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
3

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

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
CONCLUSIONS

CHAPTER 8
SUGGESTIONS

70 TO 71

72

CHAPTER 9
ANNEXURE
BIBLOGROPHY

73 TO 75

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

in order to get the basic understanding and information regarding the tours & traveling
company.

Objectives of the study:

To study the working capital requirement of a company.
To know the progress of working capital in a company
To study the efficiency of cash, and receivables management of the company
To know the solvency of the company & how the company is managing working
capital.
The objective of study to analyzed the liquidity position of the company.

THE WORKING CAPITAL NEED ARISES FOR THE FOLLOWING PURPOSE.

For purchasing of Tickets.

For paying wages and salaries

To increase day-to-day expense and overhead costs like power and office expense etc.

To meet selling costs of packages, advertising etc

To provide credit facilities to customers.

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. 20082009, 2009-2010, 2010-2011, 2011-2012 and 2012-2013 Graphs, diagrams and tabulation
methods are used to analyze and interpret the data collected. It will help to understand the
companys liquidity position.

LIMITATION OF THE STUDY

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:
.

In preparing of project the information collected from the two sources.

Primary Sources:
Primary sources include information collected through discussion with the concerned
departmental persons.

Secondary Sources:
I have used secondary sources for collecting the data. They are:

Information from the text sources

Information form the internet sources

Information from the materials provided by the concern

SAMPLING DESIGN
0

Sampling unit

: Financial Statements

Sampling Size

:Last five years financial statements

Finding and Suggestion:

Finding:

The net working capital has declined in the year 2011-2012 and but the profit of the

company was increased in the year 2011-2012

The Shree dayal tours & Travels Pvt Ltd has abled to repay the liability & loan of the
creditors or not.

Suggestion: In the year 2011-2012 the current assets of the Shree Dayal tours and travels Pvt Ltd has
declined and current liability of the company has increased therefore the net working capital
declined. Therefore 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 2011-2012.

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.

 INDUSTRY PROFILE.

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
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.

D. & R.G. "Uncle Sam," c. 1916.

The star of the railroads was the D&RG's Uncle Sam,

a special excursion between Denver and Littleton,
with a stop at Fort Logan that ran as many as six trips
a day. Begun in 1888 and terminated in 1924, it was
considered one of the country's finest passenger
operations, and was the D&RG's most profitable
route, despite a round-trip fare of just 25 cents.
Between 1906 and 1923 the Uncle Sam boasted a
"Theater Train" once or twice a week.

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
"century" ride, or 100 miles in a day.
The next improvement was the electric trolley car,
which was extended from Denver into Littleton in 1907.
The line came down south Broadway, went crosscountry at Big Dry Creek to enter the town on Prince
Avenue and then turned onto Main. Eventually, the line
was 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 Littleton's street car, c. 1910.
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.
The final improvement in personal transportation
began just after the turn of the century and continues
to today. In 1904, Rude Chandler's "benzine buggy"
automobile cruised onto Littleton's streets. Within two
years there were eight of the infernal contraptions
buzzing about and the city was besieged by calls to
license the machines and ticket those exceeding "an
immoderate speed". The city responded with a speed

Dr. and Mrs. Crysler in their first

automobile, 1909.

limit for all conveyances of 8 miles an hour. Now, of course, Littletonites could hardly imagine
their city without wide boulevards, super highways and the automobile.
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
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.

Business Class Fares booked and ticketed in C, J, Z and I class.

Economy Class Fares booked and ticketed in Y and M class.

The Tours & Travels Company has continuance of positive economic

factors and strong performance of the service and retails sectors should lead to
sustained growth in passenger traffic. The aviation market has witnessed a shift
growing aspirations. The unprecedented growth in passenger traffic in India has
attracted several airlines already to set up operations resulting in a highly competitive
environment.

A major development within the industry has been the recent

trend of consolidation. This has resulted in three major market share leaders, viz., Air
India-Indian, Jet Airways-Jetlite and Deccan-Kingfisher which control more than
85% of the market. It is expected that may result in a reduction in cut-throat pricing
leading to improved yields and, consequently, a road to profitability the combined
group of Kingfisher-Air Deccan will be in a better position to offer air travel options
across a wider network and to all segments of the traveling population. An all new
livery and colures and a complete makeover of the frontline staff and executives will
provide a whole new experience to both the existing traveler and a new traveler. The
Companys operations, sales, marketing and distribution, front line and support
services and the completion of these are vital to achieve a profitable growth in the
future. India the land to travel to, a haven of tourism delights, a civilization to tour

through. Tourists come to India for its wealth of sights, cultural exuberance, diversity
of terrain and in search of that special something, an extra punch that only India
promises and delivers. Teeming with over a billion people who voice over a million
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

Fixed wheels on carts are invented - the first wheeled vehicles in

history. Other early wheeled vehicles include the chariot.

3500 BC

River boats are invented - ships with oars

2000 BC

Horses are domesticated and used for transportation.

181-234

The wheelbarrow is invented.

770

Iron horseshoes improve transportation by horse

1492

Leonardo da Vinci first to seriously theorize about flying

machines - with over 100 drawings that illustrated his theories
on flight

1620

Cornelis Drebbel invented the first submarine - an human oared

submersible

1662

Blaise Pascal invents the first public bus - horse-drawn, regular

route, schedule, and fare system

1740

Jacques de Vaucanson demonstrates his clockwork powered

carriage

1783

First practical steamboat demonstrated by Marquis Claude

Francois de Jouffroy d'Abbans - a paddle wheel steamboat

1783

The Montgolfier brothers invent the first hot air balloons

1787

Steamboat invented

1769

First self-propelled road vehicle invented by Nicolas Joseph

Cugnot

1790

Modern bicycles invented

1801

Richard Trevithick invented the first steam powered

locomotive (designed for roads)

1807

Isaac de Rivas makes a hydrogen gas powered vehicle first with internal combustion power - however, very
unsuccessful design

1807

First steamboat with regular passenger service - inventor

Robert Fulton's Clermont

1814

George Stephenson invents the first practical steam

powered railroad locomotive

1862

Jean Lenoir makes a gasoline engine automobile

1867

First motorcycle invented

1868

George Westinghouse invents the compressed air

locomotive brake - enabled trains to be stopped with failsafe accuracy

1871

First cable car invented

1885

Karl Benz builds the world's first practical automobile to be

powered by an internal combustion engine

1899

Ferdinand von Zeppelin invents the first successful dirigible

- the Zeppelin

1903

The Wright Brothers invent and fly the first engined airplane

1907

Very first helicopter - unsuccessful design

1908

Henry Ford improves the assembly line for automobile

manufacturing

1908

Hydrofoil boats co-invented by Alexander Graham Bell &

Casey Baldwin - boats that skimmed water

1926

First liquid propelled rocket launched

1940

Modern helicopters invented

1947

First supersonic jet flight

1956

Hovercraft invented

1964

Bullet train transportation invented

1969

First manned mission (Apollo) to the Moon

1970

First jumbo jet

1981

Space shuttle launched

 COMPANY PROFILE.
VISION, MISSION AND GOAL
BOARD OF DIRECTORS
OBJECT OF SDT&TPL
PRODUCT & SERVICE PROFILE
DEPARTMENT STUDIES
ORGANIZATION FLOW CHART

PROFILE OF THE COMPANY

COMPANY HISTORY OF THE PLACE
The Shree Dayal Tours & Travels Private Limited was established in August 2001 at
Mumbai, Maharashtra State.

REGD. OFFICE & WORKS OF THE COMPANY

Shree Dayal Tours & Travels Private Limited
Corporate Office:

207, ARK Industrial Estate,

Makwana Road, Marol Naka,
Andheri (East)
Mumbai -400059.India
Tel: 91-228501786/2686/ 2489 Fax: 91-228504947

DIRECTOR OF THE COMPANY

Mrs.Roli P. Choudhery,
Ms.Babita Choudhary.
Mr. Suresh S.Choudhary

PRODUCT AND SERVICE LINE OF THE COMPANY

Tours Product.

Domestic and international Flight booking services.

Hotel Booking services.

Provided Bus facility services.

Provided Car facility services.

Provided Cruises services.

Railways ticket booking services.

Foreign exchange services.

CLIENTS OR CUSTOMERS

Aditya Birla Groups

Johnson & Johnson Pvt Ltd

Siyaram textiles Pvt Ltd

Other People

MARKET CHANNELS
On the basis of Clients, they make Direct Sales to the Customers.
COMPETITORS

The main competitors of the Company are:

Akbar Tours & Travels Pvt Ltd

Riya Tours & Travels Pvt Ltd

Kesari Tours & Travels Pvt Ltd.

NUMBER OF SHIFTS
General Shift:
9-00 AM to 6-00 PM

No. Of Working Days:

300 Days in a year

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 .This company has booking the aero planes ticket and
booking, reserving accommodations seats, compartments and berths on railways, Steam ships
motor ships boats ,omnibus ,Motorbus and carriages of all descriptions and to issue tickets
international & Domestics for the same and to hire taxies ,Motor car and all kind of Public
vehicles and transports and to charter services and to 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.
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

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

Maldives
- WV
4 Days 3
Nights

Samarkan
d Bukhara
- WX
4 Days 3
Nights

Name of Domestic Airlines:-

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

Goa-W5

4 Days 3
Hotel
Nights

Katra
Vaishnode
vi-W7

4 Days 3
Hotel
Nights
Pondicher
ry
Mahabalip
uram-W9

4 Days 3
Hotel
Nights

4 Days 3
Hotel
Nights

Khajuraho
Jabalpur
BedaghatW6

4 Days 3
Hotel
Nights

Jaipur-W8

4 Days 3
Hotel
Nights

Cochin
MunnarWC

4 Days 3
Hotel
Nights

 Kingfisher Red.
Jet Airways
Indian Airlines.
Spice Jet.
Indigo
Go Air
Air Deccan

Name of International Airlines:Sr.No

AIRLINE NAME

PREFIX

CODE

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41

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
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

SQ
MI
CO
UL
KA
KL
KQ
AC
KE
TG
NW
AA
QR
AI
AP
PG
GA
MK
9W
LA
LP
4M
OS
PR
LX
RJ
SA
VS
SV
MS
JL
CA
BA
IC
CI
TK
NZ
KU
AF
CZ
IT

618
629
005
603
043
074
706
014
!80
217
012
001
!57
098
867
829
084
239
589
045
544
469
257
079
724
512
083
932
065
077
131
999
125
297
297
235
086
229
057
784
090

42
43
44
45
46
47
48
49
50

Oman Air
EVA Air
Biman Airlines
Air Portugal
Iran AIR
Air Astana
Delta Airlines
Pakistan Airlines
Virgin Blue

WY
BR
BG
TP
IR
KC
DL
PK
DJ

910
695
997
047
096
465
006
214
856

Details about Fair Rate of the Airline

Business Class.
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

Australia
Sri Lanka
Canada
Newzland
South Africa

Qantas Air
Srilanka
Jet Airways
Singapore
Kenya Airlines

BOM /SYD/ MEL/

BOM/ CMB/BOM
BOM/ YYZ/BRU
BOM/AKL/BOM
BOM/JNB/BOM

242710
49398
242769
207534
122155

England
Mexico
Saudi Arabia
Nepal
Etly
China
Russia
France
Germany

Luptansa
Delta Airline
Air India
Jet Airways
KU
9W
Aeroflot
Air France
Luptansa

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

274005
572192
44181
71545
221434
120193
104055
234146
236212

16
17
18
19
20

Kolalampur
Singapore
Dubai
Turkey

Malaysia
Singapore
Emirates
Turkey

BOM/KUL/BOM
BOM/ SIN/BOM
BOM/DXB/BOM
BOM/IST/BOM

Bangkok
Bk
BOM/BKK/Bom
2:-ECONOMY CLASS FLIGHT FAIR

Sr.no

STATE

AIRLINES

CODE

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

America
Australia
Sri Lanka
Canada
Newzland
South Africa
England
Mexico
Saudi Arabia
Nepal
Etly
China
Russia
France
Germany
Kolalampur
Singapore
Dubai
Turkey
Bangkok

Delta Airline
Qantas Air
Srilanka
Jet Airways
Singapore
Kenya Airlines
Luptansa
Delta Airline
Air India
Jet Airways
KU
9W
Aeroflot
Air France
Luptansa
Malaysia
Singapore
Emirates
Turkey
Bk

BOM/JFK/EWR
BOM /SYD/ MEL/
BOM/ CMB/BOM
BOM/ YYZ/BRU
BOM/AKL/BOM
BOM/JNB/BOM
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

86602
83709
86758
226453

62894

Included
Total

110138
183545
28534
144482
63152
83592
78690
271088
28867
29199
82320
42068
79061
91781
72044
39377
27324
47123
50696
40060

TAX

Vision
S.exe

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.

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.

SHREE DAYAL TOURS & TRAVELS PRIVATE LIMITED

BOARD OF DIRECTORS

Ms.Roli Choudhary.
Ms.Babita Choudhary.
Mr. Suresh S.Choudhary.
MANAGING OF DIRECTOR

Mr.Pawan S.Choudhary

STATUTORY AUDITORS

N.B Shetty & co

Mumbai

BANKERS

Oriental Bank of Commerce.

RIGISTER OFFICE
207 ARK Industrial Estate
Makwana Road, Marol Naka
Andheri (East)
Mumbai-400058.

Object of Shree Dayal Tours & Travels Pvt Ltd

The main Objects of the Company as set out in the Memorandum of Association
of the Company are as follows:

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
,transportation goods , materials produce ,machinery ,animals passengers, merchandise ,
mail ,freight ,and all such things which may be conveniently carried on with the aforesaid
object of the company.

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.

To provide clear ,comfortable and inexpensive sleeping accommodation for workmen

and others and in connection their with to the afford to such persons facilities and
convenience for washing ,bathing ,cooking , reading, writing , and finding employment
and for the purchase ,sale and consumption of provisions both liquidity and solid.

Product & Service Profiles

The Shree Dayal Tours and Travels Pvt Ltd have provided many tours product
to the people .The company has also provided service to the people. The totally honest policy,
excellent service and perfect tours planning are the hallmarks of company success. The company
has perfected our tour itineraries to meet the special needs of the discerning tourist.

Product Profile: - (Tour Products)

1. Second Innings Tours
2. Educational Tours.
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: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.

SERVICE PROFILE: Domestic and international Flight booking services.

Hotel Booking services.
Provided Bus facility services.
Provided Car facility services.
Provided Cruises services.
Railways ticket booking services.
Foreign exchange services.
Provide tours & travels services

DEPARTMENT STUDIES
Finance Department.
Marketing Department.
Air Ticket Booking Department.
Hotel Booking Department.
Billing Department.
Forex Department.

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.
Factions

Selling of Tours Product.

Increasing sales of the company.
Awareness about product and service to the customer.
Advertising of company product.
3) Air Ticket Booking Department:The main function of air ticket booking department is to flight ticket booking .The
Company has ticket booking as per the order of the customer. The department is booking of
national as well as international ticket of flight.
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.

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

Exchange currency with bank.

Day to Day rate fluctuation record of each country.
Preparing visa.
Providing foreign currency required customer.
Handling foreign currency trading activity.

ORGANISATIONAL FLOW CHART OF SDT&TPL

DIRECTORS

MANAGING DIRECTOR

____________________________________________________

____________
Forex ___
Department

Finance Department

Senior. Finance
Manager

Marketing Department

Ticket Booking
Department

Hotel Booking
Department

Hotel Ticket
Booking Manager

Marketing Manager

____________________
Assistant. Finance
Manager

Domestic Air Ticket

Booking

International Air Ticket

Booking

Air Ticket Booking

Manager

Billing Department

Billing Prepare
Manager

Forex Department
Foreign Exchange
Manager
Foreign Exchange
Manager

SCOPE OF THE STUDY

OBJECTIVE OF THE STUDY
RESEARCH METHODOLOGY

Scope and limitations of the study

This project acts as a reference guide or as a source of information. It gives the idea
about the financial analysis 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. 2008-2009, 2009-2010, 2010-2011, 2011-2012, 2012-2013
Graphs, diagrams and tabulation methods are used to analyze and interpret the data collected. It
will help to understand the companys liquidity position. Since the decision regarding working
capital are of an operating nature not one time decision, the scope of the study is geared towards
identifying important areas of control and to establish model for better control of the various
components of working capital
The study would also attempt to identify the various sources available for financing of
working capital.
The study gives a fair idea of improvement in efficiency of working capital management
and also to have proper control over the components of working capital and managing of
efficiency.

LIMITATION OF THE STUDY

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.

Objectives of the study

To study the working capital requirement of a company.

To know the progress of working capital in a company
To study the loan & advances and repayment of loan of company.
To know the solvency of the company & how the company is managing working
capital.
The basic objective of the study is to see the liquidity position of the company
To study the efficiency of working capital management of the company.
To study the efficiency of cash, and receivables management of the company

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
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:

Information from the text sources

Information form the internet sources
Information from the materials provided by the concern
SAMPLING DESIGN

Sampling unit

: Financial Statements & Audit Reports

Sampling Size

:Last five years financial statements

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

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.

Features of Capital:Capital has the following features.

1. Capital is a man made.
2. Capital is a perishable.
3. Capital is a human control possible.
4. Capital is a mobile.
5. Capital is a human sacrifice.
6. Capital is a scarce.
7. Capital is a passive factor.

Forms of capital:The Three Primary Types of Financial Capital

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

:-

This type of capital is infused into a business with the understanding

that it must be paid back at a predetermined future date. In the meantime, the owner of
the capital (typically a bank, bondholders, or a wealthy individual), agree to accept
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
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 :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.
The importance of working capital management is indisputable; Business
liability relies on its ability to effective management of receivables, inventory, and
payables. By minimizing the amount of funds tied up in current assets. Firms are able to
reduce financing costs or increase the funds available for expansion. Many managerial
efforts are put into bringing non-optimal level of current assets and liabilities back
towards their optimal levels.
Working Capital refers to the amount of capital which is readily available to an
organization that is, working capital is the difference between resources in cash and
readily convertible into cash (current assets) and organizational commitments for which
cash will soon be required (current liabilities).
Thus, working capital involves activities such as arranging the short-term
finance, negotiating favorable credit terms, controlling the movement of cash,
administrating accounts receivables and monitoring the investments also a great deal of
time.

Meaning of working capital

The financing required by a concern for carrying on its day-to day operations is known
as the working capital.

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.
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.

Importance of Working Capital

This chapter reveals the importance of working capital management of an organization to
carry over its business successfully.
Significance of working capital management as follows
Normally firm has to employ certain short-term assets & short run sources of financing.
The management of such assets, describe as working capital management or Current Assets
Management. It is one of the most important aspects of the over all financial management.

Working Capital Management is concerned with the problem that arises in attempting to
managing the current assets & current liabilities & the inter relationship that exits between them.
Working of a firm should neither be too large, too small. If the working capital is large,
the liquidity position would improve, but profitability would be advertise affected, as funds will
remain idle conversely, if the working capital is too small, the overall profitability, position &
make the firm more risky working capital management therefore at aim at striving a balance,
such that an enterprise is able to.
1. Generate cash in sufficient quantities at the right time &
2. Extract fullest use from each shot term resources used in business.
This involves planning & controlling all the items, which drains or augment liquidity.
The working capital is the lifeblood business, which circulates through the naves as shortterm investment in aforesaid areas. It is also regarded as a heart of business. If it becomes weak
the business can hardly prosper & survive. This brightness the opportunity for achieving highs of
success.

Type of Working capital

Introduction
The financial concept of working capital equates it with current assets. According
to this view the total of the working capital is the total value of the current assets of the
company. This is known as the Gross working capital.
According to the excess of current assets, over current liabilities. In other words, it
is the difference between current assets and current liabilities. This concept of working
capital is called the Net Working Capital.
Hence there two concepts of working capital.

1. Gross Working capital and

2. Net Working Capital

1. Gross Working Capital

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
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.

Advantages of working capital.

a) Financial managers are profoundly concerned with current assets.
b) Gross Working Capital provides the current amount of working capital at the right times.
c) It enables a firm to realize the greatest retime on it investment.
d) It helps the fixation of various areas of financial responsibility.

NET WORKING CAPITAL

The net working capital is the difference between current assets and current liabilities. The
concept of net working capital enables a firm to determine how much amount is left for
operational requirements. The net working capital is financed from long term sources which may
includes barrowed funds in the form of term loans, debentures etc. or own funds like ploughback profits, etc, or both. The management of net working capital is a long-term phenomenon
current liabilities include bills payable, sundry creditors, short-term loans advances and bank
OD.

Needles to say that the firm aims at maximizing the wealth of shareholders wealth .They
should earn sufficient return from its operations. To earn sufficient amt of profit it requires
successful sales utilized to their fullest capacity for this purpose proper management of working
capital is essential because fixed assets cant work without working capital.
Various research studies suggest. The Gujarat study team, Gujarat the SBI study team has
confirmed that inadequacy of working capital and improper management of working capital has
contributed enormously for the ailment of industrial enterprises.
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.

Factors determining working capital Requirements

Factors Determining Working capital Requirements

Nature of Business Seasonality of operations

.

Market Condition Supply condition C.A C.L

Financing of working capital

Introduction: This chapter put forth the discussion on the sources available for financing the
working capital of an organization.
Funding of working capital is continuous problem for all management. Basically
sources of financing working capital are broadly bifurcated into two sources they are as follows.

Sources of financing of working capital

1. Short Term Finance

2.Long Term Finance

Trade Credit

Share Capital

Bank Credit

Borrowing from Bank

Bank Financing of Accounts

Receivables

Public Deposits.

Factoring
Bank Financing of Inventory
Working Capital Financing

COMPONENTS OF WORKING CAPITAL

The components of working capital are:

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:

The firm also keeps funds for the safeguard against

uncertainties, which are an integral part of business operations.
Speculative Motive: To tap profits from opportunities arising from fluctuations in

commodity prices, security prices, interest rates etc. The company with surplus cash is in
a better position to exploit such situations.

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:

Traditional Credit analysis

Numerical Credit Scoring

Working capital composition

Introduction: This part unfolds the discussion on the composition of the working capital i.e. the
proportion different current assets is determined by the trade of between the two seemingly
opposite objectives of liquidity and portability.
Liquidity refers to the ability of an asset get convert into cash at short period and
without loss in value .A Company is said to liquid when they arise. This ability is also known as
technical solvency of the company. The creditors and other lenders of the company would like to
have the ability of meet their dues on their due dates this means much of the current assets

should be held in the form of cash and near near-cash items like marketable. Securities, But cash
is a non-earning asset and yield on marketable seethes will affect the profitability of the concern.
The consideration of the profitability requires that the level of current assets is
kept low and also such a form as will aid production and generate surplus. Thus the objectives of
liquidity (solvency) and profitability seem to operate in opposite to directions. While liquidity
requires large we current assets to be kept and of that mostly in cash and near-cash form
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.

Ratio Analysis
1) Net Working Capital:Net working capital is the difference between current assets and current Liabilities.
Years
2008-09
2009-10
2010-11
2011-12
2012-13

Current Asset
26352381.81
30087971.00
46858833.00
44389218.00
62495041.00

Current Liabilities
6122630.12
6843164.00
9979106.00
12123368.00
11527167.00

NWC
20229751.69
23244807.00
36879727.00
32265850.00
50967874.00

Ratio
60000000.00

NWC

50000000.00
40000000.00
30000000.00

Ratio

20000000.00
10000000.00
0.00
2008-09

2009-10

2010-11

2011-12

2012-13

year

INTERPRETATIO:In The year 2008-2009 the company has 20229751.69 N.W.C. In the
year 2009-10 the N.W.C is 23244807.00 and in the year 2010-11 the company has
36879727.00.NW.C But in the year 2011-12 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 2012-13
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
2008-09
2009-10
2010-11
2011-12
2012-13
Diagram:

Current Asset
26352381.81
30087971.00
46858833.00
44389218.00
62495041.00

Current Liabilities
6122630.12
6843164.00
9979106.00
12123368.00
11527167.00

Ratio
4.304
4.397
4.696
3.661
5.422

Ratio
6

Ratio

5
4
3

Ratio

2
1
0

2008-09

2009-10

2010-11

2011-12

2012-13

year

INTERPRETATION:The current ratio was 4.304 in the year 2008 2009 and the year 20092010 the current ratio was 4.397 and in the year 2010 -2011 the current ratio was 4.696 this show
the current ratio has increase every year but in the year 2011-2012 the current ratio was

decreased to 3.661.in the year 2012 2013 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

Cash in hand

2008-09
2009-10
2010-11
2011-12
2012-13

Cash at bank

322305.70
151478.00
125254.00
95663.00
64627.00

Current Liabilities

600000.00
600000.00
600000.00
600000.00
600000.00

6122630.12
6843164.00
9979106.00
12123368.00
11527167.00

Absolute
Liquidity Ratio
0.15
0.10
0.07
0.05
0.05

Diagram: Absolute Liquidity Ratio

0.16

ABR

0.14
0.12
0.1
0.08

Absolute Liquidity Ratio

0.06
0.04
0.02
0
2008-09

2009-10

2010-11

2011-12

2012-13

Year

INTERPRETATION:The absolute liquidity ratio was 0.15 in the year 2008-2009 and decreased
to 0.10 in the year 2009 2010 and it does not increase further up to 2010-2011.But in the year
2011 -2012 and 2012-2013 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
2008-09
2009-10
2010-11
2011-12
2012-13

Current Assets
26352381.81
30087971.00
46858833
44389218.00
62495041.00

Current Liabilities
6122630.12
6843164.00
9979106.00
12123368.00
11527167.00

Liquidity Ratio
4.30
4.40
4.70
3.66
5.42

Diagram: Liquidity Ratio

6
5

liqu
dity
ratio

4
3

Liquid
ity
Ratio

2
1
0
2008-09

2009-10

2010-11

2011-12

2012-13

year

INTERPRETATION:The absolute liquidity ratio was 4.30 in the year 2008-2009 and increases to 4.40 in the
year 2009 2010 and 4.70 in the year 2010-11, 3.66 in the year 2011-2012 it was decrease due to
increase of labilities.But in the year 2012 -2013 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
2008 2009
2009 2010
2010 2011
2011-2012
2012-2013

Profit After Tax

437894.00
423298.00
592576.00
843910.00
1039889.00

Current Asset
26352381.81
30087971.00
46858833.00
44389218.00
62495041.00

Ratio
0.016
0.014
0.012
0.019
0.016

Diagram: -

Return
on
Assets

Ratio
0.02
0.018
0.016
0.014
0.012
0.01
0.008
0.006
0.004
0.002
0

Ratio

2008-09

2009-10

2010-11

2011-12

2012-13

Year

INTERPRETATION:The Returns on current assets was 0.016 in the year 2008-2009 and it
decreased to 0.12 in the year 2009-2010. It further increased to 0.019 in the year 2010-2011 and
further decreased 0.016 in the year 2011-2012 .It shows that profit will increase then asset
turnover ratio will decline then C.A will increase but in the year 2012-2013 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

2008 2009

102199181.00

Average Current
Asset
19967762.36

Ratio

2009 2010

132858985.00

28220176.41

4.70 time

2010 2011

171671451.00

38473402.00

4.46 time

2011-2012
2012-2013

221246824.00
286246257.00

45624025.5
53442129.5

4.84 time
5.35 time

5.11 time

Diagram: Ratio
5.6
5.4
C.A.R

5.2
5
4.8

Ratio

4.6
4.4
4.2
4
2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

Year

INTERPRETATION:The current asset ratio was 5.11 times in the year 2008-2009 and 4.70 in
the year 2009-10 and 4.46 in the year 2010-2011 it was decreased. It further increased to 4.48 in
the year 2011-12 & 5.35 in the year 2012-2013. 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

2008 - 2009

102199181.00

19080194.95

5.35 times

2009 - 2010

132858985.00

27192101.00

4.88 times

2010 - 2011

171671451.00

36302837.00

4.72 times

2011- 2012
2012 - 2013

221246824.00
286246257.00

42584634.5
50516905.00

5.19 times
5.66 times

Diagram: Ratio
5.8
5.6
Debtors

5.4
5.2
5

Ratio

4.8
4.6
4.4
4.2
2008-09

2009-10

2010-11

2011-12

2012-13

Year

INTERPRETATION:The debtors turnover ratio was very less in the year 2010-11 at 4.72
times, but them it has increased to 5.19, 5.66 times in the year 2011-12 and 2012-13. 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

2008 -2009

96724469.00

82074994.50

1.17 times

2009 -2010

127553879.00

112554635.00

1.13 times

2010 -2011

165680148.00

146617013.50

1.13 times

2011-2012
2012-2013

213323185.00
276775674.00

189501666.50
245049429.50

1.12 times
1.12 times

Diagram: -

creditor

Ratio
1.18
1.17
1.16
1.15
1.14
1.13
1.12
1.11
1.1
1.09

Ratio

2008-09

2009-10

2010-11

2011-12

2012-13

Year

INTERPRETATION:The creditors turnover ratio was 1.17 times in the year 2008-2009 & it
decreased to 1.13 times in the year 2010-2011 but creditor turnover will be remain same two year
2009-2010 and 2010-2011.Thean it was again declined 1.12 in the Year 2011-2012. But it was
remain same in the year 2011-2012 and 2012-2013. 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: -

Net profit after Tax

x 100

Sales
Year

Net Profit After Tax

Sales

Ratio

2008 2009

437894.00

102199181.00

0.43 %

2009 2010

423298.00

132858985.00

0.32 %

2010 2011

592576.00

171671451.00

0.35 %

2011-2012
2012-2013

843910.00
1039889.00

221246824.00
286246257.00

0.38 %
0.36 %

Diagram:

profit

Ratio
0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0

Ratio

2008-09

2009-10

2010-11

2011-12

2012-13

Year

INTERPRETATION:The Net profit of the company 0.43% in the year 2008-2009,0.32 in

the year 2009-2010 , 0.35 in the year 2010-2011 ,0.36 in the year 2012-2013. Net profit ratio was
show the net profit after tax in the year 437894 in 2008-2009 but it was fall in the year 20092010 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.

Debt / Equity Ratio: - Long Term Borrowing

Share holder fund

Year

Long Term Borrowing

Share holder fund

Ratio

2008 2009

17020534.74

3281899.00

5.19

2009 2010

18599175.00

4705197.00

3.95

2010 2011

30650881.00

6297773.00

4.87

2011-2012
2012-2013

25230306.00
43831794.00

7141683.00
8181572.00

3.53
5.36

Diagram:
Ratio
6

Debt

5
4
3

Ratio

2
1
0
2008-09

2009-10

2010-11

2011-12

2012-13

Year

INTERPRETATION:In The year 2008-2009 debt equity ratio was 5.19 and 3.59 in the year
2009-2010 and 4.87 in the year 2010-2011 in the year 2009 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 2011-2012.but in the year 2012-2013 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

Net Working Capital

Ratio

2008 2009

102199181.00

20229751.69

5.05 TIME

2009 2010

132858985.00

23244807.00

5.72 TIME

2010 2011

171671451.00

36879727.00

4.65 TIME

2011-2012
2012-2013

221246824.00
286246257.00

32265850.00
50967874.00

6.86 TIME
5.62 TIME

Diagram:
Ratio
8.00

W.C

7.00
6.00
5.00
4.00

Ratio

3.00
2.00
1.00
0.00
2008-09

2009-10

2010-11

2011-12

2012-13

Year

INTERPRETATION:
In The year 2008-2009 working capital t/o ratio was 5.05 time ,5.72 time in the year 20092010.In the year 2009-2010 the working capital has increases because sales of the company has
increases. in the year 2010-2011 it was 4.65, 6.86,5.62 in the year 2011-2012 and 2012-2013.it
show the newly established company because the working capital up and down year to year.

Statement of changes in working Capital for the year 2008-2009

Particular
Current Asset
Sundry debtors
o/s more than 6 month
o/s less than 6 month

31-03-2009

31-03-2008

25402556.11

Nil
12757833.79

Increase
((Sources)
-

Decrease
(Application)
-

12644722.32

Cash & Bank Balance

Cash in hand
Balance with bank
Loans & Advance
Margin against Bank
guarantee
Accrued interest on
Margin Money
Tax deducted at source

322305.70

119298.12
0.00

600000.00

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 2012-2013

50000.00

16250.00

0.00

0.00

39761.00

28491.00

12769238.90

650000.00

16250.00
11270.00

Total 26352381.81
Current Liabilities
Sundry creditors

203007.58
-

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)

Statement of changes in working Capital for the year 2009-2010

Particular
Current Asset
Sundry debtors
o/s more than 6 month
Others
Cash & Bank Balance
Cash in hand

31-03-10

31-03-09

Increase

Decrease

28981646.00

25402556.11

3579089.89

151478.00

322306.00

170828.00

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.
T.D.S & Income Tax paid
Total
Current Liabilities
Sundry creditors

600000.00

600000.00

0.00

0.00

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)

Statement of changes in working Capital for the year 2010-2011

Particular
Current Asset
Sundry debtors
o/s more than 6 month
Others
Cash & Bank
Balance
Cash in hand

31-03-2011
833104.00
42790924.00
125254.00

31-03-2010

Increase

833104.00
28981646.00 13809278.00
151478.00

Decrease
26224.00

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

600000.00

600000.00

0.00

0.00

182081.00

49243.00

132838.00

1331945.00
995525.00

305604.00

1331945.00
689921.00

46858833.00 30087971.00 16770862.00

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 -

Statement of changes in working Capital for the year 2011-2012

Particular
31-03-2012
31-03-2011
Increase
Decrease
Current Asset
Sundry debtors
o/s more than 6 month
386945.00
833104.00
446159.00
Others
41158296.00
42790924.00
1632628.00
Cash & Bank Balance
Cash in hand
95663.00
125254.00
29591.00
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

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
-

44389218.00

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

9979106.00 2144262.00

4613877.00

Total

12123368.00

Networking Capital
(Current Asset
Current Liability)

32265850.00

36879727.00

Provisional Statement of changes in working Capital for the year 2012-2013

Particular
Current Asset
Sundry debtors
o/s more than 6 month
Others
Cash & Bank
Balance
Cash in hand

31-03-2013

31-03-2012

378114.00
59110455.00
64627.00

Increase

Decrease

386945.00
41158296.00 17952159.00
95663.00

8831.00
31036.00

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)

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 44389218.00 18105823.00

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 12123368.00

596201.00

32265850.00 18702024.00

50967874.00

The working of the company should be positive. It should not be negative. In the
year 2008-2009 Rs. 20229751.69 and in the year 2009-2010 Rs. 23244807.00 the working
capital has increased and 2010-2011, Rs.36879727.00 the working capital has increased but in
the year 2011-2012 Rs.32265850.00 the working capital has decrased.But in the year 2012-2013
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 year2012-2013 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.

FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS:-

The net working capital has declined in the year 2011-2012 and but the profit of the
company was increased in the year 2011-2012

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 2011-2012 and

Company is able to full the standard ratio of current assets and change in working
capital of 2011-2012 has declined.

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.
.

SUGGESTIONS: In the year 2011-2012 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 2011-2012.
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 2011-2012 but profit of the
company has increased in the year 2012-2013. 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 2011-2012 due to the sundry creditors has more
and Provision of tax has been vary high.

 Financial Statement

FINANCIAL STATEMENT 2012-2013

PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2013

Particulars

SCHEDULE

As At
31.03.2013

SOURCES OF FUNDS
SHAREHOLDERS FUNDS
Share capital
Reserves and Surplus

A
B

45,00,000.00
36,81,572.00
8181572.00

Share Application money Pending allotment

Secured Loans
Unsecured Loans
Deferred Tax Liability (Refer Note No. 10)

C
D
-

3,73,46,016.00
64,85,778.00
5,146.00

TOTAL
APPLICATIONS OF FUNDS
Fixed Assets:
Gross Block
Less: Accumulated Depreciation
Net Block
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)

52,018,512.00
E

12,91,998.00
2,67,700.00
10,24,298.00

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
5,09,67,874.00
26,340.00

TOTAL
5,20,18512.00