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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. If the financial position of the company is good, there is no doubt that company or industry will grow faster in the existing.

FINANCIAL ANALYSIS The term analysis is methodical classification of data given in the financial statements. 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. Financial analysis can be undertaken by the firm or by outside parties, firm’s owner, creditors, investors and other. Actually the nature of analysis depends upon the parties.
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Feature of Financial Analysis:To presents a complex data contained in the financial statement in simple and understandable form.

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2. To classify the item contained in the financial statement in the convenient and rational groups.

3. To make comparison between various groups to draw various conclusions.

FINANCIAL STATEMENTS Financial statements mean a statement or document which explains necessary financial information about an organization/ company. The financial statements are prepared on the basis of facts recorded in books. These recorded facts are expressed in the monetary terms. In the United States, a company that offers its common stock to the public typically needs to file periodic financial reports with the Securities and Exchange Commission (SEC).
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When considering important rule changes. Classification on the basis of modus operandi. nongovernmental organization .S.The SEC governs the content of these filings and monitors the accounting profession.with the authority to update U. the SEC empowers the Financial Accounting Standards Board (FASB) . accounting rules. On the basis of material used :External analysis:- 4 . TYPES OF FINANCIAL ANALYSIS 1. Classification on the basis of material used. this standard becomes a mandatory part of the total set of accounting standards known as Generally Accepted Accounting Principles (GAAP).an independent. In turn. 2. But once FASB issues a final standard. FASB is impressively careful to solicit input from a wide range of constituents and accounting professionals.

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

4. To know the solvency. 3. To know the capability of payment of interest & dividend. 6 .Mis lead the users:1. 6. 3. 5. To know the financial strength. 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. 2. 7. 2. To know the earning capacity or profitability. To make comparative study with other firms. 5. 4.

P & L appropriation account. Balance sheet. 7 . Explanatory notes given at the end of financial statement. 3. Cash flow statement. 5. Profit and loss account. 6. 4. To know the trend of business. Statements are including in the list of financial statements :1. Various schedules.6. 2.

2. 8 . 4. Cash flow statements. Common size Statements. Break even point Analysis . Trend analysis 3. Ratio Analysis. 7. Comparative Statements.TECHNIQUES OR METHODS OF FINANCIAL ANALYSIS :1. Fund flow statements. 6. 5.

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OBJECTIVE OF THE PROJECT : - 10 .

5.The financial statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of an organization/ company. 3. These statements help the company in making planning and taking decisions. 8. To determine the change in financial condition of business. To provide useful information to the management 9. To identify the trend of the business of the company. To measures the earning capacity or profitability of the company. To measure the financial strength of the company. 11 . 6. To judge the efficiency of management of the company. 7. To measures the solvency of the company. To measures the capability of payment of interest and dividend of the company. To makes comparative study with other firms. 1. 4. 2.

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

is mainly secondary data. which is done for his particular project is with the help of data collection. which is collected. which is collected from the account books of the Liberty Shoes Limited. 13 .RESEARCH METHODOLOGY Research. Prepare the research design : Here the research is descriptive research as we to give various description so design are formulated accordingly. which is used is as follows:Research problem Here the problem is to analyze the ratio of the company for which we have to conduct the research. Data. Executive literature survey: Now we have to see that from where the data is being collected on which we have to perform the research. Here the research process.

TYPES OF RESEARCH DESIGN • Exploratory research design • Descriptive research design • Experimental research design EXPLORATORY RESEARCH DESIGN It is also termed as formulative research design. 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. It includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data.RESEARCH DESIGN Research design is a framework or the blue print for conducting the research project. Sample size : 14 . The present project is analytical in nature. EXPERIMENTAL RESEARCH DESIGN In this casual relationships between the variables are tested. The main purpose of the study is to formulate a problem for more precise investigation. DESCRIPTIVE RESEARCH DESIGN In descriptive research design. The main objective of the analytical research design is to define the problem into researchable one and analyze the data according to the purpose. those studies are taken which are concerned with describing the characteristics of a particular individual or a group. It is also known as hypothesis testing research design.

Secondary data :Secondary data companies of annual reports. Here sampling is done step by step or we can say multistage sampling. ledger and past records. Analysis of data : In this stage of research process the data is made in the tabulated whether data is adequate or not. 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. 15 .Here the sample is taken from the companies past records of various accounts. which is collected for the research is secondary data as I had collected it from the account books of the company. questioning. SOURCES OF DATA Primary data companies of information obtain from employees of this organization.

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. 16 . CA & accountants of the company. statement were also made during the study by using standard formulas. In this project. Special record searching : Special records are maintains by accountants have been made during the studied thoroughly while making this report. Analysis :Analysis of various types of data. Questions related to problem and data tallied with FM.Company has provided me annual reports from 2000-2001 to 2008 to 2009 by the help of which prepared my report.

LIMITATION OF STUDY  The study was conducted in limited areas.  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. 17 .

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It has its banker state Bank of india specialized commercial branch karnal for enhancement of working capital limits. Bengaluru. centre ΙΙΙ. Jammu. leather shoes upper and Hawaii chappals for gents. The footwear liberty emerged in 1954 in the field of manufacturing and exporting of footwear. Chennai. By invention of ACS (air circulation system) technology. Rajpura and Sharanpur. The liberty has its domestic branch office at Agra.liberty complex in Ghuraunda (karnal) . centre ΙΙ . The Liberty has its corporate office . non – leather shoes. that prevents feet from sweating in hot and humid conditions are more revolutionary step by liberty in footwear market. ladies and children. This company is manufacturing leather shoes.The marketing office is located at Punjab Bagh New Delhi. Delhi. Jaipur. a sole. liberty park in karnal city Registered office & human tech.INTRODUCTION Liberty is leading footwear industry covering brands under its own name. 20 . The major strength of liberty footwear is its strong distribution channel and its technological advancement. Liberty shoes are known for its quality in India and abroad. centre Ι. sports shoes. Liberty is devoted to the customer of the world and they strive hand to keep true to there motto. Liberty puram in kutial (karnal) and human Tech. centre house and human Tech. It talk the extra mile to ensure customer’s satisfaction world wide. ”SAPNE AB HUE APNE”.

With 50 years of excellence behind it liberty today is amongst the five largest footwear manufacturers of the world. Marketed across the globe through 150 distributors. A range that is among the largest in the industry. quality obsessed nations like France. Late Sh.HISTORY OF LIBERTY SHOES LIMITED Like all the enterprises this company too is seeped in history. Late Sh. It produces footwear for the entire family and is a trusted name in many households across India and world. Liberty 50 years of excellence behind it Liberty today is amongst the five largest footwear manufacturers of leather footwear of the world with a turnover in excess of U. It was on 25th December 1954 when India was nurturing its growth as a free country those three dreamers in a small town in erstwhile Punjab throughout of producing an Indian brand of footwear to make a basic necessity available to their countrymen .D.Gupta.K.Producing more than 90000 pair of footwear a day . 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. Gupta & Late Sh.P.S $100 Million . covering virtually every age group and income category. 350 excutive showrooms and over 6000 multi.brand outlets and sold in thousands every day in more than 25 countries including fashion driven.P. In the domestic market we are one of the most admired footwear brands and hold the largest market share for leather footwear. D. R. Company was 21 . Italy. 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.

Presently company is engage manufacturing leather and non. Firm register office of the companies situated at Delhi.E. 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. The company has been set to manufacturer and to sell leather and nonleather shoes upper and leather garments.incorporated on 3rd sept. Haryana and New Delhi. The company shifted its registered office from Union Territory of Delhi to Karnal.1986 as a public company and obtained the company W. with M/S Groky Product & shoes unit Groky City but subsequently the name of venture was changed as “Liberty & Nino”.F business on 11th March 1988. 22 .

healthy and non discriminatory work environment for all Liberty employees where they are free from harassment of any from supervisor. suppliers.workers. co. Nike etc. who recognize it as an equal opportunity employers. senior. customer and suppliers. Reebok. Ethical standards and practices are rigorously brands like Wal-Mart.SOCIAL RESPONSIBILITY Liberty conducts its business with honestly. government official and all those who are outside the Liberty Group. Fully appreciative 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. The present Scenario 23 . integrity and respect for all those who come in contact with it in course of business. Utmost importance is also given to ensuring a safe.

The company has enter into an agreement with one of the group firm M/S Liberty Enterprise for using the established brand name “ Liberty”. The second direct injection machine installed in March 1994. Future plan Group has set up this company to expand its exciting capacity by more than two times to increase in the market share in national and international market and to meet out the growing demand of its product. From the commencement of commercial period till 31th march 1994 the co. Is well established in national and global marker. has been separated on full capacity.The company markets its product nationally and internationally under the brand “Liberty Co”.leather shoes on 25th December 1993. which is dedicated to market the group branded 24 . and use the trademark initially for a period of 5 years and has to royalty of Rs 20 Lac. 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 . As the promoters are in this line for the last five decades the company has recently launched new product of Hawaii chapels. 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.soing machine was installed with the capacity of 24000 pairs premium on single shift basis. Initially direct injection. As per the term of agreement company can use this term of agreement co. The Company has commenced commercial production for non. The present over supply in the domestic market is improved due to this increasing growth rate of demand over the base several years.

GROUP OF COMPANY 25 . which are of the strategic nature. Before taking any financial decision proper consultation with concerned executive is done. Decision making All the decisions. The heads of the department have sufficient opportunities for participation in decision making . The group plans to restructure its separation into integrated shoes manufacturing and market organization. is to be taken at highest level. However the final authority lies with top executive. Various committees for the formulation of policies for the different functional area have been constituted.their views recommendations and suggestion are given due consideration.products.

Meeting the entire demand of the nation. it is all set to deliver high quality finished products. Bengaluru. Liberty Organosys Liberty group for manufacturing acetic acid in India promotes Liberty organosys limited. Kolkata. Hyderabad and Pune. Liberty revolution In the elite shopping avenues of fashion capital “Revolution” has begun its walk. These are company managed and owned outlets where the emphasis is to deliver high fashion to the customer backed by quality service making it a delightful shopping experience. Liberty showrooms enter the international market as 26 . to meet the challenge of performance optimization of a car. Drawing upon the consideration manufacturing experience of Azin Khodro Group and the business of Liberty group. Armed with a unique R & D source Liberty automotive is able to offer ideas to create solution and resources. Liberty plans to build this in a large scale. The fashion accessory and footwear stores have begun operation in Chennai. Mumbai. Liberty proposes to use methanol carbonization route for manufacturing this organic chemical 60% of the world production is based on technology.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. The technical details of the project will be announced soon.

company has plans of opening 18 more revolution showrooms nationally & internationally. 27 . It will come with some obvious advantages. 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. It is where Liberty whiteware factory is fast taking shape. 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. 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 is all set to introduce to domestic market some very up – market sanitary ware that will be manufactured here. Liberty Whiteware Ltd.

He had been associated with the shoe industry since the age of 16 years. In 1994 he had been involved with Liberty group since than. P. He initiated the shoe business under the trading cycle “Pal Boot House”. Gupta He has been associated with shoes industry for the last 80 years. chairman and the managing director of the company. He 28 .PROMOTERS OF COMPANY The company comes under the public limited companies groups and belongs to “Liberty Group”. The company has been promoted by three business persons name as Late Sh. Late Sh.d. D. Gupta He was 75 years old. He was also activating in social.P.

BOARD OF DIRECTORS  Mr. K. R.Executive Director) 29 . He had been the president of all India chambers of footwear exports for last 20 years. He was also partner in many associated firms. Bansal He was 67 years old and the promoter’s director of the company. Adesh Gupta (CEO. He had been associated with shoe industry and with the trade for last 45 years. Late Sh. 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.was also chairman of joint venture set up in Russia by the company.

Sidharth Sanghi (Non Executive Independent Director )  Mr. Adarsh Gupta (Executive Director ) Mr. Arya (Non Executive Independent Director)  Mr. Raghu Dayal ( Non Executive Independent Director)  Mr. Shammi Bansal (Executive Director)  Mr.K. Prem Chand Grag (Non Executive Independent Director)  Mr. S. Sunil Bansal (Non Executive Director)  Mr. Amitabh Taneja (Independent Director)  Mr. Goel (Independent Executive Director)  Mr. S.  Mr. Munish Kakra (Vice President & Company Secretary) 30 . Vivek Bansal (Non Executive Independent Director)  Mr.K.

at office or at the beach. special care has been taken to make sure that the outlets design meets the specific needs taste of the target groups. A part from the existing brands. Today the new range from liberty is all about style. design and comfort. They’re hap and they’re happening. a conference or a soiree Liberty fits in effortlessly.LIBRTY BRAND Libety has developed a spectrum of 10 exclusive brands. each of which have been given that extra edge to enter to a specific target group. The range imbibes the spirit of fun and is trendy to the core. liberty is busy fashioning the look of the future footwear. 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. Be it formal or casual.  COOLERS They’re cool and they’re hot. Airy.  FOOTFUN Something for those little feet as they learn to walk. Liberty has something for every income bracket & every age group. But why limit the pleasure to summers? Here’s one brand of sandals that stays cozy and comfy all year round. 31 . This family brand is style personified with something for every need. they keep the feet cool and comfortable. Perfect for the hot summer days. Introducing new decisions that redefines styles and comfort.

laughing and loving every moment of life. In fairy-tale colors and designs. SENORITA Walk tall. trendy and with it. walk light and walk with amazing style. A range of stunning brogues and smart lace ups that will be noticed and talked about every step of the way. Unmistakably a part of Generation You.  FORCE-10 The flair.  FORTUNE Genuine leather uppers and extra light poly soles help complete the power dressing in men with élan and panache. TIPTOPP 32   . A happening range of sports shoes in far out colors that provides the perfect footnote to a head-turning presence. GLIDERS Cool and comfortable. the style and ease that forces the world to take notice.light and comfortable with lycra uppers and no laces. Rediscover the little girl that lurks not far behind in every woman.

styles and comfortable heels.  WARRIOR Smart. offering 33 .U.  WINDSOR The premium is on lightness. soles with steel toe caps and offering the widest range of styles in safety shoes. To master the art of being confident and sure-footed on slippery grounds and danger ones. And colors that become the envy of all and sundry. style and comfort which make it ideal for men who take every challenge effortlessly in their stride. Perfect for conquering the neighborhoods in designs that are the latest rage the world over.Strappy.  FREEDOM A new introduction in the safety footwear segment in Nit rile PVC material. stylish professional gear crafted from leather uppers and direct injection P.

customers with waterproof. 34 . DETAILED DESCRIPTION OF POPULAR BRANDS NAME BRAND Force -10 Windsor Fortune Ricardo Gliders Tip –Top Senorita Coolers Geo Sports Foot fun OF DETAILS Family force Liberty castte Good luck Recoras Fly in air Fun children Seniority Feel coolness Build sportsmanship 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 Gents Gents & ladies Children & for Canvas leather Bellerion sandal Slippers sandals Leather Sports shoe Leather Sports shoe Canvas 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. fire retardant and shock free product in economic range.  To import the technical knowhow of foot wear and PVC technology. Safety footwear for industrial use.

NATIONAL AND INTERNATIONAL AWARDS The liberty group has won several prestigious national and international awards. puckers and hand grouse and other product of leather).transport. soles . leather manufactures and dealers in all kinds of water proof articles  To prepare . finish import. PCC. retain utilize . which are as under: 35 .extract. cost . component and accessories. process. buy and sell market install summary and carry on business as manufacture dealer in all kinds of footwear. To deal in raw hinds and skins. recover. refine.  To carry on business of manufacturing and repairing and wholesale dealers in all types of footwear and accessories of footwear(such as heels.

 National award from government in 1981 – 1982. 1994.  International Asian award.  National award for best export performance in leather garments in 1987 – 1988. Arch of Europe international gold star. Udyog rattan by government of India. Belgium 1988.  Haryana government export award in 1978-1979. Jakarta in 1982. Brussels.  Certificate of merit as national export award from government of India in 1989. 36 .  Europe award for pair in 1987.  International award for good quality.  Leather export promotion council merit award for outstanding performance for 1976 to 1982.

VIKAS NAGAR. CHARBA.O. KARNAL -132114 (HARYANA) CORPORATE OFFICE & HUMAN TECH CENTRE -11 LIBERTY COMPLEX. DISTT.T.UNITS OF LIBERTY SHOES LIMITED REDGISTERED OFFICE & HUMAN TECH CENTRE -1 LIBERTYPURAM. V1LL. G. DISTT. CENTRE -1V LANGA ROAD. KARNAL ROAD. KARNAL ROAD KUTAIL. DIST. LIBERTY ROAD. P. CENTRE -111 LIBERTY PARK. 17TH MILE STONE.O. GHARAUNDA. P. 37 . G. KARNAL -132001 (HARYANA) HUMAN TECH.T. KARNAL HUMAN TECH. SAHASPUR. 13TH MILE STONE.BASTARA.

AGRA. HYDRABAD. JAMMU. JAIPUR. RAJPURA. BANGLORE.DEHRAHUN (UTTRANCHAL) BRANCHES DELHI. MUMBAI. CHENNAI. SAHARANPUR. CALCUTTA. 38 .

While leather shoes and uppers are produced in medium to large-scale units. Reebok.Indian footwear industry:Indian leather industry is the core strength of the Indian footwear industry. St Michaels. It is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China. Nike. Nunn Bush. The industry is poised for adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. Deichmann. Gabor. the sandals and chappals are produced in the household and cottage sector. Clarks. Besides. Hasley. Elefanten. India produces more of gent’s footwear while the world’s major production 39 . Stacy Adams. Salamander and Colehaan are manufactured under license in India. many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. Ecco. Reputed global brands like Florsheim.

sport shoes. There are already many new domestic brands of footwear and many foreign brands such as Nike. UK and PFI.C. P. use of non-leather material is prevalent in the domestic market. Many units are equipped with In-house Design Studios incorporating stateof-the-art CAD systems having 3D Shoe Design packages that are intuitive and easy to use. Rockport. Adidas. Non-leather footwear exported from India are shoes. In the case of chapels and sandals.is in ladies footwear. One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs. With changing lifestyles and increasing affluence. Florsheim. India. Design and Retail information is regularly made available to 40 . horrachies. boots. Sandals and Chappals made of rubber. and in accordance with the latest trends. has gained international prominence in the area of Colours & Leather Texture forecasting through its outstanding success in MODEUROP. ISO 14000 as well as the SA 8000 certifications. casuals. and other materials. Leather footwear exported from India are dress shoes. etc. moccasins. sandals. Puma. Many Indian footwear factories have also acquired the ISO 9000. ballerinas. The footwear sector has matured from the level of manual footwear manufacturing methods to automated footwear manufacturing systems.V. plastic. Reebok. Excellent facilities for Physical and Chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA. have also been able to enter the market. domestic demand for footwear is projected to grow at a faster rate than has been seen. Germany.

footwear manufacturers to help them suitably address the season's requirement. skilled manpower and relatively low cost labor. The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits. large installed capacities for production of finished leather & footwear. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins. proven strength to produce footwear for global brand leaders and acquired technology competence. Indian Scenario: 41 . quality finished leather. large human capital with expertise and technology base. 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.

Clarks. India ranks second among the footwear producing countries next to China. Nike. The industry is labor intensive and is concentrated in the small and cottage industry sectors.Reputed global brands like Florsheim. The Indian Footwear Industry is all set for leveraging its strengths towards maximizing benefits. large human capital with expertise and technology base. Besides. use of non-leather material is used tomanufacture these in the domestic market. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins. the sandals and chappals are produced in the household and cottage sector.The Footwear Industry is a significant chunk of the Leather industry in India. large installed capacities for production of finished leather & footwear. Deichmann. Stacy Adams. particularly for mid and high priced footwear segments. The industry is on the edge of adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. Reebok. skilled manpower and relatively low-cost labor. Nunn Bush. Elefanten. quality finished leather. proven strength to produce footwear for global brand leaders and acquired technology competence. Hasley. St Michaels. Salamander and Colehaan are manufactured under license in India. 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 42 . In the case of chappals and sandals. many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. Gabor. India produces more of gents footwear while the world’s major production is in ladies footwear. While leather shoes and uppers are concentrated in large-scale units. Ecco.

to2011. India is often referred to as the sleeping giant in footwear terms. Lloyd (Germany). modern shoe making plants. As footwear retailing in India remains focused on men's shoes. Presently. Clarks (UK). there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment. 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). as good as anywhere in the world (including Europe). 43 . Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production. The bulk of production is in men’s leather shoes and leather uppers for both men and ladies. It has over 100 fully mechanized. second only to China. Marks and Spencer (UK).800 million pairs. abundant raw material. and has huge consumption market. It has an installed capacity of 1.By products. the Indian footwear market is dominated by casual footwear market. the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market. It makes for some up market brands including Florsheim (US).

Presence of qualified leather technologists in the field. Managements with business background become quality and environment conscious. manpower development and marketing.SWOT Analysis of Indian Footwear Industry:- STRENGTHS: • • • • Existence of more than sufficient productive capacity in tanning. Easy availability of low cost of labour. Comfortable availability of raw materials and other inputs. Exposure to export markets. Exporter-friendly government policies. designing. Well-established linkages with buyers in EU and USA. Tax incentives on machinery by Government. • • • • • • WEAKNESSES: - 44 . Massive institutional support for technical services.

Lack of modern finishing facilities for leather. Lack of quality job work units Delayed deliveries Weak support infra.structure for exports • • • • • • • • • • • • • • • • • OPPORTUNITIES: - 45 . and the integration of developed technology is very slow. Environmental problems.• Low level of modernisation and upgradation of technology. Highly unhygienic environment. Low level of labour productivity due to inadequate formal training / unskilled labour. Competition among units vying for export orders leading to undercutting. Non availability of quality footwear components Lack of fresh investment in the sector. Less number of organised product manufacturers. Poor labour productivity. Horizontal growth of tanneries. Lack of awareness about consistent in plant training and retraining. designing and technical services.Inconsistent quality high rejection rate Low machine and material productivity. Difficulties in accessing to testing. Little brand image. Uneconomical size of manufacturing units. Unawareness of international standards by many players as maximum number of leather industries are SMEs.

De-reservation of the footwear sector. hand crafting etc.Developing countries are resorting to more and more non – tariff barriers indirectly. which are more competitive than India. country & company profiles.(The performance of global competitors in leather and leather products indicates that there are at least 5 countries viz. Indonesia.) Non. for example. Use of information technology and decision support software to help eliminate the length of the production cycle for different products Product diversification . strengths in classic shoe manufacturing. China.There is lot of scope for diversification into other products. 46 • . Exposure to newer markets through Fairs/ BSMs Retain customers through quality supplies and timely deliveries Aim to present the customer with new designs. Growing fashion consciousness globally. namely. Vietnam and Brazil.tariff barriers . Thailand. Use of modern technology Exhibit strengths in manufacturing.• Abundant scope to supply finished leather to multinationals setting up shop in India. • • • • • • • • • • THREATS: • • Entry of multinationals in domestic market. leather garments. goods etc. infrastructure. Stiff competition from other countries. Growing international and domestic markets.

as many businesses are family-owned. Limited scope for mobilising funds through private placements and public issues. • 47 . Fast changing fashion trends are difficult to adapt for the Indian leather industries.• • Improving quality to adapt the stricter international standards.

Share in GDP of footwear industry:- 48 .

Italy. 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.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. usually a year or a quarter of a year. GDP is a number that expresses the worth of the output of a country in local currency.2 per cent. and Services . 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. At the time of independence agriculture occupied the major share of GDP while the contribution of services was relatively 49 . China. Industry . France. Canada. Spain. GDP is calculated for a specific period of time.18. The GDP or Gross Domestic Product is the primary indicator used to gauge the health of a country's economy. Japan. Countries that have breached trillion-dollar GDP level in the past are he US.55. GDP tries to capture all final goods and services that are produced within the political and geographical frontiers of the country. UK. India's GDP grew at an impressive 9.5 per cent.1 per cent.4 per cent. Germany. The share of different sectors of the economy in India's GDP is as follows: Agriculture .26. According to the data released for the year 2006-2007. Brazil and Russia. thereby assuring that the final monetary value of everything that is created in a country is represented in the GDP. 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.

very less. The government has set a target of an average annual GDP growth of 9 per cent for the Eleventh Five Year Plan. The target looks achievable as all the macroeconomic fundamentals are strong and the impressive growth rate of Indian GDP looks all set to continue. Footwear Market in India 2010 ... India has around 3% share in the global trade of leather in comparison to Chinas 20%. In order to . ... From 10% of the Indian GDP in2007, it became 12% of GDP in 2009. ... COMPETITORS

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Companies Profile: ADIDAS:Adidas ltd is a German sports apparel manufacturer and part of the Adidas group, which consist of Reebok sportswear company, Taylor Made51

Adidas golf company, and Rockport. Adidas is the largest sportswear manufacturer in Europe and the second largest sportswear manufacturer in the world. Company’s revenue for2006 was listed at about US $ 13.625 billion and the 2007 figure was listed about $ 15.6 billion. It has more than 170 subsidiaries guarantee marketplace presence for Adidas products around the world. Liberty: Liberty shoes ltd. is a leading leather shoes brand and is engaged in the manufacturing, supplying and exporting of the footwear’s. It is the only Indian leather shoe brand that occupies fifth ranking among the top shoes manufacturing companies in the world. Reebok: Reebok specializes in the design, marketing and distribution of sports and fitness products including footwear, apparel and accessories, as well as footwear and apparel for non-athletic use. The company has three main product categories: Rbk, Performance, and Classic. Each of these product categories features product offerings for both men and women that are designed for specific consumer groups. Reebok has operations in the UK, Europe and in various and in various Asian countries. It is headquartered in canton, Massachusetts. The acquisition of Reebok by Adidas-Salomon was completed in January 2006. Bata: Bata industries is a specialized division of the world’s largest shoe manufacturer: the Bata shoe Organization (BSO). Bata industries has operations and production facilities in most of the countries worldwide. Bata India Limited is the largest footwear retailer in India. Bata India is a manufacturer of footwear. Types of footwear offered by the company include rubber, canvas, leather and plastic footwear. The company also markets apparel under the brand names of North Star, Power and Ambassador. Bata India has five manufacturing plants and acquires its leather from two tanneries in Mokamehghat (Bihar) and Batanagar. It is headquartered in West Bengal, India Relaxo: Relaxo entered into footwear industry in 1976. It started off with the manufacturing of Hawaii slippers and subsequently diversified into manufacturing casuals, joggers, school and leather shoes. Relaxo has the capacity to manufacture over 100 million pairs, per annum. It has the customer base of around 100 million.
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98 99.02 20.54 64. 15 60.65 3.42 13. SARUP Tunners Ltd. 05 18. In Cr.80 78.95 1.47 - 9.00 51.39 2.77 17.25 52.2 74.63 9.13 12.00 7.84 3. 00 76 .) (%) 47.51 4. SUPER HOUSE Super House Ltd.36 1.84 60.44 15. RELAXO Relaxo Footwear Ltd.26 51.00 28.33 ) 72.00 (53.61 2.47 Dividend (%) EPS (%) Return on Net Worth (%) Offer price of last issue Closing price (%) 52 week Gain/ Loss BATA Bata India Ltd. MIRZA Tanners Ltd.00 167.25 - 4.65 3.55 17.00 8. 50 24 .KEY FINANCIAL FIGURE OF TOP SIX FOOTWEAR COMPANIES FOR THE YEAR 2007 -2008 COMPANY NAME Paid up Eq. 65 32.5 6.56 30.55 179 .15 18.00 86.0 0 458.00 42.00 14. 50 5.84 15.59 44. LIBERTY Liberty Shoes Ltd.72 40.04 61.00 0.00 4.00 10.00 75.1 5 15 .94 16. 64.52 3.67 53 .12 4.5 0 25.17 6.00 62.3 0 6.31 60.66 6.2 5 21 .0 0 32 .45 15. share capital Promoters contribution (%) Net profit & loss after tax its margin(%) (Rs.44 5.38 22.

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FINANCIAL ANALYSIS
The term analysis is methodical classification of data given in the financial statements. 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. Financial analysis can be undertaken by the firm or by outside parties, firm’s owner, creditors, investors and other. Actually the nature of analysis depends upon the parties. “Financial analysis consists in separating facts according to some definite plan, arranging them in groups according to certain circumstances, and then presenting them in a convenient and easily read and understandable form.”

According to Finney and Miller “Financial statement analysis is largely a study of relationship among the various
financial factors in a business, as disclosed by a single set of statements and a study of the trends of these factors, as shown in a series of statements.”

According to John N. Myres

Feature of Financial Analysis:-

1. To presents a complex data contained in the financial statement in simple and understandable form. 2. To classify the item contained in the financial statement in the convenient and rational groups. 3. To make comparison between various groups to draw various conclusions. 55

TYPES OF FINANCIAL ANALYSIS

3. Classification on the basis of material used.

4. Classification on the basis of modus operandi.

On the basis of material used :-

External analysis:-

Outsiders, who don’t have access to the detailed internal accounting record of business firm, do this analysis. These outside parties are potential investors, creditors, government agencies & general public.

Internal analysis:-

The analysis conducted by person who has access to the internal accounting records of a business firm is known as internal analysis.

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Vertical analysis:This analysis refers to the study of relationship of the various items in the financial statements of one accounting period. of financial data of a company for several years. The figures of this type of analysis are presented horizontally over a number of columns. It is also known as “Static analysis “ 57 . This type of analysis is also called “dynamic analysis”.On the basis of modus operand :- Horizontal analysis:Horizontal analysis refers to the comparison.

e. Financial Data provides a way to gauge where you are in your Strategic Plan. Significance for Investors:Investors are generally considered one of the primary users of financial statements. A Business Plan takes most of the guess work out of Business Strategy and Control through solid financial analysis. Significance for Creditors:In the ongoing relationship between suppliers and a firms financial statement can play several roles consider the relationship between a firm and the suppliers to its loan capital.Significance or importance of Financial Analysis :- 8.Planning and Control are the two most important ingredients to a Successful Business. financial statement typically are an important items. 58 . Because of this. They use the financial statements to determine the current profitability of the firm and attempt to predict its future profitability. telling you where changes in your Plan are necessary. 9.g a bank in the initial loan granting stage of the relationship. 10. 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 Managers. Financial Data Analysis and Management are vitally important to running a successful business.

intervention e. 14. Significance for others parties:- The set of party that demand for financial analysis information of corporation is open ended. Govt. diverse party such as academic . Significance for Government :Various ministries and department have interest in the firm’s payments of taxes.11. backed loan agreement to a financially distressed firm. and other special interest lobbing groups approach cooperation for detail relating to their financial and other affairs.value added tax collection. Significance for Employess:- They are the part of the organization and feel that their effort contributed to the firm profit they would there for prefers to give bonuses and salary increase this also increase expenses of the firm.g determines weather to provide a govt. 13.environmental protection organization. Significance for regulatory agency:- The demand by these bodies can arise in diverse set of areas such as revenue raising e. sales tax . 12.g for income tax. Also sees the enactment of law for the industry and the provision of social service to the 59 .

the information derived from such statements may not be effective in corporate planning. it should be carefully performed as it suffers from a number of the following limitations. management skills and so on which are also equally important for decision making. The govt. Limitation of Financial Analysis :Though analysis of financial statement is essential to obtain relevant information for making several decisions and formulating corporate plans and policies.Not useful for planning:- Since financial statements are prepared by using historical financial data. If their preparation is wrong. 10. may also want to ensure that the firm complies with the law on for example wages payments and employees benefit. it fails to provide qualitative information such as management labor relation. 8. Comparison not possible:- 60 . However. 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.public. customer's satisfaction. 9. if the previous situation does not prevail. therefore. Mis lead the users:- The accuracy of financial information largely depends on how accurately financial statements are prepared.

biased attitude of the analyst may also lead to wrong judgement and conclusion. wages. Similarly. labors and overheads. 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. idle time. 5. Therefore comparative analysis of financial statements of different years can not be done as inflation distorts the view presented by the statements of different years. Wrong judgement:- The skills used in the analysis without adequate knowledge of the subject matter may lead to negative direction. Not control on cost:It does not provide for a proper control of materials and suppliers. 61 . idle plant and equipment. 7. 15. 6. In other words no distinction is made between avoidable and unavoidable wastage.The financial statements are based on historical data. No analysis of losses:It does not provided the complete analysis of losses due to defective material.

62 . 8.. 9. 12. To know the trend of business. 11. 10. To know the solvency. To know the financial strength. These needs may be :7. To know the earning capacity or profitability. PURPOSE OF FINANCIAL ANALYSIS The purpose of analysis of financial statements depends upon the need of a person who analysis these statements. To make comparative study with other firms. To know the capability of payment of interest & dividend.

Cash flow statement. 8. Various schedules. Explanatory notes given at the end of financial statement. 12. Balance sheet. 9. Profit and loss account. 10. P & L appropriation account.Following statements are including in the list of financial statements:7. 11. INCOME STATEMENT OR PROFIT &LOSS ACCOUNT 63 .

It is an important financial statement. To ascertain the profitability of the business by establishing relationship of gross profit and net profit with sales. NEED OF INCOME STATEMENT 1. 64 . To ascertain the cost of goods sold and establishing its relationship with sales. gross loss/ net profit and net loss. 2. It is a statement of revenues earned and the expenses incurred. To ascertain the cost of production. gross profit. 3.

CHARACTERISTIC OF BALANCE SHEET:- 1. 65 . Balance sheet shows the financial position of a business on going concern value. It tells the relationship between Assets and Liabilities and the total of both the sides are equal. 3. Balance sheet is prepared on a particular date and it shows the financial position of business on that very particular date.POSITION STATEMENT OR BALANCE SHEET Balance sheet is a statement which presents the financial position of a business on a particular date. Balance sheet has two columns. 2. It is prepared at the end of accounting period.

66 . Classification of Cash flows : According to as-3 (Revised) A cash flow statement should be presented in manner that it report inflows and outflows of cash by classifying them into three categories mainly operating. Cash receipts from royalties . investing and financial activities. 1. In short. since the idea of preparing this statements to summarize the impact of various transaction on the cash position of the firm those transactions 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. it may be said that a cash flow statement shows the sources of cash receipts and the purpose of which payments are made. Cash receipts to suppliers for goods and services. sources and uses of cash only are taken in to account and even liquid assets like debtors and bill receivable are excluded. Cash payments to and on behalf of employees. Cash flow from Operating activities : Operating activities are the main revenue generating activities of an enterprise. commissions and other revenue. say a month or year. Examples of cash flows arising operating activities are: • • • • Cash receipts from sale of goods and rendering of services. As such they include cash flows from those transactions and events which enter into the ascertainment of net profit or loss of the enterprise. When cash flow statement is prepared.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.fees .

Cash receipts from sale of fixed assets. These activities also include the purchase and of sale investments which are not included in cash equivalents. Cash payment of interest and dividend. Cash payments to acquire shares 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. not held for resale. debentures notes. 2. notes and other short term or long term borrowing. Cash repayments of amount borrowed buy back of equity shares redemption of reference shares. loans. • • • • Cash receipts from issuing shares or other similar instruments. Cash receipts of interest and dividend.• Cash receipts or refunds of income taxes unless they can be specifically identified with financing and investing activities. bonds etc. CASH FLOW FROM FINANCING ACTIVITIES: Financial activities are the activities that result in change in capital and borrowing of the enterprise. Examples of cash flows arising from financial activities are. building. Cash receipts from issuing debentures. plant and machinery etc. 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. 3. 67 . Cash flow form Investing Activities: Investing activities include the purchases and sale of long term assets such a land.

TECHNIQUES OR METHODS OF FINANCIAL ANALYSIS:8. Trend analysis 10. 13. Break even point Analysis. Fund flow statements. 9. 12. Cash flow statements. 11. Ratio Analysis. 68 . Comparative Statements. Common size Statements. 14.

the use of index numbers is generally advocated. on the other hand. For the trend analysis. • Trend Analysis In financial analysis the direction of changes over a period of years is of crucial importance. or proportional changes. shows relative. The procedure followed is to assign 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 base year. Comparative financial statements will contain items for atleast two periods. 69 . This kind of analysis is particularly applicable to the items of profit and loss account. of increase and decrease. or both. Recording percentage calculated in relation to a common base in special columns. This procedure may be called as “Trend Percentage Method”. An investigation of the comparative financial statements helps to highlight the significant facts and points out the items which need further analysis. Time series or trend analysis of ratios indicates the direction of change.COMPARATIVE STATEMENT:This is a simple method for tracing changes in the financial performance of a company. 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.

• Performa Analysis Sometimes future ratios are used as the standards of comparison. To ascertain the relative financial standing of a firm. or proforma financial statements.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. its financial ratios are compared either with its immediate competitors or with the industrial average. 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. corrective actions can beinitiated 70 . Future ratios can be developed from the projected. The comparison of the current or past ratiosshows the firm’s strengths and weaknesses in the past and the future.• Inter.

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579 2.57.31.66.52.90.2009 PARTICULAR INCOME Sales Less: Excise Duty Other income 14 SCHEDUL ES 31.11.067 1.28.96 6) 1.98.78.38.37.03.4 80 7.9 01 (11.78.40.59.08.94.47.907 10.07.026 2.76.294 6.85.27.76 4 2.5 11 2.242 31.59.2008 Increase/decrease in 15 stocks EXPENDITURE Raw material 16 consumed and 72 .47.07.06.57.30.89.34.95.03.43.2009 2.44.16.16.PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31TH MARCH.04.4 12 5.881 2.

34 8 20.86.653) 7. 10/.680 22.344) 6.00.611 (52.09.16.38.98 7 12.505 20 6 2.68.22.00.141 16.40.58.finished goods purchased Manufacturing expenses Payments and benefit to employees Administration.708 32.879 22.59.49.13.42.8 74 7.62.05.16.902) 30.76.87.77 7 40.967 (55.16.69.37 73 .95.92.52.96.86.54.41 32.712 (1.250 (21.69.91.43 4.000 343869485 4.59.96.498 50.52.37.91 6 (92.538 1.60.90.44.777 6.44 4.28.00.79 5 49.361 (2.95.000 (43.989 15.894 2.101 1.85.68.89.00.050) 7.45.38.43.86.42 7.59.92.86.826 18.21.48 5 6.920) 43.19.32.509) 6. 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 Earning per share of Rs.77.44.59.84.61.74.10.00.each Basic 7 diluted Basic & diluted Basic & dulited (considering taxation 17 18 19 18.7777 9.08.59.260 (1.000 ) 27.17.95 9.680 38.56.83.570) 16.85.

77.20.65.740 Unsecured Loans Deffered Tax 19.14.993 surplus Loan Funds Secured Loans 82.81.00.65.04.98.98.000 Reserve & 1.31.68.654 1.32.89.for previous years) BALANCE SHEET AS ON 31TH MARCH .87 3 17.57.285 1.49.914 31.29.33.22.03.2009 31.29.05.285 1.89.993 97.716 1.01.62.589 74 .2009 PARTICULAR SOURCES OF FUNDS Share holders Funds Share capital 17.2008 1.81.03.91.03.03.

656 1.12 %OI 100.313 1.55.44 905.334 7.494 5.32.30.983 4.47.26.25 -1.55.352 1.60.8 7.571 84.81.56 .450 2.812 1.337 2.38 226.14.59.087 2.417 liability 1.31.26.22.22.67.52 1116.25.93. 31-Mar09(12) Rs mn 2404.72.64.812 67.50.25.334 1.47.2008AND 2007.41.73.185 20.43.89 9.77.22.37.75.777 27.80.35.151 40.30 -29.712 20.412 70.849 28.00.16.92.34 212.00 44.49.42.42.325 1.181 84.72.32 9.19 31-Mar08(12) Rs mn 2478.89.72 209.70 %OI 100.28.34.62 8.96.01.314 provision Net current assets Total COMPARATIVE INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2009.71.74.51 1107.611 1.98.45.Loan & advance Inventories Sundry Debtors Cash & Bank Balances Loans& Advances 6.73.19 3 42.18.58.00 50.Deffered Tax Liability Total APPLICAION OF FUNDS Fixed Assets Gross block Less: Depreciation Net Block Add: Capital Work in progress Investment Currenent Assets.49.00 37.09 75 31-Mar07(12) Rs mn 2221.86.004 12.08.27.98.51.19.360.33.68 8.108 72.54.33 Net Sales (OI) Material Cost Increase Decrease Inventories Personnel Expenses Manufacturing %OI 100.41.36 220.799 85.611 Less: current 44.72.737 2.0640.30.51.65.25.575 47.52.08.49.66 18.92.33.65.59 447.01.66.068 76.11.44.687 2.

42 14.62 10.39 159.95 184.74 171.83 13.01 308.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 254.89 587.80 244.02 0.91 26.86 5.41 2.45 4.44 296.13 3.00 3.43 125.22 63.71 161.12 24.08 14.10 0.68 250.39 625.59 3.84 312.45 654.18 6.60 24.73 7.04 - 17.07 - .42 133.09 12.04 - 17.23 346.13 270.89 312.62 88.75 8.23 0.52 0.04 - Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 17.09 2.03 7.67 5.34 28.40 13.00 10.57 9.46 50.97 0.08 0.34 0.67 195.38 2.00 75.21 10.83 171.78 1.17 14.21 75.00 3.74 7.67 6.44 6.87 -2.06 336.04 - 5.62 159.26 0.17 16.03 -0.33 266.96 12.44 2.73 COMPARATIVE BALANCE SHEET STATEMENT :(RS Crores) Mar ' 09 Sources of funds Owner's fund Equity share capital Share application money Preference share capital 76 17.38 65.08 72.95 46.05 6.64 14.

13 20.02 180.30 Mar ' 08 97.02 224.45 151.46 1.73 47.02 54.10 79.70 116.92 6.95 38.67 224.63 Mar ' 05 57.82 Mar ' 06 64.06 40.70 31.81 21.55 75.38 115.08 84.49 0.75 125.92 41.19 182.19 104.22 48.55 72.84 96.32 221.06 233.34 82.94 22.78 Mar ' 07 81.45 115.64 0.39 39.24 4.55 20.13 103.84 233.76 126.14 17.94 113.03 22.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.50 27.11 31.43 66.32 15.94 124.44 131.91 134.11 0.59 54.44 105.61 57.10 151.44 221.61 85.65 16. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 171.91 48.76 77 .34 110.01 8.55 35.

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2) The liquidity position of the company is better compared to previous year. They give less attention to the needs of Indian customer. That’s why company is not able to increase its market share. 5) The main focus is on the quality of the export goods. 79 .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. 4) Profit of the company decreased drastically this year compared to previous year. Company is unable to reduce its fixed expenses.

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2. 81 . 7. Demand of Gliders is very low among ladies footwear. reviewing the training period following are some conclusion regarding the Liberty Footwear:1. After consultation. 5. Phoneix and some local companies. 3. Main competitors of Liberty shoes are Action. 6. Lakhani. Windsor in males and Senorita in female are the most popular brands. Liberty has got the largest range and variety of shoes. Bata.CONCLUSION There is always a conclusion at end of any activity or training programmed. 4. Demand of Force-10 is very low among men footwear. Liberty has gained more popularity comparatively in competition with other shoe companies. Maximum customers influences have preferred to watch Liberty advertisement between programmes. Relaxo. Woodland.

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 As some figures have not been disclosed by the company on account of confidential report.  The concerned executives were having very busy schedule.  The time duration could not provide ample opportunity to study every detail of management in the company.  There are restrictions not to visit some specific areas. 84 .LIMITATIONS Although every effort has been made to collect the relevant information through the sources available.  Estimates are based upon predictions. still some relevant information could not be gathered.

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Company should increase the investments on advertisement as it has now become more effective. 6. Company should give more emphasis on their slogan “SAPNEY AB HUE APNE “to make more effective. 5. Company should give emphasis on person attitude and perception while designing and advertisement because personal likings is more influencing factor among people. 4. Company should make their prices more competitive and should minimize the prices. 86 . 3. Company should change its time schedule on TV according to the respondent preferences. 2. Company should produce more light weight chappals and sandals and should advertise it separately so as to attract the children.SUGGESTIONS Appended below are few suggestions:1.

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New Delhi..BIBLIOGRAPHY BOOKS • • Pandey. Kalyani Publishers. New Delhi. 2007. Ed. 2007.com 89 . Vikas Publishing House Private Ltd.. Ed.libertyfreedom. “Financial Management”. I. Gupta. Manual • Annual reports Websites • • www.libertyshoes. “Management Accounting”.com www..M. Shashi K.

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GLOSSORY GROSS BLOCK Definition of gross block "The total value of all of the assets that a company owns.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. and it is not decreased to take into account the effects of depreciation. 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." When you look at the Balance sheet of a company on the Assts side there is a head called fixed assets. 91 .