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SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2006-07

PARTICULARS

2006

2007

Increase

Decrease

CURRENTASSETS:
Cash on hand

42159.91

1283980.24

1241820.33

-------------

Balances with bank

494953.16

4095239.26

3600286.1

-------------

Interest Receivable

1826488.57

1826488.57

------------

------------

Closing stock

292692156.2

219662803.7

------------

73029352.5

Total current assets


A

295055757.8

226868511.7

Outstanding Interest

4429829.45

6094477.9

------------

1664648.45

Total current liabilitiesB

4429829.45

6094477.9

290625928.3

220774033.8

LIABILITIES:

Working Capital
(A-B)

Net decrease in working


Capital

290625928.3

69851894.5

69851894.5

290625928.3

74694000.95

74694000.95

SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2007-08


Effect of working capital

PARTICULARS

2007

2008

Increase

Decrease

CURRENT ASSETS:
Cash on hand

1283980.24

22575.2

------------

1261405.04

Balances with bank

4095239.26

15881189.48

11785950.22

------------

Interest Receivable

1826488.57

1826488.57

------------

------------

Closing stock

219662803.7

96849740.27

------------

122813063.4

226868511.7

114579993.5

6094477.9

27190688.4

------------

21096210.5

Total current liabilities 6094477.9

27190688.4

Total current assets -A


LIABILITIES:
Outstanding Interest

-B
Working Capital (A-B)

220774033.8

Net decrease in working

87389305.1
133384728.7

133384728.7

220774033.8

145170678.9

Capital
220774033.8

145170678.9

SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2008-09

Effect of working capital


PARTICULARS

2008

2009

Increase

Decrease

CURRENT ASSETS:
Cash on hand

22575.2

1878931.06

1856355.86 -------------

15881189.48

18140037.49

2258848.01 -------------

Interest Receivable

1826488.57

1826488.57

------------

Closing stock

96849740.27

110043159

13193418.73 -------------

114579993.5

131888616.1

Balances with bank

Total current assets -A

-------------

LIABILITIES:
Outstanding Interest

27190688.4

40525798.4 ------------

Total current liabilities


-B

27190688.4

40525798.4

Working Capital (A-B)

87389305.1

91362817.7

Net Increase in working


Capital

3973512.6
91362817.7

13335110

3973512.6
91362817.7

17308622.6

17308622.6

SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2009-10


Effect of working capital
PARTICULARS

2009

2010

Increase

Decrease

CURRENT ASSETS:
Cash on hand

1878931.06

141218.80

--------------

1737712.20

Balances with bank

18140037.49

7254943.14

--------------

10885094.35

Interest Receivable

1826488.57

1826488.57

--------------

--------------

110043159.00

304641449.50

194598290.50

--------------

131888616.10

313864100.00

Out standing Interest

40525798.40

49024988.90

Total current liabilities

40525798.40

49024988.90

91362817.70

264839111.10

Closing stock
Total current assets -A
LIABILITIES:

--------------

8499190.50

-B
Working Capital
(A-B)
Net increase in
working

Capital

173476293.40
264839111.10

173476293.40
264839111.10

194598290.50

194598290.50

SCHEDULE OF CHANGES IN WORKING CAPITAL FOR THE YEAR 2010-11


Effect of working capital
PARTICULARS

2010

2011

Increase

Decrease

CURRENT ASSETS:
Cash on hand

141218.80

95082.92

Balances with bank


7254943.14
Interest Receivable

------------

46135.88

10594640.27

------------

------------

------------

------------

23059251.20

2096687.26

------------

17849583.41

1826488.57
1826488.57

Closing stock

304641449.50

281582198.30

313864100.00

301353353.20

Out standing Interest

49024988.90

46928301.64

Total current liabilities -B

49024988.90

46928301.64

264839111.10

254425051.50

Total current assets -A

LIABILITIES:

Working Capital (A-B)

Net Decrease in working

10414059.60

10414059.60

264839111.10

23105387.08

Capital

264839111.10

23105387.08

CURRENT RATIO

Current ratio indicates ability of the company to meet the current obligation i.e., the
current assets must be sufficient to pay as and when the latter matrices. The standard ratio
is 2:1, the current ratio is calculated by using the formula:

Current assets
Current ratio =

-------------------------Current liabilities

YEAR

CURRENT ASSETS

CURRENTLIABILITIES

RATIO

2006-07

23,33,30,395.13

18,90,06,552.17

1.234

2007-08

12,09,66,623.21

14,22,10,762.18

0.85

2008-09

14,13,26,040.41

14,78,60,117.24

0.955

2009-10

32,30,19,288.99

20,38,85,067.19

1.584

2010-11

31,32,95,829.13

21,93,27,902.79

1.428

Diagram: -

250,000,000.00
200,000,000.00
150,000,000.00

QUICK ASSETS
CURRENT LIABILITIES

100,000,000.00

RATIO

50,000,000.00
0.00
2006-07

2007-08

2008-09

2009-10

2010-11

INTERPRETATION:The current ratio was 1.234 in the year 2006 2007 and the year
2007-2008 the current ratio was 0.85 and in the year 2008 -2009 the current ratio was
0.955 this show the current ratio has increase every year but in the year 2009-2010 the
current ratio was decreased to 1.584 . In the year 2010 2011 the current ratio has
increases 1.428.The current ratio is above the standard of 2: 1 ratio and hence it can be said
that there is enough working capital in the Apna Circle InfoTech Pvt Ltd to meet its
current liabilities.

2.QUICK RATIO

Quick ratio are acid test ratio ignores less liquidity assets like inventory.
This takes account readily available cash and other assets which are quickly converted into
cash. The standard is ratio is 1:1. The general principle of quick ratio is as follows:

Liquid Assets
Quick ratio =

-------------------------------Current liabilities

YEAR

QUICK ASSETS

CURRENT LIABILITIES

RATIO

2006-07

1,36,67,591.83

18,90,06,552.17

0.072

2007-08

2,44,16,882.94

14,22,10,762.18

0.169

2008-09

2,83,90,812.06

14,78,60,117.24

0.192

2009-10

1,86,38,461.57

20,38,85,067.19

0.091

2010-11

3,39,59,496.91

21,93,27,902.79

0.154

Diagram: -

250,000,000.00

200,000,000.00

150,000,000.00

QUICK ASSETS
CURRENT LIABILITIES
RATIO

100,000,000.00

50,000,000.00

0.00
2006-07

2007-08

2008-09

2009-10

2010-11

INTERPRETATION:The Quick ratio is below satisfactory level of 0:072 during the year 2006-07 and the year
2007-08 above the satisfactory level. However there is a increase during the years 2008-09
this year position is 2010-11 the increase in the Quick ratio indicates satisfy trend of
company.

INVENTORY TURNOVER RATIO

Turnover ratio is also known as stock velocity. This ratio is calculated to consider the
adequacy of the quantum of capital and its institution for investing in inventory.
A firm must have reasonable stock in caparison to sales. It is the ratio of cost of
sales and average inventory of. This ratio helps the financial managers to calculate
inventory policy. This ratio reveals the number of times finished stock is turned over
during a given accounting period. The ratio is used for measuring the profitability. These
are the various ways in which stock turnover ratio may be calculated.

Net sales
Inventory turnover ratio =

-------------------------------Average Inventory

YEAR

NET SALES

AVERAGE INVENTORY

RATIO

2006-07

20,14,86,573.36

23,41,47,889.61

0.86

2007-08

13,05,17,436.90

13,75,97,979.61

0.948

2008-09

9,66,54,360.90

8,31,65,010.43

1.162

2009-10

12,37,19,616.75

10,30,03,384.82

1.201

2010-11

36,88,53,566.89

18,47,71,625.02

1.996

Diagram: -

250,000,000.00

200,000,000.00

150,000,000.00

QUICK ASSETS
CURRENT LIABILITIES
RATIO

100,000,000.00

50,000,000.00

0.00
2006-07

2007-08

2008-09

2009-10

2010-11

INTERPRETATION

The Inventory turnover ratio was 0.86 in the year 2006 2007 and the year 2007-2008 the
current ratio was 0.948 and in the year 2008 -2009 the current ratio was 1.162 this show
the current ratio has increase every year but in the year 2009-2010 the current ratio was
decreased to 1.201 . In the year 2010 2011 the inventory turnover ratio has increases
1.996.

5.CASH POSITION RATIO

Cash in the most liquid asset, a financial analyst may examine the ration of cash
and its equivalent to current liabilities. Trade investment or marketable securities are
equivalent of cash, therefore, they may be included in the computation of cash position
ratio.

Cash+ marketable securities


Cash Position Ratio =

--------------------------------------------Current liabilities

YEAR

CASH+MARKETABLE
SECURITIES

CURRENT
LIABILITIES

RATIO

2006-07

53,79,219.50

18,90,06,552.17

0.028

2007-08

1,59,03,764.68

14,22,10,762.18

0.111

2008-09

2,00,18,991.55

14,78,60,117.24

0.135

2009-10

79,51,888.86

20,38,85,067.19

0.039

2010-11

4,56,44,654.96

21,93,27,902.79

0.208

Diagram: -

250,000,000.00

200,000,000.00

150,000,000.00

QUICK ASSETS
CURRENT LIABILITIES
RATIO

100,000,000.00

50,000,000.00

0.00
2006-07

2007-08

2008-09

2009-10

2010-11

INTERPRETATION :The cash position ratio is inadequate as there are ups and downs during the year. The
above ratio indicates that the company is unable to quickly realize its current liabilities it is
not good enough.

6.WORKING CAPITAL TURNOVER RATIO

Working capital of a concern is directly related to sales. The current assets like
debtors, bills receivable, cash, and stock etc., change with the increase or decrease in sales.
The working capital is taken as:

Working capital =current assets-current liabilities

This ratio indicates the velocity of the utilization of net working capital. This ratio
indicates the number of times the working capital is turned over in the course of a year.
The ratio measures the efficiency with which the working capital is being used by a firm.
A higher ratio indicates the efficient utilization of working capital and the low ratio
indicates inefficient utilization of working capital.
SALES
WORKING CAPITAL TURNOVER RATIO = ------------------------------NET WORKING CAPITAL

Year

NETSALES

NET WORKING CAPITAL

RATIO

2006-07

20,14,86,573.36

4,43,23,842.96

4.545

2007-08

13,05,17,436.81

2,12,44,138.97

6.143

2008-09

9,66,54,360.90

1,35,34,076.83

7.141

2009-10

12,37,19,616.75

11,91,34,221.80

1.038

2010-2011

36,88,53,566.89

9,39,67,926.34

3.925

Diagram: -

250,000,000.00

200,000,000.00

150,000,000.00

QUICK ASSETS
CURRENT LIABILITIES
RATIO

100,000,000.00

50,000,000.00

0.00
2006-07

2007-08

2008-09

2009-10

2010-11

INTERPRETATION :-

This ratio indicates the velocity of the utilization of net working capital. This ratio
indicates the number of times the working capital is turned over in the course of a year.
The ratio measures the efficiency with which the working capital is being used by a firm.
This ratio indicates the number of times the net sales met with the working capital for the
year. The turnover of the working capital has highly increasing from 2006-2007 to 200809.