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TABLE OF CONTENT

Chapter Description Page No.

1 INTRODUCTION.

1.1Introduction about training project.1.2Meaning of financial analysis1.3financial analysis system1.4Generally Accepted Accounting Principles (GAAP)

78910-1112

2 OBJECTIVE OF THE PROJECT 13-14

3 RESEARCH METHODOLOGY.

3.1Research Process3.2Sources of data collection3.3Limitation of study

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1617-1819

4 COMPANY PROFILE

4.1Introduction4.2History of the company4.3Social responsibility4.4Group of company4.5Promoter of the company4.6Directors of the company4.7Liberty brands

4.8Objective of the company4.9National and international awards4.10Units of Liberty Shoes Ltd.4.11Organizational structure4.12Manufacturing process of synthetic shoes in LibertyShoes Ltd

20212223242526

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5 INDUSTRIAL PROFILE

5.1 Indian footwear industry5.2swot5.3share in GDP5.4Competitors

5.5Key production figures of top six footwear companies .

5.10Ten year figure at glance

272829-313233-363738394041

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6 ABOUT THE TOPIC

6.1Qualitative Factors - The Company6.2Qualitative Factors The Industry6.3Other Important Sections Found in Financial Filings6.4Income statement

6.5Purpose of financial analysis6.6Techniques or methods of financial analysis6.7Procedure of financial analysis6.8Cash flow statement6.9Meaning of Balance Sheet

4344-4748-4950-5152

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5455-5859-60

7 DATA ANALYSIS AND INTERPRETATION

7.1Profit & Loss A/c of 20077.2Profit & Loss A/c of 20087.3Profit & Loss A/c of 2009

7.4Balance Sheet as at 31th march, 20077.5Balance Sheet as at 31th march,20087.6Balance Sheet as at 31th march, 2009

6162-6364-6566-67

686970

8 FINDING 71-72

9 CONCLUSUION 73-74

10 LIMITATION 75-76

11 SUGGESTION 77-78

12 BIBLIPGRAPHY 79-80

13 ANNEXURE

13.1Gallosary

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FINANCE

It is true that money (Finance) plays a very important role in the sphere of business to grow

and bring the company position at the top . if the financial position of the company is good,

there is no doubt that company or industry will grow faster in the existing.

FINANCIAL ANALYSIS

The term analysis is methodical classification of data given in the financial statements.

Financial analysis is the process of identifying the financial strength and weakness of tiles

Finn by property establishing relationship between the item of balance sheet & profit & loss

account.

Financial analysis can be undertaken by the firm or by outside parties, firms owner,

creditors, investors and other. Actually the nature of analysis depends upon the parties.

Feature of Financial Analysis :-

1. To presents a complex data contained in the financial statement in simple and understandable

form.

2. To classify the item contained in the financial statement in the convenient and rational

groups.

3. To make comparison between various groups to draw various conclusions.

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FINANCIAL STATEMENTS

Financial statements mean a statement or document which explains necessary financial

information about an organization/ company. the financial statements ae prepared on the

basis of facts recorded in books. These recorded facts are expressed in the monetary

terms.

In the United States, a company that offers its common stock to the public typically needs

to file periodic financial reports with the Securities and Exchange Commission (SEC).

The SEC governs the content of these filings and monitors the accounting profession. In

turn, the SEC empowers the Financial Accounting Standards Board (FASB) - anindependent, nongovernmental organization - with the authority to update U.S.

accounting rules. When considering important rule changes, FASB is impressively

careful to solicit input from a wide range of constituents and accounting professionals.

But once FASB issues a final standard, this standard becomes a mandatory part of the

total set of accounting standards known as Generally Accepted Accounting

Principles (GAAP).

TYPES OF FINANCIAL ANALYSIS

1. Classification on the basis of material used.

2. Classification on the basis of modus operandi.

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On the basis of material used :-

External analysis :-

Internal analysis :-

On the basis of modus operand :-

Horizontal analysis:-

Vertical analysis:-

Significance or importance of Financial Analysis :-

1. Significance for Managers ;-

2. Significance for Investors:-

3. Significance for Creditors:-

4. Significance for regulatory agency:-

5. Significance for Employess:-

6. Significance for others parties:-

7. Significance for Government :-

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Limitation of Financial Analysis :-

Mis lead the users:-

1. Not useful for planning:-

2. Qualitative aspects:-

3. Comparison not possible:-

4. Wrong judgement:-

5. Not helpful in price fixation:-

6. Not control on cost:-

7. No analysis of losses:-

PURPOSE OF FINANCIAL ANALYSIS

1. To know the earning capacity or profitability.

2. To know the solvency.

3. To know the financial strength.

4. To make comparative study with other firms.

5. To know the capability of payment of interest & dividend.

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6. To know the trend of business.

Statements are including in the list of financial statements :-

1. Profit and loss account.

2. Balance sheet.

3. P & L appropriation account.

4. Cash flow statement.

5. Various schedules.

6. Explanatory notes given at the end of financial statement.

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TECHNIQUES OR METHODS OF FINANCIAL ANALYSIS :-

1. Comparative Statements.

2. Trend analysis

3. Common size Statements.

4. Fund flow statements.

5. Cash flow statements.

6. Ratio Analysis.

7. Break even point Analysis

.

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OBJECTIVE OF THE PROJECT : -

The financial statements are the soures of information on the basis of which conclusionsAre drawn about the profitability and financial position of an organization/ company.These statements helps the company in making planning and taking decisions.

1. To measures the earning capacity or profitability of the company.

2. To measures the solvency of the company.

3. To measures the financial strength of the company.

4. To makes comparative study with other firms.

5. To measures the capability of payment of interest and dividend of the company.

6. To identify the trend of the business of the company.

7. To judge the efficiency of management of the company.

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8. To provide useful informations to the management

9. To determine the change in financial condition of business.

10. To determine the source from where the working capital was obtained & for

which purpose it will be used.

11. To spot out strength & weakness of business.

12. To determine the absolute figure for the last thre years and the absolute changes

from one year to another two years and the absolute change in term of percentage.

13. To compare assets & liabilities and find out the any increase or deacrese in above

on three different dates.

14. To depict change in cash position from one years to another two years.

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RESEARCH METHODOLOGY

Research , which is done for his particular project is with the help of data collection.Data, which is collected is mainly secondary data, which is collected from the account books

of the Liberty Shoes Limited.

Here the research process , which is used is as follow :-

Research problem

Here the problem is to analyse the ratio of the company for which we have to conduct theresearch.

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Exentive literature survey :

Now we have to see that from where the data is being collected on which we have to performthe research.

Prepare the research design :

Here the research is descriptive research as we to give various description so design areformulated accordingly.

RESEARCH DESIGN

Research design is a framework or the blue print for conducting the research project. Research desigthe arrangement of conditions for collection and analysis of data in a manner that aims to combinerelevance to the research purpose with economy in procedure. It includes an outline of what the resea

will do from writing the hypothesis and its operational implications to the final analysis of data.

TYPES OF RESEARCH DESIGN

Exploratory research design

Descriptive research design

Experimental research design

EXPLORATORY RESEARCH DESIGN

It is also termed as formulative research design. The main purpose of the study is to

formulate a problem for more precise investigation.

DESCRIPTIVE RESEARCH DESIGN In descriptive research design, those studies

are taken which are concerned with describing the characteristics of a particular

individual or a group.

EXPERIMENTAL RESEARCH DESIGN

In this casual relationships between the variables are tested. It is also known as

hypothesis testing research design.

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The present project is analytical in nature. The main objective of the analytical research

design is to define the problem into researchable one and analyse the data according to

the purpose.

Sample size :

Here the sample is taken from the companies past records of various accounts. Here samplingis done step by step or we can say multistage sampling.

Collection of data :

Data, which is collected for the research is secondary data as I had collected it from theaccount books of the company.

Execution of project :

When data is being collected then that the data is used for the execution of the project.

Analysis od data :

In this stage of research process the data is made in the tabulated wheather data is adequate ornot.

Preparation of report :

Finally the report is prepared on the basis of various conclusions drawn.

SOURCES OF DATA

Primary data companies of information obtain from employees of this organization.

Secondary data :-

Secondary data companies of annual reports , questioning, ledger and past records.Company has provided me annual reports from 2000-2001 to 2008 to 2009 by the help ofwhich prepared my report.

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In this project, I have used secondary data which has been collected from following

sources:-

Annual Reports

Books

Internet

Other material and report published by company

Questioning : -

Actually no particulars questionnaire was prepared . question related to problem and datatallied with FM, CA & accountants of the company.

Special record searching : -

Special records are maintains by accountants have been made during the studied thoroughlywhile making this report.

Analysis : -

Analysis of various types of data, statement are also made during the study by using standardformulas.

LIMITATION OF STUDY

The study was conducted in limited areas.

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Employees felt unnecessary burden.

Any biases by the respondents may lead to wrong infer

The time of study was less.

Scope of study was very wide.

Respondents cannot be force give true response.

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INTRODUCTION

Liberty is leading footwear industry covering brands under its own name. Liberty shoes

are known for its quality in India and abroad. The footwear liberty emerged in 1954 in

the field of manufacturing and exporting of footwear. This company is manufacturing

leather shoes , sports shoes, non leather shoes , leather shoes upper and Hawaii

chappals for gents, ladies and children. The Liberty has its corporate office , centre

house and human Tech. centre , liberty park in karnal city Registered office &

human tech. centre , Liberty puram in kutial (karnal) and human Tech. centre ,liberty

complex in Ghuraunda (karnal) .The marketing office is located at Punjab Begh New

Delhi. The liberty has its domestic branch office at Agra , Banglore, Chennai, Delhi,

Jaipur , Jammu, Rajpura and Sharanpur. It has its banker state Bank of india specialized

commercial branch karnal for enhancement of working capital limits. By invention of

ACS (air circulation system) technology , a sole , that prevents feet from sweating in hot

and humid conditions are more revolutionary step by liberty in footwear market. It talk

the extra mile to ensure customers satisfaction wprld wide. The major strength of liberty

footwear is its strong distribution channel and itas technological advancement. Liberty is

devoted to the customer of the world and they strive hand to keep ture to there motto,SAPNE AB HUAE APNE.

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HISTORY OF LIBERTY SHOES LIMITED

Like all the enterprises this company too is seeped in history . It was on 25 th December

1954 when India was nurturing its growth as a free country those three dreamers in a

small town in erstwhile Punjab throughtout of producing an Indian brand of footwear to

make a basic necessity available to their countrymen . Late Sh. D.P.Gupta. Late Sh.P.D.

Gupta & Late Sh. R.K. Bansal Ji allowed their vision to cross every barrier and brought

in technology to ensure that the feed to the market was of world class. Soon the product

and the name become generic to quality footwear in the domestic market and this

allowed the company to invest further for enhancing production capacity and cater to

international market too.

With 50 years of excellence behind it liberty today is amongst the five largest footwear

manufacturers of the world. It produce footwear for the entire family and is a trusted

name in many households across India and the world. In the domestic market we are one

of the most admired footwear brands and hold the largest market share for leather

footwear.

Liberty 50 years of excellence behind it Liberty today is amongstthe five largest footwear

manufacturers of leather footwear of the world with a turnover in excess of U.S $100

Million .Producing more than 90000 pair of footwear a day .

A range that is among the largest in the industry , covering virtually every age group and

income category. Marketed across the globe through 150 distributors ,350excutive

showrooms andover 6000 multi- brand outlets and sold in thousands every day in more

than 25 countries including fashion driven, quality obsessed nations like France ,

Italy.Company was incorporated on 3rd sept.1986 as a public company and obtained the

company wof business on 11th March 1988. Firm register office of the companies

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situated at Delhi , Haryana and New Delhi. The company shifted its register office from

Union Territory of Delhi to Karnal.

The company has been set to manufacturer and to sell leather and non- leather shoes

upper and leather garments. Presently company is engage manufacturing leather and non-

leather shoes. Company has also set up a joint venture in Russia to manufacture shoes

in 1991 under the name ofM/S Liberty & Co. with M/S Groky Product & shoes unit

Groky City but subsequently the name of venture was changed as Liberty & Nino.

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SOCIAL RESPONSIBILITY

Liberty conducts its business with honestly, intergrity and respect for all those who come

in contact with it in course of business. Fully apprective of the fact that its reputation

stems from not just quality products and technological innovations but also from the

manner of its dealing with customers, suppliers, government official and all those who

are outside the Liberty Group. Utmpst importance is also given to ensuring a safe,

healthy and non discriminatory work environment for all Liberty employees where they

are free from harassment of any from supervisor , senior, co- workers, customer and

suppliers. Ethical standards and practices are rigorously brands like Wal-Mart, Reebok,

Nike etc. who recognize it as an equal opportunity employers.

The present Scenario

The company markets its product nationally and internationally under the brand

Liberty Co. Is well established in national and global marker. The company has

appointed dealer and distributor for marketing its product besides selling through the

existing Dealer Company provide 20% to 30% discount rate on the print rate. The

company has enter into an agreement with one of the group firm M/S Liberty Enterprise

for using the established brand name Liberty. As per the term of agreement companycan use this term of agreement co. and use the trademark initially for a period of 5 years

and has to royalty of Rs 20 Lac. The Company has commenced commercial production

for non- leather shoes on 25th December 1993. Initially direct injection- soing machine

was installed with the capacity of 24000 pairs premium on single shift basis. The second

direct injection mechinebe installed in march 1994. From the commencement of

commercial period till 31th march 1994 the co. has been separated on full capacity. As

the promoters are in this line for the last five decades the company has recently launched

new product of Hawaii chapels.

The present over supply in the domestic market is improved due to this inceasing growth

rate of demand over the base several years.

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Future plan

Group has set up this company to expand its exciting capacity by more thantwo times to

increase in the market share in national and international market and to meet out the

growing demand of its product. The group has ambition plan for the future to globalize its

brands Liberty and with and in new it has created a distribution network not only in

India but also in Europe and in Middle East , which is dedicated to market the group

branded products. The group plans to restructure its separation into integrated shoes

manufacturing and market organization.

Decision making

All the decision , which is of the strategic nature, is to be taken at highest level . various

committees for the formulation of policies for the different functional area have been

constituted. Before taking any financial decision proper consultation with concerned

executive is done. The heads of the department have sufficient opportunities for

participating in decision making .their views recommendations and suggestion are given

due consideration. However the final authorities lies with top executive.

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GROUP OF COMPANY

Liberty automotive is a joint venture company promoted by azin khodro group of Iran

and project at bawal industrial growth centre on Delhi Jaipur national highway for

manufacturing automotive trim parts. Drawing upon the consideration manufacturing

experience of Azin Khodro Group and the business of Liberty group, it is all set to

deliver high quality finished products. Armed with a unique R & D source Liberty

automotive is able to offer ideas to create solution and resources, to meet the challenge of

performance optimization of a car.

Liberty Organosys

Liberty group for manufacturing acedic acid in India promotes Liberty organosys limited.

Liberty proposesto use methanol carbonization route for manufacturing this organic

chemical 60% of the world production is based on technology. Liberty plans to build

this in a large scale. Meeting the entire demand of the nation. The technical details of

the project will bwe announced soon.

Liberty revolution

In the elite shopping avenues of fashion capital Revolution has begun its walk. The

fashion accessory and footwear stores have begun operation in Chennai,Benglore,

Mumbai,Kolkata , Hyderabad and Pune. These are company managed and owned

outlets where the emphasis is to deliver high fashion to the customer backed by quality

service making it a delightful shopping experience. Liberty showrooms enter the

international market as company has plans of opening 18 more revolution showrooms

nationally & internationally.

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Liberty Whiteware Ltd.

Just 90 minutes away from New Delhi on the national highway 8 that joins the countrys

political capital with its business capital frenetic activity is on. It is where Liberty

whiteware factory is fast taking shape. Liberty whiteware is all set to introduce to

domestic market some very up market sanitary ware that will be manufactured here. It

will come with some obvious adventages. Like international products at domestic process

for one and the opportunity for discerning customer to choose at leisure what would be

seen first time in India. A part of Liberty s diversification the investments in the project

are to the tune of 10 million Euro and with production plans running ahead of schedule

the cash register should soon start ringing well before time at Liberty whiteware Ltd.

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PROMOTERS OF COMPANY

The company comes under the public limited companies groups and belongs to Liberty

Group. The company has been promoted by three business persons name as

Late Sh. D.P. Gupta

He has been associated with shoes industry for the last 80 years. He initiated the shoe

business under the trading cycle Pal Boot House. In 1994 he had been involved with

Liberty group since than. He was also activating in social.

Late Sh. P.d. Gupta

He was 75 years old, chairman and the managing director of the company. He had been

associated with the shoe industry since the age of 16 years. He was also chairman of joint

venture set up in Russia by the company. He had been the president of all India

chambers of footwear exports for last 20 years.

Late Sh. R. K. Bansal

He was 67 years old and the promoters director of the company. He had been associated

with shoe industry and with the trade for last 45 years. He had the knowledge of

international markets with his ability in the marketing company is capable of introducing

Liberty products in most advanced countries such as Italy and America. He was also

partner in many associated firms.

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BOARD OF DIRECTORS

Mr. Adesh Gupta (CEO,Executive Director)

Mr. Adarsh Gupta (Executive Director )

Mr. Shammi Bansal (Executive Director)

Mr. S.K. Goel (Independent Executive Director)

Mr. Sunil Bansal (Non Executive Director)

Mr. Amitabh Taneja (Independent Director)

Mr. Prem Chand Grag (Non Executive Independent Director)

Mr. S.K. Arya (Non Executive Independent Director)

Mr. Sidharth Sanghi (Non Executive Independent Director )

Mr. Raghu Dayal ( Non Executive Independent Director)

Mr. Vivek Bansal (Non Executive Independent Director)

Mr. Munish Kakra (Vice President & Company Secretary)

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LIBRTY BRAND

Libety has developed a spectrum of 10 exclusive brands, each of which have been given

tha t extra edge to enter to a specific target group. Today the new range from liberty is

all about style , design and comfort. The range imbibes the spirit of fun and is trendy to

the core.

Liberty has something for every income bracket & every age group. It pampers its

customers to keep pace with global footwear fashion trend & by walking that extra mile

which is why, special care has been taken to make sure that the outlets design meets the

specific needs taste of the target groups.

A part from the existing brands, liberty is busy fashioning the look of the future

footwear . introducing new decisions that redefines styles and comfort.This family brand is style personified with something for every need. Be it formal or

casual, at office or at the beach, a conference or a soiree Liberty fits in effortlessly.

COOLERS

Theyre cool and theyre hot. Theyre hap and theyre

happening. Perfect for the hot summer days. When the

sun blisters and the heat strokes, they keep the feet cool

and comfortable. But why limit the pleasure to summers?

Heres one brand of sandals that stays cozy and comfy all year round.

FOOTFUN

Something for those little feet as they learn to walk. Airy,

light and comfortable with lycra uppers and no laces.

In fairy-tale colors and designs.

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FORCE-10

The flair, the style and ease that forces the world to

take notice. A happening range of sports shoes in

far out colors that provides the perfect footnote to a

head-turning presence.

FORTUNE

Genuine leather uppers and extra light poly soles

help complete the power dressing in men with lan

and panache.

GLIDERS

Cool and comfortable, trendy and with it. A range

of stunning brogues and smart lace ups that will be

noticed and talked about every step of the way.

Unmistakably a part of Generation You.

SENORITA

Walk tall, walk light and walk with amazing style.

Rediscover the little girl that lurks not far behind in

every woman, laughing and loving every moment of

life.

TIPTOPP

Strappy, styles and comfortable heels. And colors

that become the envy of all and sundry. Perfect for

conquering the neighborhoods in designs that are

the latest rage the world over.

WARRIOR

Smart, stylish professional gear crafted from leather

uppers and direct injection P.U. soles with steel toe

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caps and offering the widest range of styles in

safety shoes. To master the art of being confident

and sure-footed on slippery grounds and danger

ones.

WINDSOR

The premium is on lightness, style and comfort

which make it ideal for men who take every

challenge effortlessly in their stride.

FREEDOM

A new introduction in the safety footwear segment

in Nit rile PVC material, offering customers with

waterproof, fire retardant and shock free product in

economic range. Safety footwear for industrial use.

DETAILED DESCRIPTION OF POPULAR BRANDS

NAME OF

BRAND

DETAILS TYPES MADE OF FOR THEM

Force -10 Family force Sports &

Leather

Canvas Gents

Windsor Liberty castte Leather shoe Leather Gents

Fortune Good luck Leather shoe Leather Gents

Ricardo Recoras Leather shoe Leather Gents

Gliders Fly in air Canvas shoe Canvas Children &

gents

Tip Top Fun for

children

Canvas &

leather

Canvas &

leather

Children

Senorita Seniority Bellerion

sandal

Leather Ladies

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Coolers Feel coolness Slippers sandals Leather Gents

Geo Sports Build

sportsmanship

Sports shoe Leather Gents & ladies

Foot fun - Sports shoe Canvas Children

OBJECTIVE OF THE COMPANY

The main objective to be pursued by the company on its incorporation as set on

memorandum of association as under:-

To work as buying selling agent with or without trademark for finished product.

To import the technical knowhow of foot wear and PVC technology.

To deal in raw hinds and skins.

To carry on business of manufacturing and and repairing and wholesale dealers in all

types of footwear and accessories of footwear(such as heels, soles , puckers and hand

grouse and other product of leather), PCC, leather manufactures and dealers in all

kinds of water proof articles

To prepare , process, cost ,transport,refine,recover,retain utilize ,extract, finish

import, buy and sell market install summary and carry on business as manufacture

dealer in all kinds of footwear, component and accessories.

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NATIONAL AND INTERNATIONAL AWARDS

The liberty group has won several prestigious national and international awards,

which are as under :

Arch of Europe intertnational gold star, 1994.

International award for ggd quality,Brussels, Belgium 1988.

Europe award for pair in 1987.

International asian award ,Jakarta in 1982.

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National award from government in 1981 1982. Udyog rattan by

government of India.

Certificate of merit as national export award from government of India in

1989.

Leather export promotion council merit award for outstanding performance

for 1976 to 1982.

National award for best export performance in leather garmants in 1987

1988.

Haryana government export award in 1978-1979.

UNITS OF LIBERTY SHOES LIMITED

REDGISTERED OFFICE & HUMAN TECH CENTRE -1

LIBERTYPURAM,

13TH MILE STONE,

G.T. KARNAL ROAD KUTAIL,

P.O.BASTARA.

DIST. KARNAL -132114 (HARYANA)

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CORPORATE OFFICE & HUMAN TECH CENTRE -11

LIBERTY COMPLEX, 17TH MILE STONE,

G.T. KARNAL ROAD, GHARAUNDA,

DISTT. KARNAL

HUMAN TECH. CENTRE -111

LIBERTY PARK , LIBERTY ROAD,

DISTT. KARNAL -132001 (HARYANA)

HUMAN TECH. CENTRE -1V

LANGA ROAD , V1LL. CHARBA,

P.O. SAHASPUR, VIKAS NAGAR,

DEHRAHUN (UTTRANCHAL)

BRANCHES

DELHI, JAMMU , JAIPUR,

CHENNAI, RAJPURA, BANGLORE,

AGRA, SAHARANPUR, MUMBAI,

CALCUTTA, HYDRABAD.

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Indian footwear industry:-

Indian leather industry is the core strength of the Indian footwear industry. It is the engine

of growth for the entire Indian leather industry and India is the second largest global

producer of footwear after China.

Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike,

Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are

manufactured under license in India. Besides, many global retail chains seeking quality

products at competitive prices are actively sourcing footwear from India.

While leather shoes and uppers are produced in medium to large-scale units, the sandals

and chappals are produced in the household and cottage sector. The industry is poised for

adopting the modern and state-of-the-art technology to suit the exacting international

requirements and standards. India produces more of gents footwear while the worlds

major production is in ladies footwear. In the case of chapels and sandals, use of non-

leather material is prevalent in the domestic market.

Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes,

horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India areShoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.

With changing lifestyles and increasing affluence, domestic demand for footwear is

projected to grow at a faster rate than has been seen. There are already many new

domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma,

Reebok, Florsheim, Rockport, etc. have also been able to enter the market.

The footwear sector has matured from the level of manual footwear manufacturingmethods to automated footwear manufacturing systems. Many units are equipped with In-

house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe

Design packages that are intuitive and easy to use. Many Indian footwear factories have

also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent

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facilities for Physical and Chemical testing exist with the laboratories having tie-ups with

leading international agencies like SATRA, UK and PFI, Germany.

One of the major factors for success in niche international fashion markets is the ability

to cater them with the latest designs, and in accordance with the latest trends. India, has

gained international prominence in the area of Colours & Leather Texture forecasting

through its outstanding success in MODEUROP. Design and Retail information is

regularly made available to footwear manufacturers to help them suitably address the

season's requirement.

The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing

benefits.Strength of India in the footwear sector originates from its command on reliable

supply of resources in the form of raw hides and skins, quality finished leather, large

installed capacities for production of finished leather & footwear, large human capital

with expertise and technology base, skilled manpower and relatively low cost labor,

proven strength to produce footwear for global brand leaders and acquired technology

competence, particularly for mid and high priced footwear segments. Resource strength

of India in the form of materials and skilled manpower is a comparative advantage for thecountry.

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Indian Scenario:

The Footwear Industry is a significant chunk of the Leather industry in India. India ranks

second among the footwear producing countries next to China. The industry is labor

intensive and is concentrated in the small and cottage industry sectors. While leather

shoes and uppers are concentrated in large-scale units, the sandals and chappals are

produced in the household and cottage sector. India produces more of gents footwear

while the worlds major production is inladies footwear. In the case of chappals and

sandals, use of non-leather material is used tomanufacture these in the domestic

market.Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,

Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and

Colehaan are manufactured under license in India. Besides, many global retail chains

seeking quality products at competitive prices are actively sourcing footwear from India.

The industry is on the edge of adopting the modern and state-of-the-art technology to suit

the exacting international requirements and standards. The Indian Footwear Industry is all

set for leveraging its strengths towards maximizing benefits. Strength of India in the

footwear sector originates from its command on reliable supply of resources in the form

of raw hides and skins, quality finished leather, large installed capacities for productionof finished leather & footwear, large human capital with expertise and technology base,

skilled manpower and relatively low-cost labor, proven strength to produce footwear for

global brand leaders and acquired technology competence, particularly for mid and high

priced footwear segments. India has the competitive advantage over other countries in the

form of materials and skilled manpower The Indian footwear retail market is expected to

grow at a CAGR of over 20% for the period spanning from 2008 to2011. Footwear is

expected to comprise about 60% of the total leather exports by 2011 from over 38% in

2006-07. Presently, the Indian footwear market is dominated by Men's footwear market

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

Indian footwear market is dominated by casual footwear market. As footwear retailing in

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India remains focused on men's shoes, there exists a plethora of opportunities in the

exclusive ladies' and kids' footwear segment. The Indian footwear market scores over

other footwear markets as it gives benefits like low cost of production, abundant raw

material, and has huge consumption market.

India is now a major supplier of leather footwear to world markets and has the potential

to rival China in the future (60% of Chinese exports are synthetic shoes).

India is often referred to as the sleeping giant in footwear terms. It has an installed

capacity of 1,800 million pairs, second only to China. The bulk of production is in mens

leather shoes and leather uppers for both men and ladies. It has over 100 fully

mechanized, modern shoe making plants, as good as anywhere in the world (including

Europe). It makes for some up market brands including Florsheim (US), Lloyd

(Germany), Clarks (UK), Marks and Spencer (UK).

SWOT Analysis of Indian Footwear Industry:-

STRENGTHS: -

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Existence of more than sufficient productive capacity in tanning.

Easy availability of low cost of labour.

Exposure to export markets.

Managements with business background become quality and environment

conscious.

Presence of qualified leather technologists in the field.

Comfortable availability of raw materials and other inputs.

Massive institutional support for technical services, designing, manpower

development and marketing.

Exporter-friendly government policies.

Tax incentives on machinery by Government.

Well-established linkages with buyers in EU and USA.

WEAKNESSES: -

Low level of modernisation and upgradation of technology, and the integration of

developed technology is very slow.

Low level of labour productivity due to inadequate formal training / unskilled

labour.

Horizontal growth of tanneries.

Less number of organised product manufacturers.

Lack of modern finishing facilities for leather.

Highly unhygienic environment.

Unawareness of international standards by many players as maximum number of

leather industries are SMEs.

Difficulties in accessing to testing, designing and technical services.

Environmental problems.

Non availability of quality footwear components

Lack of fresh investment in the sector.

Uneconomical size of manufacturing units.

Competition among units vying for export orders leading to undercutting.

Little brand image.

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Poor labour productivity. Lack of awareness about consistent in

plant training and retraining- Inconsistent quality high rejection rate

Low machine and material productivity.

Lack of quality job work units

Delayed deliveries

Weak support infrastructure for exports

OPPORTUNITIES: -

Abundant scope to supply finished leather to multinationals setting up shop in

India.

Growing fashion consciousness globally.

Use of information technology and decision support software to help eliminate the

length of the production cycle for different products

Product diversification - There is lot of scope for diversification into other

products, namely, leather garments, goods etc.

Growing international and domestic markets.

Exposure to newer markets through Fairs/ BSMs

Retain customers through quality supplies and timely deliveries

Aim to present the customer with new designs, infrastructure, country & company

profiles.

Use of modern technology

Exhibit strengths in manufacturing, for example, strengths in classic shoe

manufacturing, hand crafting etc.

De-reservation of the footwear sector.

THREATS: -

Entry of multinationals in domestic market.

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Stiff competition from other countries.(The performance of global competitors in

leather and leather products indicates that there are at least 5 countries viz, China,

Indonesia, Thailand, Vietnam and Brazil, which are more competitive than India.)

Non- tariff barriers - Developing countries are resorting to more and more non

tariff barriers indirectly.

Improving quality to adapt the stricter international standards.

Fast changing fashion trends are difficult to adapt for the Indian leather industries.

Limited scope for mobilising funds through private placements and public issues,

as many businesses are family-owned.

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Share in GDP of footwear industry:-

India's GDP recently crossed the trillion-dollar mark for the first time and with this

India has joined the elite club of 12 countries with a trillion dollar economy.

Countries that have breached trillion-dollar GDP level in the past are he US, Japan,

Germany, China, UK, France, Italy, Spain, Canada, Brazil and Russia.

The GDP or Gross Domestic Product is the primary indicator used to gauge the

health of a country's economy. The GDP of a country is defined as the market value

of all final goods and services produced within a country in a given period of time. It

is also considered the sum of value added at every stage of production of all final

goods and services produced within a country in a given period of time. GDP is a

number that expresses the worth of the output of a country in local currency. GDP

tries to capture all final goods and services that are produced within the political and

geographical frontiers of the country, thereby assuring that the final monetary value

of everything that is created in a country is represented in the GDP. GDP is

calculated for a specific period of time, usually a year or a quarter of a year.

According to the data released for the year 2006-2007, India's GDP grew at an

impressive 9.2 per cent. The share of different sectors of the economy in India's GDPis as follows: Agriculture - 18.5 per cent, Industry - 26.4 per cent, and Services - 55.1

per cent. The fact that the service sector now accounts for more than half the GDP is

a milestone in India's economic history and takes it closer to the fundamentals of a

developed economy. At the time of independence agriculture occupied the major

share of GDP while the contribution of services was relatively very less.

The government has set a target of an average annual GDP growth of 9 per cent for

the Eleventh Five Year Plan. The target looks achievable as all the macroeconomic

fundamentals are strong and the impressive growth rate of Indian GDP looks all set

to continue. Footwear Market in India 2010 ... India has around 3% share in the

global trade of leather in comparison to Chinas 20%. In order to . ... From 10% of

the Indian GDP in2007, it became 12% of GDP in 2009. ...

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COMPETITORS

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Companies Profile:

ADIDAS:Adidas ltd is a German sports apparel manufacturer and part of the Adidas

group,

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which consist of Reebok sportswear company, Taylor Made-Adidas golf company, and

Rockport. Adidas is the largest sportswear manufacturer in Europe and the second largest

sportswear manufacturer in the world. Companys revenue for2006 was listed at about

US $

13.625 billion and the 2007 figure was listed about $ 15.6 billion. It has more than 170subsidiaries guarantee marketplace presence for Adidas products around the world.

Liberty: Liberty shoes ltd. is a leading leather shoes brand and is engaged in the

manufacturing,

supplying and exporting of the footwears. It is the only Indian leather shoe brand that

occupies

fifth ranking among the top shoes manufacturing companies in the world.

Reebok: Reebok specializes in the design, marketing and distribution of sports and

fitness

products including footwear, apparel and accessories, as well as footwear and apparel fornon-

athletic use. The company has three main product categories:Rbk, Performance, and

Classic.

Each of these product categories features product offerings for both men and women that

are

designed for specific consumer groups. Reebok has operations in the UK, Europe and in

various

and in various Asian countries. It is headquartered in canton, Massachusetts. The

acquisition ofReebok by Adidas-Salomon was completed in January 2006.

Bata: Bata industries is a specialized division of the worlds largest shoe manufacturer:

the Bata

shoe Organization (BSO). Bata industries has operations and production facilities in most

of the

countries worldwide. Bata India Limited is the largest footwear retailer in India. BataIndia is a

manufacturer of footwear. Types of footwear offered by the company include rubber,canvas,leather and plastic footwear. The company also markets apparel under the brand names ofNorthStar, Power and Ambassador. Bata India has five manufacturing plants and acquires itsleatherfrom two tanneries in Mokamehghat (Bihar) and Batanagar. It is headquartered in West

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Bengal,India

Relaxo: Relaxo entered into footwear industry in 1976. It started off with the

manufacturing of

Hawaii slippers and subsequently diversified into manufacturing casuals, joggers, school

and

leather shoes. Relaxo has the capacity to manufacture over 100 million pairs, per annum.

It has

the customer base of around 100 millio

KEY FINANCIAL FIGURE OF TOP SIX FOOTWEAR

COMPANIES FOR THE YEAR 2007 -2008

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COMPANY

NAME

Paid up

Eq. share

capital

Promoters

contribution

(%)

Net profit &

loss after tax its

margin(%)

(Rs.

In Cr.) (%)

Dividend

(%)

EPS

(%)

Return

on Net

Worth

(%)

Offer

price

of last

issue

Closing

price

(%)

52 week

BATA

Bata IndiaLtd.

64.26 51.02 47.44 5.47 20.00 7.38 22.56 30.00 167.55 179.80

76.00

LIBERTY

LibertyShoes Ltd.

17.04 61.94 16.5 6.47 - 9.42 13.98 99.00 62.15 78.05

32.30

MIRZA

TannersLtd.

18.54 64.65 3.61 2.84 15.00 0.39 2.84 60.00 14.00 18.15

6.50

RELAXORelaxoFootwearLtd.

6.00 75.00 10.52 3.44 15.00 8.77 17.31 60.00 51.65 60.00

24.25

SARUP

TunnersLtd.

3.2 74.36 1.51 4.13 12.00 4.66 6.72 40.00 42.25 52.65

21.15

SUPER

HOUSE

SuperHouse Ltd.

9.59 44.84 3.95 1.25 - 4.12 4.45 15.00 28.00 32.50

15.00

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FINANCIAL ANALYSIS

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The term analysis is methodical classification of data given in the financial statements.

Financial analysis is the process of identifying the financial strength and weakness of

tiles Finn by property establishing relationship between the item of balance sheet & profit

& loss account.

Financial analysis can be undertaken by the firm or by outside parties, firms owner,

creditors, investors and other. Actually the nature of analysis depends upon the parties.

Financial analysis consists in separating facts according to some definite plan,

arranging them in groups according to certain circumstances, and then presenting them in

a convenient and easily read and understandable form. According to Finney and Miller

Financial statement analysis is largely a study of relationship among the various

financial factors in a business, as disclosed by a single set of statements and a study of

the trends of these factors, as shown in a series of statements.

According to John N. Myres

Feature of Financial Analysis :-

1. To presents a complex data contained in the financial statement in simple and

understandable form.

2. To classify the item contained in the financial statement in the convenient andrational groups.

3. To make comparison between various groups to draw various conclusions.

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TYPES OF FINANCIAL ANALYSIS

3. Classification on the basis of material used.

4. Classification on the basis of modus operandi.

On the basis of material used :-

External analysis :-

Outsiders, who dont have access to the detailed internal accounting record of business

firm, do this analysis. These outside parties potential investors, creditors, government

agencies & general public.

Internal analysis :-

The analysis conducted by person who has access to the internal accounting records of a

business firm is known as internal analysis.

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On the basis of modus operand :-

Horizontal analysis:-

Horizontal analysis refers to the comparison, of financial data of a company for several

years. The figures of this types of analysisare presented horizontally over a number of

columns. This types of analysis is also called dynamic analysis.

Vertical analysis:-

This analysis refers to the study of relationship of the various items in the financial

statements of one accounting period. It is also known as Static analysis

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Significance or importance of Financial Analysis :-

8. Significance for Managers ;-

Planning and Control are the two most important ingredients to a Successful

Business. A Business Plan takes most of the guess work out of Business Strategy and

Control through solid Financial analysis. Financial Data provides a way to gauge where

you are in your Strategic Plan, telling you where changes in your Plan are necessary.

Because of this, Financial Data Analysis and Management are vitally important to

running a successful business.

9. Significance for Investors:-

Investors are generally considered one of the primary users of financial statements.

They use the financial statements to determine the current profitability of the firm and

attempt to predict its future profitability. Their interest is in the future growth of acompany's stock price and/or the likelihood of the company paying dividends to the

owner.

10. Significance for Creditors:-

In the ongoing relationship between suppliers and a firm financaial statement can play

several roles consider the relationship between a firm and the suppliers to its loan

capital.e.g a bank in the initial loan granting stageof the relationship,financial

statement typically are an important items.

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11. Significance for regulatory agency:-

The demand by these bodies can arise in diverse set of areas such as revenue raising e.gfor income tax,sales tax ,value added tax collection. Govt. intervention e.g determine

wheather to provide a govt.backed loan agreement to a finically distressed firm.

12. Significance for Employess:-

They are the part of the orgnisation and feel that their effort contributed to the firm

profitthey would therefor prefers togive bonusesnas salary inceresesthis also increase

expensies of the firm.

13. Significance for others parties:-

The set of party that demand for financial analysis information of corporation is open

ended . diverse party such as academic ,environmental protection organization, and other

special interest lobbing groups approach corpartionfor detail relating to their financial

and other affairs.

14. Significance for Government :-

Various ministries and department have interest in the firms payments of taxes. Also

seet the enchment of lawfor the industry and the provision of socialservice to the public.

The govet may also want to ensure that the firm complies with the law on for example

wages payments and employees benefit.

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Limitation of Financial Analysis :-

lthough analysis of financial statement is essential to obtain relevant information for makingseveral decisions and formulating corporate plans and policies, it should be carefully

performed as it suffers from a number of the following limitations.

lead the users:-

The accuracy of financial information largely depends on how accurately financial statement

prepared. If their preparation is wrong, the information obtained from their analysis will also

wrong which may mislead the user in making decisions.

8.Not useful for planning:-

Since financial statements are prepared by using historical financial data, therefore, the

information derived from such statements may not be effective in corporate planning, if

the previous situation does not prevail.

9.Qualitative aspects:-

Then financial statement analysis provides only quantitative information about the

company's financial affairs. However, it fails to provide qualitative information such as

management labour relation, customer's satisfaction, management's skills and so on

which are also equally important for decision making.

10. Comparison not possible:-

The financial statements are based on historical data. Therefore comparativeanalysis of

financial statements of different years can not be done as inflation distorts the view

presented by the statements of different years.

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5. Wrong judgement:-

The skills used in the analysis without adequate knowledge of the subject matter may

lead to negative direction . Similarly, biased attitude of the analyst may also lead to

wrong judgement and conclusion.

6.Not helpful in price fixation:-

In financial accounting the cost is not available as an aid in determining prices of the

product services production order and product line.

7. Not control on cost:-

It does not provide for a proper control of materials and suppliers,wages.labours and

overheads.

15. No analysis of losses:-

It does not provided the complete analysis of lossesdue to defective material ,idle

time,idle palnt and equipment. In other words no distinction is made between avoidable

and unavoidable wastage.

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.

PURPOSE OF FINANCIAL ANALYSIS

The purpose os analysis of financial statements depends upon the need of a person who

analysis these statements. These needs may be :-

7. To know the earning capacity or profitability.

8. To know the solvency.

9. To know the financial strength.

10. To make comparative study with other firms.

11. To know the capability of payment of interest & dividend.

12. To know the trend of business.

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Following statements are including in the list of financial statements :-

7. Profit and loss account.

8. Balance sheet.

9. P & L appropriation account.

10. Cash flow statement.

11. Various schedules.

12. Explanatory notes given at the end of financial statement.

INCOME STATEMENT OR PROFIT &LOSS ACCOUNT

It ia an important financial statement. It is a statement of revenues earned and the

expenses incurred.

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NEED OF INCOME STATEMENT

1. To ascertain the cost of production, gross profit, gross loss/ net profit and net loss.

2. To ascertain the cost of goods sold and establishing its relationship with sales.

3. To ascertain the profitability of the business by establishing relationship of gross

profit and net profit with sales.

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POSITION STATEMENT OR BALANCE SHEET

Balance sheet is a statement which presents the financial position of a business on a

particular date. It is prepared at the end of accounting period.

CHARACTERISTIC OF BALANCE SHEET:-

1. Balance sheet is prepared on a particular date and it shows the financial positionof business on that very particular date.

2. Balance sheet has two columns. It tells the relationship between Assets and

Liabilities and the total of both the sides are equal.

3. Balance sheet shows the financial position of a business on going concern value.

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CASH FLOW STATEMENT:

A cash flow statement is a statement which summarizes the sources of cash inflows and

uses of cash outflows of a business enterprise during a particular period of time, say a

month or year. When cash flow statement us prepared, sources and uses of cash only are

taken in to account and even liquid assets like debtors and bill receivable are excluded .

since the idea of preparing this statements to sumarise the impact of various transaction

on the cash position of the firm those transctions which result in increase of cash position

are termed as cash inflows and those which result in decrease of cash position are the

sources of cash outflows.inshort , it may be said that a cash flow statement shows thesources of cash receipts and the purpose of which payments are made .

Classification of Cash flows : According to as-3 (Revised)

A cash flow statement should be presented in manner that it report inflows andoutflows

of cash by classigying them into three categories manely operating , investing and

financial activities.

1. Cash flow from Operating activitites :

Operating activities are the main revenue genratting activities of an enterprise. As

such they include cash flows from those tranctions and events which enter into

the ascertainment of net profit or loss of the enterprise.

Examples of cash flows arising operating activities are:

Cash receipts from sale of goods and rendering of services,

Cash receipts to suppliers for goods and services,

Cash receipts from royalities ,fees , commissions and other revenue,

Cash payments to and on behlf of employees,

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Cash receipts or refunds of income taxes unless they can be specifically

identified with financing and investing activities.

2. Cash flow form Investing Activities:

Investing activities include the purchases and sale of long term assets such a land ,

building , plant and machinery etc. not held for resale. These acrivites also include the

purchase and of sale investments which are not included in cash equivalants. Cash flow

form investing activities discloses the expenditures incurred for recourses intended to

generate future income and cash flows.

Examples of cash flow from investing activities are :

Cash payments to acquire fixed assets and also pay nets for capitalized research

and development costs and self constructed fixed assets.

Cash receipts from sale of fixed asets.

Cash payments to acquire shaes warrants

Cash receipts from sale of shares warrants or debt instrument of other enterprise.

Cash receipts of interest and dividend.

3. CASH FLOW FROM FINANCING ACTIVITIES:

Financial activites are the activities that result in change in capital and borrowing of the

enterprise. Examples of cash flows arising from financial activities are ;

Cash receipts from issuing shaes or other similar instruments,

Cash receipts from issuing debentures , loans, notes and other short term or long

term borrowing.

Cash repayents of amount borrowed buy back of equity shares redemption of

reference shaes, debentures notes ,bonds etc.

Cash payment of interest and dividend.

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TECHNIQUES OR METHODS OF FINANCIAL ANALYSIS :-

8. Comparative Statements.

9. Trend analysis

10. Common size Statements.

11. Fund flow statements.

12. Cash flow statements.

13. Ratio Analysis.

14. Break even point Analysis.

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COMPARATIVE STATEMENT:-

This is a simple method for tracing changes in the financial performance of a company.

Comparative financial statements will contain items for atleast two periods. Changes

increases and decreases in income statement and balance sheet over period can be

shown in two ways:(1)aggregate changes

(2)proportional changes

Drawing special columns for aggregate amount or percentage, or both, of increase and

decrease, can indicate aggregate changes. Recording percentage calculated in relation to a

common base in special columns, on the other hand,shows relative, or proportional

changes. An investigation of the comparative financial statements help to highlight the

significant facts and points out the items which need further analysis.

Trend Analysis

In financial analysis the direction of changes over a period of years isof crucial

importance. Time series or trend analysis of ratios indicate the direction of change. This

kind of analysis is particularly applicable

to the items of profit and loss account. For the trend analysis, the useof index numbers is

generally advocated. The procedure followed is toassign the number 100 to the items of

the base year and to calculate percentage changes in each item of other years in relation

to the baseyear. This procedures may be called as Trend Percentage Method.

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Inter- Firm Analysis

A firm would like to know its financial standing vis--vis its competitors and the industry

group. The analysis of the financial performance of all firms in an industry and their

comparison at agiven point of time is referred to as cross sectional analysis or theinter-

firm analysis. To ascertain the relative financial standing of a firm, its financial ratios are

compared either with its immediate competitors or with the industrial average.

Performa Analysis

Sometimes future ratios are used as the standards of comparison. Future ratios can be

developed from the projected, or proforma financial statements. The comparison of the

current or past ratiosshows the firms strengths and weaknesses in the past and the

future.If the ratios indicate weak financial position, corrective actions can beinitiated

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PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31TH

MARCH,2009

PARTICULAR SCHEDULES

31.03.2009 31.03.2008

INCOME

Sales 2,47,52,66,480

2,57,89,34,907

Less:Excise Duty 7,08,28,579 10,04,27,026Other income 14 2,40,44,37,9

012,47,85,07,881

Increase/decrease instocks

15 (11,78,78,966)

2,30,06,38,412

5,07,11,294

EXPENDITURE 6,98,57,067 2,59,90,76,242

Raw materialconsumed and

16 1,16,43,16,511

1,31,95,59,94,764

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finished goodspurchased

Manufacturingexpenses

17 18,08,68,348 18,95,59,879

Payments and

benefit to employees

18 20,91,85,795 22,60,92,498

Administration,selling andmiscellaneousexpenses

19 49,10,44,987 50,92,61,505

Interest & financialcharges

20 12,56,40,916

Excise duty (92,32,509) (43,62,344)

Depreciation 6 6,59,45,826 2,22,77,69,874

6,37,96,894 2,43,74,00,141

Profit before tax 7,28,68,538 16,16,76,101

Provision for

taxation

1,21,95,260 1,85,89,712

Current tax (1,19,38,000)

(1,83,17,902)

MAT CreditEntitlement

Fringe benefit tax 27,44,967 30,49,250

Deffered tax (55,86,050) (21,58,570)

Profit after tax 7,54,52,361 16,05,13,611

Add/(less) : taxationadjustment ofprevious year (net)

(2,42,653) (52,84,920)

43,87,989

Net profit for theyear

7,52,09,708 15,96,16,680

Add: opening`balance

32,86,59,777 22,90,16,680

Net profit availablefor appropreation

40,38,69,485 38,86,59,777

APPROPREIATIONS

Transfer to generalreserve Balancecarried over to

balance sheet

6,00,00,000 6,00,00,000

Earing per share ofRs. 10/- each

343869485 32.86,59,7777

Basic 7 diluted 4.43 9.42

Basic & diluted 4.44 7.95

Basic & dulited(considering taxation

4.41 9.37

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for previous years)

BALANCE SHEET AS ON 31TH MARCH ,2009

PARTICULAR 31.03.2009 31.03.2008

SOURCES OF

FUNDS

Share holders

Funds

Share capital 17,04,00,000

Reserve &surplus 1,05,29,98,993 1,22,33,98,993 97,77,89,285 1,14,81,89,285

Loan Funds

Secured Loans 82,65,32,740 1,03,31,65,873

UnsecuredLoans

19,03,29,914 1,01,68,62,654 17,49,91,716 1,20,81,57,589

Deffered Tax

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Deffered TaxLiability

6,52,89,687 7,08,75,737

Total 2,30,55,51,334 2,42,72,22,611

APPLICAION

OF FUNDS

Fixed AssetsGross block 1,31,72,96,575 1,26,0640,151

Less:Depreciation

47,08,47,571 40,60,66,799

Net Block 84,64,49,004 85,45,73,352

Add: CapitalWork inprogress

12,92,181 84,77,41,185 1,54,92,360,87,00,65,712

Investment 20,33,98,812 20,33,98,812

Currenent

Assets,Loan &

advance

Inventories 67,27,25,412 76,18,73,108Sundry Debtors 70,43,22,494 72,41,47,983

Cash & BankBalances

5,14,67,849 4,49,26,777

Loans&Advances

28,16,65,313 27,49,86,325

1,71,01,81,068 1,80,59,34,193

Less: currentliabilityprovision

44,25,19,4171,32,50,314

42,93,74,4502,28,01,656

Net currentassets

1,25,44,11,337 1,35,37,58,087

Total 2,30,55,51,334 2,42,72,22,611

COMPARATIVE INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2009,2008AND 2007.

31-Mar-09(12)

31-Mar-

08(12)

31-Mar-07(12)

Net Sales (OI) Rs mn %OI Rs mn %OI Rs mn %OI

Material Cost 2404.44 100.00 2478.51 100.00 2221.52 100.00

IncreaseDecreaseInventories

905.59 37.66 1107.36 44.68 1116.30 50.25

PersonnelExpenses

447.72 18.62 220.38 8.89 -29.34 -1.32

Manufacturing 209.19 8.70 226.09 9.12 212.33 9.56

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Expenses

Gross Profit 254.89 10.60 270.45 10.91 296.39 13.34

AdministrationSelling andDistribution

Expenses

587.06 24.42 654.23 26.40 625.84 28.17

EBITDA 336.68 14.00 346.01 13.96 312.89 14.08

DepreciationDepletion andAmortization

250.38 10.41 308.22 12.44 312.95 14.09

EBIT 65.95 2.74 63.80 2.57 46.33 2.09

InterestExpense

184.43 7.67 244.42 9.86 266.62 12.00

Other Income 125.64 5.23 133.46 5.38 88.17 3.97

Pretax Income 14.08 0.59 50.71 2.05 16.67 0.75

Provision for

Tax72.87 3.03 161.67 6.52 195.12 8.78

Extra Ordinaryand Prior PeriodItems Net

-2.34 -0.10 6.45 0.26 24.02 1.08

Net Profit 0.00 0.00 4.39 0.18 0.74 0.03

Adjusted NetProfit

75.21 3.13 159.62 6.44 171.83 7.73

Dividend -Preference

75.21 3.13 159.62 6.44 171.83 7.73

COMPARATIVE BALANCE SHEET STATEMENT :-

(RS Crores)

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar '

Sources of fundsOwner's fund

Equity share capital 17.04 17.04 17.04 17.04 5

Share application money - - - -

Preference share capital - - - -

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Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar '

Reserves & surplus 105.30 97.78 81.82 64.63 57

Loan funds

Secured loans 82.65 103.32 104.03 48.81 22

Unsecured loans 16.44 15.06 22.02 21.45 31

Total 221.44 233.19 224.91 151.94 115

Uses of funds

Fixed assets

Gross block 131.73 126.06 110.55 79.70 66

Less : revaluation reserve - - - -

Less : accumulated depreciation 47.08 40.61 35.55 31.22 27

Net block 84.64 85.46 75.01 48.49 39

Capital work-in-progress 0.13 1.55 8.14 0.92 0

Investments 20.34 20.34 17.10 6.43 4

Net current assets

Current assets, loans & advances 171.02 180.59 182.61 134.95 113

Less : current liabilities & provisions 54.70 54.75 57.94 38.84 41

Total net current assets 116.32 125.84 124.67 96.10 72

Miscellaneous expenses not written - - - -

Total 221.44 233.19 224.91 151.94 115

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FINDINGS OF THE STUDY

1) Company is using WCDL (Working Capital draw down limit) for meeting shortterm requirement of cash.

2) The liquidity position of the company is better compared to previous year.

3) Companys inventories position is better compared to previous year.

4) Profit of the company decreased drastically this year compared to previous year.Company is unable to reduce its fixed expenses.

5) The main focus is on the quality of the export goods. They give less attention to theneeds of Indian customer. Thats why company is not able to increase its market share.

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CONCLUSION

There is always a conclusion at end of any activity or training programmed. Afterconsultation, reviewing the training period following are some conclusion regarding the

Liberty Footwear:-

1. Windsor in males and Senorita in female are the most popular brands.

2. Liberty has gained more popularity comparatively in competition with other shoe

companies.

3. Demand of Force-10 is very low among men footwear.

4. Demand of Gliders is very low among ladies footwear.

5. Maximum customers influences have preferred to watch Liberty advertisement

between programmes.

6. Liberty has got the largest range and variety of shoes.

7. Main competitors of Liberty shoes are Action , Bata, Lakhani,Relaxo, Woodland,

Phoneix and some local companies.

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SUGGESTIONS

Suggestion are also very important after two month experience in any company ororganization. Appended below are few suggestion.

1. Company should produce more light weight chappals and sandals and should

advertised it separately so as to attract the children.

2. Company should makes their prices more competitive and should minimize the

prices.

3. Company should increase the investments on advertisement as it has now become

more effective.

4. Company should give emphasis on persons attitude and perception while designing

and advertisement because personal likings is more influencing factor among people.

5. Company should change its time schedule on TV according to the respondents

preferences.

6. Company should give more emphasis on their sloganSAPNEY AB HUE APNE to

make more effective.

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BIBLIOGRAPHY

BOOKS

Pandey, I.M., Financial Management, Ed. 2007, Vikas Publishing House PrivateLtd., New Delhi.

Gupta, Shashi K., Management Accounting, Ed. 2007, Kalyani Publishers, NewDelhi.

Manual

Annual reports

Websites

www.libertyshoes.com

www.libertyfreedom.com

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GALLOSARY

GROSS BLOCK

Definition of Gross block "The total value of all of the assets that a company owns.Value is determined by the amount it cost to acquire these assets, and it is not decreased

to take into account the effects of depreciation."

When you look at the Balance sheet of a company on the Assts side there is a head calledfixed assets. If you go to the Schedule of Fixed assets in the first column will be all thefixed assets original cost i.e Land and building plant and machinery furnitures andfixtures motor vehicle Office equipments total is called gross block and after deduction ofdepreciation the same is called NET block.

Documents

sunny report