WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
SL.NO.
CONTENTS
1
PAGE NO.
CHAPTER 1
EXECUTIVE SUMMERY
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
3 TO 7
INDUSTRY PROFILE.
COMPANY PROFILE
NEED FOR STUDY
OBJECTIVE OF THE STUDY
RESERCH METHDOLOGY
FINDING
SUGGESTION
CONCLUSION
2
CHAPTER 2
INTRODUCTION OF INDUSTRY
8 TO 14
INDUSTRY PROFILE
3
CHAPTER 3
INTRODUCTION OF COMPANY


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



4
15 TO 34
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
RESEARCH METHDOLOGY



35 TO 39
SCOPE OF STUDIES.
OBJECTIVE OF STUDIES
METHDOLOGY
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
CHAPTER 5
5
WORKING CAPITAL MANAGEMENT
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
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





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.
6
CHAPTER 6
DATA ANANLYSIS AND INTERPRETATION
7
53 TO 70
CHAPTER 7



FINDINGS
SUGGESTIONS
CONCLUSIONS
71TO 77
ANNEXURE
BALANCE SHEET
BIBLOGROPHY
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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 19th 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 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.
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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. 20042005, 2005-2006, 2006-2007, 2007-2008 and 2008-2009 Graphs, diagrams and tabulation
methods are used to analyze and interpret the data collected. It will help to understand the
company’s liquidity position.
LIMITATION OF THE STUDY
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD

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 i.e. Mr. Parihar and Mr. Manoj.R
 Secondary Sources:
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
Sampling Size
:Last five years financial statements
Finding and Suggestion:
Finding:
The net working capital has declined in the year 2007-2008 and but the profit of the
company was increased in the year 2007-2008
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
The Shree dayal tours & Travels Pvt Ltd has abled to repay the liability & loan of the
creditors or not.

Suggestion: In the year 2007-2008 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 2007-2008.

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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 INDUSTRY PROFILE.
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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 little’s 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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.
D. & R.G. "Uncle Sam," c. 1916.
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 cross-country
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 grade, then climbed
aboard and rode on the car during the descent. The
streetcar line was abandoned in 1926 in favor of cheaper Littleton's street car, c. 1910.
o run and more flexible buses.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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.
Dr. and Mrs. Crysler in their first
automobile, 1909.
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 company’s
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD

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
Company’s 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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 COMPANY PROFILE.
 VISION, MISSION AND GOAL
 BOARD OF DIRECTORS
 OBJECT OF SDT&TPL
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL 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 boarding’s houses and to handle
cargoes ,goods ,luggage or baggage’s and
also to book ,and secure accommodations
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
customer’s 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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
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4 Days 3
Hotel
Nights
Khajuraho
Jabalpur
BedaghatW6
4 Days 3
Hotel
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Nights
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
Katra
Vaishnode
vi-W7
Jaipur-W8
Pondicher
ry
Mahabalip
uram-W9
Cochin
MunnarWC
4 Days 3
Hotel
Nights
4 Days 3
Hotel
Nights
4 Days 3
Hotel
Nights
4 Days 3
Hotel
Nights
Name of Domestic Airlines:-
 Kingfisher Red.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 Jet Airways
 Indian Airlines.
 Spice Jet.
 Indigo
 Go Air
 Air Deccan
Name of International Airlines:Sr.No
AIRLINE NAME
PREFIX
CODE
1
Singapore Airline
SQ
618
2
Silk Air
MI
629
3
Continental Airline
CO
005
4
Sri Lankan Airline
UL
603
5
Dragon Air
KA
043
6
Royal Dutch Airline
KL
074
7
Kenya Airways
KQ
706
8
Air Canada
AC
014
9
Korean Air
KE
!80
10
Thai Airways
TG
217
11
Northwest Airlines
NW
012
12
American Airlines
AA
001
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
13
Qatar Airways
QR
!57
14
Air India
AI
098
15
Air One
AP
867
16
Bangkok Airways
PG
829
17
Gulf Air
GA
084
18
Air Mauritius
MK
239
19
Jet Airways
9W
589
20
LAN Chile
LA
045
21
LAN Peru
LP
544
22
LAN Argentina
4M
469
23
Austrian
OS
257
24
Philippine Airlines
PR
079
25
Swiss Airline
LX
724
26
Royal Jordanian
RJ
512
27
South African Airways
SA
083
28
Virgin Atlantic
VS
932
29
Saudi Airlines
SV
065
30
Egypt Airlines
MS
077
31
Japan Airlines
JL
131
32
Air China
CA
999
33
British Airways
BA
125
34
Indian Airlines
IC
297
35
China Airlines
CI
297
36
Turkish Airlines
TK
235
37
Air New Zealand
NZ
086
38
Kuwait Airlines
KU
229
39
Air France
AF
057
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
40
China Southern
CZ
784
41
Kingfisher
IT
090
42
Oman Air
WY
910
43
EVA Air
BR
695
44
Biman Airlines
BG
997
45
Air Portugal
TP
047
46
Iran AIR
IR
096
47
Air Astana
KC
465
48
Delta Airlines
DL
006
49
Pakistan Airlines
PK
214
50
Virgin Blue
DJ
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
1
America
Delta Airline
BOM/JFK/EWR
738188
2
Australia
Qantas Air
BOM /SYD/ MEL/
242710
3
Sri Lanka
Srilanka
BOM/ CMB/BOM
49398
4
Canada
Jet Airways
BOM/ YYZ/BRU
242769
5
Newzland
Singapore
BOM/AKL/BOM
207534
6
South Africa
Kenya Airlines
BOM/JNB/BOM
122155
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7
England
Luptansa
BOM/LHR/MAN
274005
8
Mexico
Delta Airline
BOM/ MAX /BOM
572192
9
Saudi Arabia
Air India
BOM/ RUH/BOM
44181
10
Nepal
Jet Airways
BOM/ KTM /BOM
71545
11
Etly
KU
BOM/ RWI/ ROM/
221434
12
China
9W
BOM/PVG/BOM
120193
13
Russia
Aeroflot
BOM/ SVO /BOM
104055
14
France
Air France
BOM/CDG /BOM
234146
15
Germany
Luptansa
BOM/ FRA/ MAM
236212
16
Kolalampur
Malaysia
BOM/KUL/BOM
86602
17
Singapore
Singapore
BOM/ SIN/BOM
83709
18
Dubai
Emirates
BOM/DXB/BOM
86758
19
Turkey
Turkey
BOM/IST/BOM
226453
20
Bangkok
Bk
BOM/BKK/Bom
62894
2:-ECONOMY CLASS FLIGHT FAIR
Sr.no
STATE
AIRLINES
CODE
Included
Total
1
America
Delta Airline
BOM/JFK/EWR
110138
2
Australia
Qantas Air
BOM /SYD/ MEL/
183545
3
Sri Lanka
Srilanka
BOM/ CMB/BOM
28534
4
Canada
Jet Airways
BOM/ YYZ/BRU
144482
5
Newzland
Singapore
BOM/AKL/BOM
63152
6
South Africa
Kenya Airlines
BOM/JNB/BOM
83592
7
England
Luptansa
BOM/LHR/MAN
78690
8
Mexico
Delta Airline
BOM/ MAX /BOM
271088
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TAX
WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
9
Saudi Arabia
Air India
BOM/ RUH/BOM
28867
10
Nepal
Jet Airways
BOM/ KTM /BOM
29199
11
Etly
KU
BOM/ RWI/ ROM/
82320
12
China
9W
BOM/PVG/BOM
42068
13
Russia
Aeroflot
BOM/ SVO /BOM
79061
14
France
Air France
BOM/CDG /BOM
91781
15
Germany
Luptansa
BOM/ FRA/ MAM
72044
16
Kolalampur
Malaysia
BOM/KUL/BOM
39377
17
Singapore
Singapore
BOM/ SIN/BOM
27324
18
Dubai
Emirates
BOM/DXB/BOM
47123
19
Turkey
Turkey
BOM/IST/BOM
50696
20
Bangkok
Bk
BOM/BKK/Bom
40060
Vision
“Spreading Smiles Happiness and Joyful life to People and Developing the
Business in a country”.
Mission
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
“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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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 hasn’t.
7) Business Tours:-
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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 it’s
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 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.
Factions
 Booking of Hotel as per order.
 To give the information regarding the Hotel.
 To give the information regarding the fair price and better service providing hotel.
5) Billing Department:-
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
____________________________________________________
Finance Department
Marketing Department
Senior. Finance
Manager
Marketing Manager
Ticket Booking
Department
____________ ___
Hotel Booking
Department
Billing Department
Hotel Ticket
Booking Manager
Billing Prepare
Manager
Forex Department
Foreign Exchange
Manager
____________________
Assistant. Finance
Manager
Domestic Air Ticket
Booking
International Air Ticket
Booking
Air Ticket Booking
Manager
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
.
 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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. 2004-2005, 2005-2006, 2006-2007, 2007-2008 and 2008-2009
Graphs, diagrams and tabulation methods are used to analyze and interpret the data collected. It
will help to understand the company’s 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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD






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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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:-
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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 :-
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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 AutoZone’s 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 don’t 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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 people’s 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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 can’t 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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
company’s dues, higher profits increase the liquidity of the concern.
Conclusion:-
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Ratio Analysis
1) Net Working Capital:Net working capital is the difference between current assets and current Liabilities.
Years
Current Asset
Current Liabilities
NWC
2004-05
26352381.81
6122630.12
20229751.69
2005-06
30087971.00
6843164.00
23244807.00
2006-07
46858833.00
9979106.00
36879727.00
2007-08
44389218.00
12123368.00
32265850.00
2008-09
62495041.00
11527167.00
50967874.00
Ratio
60000000.00
50000000.00
NWC
40000000.00
30000000.00
Ratio
20000000.00
10000000.00
0.00
2004-05
2005-06
2006-07
2007-08
200809
year
INTERPRETATIO:In The year 2004-05 the company has 20229751.69 N.W.C. In the
year 2005-06 the N.W.C is 23244807.00 and in the year 2006-07 the company has
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
36879727.00.NW.C But in the year 2007-08 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 200809 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 firm’s 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
Current Liabilities
Ratio
Years
Current Asset
2004-05
26352381.81
6122630.12
4.304
2005-06
30087971.00
6843164.00
4.397
2006-07
46858833.00
9979106.00
4.696
2007-08
44389218.00
12123368.00
3.661
2008-09
62495041.00
11527167.00
5.422
Diagram:
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Ratio
6
5
Ratio
4
3
Ratio
2
1
0
2004-05
2005-06
2006-07
2007-08
2008-09
year
INTERPRETATION:The current ratio was 4.304 in the year 2004 – 2005 and the year 20052006 the current ratio was 4.397 and in the year 2006 -2007 the current ratio was 4.696 this show
the current ratio has increase every year but in the year 2007-2008 the current ratio was
decreased to 3.661.in the year 2008 – 2009 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
Cash at bank
Current Liabilities
Absolute
Liquidity Ratio
0.15
2004-05
322305.70
600000.00
6122630.12
2005-06
151478.00
600000.00
6843164.00
0.10
2006-07
125254.00
600000.00
9979106.00
0.07
2007-08
95663.00
600000.00
12123368.00
0.05
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
64627.00
2008-09
600000.00
11527167.00
0.05
Diagram: Absolute Liquidity Ratio
0.16
0.14
ABR
0.12
0.1
0.08
Absolute Liquidity Ratio
0.06
0.04
0.02
0
2004-05
2005-06
2006-07
2007-08
2008-09
Year
INTERPRETATION:The absolute liquidity ratio was 0.15 in the year 2004-2005 and decreased
to 0.10 in the year 2005 – 2006 and it does not increase further up to 2008-2009.But in the year
2007 -2008 and 2008-2009 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
Current Assets
Current Liabilities
Liquidity Ratio
2004-05
26352381.81
6122630.12
4.30
2005-06
30087971.00
6843164.00
4.40
2006-07
46858833
9979106.00
4.70
2007-08
44389218.00
12123368.00
3.66
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2008-09
62495041.00
11527167.00
5.42
Diagram: Liquidity Ratio
6
liqudity ratio
5
4
3
Liquid
ity
Ratio
2
1
0
2004-05 2005-06 2006-07 2007-08 2008-09
ye ar
INTERPRETATION:The absolute liquidity ratio was 4.30 in the year 2004-2005 and increases to 4.40 in the
year 2005 – 2006 and 4.70 in the year 2006-07, 3.66 in the year 2007-2008 it was decrease due
to increase of labilities.But in the year 2008 -2009 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
2004 – 2005
Profit After Tax
437894.00
2005 – 2006
423298.00
Current Asset
26352381.81
Ratio
0.016
30087971.00
0.014
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2006 – 2007
592576.00
46858833.00
0.012
2007-2008
843910.00
44389218.00
0.019
2008-2009
1039889.00
62495041.00
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
2004-05
2005-06
2006-07
2007-08
2008-09
Year
INTERPRETATION:The Returns on current assets was 0.016 in the year 2004-2005 and it
decreased to 0.12 in the year 2006-2007. It further increased to 0.019 in the year 2007-2008 and
further decreased 0.016 in the year 2008-2009 .It shows that profit will increase then asset
turnover ratio will decline then C.A will increase but in the year 2007-2008 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
2004 – 2005
Sales
102199181.00
Average Current
Asset
19967762.36
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Ratio
5.11 time
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2005 – 2006
132858985.00
28220176.41
4.70 time
2006 – 2007
171671451.00
38473402.00
4.46 time
2007-2008
221246824.00
45624025.5
4.84 time
2008-2009
286246257.00
53442129.5
5.35 time
Diagram: Ratio
5.6
5.4
C.A.R
5.2
5
4.8
Ratio
4.6
4.4
4.2
4
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
Year
INTERPRETATION:The current asset ratio was 5.11 times in the year 2004-2005 and 4.70 in
the year 2005-06 and 4.46 in the year 2006-2007 it was decreased. It further increased to 4.48 in
the year 2007-08 & 5.35 in the year 2008-2009. 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Year
Credit sales
Average Debtors
Ratio
2004 – 2005
102199181.00
19080194.95
5.35 times
2005 – 2006
132858985.00
27192101.00
4.88 times
2006 – 2007
171671451.00
36302837.00
4.72 times
2007-2008
221246824.00
42584634.5
5.19 times
2008-2009
286246257.00
50516905.00
5.66 times
Diagram: Ratio
5.8
5.6
Debtors
5.4
5.2
5
Ratio
4.8
4.6
4.4
4.2
2004-05
2005-06
2006-07
2007-08
2008-09
Year
INTERPRETATION:The debtor’s turnover ratio was very less in the year 2006-07 at 4.72
times, but them it has increased to 5.19, 5.66 times in the year 2007-08 and 2008-09. 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Year
Credit Purchases
Average Creditors
Ratio
2004 – 2005
96724469.00
82074994.50
1.17 times
2005 – 2006
127553879.00
112554635.00
1.13 times
2006 – 2007
165680148.00
146617013.50
1.13 times
2007-2008
213323185.00
189501666.50
1.12 times
2008-2009
276775674.00
245049429.50
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
2004-05
2005-06
2006-07
2007-08
2008-09
Year
INTERPRETATION:The creditors turnover ratio was 1.17 times in the year 2004-05 & it
decreased to 1.13 times in the year 2006-2007 but creditor turnover will be remain same two
year 2005-06 and 2006-07.Thean it was again declined 1.12 in the Year 2007-08. But it was
remain same in the year 2007-08 and 2008-09. 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
2004 – 2005
Net Profit After Tax
Sales
Ratio
437894.00
102199181.00
0.43 %
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
2005 – 2006
423298.00
132858985.00
0.32 %
2006 – 2007
592576.00
171671451.00
0.35 %
2007-2008
843910.00
221246824.00
0.38 %
2008-2009
1039889.00
286246257.00
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
2004-05
2005-06
2006-07
2007-08
2008-09
Year
INTERPRETATION:The Net profit of the company 0.43% in the year 2004-05,0.32 in the
year 2005-06 , 0.35 in the year 2006-07 ,0.36 in the year 2008-09. Net profit ratio was show the
net profit after tax in the year 437894 in 04-05 but it was fall in the year 2005-2006 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Year
Long Term Borrowing
Share holder fund
Ratio
2004 – 2005
17020534.74
3281899.00
5.19
2005 – 2006
18599175.00
4705197.00
3.95
2006 – 2007
30650881.00
6297773.00
4.87
2007-2008
25230306.00
7141683.00
3.53
2008-2009
43831794.00
8181572.00
5.36
Diagram:
Ratio
6
5
Debt
4
3
Ratio
2
1
0
2004-05
2005-06
2006-07
2007-08
2008-09
Year
INTERPRETATION:In The year 2004 -2005 debt equity ratio was 5.19 and 3.59 ,4.87 in the
year 2005-06 and 2006-07 .in the year 2005 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 2007-08.but in the year 2008-09 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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Year
Net Sales
2004 – 2005
102199181.00
Net Working
Capital
20229751.69
Ratio
2005 – 2006
132858985.00
23244807.00
5.72 TIME
2006 – 2007
171671451.00
36879727.00
4.65 TIME
2007-2008
221246824.00
32265850.00
6.86 TIME
2008-2009
286246257.00
50967874.00
5.62 TIME
5.05 TIME
Diagram:
Ratio
8.00
7.00
6.00
W.C
5.00
4.00
Ratio
3.00
2.00
1.00
0.00
2004-05
2005-06
2006-07
2007-08
2008-09
Year
INTERPRETATION:
In The year 2004-05 working capital t/o ratio was5.05 time ,5.72 time in the year 20052006.In the year 2005-06 the working capital has increases because sales of the company has
increases. in the year 2006-07it was 4.65, 6.86,5.62 in the year 2007-2008 and 2008-09.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 2004-05
Particular
Current Asset
Sundry debtors
o/s more than 6 month
31-03-2005
31-03-2004
Nil
Increase
((Sources)
-
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Decrease
(Application)
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
o/s less than 6 month
25402556.11
Cash & Bank Balance
Cash in hand
Balance with bank
Loans & Advance
Margin against Bank
guarantee
Accrued interest on
Margin Money
Tax deducted at source
12757833.79
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 2004-05
203007.58
-
-
-
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
12644722.32
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 2005-06
Particular
Current Asset
Sundry debtors
o/s more than 6 month
31-03-06
31-03-05
-
-
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Increase
Decrease
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Others
Cash & Bank Balance
Cash in hand
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
28981646.00
25402556.11
3579089.89
-
151478.00
322306.00
-
170828.00
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 2006-07
Particular
Current Asset
Sundry debtors
31-03-2007
31-03-2006
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Increase Decrease
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
o/s more than 6 month
Others
Cash & Bank
Balance
Cash in hand
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
833104.00
42790924.00
833104.00
28981646.00 13809278.00
-
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
-
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 2007-08
Particular
31-03-2008
31-03-2007
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Increase
Decrease
69
WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Current Asset
Sundry debtors
o/s more than 6 month
Others
Cash & Bank Balance
Cash in hand
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
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
-
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 2008-09
Particular
31-03-2009
31-03-2008
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Increase
Decrease
70
WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
Current Asset
Sundry debtors
o/s more than 6 month
Others
Cash & Bank
Balance
Cash in hand
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)
378114.00
59110455.00
386945.00
41158296.00 17952159.00
8831.00
-
64627.00
95663.00
-
31036.00
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
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
The working of the company should be positive. It should not be negative. In the
year 2004-2005 Rs. 20229751.69 and in the year 2005-2006 Rs. 23244807.00 the working
capital has increased and 2006-2007, Rs.36879727.00 the working capital has increased but in
the year 2007-2008 Rs.32265850.00 the working capital has decrased.But in the year 2008-2009
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 year2008-2009 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.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
FINDINGS, SUGGESTION AND CONCLUSION
FINDINGS:
The net working capital has declined in the year 2007-2008 and but the profit of
the company was increased in the year 2007-2008

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 2007-2008 and

Company is able to full the standard ratio of current assets and change in working
capital of 2007-2008 has declined.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
SUGGESIONS:  In the year 2007-2008 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 2007-2008.
 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 2007-2008 but profit of the
company has increased in the year 2008-2009. 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 2007-2008 due to the sundry creditors has more
and Provision of tax has been vary high.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
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.
.
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
 Financial Statement
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WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
FINANCIAL STATEMENT 2008-2009
PROVISIONAL BALANCE SHEET AS AT 31st MARCH, 2009
As At
31.03.2009
Particulars
SCHEDULE
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
52,018,512.00
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
E
12,91,998.00
2,67,700.00
10,24,298.00
F
0
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
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5,09,67,874.00
26,340.00
78
WORKING CAPITAL MANAGEMENT OF SHREE DAYAL TOURS & TRAVELS PVT LTD
( To the extent not written off or adjusted)
TOTAL
5,20,18512.00
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