Kirana shops are located in the neighborhood and maintain personal relationships with

customers. Due in part to such characteristics, kirana shops are widely accepted by Indian
people. One reason for their popularity is that customers can buy on credit based on the trust
that develops between the shop owner and a customer. In addition, discounts are sometimes
offered, although items are usually sold at the maximum retail price. Meanwhile, not many
households own a refrigerator in rural areas. People do not make a bulk purchase but tend to
buy what is necessary every day. Kirana shops are convenient for such people because of the
proximity to their homes. They also address the needs of the poor, who cannot afford to buy a
bottle of shampoo but instead buy a sachet for 3 rupees.

Mukund Inchalkar ,a retired hardworking man age 63 who lives in Ambeudak ward
which is located in sanvordem constituency , had the only worries of sustenance of
his family members after his retirement from Fomento minerals and iron ores .he had
completed is SSC from Sarvodhya education society Curhorem through night
schooling in 1985 . He lives in a nuclear family consisting of he himself , his wife
and 3 daughters . so in order to go through the needs of his family after retirement he
started a small general store/kirana shop in the year 28 April 2017 in his own space
nearby to his house with meager working capital of 20000.Along with his wife
Mukund operates the store from early morning to late evening , providing for small
purchases of regular customers , ranging from one –off- items such as a bar of soap
to extensive daily grocery list with a daily turnover of 2500 approximately (monthly
turnover of 75000) .He does stocking of his general store of 1000- 1500 thrice a
week mainly on the basis of sales. He Buys the stock from Sanvordem wholesale
shop . the time lag provided to him by creditors is mostly varying from 1 to 2 weeks
and time lag provided by him to the debtors are 1 month this depends on the nature
of the customer i.e whether known or unknown .Over time, Mukund stores has
become something of a landmark , with locals happy to point you in its direction.
He has no worries to pay wages as there is no workers indulge in the business.
Until 12 months ago, the store ,which is around 100 sq feet and stocks under 100
items ,typified the mom-and-pop store that’s ubiquitous around Goa . The interiors
were dim and disorganized, billing was ad –hoc and most transactions were in cash.
The business wasn’t exactly booming
After 1 year of his business he thought of diversifying business i.e. he thought to
start selling breakfast and lunch which included hard work of his wife through this
he started generating more profit in his business. And the daily turnover increased
from 2500 to 4000 ( monthly turnover 120000). Purchase of raw material increased
from 1000-1500 to 2000 .Mr.Mukund reared a distinguishing character of sense of
ownership and drew immense pleasure out of everything, every decision that he
owned . This drove his small family business to rise .

Management Of Working Capital

Sr.no Contents of working capital Figures
1 Initial capital 20000
2 Turnover for first few months 75000 p.m
3 Purchase of raw material 1000-1500 thrice a week
4 Wages -

Time Lag
1. To Debtors 1 Month
2. By Creditors 1- 2 weeks

After 1 year
1. Turnover 120000
2 Raw material 2000 thrice week
3 Wages -

Sr.no Items sold