TABLE OF CONTENT

Chapter Description
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INTRODUCTION. 1.1Introduction about training project. 1.2Meaning of financial analysis 1.3financial analysis system 1.4Generally Accepted Accounting Principles (GAAP)

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OBJECTIVE OF THE PROJECT RESEARCH METHODOLOGY. 3.1Research Process 3.2Sources of data collection 3.3Limitation of study COMPANY PROFILE 4.1Introduction 4.2History of the company 4.3Social responsibility 4.4Group of company 4.5Promoter of the company 4.6Directors of the company 4.7Liberty brands 4.8Objective of the company 4.9National and international awards 4.10Units of Liberty Shoes Ltd. 4.11Organizational structure 4.12Manufacturing process of synthetic shoes in Liberty Shoes Ltd

13-14 15 16 17-18 19 20 21 22 23 24 25 26

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INDUSTRIAL PROFILE 5.1 Indian footwear industry 5.2swot 5.3share in GDP 5.4Competitors 5.5Key production figures of top six footwear companies .

5.10Ten year figure at glance
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27 28 29-31 32 33-36 37 38 39 40 41 42 43 44-47 48-49 50-51 52 53 54 55-58 59-60

ABOUT THE TOPIC 6.1Qualitative Factors - The Company 6.2Qualitative Factors – The Industry 6.3Other Important Sections Found in Financial Filings 6.4Income statement 6.5Purpose of financial analysis 6.6Techniques or methods of financial analysis 6.7Procedure of financial analysis 6.8Cash flow statement 6.9Meaning of Balance Sheet DATA ANALYSIS AND INTERPRETATION 7.1Profit & Loss A/c of 2007 7.2Profit & Loss A/c of 2008 7.3Profit & Loss A/c of 2009 7.4Balance Sheet as at 31th march, 2007 7.5Balance Sheet as at 31th march,2008 7.6Balance Sheet as at 31th march, 2009 FINDING CONCLUSUION LIMITATION SUGGESTION BIBLIPGRAPHY ANNEXURE 13.1Gallosary 2

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61 62-63 64-65 66-67 68 69 70

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71-72 73-74 75-76 77-78 79-80 81 82

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To presents a complex data contained in the financial statement in simple and understandable form. if the financial position of the company is good. 3. Financial analysis is the process of identifying the financial strength and weakness of tiles Finn by property establishing relationship between the item of balance sheet & profit & loss account.FINANCE It is true that money (Finance) plays a very important role in the sphere of business to grow and bring the company position at the top . To classify the item contained in the financial statement in the convenient and rational groups. creditors. there is no doubt that company or industry will grow faster in the existing. investors and other. firm’s owner. Actually the nature of analysis depends upon the parties. Financial analysis can be undertaken by the firm or by outside parties. To make comparison between various groups to draw various conclusions. 2. Feature of Financial Analysis :1. FINANCIAL ANALYSIS The term analysis is methodical classification of data given in the financial statements. 5 .

with the authority to update U. These recorded facts are expressed in the monetary terms. FASB is impressively careful to solicit input from a wide range of constituents and accounting professionals. 2. the SEC empowers the Financial Accounting Standards Board (FASB) . this standard becomes a mandatory part of the total set of accounting standards known as Generally Accepted Accounting Principles (GAAP).S. 6 . TYPES OF FINANCIAL ANALYSIS 1. In the United States. Classification on the basis of material used. nongovernmental organization . But once FASB issues a final standard. In turn. a company that offers its common stock to the public typically needs to file periodic financial reports with the Securities and Exchange Commission (SEC). When considering important rule changes. Classification on the basis of modus operandi.FINANCIAL STATEMENTS Financial statements mean a statement or document which explains necessary financial information about an organization/ company. accounting rules. the financial statements ae prepared on the basis of facts recorded in books. The SEC governs the content of these filings and monitors the accounting profession.an independent.

Significance for Government :- 7 . Significance for Managers. Significance for Investors:3. Significance for Employess:6. Significance for regulatory agency:5. Significance for others parties:7.2. Significance for Creditors:4.On the basis of material used :External analysis :Internal analysis :- On the basis of modus operand :- Horizontal analysis:Vertical analysis:- Significance or importance of Financial Analysis :1.

Limitation of Financial Analysis :Mis lead the users:1. Not useful for planning:Qualitative aspects:Comparison not possible:Wrong judgement:Not helpful in price fixation:Not control on cost:No analysis of losses:- PURPOSE OF FINANCIAL ANALYSIS 1. 7. 2. To know the earning capacity or profitability. To know the financial strength. 2. To know the capability of payment of interest & dividend. 3. 4. 3. 6. 4. To know the solvency. 8 . To make comparative study with other firms. 5. 5.

3. To know the trend of business. 4. Various schedules. Statements are including in the list of financial statements :1.6. P & L appropriation account. Cash flow statement. Profit and loss account. 6. Balance sheet. Explanatory notes given at the end of financial statement. 5. 9 . 2.

Fund flow statements. 2.TECHNIQUES OR METHODS OF FINANCIAL ANALYSIS :1. Trend analysis 3. 4. Comparative Statements. Cash flow statements. 10 . 7. Ratio Analysis. Break even point Analysis . 6. Common size Statements. 5.

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To judge the efficiency of management of the company. To identify the trend of the business of the company. 4. 7. 6. 1. 5. 12 . To makes comparative study with other firms. To measures the financial strength of the company. These statements helps the company in making planning and taking decisions. To measures the solvency of the company. To measures the earning capacity or profitability of the company. 3. To measures the capability of payment of interest and dividend of the company. 2.OBJECTIVE OF THE PROJECT : The financial statements are the soures of information on the basis of which conclusions Are drawn about the profitability and financial position of an organization/ company.

13. 14. To determine the change in financial condition of business.8. To provide useful informations to the management 9. 12. To compare assets & liabilities and find out the any increase or deacrese in above on three different dates. 10. To determine the absolute figure for the last thre years and the absolute changes from one year to another two years and the absolute change in term of percentage. To depict change in cash position from one years to another two years. 13 . To determine the source from where the working capital was obtained & for which purpose it will be used. To spot out strength & weakness of business. 11.

which is collected from the account books of the Liberty Shoes Limited. which is collected is mainly secondary data.RESEARCH METHODOLOGY Research . which is used is as follow :Research problem Here the problem is to analyse the ratio of the company for which we have to conduct the research. 14 . Data. Here the research process . which is done for his particular project is with the help of data collection.

those studies are taken which are concerned with describing the characteristics of a particular 15 . DESCRIPTIVE RESEARCH DESIGN individual or a group. In descriptive research design. EXPERIMENTAL RESEARCH DESIGN In this casual relationships between the variables are tested.Exentive literature survey : Now we have to see that from where the data is being collected on which we have to perform the research. The main purpose of the study is to formulate a problem for more precise investigation. Prepare the research design : Here the research is descriptive research as we to give various description so design are formulated accordingly. Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. RESEARCH DESIGN Research design is a framework or the blue print for conducting the research project. It is also known as hypothesis testing research design. TYPES OF RESEARCH DESIGN • • • Exploratory research design Descriptive research design Experimental research design EXPLORATORY RESEARCH DESIGN It is also termed as formulative research design. It includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data.

The present project is analytical in nature. which is collected for the research is secondary data as I had collected it from the account books of the company. 16 . SOURCES OF DATA Primary data companies of information obtain from employees of this organization. ledger and past records. The main objective of the analytical research design is to define the problem into researchable one and analyse the data according to the purpose. Analysis od data : In this stage of research process the data is made in the tabulated wheather data is adequate or not. questioning. Company has provided me annual reports from 2000-2001 to 2008 to 2009 by the help of which prepared my report. Collection of data : Data. Preparation of report : Finally the report is prepared on the basis of various conclusions drawn. Execution of project : When data is being collected then that the data is used for the execution of the project. Here sampling is done step by step or we can say multistage sampling. Sample size : Here the sample is taken from the companies past records of various accounts. Secondary data :Secondary data companies of annual reports .

question related to problem and data tallied with FM. Analysis : Analysis of various types of data. Special record searching : Special records are maintains by accountants have been made during the studied thoroughly while making this report. 17 . CA & accountants of the company. LIMITATION OF STUDY  The study was conducted in limited areas. statement are also made during the study by using standard formulas.In this project. I have used secondary data which has been collected from following sources: Annual Reports  Books  Internet  Other material and report published by company Questioning : Actually no particulars questionnaire was prepared .

 Scope of study was very wide.  Any biases by the respondents may lead to wrong infer  The time of study was less.  Respondents cannot be force give true response. Employees felt unnecessary burden. 18 .

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The liberty has its domestic branch office at Agra . It talk the extra mile to ensure customer’s satisfaction wprld wide. non – leather shoes . The Liberty has its corporate office . Jaipur .The marketing office is located at Punjab Begh New Delhi. centre ΙΙ . centre ΙΙΙ . sports shoes. leather shoes upper and Hawaii chappals for gents. Liberty is devoted to the customer of the world and they strive hand to keep ture to there motto . centre Ι. By invention of ACS (air circulation system) technology .INTRODUCTION Liberty is leading footwear industry covering brands under its own name. Liberty puram in kutial (karnal) and human Tech. This company is manufacturing leather shoes . The footwear liberty emerged in 1954 in the field of manufacturing and exporting of footwear. Rajpura and Sharanpur. that prevents feet from sweating in hot and humid conditions are more revolutionary step by liberty in footwear market.liberty complex in Ghuraunda (karnal) . 21 . Chennai. ladies and children.”SAPNE AB HUAE APNE”. The major strength of liberty footwear is its strong distribution channel and itas technological advancement. a sole . centre house and human Tech. Delhi. Banglore. Liberty shoes are known for its quality in India and abroad. Jammu. liberty park in karnal city Registered office & human tech. It has its banker state Bank of india specialized commercial branch karnal for enhancement of working capital limits.

Gupta. R. With 50 years of excellence behind it liberty today is amongst the five largest footwear manufacturers of the world.350excutive showrooms andover 6000 multi. Marketed across the globe through 150 distributors . Bansal Ji allowed their vision to cross every barrier and brought in technology to ensure that the feed to the market was of world class. Italy. Liberty 50 years of excellence behind it Liberty today is amongstthe five largest footwear manufacturers of leather footwear of the world with a turnover in excess of U.P.Company was incorporated on 3rd sept.1986 as a public company and obtained the company wof business on 11th March 1988. Gupta & Late Sh. Late Sh.S $100 Million .P.HISTORY OF LIBERTY SHOES LIMITED Like all the enterprises this company too is seeped in history . Firm register office of the companies 22 . quality obsessed nations like France .brand outlets and sold in thousands every day in more than 25 countries including fashion driven. A range that is among the largest in the industry . D. covering virtually every age group and income category. It produce footwear for the entire family and is a trusted name in many households across India and the world. It was on 25 th December 1954 when India was nurturing its growth as a free country those three dreamers in a small town in erstwhile Punjab throughtout of producing an Indian brand of footwear to make a basic necessity available to their countrymen .K. Soon the product and the name become generic to quality footwear in the domestic market and this allowed the company to invest further for enhancing production capacity and cater to international market too. In the domestic market we are one of the most admired footwear brands and hold the largest market share for leather footwear. Late Sh.D.Producing more than 90000 pair of footwear a day .

Company has also set up a joint venture in Russia to manufacture shoes in 1991 under the name of M/S Liberty & Co.leather shoes upper and leather garments. 23 . The company has been set to manufacturer and to sell leather and non. The company shifted its register office from Union Territory of Delhi to Karnal.situated at Delhi . Haryana and New Delhi. with M/S Groky Product & shoes unit Groky City but subsequently the name of venture was changed as “ Liberty & Nino”. Presently company is engage manufacturing leather and nonleather shoes.

From the commencement of commercial period till 31th march 1994 the co. Ethical standards and practices are rigorously brands like Wal-Mart. and use the trademark initially for a period of 5 years and has to royalty of Rs 20 Lac. government official and all those who are outside the Liberty Group. As the promoters are in this line for the last five decades the company has recently launched new product of Hawaii chapels. senior. Reebok. The second direct injection mechinebe installed in march 1994. has been separated on full capacity. Utmpst importance is also given to ensuring a safe. The present over supply in the domestic market is improved due to this inceasing growth rate of demand over the base several years. customer and suppliers. Nike etc. As per the term of agreement company can use this term of agreement co. Is well established in national and global marker. 24 . The Company has commenced commercial production for non. The company has enter into an agreement with one of the group firm M/S Liberty Enterprise for using the established brand name “ Liberty”.soing machine was installed with the capacity of 24000 pairs premium on single shift basis. suppliers.workers. healthy and non discriminatory work environment for all Liberty employees where they are free from harassment of any from supervisor . Fully apprective of the fact that its reputation stems from not just quality products and technological innovations but also from the manner of its dealing with customers. who recognize it as an equal opportunity employers. Initially direct injection.leather shoes on 25th December 1993. intergrity and respect for all those who come in contact with it in course of business.SOCIAL RESPONSIBILITY Liberty conducts its business with honestly. The company has appointed dealer and distributor for marketing its product besides selling through the existing Dealer Company provide 20% to 30% discount rate on the print rate. co. The present Scenario The company markets its product nationally and internationally under the brand “Liberty Co”.

However the final authorities lies with top executive.their views recommendations and suggestion are given due consideration. Before taking any financial decision proper consultation with concerned executive is done. 25 . The group has ambition plan for the future to globalize its brands “Liberty “ and with and in new it has created a distribution network not only in India but also in Europe and in Middle East .Future plan Group has set up this company to expand its exciting capacity by more thantwo times to increase in the market share in national and international market and to meet out the growing demand of its product. which is dedicated to market the group branded products. which is of the strategic nature. The heads of the department have sufficient opportunities for participating in decision making . is to be taken at highest level . Decision making All the decision . The group plans to restructure its separation into integrated shoes manufacturing and market organization. various committees for the formulation of policies for the different functional area have been constituted.

Drawing upon the consideration manufacturing experience of Azin Khodro Group and the business of Liberty group. The fashion accessory and footwear stores have begun operation in Chennai. Meeting the entire demand of the nation. Mumbai. Hyderabad and Pune. to meet the challenge of performance optimization of a car. it is all set to deliver high quality finished products. Liberty Organosys Liberty group for manufacturing acedic acid in India promotes Liberty organosys limited. international market as company has plans of opening 18 more revolution showrooms 26 . Liberty revolution In the elite shopping avenues of fashion capital “Revolution” has begun its walk. The technical details of the project will bwe announced soon.Benglore.Kolkata . These are company managed and owned shopping experience. Liberty plans to build this in a large scale.GROUP OF COMPANY Liberty automotive is a joint venture company promoted by azin khodro group of Iran and project at bawal industrial growth centre on Delhi – Jaipur national highway for manufacturing automotive trim parts. Liberty showrooms enter the outlets where the emphasis is to deliver high fashion to the customer backed by quality service making it a delightful nationally & internationally. Liberty proposesto use methanol carbonization route for manufacturing this organic chemical 60% of the world production is based on technology. Armed with a unique R & D source Liberty automotive is able to offer ideas to create solution and resources.

Like international products at domestic process for one and the opportunity for discerning customer to choose at leisure what would be seen first time in India. It is where Liberty whiteware factory is fast taking shape. A part of Liberty ‘s diversification the investments in the project are to the tune of 10 million Euro and with production plans running ahead of schedule the cash register should soon start ringing well before time at Liberty whiteware Ltd. 27 . Liberty whiteware is all set to introduce to domestic market some very up – market sanitary ware that will be manufactured here. It will come with some obvious adventages. Just 90 minutes away from New Delhi on the national highway 8 that joins the country’s political capital with its business capital frenetic activity is on.Liberty Whiteware Ltd.

He had been associated with shoe industry and with the trade for last 45 years. R. K.P. He initiated the shoe business under the trading cycle “Pal Boot House”. Gupta He was 75 years old. He had been chambers of footwear exports for last 20 years. The company has been promoted by three business persons name as Late Sh. In 1994 he had been involved with Liberty group since than. He was also activating in social.PROMOTERS OF COMPANY The company comes under the public limited companies groups and belongs to “ Liberty Group”. He was also partner in many associated firms. Gupta He has been associated with shoes industry for the last 80 years. Bansal He was 67 years old and the promoter’s director of the company. P. Late Sh. He had been associated with the shoe industry since the age of 16 years.d. chairman and the managing director of the company. the president of all India 28 . He was also chairman of joint venture set up in Russia by the company. Late Sh. D. He had the knowledge of international markets with his ability in the marketing company is capable of introducing “Liberty” products in most advanced countries such as Italy and America.

Sidharth Sanghi (Non Executive Independent Director )  Mr.Executive Director)  Mr.K. Arya (Non Executive Independent Director)  Mr. Adarsh Gupta (Executive Director )  Mr.K. Adesh Gupta (CEO. S. Vivek Bansal (Non Executive Independent Director)  Mr.BOARD OF DIRECTORS  Mr. Amitabh Taneja (Independent Director)  Mr. Raghu Dayal ( Non Executive Independent Director)  Mr. Prem Chand Grag (Non Executive Independent Director)  Mr. S. Goel (Independent Executive Director)  Mr. Sunil Bansal (Non Executive Director)  Mr. Munish Kakra (Vice President & Company Secretary) 29 . Shammi Bansal (Executive Director)  Mr.

Be it formal or casual. It pampers its customers to keep pace with global footwear fashion trend & by walking that extra mile which is why. When the sun blisters and the heat strokes. 30 . at office or at the beach. But why limit the pleasure to summers? Here’s one brand of sandals that stays cozy and comfy all year round.LIBRTY BRAND Libety has developed a spectrum of 10 exclusive brands. In fairy-tale colors and designs. The range imbibes the spirit of fun and is trendy to the core. Perfect for the hot summer days. Airy. each of which have been given tha t extra edge to enter to a specific target group. they keep the feet cool and comfortable. This family brand is style personified with something for every need. design and comfort. introducing new decisions that redefines styles and comfort. light and comfortable with lycra uppers and no laces. liberty is busy fashioning the look of the future footwear .  FOOTFUN Something for those little feet as they learn to walk. Liberty has something for every income bracket & every age group. a conference or a soiree Liberty fits in effortlessly. A part from the existing brands. Today the new range from liberty is all about style .  COOLERS They’re cool and they’re hot. They’re hap and they’re happening. special care has been taken to make sure that the outlets design meets the specific needs taste of the target groups.

 FORTUNE Genuine leather uppers and extra light poly soles help complete the power dressing in men with élan and panache. the style and ease that forces the world to take notice. soles with steel toe 31 . A happening range of sports shoes in far out colors that provides the perfect footnote to a head-turning presence. A range of stunning brogues and smart lace ups that will be noticed and talked about every step of the way. trendy and with it. FORCE-10 The flair. GLIDERS Cool and comfortable. SENORITA Walk tall.    WARRIOR Smart. stylish professional gear crafted from leather uppers and direct injection P. styles and comfortable heels.U. Perfect for conquering the neighborhoods in designs that are the latest rage the world over. TIPTOPP Strappy. walk light and walk with amazing style. laughing and loving every moment of life. Rediscover the little girl that lurks not far behind in every woman. And colors that become the envy of all and sundry. Unmistakably a part of Generation You.

To master the art of being confident and sure-footed on slippery grounds and danger ones. FREEDOM  A new introduction in the safety footwear segment in Nit rile PVC material. Safety footwear for industrial use. DETAILED DESCRIPTION OF POPULAR BRANDS NAME BRAND Force -10 Windsor Fortune Ricardo Gliders Tip –Top Senorita OF DETAILS Family force Liberty castte Good luck Recoras Fly in air Fun children Seniority TYPES Sports Leather Leather shoe Leather shoe Leather shoe Canvas shoe MADE OF & Canvas Leather Leather Leather Canvas & Canvas leather Leather FOR THEM Gents Gents Gents Gents Children gents & Children Ladies & for Canvas leather Bellerion sandal 32 . style and comfort which make it ideal for men who take every challenge effortlessly in their stride. fire retardant and shock free product in economic range.caps and offering the widest range of styles in safety shoes. offering customers with waterproof.  WINDSOR The premium is on lightness.

buy and sell market install summary and carry on business as manufacture dealer in all kinds of footwear.extract.  To carry on business of manufacturing and and repairing and wholesale dealers in all types of footwear and accessories of footwear(such as heels.recover.retain utilize .refine. leather manufactures and dealers in all kinds of water proof articles  To prepare . 33 .transport.  To deal in raw hinds and skins. process. cost . finish import. component and accessories. PCC.  To import the technical knowhow of foot wear and PVC technology. puckers and hand grouse and other product of leather). soles .Coolers Geo Sports Foot fun Feel coolness Build sportsmanship - Slippers sandals Leather Sports shoe Leather Sports shoe Canvas Gents Gents & ladies Children OBJECTIVE OF THE COMPANY The main objective to be pursued by the company on its incorporation as set on memorandum of association as under: To work as buying selling agent with or without trademark for finished product.

NATIONAL AND INTERNATIONAL AWARDS The liberty group has won several prestigious national and international awards. Belgium 1988.Jakarta in 1982. 34 . 1994. which are as under :  Arch of Europe intertnational gold star.  Europe award for pair in 1987.  International award for ggd quality.  International asian award .Brussels.

UNITS OF LIBERTY SHOES LIMITED REDGISTERED OFFICE & HUMAN TECH CENTRE -1 LIBERTYPURAM.  Haryana government export award in 1978-1979. KARNAL -132114 (HARYANA) 35 .O. 13TH MILE STONE. P. KARNAL ROAD KUTAIL. G. National award from government in 1981 – 1982.  Certificate of merit as national export award from government of India in 1989.T.  National award for best export performance in leather garmants in 1987 – 1988. DIST.BASTARA. Udyog rattan by government of India.  Leather export promotion council merit award for outstanding performance for 1976 to 1982.

DISTT. KARNAL -132001 (HARYANA) HUMAN TECH. CALCUTTA. CHARBA. HYDRABAD. LIBERTY ROAD.CORPORATE OFFICE & HUMAN TECH CENTRE -11 LIBERTY COMPLEX. P. CENTRE -111 LIBERTY PARK . VIKAS NAGAR. KARNAL HUMAN TECH. SAHARANPUR. GHARAUNDA. DISTT. AGRA. JAMMU . SAHASPUR. G. JAIPUR. BANGLORE. KARNAL ROAD. DEHRAHUN (UTTRANCHAL) BRANCHES DELHI. V1LL. 36 . MUMBAI.O.T. 17TH MILE STONE. CENTRE -1V LANGA ROAD . CHENNAI. RAJPURA.

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Indian footwear industry:Indian leather industry is the core strength of the Indian footwear industry. It is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China. Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under license in India. Besides, many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. While leather shoes and uppers are produced in medium to large-scale units, the sandals and chappals are produced in the household and cottage sector. The industry is poised for adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. India produces more of gent’s footwear while the world’s major production is in ladies footwear. In the case of chapels and sandals, use of nonleather material is prevalent in the domestic market. Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. With changing lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. There are already many new domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market. The footwear sector has matured from the level of manual footwear manufacturing methods to automated footwear manufacturing systems. Many units are equipped with Inhouse Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent

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facilities for Physical and Chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA, UK and PFI, Germany. One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs, and in accordance with the latest trends. India, has gained international prominence in the area of Colours & Leather Texture forecasting through its outstanding success in MODEUROP. Design and Retail information is regularly made available to footwear manufacturers to help them suitably address the season's requirement.

The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits.Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labor, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced footwear segments. Resource strength of India in the form of materials and skilled manpower is a comparative advantage for the country.

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Indian Scenario:

The Footwear Industry is a significant chunk of the Leather industry in India. India ranks second among the footwear producing countries next to China. The industry is labor intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large-scale units, the sandals and chappals are produced in the household and cottage sector. India produces more of gents footwear while the world’s major production is inladies footwear. In the case of chappals and sandals, use of non-leather material is used tomanufacture these in the domestic market.Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under license in India. Besides, many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. The industry is on the edge of adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. The Indian Footwear Industry is all set for leveraging its strengths towards maximizing benefits. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low-cost labor, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced footwear segments. India has the competitive advantage over other countries in the form of materials and skilled manpower The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to2011. Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market.By products, the Indian footwear market is dominated by casual footwear market. As footwear retailing in

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as good as anywhere in the world (including Europe). India is now a major supplier of leather footwear to world markets and has the potential to rival China in the future (60% of Chinese exports are synthetic shoes). India is often referred to as the sleeping giant in footwear terms. The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production. second only to China. Marks and Spencer (UK).India remains focused on men's shoes. SWOT Analysis of Indian Footwear Industry:- STRENGTHS: 41 .800 million pairs. abundant raw material. Lloyd (Germany). there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment. The bulk of production is in men’s leather shoes and leather uppers for both men and ladies. Clarks (UK). modern shoe making plants. and has huge consumption market. It has an installed capacity of 1. It makes for some up market brands including Florsheim (US). It has over 100 fully mechanized.

Less number of organised product manufacturers. Competition among units vying for export orders leading to undercutting. Lack of modern finishing facilities for leather. Uneconomical size of manufacturing units. 42 • • • • • • • • • • • • • . Horizontal growth of tanneries. Non availability of quality footwear components Lack of fresh investment in the sector.• • • • Existence of more than sufficient productive capacity in tanning. Low level of labour productivity due to inadequate formal training / unskilled labour. Comfortable availability of raw materials and other inputs. Highly unhygienic environment. and the integration of developed technology is very slow. Tax incentives on machinery by Government. Difficulties in accessing to testing. • • • • • • WEAKNESSES: • Low level of modernisation and upgradation of technology. Exporter-friendly government policies. Environmental problems. Exposure to export markets. designing. Managements with business background become quality and environment conscious. Massive institutional support for technical services. Little brand image. Easy availability of low cost of labour. designing and technical services. manpower development and marketing. Presence of qualified leather technologists in the field. Unawareness of international standards by many players as maximum number of leather industries are SMEs. Well-established linkages with buyers in EU and USA.

Inconsistent quality high rejection rate Low machine and material productivity. Lack of awareness about consistent in plant training and retraining. hand crafting etc. goods etc. 43 . Growing fashion consciousness globally. Growing international and domestic markets.• Poor labour productivity. country & company profiles. strengths in classic shoe manufacturing. Use of modern technology Exhibit strengths in manufacturing.structure for exports • • • OPPORTUNITIES: • Abundant scope to supply finished leather to multinationals setting up shop in India.There is lot of scope for diversification into other products. namely. Exposure to newer markets through Fairs/ BSMs Retain customers through quality supplies and timely deliveries Aim to present the customer with new designs. De-reservation of the footwear sector. • • • • • • • • • • THREATS: • Entry of multinationals in domestic market. Lack of quality job work units Delayed deliveries Weak support infra. leather garments. infrastructure. for example. Use of information technology and decision support software to help eliminate the length of the production cycle for different products Product diversification .

which are more competitive than India. Limited scope for mobilising funds through private placements and public issues. Indonesia. Improving quality to adapt the stricter international standards.(The performance of global competitors in leather and leather products indicates that there are at least 5 countries viz. China. • • • 44 . as many businesses are family-owned. Vietnam and Brazil. Fast changing fashion trends are difficult to adapt for the Indian leather industries.tariff barriers .• Stiff competition from other countries. Thailand.Developing countries are resorting to more and more non – tariff barriers indirectly.) • Non.

The share of different sectors of the economy in India's GDP is as follows: Agriculture . GDP is a number that expresses the worth of the output of a country in local currency. China. UK. Japan. According to the data released for the year 2006-2007. thereby assuring that the final monetary value of everything that is created in a country is represented in the GDP.. The government has set a target of an average annual GDP growth of 9 per cent for the Eleventh Five Year Plan. From 10% of the Indian GDP in2007. Germany. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time. Spain. GDP tries to capture all final goods and services that are produced within the political and geographical frontiers of the country. Brazil and Russia.. At the time of independence agriculture occupied the major share of GDP while the contribution of services was relatively very less. Canada.. and Services . Industry .26. India has around 3% share in the global trade of leather in comparison to Chinas 20%. The fact that the service sector now accounts for more than half the GDP is a milestone in India's economic history and takes it closer to the fundamentals of a developed economy. it became 12% of GDP in 2009..55.18.Share in GDP of footwear industry:India's GDP recently crossed the trillion-dollar mark for the first time and with this India has joined the elite club of 12 countries with a trillion dollar economy. 45 ..5 per cent. India's GDP grew at an impressive 9.4 per cent.1 per cent. France. . Italy.. In order to . The GDP or Gross Domestic Product is the primary indicator used to gauge the health of a country's economy. usually a year or a quarter of a year. The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. GDP is calculated for a specific period of time. Footwear Market in India 2010 .2 per cent. . Countries that have breached trillion-dollar GDP level in the past are he US. The target looks achievable as all the macroeconomic fundamentals are strong and the impressive growth rate of Indian GDP looks all set to continue.

COMPETITORS 46 .

47 .Companies Profile: ADIDAS:Adidas ltd is a German sports apparel manufacturer and part of the Adidas group.

and Rockport. Power and Ambassador. It has more than 170 subsidiaries guarantee marketplace presence for Adidas products around the world. marketing and distribution of sports and fitness products including footwear. as well as footwear and apparel for nonathletic use. The company also markets apparel under the brand names of North Star. Taylor Made-Adidas golf company. leather and plastic footwear. Types of footwear offered by the company include rubber. Bata India is a manufacturer of footwear. Each of these product categories features product offerings for both men and women that are designed for specific consumer groups. Company’s revenue for2006 was listed at about US $ 13. and Classic. It is the only Indian leather shoe brand that occupies fifth ranking among the top shoes manufacturing companies in the world. Reebok has operations in the UK. supplying and exporting of the footwear’s.625 billion and the 2007 figure was listed about $ 15. Performance. The acquisition of Reebok by Adidas-Salomon was completed in January 2006. Bata India has five manufacturing plants and acquires its leather from two tanneries in Mokamehghat (Bihar) and Batanagar. Bata: Bata industries is a specialized division of the world’s largest shoe manufacturer: the Bata shoe Organization (BSO). Bata India Limited is the largest footwear retailer in India.6 billion. is a leading leather shoes brand and is engaged in the manufacturing. Liberty: Liberty shoes ltd. Massachusetts. Bata industries has operations and production facilities in most of the countries worldwide. apparel and accessories. Reebok: Reebok specializes in the design. Adidas is the largest sportswear manufacturer in Europe and the second largest sportswear manufacturer in the world.which consist of Reebok sportswear company. It is headquartered in canton. The company has three main product categories:Rbk. Europe and in various and in various Asian countries. It is headquartered in West 48 . canvas.

Relaxo has the capacity to manufacture over 100 million pairs. India Relaxo: Relaxo entered into footwear industry in 1976. school and leather shoes. It started off with the manufacturing of Hawaii slippers and subsequently diversified into manufacturing casuals.Bengal. joggers. It has the customer base of around 100 millio KEY FINANCIAL FIGURE OF TOP SIX FOOTWEAR COMPANIES FOR THE YEAR 2007 -2008 49 . per annum.

LIBERTY Liberty Shoes Ltd.5 6.67 50 .47 - 9.38 22. In Cr.55 179 .55 17. MIRZA Tanners Ltd.65 3.00 167.31 60.66 6.59 44.25 - 4.65 3.63 9.26 51.36 1.5 0 25.98 99.51 4.0 0 32 .44 5. 65 32.15 18.02 20.00 86.2 5 21 . SARUP Tunners Ltd.00 7.2 74.33 ) 72.45 15.1 5 15 .00 4.0 0 458. 15 60.94 16.00 (53.00 28.77 17.80 78.3 0 6. 50 5.00 42.72 40.00 0.84 15.54 64.61 2.00 8.13 12.25 52. SUPER HOUSE Super House Ltd.47 Dividend (%) EPS (%) Return on Net Worth (%) Offer price of last issue Closing price (%) 52 week Gain/ Loss BATA Bata India Ltd. RELAXO Relaxo Footwear Ltd.39 2.00 62.84 3.12 4.COMPANY NAME Paid up Eq.84 60.44 15.95 1.17 6.04 61. 05 18.) (%) 47.42 13. 64.56 30. share capital Promoters contribution (%) Net profit & loss after tax its margin(%) (Rs.00 10.00 51.52 3.00 75.00 14. 00 76 . 50 24 .

FINANCIAL ANALYSIS 51 .

Actually the nature of analysis depends upon the parties. investors and other. as shown in a series of statements. 52 .The term analysis is methodical classification of data given in the financial statements. arranging them in groups according to certain circumstances. creditors. 3.” According to John N. and then presenting them in a convenient and easily read and understandable form. To classify the item contained in the financial statement in the convenient and rational groups. Myres Feature of Financial Analysis :- 1. as disclosed by a single set of statements and a study of the trends of these factors.” According to Finney and Miller “Financial statement analysis is largely a study of relationship among the various financial factors in a business. Financial analysis is the process of identifying the financial strength and weakness of tiles Finn by property establishing relationship between the item of balance sheet & profit & loss account. To presents a complex data contained in the financial statement in simple and understandable form. 2. Financial analysis can be undertaken by the firm or by outside parties. “ Financial analysis consists in separating facts according to some definite plan. firm’s owner. To make comparison between various groups to draw various conclusions.

creditors. These outside parties potential investors. government agencies & general public. On the basis of material used :- External analysis :- Outsiders. Classification on the basis of material used. who don’t have access to the detailed internal accounting record of business firm.TYPES OF FINANCIAL ANALYSIS 3. Classification on the basis of modus operandi. do this analysis. 4. 53 . Internal analysis :- The analysis conducted by person who has access to the internal accounting records of a business firm is known as internal analysis.

The figures of this types of analysisare presented horizontally over a number of columns. It is also known as “ Static analysis “ 54 . of financial data of a company for several years. This types of analysis is also called “ dynamic analysis”.On the basis of modus operand :- Horizontal analysis:Horizontal analysis refers to the comparison. Vertical analysis:This analysis refers to the study of relationship of the various items in the financial statements of one accounting period.

Significance for Creditors:In the ongoing relationship between suppliers and a firm financaial statement can play several roles consider the relationship between a firm and the suppliers to its loan capital. A Business Plan takes most of the guess work out of Business Strategy and Control through solid Financial analysis. 55 . Their interest is in the future growth of a company's stock price and/or the likelihood of the company paying dividends to the owner. Significance for Investors:Investors are generally considered one of the primary users of financial statements.Planning and Control are the two most important ingredients to a Successful Business.Significance or importance of Financial Analysis :- 8. telling you where changes in your Plan are necessary. Financial Data Analysis and Management are vitally important to running a successful business. They use the financial statements to determine the current profitability of the firm and attempt to predict its future profitability.e. Significance for Managers. Because of this. 9.financial statement typically are an important items. Financial Data provides a way to gauge where you are in your Strategic Plan. 10.g a bank in the initial loan granting stageof the relationship.

Significance for Government :Various ministries and department have interest in the firm’s payments of taxes. and other special interest lobbing groups approach corpartionfor detail relating to their financial and other affairs. Also seet the enchment of lawfor the industry and the provision of socialservice to the public. intervention e. Significance for Employess:- They are the part of the orgnisation and feel that their effort contributed to the firm profitthey would therefor prefers togive bonusesnas salary inceresesthis also increase expensies of the firm. 14.backed loan agreement to a finically distressed firm.11.g determine wheather to provide a govt.value added tax collection. diverse party such as academic .g for income tax.environmental protection organization. Significance for others parties:- The set of party that demand for financial analysis information of corporation is open ended . The govet may also want to ensure that the firm complies with the law on for example wages payments and employees benefit. Govt.sales tax . Significance for regulatory agency:- The demand by these bodies can arise in diverse set of areas such as revenue raising e. 13. 12. 56 .

If their preparation is wrong. therefore. Mis lead the users:- The accuracy of financial information largely depends on how accurately financial statements are prepared. the information derived from such statements may not be effective in corporate planning. the information obtained from their analysis will also be wrong which may mislead the user in making decisions.Qualitative aspects:- Then financial statement analysis provides only quantitative information about the company's financial affairs. management's skills and so on which are also equally important for decision making. However. 10. 9. 57 . Comparison not possible:- The financial statements are based on historical data. it fails to provide qualitative information such as management labour relation. 8.Not useful for planning:- Since financial statements are prepared by using historical financial data. customer's satisfaction. if the previous situation does not prevail. it should be carefully performed as it suffers from a number of the following limitations.Limitation of Financial Analysis :lthough analysis of financial statement is essential to obtain relevant information for making several decisions and formulating corporate plans and policies. Therefore comparativeanalysis of financial statements of different years can not be done as inflation distorts the view presented by the statements of different years.

biased attitude of the analyst may also lead to wrong judgement and conclusion. 7.idle palnt and equipment. 15. Wrong judgement:- The skills used in the analysis without adequate knowledge of the subject matter may lead to negative direction .idle time.5. Not control on cost:It does not provide for a proper control of materials and suppliers. Similarly. 6.Not helpful in price fixation:In financial accounting the cost is not available as an aid in determining prices of the product services production order and product line. No analysis of losses:It does not provided the complete analysis of lossesdue to defective material . In other words no distinction is made between avoidable and unavoidable wastage. 58 .labours and overheads.wages.

PURPOSE OF FINANCIAL ANALYSIS The purpose os analysis of financial statements depends upon the need of a person who analysis these statements. To know the trend of business. These needs may be :7. To know the earning capacity or profitability. To know the solvency. 11. 10. To make comparative study with other firms. 12. 9. 59 . To know the capability of payment of interest & dividend. 8. To know the financial strength..

Various schedules. INCOME STATEMENT OR PROFIT &LOSS ACCOUNT It ia an important financial statement. P & L appropriation account. 12. It is a statement of revenues earned and the expenses incurred. 10. 60 . 8. Balance sheet. Profit and loss account. Explanatory notes given at the end of financial statement.Following statements are including in the list of financial statements :7. Cash flow statement. 9. 11.

To ascertain the cost of goods sold and establishing its relationship with sales. gross profit. gross loss/ net profit and net loss. 3. 2. 61 . To ascertain the profitability of the business by establishing relationship of gross profit and net profit with sales. To ascertain the cost of production.NEED OF INCOME STATEMENT 1.

Balance sheet shows the financial position of a business on going concern value. CHARACTERISTIC OF BALANCE SHEET:- 1. Balance sheet has two columns. 2. It is prepared at the end of accounting period. 62 . Balance sheet is prepared on a particular date and it shows the financial position of business on that very particular date. 3.POSITION STATEMENT OR BALANCE SHEET Balance sheet is a statement which presents the financial position of a business on a particular date. It tells the relationship between Assets and Liabilities and the total of both the sides are equal.

63 . sources and uses of cash only are taken in to account and even liquid assets like debtors and bill receivable are excluded .fees .CASH FLOW STATEMENT: A cash flow statement is a statement which summarizes the sources of cash inflows and uses of cash outflows of a business enterprise during a particular period of time. 1. Examples of cash flows arising operating activities are: • • • • Cash receipts from sale of goods and rendering of services. since the idea of preparing this statements to sumarise the impact of various transaction on the cash position of the firm those transctions which result in increase of cash position are termed as cash inflows and those which result in decrease of cash position are the sources of cash outflows. Cash payments to and on behlf of employees.inshort . it may be said that a cash flow statement shows the sources of cash receipts and the purpose of which payments are made . As such they include cash flows from those tranctions and events which enter into the ascertainment of net profit or loss of the enterprise. investing and financial activities. Cash receipts from royalities . commissions and other revenue. Classification of Cash flows : According to as-3 (Revised) A cash flow statement should be presented in manner that it report inflows andoutflows of cash by classigying them into three categories manely operating . Cash flow from Operating activitites : Operating activities are the main revenue genratting activities of an enterprise. say a month or year. Cash receipts to suppliers for goods and services. When cash flow statement us prepared.

not held for resale. Cash receipts from issuing debentures .• Cash receipts or refunds of income taxes unless they can be specifically identified with financing and investing activities. Examples of cash flow from investing activities are : • • • • • Cash payments to acquire fixed assets and also pay nets for capitalized research and development costs and self constructed fixed assets. Cash receipts of interest and dividend. debentures notes . These acrivites also include the purchase and of sale investments which are not included in cash equivalants. 2. 3. Examples of cash flows arising from financial activities are . loans. • • • • Cash receipts from issuing shaes or other similar instruments. building . Cash flow form Investing Activities: Investing activities include the purchases and sale of long term assets such a land . 64 . notes and other short term or long term borrowing. Cash payments to acquire shaes warrants Cash receipts from sale of shares warrants or debt instrument of other enterprise. Cash flow form investing activities discloses the expenditures incurred for recourses intended to generate future income and cash flows. Cash receipts from sale of fixed asets.bonds etc. Cash payment of interest and dividend. Cash repayents of amount borrowed buy back of equity shares redemption of reference shaes. plant and machinery etc. CASH FLOW FROM FINANCING ACTIVITIES: Financial activites are the activities that result in change in capital and borrowing of the enterprise.

Common size Statements. Fund flow statements. Trend analysis 10. 9. Cash flow statements. 13. 12. 11. Ratio Analysis. Break even point Analysis. Comparative Statements. 65 . 14.TECHNIQUES OR METHODS OF FINANCIAL ANALYSIS :8.

Recording percentage calculated in relation to a common base in special columns. the useof index numbers is generally advocated. This procedures may be called as “Trend Percentage Method”. An investigation of the comparative financial statements help to highlight the significant facts and points out the items which need further analysis.COMPARATIVE STATEMENT:This is a simple method for tracing changes in the financial performance of a company. This kind of analysis is particularly applicable to the items of profit and loss account. Comparative financial statements will contain items for atleast two periods. of increase and decrease. or proportional changes. or both. can indicate aggregate changes. Changes – increases and decreases – in income statement and balance sheet over period can be shown in two ways: (1)aggregate changes (2)proportional changes Drawing special columns for aggregate amount or percentage. For the trend analysis. 66 .shows relative. on the other hand. Time series or trend analysis of ratios indicate the direction of change. • Trend Analysis In financial analysis the direction of changes over a period of years isof crucial importance. The procedure followed is toassign the number 100 to the items of the base year and to calculate percentage changes in each item of other years in relation to the baseyear.

The comparison of the current or past ratiosshows the firm’s strengths and weaknesses in the past and the future. The analysis of the financial performance of all firms in an industry and their comparison at agiven point of time is referred to as cross sectional analysis or theinterfirm analysis.• Inter.Firm Analysis A firm would like to know its financial standing vis-à-vis its competitors and the industry group.If the ratios indicate weak financial position. Future ratios can be developed from the projected. corrective actions can beinitiated 67 . its financial ratios are compared either with its immediate competitors or with the industrial average. or proforma financial statements. To ascertain the relative financial standing of a firm. • Performa Analysis Sometimes future ratios are used as the standards of comparison.

68 .

47.026 2.07.242 31.96 6) 1.2009 2.06.28.9 01 (11.16.76.579 2.52.47.78.43.881 2.294 6.067 1.PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31TH MARCH.57.2008 Increase/decrease in 15 stocks EXPENDITURE Raw material 16 consumed and 69 .2009 PARTICULAR INCOME Sales Less:Excise Duty Other income 14 SCHEDUL ES 31.95.4 80 7.98.90.37.03.40.04.4 12 5.08.57.11.03.44.7 64 2.16.59.907 10.34.30.85.27.66.89.07.94.5 11 2.31.59.78.38.

selling and miscellaneous expenses Interest & financial charges Excise duty Depreciation Profit before tax Provision for taxation Current tax MAT Credit Entitlement Fringe benefit tax Deffered tax Profit after tax Add/(less) : taxation adjustment of previous year (net) Net profit for the year Add: opening `balance Net profit available for appropreation APPROPREIATION S Transfer to general reserve Balance carried over to balance sheet Earing per share of Rs.86.77.44 4.62.538 1.69.86.59.000 343869485 4.16.611 (52.59.91.141 16.348 20.56.49.92.21.61.69.87.92.485 (43.42 7.86.19.44.05.37.509) 6.987 18.250 (21.10.16.28.40.44.37 70 .17.54.826 2.00.each Basic 7 diluted Basic & diluted Basic & dulited (considering taxation 17 18 19 18.85.38.32.58.795 49.52.680 22.653) 7.43.708 32.76.59.38.43 4.8 74 7.777 6.08.83.59.52.74.712 (1.86.7777 9.16.916 (92.101 1.260 (1.00.00.344) 6.96.finished goods purchased Manufacturing expenses Payments and benefit to employees Administration.570) 16.050) 7.13.96.09.777 40.989 15.89.879 22.22.68.361 (2. 10/.95.902) 30.000 6.42.85.498 50.59.894 2.920) 43.00.68.505 20 6 12.95 9.680 38.41 32.60.967 (55.95.00.90.84.45.000 ) 27.

65.98.77.01.589 71 .91.914 31.2009 PARTICULAR SOURCES OF FUNDS Share holders Funds Share capital 17.000 Reserve & 1.993 surplus Loan Funds Secured Loans 82.for previous years) BALANCE SHEET AS ON 31TH MARCH .654 1.03.81.2009 31.740 Unsecured Loans Deffered Tax 19.29.62.03.285 1.04.29.22.89.68.89.32.716 1.33.03.2008 1.20.14.31.65.81.05.03.98.00.285 1.49.57.993 97.87 3 17.

59 447.80.185 20.43.73.65.30.54.49.26.00 44.89.49.38 226.325 1.571 84.72.314 provision Net current assets Total COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2009.22.50.73.0640.52 1116.71.92.412 70.22.00 37.12 %OI 100.77.44.00.55.812 1.45.00 50.812 67.01.36 220.51 1107.611 1.181 84.16.19.52.313 1.47.450 2.55.56 .33.352 1.28.777 27.18.75.51.30.58.337 2.35.34 212.72.62 8.14.108 72.151 40. 31-Mar09(12) Rs mn 2404.67.44 905.09 72 31-Mar07(12) Rs mn 2221.417 liability 1.737 2.31.19 31-Mar08(12) Rs mn 2478.66.51.849 28.37.60.08.86.656 1.92.Deffered Tax Liability Total APPLICAION OF FUNDS Fixed Assets Gross block Less: Depreciation Net Block Add: Capital Work in progress Investment Currenent Assets.25 -1.72 209.33.74.32 9.32.27.494 5.004 12.334 1.68 8.360.59.25.Loan & advance Inventories Sundry Debtors Cash & Bank Balances Loans& Advances 6.66 18.22.47.068 76.11.08.41.81.19 3 42.26.687 2.42.49.64.799 85.98.42.34.25.33 Net Sales (OI) Material Cost Increase Decrease Inventories Personnel Expenses Manufacturing %OI 100.087 2.96.89 9.98.25.93.8 7.41.575 47.30 -29.72.983 4.2008AND 2007.01.70 %OI 100.334 7.712 20.65.611 Less: current 44.

83 171.62 159.42 133.21 75.74 7.73 7.34 28.13 270.08 72.59 3.89 587.39 159.08 0.Expenses Gross Profit Administration Selling and Distribution Expenses EBITDA Depreciation Depletion and Amortization EBIT Interest Expense Other Income Pretax Income Provision for Tax Extra Ordinary and Prior Period Items Net Net Profit Adjusted Net Profit Dividend Preference 254.04 - 5.03 7.17 14.91 26.44 296.04 - Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 17.00 75.00 3.13 3.67 195.23 346.02 0.71 161.21 10.68 250.26 0.73 COMPARATIVE BALANCE SHEET STATEMENT :(RS Crores) Mar ' 09 Sources of funds Owner's fund Equity share capital Share application money Preference share capital 73 17.40 13.97 0.03 -0.86 5.67 6.62 88.38 2.41 2.34 0.64 14.00 10.46 50.78 1.67 5.57 9.33 266.52 0.42 14.45 4.10 0.17 16.00 3.80 244.74 171.18 6.89 312.44 2.62 10.84 312.39 625.05 6.09 12.04 - 17.83 13.12 24.04 - 17.07 - .95 184.09 2.45 654.95 46.60 24.06 336.96 12.08 14.23 0.44 6.75 8.38 65.43 125.22 63.01 308.87 -2.

70 116.24 4.78 Mar ' 07 81.10 151.13 20.44 131.91 48.03 22.06 233.94 22.45 115.39 39.75 125.61 57.34 82.94 113.Mar ' 09 Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets.82 Mar ' 06 64.11 31.02 54.22 48.92 6.08 84.63 Mar ' 05 57.84 96.13 103.32 15.14 17.59 54.02 180.11 0.55 20.81 21.55 72.55 35.19 182.10 79.44 105.55 75.61 85.91 134.64 0.34 110.38 115.76 74 .32 221.02 224.73 47.19 104.95 38.01 8.84 233.67 224.43 66.50 27.76 126. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 171.06 40.65 16.45 151.49 0.46 1.92 41.70 31.44 221.30 Mar ' 08 97.94 124.

75 .

4) Profit of the company decreased drastically this year compared to previous year. 76 . 2) The liquidity position of the company is better compared to previous year. That’s why company is not able to increase its market share. Company is unable to reduce its fixed expenses. 5) The main focus is on the quality of the export goods. They give less attention to the needs of Indian customer.FINDINGS OF THE STUDY 1) Company is using WCDL (Working Capital draw down limit) for meeting short term requirement of cash. 3) Company’s inventories position is better compared to previous year.

77 .

Windsor in males and Senorita in female are the most popular brands. 3. Bata. Liberty has got the largest range and variety of shoes. Demand of Force-10 is very low among men footwear. reviewing the training period following are some conclusion regarding the Liberty Footwear:1. 2. Demand of Gliders is very low among ladies footwear. 4. Maximum customers influences have preferred to watch Liberty advertisement between programmes. Woodland.Relaxo. Liberty has gained more popularity comparatively in competition with other shoe companies. Lakhani. Main competitors of Liberty shoes are Action . 78 . 7.CONCLUSION There is always a conclusion at end of any activity or training programmed. 6. After consultation. 5. Phoneix and some local companies.

79 .

80 .

 The concerned executives were having very busy schedule.  As some figures have not been disclosed by the company on account of confidential report. 81 .  The time duration could not provide ample opportunity to study every detail of management in the company.LIMITATIONS Although every effort has been made to collect the relevant information through the sources available.  There are restrictions not to visit some specific areas. still some relevant information could not be gathered.  Estimates are based upon predictions.

82 .

Company should give more emphasis on their slogan“SAPNEY AB HUE APNE “to make more effective. 1. 83 . Company should give emphasis on persons attitude and perception while designing and advertisement because personal likings is more influencing factor among people. 3. 5. Company should produce more light weight chappals and sandals and should advertised it separately so as to attract the children. Company should increase the investments on advertisement as it has now become more effective. Company should change its time schedule on TV according to the respondents preferences. Appended below are few suggestion. Company should makes their prices more competitive and should minimize the prices. 2. 4.SUGGESTIONS Suggestion are also very important after two month experience in any company or organization. 6.

84 .

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M.libertyshoes. I. 2007. New Delhi.. Ed. 2007. Gupta.BIBLIOGRAPHY BOOKS • • Pandey. New Delhi..libertyfreedom. Shashi K. Kalyani Publishers. “Management Accounting”.com 86 .. Vikas Publishing House Private Ltd. Ed. Manual • Annual reports Websites • • www. “Financial Management”.com www.

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88 .e Land and building plant and machinery furniture’s and fixtures motor vehicle Office equipments total is called gross block and after deduction of depreciation the same is called NET block." When you look at the Balance sheet of a company on the Assts side there is a head called fixed assets.GALLOSARY GROSS BLOCK Definition of Gross block "The total value of all of the assets that a company owns. Value is determined by the amount it cost to acquire these assets. If you go to the Schedule of Fixed assets in the first column will be all the fixed assets original cost i. and it is not decreased to take into account the effects of depreciation.