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101001065 a-project-report-on-working-capital-management
101001065 a-project-report-on-working-capital-management
101001065 a-project-report-on-working-capital-management
101001065 a-project-report-on-working-capital-management
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101001065 a-project-report-on-working-capital-management
101001065 a-project-report-on-working-capital-management
101001065 a-project-report-on-working-capital-management
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101001065 a-project-report-on-working-capital-management

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  • 1. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD SL.NO. CONTENTS PAGE NO. 1 CHAPTER 1 EXECUTIVE SUMMERY 3 TO 7 • INDUSTRY PROFILE. • COMPANY PROFILE • NEED FOR STUDY • OBJECTIVE OF THE STUDY • RESERCH METHDOLOGY • FINDING • SUGGESTION • CONCLUSION 2 CHAPTER 2 8 TO 14 INTRODUCTION OF INDUSTRY INDUSTRY PROFILE 3 CHAPTER 3 15 TO 34 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 4 CHAPTER 4 35 TO 39 RESEARCH METHDOLOGY • SCOPE OF STUDIES. • OBJECTIVE OF STUDIES • METHDOLOGY Babasabpatilfreepptmba.com 1
  • 2. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD CHAPTER 5 5 WORKING CAPITAL MANAGEMENT 40 TO 52 • 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. 6 CHAPTER 6 53 TO 70 DATA ANANLYSIS AND INTERPRETATION 7 CHAPTER 7 • FINDINGS 71TO 77 • SUGGESTIONS • CONCLUSIONS ANNEXURE BALANCE SHEET BIBLOGROPHY Babasabpatilfreepptmba.com 2
  • 3. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Babasabpatilfreepptmba.com 3
  • 4. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 inhistory .Other early wheel vehicles included the carious. The wheel vehicles were used forthe traveling purpose. Littleton area first began to be settled in 1862, there were two principalforms of transportation available: walking and either riding or being pulled by a horse. Therewere no roads to speak of, only old Indian trails which had been widened and packed hardby the increased usage of white men. Their after in air India has came in 19 th century. AirIndian has first Government sector company in India .It was introduced long year ago inIndia And there after many private air lines comes in India .The airlines has developing theservice sector in India by providing tours and traveling facility to the customer. In 19 thcentury many tours & Travels Company introduce in India. Air Deccan is continues to be oneof the faster growing commercial passenger airlines today .Air Deccan company hasdeveloped tours & travels sectors to provide various facility to the tours & travels facilitycompany. Company profile:- SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED (SDT&TPL) is situatedat Makwana Road Andheri (East) in Mumbai; State – Maharashtra .Shree Dayal Tours &Travels Pvt Ltd is a medium scale of Tours & Travels service providing company. ShreeDayal 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 U63040 MH 2001 PTC 133094. The registered office of the company will be situated in thestate of Maharashtra i.e. within the jurisdiction of registrar of companies at Mumbai. ShreeDayal is a Tours & Travels company. I have undertaken my study in area of working capital Babasabpatilfreepptmba.com 4
  • 5. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDin order to get the basic understanding and information regarding the tours & travelingcompany.• 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. Babasabpatilfreepptmba.com 5
  • 6. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDLIMITATION 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 concerneddepartmental 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 DESIGN0 Sampling unit : Financial Statements1 Sampling Size :Last five years financial statements • Finding and Suggestion: Finding:- Babasabpatilfreepptmba.com 6
  • 7. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  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. Babasabpatilfreepptmba.com 7
  • 8. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  INDUSTRY PROFILE. Babasabpatilfreepptmba.com 8
  • 9. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 Babasabpatilfreepptmba.com 9
  • 10. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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&RGs 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 countrys finest passenger operations, and was the D&RGs 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. D. & R.G. "Uncle Sam," c. 1916. 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 Inns track, while the more adventurous continued south to Palmer Lake and back, completing a Littletons street car, c. 1910. "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 10
  • 11. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 Chandlers "benzine buggy" automobile cruised onto Littletons 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. Dr. and Mrs. Crysler in their first automobile, 1909. Air Indian has first government sector company in India .It wasintroduced long year ago in India And there after many private air lines comes in India .Theairlines has developing the service sector in India by providing tours and traveling facility tothe customer. In 19th century many tours & Travels Company introduce in India. Air Deccanis continues to be one of the faster growing commercial passenger airlines today .Air Deccancompany has developed tours & travels sectors to provide various facility to the tours &travels facility company. The airlines company has given registration to the tours & travelscompany to sell his air ticket and developing the tourisms in country. All airline operatorsand the competition continue to be stiff among all operators putting pressure on yields. Thefuture growth of air travels within to and from India will continue to depend on the growth ofthe Indian economy. The company’s scheduled airlines business continued to grow in allareas of its operations and your company is a significant player in the Indian domesticaviation and tours & travels sectors. It has also achieved the distinction of becoming thecarrier 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 travelssectors in India. It has succeeded in enlarging the market for air travels and has turned air Babasabpatilfreepptmba.com 11
  • 12. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDtravels into a mass commodity. Passengers traveling with tickets not issued from thedeparture 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 Babasabpatilfreepptmba.com 12
  • 13. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 Fixed wheels on carts are invented - the first wheeled vehicles in 3500 BC 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 Leonardo da Vinci first to seriously theorize about flying 1492 machines - with over 100 drawings that illustrated his theories on flight Cornelis Drebbel invented the first submarine - an human oared 1620 submersible Babasabpatilfreepptmba.com 13
  • 14. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Blaise Pascal invents the first public bus - horse-drawn, regular 1662 route, schedule, and fare system Jacques de Vaucanson demonstrates his clockwork powered 1740 carriage First practical steamboat demonstrated by Marquis Claude 1783 Francois de Jouffroy dAbbans - a paddle wheel steamboat 1783 The Montgolfier brothers invent the first hot air balloons 1787 Steamboat invented First self-propelled road vehicle invented by Nicolas Joseph 1769 Cugnot 1790 Modern bicycles invented Richard Trevithick invented the first steam powered 1801 locomotive (designed for roads) Isaac de Rivas makes a hydrogen gas powered vehicle - 1807 first with internal combustion power - however, very unsuccessful design First steamboat with regular passenger service - inventor 1807 Robert Fultons Clermont George Stephenson invents the first practical steam 1814 powered railroad locomotive 1862 Jean Lenoir makes a gasoline engine automobile 1867 First motorcycle invented George Westinghouse invents the compressed air 1868 locomotive brake - enabled trains to be stopped with fail- safe accuracy 1871 First cable car invented Karl Benz builds the worlds first practical automobile to be 1885 powered by an internal combustion engine Ferdinand von Zeppelin invents the first successful dirigible 1899 - the Zeppelin 1903 The Wright Brothers invent and fly the first engined airplane 1907 Very first helicopter - unsuccessful design Henry Ford improves the assembly line for automobile 1908 manufacturing Hydrofoil boats co-invented by Alexander Graham Bell & 1908 Casey Baldwin - boats that skimmed water 1926 First liquid propelled rocket launched 1940 Modern helicopters invented 1947 First supersonic jet flight 1956 Hovercraft invented Babasabpatilfreepptmba.com 14
  • 15. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 1964 Bullet train transportation invented 1969 First manned mission (Apollo) to the Moon 1970 First jumbo jet 1981 Space shuttle launched Babasabpatilfreepptmba.com 15
  • 16. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  COMPANY PROFILE.  VISION, MISSION AND GOAL  BOARD OF DIRECTORS  OBJECT OF SDT&TPL  PRODUCT & SERVICE PROFILE  DEPARTMENT STUDIES.  ORGANIZATION FLOW CHART PROFILE OF THE COMPANYCOMPANY HISTORY OF THE PLACE The Shree Dayal Tours & Travels Private Limited was established in August 2001 atMumbai, 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 Babasabpatilfreepptmba.com 16
  • 17. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDDIRECTOR OF THE COMPANY Mrs.Roli P. Choudhery, Ms.Babita Choudhary. Mr. Suresh S.ChoudharyPRODUCT 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 PeopleMARKET CHANNELS • On the basis of Clients, they make Direct Sales to the Customers.COMPETITORSThe main competitors of the Company are: Babasabpatilfreepptmba.com 17
  • 18. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD • Akbar Tours & Travels Pvt Ltd • Riya Tours & Travels Pvt Ltd • Kesari Tours & Travels Pvt Ltd.NUMBER OF SHIFTS General Shift: 9-00 AM to 6-00 PMNo. 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 & Travelsservice providing company. Shree Dayal Tours & Travels Pvt Ltd was incorporated in theyear 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 thecompany will be situated in the state of Maharashtra i.e. within the jurisdiction of registrar ofcompanies at Mumbai. Shree Dayal is a Tours & Travels company .This company hasbooking the aero planes ticket and booking, reserving accommodations seats, compartmentsand berths on railways, Steam ships motor ships boats ,omnibus ,Motorbus and carriages of Babasabpatilfreepptmba.com 18
  • 19. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDall descriptions and to issue tickets international & Domestics for the same and to hiretaxies ,Motor car and all kind of Public vehicles and transports and to charter services and tobook reserve and secure for and on behalf of the constituents of the company ,Room andboarding and lodging accommodations in hotels ,restaurants and boarding’s houses and tohandle cargoes ,goods ,luggage or baggage’s and also to book ,and secure accommodationsincluding boarding and lodging accommodations in resorts on behalf of guests or customersof the company. There is another industry in the Campus of Shree Dayal Tours & Travels Pvt Ltdwhich 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 fromthe 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 divisionsto cater to the needs of all types travelers, whether it is a guest looking for the safety andsecurity of escorted group tours, or someone seeking exclusive customized holidays or thebusiness 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. Babasabpatilfreepptmba.com 19
  • 20. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDCompany has issue domestic and also international flight ticket booking to the people onthe basis of the commission. The company has issue more flight ticket booking of thatcompany those who are give high commission to The Company .The Company has issuedor booking of the Domestic air ticket railway ticket, booking of hotel and give rent on carThe Company has also provided helicopter service facility to the people. The company hasalso sold many tours product to the people for his tour convenience purpose. The companyhas offered many tours product to the people. The company was offered world tours as wellas 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 Airlines company has given different commission rate to the company. If the company hasticket booked of Jet Air ways, Spice jet and go air Airline Company then SDT&TPLCompany will get 6% transaction fees. And remain Air ways like kingfisher, Indianairlines; indigo and air Deccan air ways will get 3% transaction fees on booking of flightticket. World Tour Indian Tour Tashken Bali - WB Mt. Abu - Varanasi t - WA 4 Days 3 W1 Allahaba 4 Days 3 Nights 4 Days 3 d - W2 Nights Hotel 4 Days 3 Nights Hotel Dubai - Hong Nights WD Kong - 4 Days 3 WH Nights 4 Days 3 Nights Nilgiri Bhubanes Hills-W3 war Bangkok 4 Days 3 Konark - WK Hotel Puri-W4 London - 4 Days 3 WL Nights 4 Days 3 Nights 4 Days 3 Hotel Nights Nights Babasabpatilfreepptmba.com 20
  • 21. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Mauritiu Amsterda Goa-W5 Khajuraho s - WM m –WN 4 Days 3 Jabalpur 4 Days 3 4Days Hotel Bedaghat- Nights 3Nights Nights W6 4 Days 3 Paris - Srilanka - Hotel WP WR Nights 4 Days 3 4 Days 3 Katra Jaipur-W8 Nights Nights Vaishnode 4 Days 3 vi-W7 Hotel Singapor Turkey - 4 Days 3 Nights e - WS WT Hotel 4 Days 3 4 Days 3 Nights Nights Nights Cochin Maldives Samarkan Pondicher Munnar- - WV d Bukhara ry WC 4 Days 3 - WX Mahabalip 4 Days 3 Nights 4 Days 3 uram-W9 Hotel Nights 4 Days 3 Nights Hotel NightsName of Domestic Airlines:- Babasabpatilfreepptmba.com 21
  • 22. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  Kingfisher Red.  Jet Airways  Indian Airlines.  Spice Jet.  Indigo  Go Air  Air DeccanName of International Airlines:-Sr.No AIRLINE NAME PREFIX CODE 1 Singapore Airline SQ 618 2 Silk Air MI 629 3 Continental Airline CO 005 4 Sri Lankan Airline UL 603 5 Dragon Air KA 043 6 Royal Dutch Airline KL 074 7 Kenya Airways KQ 706 8 Air Canada AC 014 9 Korean Air KE !80 10 Thai Airways TG 217 11 Northwest Airlines NW 012 12 American Airlines AA 001 13 Qatar Airways QR !57 14 Air India AI 098 15 Air One AP 867 Babasabpatilfreepptmba.com 22
  • 23. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 16 Bangkok Airways PG 829 17 Gulf Air GA 084 18 Air Mauritius MK 239 19 Jet Airways 9W 589 20 LAN Chile LA 045 21 LAN Peru LP 544 22 LAN Argentina 4M 469 23 Austrian OS 257 24 Philippine Airlines PR 079 25 Swiss Airline LX 724 26 Royal Jordanian RJ 512 27 South African Airways SA 083 28 Virgin Atlantic VS 932 29 Saudi Airlines SV 065 30 Egypt Airlines MS 077 31 Japan Airlines JL 131 32 Air China CA 999 33 British Airways BA 125 34 Indian Airlines IC 297 35 China Airlines CI 297 36 Turkish Airlines TK 235 37 Air New Zealand NZ 086 38 Kuwait Airlines KU 229 39 Air France AF 057 40 China Southern CZ 784 41 Kingfisher IT 090 42 Oman Air WY 910 43 EVA Air BR 695 44 Biman Airlines BG 997 45 Air Portugal TP 047 46 Iran AIR IR 096 47 Air Astana KC 465 48 Delta Airlines DL 006 49 Pakistan Airlines PK 214 50 Virgin Blue DJ 856 Details about Fair Rate of the Airline Babasabpatilfreepptmba.com 23
  • 24. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  Business Class.  Economic class. 1:-BUSINESS CLASS FLIGHT FAIRSr.no STATE AIRLINES CODE Included TAX Total1 America Delta Airline BOM/JFK/EWR 7381882 Australia Qantas Air BOM /SYD/ MEL/ 2427103 Sri Lanka Srilanka BOM/ CMB/BOM 493984 Canada Jet Airways BOM/ YYZ/BRU 2427695 Newzland Singapore BOM/AKL/BOM 2075346 South Africa Kenya Airlines BOM/JNB/BOM 1221557 England Luptansa BOM/LHR/MAN 2740058 Mexico Delta Airline BOM/ MAX /BOM 5721929 Saudi Arabia Air India BOM/ RUH/BOM 4418110 Nepal Jet Airways BOM/ KTM /BOM 7154511 Etly KU BOM/ RWI/ ROM/ 22143412 China 9W BOM/PVG/BOM 12019313 Russia Aeroflot BOM/ SVO /BOM 10405514 France Air France BOM/CDG /BOM 23414615 Germany Luptansa BOM/ FRA/ MAM 23621216 Kolalampur Malaysia BOM/KUL/BOM 8660217 Singapore Singapore BOM/ SIN/BOM 8370918 Dubai Emirates BOM/DXB/BOM 8675819 Turkey Turkey BOM/IST/BOM 22645320 Bangkok Bk BOM/BKK/Bom 62894 2:-ECONOMY CLASS FLIGHT FAIRSr.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 Babasabpatilfreepptmba.com 24
  • 25. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD5 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 theBusiness in a country”. Mission Babasabpatilfreepptmba.com 25
  • 26. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD“Shree Dayal Tours & Travels is passionately committed to quality travel, withcontinual delivery of value added services .We upholds the highest ethicalstandards 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. Babasabpatilfreepptmba.com 26
  • 27. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 Naka Andheri (East) Mumbai-400058. Object of Shree Dayal Tours & Travels Pvt Ltd The main Objects of the Company as set out in the Memorandum of Associationof 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 Babasabpatilfreepptmba.com 27
  • 28. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD ,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 productto 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 companyhas perfected our tour itineraries to meet the special needs of the discerning tourist.Product Profile: - (Tour Products) 1. Second Innings Tours Babasabpatilfreepptmba.com 28
  • 29. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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:- Babasabpatilfreepptmba.com 29
  • 30. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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. Babasabpatilfreepptmba.com 30
  • 31. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  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 propermanagement 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 rolefor selling product of the company. The with marketing Department the company can soldproduct to the customer or public. Babasabpatilfreepptmba.com 31
  • 32. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDFactions  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 .TheCompany has ticket booking as per the order of the customer. The department is booking ofnational 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 tothe customer .Hotel booking department has knowledge about each hotel and which types ofservice 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. Babasabpatilfreepptmba.com 32
  • 33. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD5) Billing Department:- Billing department has prepared a bill of airline & hotel. The billing department hasprepared the day to day booking of airline, hotel and other service provided by company .to thecustomer.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 forexdepartment is handling day to day transaction of foreign exchange .The forex department hasprepared the visa and also change the currency of tourist those who want go other country fortourism 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 Babasabpatilfreepptmba.com 33
  • 34. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD MANAGING DIRECTOR____________________________________________________ ____________ ___ Forex DepartmentFinance Department Marketing Department Ticket Booking Hotel Booking Billing Department Forex Department Department Department Foreign Exchange Manager Senior. Finance Hotel Ticket Billing Prepare Manager Marketing Manager Booking Manager Manager Foreign Exchange Manager ____________________ Assistant. Finance Manager Domestic Air Ticket International Air Ticket Booking Booking Air Ticket Booking Manager Babasabpatilfreepptmba.com 34
  • 35. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD .  SCOPE OF THE STUDY  OBJECTIVE OF THE STUDY  RESEARCH METHODOLOGY Scope and limitations of the study Babasabpatilfreepptmba.com 35
  • 36. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD This project acts as a reference guide or as a source of information. It gives the ideaabout the financial analysis of the firm. The main scope of the study was to put into practical thetheoretical aspect of the study into real life work experience. The study deals with analysis andinterpretation of the data collected through the sources of primary and secondary data for aperiod of five financial years. I.e. 2004-2005, 2005-2006, 2006-2007, 2007-2008 and 2008-2009Graphs, diagrams and tabulation methods are used to analyze and interpret the data collected. Itwill help to understand the company’s liquidity position. Since the decision regarding workingcapital are of an operating nature not one time decision, the scope of the study is geared towardsidentifying important areas of control and to establish model for better control of the variouscomponents of working capital The study would also attempt to identify the various sources available for financing ofworking capital. The study gives a fair idea of improvement in efficiency of working capital managementand also to have proper control over the components of working capital and managing ofefficiency.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. Babasabpatilfreepptmba.com 36
  • 37. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 Babasabpatilfreepptmba.com 37
  • 38. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Methodology The data in this project is enabling in secondary in nature. Financial reports, companyrecords were referred for data analysis. The study has been undertaken by collecting relevantdata from the balance sheet, profit and loss a/c, annul report & Audit report of the shree Dayaltours & travels Pvt ltd. the company is used financial tools for the analyzing and interpretationdata. 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 latestprocedures adopted by the company. This has helped to draw inferences and conclusions.Sources of data There are two types of data  Primary Data  Secondary DataPrimary 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 Babasabpatilfreepptmba.com 38
  • 39. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDSecondary 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 DESIGN2 Sampling unit : Financial Statements & Audit Reports3 Sampling Size :Last five years financial statements . Babasabpatilfreepptmba.com 39
  • 40. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  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 Babasabpatilfreepptmba.com 40
  • 41. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD CAPITALIntroduction:- Capital is the keynote of economic development. In this modern age, the level ofeconomic 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, Capitalhas a special meaning. All those man made goods used in the production process is calledcapital.Definition:- “Capital consists of all kinds of wealth, other than free gifts of nature which yieldincome.”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. Babasabpatilfreepptmba.com 41
  • 42. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDForms 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 Babasabpatilfreepptmba.com 42
  • 43. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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. Babasabpatilfreepptmba.com 43
  • 44. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 longperiod. In other words, fixed capital is the capital, which can be used over and over in theprocess 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 :- Babasabpatilfreepptmba.com 44
  • 45. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 utilityafter 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. Babasabpatilfreepptmba.com 45
  • 46. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDMeaning of working capital The financing required by a concern for carrying on its day-to day operations is knownas the “working capital”.In Accounting: ‘Working capital is the difference between the inflow and outflow of funds’. In otherwords, 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. Babasabpatilfreepptmba.com 46
  • 47. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Importance of Working Capital This chapter reveals the importance of working capital management of an organization tocarry 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 AssetsManagement. 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 tomanaging 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 willremain 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 Babasabpatilfreepptmba.com 47
  • 48. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDthe business can hardly prosper & survive. This brightness the opportunity for achieving highs ofsuccess.Type of Working capitalIntroduction 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 Capital1. Gross Working Capital The Gross Working Capital (also known as circulating capital, operating capital orcurrent capitals) represent the quantitative aspect of Working capital since it concerns with thetotal value of current assets to be held by the company. The management of Gross workingcapital is a short-term phenomenon involving a continuous study of the fluctuation in investmentin current assets. The aim is to neither maintain the level of current assets at proper level neitherat 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-termloans advances, inventories and marketable seventies. Babasabpatilfreepptmba.com 48
  • 49. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDAdvantages 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. Theconcept of net working capital enables a firm to determine how much amount is left foroperational requirements. The net working capital is financed from long term sources which mayincludes 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 phenomenoncurrent liabilities include bills payable, sundry creditors, short-term loans advances and bankOD. Needles to say that the firm aims at maximizing the wealth of shareholders wealth .Theyshould earn sufficient return from its operations. To earn sufficient amt of profit it requiressuccessful sales utilized to their fullest capacity for this purpose proper management of workingcapital is essential because fixed assets can’t work without working capital. Various research studies suggest. The Gujarat study team, Gujarat the SBI study team hasconfirmed that inadequacy of working capital and improper management of working capital hascontributed enormously for the ailment of industrial enterprises. Working capital management refers to the administration of all aspects of current assets. If hasbeen observed that a creation of financial manager time is utilized in the management of workingcapital. It is devoted for raising working capital and managing it efficiently.Factors determining working capital Requirements Babasabpatilfreepptmba.com 49
  • 50. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Factors Determining Working capital RequirementsNature of Business Seasonality of operations Market Condition Supply condition C.A C.L .Financing of working capitalIntroduction: - This chapter put forth the discussion on the sources available for financing theworking capital of an organization. Funding of working capital is continuous problem for all management. Basicallysources of financing working capital are broadly bifurcated into two sources they are as follows. Sources of financing of working capital1. Short Term Finance 2.Long Term Finance Trade Credit Share Capital Bank Credit Borrowing from Bank Bank Financing of Accounts Public Deposits. Receivables Factoring Babasabpatilfreepptmba.com 50
  • 51. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 Babasabpatilfreepptmba.com 51
  • 52. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 Evaluation There are three approaches used for credit evaluation. These are: • Traditional Credit analysis • Numerical Credit Scoring Working capital compositionIntroduction: - This part unfolds the discussion on the composition of the working capital i.e. theproportion different current assets is determined by the trade of between the two seeminglyopposite objectives of liquidity and portability. Liquidity refers to the ability of an asset get convert into cash at short period andwithout loss in value .A Company is said to liquid when they arise. This ability is also known astechnical solvency of the company. The creditors and other lenders of the company would like tohave the ability of meet their dues on their due dates this means much of the current assetsshould be held in the form of cash and near near-cash items like marketable. Securities, But cashis 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 iskept low and also such a form as will aid production and generate surplus. Thus the objectives ofliquidity (solvency) and profitability seem to operate in opposite to directions. While liquidityrequires large we current assets to be kept and of that mostly in cash and near-cash formprofitability 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 berecognized and made to compliment each other. Keeping liquidity at adequate levels helps the managers to concentrate onproduction in a congenial atmosphere and by increase the efficiency of functioning. This leads to Babasabpatilfreepptmba.com 52
  • 53. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDgreatly profitability, since the profits ultimately constitute the sources of repayment of thecompany’s dues, higher profits increase the liquidity of the concern.Conclusion:- Thus the chapter states that the objectives of liquidity and profitability seem tooperate in opposite directions, while liquidity requires large current assets to be kept andprofitability requires the current assets should be kept at low levels, which will contribute toproduction. Babasabpatilfreepptmba.com 53
  • 54. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Ratio Analysis 1) Net Working Capital:- Net working capital is the difference between current assets and current Liabilities. Years Current Asset Current Liabilities NWC 2004-05 26352381.8 6122630.12 20229751.69 1 2005-06 30087971.0 6843164.00 23244807.00 0 2006-07 46858833.0 9979106.00 36879727.00 0 2007-08 44389218.0 12123368.00 32265850.00 0 2008-09 62495041.00 11527167.00 50967874.00 Babasabpatilfreepptmba.com 54
  • 55. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Ratio 60000000.00 50000000.00 40000000.00 NWC 30000000.00 Ratio 20000000.00 10000000.00 0.00 2004-05 2005-06 2006-07 2007-08 2008- 09 yearINTERPRETATIO:- 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 asworking capital Ratio. Current ratio is a measure of general liquidity and is most widely used tocheck 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 Babasabpatilfreepptmba.com 55
  • 56. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 2004-05 26352381.81 6122630.12 4.304 2005-06 30087971.00 6843164.00 4.397 2006-07 46858833.00 9979106.00 4.696 2007-08 44389218.00 12123368.00 3.661 2008-09 62495041.00 11527167.00 5.422Diagram: Ratio 6 5 4 Ratio 3 Ratio 2 1 0 2004-05 2005-06 2006-07 2007-08 2008-09 yearINTERPRETATION:- 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 showthe current ratio has increase every year but in the year 2007-2008 the current ratio wasdecreased to 3.661.in the year 2008 – 2009 the current ratio has increases 5.422 .The currentratio is above the standard of 2: 1 ratio and hence it can be said that there is enough workingcapital 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. Thestandard ratio is 0.5: 1.Absolute liquidity Ratio = Cash in hand + Cash at bank Current LiabilitiesYears Cash in hand Cash at bank Current Liabilities Absolute Liquidity Ratio2004-05 322305.70 600000.00 6122630.12 0.15 Babasabpatilfreepptmba.com 56
  • 57. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD2005-06 151478.00 600000.00 6843164.00 0.102006-07 125254.00 600000.00 9979106.00 0.072007-08 95663.00 600000.00 12123368.0 0.05 02008-09 64627.00 600000.00 11527167.00 0.05 Diagram: - Absolute Liquidity Ratio 0.16 0.14 0.12 0.1 ABR 0.08 Absolute Liquidity Ratio 0.06 0.04 0.02 0 2004-05 2005-06 2006-07 2007-08 2008-09 Year INTERPRETATION:- 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 Ratio 2004-05 26352381.81 6122630.12 4.30 2005-06 30087971.00 6843164.00 4.40 2006-07 46858833 9979106.00 4.70 Babasabpatilfreepptmba.com 57
  • 58. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 2007-08 44389218.00 12123368.0 3.66 0 2008-09 62495041.00 11527167.00 5.42Diagram: - Liquidity Ratio liqudity ratio 6 5 4 3 Liquid ity 2 Ratio 1 0 2004-05 2005-06 2006-07 2007-08 2008-09 ye arINTERPRETATION:- The absolute liquidity ratio was 4.30 in the year 2004-2005 and increases to 4.40 in theyear 2005 – 2006 and 4.70 in the year 2006-07, 3.66 in the year 2007-2008 it was decrease dueto increase of labilities.But in the year 2008 -2009 the L.R has increased 5.42 because the C.Lhas decreased. The liquidity ratio is above the standard of 1: 1 ratio. It shows that the liquidityposition 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 theassets employed in the working capital of the firm as to run the day to day operations of the firmwhich 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 Ratio 2004 – 2005 437894.00 26352381.81 0.016 2005 – 2006 423298.00 30087971.00 0.014 Babasabpatilfreepptmba.com 58
  • 59. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 2006 – 2007 592576.00 46858833.00 0.012 2007-2008 843910.00 44389218.00 0.019 2008-2009 1039889.00 62495041.00 0.016Diagram: - Ratio 0.02 Return on Assets 0.018 0.016 0.014 0.012 0.01 Ratio 0.008 0.006 0.004 0.002 0 2004-05 2005-06 2006-07 2007-08 2008-09 YearINTERPRETATION:- The Returns on current assets was 0.016 in the year 2004-2005 and itdecreased to 0.12 in the year 2006-2007. It further increased to 0.019 in the year 2007-2008 andfurther decreased 0.016 in the year 2008-2009 .It shows that profit will increase then assetturnover ratio will decline then C.A will increase but in the year 2007-2008 asset ratio wasincreased 0.19 because C.A has fall that year. Company has profit transferred to the reserve andsurplus Account shown in balance sheet..6. Current Asset Ratio:-Concept: - This ratio measures sales per rupee of investment in current assets. This ratiomeasures the efficiency with which current assets are employed a high ratio indicates a highdegree 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 Ratio Asset 2004 – 2005 102199181.00 19967762.36 5.11 time 2005 – 2006 132858985.00 28220176.41 4.70 time Babasabpatilfreepptmba.com 59
  • 60. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 timeDiagram: - Ratio 5.6 5.4 5.2 C.A.R 5 4.8 Ratio 4.6 4.4 4.2 4 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 YearINTERPRETATION:- The current asset ratio was 5.11 times in the year 2004-2005 and 4.70 inthe year 2005-06 and 4.46 in the year 2006-2007 it was decreased. It further increased to 4.48 inthe year 2007-08 & 5.35 in the year 2008-2009. It shows that the current assets are not utilizedproperly.7 .Debtors Turnover Ratio:-Concept: - Debtors are expected to be converted into cash over a short period of time andtherefore are included in current assets. It shows how many times debtors are converted into cashin a year.Debtors Turnover Ratio = Net credit sales Average Debtors Year Credit sales Average Debtors Ratio Babasabpatilfreepptmba.com 60
  • 61. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 timesDiagram: - Ratio 5.8 5.6 5.4 Debtors 5.2 5 Ratio 4.8 4.6 4.4 4.2 2004-05 2005-06 2006-07 2007-08 2008-09 YearINTERPRETATION:- The debtor’s turnover ratio was very less in the year 2006-07 at 4.72times, but them it has increased to 5.19, 5.66 times in the year 2007-08 and 2008-09. This showsthat 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 andaverage trade creditors and accounts payable. The ratio indicates the velocity with which thecreditors 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 Babasabpatilfreepptmba.com 61
  • 62. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 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 timesDiagram: - Ratio 1.18 1.17 1.16 creditor 1.15 1.14 Ratio 1.13 1.12 1.11 1.1 1.09 2004-05 2005-06 2006-07 2007-08 2008-09 Ye ar INTERPRETATION:- The creditors turnover ratio was 1.17 times in the year 2004-05 & itdecreased to 1.13 times in the year 2006-2007 but creditor turnover will be remain same twoyear 2005-06 and 2006-07.Thean it was again declined 1.12 in the Year 2007-08. But it wasremain same in the year 2007-08 and 2008-09. Generally lower the ratio better is the liquidityposition of the firm and vice versa9. Net Profit Ratio:- Net profit ratio indicates the relation ship between net profit & sales .It isalso 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 % Babasabpatilfreepptmba.com 62
  • 63. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 2008-2009 1039889.00 286246257.00 0.36 %Diagram: Ratio 0.5 0.45 0.4 0.35 0.3 profit 0.25 Ratio 0.2 0.15 0.1 0.05 0 2004-05 2005-06 2006-07 2007-08 2008-09 YearINTERPRETATION:- The Net profit of the company 0.43% in the year 2004-05,0.32 in theyear 2005-06 , 0.35 in the year 2006-07 ,0.36 in the year 2008-09. Net profit ratio was show thenet profit after tax in the year 437894 in 04-05 but it was fall in the year 2005-2006 there for netprofit 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 Babasabpatilfreepptmba.com 63
  • 64. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 2006 – 2007 30650881.00 6297773.00 4.87 2007-2008 25230306.00 7141683.00 3.53 2008-2009 43831794.00 8181572.00 5.36Diagram: Ratio 6 5 4 Debt 3 Ratio 2 1 0 2004-05 2005-06 2006-07 2007-08 2008-09 YearINTERPRETATION:- In The year 2004 -2005 debt equity ratio was 5.19 and 3.59 ,4.87 in theyear 2005-06 and 2006-07 .in the year 2005 debt equity ratio fall because shareholder fund wasincreased. But long term borrowing slow increasing .But in the year debt ratio has decreased 3.53in the year 2007-08.but in the year 2008-09 the debt equity ratio has increased 5.36. Becauselong 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 Ratio Capital 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 Babasabpatilfreepptmba.com 64
  • 65. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD 2007-2008 221246824.00 32265850.00 6.86 TIME 2008-2009 286246257.00 50967874.00 5.62 TIME Diagram: Ratio 8.00 7.00 6.00 5.00 W.C 4.00 Ratio 3.00 2.00 1.00 0.00 2004-05 2005-06 2006-07 2007-08 2008-09 Year 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 2004-05Particular 31-03-2005 31-03-2004 Increase Decrease ((Sources) (Application)Current AssetSundry debtorso/s more than 6 month Nil - -o/s less than 6 month 25402556.11 12757833.79 12644722.32Cash & Bank BalanceCash in hand 322305.70 119298.12 203007.58Balance with bank 0.00 - - Babasabpatilfreepptmba.com 65
  • 66. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDLoans & AdvanceMargin against Bank 600000.00 650000.00 - 50000.00guaranteeAccrued interest on 16250.00 16250.00 0.00 0.00Margin MoneyTax deducted at source 11270.00 39761.00 - 28491.00 Total 26352381.81 13583142.91 12769238.90 -Current LiabilitiesSundry 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 6122630.12 11636347.63 - 5513717.51 TotalNetworking Capital(Current Asset – 20229751.69 1946795.28 18282956.41Current Liability) Statement of changes in working Capital for the year 2005-06 Particular 31-03-06 31-03-05 Increase Decrease Current Asset Sundry debtors o/s more than 6 month - - Others 28981646.00 25402556.11 3579089.89 - Cash & Bank Balance Cash in hand 151478.00 322306.00 - 170828.00 Balance with schedule bank In Current A/C - - - - In Fixed Deposit 600000.00 600000.00 0.00 0.00 Babasabpatilfreepptmba.com 66
  • 67. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Loans & Advance Unsecured considered 49243.00 16250.00 32993.00 - goods, subject to recover advance recover in cash or kind or value. 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 - Provisions Provisions for taxation 527500.00 233500.00 294000.00 - Provisions for F.B.T 34590.00 - Total 6843164.00 6122630.12 720533.88 - Networking Capital (Current Asset – 23244807.00 20229751.69 3015055.31 - Current Liability)Statement of changes in working Capital for the year 2006-07Particular 31-03-2007 31-03-2006 Increase DecreaseCurrent AssetSundry debtorso/s more than 6 month 833104.00 - 833104.00 -Others 42790924.00 28981646.00 13809278.0 - 0Cash & BankBalanceCash in hand 125254.00 151478.00 - 26224.00Balance with Babasabpatilfreepptmba.com 67
  • 68. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDschedule bankIn Current A/C - -In Fixed Deposit 600000.00 600000.00 0.00 0.00Loans & AdvanceUnsecured considered 182081.00 49243.00 132838.00 -goods, subject torecover advancerecover in cash or kindor value.Sundry Advances 1331945.00 - 1331945.00 -T.D.S & Income Tax 995525.00 305604.00 689921.00 -paidTotal 46858833.00 30087971.0 16770862.0 - 0 0Current LiabilitiesSundry 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 -Networking Capital(Current Asset – 36879727.0 23244807.0 13634920.0 -Current Liability) 0 0 0Statement of changes in working Capital for the year 2007-08Particular 31-03-2008 31-03-2007 Increase DecreaseCurrent AssetSundry debtorso/s more than 6 month 386945.00 833104.00 - 446159.00 Babasabpatilfreepptmba.com 68
  • 69. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDOthers 41158296.00 42790924.00 - 1632628.00Cash & Bank BalanceCash in hand 95663.00 125254.00 - 29591.00Balance withschedule bankIn Current A/C - -In Fixed Deposit 600000.00 600000.00 0.00 0.00Loans & AdvanceUnsecured considered 276894.00 182081.00 94813.00 -goods, subject torecover advancerecover in cash or kindor value.Sundry Advances 431945.00 1331945.00 - 900000.00T.D.S & Income Tax 1439475.00 995525.00 443950.00 -paidTotal 44389218.0 46858833.00 - 2469615.00 0Current LiabilitiesSundry creditors 9854397.00 8090866.00 1763531.0 - 0Other Liabilities 801881.00 891150.00 - 89269.00ProvisionsProvisions for taxation 1362500.00 927500.00 435000.00 -Provisions for F.B.T 104590.00 69590.00 35000.00 -Total 12123368.0 9979106.00 2144262.0 - 0 0Networking Capital(Current Asset – 32265850.0 36879727.0 - 4613877.00Current Liability) 0 0Provisional Statement of changes in working Capital for the year 2008-09 Babasabpatilfreepptmba.com 69
  • 70. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDParticular 31-03-2009 31-03-2008 Increase DecreaseCurrent AssetSundry debtorso/s more than 6 month 378114.00 386945.00 - 8831.00Others 59110455.00 41158296.00 17952159.0 - 0Cash & BankBalanceCash in hand 64627.00 95663.00 - 31036.00Balance withschedule bankIn Current A/C - - - -In Fixed Deposit 600000.00 600000.00 0.00 0.00Loans & AdvanceUnsecured considered 320425.00 276894.00 43531.00 -goods, subject torecover advancerecover in cash orkind or value.Sundry Advances 431945.00 431945.00 0.00 0.00T.D.S & Income Tax 1589475.00 1439475.00 150000.00 -paidTotal 62495041.00 44389218.0 18105823.0 - 0 0Current LiabilitiesSundry creditors 8916827.00 9854397.00 - 937570.00Other Liabilities 418250.00 801881.00 - 383631.00ProvisionsProvisions for 2012500.00 1362500.00 650000.00 -taxationProvisions for F.B.T 179590.00 104590.00 75000.00 -Total 11527167.00 12123368.0 - 596201.00 0Networking Capital(Current Asset – 50967874.0 32265850.0 18702024.0 - Babasabpatilfreepptmba.com 70
  • 71. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDCurrent Liability) 0 0 0 The working of the company should be positive. It should not be negative. In theyear 2004-2005 Rs. 20229751.69 and in the year 2005-2006 Rs. 23244807.00 the workingcapital has increased and 2006-2007, Rs.36879727.00 the working capital has increased but inthe year 2007-2008 Rs.32265850.00 the working capital has decrased.But in the year 2008-2009the working capital of Shree dayal tours & travels Pvt Ltd has again increased Rs.5067874.00The Shree Dayal Tours & Travels Pvt Ltd working capital has incrasesed which is favorableposition to the company. It clearly shows that the Shree Dayal Tours & Travels Pvt Ltd hasprofit orient company. So it was not facing shortage of working capital in initial years. So it hadto increase its working capital to stand in the business world.Then again in the year2008-2009 the Shree Dayal Tours & Travels Pvt Ltd Net WorkingCapital has increased Rs.50967874.00, which is a very positive sign of prosperity and it, willhelp to the Shree Dayal Tours & Travels Pvt Ltd sustain its expansion programs.Conclusion The Working Capital Management contributes much in the over all managementof the organization affairs, efficiency of organization operations depend on how it manages itsshort term business dealings. Working Capital management contributes for the firm efficiency aswell as the finance manager is proper utilizing the available wealth and maintaining the requiredliquidity. Babasabpatilfreepptmba.com 71
  • 72. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Babasabpatilfreepptmba.com 72
  • 73. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD FINDINGS, SUGGESTION AND CONCLUSIONFINDINGS:-  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. Babasabpatilfreepptmba.com 73
  • 74. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTDSUGGESIONS: -  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. Babasabpatilfreepptmba.com 74
  • 75. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Conclusion: - After going through the different aspects of the industry departments and the awards ithas received in different fields. There is good relationship between the directors and employee.The management concerned about employees complete health and wealth. Working capital maybe regarded as lifeblood of a business. Its effective provision can do much to ensure the successof a business Today working capital is considered to be an important tool for progress. Working capitalmanagement techniques are playing significant role in assisting the management for decisionmaking. The study of working capital management at Shree Dayal Tours & Travels Pvt Ltd Isfound to be very effective. The working capital contains the management of Cash, Debtors, andcreditors. The Shree Dayal tours and travels Pvt Ltd has profit oriented company .The profit ofthe company will be increases every year .The company has able to the repay the amount of thecreditor. The company has more working capital and also sale has increases year to year .Thecompany current ratio has above the standard current ratio i.e. 2:1 but company current ratio isabove 3:1.The Company has financially soundness. . Babasabpatilfreepptmba.com 75
  • 76. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD  Financial Statement Babasabpatilfreepptmba.com 76
  • 77. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD FINANCIAL STATEMENT 2008-2009 PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2009 As At Particulars 31.03.2009 SCHEDULE SOURCES OF FUNDS SHAREHOLDERS FUNDS Share capital A 45,00,000.00 Reserves and Surplus B 36,81,572.00 8181572.00 Share Application money Pending allotment Secured Loans C 3,73,46,016.00 Unsecured Loans D 64,85,778.00 Deferred Tax Liability (Refer Note No. 10) - 5,146.00 TOTAL 52,018,512.00 APPLICATIONS OF FUNDS Fixed Assets: E 12,91,998.00 Gross Block 2,67,700.00 Less: Accumulated Depreciation Net Block 10,24,298.00 INVESTMENTS Current Assets, Loans & Advances F 0 Sundry Debtors Cash and bank balances G 5,94,88,569.00 Loans and Advances H 6,64,627.00 I 23,41,845.00 Babasabpatilfreepptmba.com 77
  • 78. WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD Less: Current Liabilities & provisions (A) 62,495,041.00 Current Liabilities Provisions J 93,35,077.00 K 21,92,090.00 NET CURRNT ASSETS (B) 5,09,67,874.0 (A-B) 0 Miscellaneous Expenditure K 26,340.00 ( To the extent not written off or adjusted) TOTAL 5,20,18512.00 Babasabpatilfreepptmba.com 78

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