Introduction Of The Company –

S.H.A.M.K. International Private Limited is a Private incorporated on 12 July 1996. It is

classified as Non-govt company and is registered at Registrar of Companies, Mumbai..It is
inolved in Other wholesale [Includes specialized wholesale not covered in any one of the
previous categories and wholesale in a variety of goods without any particular specialization.]

S.H.A.M.K. International Private Limited's Annual General Meeting (AGM) was last held on 30
September 2017 and as per records from Ministry of Corporate Affairs (MCA)

Directors of S.h.a.m.k. International Private Limited are –

1) Shiney Santo Badlani,

2) Divya Daulat Setpal,

3) Komal Chandraprakash Tulsiani,

4) Ria Mahesh Ahuja

S.H.A.M.K. International Private Limited's Corporate Identification Number is (CIN)

U51900MH1996PTC101010 and its registration number is 101010.

Current status of S.H.A.M.K. International Private Limited is - Active.

Authorised Capital ₹119,100,000

Paid up capital ₹2,635,300

Number of Employees 20-100

 LITERATURE REVIEW:

1) Defined Strategies For Financial Working Capital Management

Citation - Anna-Maria Talonpoika, Timo Kärri, Miia Pirttilä, Sari Monto, (2016) "Defined
strategies for financial working capital management", International Journal of Managerial
Finance, Vol. 12 Issue: 3, pp.277-294

The writing survey exhibited the associations of the budgetary working capital with other
monetary factors that were mostly utilized as a part of this examination to detail techniques for
the administration of money related working capital. The money related working capital and
different parts of working capital were estimated in fiscal esteem, which was additionally utilized
as a part of past investigations that utilized the dynamic model of working capital as a system.
Techniques have been made for the operational administration of working capital, however the
overview on the money related administration of working capital concentrates solely on the
budgetary investigation of organizations. The methodologies exhibited in this investigation are
gone for enhancing monetary working capital by expanding the process duration of budgetary
working capital. Moreover, the procedures don't focus on dealing with the parts of the budgetary
working capital and, rather, concentrate on factors that impact the process duration of the
monetary working capital. Concentrates on the organization of money related working capital
have been very hard to discover in light of the fact that the vast majority of the investigations
have been displayed at meetings and productions are in diaries that are not ordered in universal
databases. Examination research could likewise be led to contemplate momentum practices of
overseeing working capital in organizations. These practices have been mapped for the
operational administration of working capital, however there is no exploration on the
organization of monetary working capital. The impact of loan fees and the monetary cycle on
money related working capital administration procedures could be examined later on. Future
research may have a definite part of dealing with the components of money related working
capital, as this examination concentrated just on the factors that impact the process duration of
budgetary working capital.

2) The Effect Of Financial Factors On Firms‟ Financial And Tax Reporting

Decisions

Citation - Yunsung Koh, Hyun-Ah Lee, (2015) "The effect of financial factors on firms‟
financial and tax reporting decisions", Asian Review of Accounting, Vol. 23 Issue: 2, pp.110-138,

As described in the article, the authors classify the sample companies in aggressive financial
companies or aggressive tax reporting companies based on average values of discretionary
income and tax evasion. The average value of ICM is 0.000, which indicates that loans from
affiliated companies do not absorb much of a company's total debt. In terms of debt ratios,
aggressive financial reporting companies show higher average values than aggressive tax
reporting companies. For the long-term debt ratio, aggressive financial reporting companies are
lower than the aggressive tax reporting companies. These results are consistent with their
expectations that companies with a high debt / GDP ratio and / or funding gap will be aggressive
in the financial statements, while companies with greater access to ECM are likely to be
aggressive in fiscal reporting. To specify, for companies with a debt / GDP ratio below a certain
limit, companies are more likely to be aggressive in the financial statements as the debt-to-GDP
ratio increases. These results indicate that companies with higher long-term debt ratios are more
inclined to declare aggressive taxes, which support their H2. Companies with more long-term
financing have a lower liquidity risk and fewer incentives to manage the renewal gains of short-
term debt contracts than companies with short-term debt financing. The results imply that
companies will probably be aggressive in the financial statements when the level of funding gap
is high, which supports their H3. For companies with a financing gap, the limitation of capital
financing is a critical issue because the ongoing concern can also be threatened by the lack of
liquidity risk management.
 3) Working Capital And Firm Value In An Emerging Market

Citation - Shaista Wasiuzzaman, (2015) "Working capital and firm value in an emerging market",
International Journal of Managerial Finance, Vol. 11 Issue: 1, pp.60-79,

Erasmus finds a negative relationship between the various measures of working capital and
profitability. A profitability study is not sufficient because "these accounting data may have little
to do with what is good or bad for the company" and the goal of maximizing the value of the
company concerns both security and benefits. There are no studies on the valuation of working
capital, but there is a substantial and growing amount of work done in the management of
liquidity and the value of the company. Chen finds a positive influence on liquid assets in the
valuation of the company, which suggests that the market evaluates liquidity, although
Faulkender and Wang show the possibility of a higher limit on the amount of money for which
the market rewards companies. Unlike liquid assets, the ratio between working capital and the
value of the company has not been exhaustively studied. Using the Rappaport model, the
Strischek conceptual study shows that higher cash flows resulting from better working capital
management imply lower capital cost and higher capital value. They are the first to empirically
test the relationship between working capital management and the value of the company.The
investment in NWC decreases when a company has more reserves against taking control,
emphasizing the importance of considering agency costs when trying to understand the effect of
working capital management on the value of the company. The study of the link between
working capital and business performance reveals that the relationship between the investment of
working capital and the company's performance is not linear, which implies that there should be
an optimal level of working capital capable of balancing the costs and benefits and maximize
performance. It confirms the effect of managing working capital on the wealth of shareholders,
but finds that cash will be valued more than working capital. So far, the studies on the valuation
of working capital confirm two things. Firstly, working capital significantly influences the value
of the company and, secondly, funding limits play an important role in this relationship

.
 4) Negotiated Capital: Conflict, Its Resolution, And Workplace Social Capital

Citation - Ariel C. Avgar, (2010) "Negotiated capital: conflict, its resolution, and workplace
social capital", International Journal of Conflict Management, Vol. 21 Issue: 3, pp.236-259

This article focuses on two of these three types of conflict, task and relationship. This is in
keeping with the majority of existing research, which has primarily examined these two
categories of conflict (for a similar approach see Langfred, 2007). There were no significant
differences between the two samples and analysis of data from each reveals no meaningful
differences from the results reported below. As is seen in Table I, the correlation between
relationship conflict and task conflict is high. It should be noted that a number of previous
studies have reported a high correlation between these constructs (for a review see Simons and
Peterson, 2000). Recently Langfred (2007) reported a correlation of 0.88 between these two
constructs. Unlike patient care conflict, the effects of task and relationship conflict on
perceptions of social capital remained consistent when the other two types of conflict were not
controlled for. The authors conducted a post hoc test after their hypothesis of a positive
relationship between task conflict and group cohesion was not supported. A similar analysis was
conducted for patient care and relationship conflict with no support for a curvilinear relationship.

5) Growth Options, Dividend Payout Ratios And Stock Returns

Citation- George Li, (2016) "Growth options, dividend payout ratios and stock returns", Studies
in Economics and Finance, Vol. 33 Issue: 4, pp.638-659

The author studies the impact of the dividend amount on the impulse of the stock price. He
discovers that earnings from stock prices tend to be lower among companies that pay dividends
than their counterparts that do not pay due to differences in the returns of losers. In particular, he
argues that investors tend to underestimate the negative news of the losers, reduce the impulse of
the returns and reduce the payers' profits, and underestimate the positive news of the dividend
growth announcements of the winners and the news. Negative ads that decrease the losers'
dividends are the main reason for the greater momentum benefits for the strategies based on
these actions. Study the impact of dividend yield on the dynamics of the stock price in the UK
stock market. The impulse tends to be the most effective in the quintile with the lowest dividend
yield. Sagi and Seasholes study different specific characteristics of the observable society and its
impact on the impulse of share prices. In both sets of data, momentum strategies used by
companies with high volatility in revenue growth, low costs and valuable growth options
outperform traditional momentum strategies of around 5% per annum. Most importantly, unlike
most empirical research work, this study also presents an analytical model to help explain why
specific attributes of the company contribute to strengthening the effect of the moment. Recent
years have seen many studies on the promotion of share prices. While these studies also examine
stock price strategies in several end markets, they do not address the research topic in this paper.

6) Financial Intermediation And The Great Depression: A Multiple Equilibrium

Interpretation

Citation - RussellCooper,1995 „ Financial intermediation and the Great Depression: a multiple

equilibrium interpretation‟ Carnegie-Rochester Conference Series on Public Policy Volume 43,
December 1995, Pages 285-323

The creator watched that the quantitative conduct of business-cycle models in which the
intermediation procedure acts either as a wellspring of changes or as a propagator of genuine
stuns. In neither one of the cases do we discover persuading proof that the intermediation
procedure is a critical component of total changes. For an economy driven by intermediation
stuns, utilization isn't smoother than yield, venture is contrarily corresponded with yield,
varieties in the capital stock are very vast, and loan costs are procyclical. The model economy in
this manner neglects to coordinate unlimited minutes for the U.S. economy. We likewise
fundamentally appraise parameters of a model economy in which intermediation and efficiency
stuns are available, considering the intermediation procedure to engender the genuine stun. The
unlimited connections are nearer to those watched just when the intermediation stun is
moderately insignificant.

7) The Effects Of Alliance Portfolio Characteristics And Absorptive Capacity

On Performance

Citation - Gerrard george (2001) The effects of alliance portfolio characteristics and absorptive
capacity on performance The Journal of High Technology Management Research

Volume 12, Issue 2, September 2001, Pages 205-226

The author found that utilizing proportion investigation the money related execution of an
example of free single-plant designing firms in Leeds is analyzed with respect to basic and
locational contrasts in foundations. Various determinants of execution are inferred and tried
against the built information base. Internal city designing firms perform moderately less well on
all pointers of execution contrasted and external city firms. The investigation outlines the
significance of utilizing distinctive measures of execution since this influences the greatness and
criticalness of the outcomes. Budgetary help is important to maintain designing in the inward
city over the long haul..

8) Financial Analysis Using The Statement Of Cash Flows

Citation - Raymond S Schmidgall (2003 8) Financial Analysis Using The Statement Of Cash
Flows) Volume: 34 issue: 1, page(s): 46-53

Issue published: February 1, 1993

The author watched that Managers utilize numerous monetary proportions to judge the wellbeing
of their organizations. With the current prerequisite of an announcement of income (SCF) by the
Financial Accounting Standards Board, supervisors now have another arrangement of
proportions that will give a sensible photo of the business. The proportions incorporate income
premium scope, income profit scope, and income from operations to trade stream out
speculations. These proportions are especially helpful in light of the fact that they indicate
changes in a lodging or eatery's money position after some time, as opposed to at a given minute,
similar to the case with numerous different proportions.

9) Comparing Financial Performance: Ratio Analysis And Retail Management

Citation - Leslie Chadwick, (1984) "Comparing financial performance: Ratio analysis and retail
management", Retail and Distribution Management, Vol. 12 Issue: 2, pp.35-37

The author watched that the money related structure of an example of Indian non-monetary
organizations utilizing another and one of a kind dataset comprising of a board containing the
distributed records of right around 900 organizations that distributed a full arrangement of
records each year amid 1989-99. In another takeoff in the writing, the dataset incorporates cited
and unquoted organizations. We contrast the sources-utilizes approach with breaking down
organization money related structures with the advantage obligation approach. We utilize both
ways to deal with portray and to look at the monetary structures of Indian organizations after
some time; amongst cited and unquoted organizations; and between organizations which have a
place with a business gathering and those that don't. At long last, we contrast our outcomes with
those acquired beforehand for India and for the modern nations.
 10) The Hedge Ratio And The Empirical Relationship Between The Stock
And Futures Markets: A New Approach Using Wavelet Analysis

Citation - Francis In and Sangbae Kim The Journal of Business Vol. 79, No. 2 (March 2006), pp.
799-820

In this article, we utilize wavelet examination to propose another way to deal with explore the
connection amongst stock and fates markets at various time scales. To inspect the connection
amongst postponement and deferral between the two markets, we utilized the Granger causality
test for various time scales. The wavelet connection is evaluated by testing the relationship
between's the two markets at different time scales by wavelet coefficients. The wavelet
investigation is performed utilizing the wavelet channel LA (8) and concedes four primary
conclusions. To begin with, it developed that stock and prospects markets demonstrate an input
relationship paying little respect to the time scale. Besides, it is discovered that there is an
inexact direct connection between the wavelet change and the wavelet scale, which shows the
capability of long memory in the unpredictability arrangement. Both the wavelet fluctuations and
the covariances of the value and future returns diminish with the expansion of the wavelet time
scale. When all is said in done, wavelet changes demonstrate that the prospects advertise is more
unpredictable than the share trading system, paying little mind to the time scale, which is
predictable with Lee's outcomes. The greatness of the connection increments with the expansion
of the time scale, which shows that the stock and fates markets are not in a general sense
extraordinary. The factual thinking is that commotion in the market has a tendency to be deleted
after some time; The genuine fundamental connection amongst stock and fates costs lies in long
venture skylines, confirm by the MRA wavelet. Our outcome shows that as the wavelet time
scale expands, the disintegrated information approach the long haul incline. Our outcomes show
that the financial specialist with to a great degree generally safe repugnance has the best here and
now scope, while a speculator with a to a great degree high hazard avoidance can accomplish the
best long haul scope. A financial specialist with direct hazard avoidance has the best utility in the
medium term.
 11) Capital Structure In Corporate Spin‐Offs

Citation - Amy Dittmar The Journal of Business Vol. 77, No. 1 (January 2004), pp. 9-43

In spite of broad research into how organizations decide their capital structures, the bewilder of
the capital structure wins. One of the challenges experienced by scientists in these investigations
is that an organization can veer off from its target use proportion. These deviations originate
from the way that operational and monetary choices drive use above or underneath the
organization's target and exchange expenses and economic situations can avert prompt
alterations. The exact investigations utilizing corporate year-end obligation rates along these
lines twist the effect of the variables affecting the decision of use. In particular, development is
adversely connected and the estimation of the certification is decidedly related with the decision
of use. In addition, gainfulness isn't conversely identified with the decision of use and is
emphatically corresponded with the distinction in the proportion between an organization's real
and expected use. This outcome is rather than the aftereffects of numerous different examinations
on capital structure that locate a negative connection between the use proportions of benefit and
non-benefit organizations. When development is controlled, any negative relationship that
remaining parts amongst use and benefits repudiates the exchange off hypothesis. This article
concentrates on picking the underlying influence in a corporate turn off and how these use
proportions are contrasted with organizations that don't issue. The primary goal of this article
was to better comprehend the already recorded variables to impact use. This article does not
endeavor to clarify how chronicled working and financing choices influence use. Seeing how
organizations deal with their use after some time is a vital and intriguing inquiry, however it goes
past the extent of this article.

12) “An Overview Of Working Capital Management And

Corporate
Financing”,(1984)

Citation - C.L. Pass, R.H. Pike, (1984) "An Overview of Working Capital Management and
Corporate Financing", Managerial Finance, Vol. 10 Issue: 3, pp.1-11,
The research portrays that in the course of recent years major hypothetical advancements have
happened in the territories of longer-term speculation and money related basic leadership. A
significant number of these new ideas and the related procedures are currently being utilized
effectively in modern practice. By differentiate, far less consideration has been paid to the region
of here and now fund, specifically that of working capital administration. Such disregard may be
adequate were working capital contemplations of generally little significance to the firm,
however viable working capital administration has an essential part to play in upgrading the
benefit and development of the firm. Surely, encounter demonstrates that lacking arranging and
control of working capital is one of the more typical reasons for business disappointment.

13) “The Effect Of Working Capital Management On Firm Profitability

Citation - Samiloglu F. and Demirgunes K., The International Journal of Applied Economics and
Finance

Year: 2008 | Volume: 2 | Issue: 1 | Page No.: 44-50

The principle point of this article is to look at the impact of working capital on productivity of
Indian firms. We gathered information about an example of 263 non-money related BSE 500
firms recorded at the Bombay Stock (BSE) from 2000 to 2008 and assessed the information
utilizing OLS different relapse. The discoveries of our investigation altogether leave from the
different global examinations led in various markets. The outcomes uncover that working capital
administration and productivity is emphatically associated in Indian organizations. The
examination additionally uncovers that stock of number of days and number of days creditor
liabilities are adversely connected with a company's productivity, though number of days
accounts receivables and money change period display a positive association with corporate
benefit. The present investigation adds to the current writing by looking at the impact of working
capital administration on gainfulness with regards to a rising capital market, for example, India.
 14) “Working Capital Management: An Urgent Need To Refocus

Citation - Maynard E. Rafuse, (1996) "Working capital management: an urgent need to

refocus", Management Decision, Vol. 34 Issue: 2, pp.59-63

Contends that endeavors to enhance working capital by deferring installment to lenders are counter ‐productive to people
and to the economy in general. Cases that modifying indebted person and lender levels for singular levels inside an esteem
framework will seldom create any net advantage. Suggests that stock diminishment creates system‐wide money related
changes and other vital advantages. Desires those associations looking for concentrated working capital lessening
methodologies to concentrate on stock administration procedures in view of "lean supply‐chain" strategies..

Research Gap –

The research gap here is to analyze the liquidity as well as the profitability of the company and
prepare a report of the company‟s annual performance in respect to the industry. This is defined
as the research gap as no one has attempted to do so for the company.

Research Problem

“To make a Financial Analysis of financial statements and an analytical report of the Working
Capital management of S.H.A.M.K. INTERNATIONAL PRIVATE LIMITED‟‟
Research Objectives -

 To analyze the financial statements and define the liquidity and profitability of the
company
 To compare the past and the present financial performance of the company.
 To provide suggestions from the above analysis
 To analyze the working capital usage and help minimizing the cost of capital and
determine the optimum return on current asset assessment
 To provide suggestions in order to efficiently use the working capital

RESEARCH METHODOLOGY

Research Design Used in this Project

Research Design chosen for this study is Descriptive Research Design. Descriptive study is
based on some previous understanding of the topic. Research has got a very specific objective
and clear cut data requirements.

Sampling Design

The sample size of past 5 years is taken for present study.

DATA COLLECTION

Primary data -

As this project is based on secondary data, the only form of primary data used here was guidance
and review of the research work done by the finance managers.

Secondary data -

Data comprise of annual reports and past records. The company has provided me annual reports.
Other financial statements I have got through the internet.
Sources of secondary data –

 Company Website
 Ministry of Corporate Affairs Website
 Annual Report of the company