Vous êtes sur la page 1sur 91



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.


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

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, firm’s

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



Financial statements mean a statement or document which explains

necessary financial information about an organization/ company. The
financial statements are 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) - an independent, 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).


1. Classification on the basis of material used.

2. Classification on the basis of modus operandi.

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 Employees:-

6. Significance for others parties:-

7. Significance for Government :-

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:-


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.

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.


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


The financial statements are the sources of information on the basis of which
conclusions are drawn about the profitability and financial position of an
organization/ company.
These statements help the company in making planning and taking

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

2. To measures the solvency of the company.

3. To measure 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


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

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

8. To provide useful information 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 three 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
decrease in above on three different dates.

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


Research, which is done for his particular project is with the help of data
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 follows:-

Research problem

Here the problem is to analyze the ratio of the company for which we have
to conduct the research.

Executive literature survey:

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

Prepare the research design :

Here the research is descriptive research as we to give various description so

design are formulated accordingly.

Research design is a framework or the blue print for conducting the research project.
Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. It includes an outline of what the researcher will do from writing the hypothesis
and its operational implications to the final analysis of data.


• Exploratory research design
• Descriptive research design
• Experimental 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.
In this casual relationships between the variables are tested. It is also known
as hypothesis testing research design.

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

analytical research design is to define the problem into researchable one and
analyze the data according to the purpose.

Sample size :

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

Collection of data :

Data, which is collected for the research is secondary data as I had collected
it from the account 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 of data :

In this stage of research process the data is made in the tabulated whether
data is adequate or not.

Preparation of report :

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


Primary data companies of information obtain from employees of this


Secondary data :-

Secondary data companies of annual reports, questioning, ledger and past


Company has provided me annual reports from 2000-2001 to 2008 to 2009
by the help of which prepared my report.
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. Questions related to

problem and data tallied with FM, CA & accountants of the company.

Special record searching : -

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

Analysis :-

Analysis of various types of data, statement were also made during the study
by using standard formulas.


 The study was conducted in limited areas.

 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.


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 ΙΙΙ, liberty park in karnal city Registered office & human tech.
centre Ι, Liberty puram in kutial (karnal) and human Tech. centre ΙΙ ,liberty
complex in Ghuraunda (karnal) .The marketing office is located at Punjab
Bagh New Delhi. The liberty has its domestic branch office at Agra,
Bengaluru, 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 customer’s satisfaction world wide. The major
strength of liberty footwear is its strong distribution channel and its
technological advancement. Liberty is devoted to the customer of the world
and they strive hand to keep true to there motto, ”SAPNE AB HUE


Like all the enterprises this company too is seeped in history. It was on 25th
December 1954 when India was nurturing its growth as a free country those
three dreamers in a small town in erstwhile Punjab throughout 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 produces footwear for the
entire family and is a trusted name in many households across India and
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 amongst the 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, 350 excutive showrooms and over 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 W.E.F business on 11th March 1988. Firm register office of the
companies situated at Delhi, Haryana and New Delhi. The company shifted
its registered 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 of M/S
Liberty & Co. with M/S Groky Product & shoes unit Groky City but
subsequently the name of venture was changed as “Liberty & Nino”.


Liberty conducts its business with honestly, integrity and respect for all
those who come in contact with it in course of business. Fully appreciative
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. Utmost 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

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 company can 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 machine 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
increasing growth rate of demand over the base several years.

Future plan
Group has set up this company to expand its exciting capacity by more than
two 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 decisions, which are 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 participation in decision
making .their views recommendations and suggestion are given due
consideration. However the final authority lies with top executive.

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 acetic acid in India promotes Liberty
organosys limited. Liberty proposes to 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 be announced

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, Bengaluru, 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 &

Liberty Whiteware Ltd.

Just 90 minutes away from New Delhi on the national highway 8 that joins
the country’s 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
advantages. 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.


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

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

Late Sh. R. K. Bansal

He was 67 years old and the promoter’s 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


 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)


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

been given that 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
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.
They’re cool and they’re hot. They’re hap and they’re
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?
Here’s one brand of sandals that stays cozy and comfy all year round.
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.
 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

Genuine leather uppers and extra light poly
soles help complete the power dressing in
men with élan and panache.
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.
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.

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.

Smart, stylish professional gear crafted from
leather uppers and direct injection P.U. soles
with steel toe 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.

The premium is on lightness, style and
comfort which make it ideal for men who
take every challenge effortlessly in their

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.



Force -10 Family force Sports & 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 &
Tip –Top Fun for Canvas & Canvas & Children
children leather leather
Senorita Seniority Bellerion Leather Ladies
Coolers Feel coolness Slippers sandals Leather Gents
Geo Sports Build Sports shoe Leather Gents & ladies
Foot fun - Sports shoe Canvas Children


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 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.


The liberty group has won several prestigious national and international awards,
which are as under:

 Arch of Europe international gold star, 1994.

 International award for good quality, Brussels, Belgium 1988.

 Europe award for pair in 1987.

 International Asian award, Jakarta in 1982.

 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


 Leather export promotion council merit award for outstanding performance

for 1976 to 1982.

 National award for best export performance in leather garments in 1987 –


 Haryana government export award in 1978-1979.
























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 gent’s footwear while the world’s major production

is in ladies footwear. In the case of chapels and sandals, use of non-leather
material is prevalent in the domestic market.

Leather footwear exported from India are dress shoes, casuals, moccasins,
sport shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear
exported from India are shoes, Sandals and Chappals made of rubber,
plastic, P.V.C. and other materials.

With changing lifestyles and increasing affluence, domestic demand for

footwear is projected to grow at a faster rate than has been seen. There are
already many new domestic brands of footwear and many foreign brands
such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also
been able to enter the market.

The footwear sector has matured from the level of manual footwear
manufacturing methods to automated footwear manufacturing systems.
Many units are equipped with In-house Design Studios incorporating state-
of-the-art CAD systems having 3D Shoe Design packages that are intuitive
and easy to use. Many Indian footwear factories have also acquired the ISO
9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities
for Physical and Chemical testing exist with the laboratories having tie-ups
with leading international agencies like SATRA, UK and PFI, Germany.

One of the major factors for success in niche international fashion markets is
the ability to cater them with the latest designs, and in accordance with the
latest trends. India, has gained international prominence in the area of
Colours & Leather Texture forecasting through its outstanding success in
MODEUROP. Design and Retail information is regularly made available to

footwear manufacturers to help them suitably address the season's

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 the country.

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 world’s
major production is in ladies 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 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. 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

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 men’s 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:-


• 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.


• 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
• Little brand image.
• 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 infra- structure for exports


• 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.


• Entry of multinationals in domestic market.

• 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.

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 GDP is 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. ...


Companies Profile:
ADIDAS:Adidas ltd is a German sports apparel manufacturer and part of the
Adidas group, 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. Company’s revenue for2006 was listed at about US $ 13.625
billion and the 2007 figure was listed about $ 15.6 billion. It has more than
170 subsidiaries 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 footwear’s. 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 for non-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 of Reebok by
Adidas-Salomon was completed in January 2006.

Bata: Bata industries is a specialized division of the world’s 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. Bata India 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 of North Star, Power and
Ambassador. Bata India has five manufacturing plants and acquires its
leather from two tanneries in Mokamehghat (Bihar) and Batanagar. It is
headquartered in West 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 million.


COMPANY Paid up Promoters Net profit & Dividend EPS Return Offer Closing 52 week Gain/
NAME Eq. share contribution loss after tax its (%) (%) on Net price price Loss
capital (%) margin(%) Worth of last (%)
(Rs. (%) issue
In Cr.) (%)

BATA 64.26 51.02 47.44 5.47 20.00 7.38 22.56 30.00 167.55 179 76 458.5
Bata India .80 .0 0
LIBERTY 17.04 61.94 16.5 6.47 - 9.42 13.98 99.00 62.15 78. 32 25.55
Liberty 05 .3
Shoes Ltd.
MIRZA 18.54 64.65 3.61 2.84 15.00 0.39 2.84 60.00 14.00 18. 6. (53.33
Tanners 15 50 )
RELAXO 6.00 75.00 10.52 3.44 15.00 8.77 17.31 60.00 51.65 60. 24 72.17
Relaxo 00 .2
SARUP 3.2 74.36 1.51 4.13 12.00 4.66 6.72 40.00 42.25 52. 21 5.63
Tunners 65 .1
SUPER 9.59 44.84 3.95 1.25 - 4.12 4.45 15.00 28.00 32. 15 86.67
HOUSE 50 .0
House Ltd.

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, firm’s 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 and
rational groups.

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


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 don’t have access to the detailed internal accounting record of business
firm, do this analysis. These outside parties are 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.

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 type of analysis are presented horizontally over a number of
columns. This type 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 “

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 a
company's stock price and/or the likelihood of the company paying dividends to the

10. Significance for Creditors:-

In the ongoing relationship between suppliers and a firms financial 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 stage of the relationship, financial
statement typically are an important items.

11. Significance for regulatory agency:-

The demand by these bodies can arise in diverse set of areas such as revenue raising e.g
for income tax, sales tax ,value added tax collection. Govt. intervention e.g determines
weather to provide a govt. backed loan agreement to a financially distressed firm.

12. Significance for Employess:-

They are the part of the organization and feel that their effort contributed to the firm
profit they would there for prefers to give bonuses and salary increase this also increase
expenses 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 cooperation for detail relating to their financial
and other affairs.

14. Significance for Government :-

Various ministries and department have interest in the firm’s payments of taxes. Also
sees the enactment of law for the industry and the provision of social service to the

public. The govt. may also want to ensure that the firm complies with the law on for
example wages payments and employees benefit.

Limitation of Financial Analysis :-

Though analysis of financial statement is essential to obtain relevant information for making
several decisions and formulating corporate plans and policies, it should be carefully
performed as it suffers from a number of the following limitations.

Mis lead the users:-

The accuracy of financial information largely depends on how accurately financial statements are
prepared. If their preparation is wrong, the information obtained from their analysis will also be
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 labor relation, customer's satisfaction, management 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 comparative analysis of
financial statements of different years can not be done as inflation distorts the view
presented by the statements of different years.

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. labors and

15. No analysis of losses:-

It does not provided the complete analysis of losses due to defective material, idle time,
idle plant and equipment. In other words no distinction is made between avoidable and
unavoidable wastage.



The purpose of 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.

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.


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


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.


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.


1. Balance sheet is prepared on a particular date and it shows the financial position
of 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.


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 is 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 summarize the impact of various transaction
on the cash position of the firm those transactions 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. In short, it may be said that a cash flow statement shows
the sources 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 and outflows
of cash by classifying them into three categories mainly operating, investing and financial

1. Cash flow from Operating activities :

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

such they include cash flows from those transactions 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 royalties ,fees , commissions and other revenue,
• Cash payments to and on behalf of employees,

• 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 activities also include the
purchase and of sale investments which are not included in cash equivalents. 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 assets.
• Cash payments to acquire shares warrants
• Cash receipts from sale of shares warrants or debt instrument of other enterprise.
• Cash receipts of interest and dividend.


Financial activities 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 shares or other similar instruments,
• Cash receipts from issuing debentures, loans, notes and other short term or long
term borrowing.
• Cash repayments of amount borrowed buy back of equity shares redemption of
reference shares, debentures notes, bonds etc.
• Cash payment of interest and dividend.

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.


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 helps 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 is of crucial
importance. Time series or trend analysis of ratios indicates the direction of change. This
kind of analysis is particularly applicable to the items of profit and loss account. For the
trend analysis, the use of index numbers is generally advocated. The procedure followed
is to assign 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 base year. This procedure may be
called as “Trend Percentage Method”.

• Inter- Firm Analysis
A firm would like to know its financial standing vis-à-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 firm’s strengths and weaknesses in the past and the
future.If the ratios indicate weak financial position, corrective actions can beinitiated

PARTICULAR SCHEDUL 31.03.2009 31.03.2008
Sales 2,47,52,66,4 2,57,89,34,907
Less: Excise Duty 7,08,28,579 10,04,27,026
Other income 14 2,40,44,37,9 2,47,85,07,881
Increase/decrease in 15 (11,78,78,96 2,30,06,38,4 5,07,11,294
stocks 6) 12
EXPENDITURE 6,98,57,067 2,59,90,76,242
Raw material 16 1,16,43,16,5 1,31,95,59,94,76
consumed and 11 4

finished goods
Manufacturing 17 18,08,68,34 18,95,59,879
expenses 8
Payments and 18 20,91,85,79 22,60,92,498
benefit to employees 5
Administration, 19 49,10,44,98 50,92,61,505
selling and 7
Interest & financial 20 12,56,40,91
charges 6
Excise duty (92,32,509) (43,62,344)
Depreciation 6 6,59,45,826 2,22,77,69,8 6,37,96,894 2,43,74,00,141
Profit before tax 7,28,68,538 16,16,76,101
Provision for 1,21,95,260 1,85,89,712
Current tax (1,19,38,000 (1,83,17,902)
MAT Credit
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) : taxation (2,42,653) (52,84,920)
adjustment of
previous year (net) 43,87,989
Net profit for the 7,52,09,708 15,96,16,680
Add: opening 32,86,59,77 22,90,16,680
`balance 7
Net profit available 40,38,69,48 38,86,59,777
for appropreation 5
Transfer to general 6,00,00,000 6,00,00,000
reserve Balance
carried over to
balance sheet

Earning per share of 343869485 32.86,59,7777

Rs. 10/- each
Basic 7 diluted 4.43 9.42
Basic & diluted 4.44 7.95
Basic & dulited 4.41 9.37
(considering taxation

for previous years)


PARTICULAR 31.03.2009 31.03.2008

Share holders
Share capital 17,04,00,000
Reserve & 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 1,03,31,65,87
Unsecured 19,03,29,914 1,01,68,62,654 17,49,91,716 1,20,81,57,589
Deffered Tax

Deffered Tax 6,52,89,687 7,08,75,737
Total 2,30,55,51,334 2,42,72,22,611
Fixed Assets
Gross block 1,31,72,96,575 1,26,0640,151
Less: 47,08,47,571 40,60,66,799
Net Block 84,64,49,004 85,45,73,352
Add: Capital 12,92,181 84,77,41,185 1,54,92,360,8
Work in 7,00,65,712
Investment 20,33,98,812 20,33,98,812
Assets,Loan &
Inventories 67,27,25,412 76,18,73,108
Sundry Debtors 70,43,22,494 72,41,47,983
Cash & Bank 5,14,67,849 4,49,26,777
Loans& 28,16,65,313 27,49,86,325
1,71,01,81,068 1,80,59,34,19
Less: current 44,25,19,417 42,93,74,450
liability 1,32,50,314 2,28,01,656
Net current 1,25,44,11,337 1,35,37,58,087
Total 2,30,55,51,334 2,42,72,22,611


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

31-Mar- 31-Mar- 31-Mar-
09(12) 08(12) 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
Decrease 905.59 37.66 1107.36 44.68 1116.30 50.25
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

Gross Profit 254.89 10.60 270.45 10.91 296.39 13.34
Selling and
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
Depletion and 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
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
72.87 3.03 161.67 6.52 195.12 8.78
Extra Ordinary
and Prior Period -2.34 -0.10 6.45 0.26 24.02 1.08
Items Net
Net Profit 0.00 0.00 4.39 0.18 0.74 0.03
Adjusted Net
75.21 3.13 159.62 6.44 171.83 7.73
Dividend -
75.21 3.13 159.62 6.44 171.83 7.73


(RS Crores)

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 17.04 17.04 17.04 17.04 5.07
Share application money - - - - -
Preference share capital - - - - -

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Reserves & surplus 105.30 97.78 81.82 64.63 57.13
Loan funds
Secured loans 82.65 103.32 104.03 48.81 22.11
Unsecured loans 16.44 15.06 22.02 21.45 31.45
Total 221.44 233.19 224.91 151.94 115.76
Uses of funds
Fixed assets
Gross block 131.73 126.06 110.55 79.70 66.50
Less : revaluation reserve - - - - -
Less : accumulated depreciation 47.08 40.61 35.55 31.22 27.39
Net block 84.64 85.46 75.01 48.49 39.11
Capital work-in-progress 0.13 1.55 8.14 0.92 0.24
Investments 20.34 20.34 17.10 6.43 4.02
Net current assets
Current assets, loans & advances 171.02 180.59 182.61 134.95 113.92
Less : current liabilities & provisions 54.70 54.75 57.94 38.84 41.55
Total net current assets 116.32 125.84 124.67 96.10 72.38
Miscellaneous expenses not written - - - - -
Total 221.44 233.19 224.91 151.94 115.76


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

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

3) Company’s 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 the
needs of Indian customer. That’s why company is not able to increase its market share.


There is always a conclusion at end of any activity or training programmed. After

consultation, 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

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.


Although every effort has been made to collect the relevant information through the
sources available, still some relevant information could not be gathered.

 The time duration could not provide ample opportunity to study every detail of
management in the company.

 There are restrictions not to visit some specific areas.

 The concerned executives were having very busy schedule.

 As some figures have not been disclosed by the company on account of

confidential report.

 Estimates are based upon predictions.


Appended below are few suggestions:-

1. Company should produce more light weight chappals and sandals and should
advertise it separately so as to attract the children.

2. Company should make 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 person 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 respondent


6. Company should give more emphasis on their slogan “SAPNEY AB HUE APNE
“to make more effective.



• Pandey, I.M., “Financial Management”, Ed. 2007, Vikas Publishing House Private
Ltd., New Delhi.

• Gupta, Shashi K., “Management Accounting”, Ed. 2007, Kalyani Publishers, New


• Annual reports


• www.libertyshoes.com

• www.libertyfreedom.com



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 called
fixed assets. If you go to the Schedule of Fixed assets in the first column will be all the
fixed assets original cost i.e Land and building plant and machinery furniture’s and
fixtures motor vehicle Office equipments total is called gross block and after deduction of
depreciation the same is called NET block.