Professional Documents
Culture Documents
SL.NO.
CONTENTS
PAGE NO.
CHAPTER 1
EXECUTIVE SUMMERY
3 TO 7
INDUSTRY PROFILE.
COMPANY PROFILE
NEED FOR STUDY
OBJECTIVE OF THE STUDY
RESERCH METHDOLOGY
FINDING
SUGGESTION
CONCLUSION
CHAPTER 2
8 TO 14
INTRODUCTION OF INDUSTRY
INDUSTRY PROFILE
CHAPTER 3
15 TO 34
INTRODUCTION OF COMPANY
COMPANY PROFILE
VISION, MISSION AND GOAL.
BOARD OF DIRECORS.
OBJETIVE OF SDT&TPL.
PRODUCT & SERVICE PROFILE
ORGANIZATION FLOW CHART OF SDT&TPL.
DEPARTMENT STUDIES OF SDT&TPL
CHAPTER 4
35 TO 39
RESEARCH METHDOLOGY
SCOPE OF STUDIES.
OBJECTIVE OF STUDIES
METHDOLOGY
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
CHAPTER 5
WORKING CAPITAL MANAGEMENT
40 TO 52
INTRODUCTION
MEANIG OF CAPITAL.
FORM OF CAPITAL
MEANING OF WORKING CAPITAL
NEED OF WORKING CAPITAL
NATURE OF WORKING CAPITAL
FACTORS DETERMINING WORKING CAPITAL
REQUIREMENTS.
FINANCING OF WORKING CAPITAL
WORKING CAPITAL COMPOSITION.
CHAPTER 6
53 TO 70
DATA ANANLYSIS AND INTERPRETATION
CHAPTER 7
FINDINGS
SUGGESTIONS
CONCLUSIONS
71TO 77
ANNEXURE
BALANCE SHEET
BIBLOGROPHY
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
EXECUTIVE SUMMARY
TITLE OF THE PROJECT
WORKING CAPITAL MANAGEMENT
Organization: SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED.
INDUSTRY PROFILE:In the 3500 BC fixed wheel chart are invented first wheel vehicles in
history .Other early wheel vehicles included the carious. The wheel vehicles were used for
the traveling purpose. Littleton area first began to be settled in 1862, there were two principal
forms of transportation available: walking and either riding or being pulled by a horse. There
were no roads to speak of, only old Indian trails which had been widened and packed hard
by the increased usage of white men. Their after in air India has came in 19 th century. Air
Indian has first Government sector company in India .It was introduced long year ago in
India And there after many private air lines comes in India .The airlines has developing the
service sector in India by providing tours and traveling facility to the customer. In 19 th
century many tours & Travels Company introduce in India. Air Deccan is continues to be one
of the faster growing commercial passenger airlines today .Air Deccan company has
developed tours & travels sectors to provide various facility to the tours & travels facility
company.
Company profile:SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED (SDT&TPL) is situated
at Makwana Road Andheri (East) in Mumbai; State Maharashtra .Shree Dayal Tours &
Travels Pvt Ltd is a medium scale of Tours & Travels service providing company. Shree
Dayal Tours & Travels Pvt Ltd was incorporated in the year 2001. Shree Dayal Tours &
Travels Pvt Ltd was set up in the year of 2001, 17 August. The Registration number is U
63040 MH 2001 PTC 133094. The registered office of the company will be situated in the
state of Maharashtra i.e. within the jurisdiction of registrar of companies at Mumbai. Shree
Dayal is a Tours & Travels company. I have undertaken my study in area of working capital
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
in order to get the basic understanding and information regarding the tours & traveling
company.
To increase day-to-day expense and overhead costs like power and office expense etc.
SCOPE FOR THE STUDY:This project acts as a reference guide or as a source of information. It gives the
idea about the financial analysis and working capital of the firm. The main scope of the
study was to put into practical the theoretical aspect of the study into real life work
experience. The study deals with analysis and interpretation of the data collected through
the sources of primary and secondary data for a period of five financial years. I.e.
2004-2005, 2005-2006, 2006-2007, 2007-2008 and 2008-2009 Graphs, diagrams and
tabulation methods are used to analyze and interpret the data collected. It will help to
understand the companys liquidity position.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
This study deals only with the data made available. Hence the result of this study
cannot judge the business of the firm in general
The study have been influenced by the limitation of the ratio analysis
The study extensively uses the data provided is the financial reports of the firm which
may also have their own limited perspective
The analysis made on the working capital management is for a particular period of
time the current assets and current liabilities will change for an analysis made at any
other of time.
METHODOLOGY:
.
Primary Sources:
Primary sources include information collected through discussion with the concerned
departmental persons i.e. Mr. Parihar and Mr. Manoj.R
Secondary Sources:
I was used secondary sources also for collecting the data. They are:
Sampling unit
: Financial Statements
Sampling Size
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
The net working capital has declined in the year 2007-2008 and but the profit of the
Suggestion: In the year 2007-2008 the current assets of the Shree Dayal tours and travels Pvt Ltd has
declined and current liability of the company has increases there for the net working capital
declined. There for the current ratio has declined. The net working capital of the company
has increased remaining year .But profit has increased because the sales has increased in the
year 2007-2008.
The company has abled to repay the liability of the creditors because of the current
ratio of SDT&TPL is above the standard of current ratio i.e. 2:1. The profit of the
company has increased every year.
Conclusion:The Shree Dayal tours & travels Pvt Ltd has profit orient company and
company has to able to the repay of his lability.The company have sufficient reserve and
surplus and reserve and surplus has increases every year. After going through the
different aspects of the industry departments and the awards it has received in different
fields. There is good relationship between the directors and employee. The management
concerned about employees complete health and wealth.
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INDUSTRY PROFILE.
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INDUSTRY PROFILE
.
HISTORY:Littleton area first began to be settled in 1862, there were two principal forms of
transportation available: walking and either riding or being pulled by a horse. There were no
roads to speak of, only old Indian trails which had been widened and packed hard by the
increased usage of white men. This did not change for nearly a decade. As farfetched as it may
sound, the early South Platte valley settlements had a legacy of steamboat travel. The Rocky
Mountain News regularly published the arrivals and departures of various river boats, and saw
to it that major east coast newspapers reprinted them. Was the South Platte River deeper then?
No. This was just one of many schemes dreamed up by News editor William Byers to boost
settlement in Colorado Territory -- by the time greenhorns discovered the deception, they were
in St. Louis, more than half-way here. The only "real" traffic on the South Platte, then or since,
were shallow-draft barges and canoes carrying beaver and buffalo hides to Missouri markets.
Steam-powered transportation did reach Littleton in 1871, when tracks of the Denver and Rio
Grande Railroad were completed to a siding at Richard littles farm. On August 24, the engine
Montezuma brought the Mayor of Denver and assorted dignitaries to the end of the line. The
striking beauty of the area elicited such enthusiasm that the railroad added a public excursion
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
two days later, a Sunday, and sold out at $2.50 for the round trip. This began a long
relationship between the citizens of Denver and the "resort" community of Littleton.
Three years later, the Denver, South Park and Pacific Railroad laid tracks on the west bank of
the South Platte River, putting Littleton on the most direct route to the Leadville mining
district. In 1887 the Atchison, Topeka and Santa Fe pulled into town from Pueblo, joining
several smaller and/or short-lived lines. In 1889, one observer along the tracks wrote, "...we
counted twelve trains as they passed to and fro inside an hour. No one has any idea of the
monster traffic on these two roads until they go and look for themselves." At its peak, Littleton
boasted twenty-four scheduled stops a day for passengers and freight.
In the 1890s, during the height of railroad popularity, another transportation craze swept the
country -- bicycling. Although bicycles, or velocipedes as they were originally called, had
been around since the 1860s, the invention of pneumatic rubber tires and friction brakes
made it a household item. Denver led the craze, boasting the highest per capita bicycle
ownership in the country. Among the many popular bike paths constructed was south from
Denver along the city ditch to Littleton. Once there, many cyclists picnicked in the shade
surrounding the Sunshine and Shadow Inn or watched the bike races around the Inn's track,
while the more adventurous continued south to Palmer Lake and back, completing a
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
extended across the South Platte River, south of Bowles Avenue. For a time, the Littleton
route included the famous "Cherrelyn" street car on south Broadway, where a horse assisted
the motors going up a steep grade, then climbed aboard and rode on the car during the
descent. The streetcar line was abandoned in 1926 in favor of cheaper o run and more
flexible buses.
Air Indian has first government sector company in India .It was
introduced long year ago in India And there after many private air lines comes in India .The
airlines has developing the service sector in India by providing tours and traveling facility to
the customer. In 19th century many tours & Travels Company introduce in India. Air Deccan
is continues to be one of the faster growing commercial passenger airlines today .Air Deccan
company has developed tours & travels sectors to provide various facility to the tours &
travels facility company. The airlines company has given registration to the tours & travels
company to sell his air ticket and developing the tourisms in country. All airline operators
and the competition continue to be stiff among all operators putting pressure on yields. The
future growth of air travels within to and from India will continue to depend on the growth of
the Indian economy. The companys scheduled airlines business continued to grow in all
areas of its operations and your company is a significant player in the Indian domestic
aviation and tours & travels sectors. It has also achieved the distinction of becoming the
carrier with the widest reach covering more destinations then any other domestic carrier.
An Indian airline has succeeded in changing the face of the aviation and tours and travels
sectors in India. It has succeeded in enlarging the market for air travels and has turned air
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
travels into a mass commodity. Passengers traveling with tickets not issued from the
departure station on the below classes will be entitled for hotel accommodation, if available.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
concerns in fifteen hundred different languages, India is where people live with
variety, thrive on diversity and are too familiar with largeness to let it boggle them.
Mud huts and mansions face off across city streets. Lurid luxury and limp living are
inhabitants of the same lane.
History of Transportation
3500 BC
3500 BC
2000 BC
181-234
770
1492
1620
1662
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1783
1783
1787
Steamboat invented
1769
1790
1801
1807
1807
1814
1862
1867
1868
1871
1885
1899
1903
The Wright Brothers invent and fly the first engined airplane
1907
1908
1908
1926
1940
1947
1956
Hovercraft invented
1964
1969
1970
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
1981
COMPANY PROFILE.
VISION, MISSION AND GOAL
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
BOARD OF DIRECTORS
OBJECT OF SDT&TPL
PRODUCT & SERVICE PROFILE
DEPARTMENT STUDIES.
ORGANIZATION FLOW CHART
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Ms.Babita Choudhary.
Mr. Suresh S.Choudhary
Tours Product.
CLIENTS OR CUSTOMERS
COMPETITORS
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
NUMBER OF SHIFTS
General Shift:
9-00 AM to 6-00 PM
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
book reserve and secure for and on behalf of the constituents of the company ,Room and
boarding and lodging accommodations in hotels ,restaurants and boardings houses and to
handle cargoes ,goods ,luggage or baggages and also to book ,and secure accommodations
including boarding and lodging accommodations in resorts on behalf of guests or customers
of the company.
There is another industry in the Campus of Shree Dayal Tours & Travels Pvt Ltd
which is a husband concern Dayal Impax private Limited was established in the year 2003.
Dayal Impax private Limited has cloth stitching company .This company has taking order from
the supplier and prepare a cloth.
This company has provided many offer more than 15 leisure tour product to
Singapore and Europe, more than 10 to south East Asian and is the Domestic and
international tour operator in Indian tours. Shree Dayal tours & Travels Pvt Ltd also takes
pride in being consistently innovation in the tourisms industry.
The Shree Dayal Tours & Travels Private Limited is customer focused and
Quality oriented Service unit, which is continuously strive to services to meet its external
customers requirements. The main goal of the company is to giving full satisfaction to
the customer and providing good quality of service, enhancing to improve the services
and make company more competitive.
The Shree Dayal Tours & Travels Private Limited has specialized divisions
to cater to the needs of all types travelers, whether it is a guest looking for the safety and
security of escorted group tours, or someone seeking exclusive customized holidays or the
business traveler .We offer our guests a range of allied travel services such as air ticketing,
Visa, Foreign exchange and hotel booking at one stop for their convenience.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Company has issue domestic and also international flight ticket booking to the people on
the basis of the commission. The company has issue more flight ticket booking of that
company those who are give high commission to The Company .The Company has issued
or booking of the Domestic air ticket railway ticket, booking of hotel and give rent on car
The Company has also provided helicopter service facility to the people. The company has
also sold many tours product to the people for his tour convenience purpose. The company
has offered many tours product to the people. The company was offered world tours as well
as Indian tours to the people.
The company has offered tours product like Second Inning tours, Sport tours,
Honeymoon tours, Education tours, and Business tours to the people . The different Air
lines company has given different commission rate to the company. If the company has
ticket booked of Jet Air ways, Spice jet and go air Airline Company then SDT&TPL
Company will get 6% transaction fees. And remain Air ways like kingfisher, Indian
airlines; indigo and air Deccan air ways will get 3% transaction fees on booking of flight
ticket.
World Tour
Indian Tour
Tashken
t - WA
4 Days 3
Nights
Bali - WB
4 Days 3
Nights
Dubai WD
4 Days 3
Nights
Hong
Kong WH
4 Days 3
Nights
Bangkok
- WK
4 Days 3
Nights
London WL
4 Days 3
Nights
Mt. Abu W1
Varanasi
Allahaba
d - W2
4 Days 3
Hotel
Nights
Nilgiri
Hills-W3
Bhubanes
war
Konark
Puri-W4
4 Days 3
Hotel
Nights
4 Days 3
Hotel
Nights
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4 Days 3
Hotel
Nights
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Mauritiu
s - WM
4 Days 3
Nights
Amsterda
m WN
4Days
3Nights
Paris WP
4 Days 3
Nights
Srilanka WR
4 Days 3
Nights
Singapor
e - WS
4 Days 3
Nights
Turkey WT
4 Days 3
Nights
4 Days 3
Hotel
Nights
Maldives
- WV
4 Days 3
Nights
Samarkan
d Bukhara
- WX
4 Days 3
Nights
Pondicher
ry
Mahabalip
uram-W9
Goa-W5
4 Days 3
Hotel
Nights
Katra
Vaishnode
vi-W7
4 Days 3
Hotel
Nights
Khajuraho
Jabalpur
BedaghatW6
4 Days 3
Hotel
Nights
Jaipur-W8
4 Days 3
Hotel
Nights
Cochin
Munnar-W
C
4 Days 3
Hotel
Nights
Kingfisher Red.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Jet Airways
Indian Airlines.
Spice Jet.
Indigo
Go Air
Air Deccan
AIRLINE NAME
Singapore Airline
Silk Air
Continental Airline
Sri Lankan Airline
Dragon Air
Royal Dutch Airline
Kenya Airways
Air Canada
Korean Air
Thai Airways
Northwest Airlines
American Airlines
Qatar Airways
Air India
Air One
Bangkok Airways
Gulf Air
PREFIX
SQ
MI
CO
UL
KA
KL
KQ
AC
KE
TG
NW
AA
QR
AI
AP
PG
GA
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CODE
618
629
005
603
043
074
706
014
!80
217
012
001
!57
098
867
829
084
22
WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Air Mauritius
Jet Airways
LAN Chile
LAN Peru
LAN Argentina
Austrian
Philippine Airlines
Swiss Airline
Royal Jordanian
South African Airways
Virgin Atlantic
Saudi Airlines
Egypt Airlines
Japan Airlines
Air China
British Airways
Indian Airlines
China Airlines
Turkish Airlines
Air New Zealand
Kuwait Airlines
Air France
China Southern
Kingfisher
Oman Air
EVA Air
Biman Airlines
Air Portugal
Iran AIR
Air Astana
Delta Airlines
Pakistan Airlines
Virgin Blue
MK
9W
LA
LP
4M
OS
PR
LX
RJ
SA
VS
SV
MS
JL
CA
BA
IC
CI
TK
NZ
KU
AF
CZ
IT
WY
BR
BG
TP
IR
KC
DL
PK
DJ
239
589
045
544
469
257
079
724
512
083
932
065
077
131
999
125
297
297
235
086
229
057
784
090
910
695
997
047
096
465
006
214
856
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Economic class.
1:-BUSINESS CLASS FLIGHT FAIR
Sr.no
STATE
AIRLINES
CODE
Included
TAX Total
America
Delta Airline
BOM/JFK/EWR
738188
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Australia
Sri Lanka
Canada
Newzland
South Africa
Qantas Air
Srilanka
Jet Airways
Singapore
Kenya Airlines
242710
49398
242769
207534
122155
England
Mexico
Saudi Arabia
Nepal
Etly
China
Russia
France
Germany
Kolalampur
Singapore
Dubai
Turkey
Luptansa
Delta Airline
Air India
Jet Airways
KU
9W
Aeroflot
Air France
Luptansa
Malaysia
Singapore
Emirates
Turkey
BOM/LHR/MAN
BOM/ MAX /BOM
BOM/ RUH/BOM
BOM/ KTM /BOM
BOM/ RWI/ ROM/
BOM/PVG/BOM
BOM/ SVO /BOM
BOM/CDG /BOM
BOM/ FRA/ MAM
BOM/KUL/BOM
BOM/ SIN/BOM
BOM/DXB/BOM
BOM/IST/BOM
274005
572192
44181
71545
221434
120193
104055
234146
236212
86602
83709
86758
226453
Bangkok
Bk
BOM/BKK/Bom
2:-ECONOMY CLASS FLIGHT FAIR
62894
Sr.no
STATE
AIRLINES
CODE
Included
Total
1
2
3
4
5
6
America
Australia
Sri Lanka
Canada
Newzland
South Africa
Delta Airline
Qantas Air
Srilanka
Jet Airways
Singapore
Kenya Airlines
BOM/JFK/EWR
BOM /SYD/ MEL/
BOM/ CMB/BOM
BOM/ YYZ/BRU
BOM/AKL/BOM
BOM/JNB/BOM
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110138
183545
28534
144482
63152
83592
24
TAX
WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
7
8
9
10
11
12
13
14
15
16
17
18
19
20
England
Mexico
Saudi Arabia
Nepal
Etly
China
Russia
France
Germany
Kolalampur
Singapore
Dubai
Turkey
Bangkok
Luptansa
Delta Airline
Air India
Jet Airways
KU
9W
Aeroflot
Air France
Luptansa
Malaysia
Singapore
Emirates
Turkey
Bk
BOM/LHR/MAN
BOM/ MAX /BOM
BOM/ RUH/BOM
BOM/ KTM /BOM
BOM/ RWI/ ROM/
BOM/PVG/BOM
BOM/ SVO /BOM
BOM/CDG /BOM
BOM/ FRA/ MAM
BOM/KUL/BOM
BOM/ SIN/BOM
BOM/DXB/BOM
BOM/IST/BOM
BOM/BKK/Bom
78690
271088
28867
29199
82320
42068
79061
91781
72044
39377
27324
47123
50696
40060
Vision
S.e xe
Spreading Smiles Happiness and Joyful life to People and Developing the
Business in a country.
Mission
Shree Dayal Tours & Travels is passionately committed to quality travel, with
continual delivery of value added services .We upholds the highest ethical
standards and believes in creating new benchmarks in the industry.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Goals
Main goal of company
To earn a profit.
To providing good quality of services to people.
To attracting new and new customer.
To service can not stop any boundary.
BOARD OF DIRECTORS
Ms.Roli Choudhary.
Ms.Babita Choudhary.
Mr. Suresh S.Choudhary.
MANAGING OF DIRECTOR
Mr.Pawan S.Choudhary
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
STATUTORY AUDITORS
BANKERS
RIGISTER OFFICE
207 ARK Industrial Estate
Makwana Road, Marol Naka
Andheri (East)
Mumbai-400058.
To run manage or carry on the business of taxi cars, deluxe coaches ,lorries , cars ,trucks,
airships wagons ,rail , motors vessels, ferries ,boats and other vehicles propelled by
electricity, gas ,gasoline compressed air steam ,manned power ,mechanized power, oil
,crude oil, automatic or other energy or by whatsoever means and from any place or
another whether within India or otherwise for the purpose of carrying conveying
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
To insure with any persons or company, against losses, damages, risks and liability of
any kind which may effect the company either wholly or partially and if thought fit to
effect any such insurance by joining or becoming members of any mutual insurance,
protection or indemnity association federation or society and to accept any such
insurances or any thereof for the account of the company.
To procure information for as to the standing and responsibility of parties with whom
they propose to transact business.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
3. Honeymoon Tours.
4. Holiday after Holiday Tours.
5. Sports Tours.
6. Chillax Tours.
7. Business Tours.
8. Thrillax Tours.
1)
Second Inning Tours:An exclusive tour for senior citizens is fully of masti mazz & magic .its a
great way to discover a holiday experience that is truly unique and great opportunity
to meet seniors from different walks of life.
2)
Educational Tours:Educational tours take teaching out of the textbooks. its gives wonderful
opportunity to learn about various historic event and key location.
3)
Honeymoon Tours:Honeymoon tours will give the wonderful happy moment for life time
and that make happy to the life partner.
4) Holiday after Holiday Tours:Holiday after holiday tours will give advance tours information to the
people those who again enjoy to holiday.
5) Sports Tours:Sport tours just for the vacationer who want s to combine holiday cheer with
edge of the seat sporting encounter.
6) Chillax Tours:This tour is perfect respite from work stress and the daily grind. Specially
tailored to put the spring back into your stride, itsyour chance to let your hair down and
indulge in the unexpected. Just make sure your boss hasnt.
7) Business Tours:-
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
This tours facility sports enthusiasts this one will have you cheering SDT&TPL
introduces sports tours tailored just for the vacationer who want to combine holiday cheer
with edge of the seat sporting encounter.
8) Thrill ax adventure tours:Thrill ax vacation a new SDT&TPL special tours product and life will never
be the same again. Feel your adrenaline pumping as you hurtle over white water Rapides.
The discovery skill you never knew you possessed, climbing rock faces because its
about time you stopped existing and started living.
DEPARTMENT STUDIES
Finance Department.
Marketing Department.
Air Ticket Booking Department.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
1) Finance Department
Finance is an essential component of the business to maintain its operations effectively.
This dept. is concerned with day-to-day activities like purchases, sales salary etc. and proper
management and maintenance of accounts of concerned year.
Factions
Day to day/ bank transactions.
Bill passing and payment
Recovering all transactions in books of accounts
Preparations of cash Balance statement.
Bank Reconciliation.
Preparation of Inflow and out flow of cash statement.
Providing various types of management Information system reports required by management
from time to time
Carry out auditing.
2) Marketing Department :Among all the functional areas of management marketing are play vary important t role
for selling product of the company. The with marketing Department the company can sold
product to the customer or public.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Factions
Booking of Ticket.
To give the information regarding the Air lines.
To give the information regarding the fair price or low price airlines.
4) Hotel Booking Department:Hotel booking department is important because the people booking through the tours &
travels company .The hotel booking department has given full information regarding the hotel to
the customer .Hotel booking department has knowledge about each hotel and which types of
service provide to the customer.
Factions
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
To give the information regarding the fair price and better service providing hotel.
5) Billing Department:Billing department has prepared a bill of airline & hotel. The billing department has
prepared the day to day booking of airline, hotel and other service provided by company .to the
customer.
Factions
Preparing Bill of airline ticket booking per day.
Preparing Bill of hotel booking per day.
6) Forex Department:Forex department is doing transaction of foreign exchange. The forex
department is handling day to day transaction of foreign exchange .The forex department has
prepared the visa and also change the currency of tourist those who want go other country for
tourism purpose.
Factions
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
MANAGING DIRECTOR
____________________________________________________
____________
Forex ___
Department
Finance Department
Senior. Finance
Manager
Marketing Department
Ticket Booking
Department
Hotel Booking
Department
Hotel Ticket
Booking Manager
Marketing Manager
Billing Department
Billing Prepare
Manager
Forex Department
Foreign Exchange
Manager
Foreign Exchange
Manager
____________________
Assistant. Finance
Manager
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
This study deals only with the data made available. Hence the result of this study
cannot judge the business of the firm in general
The study have been influenced by the limitation of the ratio analysis
The study extensively uses the data provided is the financial reports of the firm which
may also have their own limited perspective
The analysis made on the working capital management is for a particular period of
time the current assets and current liabilities will change for an analysis made at any
other of time.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Methodology
The data in this project is enabling in secondary in nature. Financial reports, company
records were referred for data analysis. The study has been undertaken by collecting relevant
data from the balance sheet, profit and loss a/c, annul report & Audit report of the shree Dayal
tours & travels Pvt ltd. the company is used financial tools for the analyzing and interpretation
data.
However primary data is also collected by observation discussing with company officials.
This primary data is used to fill in the gaps while preparing this report and to know the latest
procedures adopted by the company. This has helped to draw inferences and conclusions.
Sources of data
There are two types of data
Primary Data
Secondary Data
Primary Data:The primary data are those, which are collected fresh for the first time
and thus happen to be original in character. The primary data collection involves the
collecting of information for the first time by observation, experimentation, and
questionnaire and through interview schedules in the original form by the researcher himself
or his nominees.
Plan of action
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
The primary data was collected through discussion with the finance manager using the
interview schedule. This data was obtained to study the latest procedures relating to working
capital management and ratio analysis system followed by the company
Secondary data:The secondary data are those, which have been collected by some other and which
have been processed. Generally speaking secondary data are information, which have been
previously collected by some organization to satisfy his own need. But the department under
reference for an entirely different reason is using it.
I was used secondary sources also for collecting the data. They are:
Sampling unit
Sampling Size
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
MEANING OF CAPITAL
FORM OF CAPITAL
MEANING OF WORKING CAPITAL
TYPE OF WORKING CAPITAL
NATURE OF WORKING CAPITAL
FACTORS DETERMINING WORKING CAPITAL
REQUIREMENTS
FINANCING OF WORKING CAPITAL
COMPONENTS OF W.C
WORKING CAPITAL COMPOSITION
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
CAPITAL
Introduction:Capital is the keynote of economic development. In this modern age, the level of
economic development is determined by the proportion of capital available.
Meaning of Capital:In the ordinary sense of the word Capital means money. But in economics, Capital
has a special meaning. All those man made goods used in the production process is called
capital.
Definition:Capital consists of all kinds of wealth, other than free gifts of nature which yield
income.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
6. Capital is a scarce.
7. Capital is a passive factor.
Equity Capital
Debt Capital
Specialty Capital
1* Fixed Capital.
2* Working Capital
Equity Capital :Otherwise known as net worth or book value, this figure
represents assets minus liabilities. There are some businesses that are funded entirely
with equity capital (cash written by the shareholders or owners into the company that
have no offsetting liabilities.) Although it is the favored form for most people because
you cannot go bankrupt, it can be extraordinarily expensive and require massive amounts
of work to grow your enterprise. Microsoft is an example of such an operation because it
generates high enough returns to justify a pure equity capital structure.
Debt Capital
:-
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
interest in exchange for you using their money. Think of interest expense as the cost of
renting the capital to expand your business; it is often known as the cost of capital.
For many young businesses, debt can be the easiest way to expand because it is
relatively easy to access and is understood by the average American worker thanks to
widespread home ownership and the community-based nature of banks. The profit for the
owners is the difference between the return on capital and the cost of capital.
Specialty Capital :This is the gold standard. There are a few sources of capital that have
almost no economic cost and can take the limits off of growth. They include things such
as a negative cash conversion cycle (vendor financing), insurance float, etc.
Negative Cash Conversion (Vendor Financing) Imagine you own a retail store. To
expand your business, you need $1 million in capital to open a new location. Most of this
is the result of needing to go out, buy your inventory, and stock your shelves with
merchandise. You wait and hope that one day customers come in and pay you. In the
meantime, you have capital (either debt or equity capital) tied up in the business in the
form of inventory. Now, imagine if you could get your customers to pay you before you
had to pay for your merchandise. This would allow you to carry far more merchandise
than your capitalization structure would otherwise allow. AutoZone is a great example; it
has convinced its vendors to put their products on its shelves and retain ownership until
the moment that a customer walks up to the front of one of AutoZones stores and pays
for the goods. At that precise second, the vendor sells it to AutoZone which in turn sells it
to the customer. This allows them to expand far more rapidly and return more money to
the owners of the business in the form of share repurchases (cash dividends would also be
an option) because they dont have to tie up hundreds of millions of dollars in inventory.
In the meantime, the increased cash in the business as a result of more favorable vendor
terms and / or getting your customers to pay you sooner allows you to generate more
Income than your equity or debt alone would permit. Typically, vendor financing can be
measured in part by looking at the percentage of inventories to accounts payable (the
higher the percentage, the better), and analyzing the cash conversion cycle; the more days
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
negative, the better. Dell Computer was famous for its nearly two or three week
negative cash conversion cycle which allowed it to grow from a college dorm room to the
largest computer company in the world with little or no debt in less than a single
generation.
Float
Insurance companies that collect money and can generate income by
investing the funds before paying it them out in the future in the form of policyholder
payouts when a car is damaged, or replacing a home when destroyed in a tornado, are in a
very good place. As Buffet describes it, float is money that a company holds but does not
own. It has all of the benefits of debt but none of the drawbacks.
His most important consideration is the cost of capital that is, how much
money it costs the owners of a business to generate float. In exceptional cases, the cost
can actually be negative; that is, you are paid to invest other peoples money plus you get
to keep the income from the investments. Other businesses can develop forms of float but
it can be very difficult.
Sweat Equity
There is also a form of capital known as sweat equity which is when an owner
bootstraps operations by putting in long hours at a low rate of pay per hour making up for
the lack of capital necessary to hire sufficient employees to do the job well and let them
work an ordinarily forty hour workweek. Although it is largely intangible and does not
count as financial capital, it can be estimated as the cost of payroll saved as a result of
excess hours worked by the owners. The hope is that the business will grow fast enough
to compensate the owner for the low-pay, long-hour sweat equity infused into the
enterprise
. 1. Fixed Capital
:-
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Fixed capital is one, which can be used in production again and again for a long
period. In other words, fixed capital is the capital, which can be used over and over in the
process of production. It is a capital, which is durable and can be used over a long period of time.
For example: - Machinery, building, tools, implements etc.
2. Working Capital :Working Capital is the capital which can be used only once in the process of production.
In other words, It refers to capital which can be used only once in production. It loses its utility
after a single use.E.g: - Raw material, Coal and petroleum, Payment of wages etc.
INTRODUCTION
As every enterprise knows that, working capital is the lifeblood and control
of nerve center of the business. Just as circulation of blood is the essential for
maintaining life, working capital is also essential for maintaining the smooth running of
the business.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
administrating accounts receivables and monitoring the investments also a great deal of
time.
In Accounting:
Working capital is the difference between the inflow and outflow of funds. In other
words, it is the net cash inflow
Thus it is defined as
The excess of current assets over current liabilities and provisions.
Working capital is a liquidity (cash) concept. A business might show a "profit," but if it
cannot maintain a positive cash position (that is, having money in the bank to pay bills
each month), the business cannot continue to operate.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Positive working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable to meet its
short-term liabilities with its current assets.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
The Gross Working Capital (also known as circulating capital, operating capital or
current capitals) represent the quantitative aspect of Working capital since it concerns with the
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
total value of current assets to be held by the company. The management of Gross working
capital is a short-term phenomenon involving a continuous study of the fluctuation in investment
in current assets. The aim is to neither maintain the level of current assets at proper level neither
at a high level involving unnecessary costs nor at a low level threatening. Production needs.
Current assets include cash in hands, bank balance, bills receivables, sundry debtors, short-term
loans advances, inventories and marketable seventies.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Working capital management refers to the administration of all aspects of current assets. If has
been observed that a creation of financial manager time is utilized in the management of working
capital. It is devoted for raising working capital and managing it efficiently.
Nature of Business Seasonality of operations Market Condition Supply condition C.A C.L
.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Trade Credit
Share Capital
Bank Credit
Public Deposits.
Factoring
Bank Financing of Inventory
Working Capital Financing
Cash management
Receivables management
CASH MANAGEMENT
Cash is the liquid form of an asset. It is the ready money available in the firm
or with the business, essential for its operations. A firm needs the cash for the following
three purposes:
Transaction Motive: The firm must and should keep the funds for transactions like
purchase, sales etc. These activities, which are not known in advance, are not considered
while preparing a cash budget.
Precautionary motive:
commodity prices, security prices, interest rates etc. The company with surplus cash is in
a better position to exploit such situations.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
RECEIVABLES MANAGEMENT
Receivable represents amounts owed to the firm as a result of sale of goods or
services on the ordinary course of business. These are claims of the firm against its
customers and form part of its current assets. These receivables are carried for the
customers. The period of credit and extent of receivables depends upon the credit policy
followed by the firm. The main purpose of maintaining or investing in receivables is to
meet competitors, to increase sales, and to maintain a cordial relationship with the clients.
Receivables management is the process of making decisions relating to
investment in trade debtors. However, at the same time, investment in this current asset
involves cost considerations also. Therefore, there is always a risk of bad debts too.
Credit Evaluation
There are three approaches used for credit evaluation. These are:
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
profitability requires that the current assets should be kept at low levels and that too in form,
which will contribute to production. By proper planning the opposing objectives can be
recognized and made to compliment each other.
Keeping liquidity at adequate levels helps the managers to concentrate on
production in a congenial atmosphere and by increase the efficiency of functioning. This leads to
greatly profitability, since the profits ultimately constitute the sources of repayment of the
companys dues, higher profits increase the liquidity of the concern.
Conclusion:Thus the chapter states that the objectives of liquidity and profitability seem to
operate in opposite directions, while liquidity requires large current assets to be kept and
profitability requires the current assets should be kept at low levels, which will contribute to
production.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Ratio Analysis
1) Net Working Capital:Net working capital is the difference between current assets and current Liabilities.
Years
2004-05
2005-06
2006-07
2007-08
2008-09
Current Asset
26352381.81
30087971.00
46858833.00
44389218.00
62495041.00
Current Liabilities
6122630.12
6843164.00
9979106.00
12123368.00
11527167.00
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NWC
20229751.69
23244807.00
36879727.00
32265850.00
50967874.00
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
INTERPRETATIO:In The year 2004-05 the company has 20229751.69 N.W.C. In the
year 2005-06 the N.W.C is 23244807.00 and in the year 2006-07 the company has
36879727.00.NW.C But in the year 2007-08 the company has 32265850.00 N.W.C but
the N.W.C has decline drastically compared to the previous years, but in the year
2008-09 the company has 50967874.00 N.W.C that means the company in a favorable
position & N.W.C has improved vary fast as compared to the previous years which show
liquidity Position of the Shree Dayal Tours & Travels Pvt Ltd has always more &
sufficient working capital available to pay off its current liabilities.
2. Current Ratio:Current ratio is a measure of firms short-term solvency. This ratio is also known as
working capital Ratio. Current ratio is a measure of general liquidity and is most widely used to
check the relationship of the current assets and current liability. The standard current ratio is 2:1.
Current Ratio = Current Assets
Current Liabilities
Years
Current Asset
Current Liabilities
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Ratio
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2004-05
2005-06
2006-07
2007-08
2008-09
Diagram:
26352381.81
30087971.00
46858833.00
44389218.00
62495041.00
6122630.12
6843164.00
9979106.00
12123368.00
11527167.00
4.304
4.397
4.696
3.661
5.422
INTERPRETATION:The current ratio was 4.304 in the year 2004 2005 and the year
2005-2006 the current ratio was 4.397 and in the year 2006 -2007 the current ratio was 4.696 this
show the current ratio has increase every year but in the year 2007-2008 the current ratio was
decreased to 3.661.in the year 2008 2009 the current ratio has increases 5.422 .The current
ratio is above the standard of 2: 1 ratio and hence it can be said that there is enough working
capital in Shree Dayal Tours & Travels Pvt Ltd to meet its current liabilities.
3. Absolute Liquidity Ratio:Concept: Absolute liquidity ratio is a ratio of cash in hand and cash at bank to current liabilities. The
standard ratio is 0.5: 1.
Absolute liquidity Ratio = Cash in hand + Cash at bank
Current Liabilities
Years
2004-05
Cash in hand
322305.70
Cash at bank
600000.00
Current Liabilities
6122630.12
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Absolute
Liquidity Ratio
0.15
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2005-06
2006-07
2007-08
2008-09
151478.00
125254.00
95663.00
64627.00
600000.00
600000.00
600000.00
600000.00
6843164.00
9979106.00
12123368.00
11527167.00
0.10
0.07
0.05
0.05
Diagram: -
INTERPRETATION:The absolute liquidity ratio was 0.15 in the year 2004-2005 and decreased
to 0.10 in the year 2005 2006 and it does not increase further up to 2008-2009.But in the year
2007 -2008 and 2008-2009 it was same. The absolute liquidity ratio is below the standard of 0.5:
1 ratio. It shows that the liquidity position of the concern is unsatisfactory
4. Liquidity Ratio or Liquid ratio:Concept: This ratio indicates very short term or immediate or very instant financial position.
Liquidity Ratio = Quick Assets
Quick Liabilities
Years
2004-05
2005-06
2006-07
2007-08
Current Assets
26352381.81
30087971.00
46858833
44389218.00
Current Liabilities
6122630.12
6843164.00
9979106.00
12123368.00
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Liquidity Ratio
4.30
4.40
4.70
3.66
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2008-09
62495041.00
11527167.00
5.42
Diagram: -
INTERPRETATION:The absolute liquidity ratio was 4.30 in the year 2004-2005 and increases to 4.40 in the
year 2005 2006 and 4.70 in the year 2006-07, 3.66 in the year 2007-2008 it was decrease due
to increase of labilities.But in the year 2008 -2009 the L.R has increased 5.42 because the C.L
has decreased. The liquidity ratio is above the standard of 1: 1 ratio. It shows that the liquidity
position of the company is satisfactory.
5. Return on Current Assets:Concept: This ratio indicates the amount of current assets employed in the working capital of the
assets employed in the working capital of the firm as to run the day to day operations of the firm
which helps the firm for its easy flow of goods in the trading activity.
Return on Current Assets = Profit after Tax
Current Asset
Year
2004 2005
2005 2006
2006 2007
2007-2008
Current Asset
26352381.81
30087971.00
46858833.00
44389218.00
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Ratio
0.016
0.014
0.012
0.019
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2008-2009
1039889.00
62495041.00
0.016
Diagram: -
INTERPRETATION:The Returns on current assets was 0.016 in the year 2004-2005 and it
decreased to 0.12 in the year 2006-2007. It further increased to 0.019 in the year 2007-2008 and
further decreased 0.016 in the year 2008-2009 .It shows that profit will increase then asset
turnover ratio will decline then C.A will increase but in the year 2007-2008 asset ratio was
increased 0.19 because C.A has fall that year. Company has profit transferred to the reserve and
surplus Account shown in balance sheet..
6. Current Asset Ratio:Concept: This ratio measures sales per rupee of investment in current assets. This ratio
measures the efficiency with which current assets are employed a high ratio indicates a high
degree of efficiency is asset utilization and a low ratio reflects inefficient use of current assets.
Current Asset Ratio =
Net Sales
Average Current Assets
Year
Sales
2004 2005
102199181.00
Average Current
Asset
19967762.36
2005 2006
132858985.00
28220176.41
4.70 time
2006 2007
171671451.00
38473402.00
4.46 time
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Ratio
5.11 time
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2007-2008
2008-2009
221246824.00
286246257.00
45624025.5
53442129.5
4.84 time
5.35 time
Diagram: -
INTERPRETATION:The current asset ratio was 5.11 times in the year 2004-2005 and 4.70 in
the year 2005-06 and 4.46 in the year 2006-2007 it was decreased. It further increased to 4.48 in
the year 2007-08 & 5.35 in the year 2008-2009. It shows that the current assets are not utilized
properly.
7 .Debtors Turnover Ratio:Concept: Debtors are expected to be converted into cash over a short period of time and
therefore are included in current assets. It shows how many times debtors are converted into cash
in a year.
Debtors Turnover Ratio = Net credit sales
Average Debtors
Year
Credit sales
Average Debtors
Ratio
2004 2005
102199181.00
19080194.95
5.35 times
2005 2006
132858985.00
27192101.00
4.88 times
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2006 2007
171671451.00
36302837.00
4.72 times
2007-2008
2008-2009
221246824.00
286246257.00
42584634.5
50516905.00
5.19 times
5.66 times
Diagram: -
INTERPRETATION:The debtors turnover ratio was very less in the year 2006-07 at 4.72
times, but them it has increased to 5.19, 5.66 times in the year 2007-08 and 2008-09. This shows
that the company is making all the offers to speed up the collection process.
8. Creditors Turnover Ratio:Concept: Creditors turnover ratio establishes relationship between not credit purchases and
average trade creditors and accounts payable. The ratio indicates the velocity with which the
creditors are turned over in relation to purchases.
Creditors Turnover Ratio = Net Credit Purchases
Average creditors
Year
Credit Purchases
Average Creditors
Ratio
2004 2005
96724469.00
82074994.50
1.17 times
2005 2006
127553879.00
112554635.00
1.13 times
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2006 2007
165680148.00
146617013.50
1.13 times
2007-2008
2008-2009
213323185.00
276775674.00
189501666.50
245049429.50
1.12 times
1.12 times
Diagram: -
INTERPRETATION:The creditors turnover ratio was 1.17 times in the year 2004-05 & it
decreased to 1.13 times in the year 2006-2007 but creditor turnover will be remain same two
year 2005-06 and 2006-07.Thean it was again declined 1.12 in the Year 2007-08. But it was
remain same in the year 2007-08 and 2008-09. Generally lower the ratio better is the liquidity
position of the firm and vice versa
9. Net Profit Ratio:Net profit ratio indicates the relation ship between net profit & sales .It is
also known as margin on sales ratio.
Net Profit Ratio: -
x 100
Sales
Year
Sales
Ratio
2004 2005
437894.00
102199181.00
0.43 %
2005 2006
423298.00
132858985.00
0.32 %
2006 2007
592576.00
171671451.00
0.35 %
2007-2008
2008-2009
843910.00
1039889.00
221246824.00
286246257.00
0.38 %
0.36 %
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Diagram:
INTERPRETATION:The Net profit of the company 0.43% in the year 2004-05,0.32 in the
year 2005-06 , 0.35 in the year 2006-07 ,0.36 in the year 2008-09. Net profit ratio was show the
net profit after tax in the year 437894 in 04-05 but it was fall in the year 2005-2006 there for net
profit ratio is falling.
10. Debt / Equity Ratio:This Ratio indicate how much of the total funds employed
are our owned & how much are borrowed there is no standard fixed for this ratio
but financial institute favors a ratio of 2:1.
Ratio
2004 2005
17020534.74
3281899.00
5.19
2005 2006
18599175.00
4705197.00
3.95
2006 2007
30650881.00
6297773.00
4.87
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2007-2008
2008-2009
25230306.00
43831794.00
7141683.00
8181572.00
3.53
5.36
Diagram:
INTERPRETATION:In The year 2004 -2005 debt equity ratio was 5.19 and 3.59 ,4.87 in the
year 2005-06 and 2006-07 .in the year 2005 debt equity ratio fall because shareholder fund was
increased. But long term borrowing slow increasing .But in the year debt ratio has decreased 3.53
in the year 2007-08.but in the year 2008-09 the debt equity ratio has increased 5.36. Because
long term borrowing and shareholder fund also increases.
11. Working Capital Turnover Ratio:It is taken as one of the primary indicators of the
short-term solvency of the business. It establishes the relationship with the net sales. It
measures the efficiency with which the working capital is being used by the firm.
WORKING CAPITAL TURNOVER RATIO =
Net Sales
Net Working Capital
Year
Net Sales
2004 2005
102199181.00
Net Working
Capital
20229751.69
2005 2006
132858985.00
23244807.00
5.72 TIME
2006 2007
171671451.00
36879727.00
4.65 TIME
2007-2008
221246824.00
32265850.00
6.86 TIME
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Ratio
5.05 TIME
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2008-2009
286246257.00
50967874.00
5.62 TIME
Diagram:
INTERPRETATION:
In The year 2004-05 working capital t/o ratio was5.05 time ,5.72 time in the year
2005-2006.In the year 2005-06 the working capital has increases because sales of the company
has increases. in the year 2006-07it was 4.65, 6.86,5.62 in the year 2007-2008 and 2008-09.it
show the newly established company because the working capital up and down year to year.
Particular
Current Asset
Sundry debtors
o/s more than 6 month
o/s less than 6 month
Cash & Bank Balance
Cash in hand
Balance with bank
Loans & Advance
Margin against Bank
31-03-2005
31-03-2004
25402556.11
Nil
12757833.79
322305.70
600000.00
Increase
((Sources)
Decrease
(Application)
12644722.32
119298.12
0.00
650000.00
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203007.58
-
50000.00
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
guarantee
Accrued interest on
Margin Money
Tax deducted at source
16250.00
11270.00
Total 26352381.81
Current Liabilities
Sundry creditors
Lalit Bajaj
O/D with Bank of Baroda
Provision s for exp
Mr.Pawan choudhary
Mr.Babita Choudhary
N.B Shetty
Income tax 2002-03
Income tax 2004-05
16250.00
0.00
0.00
39761.00
28491.00
12769238.90
13583142.91
5366937.12
4909228.79
457708.33
10000.00
482193.00
10000
118953.09
20000.00
65500.00
-
4665878.93
1000000.00
500000.00
20000.00
233500.00
6122630.12
0.00
4665878.93
363239.91
1000000.00
500000.00
10000.00
20000.00
168000.00
11636347.63
20229751.69
1946795.28
18282956.41
30000.00
5513717.51
Total
Networking Capital
(Current Asset
Current Liability)
31-03-06
31-03-05
Increase
Decrease
28981646.00
25402556.11
3579089.89
151478.00
322306.00
170828.00
600000.00
600000.00
0.00
0.00
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Unsecured considered
goods, subject to recover
advance recover in cash
or kind or value.
T.D.S & Income Tax paid
Total
Current Liabilities
Sundry creditors
49243.00
16250.00
32993.00
305604.00
11270.00
294334.00
30087971.00 26352381.81
3735589.19
5663415.00
5366937.00
296478.00
Other Liabilities
617659.00
522193.12
95465.88
Provisions
Provisions for taxation
Provisions for F.B.T
527500.00
34590.00
233500.00
-
294000.00
6843164.00
6122630.12
720533.88
23244807.00
20229751.69
3015055.31
Total
Networking Capital
(Current Asset
Current Liability)
31-03-2007
833104.00
42790924.00
31-03-2006
Increase
833104.00
28981646.00 13809278.00
Decrease
-
125254.00
151478.00
26224.00
600000.00
600000.00
0.00
0.00
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Current Liabilities
Sundry creditors
182081.00
49243.00
132838.00
1331945.00
995525.00
305604.00
1331945.00
689921.00
30087971.0 16770862.00
0
46858833.00
8090866.00
5663415.00
2427451.00
Other Liabilities
891150.00
617659.00
273491.00
Provisions
Provisions for taxation
Provisions for F.B.T
927500.00
69590.00
527500.00
34590.00
400000.00
35000.00
9979106.00
6843164.00
3135942.00
Total
Networking Capital
(Current Asset
Current Liability)
36879727.00
23244807.00 13634920.00 -
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
In Current A/C
In Fixed Deposit
Loans & Advance
Unsecured considered
goods, subject to
recover advance
recover in cash or kind
or value.
Sundry Advances
T.D.S & Income Tax
paid
Total
Current Liabilities
Sundry creditors
Other Liabilities
Provisions
Provisions for taxation
Provisions for F.B.T
Total
Networking Capital
(Current Asset
Current Liability)
600000.00
600000.00
0.00
0.00
276894.00
182081.00
94813.00
431945.00
1439475.00
1331945.00
995525.00
443950.00
900000.00
-
44389218.0
0
46858833.00
2469615.00
8090866.00 1763531.00
9854397.00
801881.00
891150.00
89269.00
1362500.00
104590.00
927500.00
69590.00
435000.00
35000.00
12123368.0
0
9979106.00
2144262.0
0
4613877.00
32265850.00
36879727.00
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Balance
Cash in hand
Balance with
schedule bank
In Current A/C
In Fixed Deposit
Loans & Advance
Unsecured considered
goods, subject to
recover advance
recover in cash or
kind or value.
Sundry Advances
T.D.S & Income Tax
paid
Total
Current Liabilities
Sundry creditors
Other Liabilities
Provisions
Provisions for
taxation
Provisions for F.B.T
Total
Networking Capital
(Current Asset
Current Liability)
64627.00
95663.00
31036.00
600000.00
600000.00
0.00
0.00
320425.00
276894.00
43531.00
431945.00
1589475.00
431945.00
1439475.00
0.00
150000.00
0.00
-
62495041.00
44389218.0
0
18105823.0
0
8916827.00
9854397.00
937570.00
418250.00
801881.00
383631.00
2012500.00
1362500.00
650000.00
179590.00
104590.00
75000.00
11527167.00
12123368.0
0
596201.00
32265850.00
18702024.0
0
50967874.00
The working of the company should be positive. It should not be negative. In the
year 2004-2005 Rs. 20229751.69 and in the year 2005-2006 Rs. 23244807.00 the working
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
capital has increased and 2006-2007, Rs.36879727.00 the working capital has increased but in
the year 2007-2008 Rs.32265850.00 the working capital has decrased.But in the year 2008-2009
the working capital of Shree dayal tours & travels Pvt Ltd has again increased Rs.5067874.00
The Shree Dayal Tours & Travels Pvt Ltd working capital has incrasesed which is favorable
position to the company. It clearly shows that the Shree Dayal Tours & Travels Pvt Ltd
has
profit orient company. So it was not facing shortage of working capital in initial years. So it had
to increase its working capital to stand in the business world.
Then again in the year2008-2009 the Shree Dayal Tours & Travels Pvt Ltd Net Working
Capital has increased Rs.50967874.00, which is a very positive sign of prosperity and it, will
help to the Shree Dayal Tours & Travels Pvt Ltd sustain its expansion programs.
Conclusion
The Working Capital Management contributes much in the over all management
of the organization affairs, efficiency of organization operations depend on how it manages its
short term business dealings. Working Capital management contributes for the firm efficiency as
well as the finance manager is proper utilizing the available wealth and maintaining the required
liquidity.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
The net working capital has declined in the year 2007-2008 and but the profit of the
company was increased in the year 2007-2008
The Shree dayal tours & Travels Pvt Ltd has abled to repay the liability & loan of the
creditors or not. And also liquidity ratio of shree dayal tours and travels has declined
year to year and some year it will remain the same.
The Return on current assets of shree dayal tours & travels Pvt Ltd is vary high in the
year 2007-2008 and
Company is able to full the standard ratio of current assets and change in working
capital of 2007-2008 has declined.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
SUGGESIONS: In the year 2007-2008 the current assets of the Shree Dayal tours and travels Pvt Ltd
has declined and current liability of the company has increases there for the net
working capital declined. There for the current ratio has declined. The net working
capital of the company has increased remaining year .But profit has increased because
the sales has increased in the year 2007-2008.
The company has abled to repay the liability of the creditors because of the current
ratio of SDT&TPL is above the standard of current ratio i.e. 2:1. The profit of the
company has increased every year.
Because of the current assets has declined in the year 2007-2008 but profit of the
company has increased in the year 2008-2009. There for the return on current assets
is vary high.
Company has able to full fill the standard level of current ratio i.e. 2:1 .There for the
company has able to repay the liability and loan of company and the change in
working capital declined in the year 2007-2008 due to the sundry creditors has more
and Provision of tax has been vary high.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Conclusion: After going through the different aspects of the industry departments and the awards it
has received in different fields. There is good relationship between the directors and employee.
The management concerned about employees complete health and wealth. Working capital may
be regarded as lifeblood of a business. Its effective provision can do much to ensure the success
of a business
Today working capital is considered to be an important tool for progress. Working capital
management techniques are playing significant role in assisting the management for decision
making. The study of working capital management at Shree Dayal Tours & Travels Pvt Ltd Is
found to be very effective. The working capital contains the management of Cash, Debtors, and
creditors. The Shree Dayal tours and travels Pvt Ltd has profit oriented company .The profit of
the company will be increases every year .The company has able to the repay the amount of the
creditor. The company has more working capital and also sale has increases year to year .The
company current ratio has above the standard current ratio i.e. 2:1 but company current ratio is
above 3:1.The Company has financially soundness.
.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Financial Statement
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Particulars
SCHEDULE
As At
31.03.2009
SOURCES OF FUNDS
SHAREHOLDERS FUNDS
Share capital
Reserves and Surplus
A
B
45,00,000.00
36,81,572.00
8181572.00
C
D
-
3,73,46,016.00
64,85,778.00
5,146.00
TOTAL
52,018,512.00
APPLICATIONS OF FUNDS
Fixed Assets:
Gross Block
Less: Accumulated Depreciation
Net Block
10,24,298.00
INVESTMENTS
Current Assets, Loans & Advances
Sundry Debtors
Cash and bank balances
Loans and Advances
Less: Current Liabilities & provisions
Current Liabilities
Provisions
NET CURRNT ASSETS
Miscellaneous Expenditure
( To the extent not written off or adjusted)
12,91,998.00
2,67,700.00
G
H
I
(A)
5,94,88,569.00
6,64,627.00
23,41,845.00
62,495,041.00
J
K
(B)
(A-B)
K
93,35,077.00
21,92,090.00
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5,09,67,874.00
26,340.00
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
TOTAL
5,20,18512.00
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