INTRODUCTION TO THE INDUSTRY

Indian leather industry is the core strength of the Indian footwear industry. It is the engine of
growth for the entire Indian leather industry and India is the second largest global producer of
footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok,
Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are
manufactured under license in India. Besides, many global retail chains seeking quality
products at competitive prices are actively sourcing footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the sandals and
chappals are produced in the household and cottage sector. The industry is poised for
adopting the modern and state-of-the-art technology to suit the exacting international
requirements and standards. India produces more of gents footwear while the worlds major
production is in ladies footwear. In the case of chapels and sandals, use of non-leather
material is prevalent in the domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes,
horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India are Shoes,
Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.
With changing lifestyles and increasing affluence, domestic demand for footwear is projected
to grow at a faster rate than has been seen. There are already many new domestic brands of
footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport,
etc. have also been able to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing methods to
automated footwear manufacturing systems. Many units are equipped with In-house Design
Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages that are
intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000,
ISO 14000 as well as the SA 8000 certifications. Excellent facilities for Physical and Chemical
testing exist with the laboratories having tie-ups with leading international agencies like
SATRA, UK and PFI, Germany.
One of the major factors for success in niche international fashion markets is the ability to cater
them with the latest designs, and in accordance with the latest trends. India, has gained

international prominence in the area of Colours & Leather Texture forecasting through its
outstanding success in MODEUROP. Design and Retail information is regularly made available
to footwear manufacturers to help them suitably address the season's requirement.
Strength of India in the footwear sector originates from its command on reliable supply of
resources in the form of raw hides and skins, quality finished leather, large installed capacities
for production of finished leather & footwear, large human capital with expertise and
technology base, skilled manpower and relatively low cost labor, proven strength to produce
footwear for global brand leaders and acquired technology competence, particularly for mid
and high priced footwear segments. Resource strength of India in the form of materials and
skilled manpower is a comparative advantage for the country.
The export targets from 2007-08 to 2010-11 as tabulated below reflects the fact that footwear
sector is the most significant segment of the Leather Industry in India.
The export targets from 2007-08 to 2010-11
(In Million US$)
Product

2006-07

2007-08

2008-09

2009-10

2010-11

Leather

688.05

726.85

785.00

847.80

915.63

Footwear

1212.25

1967.88

2597.60

3428.83

4526.05

Garments

308.98

358.53

372.87

387.78

403.30

Leather Goods

690.66

733.34

798.69

870.06

948.04

Saddlery & Harness

81.85

105.66

127.85

154.70

187.19

Total

2981.79

3892.26

4682.01

5689.17

6980.21

India has emerged in recent years as a relatively sophisticated low to medium

cost supplier to world markets The leather industry in India has been targeted
by the Central Government as an engine for economic growth. Progressively, the

Government has prodded and legislated a reluctant industry to modernise. India was noted as
a supplier of rawhides and skins semi processed leather and some shoes.

In the 1970s, the Government initially banned the export of raw hides and skins,
followed this by limiting, then stopping the export of semi processed leather and
encouraging

local

tanneries

to

manufacture

finished

leather

themselves.

Despite

protestations from the industrialists, this has resulted in a marked improvement in

the shoe manufacturing industry. India is now a major supplier of leather footwear
to world markets and has the potential to rival China in the future (60% of Chinese
exports are synthetic shoes).
India is often referred to as the sleeping giant in footwear terms. It has an installed
capacity of 1,800 million pairs, second only to China. The bulk of production is
in mens leather shoes and leather uppers for both men and ladies. It has over 100 fully
mechanised, modern shoe making plants, as good as anywhere in the world (including
Europe). It makes for some upmarket brands including Florsheim (US), Lloyd (Germany),
Clarks (UK), Marks and Spencer (UK).
India has had mixed fortunes in its recent export performance. In 2000, exports of
shoes were US$ 651 million, in 2001 these increased to 663 million but declined
in 2002 to 623 million dollars (See Statistics).
The main markets for Indian leather shoes are UK and USA, which between them
take about 55% of total exports.
India has not yet reached its full potential in terms of a world supplier. This is due
mainly to local cow leather that although plentiful, has a maximum thickness of 1.4
1.6mm, and the socio / political / infrastructure of the country. However, India
is an excellent supplier of leather uppers. Importation of uppers from India does not infringe
FTA with Europe or the USA.
The potential is set to change albeit slowly, but with a population rivalling China for
size, there is no doubt the tussle for world domination in footwear supply is
between these two countries.

Few Interesting Facts:

The Indian footwear retail market is expected to grow at a CAGR of over 20% for the

period spanning from 2011 to 2011.

Footwear is expected to comprise about 60% of the total leather exports by 2011 from

over 38% in 2006-07.

Presently, the Indian footwear market is dominated by Men's footwear market that

accounts for nearly 58% of the total Indian footwear retail market.
By products, the Indian footwear market is dominated by casual footwear market that

makes up for nearly two-third of the total footwear retail market.

As footwear retailing in India remain focused on men's shoes, there exists a plethora of
opportunities in the exclusive ladies' and kids' footwear segment with no organized

retailing chain having a national presence in either of these categories.

The Indian footwear market scores over other footwear markets as it gives benefits like

low cost of production, abundant raw material, and has huge consumption market.
The footwear component industry also has enormous opportunity for growth to cater to
increasing production of footwear of various types, both for export and domestic market.

In a Nutshell:
There are nearly 4000 units engaged in manufacturing footwear in India. The industry is
dominated by small scale units with the total production of 55%. The total turnover of the
footwear industry including leather and non-leather footwear is estimated at Rs.8500-9500
crore (Euro 551.3-1723.1 Million) including Rs.1200-1400 crore (Euro 217.6-253.9 Million) in
the household segment.
India's share in global leather footwear imports is around 1.4% Major Competitors in the export
market for leather footwear are China (14%), Spain (6%) and Italy (21%).
The footwear industry exist both in the traditional and modern sector. While the traditional
sector is spread throughout the country with pockets of concentration catering largely to the
domestic market, the modern sector is largely confined to select centres like Chennai, Ambur,
Ranipet, Agra, Kanpur and Delhi with most of their production for export.
Assembly line production is organized, and about 90% of the workforces in the mechanized
sector in South India consist of women. In fact, this sector has opened up plenty of

employment opportunities for women who have no previous experience. They are trained to
perform a particular function in the factory itself.

India's Leather & Leather Products Export Basket

Sales
45
40
35
30
25
20
15
10
5
0

Sales

STATISTICAL INFORMATION

Introduction to the Organization

2.1 Company Profile:
Founded by Mr. Trilok Chand Dewan Venus is a well known ISO certified footwear Brand.
In 1982 established as a partnership firm named Relax Rubber Products, was Later
reincorporated as a Public Limited Company (Closely Held ) named Venus Footarts Ltd. in
2006. Venus has been serving society with its quality footwear for more than two
decades.
Today, Venus employs over 1253 People with state of Art Infrastructure in Rajasthan. We have
a well distributed network of marketing/representative offices all over India. Venus
manufactures footwear for the entire family-ranging from casuals to formals from daily wear to
sports wear and from an elegant collection for ladies to a fun range for kids.

With in house designing and manufacturing facilities, we are one of the largest producers of
footwear in India. High-tech modern equipments and machines especially procured from
specialized venders across the world, are used to manufacture footwear at par with
international standards and quality.

Ultimate in design, comfort, and fit-each Venus product is the manifestation of our high
standards of workmanship and latest technology. Our products are sold widely not only in the
domestic market but also in the fashion conscious international markets across the globe.
We have always sought to be a value driven organization and have emerged as the most
preferred provider of value. As a brand, we are constantly evolving to keep pace with the
changing trends, styles, beliefs, and aspirations of people while maintaining the sanctity.

2.2 Vision
Headquartered in Rajasthan, Venus has a wide network of dealers has been created to
extend our reach not only inside India, but also across the borders with the sole purpose
of nurturing relationships with our valued customers and channel partners.

Our Success has its roots in our commitment to quality and excellence in all spheres of
our activities

Our vision is:

To cross every barrier and bring cutting-edge technologies to our country.

To produce something unique and different not only to satisfy our devotional
consumers, but also the successive generations.
To constantly upgrade the quality standards and increase productivity to fit to every
income bracket and age segment.
To continually strive to offer best value to our customers, employees and vendors.
To continue the untiring quest for discovering new business avenues and converting
them into successful enterprises.

Our strategy relies on growing, transforming, and building the business to ensure its
future success.

2.3 Cost Efficiency

We firmly believe that no business venture is successful unless its clientele is satisfied. To
achieve this end, we supply high quality products, while ensuring cost efficiency and timely
deliveries, culminating in long terms associations

We wish to:

Evolve with our customers needs.

Function in a transparent manner.

Respect our customers individuality.

Maintain confidentiality.

Encourage the spirit of entrepreneurship.

2.4 Growth:
Growth has always been a way of life for Venus.
Competent management with over 25 years of experience in the same line of business,
teamed with a well-defined organizational structure and experienced and qualified staff.
Bring in a high degree of operational expertise and efficiency. Diverse product range
comprising EVA footwear, canvas shoes, rubber slippers, and PVC moulded footwear for men,
woman and childrens leading to stability in revenues.

Substantial Growth
The companys revenues have been increasing at a compound annual growth rate (CAGR) of
about 5200 percent over the past three years (2007-05 to 2006-07).

Wide Geographical Reach

The companys products are sold in about 17 states, including, Rajasthan, Madhya Pradesh,
and Maharashtra through 150 distributors.

High near term business certainty as reflected in

Sales registered from April 1, 2010 January 31, 2011 amounting to Rs.42.69 crore.

Regular repeat orders due to long- standing relationships with distributors.

2.5 Management Profile:

Name : Mr. Trilok Chand Dewan

Designation : Managing Director
Current Responsibilities : Production, financial, and human resource
management
Age : 48 Years
Qualification : M.Com; CA (Inetermediate)
Experience : Over 25 Years in the same line of business

Name : Mr. Raj Kumar Agarwal (Friend of Mr. Trilok

Chand Dewan)
Designation : Director
Current Responsibilities : Marketing management
Age : 49 years
Qualification : B.Com; CA (Intermediate)
Experience : Over 25 years in the same line of business

Name : Mr. Subhash Chand Banka (Friend of Mr. Trilok

Chand Dewan)
Designation : Director
Current Responsibilities : Procurement management
Age : 48 years
Qualification : M.Com
Experience : Over 25 years in the same line of business

2.6 Products:For men:

Cooler

Fortune1

Gliders000

Windsor

Force10

Gliders11

For women:

Force 10

Gliders1000

Senorita

Tiptop

Tiptopp

For kids:

Footfun

Force102

Gliders

Perfect33

Safety shoes:

Pro_fd1

proo_fd3

warrior

warrior.33

2.7 Entry in export arena:

Venus Footarts entered the export arena in the year 1997 and began exporting to the U.K. and
other European countries. The product consisted mainly of canvas shoes and textile slippers.

Their capacity to produce canvas shoes for export is around 100,000 pairs a month. Our
customers are extremely happy with our quality and timely delivery.

2.8 Research and Development:

Venus Footarts has an extremely modern research and development section with a qualified
head and is constantly in the process of upgrading its products.

We trying to develop new items as well as accessories as may be required for the betterment
of the products from time to time and also satisfy customer demands domestic and
international.

2.8.1 Quality and Growth:

The organization believes in certain quality objectives which are as under:

To adopt and maintain the standard of the international quality management system
ISO 9001-2000.
To provide satisfactory customer service through continual improvement of product
quality.
100% on-time delivery.

10-15% increase in the present turnover.

To start a new plant of sheets and sports shoes, eva injection footwear.

2.9 Quality:
Quality is at the heart of Venus brand promise. We view Quality holistically and as an
integral part of our business management.

At Venus, quality isnt merely a set of predetermined standards to be adhered to. It has many
more dimensions: Quality of thought, Quality of action, Quality of people, and above all, Quality
of processes.

Our key quality targets are:

To be number one in Quality.

To be number one in product leadership through upgradation of existing products

enabling global acceptance.

To be number one in customer satisfaction and hence consumer loyalty.
To be number one in operational excellence.

Continuous innovation, application of latest technologies and regular feed-back from our
consumers has led to Quality-Improvement at all levels.

2.9.1 QUALITY POLICY:

We will satisfy our customers by supplying products as per requirements with timely
delivery.

 We will maintain continual improvement in all spheres of our activities. We will achieve
this by implementing effective methods to improve quality and by inculcating quality
culture in our company.

2.9.2 QUALITY OBJECTIVES:

To update the technologies and operating methods to maintain leadership in National /
International market.
To maintain leadership in market by manufacturing new hi-tech product.
To motivate the employees and improve there skills by regular training programmes.
To implement appropriate environment and safety measures.

2.10 VENUSS VARIOUS DEPARTMENTS AND ITS FUNCTIONS :

2.10.1 PURCHASE DEPARTMENT:

Purchase department deals with production planning and raw material required for production.
Purchase department also works according to the forecasting done by marketing department.

Main functions of purchase department:

Working according to production planning.

Fulfilling the requirement.

Providing guidance for purchase of material requirement.

Concerning with payments for purchase.

Purchase categories:

Raw material.

Capital goods.

Laboratory equipments.

Mechanical instrumentation and Electric items.

Miscellaneous material.

The sources of purchase are, chemical weekly, existing customers, Internet searching new
supplier, existing supplier etc.

2.10.2 MARKETING DEPARTMENT:

Marketing department is responsible for establishing and maintaining the procedure for
contract review and co-ordinates the activities.

To understand the needs of the customers and communicate it to the concerned

department.

To carry out the contract reviews and get it approved the commercial director.

To receive and record the customers complaints and communicate them to all

concerned department.
To organise the dispatch activities ass per dispatch schedule.
Department is concerned or responsible for the overall communication with customers.

SERVICES:

Credit pay facility depends upon customers requirements may be for the 90 days, 60

days, 30 days etc.

Transportation expenses added in the bills to the same extend.
365 days continuous service.
Exhibition for marketing.
Benefits-sales tax due to industry situated in D+ area.

2.10.3 PRODUCTION DEPARTMENT:

Production department is a responsible for handling the production activity, function of
production department are explain as below, To executive planned range of production. To
implement and follow the rules essential for a purpose of safety.

To control the production activity.

To implement safety equipollents as per need.
To control the performance of department.
To take correct actions on customers complaint, if any

2.10.4 QUALITY ASSURANCE DEPARTMENT:

To perform inspection and testing of raw material intermediates in process materials and
finished products in accordance with the quality plans and documented procedures.

To maintain inspection and test records up to date.

To ensure that calibration of inspection, measuring and testing equipments in Q.A.D.

(Quality Assurance Department) is done as per the plan.

To process the customer complaint to take necessary corrective actions.

To report production department on the non-conformity in intermediate, in process and

finished product.

2.10.5 STORES AND MATERIAL HANDLING

To receive, store and issue spare parts and other material to the respective department.

To maintain all purchase and store related records.

Take care/full precautions for leak safety and spillage for raw material, finished products
and storage tanks.

Manages the loading and unloading operation of raw material and finished products.

Carried out he calibration of weighing machine.

2.10.6 HUMAN RESOURCE DEPARTMENT

To conduct and arrange training for employees as per training needs.

To evaluate training programmes.

To appraise the performance of employees.

To provide safety requirement as per need.

It responsible for all welfare activities.

2.10.7 MAINTAINANCE AND INSTRUMENT DEPARTMENT:

To carry out breakdown maintenance and to put the equipment back in operation
without affecting the product.

To prepare preventive maintenance plan and to make appropriate changes whenever

necessary.

To prepare preventive maintenance plan and to maintain records for the same.

To co-ordinate with purchase department for the material required for the same.
Calibration and control of inspection, measuring and test equipments.

Electric department activities are covered under instrument department.

2.10.8 EXPORT DEPARTMENT:

Find out the potential customers through various sources.

Contact and negotiate with selected customers.

Preparation of various documents which are necessary for the export of product.

Find out the various govt. schemes for getting the incentives.

2.10.9 FINANCE DEPARTMENT:

This department keeps the record of the following things,

Sales volume of production.

Raw material cost.

Combination after raw material.

Total cost of production.

Gross profit.

Interest

Function:

To makes payments of vendors.

To verify the outstanding due of customers and to send outstanding reminders through
marketing department.

To manage finance for the company as for the guidelines from the commercial director /
executive director.

To make monthly reports.

To update of accounts.

To make cost analysis.

2.11 IMPLEMENTATION OF ERP:

ERPEnterprise Resource Planning:
All the functions carried out at BAL are integrated by the implementation of the ERP system.
The implementation of the ERP system is been started from the financial year 2009. Enterprise
resource planning is a software technology that helps to integrate all the functions of the
organization. ERP system helps in avoiding the duplication of work.For example, if the
customer places an order with the marketing department and as the marketing manager
accepts the order, the information of the same is been passed on to the production dept.( at
the factory). And the production dept. will accordingly prepare the production schedule. The
information of the production schedule will be passed on to the purchase dept. and accordingly
the latter will plan for the purchase of raw material. Any purchase of raw material made is
noted by the finance dept. and accordingly the payments are released.The staff at BAL is
undergoing training for the operation of the ERP system.
However, the ERP system provides the information required but the ultimate decision is to be
taken by the managers.

Introduction to the Topic

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.

3.1 Meaning of 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 featureso

o
o
o
o
o
o

Capital is a man made.

Capital is a perishable.
Capital is a human control possible.
Capital is a mobile.
Capital is a human sacrifice.
Capital is a scarce.
Capital is a passive factor.

3.2 Forms of capital:The Three Primary Types of Financial Capital

Equity Capital
Debt Capital
Specialty 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

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.

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.

3.3 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 shortterm 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.
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 short-term
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.

3.4 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, shortterm loans advances, inventories and marketable seventies.
Advantages of working capital:

Financial managers are profoundly concerned with current assets.

Gross Working Capital provides the current amount of working capital at the right

times.
It enables a firm to realize the greatest retime on it investment.
It helps the fixation of various areas of financial responsibility.

2. 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
plough-back 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.

3.5 Factors determining working capital Requirements

Factors Determining Working capital Requirements

Nature of Business Seasonality of operations

Market Condition Supply condition C.A C.L

3.6 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

Public Deposits.

Receivables

Factoring
Bank Financing of Inventory
Working Capital Financing

3.7 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.
Receivable 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.

3.8 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 producion.

RESEARCH METHODOLOGY
METHODOLOGY: In preparing of project the information collected from the two sources.

Primary Sources:

discussion with the concerned departmental persons.

Secondary Sources: Researcher was used secondary sources also for collecting

Primary sources include information collected through

the data. They are:

1. Information from the text sources
2. Information form the internet sources
3. Information from the materials provided by the concern

SAMPLING DESIGN:
1 Sampling unit

: Financial Statements

2 Sampling Size

: Last five years financial statements

4.1 Title of the Study: WORKING CAPITAL MANAGEMENT

4.2 Duration of the Project: 45 Days
4.3 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

4.4 Type of Research

Research
Research methodology is defined as a highly intellectual human activity used in the
investigation of nature and matter and deals specifically with the manner in which the data is
collected, analyzed and interpreted.

Research Design
Research design is a blueprint for any kind of research. It provides direction to the researcher
for further carrying on the research in the Population. Research design provides the glue that
holds the research project together. A design is used to structure the research, to show how all
of the major parts of the research project- the samples or groups, measures, treatments or
programs, and methods of assignment- work together to try to address the central research
questions. A research design lays the foundation for conducting the project. A good research
will ensure that the research project is conducted effectively and efficiently. Research design
involves following components or tasks:

Define the information needed

Design the exploratory, descriptive and causal phases of research.
Specify the measurement and scaling procedure.
Construct a questionnaire or an appropriate form for data collection
Specify the sampling process and sample size
Develop a plan for data analysis

Types of Research Designs:1. Exploratory Design.

2. Descriptive Design.

3. Causal Design.

Descriptive Design
Researcher adopt this type of research design to complete the report. Descriptive research
also known as statistical research, describes data and characteristics about the population or
phenomenon being studied. It basically deals with everything that can be counted and studied.
Descriptive research is preplanned and structured. A descriptive design requires clear
specification of the WHO, WHAT, WHEN, WHERE, WHY and WAY (the six Ws) of the
research.
The objective is to know the percentage (%) of phenomenon in population.

All perceptual studies are come under Descriptive study.

Where comparisons of two variables are done that is descriptive research.
In this design the variables are being predicted.

4.5 Sample Size and method of selecting sample

Sample:A sample is a sub group of the elements of the population selected for participation in the
study.
Sampling plan:Sampling is one of the most important aspects of Research design. It involves several basic
questions like should sample be taken, the size of sample, the kind of sample, process to be
followed etc. The objective of most marketing research projects is to get information about the
parameters of population.
Sampling unit:It is the basic unit containing the elements of the sample to be collected.
Here the sampling unit comprises of respondents as industries from all the states of north
India.

Convenience Sampling:- It is a Non probability sampling technique that attempts to obtain

a sample of convenient elements. The selection of sampling units is left primarily to the
researcher. It is an easy to measure and accessible.
Universe:Universe comprises the data of the past records of the company, which is Balance Sheet since
2007-2008 till 2011-2012.
Population:It is the aggregate of all the elements that share some common characteristics and which
comprise the universe for the purpose of marketing research problem. Population in this study
is all the industries in North India. In this report the population is the data of the past 5 years
Balance Sheet.

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 Venus Footart 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:3

Sampling unit

: Financial Statements & Audit Reports

Sampling Size

:Last five years financial statements

4.6 Scope of 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. 2007-2008, 2008-2009, 2009-2010, 2010-2011 and 20112012 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.

4.7 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.

FACTS AND FINDINGS

The net working capital has declined in the year 2010-2011 and but the profit of the
company was increased in the year 2010-2011

Venus Footart 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 2010-2011 and

Company is able to full the standard ratio of current assets and change in working
capital of 2010-2011 has declined.

ANALYSIS AND INTERPRETATION

Working Capital Analysis and Interpretation

1) Net Working Capital:-

Net working capital is the difference between current assets and current Liabilities.

Years

Current Asset

Current Liabilities

NWC

2007-08

26352381.81

6122630.12

20229751.69

2008-09

30087971.00

6843164.00

23244807.00

2009-10

46858833.00

9979106.00

36879727.00

2010-11

44389218.00

12123368.00

32265850.00

2011-12

62495041.00

11527167.00

50967874.00

70000000
60000000
50000000
40000000
Current Assets
Current Liabilities

30000000
20000000
10000000
0
2007-08

2008-09

2009-10

2010-11

2011-12

INTERPRETATION:In The year 2007-08 the company has 20229751.69 N.W.C. In the year 2008-09 the N.W.C is
23244807.00 and in the year 2009-10 the company has 36879727.00.NW.C But in the year
2010-11 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 2011-12 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 Venus Footart Ltd has always more &
sufficient working capital available to pay off its current liabilities.

Statement of changes in working Capital for the year 2007-08

Particular

31-03-2008

31-03-2007

Increase

Decrease

(Sources)

(Application)

Current Asset
Sundry debtors
o/s more than 6 month
o/s less than 6 month
Cash & Bank Balance
Cash in hand
Balance with bank
Loans & Advance
Margin against Bank
guarantee
Accrued interest on
Margin Money
TDS
Total
Current Liabilities
Sundry creditors
Lalit Bajaj
O/D with BOB
Provision s for exp
Mr.Pawan choudhary
Mr.Babita Choudhary
N.B Shetty
Income tax 2002-03
Income tax 2007-05
Total
Networking Capital
(Current Asset
Current Liability)

Nil
12757833.79

12644722.32

119298.12
0.00

203007.58
-

600000.00

650000.00

50000.00

16250.00

16250.00

0.00

0.00

11270.00
26352381.81

39761.00
13583142.91

12769238.90

28491.00
-

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

25402556.11
322305.70

30000.00

5513717.51

30000000
25000000
20000000
2007
15000000

2008

10000000
5000000
0
Assets

Liabilities

Current Assets 2007:- In total current assets, the part of debtors is very large. It shows
that the sales on credit of the company is a sensitive entry which should be deal with
proper management.

Current Assets 2008:- Loans and advances decreases but the credit sales increases.

Current Liabilities 2007-08:- The net working capital for the period 2007-08 is Rs.
20229751.69/-. Its a good indication to the top management of the company.

Statement of changes in working Capital for the year 2008-09

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

31-03-09

31-03-08

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

600000.00

600000.00

0.00

0.00

49243.00

16250.00

32993.00

305604.00
30087971.00

11270.00
26352381.81

294334.00
3735589.19

5663415.00
617659.00

5366937.00
522193.12

296478.00
95465.88

527500.00
34590.00
6843164.00

233500.00
6122630.12

294000.00

720533.88

23244807.00

20229751.69

3015055.31

goods, subject to
recover advance recover
in cash or kind or value.
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)

31000000
30000000
29000000
28000000
27000000
26000000
25000000
24000000
23000000
current assets 2008

Series 6
Loans &
Advance
In Fixed
Deposit
Cash in hand
sundry
debtors

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
current liabilities 2008

Provisions for
F.B.T
Provisions for
taxation
Other Liabilities
Sundry
creditors

35000000
30000000
25000000
20000000

C.A.
C.L.

15000000
10000000
5000000

C.L.

0
C.A.

2008
2009

Company maintain high current assets ratio at all stages of the past records of the company. In
present financial company shows that its current assets are much higher than its current
liabilities.

Statement of changes in working Capital for the year 2009-10

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

31-03-2010

31-03-2009

Increase

Decrease

833104.00
42790924.00

28981646.00

833104.00
13809278.0

0
Cash & Bank Balance
Cash in hand
Balance with schedule
bank
In Current A/C
In Fixed Deposit
Loans & Advance
Unsecured considered

125254.00

151478.00

26224.00

600000.00

600000.00

0.00

0.00

182081.00

49243.00

132838.00

1331945.00
995525.00

305604.00

1331945.00
689921.00

goods, subject to
recover advance recover
in cash or kind or value.
Sundry Advances
T.D.S & Income Tax paid

Total

46858833.00

30087971.00

16770862.0

0
Current Liabilities
Sundry creditors

8090866.00

5663415.00

2427451.00

891150.00

617659.00

273491.00

Provisions
Provisions for taxation
Provisions for F.B.T
Total

927500.00
69590.00
9979106.00

527500.00
34590.00
6843164.00

400000.00
35000.00
3135942.00

Networking Capital
(Current Asset

36879727.00

23244807.00

13634920.0

Other Liabilities

Current Liability)

Analysis through following charts:-

amount 2009

amount 2010

current
assets 2009

current
assets 2010

current
liabilities
2009

current
liabilities
2010

50000000
40000000
30000000

2009

20000000

2010

10000000

2010

0
2009

Assets
Liabilities

Statement of changes in working Capital for the year 2010-11

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

31-03-2011

31-03-2010

Increase

Decrease

386945.00
41158296.00

833104.00
42790924.00

446159.00
1632628.00

95663.00

125254.00

29591.00

600000.00

600000.00

0.00

0.00

276894.00

182081.00

94813.00

in cash or kind or value.

Sundry Advances
T.D.S & Income Tax paid
Total

431945.00
1439475.00
44389218.00

1331945.00
995525.00
46858833.00

443950.00
-

900000.00
2469615.00

Current Liabilities
Sundry creditors

9854397.00

8090866.00

1763531.0

801881.00

891150.00

0
-

89269.00

1362500.00

927500.00

435000.00

bank
In Current A/C
In Fixed Deposit
Loans & Advance
Unsecured considered
goods, subject to
recover advance recover

Other Liabilities
Provisions
Provisions for taxation

Provisions for F.B.T

Total

104590.00
12123368.00

69590.00
9979106.00

35000.00
2144262.0

0
Networking Capital
(Current Asset

32265850.00

36879727.00

4613877.00

Current Liability)

Analysis through the following chart:50000000

40000000
30000000

2010

20000000

2011

10000000
0
current assets

current aliabilities

100%
80%

2011

60%

2010

40%
20%
0%
Current Assets

Current Liabilities

INTERPRETATION:

The above graph shows that the position of the current assets is low in year 2011
compairation to the previous years current assets

And the current liabilities increases in the year 2011

Company still in strong position to override its liability.

But it indicates that the requirement of working capital is remain high.

Provisional Statement of changes in working Capital for the year 2011-12

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

31-03-2012

31-03-2011

Increase

Decrease

378114.00
59110455.00

386945.00
41158296.00

17952159.0

8831.00
-

0
Cash & Bank Balance
Cash in hand
Balance with schedule
bank
In Current A/C
In Fixed Deposit
Loans & Advance
Unsecured considered

64627.00

95663.00

31036.00

600000.00

600000.00

0.00

0.00

320425.00

276894.00

43531.00

431945.00
1589475.00
62495041.00

431945.00
1439475.00
44389218.00

0.00
150000.00
18105823.0

0.00
-

goods, subject to recover

advance recover in cash
or kind or value.
Sundry Advances
T.D.S & Income Tax paid
Total

0
Current Liabilities
Sundry creditors
Other Liabilities
Provisions
Provisions for taxation
Provisions for F.B.T
Total

8916827.00
418250.00

9854397.00
801881.00

937570.00
383631.00

2012500.00
179590.00
11527167.00

1362500.00
104590.00
12123368.00

650000.00
75000.00
-

596201.00

Networking Capital
(Current Asset Current

50967874.00

32265850.00

18702024.0

Liability)

Analysis through the following chart:-

current assets 2011

80000000
60000000
40000000
20000000
0

current liability 2012

current liability 2011
current assets 2012

current assets 2012

current liability 2011
current liability 2012

current assets 2011

amount

80000000
60000000

2011

40000000

2012

20000000

2012

0
2011

Current Assets
Current Liabilities

INTERPRETATION:-Overall position of the company is fine because its working capital

analysis shows that the current assets of the company are 2 or 3 times higher than the current
liabilities of the company.but this god condition brings a minus point also that the requirement
of the amount equal to the working capital is very high.

SWOT
Strengths

Track record of growth in turnover and profits

Superior quality

Vast experience in domestic and export market

Weaknesses

High prices

High lead time

Less Variety in sports shoes

Opportunity

Quicker response to customers need

To increase share in non leather products

Threats

Heavy competition

More aggressive marketing by foreign competitors in sports shoe markets

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 Venus Footart Ltd Is found to be very
effective. The working capital contains the management of Cash, Debtors, and creditors.
Venus Footart 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.
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.
The working of the company should be positive. It should not be negative. In the year 20072008 Rs. 20229751.69 and in the year 2008-2009 Rs. 23244807.00 the working capital has
increased and 2009-2010, Rs.36879727.00 the working capital has increased but in the year
2010-2011 Rs.32265850.00 the working capital has decrased.But in the year 2011-2012 the
working capital of Venus Footart Ltd has again increased Rs.5067874.00
Venus Footart Ltd working capital has incrasesed which is favorable position to the company.
It clearly shows that Venus Footart 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 year 2011-2012 Venus Footart Ltd Net Working Capital has increased
Rs.50967874.00, which is a very positive sign of prosperity and it, will help to the Venus
Footart Ltd sustain its expansion programs

Recommendation and Suggestions

In the year 2010-2011 the current assets of the Venus Footart 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 2010-2011.

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 2010-2011 but profit of the
company has increased in the year 2011-2012. 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 2010-2011 due to the sundry creditors has more and

Provision of tax has been vary high.

Appendix
FINANCIAL STATEMENT 2011-2012

PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2012

Particulars

SCHEDULE

As At
31.03.2012

SOURCES OF FUNDS
SHAREHOLDERS FUNDS
Share capital

45,00,000.00

Reserves and Surplus

36,81,572.00
8181572.00

Share Application money Pending allotment

3,73,46,016.00

Secured Loans

64,85,778.00

Unsecured Loans

5,146.00

TOTAL
APPLICATIONS OF FUNDS

52,018,512.00
E

Fixed Assets:
Gross Block

12,91,998.00

Less: Accumulated Depreciation

2,67,700.00

Net Block

10,24,298.00

INVESTMENTS

Current Assets, Loans & Advances

5,94,88,569.00

Sundry Debtors

6,64,627.00

Cash and bank balances

23,41,845.00

Loans and Advances

62,495,041.00

Less: Current Liabilities & provisions

Current Liabilities

93,35,077.00

Provisions

21,92,090.00

NET CURRENT ASSETS

Miscellaneous Expenditure

5,09,67,874.00
26,340.00

( To the extent not written off or adjusted)

TOTAL

5,20,18512.00

Bibliography
From Books:
Jat D.R. (2010). Elements of Financial Management. Jaipur: Malik And Company.
Ghose Gourab (2012). Analysis of profit. Allahabad: Shuchita Prakashan (P) Ltd.

Gopala Krishna Murthy G(2012).Towards Better Working Capital Management:

ICFAI.

Dr Alok B Shah(2012). Working Capital Management

From Websites: MBA Project guide(2008, Oct. 31) . Retrieved(2012, Sept. 26) from
http://www.mbaclubindia.com/forum/project-guide-for-mba-service-offered.asp
http://www.venusfootarts.com/about_us.html
http://www.indiamart.com/company/2530780/
http://catalogs.eworldtradefair.com/venusfootartsltd_contactus_81313.html