti mazz & magic .its a

great way to discover a holiday experience that is truly unique and great opportunity

to meet seniors from different walks of life.

2) Educational Tours:-

Educational tours take teaching out of the textbooks. its gives wonderful

opportunity to learn about various historic event and key location.

3) Honeymoon Tours:-Honeymoon tours will give the wonderful happy moment for life time

and that make happy to the life partner.

4) Holiday after Holiday Tours :- Holiday after holiday tours will give advance tours information to the people those who again enjoy to holiday.

5) Sports Tours:- Sport tours just for the vacationer who want s to combine holiday cheer with edge of the seat sporting encounter.

6) Chillax Tours :- This tour is perfect respite from work stress and the daily grind. Specially tailored to put the spring back into your stride, itsyour chance to let your hair down and indulge in the unexpected. Just make sure your boss hasn’t.

7) Business Tours :-



This tours facility sports enthusiasts this one will have you cheering SDT&TPL introduces sports tours tailored just for the vacationer who want to combine holiday cheer with edge of the seat sporting encounter.

8) Thrill ax adventure tours:- Thrill ax vacation a new SDT&TPL special tours product and life will never be the same again. Feel your adrenaline pumping as you hurtle over white water Rapides. The discovery skill you never knew you possessed, climbing rock faces because it’s about time you stopped existing and started living.

SERVICE PROFILE:-

Domestic and international Flight booking services.

Hotel Booking services.

Provided Bus facility services.

Provided Car facility services.

Provided Cruises services.

Railways ticket booking services.

Foreign exchange services.

Provide tours & travels services

DEPARTMENT STUDIES

Finance Department.

Marketing Department.

Air Ticket Booking Department.

Hotel Booking Department.



Billing Department.

Forex Department.

1) Finance Department

Finance is an essential component of the business to maintain its operations effectively.

This dept. is concerned with day-to-day activities like purchases, sales salary etc. and proper

management and maintenance of accounts of concerned year.

Factions

Day to day/ bank transactions.

Bill passing and payment

Recovering all transactions in books of accounts

Preparations of cash Balance statement.

Bank Reconciliation.

Preparation of Inflow and out flow of cash statement.

Providing various types of management Information system reports required by management

from time to time

Carry out auditing.

2) Marketing Department :-

Among all the functional areas of management marketing are play vary important t role for selling product of the company. The with marketing Department the company can sold product to the customer or public.



Factions

Selling of Tours Product.

Increasing sales of the company.

Awareness about product and service to the customer.

Advertising of company product.

3) Air Ticket Booking Department:-

The main function of air ticket booking department is to flight ticket booking .The

Company has ticket booking as per the order of the customer. The department is booking of

national as well as international ticket of flight.

Factions

Booking of Ticket.

To give the information regarding the Air lines.

To give the information regarding the fair price or low price airlines.

4) Hotel Booking Department :-

Hotel booking department is important because the people booking through the tours &

travels company .The hotel booking department has given full information regarding the hotel to

the customer .Hotel booking department has knowledge about each hotel and which types of

service provide to the customer.

Factions

Booking of Hotel as per order.

To give the information regarding the Hotel.

To give the information regarding the fair price and better service providing hotel.



5) Billing Department:-

Billing department has prepared a bill of airline & hotel. The billing department has

prepared the day to day booking of airline, hotel and other service provided by company .to the

customer.

Factions

Preparing Bill of airline ticket booking per day.

Preparing Bill of hotel booking per day.

6) Forex Department:-

Forex department is doing transaction of foreign exchange. The forex department is handling day to day transaction of foreign exchange .The forex department has prepared the visa and also change the currency of tourist those who want go other country for tourism purpose. Factions

Exchange currency with bank.

Day to Day rate fluctuation record of each country.

Preparing visa.

Providing foreign currency required customer.

Handling foreign currency trading activity.

ORGANISATIONAL FLOW CHART OF SDT&TPL


DIRECTORS


____________________________________________________ ____________ ___

____________________


MANAGING DIRECTOR

Forex Department

Finance Department Marketing Department Ticket BookingDepartment

Hotel BookingDepartment

Billing Department

Domestic Air Ticket Booking

International Air Ticket Booking

Billing PrepareManager

Hotel Ticket Booking Manager

Air Ticket BookingManager

Marketing ManagerSenior. Finance

Manager

Foreign Exchange Manager

Assistant. Finance Manager

Forex Department

Foreign Exchange Manager


.

SCOPE OF THE STUDY

OBJECTIVE OF THE STUDY

RESEARCH METHODOLOGY

Scope and limitations of the study



This project acts as a reference guide or as a source of information. It gives the idea

about the financial analysis of the firm. The main scope of the study was to put into practical the

theoretical aspect of the study into real life work experience. The study deals with analysis and

interpretation of the data collected through the sources of primary and secondary data for a

period of five financial years. I.e. 2004-2005, 2005-2006, 2006-2007, 2007-2008 and 2008-2009

Graphs, diagrams and tabulation methods are used to analyze and interpret the data collected. It

will help to understand the company’s liquidity position. Since the decision regarding working

capital are of an operating nature not one time decision, the scope of the study is geared towards

identifying important areas of control and to establish model for better control of the various

components of working capital

The study would also attempt to identify the various sources available for financing of

working capital.

The study gives a fair idea of improvement in efficiency of working capital management

and also to have proper control over the components of working capital and managing of

efficiency.

LIMITATION OF THE STUDY

• This study deals only with the data made available. Hence the result of this study

cannot judge the business of the firm in general

• The study have been influenced by the limitation of the ratio analysis

• The study extensively uses the data provided is the financial reports of the firm which

may also have their own limited perspective

• The analysis made on the working capital management is for a particular period of

time the current assets and current liabilities will change for an analysis made at any

other of time.



Objectives of the study

To study the working capital requirement of a company.

To know the progress of working capital in a company

To study the loan & advances and repayment of loan of company.

To know the solvency of the company & how the company is managing working

capital.

The basic objective of the study is to see the liquidity position of the company

To study the efficiency of working capital management of the company.

To study the efficiency of cash, and receivables management of the company



Methodology

The data in this project is enabling in secondary in nature. Financial reports, company

records were referred for data analysis. The study has been undertaken by collecting relevant

data from the balance sheet, profit and loss a/c, annul report & Audit report of the shree Dayal

tours & travels Pvt ltd. the company is used financial tools for the analyzing and interpretation

data.

However primary data is also collected by observation discussing with company officials.

This primary data is used to fill in the gaps while preparing this report and to know the latest

procedures adopted by the company. This has helped to draw inferences and conclusions.

Sources of data

There are two types of data

Primary Data

Secondary Data

Primary Data :-

The primary data are those, which are collected fresh for the first time

and thus happen to be original in character. The primary data collection involves the

collecting of information for the first time by observation, experimentation, and

questionnaire and through interview schedules in the original form by the researcher himself

or his nominees.

Plan of action

The primary data was collected through discussion with the finance manager using the

interview schedule. This data was obtained to study the latest procedures relating to working

capital management and ratio analysis system followed by the company



Secondary data:-

The secondary data are those, which have been collected by some other and which

have been processed. Generally speaking secondary data are information, which have been

previously collected by some organization to satisfy his own need. But the department under

reference for an entirely different reason is using it.

I was used secondary sources also for collecting the data. They are:

• Information from the text sources

• Information form the internet sources

• Information from the materials provided by the concern

SAMPLING DESIGN

2 Sampling unit : Financial Statements & Audit Reports

3 Sampling Size :Last five years financial statements

.



MEANING OF CAPITAL FORM OF CAPITAL MEANING OF WORKING CAPITAL TYPE OF WORKING CAPITAL NATURE OF WORKING CAPITAL FACTORS DETERMINING WORKING CAPITAL

REQUIREMENTS FINANCING OF WORKING CAPITAL COMPONENTS OF W.C WORKING CAPITAL COMPOSITION



CAPITAL

Introduction:-

Capital is the keynote of economic development. In this modern age, the level of

economic development is determined by the proportion of capital available.

Meaning of Capital:-

In the ordinary sense of the word Capital means money. But in economics, Capital

has a special meaning. All those man made goods used in the production process is called

capital.

Definition:-

“Capital consists of all kinds of wealth, other than free gifts of nature which yield

income.”

Features of Capital :-

Capital has the following features.

1. Capital is a man made.

2. Capital is a perishable.

3. Capital is a human control possible.

4. Capital is a mobile.

5. Capital is a human sacrifice.

6. Capital is a scarce.

7. Capital is a passive factor.



Forms of capital:-

The Three Primary Types of Financial Capital

Equity Capital

Debt Capital

Specialty Capital

1* Fixed Capital.

2* Working Capital

Equity Capital :-

Otherwise known as “net worth” or “book value”, this figure

represents assets minus liabilities. There are some businesses that are funded entirely

with equity capital (cash written by the shareholders or owners into the company that

have no offsetting liabilities.) Although it is the favored form for most people because

you cannot go bankrupt, it can be extraordinarily expensive and require massive amounts

of work to grow your enterprise. Microsoft is an example of such an operation because it

generates high enough returns to justify a pure equity capital structure.

Debt Capital :-

This type of capital is infused into a business with the understanding

that it must be paid back at a predetermined future date. In the meantime, the owner of

the capital (typically a bank, bondholders, or a wealthy individual), agree to accept

interest in exchange for you using their money. Think of interest expense as the cost of

“renting” the capital to expand your business; it is often known as the cost of capital.

For many young businesses, debt can be the easiest way to expand because it is

relatively easy to access and is understood by the average American worker thanks to


http://beginnersinvest.about.com/cs/investinglessons/l/blles3debtequit.htm

http://beginnersinvest.about.com/cs/investinglessons/l/blles3bkvalue.htm


widespread home ownership and the community-based nature of banks. The profit for the

owners is the difference between the return on capital and the cost of capital.

Specialty Capital :-

This is the gold standard. There are a few sources of capital that have

almost no economic cost and can take the limits off of growth. They include things such

as a negative cash conversion cycle (vendor financing), insurance float, etc.

Negative Cash Conversion (Vendor Financing) Imagine you own a retail store. To

expand your business, you need $1 million in capital to open a new location. Most of this

is the result of needing to go out, buy your inventory, and stock your shelves with

merchandise. You wait and hope that one day customers come in and pay you. In the

meantime, you have capital (either debt or equity capital) tied up in the business in the

form of inventory. Now, imagine if you could get your customers to pay you before you

had to pay for your merchandise. This would allow you to carry far more merchandise

than your capitalization structure would otherwise allow. AutoZone is a great example; it

has convinced its vendors to put their products on its shelves and retain ownership until

the moment that a customer walks up to the front of one of AutoZone’s stores and pays

for the goods. At that precise second, the vendor sells it to AutoZone which in turn sells it

to the customer. This allows them to expand far more rapidly and return more money to

the owners of the business in the form of share repurchases (cash dividends would also be

an option) because they don’t have to tie up hundreds of millions of dollars in inventory.

In the meantime, the increased cash in the business as a result of more favorable vendor

terms and / or getting your customers to pay you sooner allows you to generate more

Income than your equity or debt alone would permit. Typically, vendor financing can be

measured in part by looking at the percentage of inventories to accounts payable (the

higher the percentage, the better), and analyzing the cash conversion cycle; the more days

“negative”, the better. Dell Computer was famous for its nearly two or three week

negative cash conversion cycle which allowed it to grow from a college dorm room to the

largest computer company in the world with little or no debt in less than a single

generation.


http://beginnersinvest.about.com/od/dividendsdrips1/a/aa040904.htm

http://beginnersinvest.about.com/od/investstrategiesstyles/a/aa101805_2.htm


Float

Insurance companies that collect money and can generate income by

investing the funds before paying it them out in the future in the form of policyholder

payouts when a car is damaged, or replacing a home when destroyed in a tornado, are in a

very good place. As Buffet describes it, float is money that a company holds but does not

own. It has all of the benefits of debt but none of the drawbacks.

His most important consideration is the cost of capital – that is, how much

money it costs the owners of a business to generate float. In exceptional cases, the cost

can actually be negative; that is, you are paid to invest other people’s money plus you get

to keep the income from the investments. Other businesses can develop forms of float but

it can be very difficult.

Sweat Equity

There is also a form of capital known as sweat equity which is when an owner

bootstraps operations by putting in long hours at a low rate of pay per hour making up for

the lack of capital necessary to hire sufficient employees to do the job well and let them

work an ordinarily forty hour workweek. Although it is largely intangible and does not

count as financial capital, it can be estimated as the cost of payroll saved as a result of

excess hours worked by the owners. The hope is that the business will grow fast enough

to compensate the owner for the low-pay, long-hour sweat equity infused into the

enterprise

. 1. Fixed Capital :- Fixed capital is one, which can be used in production again and again for a long

period. In other words, fixed capital is the capital, which can be used over and over in the

process of production. It is a capital, which is durable and can be used over a long period of time.

For example: - Machinery, building, tools, implements etc.

2. Working Capital :-



Working Capital is the capital which can be used only once in the process of production.

In other words, It refers to capital which can be used only once in production. It loses its utility

after a single use.E.g: - Raw material, Coal and petroleum, Payment of wages etc.

INTRODUCTION

As every enterprise knows that, working capital is the lifeblood and control

of nerve center of the business. Just as circulation of blood is the essential for

maintaining life, working capital is also essential for maintaining the smooth running of

the business.

The importance of working capital management is indisputable; Business

liability relies on its ability to effective management of receivables, inventory, and

payables. By minimizing the amount of funds tied up in current assets. Firms are able to

reduce financing costs or increase the funds available for expansion. Many managerial

efforts are put into bringing non-optimal level of current assets and liabilities back

towards their optimal levels.

Working Capital refers to the amount of capital which is readily available to an

organization that is, working capital is the difference between resources in cash and

readily convertible into cash (current assets) and organizational commitments for which

cash will soon be required (current liabilities).

Thus, working capital involves activities such as arranging the short-term

finance, negotiating favorable credit terms, controlling the movement of cash,

administrating accounts receivables and monitoring the investments also a great deal of

time.



Meaning of working capital

The financing required by a concern for carrying on its day-to day operations is known

as the “working capital”.

In Accounting:

‘Working capital is the difference between the inflow and outflow of funds’. In other

words, it is the net cash inflow’

Thus it is defined as

“The excess of current assets over current liabilities and provisions”.

Working capital is a liquidity (cash) concept. A business might show a "profit," but if it

cannot maintain a positive cash position (that is, having money in the bank to pay bills

each month), the business cannot continue to operate.

Positive working capital means that the company is able to pay off its short-term

liabilities. Negative working capital means that a company currently is unable to meet its

short-term liabilities with its current assets.



Importance of Working Capital

This chapter reveals the importance of working capital management of an organization to

carry over its business successfully.

Significance of working capital management as follows

Normally firm has to employ certain short-term assets & short run sources of financing.

The management of such assets, describe as working capital management or Current Assets

Management. It is one of the most important aspects of the over all financial management.

Working Capital Management is concerned with the problem that arises in attempting to

managing the current assets & current liabilities & the inter relationship that exits between them.

Working of a firm should neither be too large, too small. If the working capital is large,

the liquidity position would improve, but profitability would be advertise affected, as funds will

remain idle conversely, if the working capital is too small, the overall profitability, position &

make the firm more risky working capital management therefore at aim at striving a balance,

such that an enterprise is able to.

1. Generate cash in sufficient quantities at the right time &

2. Extract fullest use from each shot term resources used in business.

This involves planning & controlling all the items, which drains or augment liquidity.

The working capital is the lifeblood business, which circulates through the naves as short-term investment in aforesaid areas. It is also regarded as a heart of business. If it becomes weak


http://biztaxlaw.about.com/od/glossaryl/a/liquidity.htm


the business can hardly prosper & survive. This brightness the opportunity for achieving highs of success.

Type of Working capital

Introduction

The financial concept of working capital equates it with current assets. According

to this view the total of the working capital is the total value of the current assets of the

company. This is known as the ‘Gross working capital’.

According to the excess of current assets, over current liabilities. In other words, it

is the difference between current assets and current liabilities. This concept of working

capital is called the Net Working Capital.

Hence there two concepts of working capital.

1. Gross Working capital and

2. Net Working Capital

1. Gross Working Capital

The Gross Working Capital (also known as circulating capital, operating capital or

current capitals) represent the quantitative aspect of Working capital since it concerns with the

total value of current assets to be held by the company. The management of Gross working

capital is a short-term phenomenon involving a continuous study of the fluctuation in investment

in current assets. The aim is to neither maintain the level of current assets at proper level neither

at a high level involving unnecessary costs nor at a low level threatening. Production needs.

Current assets include cash in hands, bank balance, bills receivables, sundry debtors, short-term

loans advances, inventories and marketable seventies.



Advantages of working capital.

a) Financial managers are profoundly concerned with current assets.

b) Gross Working Capital provides the current amount of working capital at the right times.

c) It enables a firm to realize the greatest retime on it investment.

d) It helps the fixation of various areas of financial responsibility.

NET WORKING CAPITAL

The net working capital is the difference between current assets and current liabilities. The

concept of net working capital enables a firm to determine how much amount is left for

operational requirements. The net working capital is financed from long term sources which may

includes barrowed funds in the form of term loans, debentures etc. or own funds like plough-

back profits, etc, or both. The management of net working capital is a long-term phenomenon

current liabilities include bills payable, sundry creditors, short-term loans advances and bank

OD.

Needles to say that the firm aims at maximizing the wealth of shareholders wealth .They

should earn sufficient return from its operations. To earn sufficient amt of profit it requires

successful sales utilized to their fullest capacity for this purpose proper management of working

capital is essential because fixed assets can’t work without working capital.

Various research studies suggest. The Gujarat study team, Gujarat the SBI study team has

confirmed that inadequacy of working capital and improper management of working capital has

contributed enormously for the ailment of industrial enterprises.

Working capital management refers to the administration of all aspects of current assets. If has

been observed that a creation of financial manager time is utilized in the management of working

capital. It is devoted for raising working capital and managing it efficiently.

Factors determining working capital Requirements



Factors Determining Working capital Requirements

Nature of Business Seasonality of operations Market Condition Supply condition C.A C.L

.

Financing of working capital

Introduction: -

This chapter put forth the discussion on the sources available for financing the

working capital of an organization.

Funding of working capital is continuous problem for all management. Basically

sources of financing working capital are broadly bifurcated into two sources they are as follows.

Sources of financing of working capital

1. Short Term Finance 2.Long Term Finance

Trade Credit Share Capital

Bank Credit Borrowing from Bank Bank Financing of Accounts Public Deposits. Receivables

Factoring



Bank Financing of Inventory

Working Capital Financing

COMPONENTS OF WORKING CAPITAL

The components of working capital are:

Cash management

Receivables management

CASH MANAGEMENT Cash is the liquid form of an asset. It is the ready money available in the firm or with the business, essential for its operations. A firm needs the cash for the following three purposes:

Transaction Motive : The firm must and should keep the funds for transactions like purchase, sales etc. These activities, which are not known in advance, are not considered while preparing a cash budget.

Precautionary motive : The firm also keeps funds for the safeguard against uncertainties, which are an integral part of business operations.

Speculative Motive : To tap profits from opportunities arising from fluctuations in

commodity prices, security prices, interest rates etc. The company with surplus cash is in

a better position to exploit such situations.

RECEIVABLES MANAGEMENT

Receivable represents amounts owed to the firm as a result of sale of goods or

services on the ordinary course of business. These are claims of the firm against its

customers and form part of its current assets. These receivables are carried for the

customers. The period of credit and extent of receivables depends upon the credit policy



followed by the firm. The main purpose of maintaining or investing in receivables is to

meet competitors, to increase sales, and to maintain a cordial relationship with the clients.

Receivables management is the process of making decisions relating to investment in trade debtors. However, at the same time, investment in this current asset involves cost considerations also. Therefore, there is always a risk of bad debts too.

Credit EvaluationThere are three approaches used for credit evaluation. These are:

• Traditional Credit analysis

• Numerical Credit Scoring

Working capital composition

Introduction: - This part unfolds the discussion on the composition of the working capital i.e. the

proportion different current assets is determined by the trade of between the two seemingly

opposite objectives of liquidity and portability.

Liquidity refers to the ability of an asset get convert into cash at short period and

without loss in value .A Company is said to liquid when they arise. This ability is also known as

technical solvency of the company. The creditors and other lenders of the company would like to

have the ability of meet their dues on their due dates this means much of the current assets

should be held in the form of cash and near near-cash items like marketable. Securities, But cash

is a non-earning asset and yield on marketable seethes will affect the profitability of the concern.

The consideration of the profitability requires that the level of current assets is

kept low and also such a form as will aid production and generate surplus. Thus the objectives of

liquidity (solvency) and profitability seem to operate in opposite to directions. While liquidity

requires large we current assets to be kept and of that mostly in cash and near-cash form

profitability requires that the current assets should be kept at low levels and that too in form,

which will contribute to production. By proper planning the opposing objectives can be

recognized and made to compliment each other.

Keeping liquidity at adequate levels helps the managers to concentrate on

production in a congenial atmosphere and by increase the efficiency of functioning. This leads to



greatly profitability, since the profits ultimately constitute the sources of repayment of the

company’s dues, higher profits increase the liquidity of the concern.

Conclusion:-

Thus the chapter states that the objectives of liquidity and profitability seem to

operate in opposite directions, while liquidity requires large current assets to be kept and

profitability requires the current assets should be kept at low levels, which will contribute to

production.



Ratio Analysis1) Net Working Capital:-

Net working capital is the difference between current assets and current Liabilities.

Years Current Asset Current Liabilities NWC2004-05 26352381.8

1

6122630.12 20229751.69

2005-06 30087971.0

0

6843164.00 23244807.00

2006-07 46858833.0

0

9979106.00 36879727.00

2007-08 44389218.0

0

12123368.00 32265850.00

2008-09 62495041.00 11527167.00 50967874.00



Ratio

0.00

10000000.00

20000000.00

30000000.00

40000000.00

50000000.00

60000000.00

2004-05 2005-06 2006-07 2007-08 2008-09

year

NW

C

Ratio

INTERPRETATIO:-

In The year 2004-05 the company has 20229751.69 N.W.C. In the

year 2005-06 the N.W.C is 23244807.00 and in the year 2006-07 the company has

36879727.00.NW.C But in the year 2007-08 the company has 32265850.00 N.W.C but

the N.W.C has decline drastically compared to the previous years, but in the year 2008-

09 the company has 50967874.00 N.W.C that means the company in a favorable position

& N.W.C has improved vary fast as compared to the previous years which show liquidity

Position of the Shree Dayal Tours & Travels Pvt Ltd has always more & sufficient

working capital available to pay off its current liabilities.

2. Current Ratio:-

Current ratio is a measure of firm’s short-term solvency. This ratio is also known as

working capital Ratio. Current ratio is a measure of general liquidity and is most widely used to

check the relationship of the current assets and current liability. The standard current ratio is 2:1.

Current Ratio = Current Assets Current Liabilities

Years Current Asset Current Liabilities Ratio



2004-05 26352381.81 6122630.12 4.3042005-06 30087971.00 6843164.00 4.3972006-07 46858833.00 9979106.00 4.6962007-08 44389218.00 12123368.00 3.661

2008-09 62495041.00 11527167.00 5.422Diagram:

Ratio

0

1

2

3

4

5

6

2004-05 2005-06 2006-07 2007-08 2008-09

year

Rati

o

Ratio

I NTERPRETATION :-

The current ratio was 4.304 in the year 2004 – 2005 and the year 2005-2006 the current ratio was 4.397 and in the year 2006 -2007 the current ratio was 4.696 this show the current ratio has increase every year but in the year 2007-2008 the current ratio was decreased to 3.661.in the year 2008 – 2009 the current ratio has increases 5.422 .The current ratio is above the standard of 2: 1 ratio and hence it can be said that there is enough working capital in Shree Dayal Tours & Travels Pvt Ltd to meet its current liabilities.

3. Absolute Liquidity Ratio:-

Concept: -

Absolute liquidity ratio is a ratio of cash in hand and cash at bank to current liabilities. The standard ratio is 0.5: 1.

Absolute liquidity Ratio = Cash in hand + Cash at bank Current Liabilities

Years Cash in hand Cash at bank Current Liabilities Absolute Liquidity Ratio

2004-05 322305.70 600000.00 6122630.12 0.15



2005-06 151478.00 600000.00 6843164.00 0.102006-07 125254.00 600000.00 9979106.00 0.072007-08 95663.00 600000.00 12123368.0

0

0.05

2008-09 64627.00 600000.00 11527167.00 0.05

Diagram: -

Absolute Liquidity Ratio

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

2004-05 2005-06 2006-07 2007-08 2008-09

Year

AB

R

Absolute Liquidity Ratio

I NTERPRETATION:-

The absolute liquidity ratio was 0.15 in the year 2004-2005 and decreased to 0.10 in the year 2005 – 2006 and it does not increase further up to 2008-2009.But in the year 2007 -2008 and 2008-2009 it was same. The absolute liquidity ratio is below the standard of 0.5: 1 ratio. It shows that the liquidity position of the concern is unsatisfactory

4. Liquidity Ratio or Liquid ratio:-

Concept: -

This ratio indicates very short term or immediate or very instant financial position.

Liquidity Ratio = Quick Assets Quick Liabilities

Years Current Assets Current Liabilities Liquidity Ratio2004-05 26352381.81 6122630.12 4.302005-06 30087971.00 6843164.00 4.402006-07 46858833 9979106.00 4.70



2007-08 44389218.00 12123368.0

0

3.66

2008-09 62495041.00 11527167.00 5.42

Diagram: -

Liquidity Ratio

0

1

2

3

4

5

6

2004-05 2005-06 2006-07 2007-08 2008-09

year

liq

ud

ity

ra

tio

LiquidityRatio

INTERPRETATION:- The absolute liquidity ratio was 4.30 in the year 2004-2005 and increases to 4.40 in the

year 2005 – 2006 and 4.70 in the year 2006-07, 3.66 in the year 2007-2008 it was decrease due

to increase of labilities.But in the year 2008 -2009 the L.R has increased 5.42 because the C.L

has decreased. The liquidity ratio is above the standard of 1: 1 ratio. It shows that the liquidity

position of the company is satisfactory.

5. Return on Current Assets:-

Concept: -

This ratio indicates the amount of current assets employed in the working capital of the

assets employed in the working capital of the firm as to run the day to day operations of the firm

which helps the firm for its easy flow of goods in the trading activity.

Return on Current Assets = Profit after Tax Current Asset

Year Profit After Tax Current Asset Ratio2004 – 2005 437894.00 26352381.81 0.0162005 – 2006 423298.00 30087971.00 0.014



2006 – 2007 592576.00 46858833.00 0.012 2007-2008 843910.00 44389218.00 0.019 2008-2009 1039889.00 62495041.00 0.016

Diagram: -

Ratio

00.0020.0040.0060.0080.01

0.0120.0140.0160.0180.02

2004-05 2005-06 2006-07 2007-08 2008-09

Year

Retu

rn o

n A

ssets

Ratio

INTERPRETATION:- The Returns on current assets was 0.016 in the year 2004-2005 and it

decreased to 0.12 in the year 2006-2007. It further increased to 0.019 in the year 2007-2008 and

further decreased 0.016 in the year 2008-2009 .It shows that profit will increase then asset

turnover ratio will decline then C.A will increase but in the year 2007-2008 asset ratio was

increased 0.19 because C.A has fall that year. Company has profit transferred to the reserve and

surplus Account shown in balance sheet..

6. Current Asset Ratio:-

Concept: - This ratio measures sales per rupee of investment in current assets. This ratio

measures the efficiency with which current assets are employed a high ratio indicates a high

degree of efficiency is asset utilization and a low ratio reflects inefficient use of current assets.

Current Asset Ratio = Net Sales Average Current Assets

Year Sales Average Current Asset

Ratio

2004 – 2005 102199181.00 19967762.36 5.11 time

2005 – 2006 132858985.00 28220176.41 4.70 time



2006 – 2007 171671451.00 38473402.00 4.46 time

2007-2008 221246824.00 45624025.5 4.84 time 2008-2009 286246257.00 53442129.5 5.35 time

Diagram: -

Ratio

4

4.2

4.4

4.6

4.8

5

5.2

5.4

5.6

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Year

C.A

.R

Ratio

INTERPRETATION:- The current asset ratio was 5.11 times in the year 2004-2005 and 4.70 in

the year 2005-06 and 4.46 in the year 2006-2007 it was decreased. It further increased to 4.48 in

the year 2007-08 & 5.35 in the year 2008-2009. It shows that the current assets are not utilized

properly.

7 .Debtors Turnover Ratio:-

Concept: - Debtors are expected to be converted into cash over a short period of time and

therefore are included in current assets. It shows how many times debtors are converted into cash

in a year.

Debtors Turnover Ratio = Net credit sales Average Debtors

Year Credit sales Average Debtors Ratio



2004 – 2005 102199181.00 19080194.95 5.35 times

2005 – 2006 132858985.00 27192101.00 4.88 times

2006 – 2007 171671451.00 36302837.00 4.72 times

2007-2008 221246824.00 42584634.5 5.19 times 2008-2009 286246257.00 50516905.00 5.66 times

Diagram: -

Ratio

4.2

4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

2004-05 2005-06 2006-07 2007-08 2008-09

Year

Deb

tors

Ratio

INTERPRETATION:-

The debtor’s turnover ratio was very less in the year 2006-07 at 4.72

times, but them it has increased to 5.19, 5.66 times in the year 2007-08 and 2008-09. This shows

that the company is making all the offers to speed up the collection process.

8. Creditors Turnover Ratio :-

Concept: - Creditors’ turnover ratio establishes relationship between not credit purchases and

average trade creditors and accounts payable. The ratio indicates the velocity with which the

creditors are turned over in relation to purchases.

Creditors Turnover Ratio = Net Credit Purchases Average creditors

Year Credit Purchases Average Creditors Ratio

2004 – 2005 96724469.00 82074994.50 1.17 times



2005 – 2006 127553879.00 112554635.00 1.13 times

2006 – 2007 165680148.00 146617013.50 1.13 times

2007-2008 213323185.00 189501666.50 1.12 times 2008-2009 276775674.00 245049429.50 1.12 times

Diagram: -

Ratio

1.09

1.11.11

1.12

1.131.14

1.15

1.161.17

1.18

2004-05 2005-06 2006-07 2007-08 2008-09

Year

cred

ito

r

Ratio

INTERPRETATION:- The creditors turnover ratio was 1.17 times in the year 2004-05 & it decreased to 1.13 times in the year 2006-2007 but creditor turnover will be remain same two year 2005-06 and 2006-07.Thean it was again declined 1.12 in the Year 2007-08. But it was remain same in the year 2007-08 and 2008-09. Generally lower the ratio better is the liquidity position of the firm and vice versa

9. Net Profit Ratio:- Net profit ratio indicates the relation ship between net profit & sales .It is also known as margin on sales ratio.

Net Profit Ratio: - Net profit after Tax x 100

Sales

Year Net Profit After Tax Sales Ratio

2004 – 2005 437894.00 102199181.00 0.43 %

2005 – 2006 423298.00 132858985.00 0.32 %

2006 – 2007 592576.00 171671451.00 0.35 %

2007-2008 843910.00 221246824.00 0.38 %



2008-2009 1039889.00 286246257.00 0.36 %

Diagram:

Ratio

00.050.1

0.150.2

0.250.3

0.350.4

0.450.5

2004-05 2005-06 2006-07 2007-08 2008-09

Year

pro

fit

Ratio

INTERPRETATION:- The Net profit of the company 0.43% in the year 2004-05,0.32 in the year 2005-06 , 0.35 in the year 2006-07 ,0.36 in the year 2008-09. Net profit ratio was show the net profit after tax in the year 437894 in 04-05 but it was fall in the year 2005-2006 there for net profit ratio is falling.

10. Debt / Equity Ratio:- This Ratio indicate how much of the total funds employed

are our owned & how much are borrowed there is no standard fixed for this ratio

but financial institute favors a ratio of 2:1.

Debt / Equity Ratio: - Long Term Borrowing Share holder fund

Year Long Term Borrowing Share holder fund Ratio

2004 – 2005 17020534.74 3281899.00 5.19

2005 – 2006 18599175.00 4705197.00 3.95



2006 – 2007 30650881.00 6297773.00 4.87

2007-2008 25230306.00 7141683.00 3.53 2008-2009 43831794.00 8181572.00 5.36

Diagram:

Ratio

0

1

2

3

4

5

6

2004-05 2005-06 2006-07 2007-08 2008-09

Year

Deb

t

Ratio

INTERPRETATION:-

In The year 2004 -2005 debt equity ratio was 5.19 and 3.59 ,4.87 in the year 2005-06 and 2006-07 .in the year 2005 debt equity ratio fall because shareholder fund was increased. But long term borrowing slow increasing .But in the year debt ratio has decreased 3.53 in the year 2007-08.but in the year 2008-09 the debt equity ratio has increased 5.36. Because long term borrowing and shareholder fund also increases.

11. Working Capital Turnover Ratio:- It is taken as one of the primary indicators of the

short-term solvency of the business. It establishes the relationship with the net sales. It

measures the efficiency with which the working capital is being used by the firm.

WORKING CAPITAL TURNOVER RATIO = Net Sales

Net Working Capital

Year Net Sales Net Working Capital

Ratio

2004 – 2005 102199181.00 20229751.69 5.05 TIME

2005 – 2006 132858985.00 23244807.00 5.72 TIME

2006 – 2007 171671451.00 36879727.00 4.65 TIME



2007-2008 221246824.00 32265850.00 6.86 TIME 2008-2009 286246257.00 50967874.00 5.62 TIME

Diagram:

Ratio

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2004-05 2005-06 2006-07 2007-08 2008-09

Year

W.C

Ratio

INTERPRETATION:

In The year 2004-05 working capital t/o ratio was5.05 time ,5.72 time in the year 2005-2006.In the year 2005-06 the working capital has increases because sales of the company has increases. in the year 2006-07it was 4.65, 6.86,5.62 in the year 2007-2008 and 2008-09.it show the newly established company because the working capital up and down year to year.

. Statement of changes in working Capital for the year 2004-05

Particular 31-03-2005 31-03-2004 Increase ((Sources)

Decrease (Application)

Current AssetSundry debtorso/s more than 6 month Nil - -o/s less than 6 month 25402556.11 12757833.79 12644722.32

Cash & Bank BalanceCash in hand 322305.70 119298.12 203007.58Balance with bank 0.00 - -



Loans & AdvanceMargin against Bank guarantee

600000.00 650000.00 - 50000.00

Accrued interest on Margin Money

16250.00 16250.00 0.00 0.00

Tax deducted at source 11270.00 39761.00 - 28491.00

Total 26352381.81 13583142.91 12769238.90 -Current Liabilities Sundry creditors 5366937.12 4909228.79 457708.33 -

Lalit Bajaj 10000.00 0.00 10000 -O/D with Bank of Baroda - 4665878.93 - 4665878.93Provision s for exp 482193.00 363239.91 118953.09 -Mr.Pawan choudhary 1000000.00 - 1000000.00Mr.Babita Choudhary 500000.00 - 500000.00N.B Shetty 30000.00 10000.00 20000.00 -Income tax 2002-03 20000.00 - 20000.00Income tax 2004-05 233500.00 168000.00 65500.00

Total6122630.12 11636347.63 - 5513717.51

Networking Capital(Current Asset – Current Liability)

20229751.69 1946795.28 18282956.41

Statement of changes in working Capital for the year 2005-06

Particular 31-03-06 31-03-05 Increase DecreaseCurrent AssetSundry debtors o/s more than 6 month - -Others 28981646.00 25402556.11 3579089.89 -Cash & Bank BalanceCash in hand 151478.00 322306.00 - 170828.00Balance with schedule bankIn Current A/C - - - -In Fixed Deposit 600000.00 600000.00 0.00 0.00



Loans & AdvanceUnsecured considered goods, subject to recover advance recover in cash or kind or value.

49243.00 16250.00 32993.00 -

T.D.S & Income Tax paid 305604.00 11270.00 294334.00 -

Total 30087971.00 26352381.81 3735589.19 -

Current Liabilities Sundry creditors 5663415.00 5366937.00 296478.00 -

Other Liabilities 617659.00 522193.12 95465.88 -

ProvisionsProvisions for taxation 527500.00 233500.00 294000.00 -Provisions for F.B.T 34590.00 -

Total 6843164.00 6122630.12 720533.88 -


23244807.00 20229751.69 3015055.31 -


Particular 31-03-2007 31-03-2006 Increase DecreaseCurrent AssetSundry debtors o/s more than 6 month 833104.00 - 833104.00 -Others 42790924.00 28981646.00 13809278.0

0-

Cash & Bank BalanceCash in hand 125254.00 151478.00 - 26224.00Balance with



schedule bankIn Current A/C - -In Fixed Deposit 600000.00 600000.00 0.00 0.00


182081.00 49243.00 132838.00 -

Sundry Advances 1331945.00 - 1331945.00 -T.D.S & Income Tax paid

995525.00 305604.00 689921.00 -

Total 46858833.00 30087971.00

16770862.00

-

Current Liabilities Sundry creditors 8090866.00 5663415.00 2427451.00 -

Other Liabilities 891150.00 617659.00 273491.00 -

ProvisionsProvisions for taxation 927500.00 527500.00 400000.00 -Provisions for F.B.T 69590.00 34590.00 35000.00 -

Total 9979106.00 6843164.00 3135942.00 -


36879727.0

0

23244807.00

13634920.00

-


Particular 31-03-2008 31-03-2007 Increase DecreaseCurrent AssetSundry debtors o/s more than 6 month 386945.00 833104.00 - 446159.00



Others 41158296.00 42790924.00 - 1632628.00Cash & Bank BalanceCash in hand 95663.00 125254.00 - 29591.00Balance with schedule bankIn Current A/C - -In Fixed Deposit 600000.00 600000.00 0.00 0.00


276894.00 182081.00 94813.00 -

Sundry Advances 431945.00 1331945.00 - 900000.00T.D.S & Income Tax paid

1439475.00 995525.00 443950.00 -

Total 44389218.00

46858833.00 - 2469615.00

Current Liabilities Sundry creditors 9854397.00 8090866.00 1763531.0

0-

Other Liabilities 801881.00 891150.00 - 89269.00

ProvisionsProvisions for taxation 1362500.00 927500.00 435000.00 -Provisions for F.B.T 104590.00 69590.00 35000.00 -

Total 12123368.00

9979106.00 2144262.00

-


32265850.00

36879727.0

0

- 4613877.00

Provisional Statement of changes in working Capital for the year 2008-09



Particular 31-03-2009 31-03-2008 Increase DecreaseCurrent AssetSundry debtors o/s more than 6 month 378114.00 386945.00 - 8831.00Others 59110455.00 41158296.00 17952159.0

0-

Cash & Bank BalanceCash in hand 64627.00 95663.00 - 31036.00Balance with schedule bankIn Current A/C - - - -In Fixed Deposit 600000.00 600000.00 0.00 0.00


320425.00 276894.00 43531.00 -

Sundry Advances 431945.00 431945.00 0.00 0.00T.D.S & Income Tax paid

1589475.00 1439475.00 150000.00 -

Total 62495041.00 44389218.00

18105823.00

-

Current Liabilities Sundry creditors 8916827.00 9854397.00 - 937570.00

Other Liabilities 418250.00 801881.00 - 383631.00

ProvisionsProvisions for taxation

2012500.00 1362500.00 650000.00 -

Provisions for F.B.T 179590.00 104590.00 75000.00 -

Total 11527167.00 12123368.00

- 596201.00

Networking Capital(Current Asset – 50967874.0 32265850.0 18702024.0 -



Current Liability) 0 0 0

The working of the company should be positive. It should not be negative. In the

year 2004-2005 Rs. 20229751.69 and in the year 2005-2006 Rs. 23244807.00 the working

capital has increased and 2006-2007, Rs.36879727.00 the working capital has increased but in

the year 2007-2008 Rs.32265850.00 the working capital has decrased.But in the year 2008-2009

the working capital of Shree dayal tours & travels Pvt Ltd has again increased Rs.5067874.00

The Shree Dayal Tours & Travels Pvt Ltd working capital has incrasesed which is favorable

position to the company. It clearly shows that the Shree Dayal Tours & Travels Pvt Ltd has

profit orient company. So it was not facing shortage of working capital in initial years. So it had

to increase its working capital to stand in the business world.

Then again in the year2008-2009 the Shree Dayal Tours & Travels Pvt Ltd Net Working

Capital has increased Rs.50967874.00, which is a very positive sign of prosperity and it, will

help to the Shree Dayal Tours & Travels Pvt Ltd sustain its expansion programs.

Conclusion

The Working Capital Management contributes much in the over all management

of the organization affairs, efficiency of organization operations depend on how it manages its

short term business dealings. Working Capital management contributes for the firm efficiency as

well as the finance manager is proper utilizing the available wealth and maintaining the required

liquidity.





FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS:-

The net working capital has declined in the year 2007-2008 and but the profit of the

company was increased in the year 2007-2008

The Shree dayal tours & Travels Pvt Ltd has abled to repay the liability & loan of the

creditors or not. And also liquidity ratio of shree dayal tours and travels has declined

year to year and some year it will remain the same.

The Return on current assets of shree dayal tours & travels Pvt Ltd is vary high in the

year 2007-2008 and

Company is able to full the standard ratio of current assets and change in working

capital of 2007-2008 has declined.



SUGGESIONS: -

In the year 2007-2008 the current assets of the Shree Dayal tours and travels Pvt Ltd

has declined and current liability of the company has increases there for the net

working capital declined. There for the current ratio has declined. The net working

capital of the company has increased remaining year .But profit has increased because

the sales has increased in the year 2007-2008.

The company has abled to repay the liability of the creditors because of the current

ratio of SDT&TPL is above the standard of current ratio i.e. 2:1. The profit of the

company has increased every year.

Because of the current assets has declined in the year 2007-2008 but profit of the

company has increased in the year 2008-2009. There for the return on current assets

is vary high.

Company has able to full fill the standard level of current ratio i.e. 2:1 .There for the

company has able to repay the liability and loan of company and the change in

working capital declined in the year 2007-2008 due to the sundry creditors has more

and Provision of tax has been vary high.



Conclusion: -

After going through the different aspects of the industry departments and the awards it

has received in different fields. There is good relationship between the directors and employee.

The management concerned about employees complete health and wealth. Working capital may

be regarded as lifeblood of a business. Its effective provision can do much to ensure the success

of a business

Today working capital is considered to be an important tool for progress. Working capital

management techniques are playing significant role in assisting the management for decision

making. The study of working capital management at Shree Dayal Tours & Travels Pvt Ltd Is

found to be very effective. The working capital contains the management of Cash, Debtors, and

creditors. The Shree Dayal tours and travels Pvt Ltd has profit oriented company .The profit of

the company will be increases every year .The company has able to the repay the amount of the

creditor. The company has more working capital and also sale has increases year to year .The

company current ratio has above the standard current ratio i.e. 2:1 but company current ratio is

above 3:1.The Company has financially soundness.

.



Financial Statement



FINANCIAL STATEMENT 2008-2009

PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2009

ParticularsSCHEDULE

As At 31.03.2009

SOURCES OF FUNDSSHAREHOLDERS FUNDSShare capital Reserves and Surplus

Share Application money Pending allotmentSecured LoansUnsecured LoansDeferred Tax Liability (Refer Note No. 10)

TOTAL

APPLICATIONS OF FUNDS Fixed Assets: Gross Block Less: Accumulated DepreciationNet Block

INVESTMENTSCurrent Assets, Loans & Advances Sundry Debtors Cash and bank balancesLoans and Advances

AB

CD-

E

F

GHI

45,00,000.00 36,81,572.00

8181572.00

3,73,46,016.00 64,85,778.00 5,146.00

52,018,512.00

12,91,998.00 2,67,700.00 10,24,298.00

0

5,94,88,569.00 6,64,627.00 23,41,845.00



Less: Current Liabilities & provisionsCurrent LiabilitiesProvisions

NET CURRNT ASSETS

Miscellaneous Expenditure ( To the extent not written off or adjusted)

TOTAL

(A)

JK

(B)(A-B)

K

62,495,041.00 93,35,077.00 21,92,090.00 5,09,67,874.00 26,340.00

5,20,18512.00
