SUMMER INTERNSHIP REPORT ON

Financial Planning And Forecasting

DEHRADUN

UTTRAKHAND TECHNICAL UNIVERSITY

DEHRADUN

Assist By SUBMITTED BY
Khima Kandpal SHUBHAM SAXENA
Finance Manager MBA 2NDSEMSTER
Anitej Service Pvt Ltd. Rol lNo.180120500038

TULA’S INSTITUTE
DEHRADUN

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 DECLARATION

I Shubham Saxena, a second year MBA student of Tulas Institute of

Engineering and Management Dehradun.

I hereby declare that project titled Financial Planning and Forecasting

was done by me under guidance of Dr Surichi Sharma (Head of the
Department of MBA) Tulas Institute of Engineering and Management
and Mr Khima Kandpal “Manager—Finance”, GTS Cab Services
Dehradun during 60 days.

This Project work is submitted in the partial fulfillment of the

requirements for the award of the degree of Master of business
Administration. The results embodied in this thesis have not been
submitted to any other University or Institute for the award of any degree
or diploma

DATE: SHUBHAM SAXENA

PLACE: DEHRADUN MBA (3rd SEMESTER)

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 ACKNOWLEDGEMENT

I am grateful to thank GTS Cab Services for giving me this great

opportunity to do my Summer Internship Project with them. I take the
privilege to sincerely thank
Mr Tej Pal Singh Yadav Director, GTS Cab Services Group, in creating
the opportunity for a summer project in the finance department. I would
like to thank Miss Shrutika Gupta Manager-HR and Mr Manish Sonkar
Executive-HR and my Project Guide Mr. Khima Kandpal Manager
-Finance, GTS Cab Service for his guidance and support during the entire
course of the project.

Entire course of the project. I am thankful to the Core Finance Team, of

the company for their guidance, support and encouragement to give my
best during the Internship Program. I specially thank all the Managers,
Officers and the Staff members with whom I interacted during the course
of my project for their support and cooperation.

I also take great pleasure in thanking my faculty guide, Dr. Surichi

Sharma
Chairperson MBA program, Tulas Institute of engineering and
management for giving me the moral support and inspiration to perform
well and make the Summer Internship Project successful.

I then take the opportunity to thank Mrs Jaspreet Kaur, Assistant

Professor,
without whose help, I wouldnt have got such a wonderful corporate
exposure at GTS Cab Services, Dehradun

I would like to heart fully extend my thanks and gratitude to my

family for supporting and instilling confidence in me in all ways. Above
all, I thank the Almighty for His presence within me and without whose
grace the endeavor of mine would not have been successful.

DATE: SHUBHAM SAXENA

PLACE: DEHRADUN MBA (3rd SEMESTER)

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 Executive Summary
The internship project on a Financial Planning and Forecasting has
been a very good experience. Every Cab Service company has to forecast
its financial position for better decision making. An organization risks
can be reduced and the efficiency can be increased through efficient
planning. At the same time company needs to plan about its future
investment to increase the Business and profitability.

In a Cab Service company, the inventories and debtors occupy large

amount which are major components of current assets. The efficient
management of these components would increase the profitability and
flexibility of the firm.

This project is a sincere effort to plan, forecast and analyze the financial
position of GTS Cab Services for the future period. The project is
executed in an efficient manner. The preparation of forecasted financial
statements has undergone a various hard-hitting processes to arrive at the
amount of each item of financial statements.

The study on effectiveness of management of debtors was made to

suggest some areas of improvements to the company. For the study of the
debtors, I reviewed the credit policy document of the company, credit
assessment methodology that the company follows to find out the credit
worthiness of its customers, the financing method adopted by the
company to finance its debtors, the collection method and then finally
classification of debtors according to the segment to which they belong
to.

The financial statements analysis like Ratio analysis, Breakeven

Analysis, Operating cycle & cash cycle and Growth rate has been carried
out to know the financial position of the company in the future period.

The internship is a viaduct between the organization and the institute.

This made me to engage in a project that helped me to learn management
of finance practically. And in the process I could contribute substantially
to the organizations growth.

The experience that I gathered over the period of my internship has

certainly provided the management knowledge which I trust will help me
in future.

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 TABLE OF CONTENT

Sr Contents Page No.

No.
1.
. Industry Profile

Company Profile

Financial Planning and Forecasting

Introduction

Objective

Forecasted Financial Statements

Assumptions

Analysis of Forecasted P&L A/c

Analysis of Balance Sheet

Debtors Management

Operating Cycle & Cash Cycle

Growth Rate

Recommendations

Conclusion

Bibliography

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 INDUSTRY PROFILE

Anitej Service Pvt Ltd.

Company running currently three Businesses which are as Follow:

1. GTS Cab Services

2. GTS Speedo Sales
3. Grille bar and restaurant

A Cab Service Company the purpose of Company is Providing best

Taxi Service in Dehradun Along With Chandigarh, Delhi NCR, Mumbai,
Char dham etc.
They also provide the cab Facility in Corporate Sector. Gts Cab is best
because of its reasonable price and packages and service. Call centre for
booking and complaints is working for the Customer support for 24*7. It
has its own Application name GTS CAR RENTAL. There is a facility in
app for point to point Booking outstation booking and local booking.
There you can get cash back if you book from GTS CAR RENTAL
App. Procedure is very Simple for a hire a cab You need to call on
Customer care or you can use GTS CAR RENTAL App

Gts Speedo Sales deals with Real Estate and have three projects at
Dehradun Level:

1. Pasupati Heights
2. SCORF
3. Buransadar

These three projects are situated at three different locations in Dehradun

and consist of 2BHK, 3BHK and 4BHK Flats which are well furnished
and semi furnished. The main objective of Gts Speedo sales is to provide
the affordable and luxurious flat for middle and high class of people.
Gts Speedo sales also provide the facility of finance by 80% to make the
flats more affordable for middle class peoples. The Flats contains lift,
swimming pool, parking, security, gym, park, swings for children, 24*7
light and many more facilities.
Grille: Restaurant & Bar, the first one that started the grill (barbeque) and
buffet restaurant in Dehradun. Located at AXIOM, Jakhan, Rajpur Road,
Dehradun is one of the most famous restaurants in Dehradun having all
the facilities you ask for.
6
BAR, most of the people aren’t aware of the Full Time Bar that has been
running here for the past 5 years. And live music on every weekend.
Grille is now being run under the right guidance of the new management
team and is offering some really delicious food. Coming up with some
really good ideas for the Kitchen (food) & the Bar (beverages). New
Menu for food & drinks will be introduced really soon.
Service is a really commendable, feel like home and the ambiance is a
five starrer; you take the casual dine area or the terrace or the lounge, this
5500 square yards property is just amazing. Below are the food and
beverages that made your day.
BUFFET
Buffet is the main attraction of this restaurant and usually there are 4 non-
vegetarian and 4 vegetarian starters, which is a mix of different cuisine.
The main course has an option of two soups (non- vegetarian &
vegetarian) with a variety of dishes 3 in the non-vegetarian category and
6 in the vegetarian category, which too is a mix of cuisine. Desserts have
almost 7-8 varieties. The Buffet Menu keeps on Rotation during the
weekdays and changes every Friday, Saturday, & Sunday. Drinks are
separate; usually during the weekends you get a beer pint free with every
buffet you buy. On Saturdays and Sundays you can also cherish the same
variety of food during the Lunch Hours at almost Half The Rates.
A La Carte
This Menu is running on the papers but will be officially launched in a
couple of months. Meanwhile you can get Italian, French, Lebanese,
Japanese, Thai, Russian & other that are in Chefs Special and on his
bucket. This menu is running on a test & trial basis so that one can take a
holistic picture of what does a customer wants and where the precautions
needs to be taken. On Saturdays and Sundays you can enjoy the A La
Carte Combos; that includes the dish, a side dish, some green salad and a
variety of breads.
BAR
Have you ever wondered what does that stands for; Best Available Rate.
Bar here has a very good decor and offers you almost everything that is
available in the town. The Bar Menu is also revamping, with some new
liquor, cocktails from the specialists. (F Bar-Chandigarh, Rock Bottom
Bar-Dubai, Socials- Mumbai) Wine has been an attraction with buffet, as
customers here like to have a Glass or Two of Red/White wine with the
buffet.
7
they continued to globalize their textile economy. The Indian textile
industry has
witnessed significant growth during the last decade in terms of installed
spindleage,
production of yarn (both spun - filament), output of cloth and its per
capita availability
as also exports.

A generous amount of delectable taste, an extravaganza feast for the

eye and a dash of a never-forgetting dining experience,

It also provide the facility of home delivery, it have tie up with Swiggy
and Zomato.

8
 Company Profile

The Anitej service Pvt Ltd was founded by a young and dynamic person

Mr.Tej Pal Singh Yadav

Managing Director
13 Years of rich experience in the Cab Service industry

Mission:

To grow horizontally and vertically in all formats (MBO, EBO, Chain

Stores) through continuous innovation by offering unparallel value to
create customer delight. to place his customer in comfort zone of Anitej
Service wether it is in real estate or Cab service or grille Bar and
Resturant.

Vision

GTS vision is for easier, safer, reliable like 'flipping a switch' outstation
travel for all customers. We strive to provide the best Pick/drop &
outstation taxi travel experience at the lowest possible rates with a
provider partner network that is whetted to meet those expectations for a
good service.

The Anitej Service Pvt Ltd began in 2006 as an Taxi service provider in
Dehradun Only. The concept of Gts cab is differnet from others they
provies the best and cheap service in Dehradun after few time later they
started to give facility
Cross the Dehradun like chardham, chandigarh, Chennai, Mumbai, delhi,
Noida, Saharanpur and more hill station. They also provide the packages
of holidays. It is famous for his best service and reasonable price.

Company is Uttrakhand leader for taxi travel. it promise your safety,

reliable and cost-effective taxis all over India. Our mission is to simplify
9
outstation travel for all Indians and we welcome your suggestions for
improvement always. Founded by Mr. TP Singh. Anitej Services Pvt Ltd
refers to GTS. GTS vision is for easier, safer, reliable like 'flipping a
switch' outstation travel for all customers. We strive to provide the best
Pick/drop & outstation taxi travel experience at the lowest possible rates
with a provider partner network that is whetted to meet those expectations
for a good service. Using technology, we at GTS believe that the intercity
travel space can be vastly re-organized to ensure better experiences for
consumers, taxi operators and drivers. The founders and the team at GTS
are constantly striving to re-invent the cab booking space in We believe
in constant upgrade and would be very happy to receive any suggestions
or feedback.

Approach
Our mission is to simplify inter-city travel Welcome to GTS! GTS means
DELIGHT and JOY! Travelling with GTS, you will be overjoyed. For we
know what runs in your mind while booking a taxi: You need to search
for reliable inter-city taxi providers. You need to talk to at least 3-4 Car
Operators compare and get the one with the best price and reputation.
You must decide if that operator will provide good service and honor
time commitments. You must ensure if the car will be in good condition,
comfortable, commercially licensed with all the requisite permits. Finally,
you need to satisfy yourself if the driver will be well behaved,
knowledgeable, and experienced.
Privacy
Your privacy is very important to us. This Privacy Policy describes the
principles and practices that apply to Personal Information collected from
users of our services on our Site , in telephone or e-mail communications.
What we collect from our users

1. Name of the user

 2. Contact Information like Email,Phone, Address
 3. Other Information like surveys/Feedback
How these info used by the company

The collection of information shall depend upon on the User's use of GTS
CAR RENTAL services
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For Internal Record Keeping
We may use the information to improve our products and services.
We may periodically send promotional emails and messages about new
products, special offers or other information which we think you may find
interesting using the email address and phone number which you have
provided.
if you do not want to receive any promotional email and messages you
can unsubscribe or contact us at 8191-00-8191 or email us at
[email protected].
Security

We are committed to ensuring that your information is secure. In order to

prevent unauthorized access or disclosure we have put in place suitable
physical, electronic and managerial procedures to safeguard and secure
the information we collect online.
As transmission of data over the Internet or any wireless network cannot
be guaranteed to be 100% secure, GTS CAR RENTAL shall strive to use
commercially acceptable means to protect User's information. GTS CAR
RENTAL hereby states that it does not guarantee the security of any
information transmitted to or from the website, and is not responsible for
the actions of any third parties that may receive any such information.
Links
When you click on a third party’s link from our Site, or from an ad for a
third party served by one of your service providers, you will enter that
third party’s site, over which we have no control. We are not responsible
for third party sites. You should carefully review the privacy statements
of any other sites you visit, because those privacy statements will apply to
your visit to such other sites and may be very different from this Privacy
Policy
Social Plug-Ins
Our Site includes social plug-ins, such as the Facebook or Twitter button,
and gives you the option to post information about your activities on our
Site to your social media accounts. These features may collect your IP
address, which page you are visiting on our Site, and may set a cookie to
enable the feature to function properly. Social plug-ins are either hosted
by a third party or hosted directly on our Site. Your interactions with
these features are governed by the privacy policy of the company
providing them.

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Permissions used in the application:

 Receive SMS
 Read SMS
 Use credentials
 Read External Storage
 Read and Write Contact
We are using contacts in order to promote our app so that we can
target a larger audience.

 Get Accounts
 Access Location(Fine and Coarse)
 Internet permission
 Write External Storage

Changes to the Privacy Policy

We may change or supplement this Privacy Policy from time to time. We

may also undergo a change of ownership. Privacy Policy changes will
apply to the information collected from the date we post the revised
Privacy Policy to our Site, as well as to existing information held by us. If
we decide to change this policy in a material way, we will obtain the
necessary consents required under applicable privacy laws if we seek to
collect, use or disclose Personal Information for purposes other than those
to which consent has been obtained, unless otherwise required or
permitted by law. If we make any material changes we will notify you by
e-mail (at the e-mail address specified in your account) or by means of a
notice on our Site prior to the change becoming effective. If any proposed
change is unacceptable to you, you may request that we close your
account, as described in How to access, modify or close your account.
Terms of Use:
1. The customer shall pay the car rental fare as per the applicable rates
and payment schedules mentioned on the website/Mobile App of GTS
CAR RENTAL at the time of booking. The customer shall also pay
parking charges, toll charges, state tax and any other fee or levy
presently payable or imposed hereinafter under applicable law/s for
availing the car rental services.

2. GTS CAR RENTAL shall not be responsible or liable for any loss or
damage, howsoever caused or suffered by the Customer arising out of
12
 the use of car rental service offered by GTS CAR RENTAL or due to
the failure of GTS CAR RENTAL to provide services to the Customer
for any reason whatsoever including but not limited to the Customer's
non-compliance with the services' recorded voice instructions,
malfunction, partial or total failure of any network terminal, data
processing system, computer tele-transmission or telecommunications
system or other circumstances whether or not beyond the control of
GTS CAR RENTAL or any person or any organization involved in the
above mentioned systems.

3. Upon the demand of GTS CAR RENTAL, the Customer shall

indemnify GTS CAR RENTAL from/ and against/ and in respect of
any/ or all liabilities, losses, charges and expenses (including legal
fees and costs on a full indemnity basis) claims, demands, actions and
proceedings which GTS CAR RENTAL may incur or sustain directly
or indirectly from/ or by any reason of/ or in relation to the use or
purposed use of the Services provided by GTS CAR RENTAL.

4. GTS CAR RENTAL is hereby authorized to use the location-based

information provided by any of the telecommunication companies
regarding the use of the mobile phone by the Customer for making a
taxi booking. However, the location-based information will be used
only to facilitate and improve the probability of locating a taxi for the
Customer

5. GTS CAR RENTAL shall be entitled to disclose the particulars of the

Customer/s in possession of GTS CAR RENTAL to all companies
controlled by GTS CAR RENTAL or any of its authorized chauffeurs
or any government body as required by the law/ or by

6. GTS CAR RENTAL shall not refund amount in his bank account in
case of cancellation or booking not done from our end then the
company will refund his amount on GTS wallet .

7. directive/ or a request from any government body or to any third party

deemed fit and proper by GTS CAR RENTAL, in its absolute
discretion.

8. GTS CAR RENTAL encourages all its customers to take full

responsibility of their luggage/belongings. In case of any loss, from
the taxi during the journey, GTS CAR RENTAL shall endeavor to
locate the lost luggage/belongings on a "best-effort" basis but GTS
CAR RENTAL shall not be held responsible for such loss or damage
13
9. If the Customer leaves any luggage/belongings/goods in the taxi or
has any complaint in respect of the services or the use of the taxi, the
Customer shall make a complaint in writing to GTS CAR RENTAL
within 24 hours from such usage

10. In case of any dispute arising between the Customer and GTS CAR
RENTAL, the dispute shall be referred to an Arbitrator, appointed by
GTS CAR RENTAL in its sole discretion. The Arbitrator so appointed
by GTS CAR RENTAL shall act in conformity with the Arbitration
and Conciliation Act, 1996. The award so passed by the Arbitrator
shall be binding upon the Customer as well as GTS CAR RENTAL.
The courts of Dehradun, Uttarakhand shall have the sole and exclusive
jurisdiction in respect of any matters which may be instituted before
any court of law, arising from the use of the services offered by GTS
CAR RENTAL.

11. GTS CAR RENTAL shall be entitled to add, vary or amend any or all
of these terms and conditions at any time at its sole discretion and the
Customer shall be bound by such addition, variation or amendment
incorporated/made in these terms and conditions with effect from the
date set forth by GTS CAR RENTAL. The terms and conditions shall
be available on GTS CAR RENTAL's website namely
www.gtscab.com either mobile app

12. GTS CAR RENTAL shall be entitled to record all the calls made to
the call center of GTS CAR RENTAL for quality and training
purposes.

13. Vehicles registered with GTS CAR RENTAL may be continuously

tracked by GTS CAR RENTAL using GPS/Mobile APP for security
reasons or for reasons deemed fit and proper by GTS CAR RENTAL.

14. By logging on the Account Access service on GTS CAR RENTAL's

websites/Mobile App, the User/customer hereby authorizes GTS CAR
RENTAL and its agents to access third party sites, including that of
Banks and other payment gateways, designated by them or on their
behalf for retrieving the requested information. While registering, the
User will choose a password and the user is responsible for
maintaining the confidentiality of the password and the account. The
User is fully responsible for all the activities that may take place
whilst using their password or account. It is the duty of the User to
notify GTS CAR RENTAL immediately in writing or mail of any
14
 unauthorized use of their password or account or any other breach of
security. GTS CAR RENTAL will not be liable for any loss that may
be incurred by the User as a result of unauthorized use of a customer's
password or account, either with or without his/her knowledge. The
User shall not use anyone else's password at any time.

15.The User shall request GTS CAR RENTAL for any refund/s against
the unutilized or 'no show' cab booking for any reasons within 24
hours from the hour of departure. Any applicable refunds would
accordingly be processed as per the defined policies of GTS CAR
RENTAL, it may take up to one week to get a refund as per the bank
norms/Process. No refund would be payable for any requests made
after the expiry of 24 hours as mentioned above and all unclaimed
amounts for such unutilized or 'no show' booking shall be deemed to
have been forfeited.

16.GTS CAR RENTAL may send booking confirmation, itinerary

information, cancellation, payment confirmation, refund status,
schedule change or any such other information relevant for the
transaction, via SMS or by voice call on the contact number given by
the User at the time of booking; GTS CAR RENTAL may also contact
the User by voice call, SMS or email in case the User couldn't or
hasn't concluded the booking, for any reason what so ever or to know
the preference of the User for concluding the booking and also to help
the User for the booking. The User hereby unconditionally consents
that such communications via SMS and/ or voice call by GTS CAR
RENTAL

17.The User warrants that the User shall abide by all such additional
procedures and guidelines, as modified from time to time, with respect
to the use of GTS CAR RENTAL's services. The User further
warrants that the User shall comply with all the applicable laws and
regulations regarding the services provided by GTS CAR RENTAL.

18.Unless explicitly provided by GTS CAR RENTAL, any specific

service or deliverable, obtaining sufficient insurance coverage shall be
the obligation/option of the User and GTS CAR RENTAL shall not
accept any claim/s arising out of such contingencies.

19.Insurance cover, if any provided as a part of the service/ product by

GTS CAR RENTAL shall be based on the terms and conditions of the
insuring company. The User shall contact the insurance company
directly for any claim/s or dispute/s which may arise out of such
15
 insurance cover. GTS CAR RENTAL shall not provide any express or
implied undertakings for acceptance of the claims by the insurance
company.

Cancellation Policy
The customer must be agreed as well as acknowledged that there shall be
no money refundable after canceling the cab before it is the reporting
time. There will be a partial deduction if the trip has been canceled before
an hour of the trip to be scheduled. The amount deducted will be
convenient and the deducted amount is considered to be the advance or
preauthorization. Moreover, the company shall be entitled at any time
without giving any reason or prior notice to terminate or cancel your
booking. It is preferred to cancel the booking of the cab before an hour of
the scheduled pickup as it can be done over the phone. Cancellation of the
particular booking ID is what that should be kept in mind. The customers
should be agreed as well as acknowledged that there will be no risk but
using the services of GTS CAR RENTAL at their own risk. All kinds of
warranties and representations are disclaimed by GTS CAR RENTAL
whether through expression or implication in order to attain suitability,
merchantability, fitness, condition of the services being offered by GTS
CAR RENTAL. GTS CAR RENTAL is exclusive of all kinds of
liabilities that have been permitted by the law.
Refund
The process for the refund will be initiated within 7 working days.
Cashback terms
Cashback will be optional whether it is for referrals or new registration.

Travel Speciality
Car Rental Delhi
Book the cheapest cabs in Delhi at GTS car rental. Plan your next trip and get the best
deals at taxi booking all along with the complete customer felicitated services. GTS
Car Rental is the most prestigious name in the list of cab service, taxi service or car
rental service in Delhi, India. Since the time of our establishment, we have earned
the reliability in providing the best car rental service. Entitled as to be the most
reliable car rental service provider, we feel proud to stand in our individuality with the
aim of bringing you the best in traveling and pleasure in time. Book a taxi to travel
anywhere in Delhi, India, we provide our services in 
Delhi, Agra, Chandigarh, Jaipur, Haridwar,  Dehradun  and Roorkee are some of
the top listed names in portfolios where our taxi service has been escalated well.You
can simply hire a cab, sit anywhere around the nation you only need to go through
16
the online taxi booking procedures such as using our GTS Mobile app or visit our
websites cab booking page. This is all as simple as well to book a cab online and
enjoys the best ride of your lifetime.

The moment you think of choosing the convenience for your trip or travel; takes you
to choose the best car rental service Delhi, but sometimes, it can be dependent on your
preference if you don’t put the taxi service in your budget but goes with bus or
anything else. Anywhere in India, if you choose to visit in then you will find a vast
number of places where you can adore the exceptional beauty of the place.
Empowered with anything like historical monuments, ancient culture & religion and
modern lifestyle; the place has always become a complete package of admiring stuff
that anyone would love to admire once in his or her whole life. Now, in that way, if
you don’t want to spend more on the convenience so, make sure that you are
choosing the convenience that would save your money and give you the quality ride
too. Options come in the most affordable and cheap car rental service in which hiring
a cab can also give you the good save of your money by providing reliability and
comfort in a taxi service. If you choose to travel India sitting in a car, enjoy the ride:
can bring you the journey at your own comfort. So, don’t forget to go with
reliable car rental service for getting the best and affordable taxi deals in Delhi.
Wherever you will choose to visit, wander or travel: requires the best convenience
that suits you the best with all your requirements. We offer complete customer care in
a way to provide car rentals at the most affordable rates & quality service. We give
our service to every individual that suits their requirement. So, let just brief you the
entire facility and service at GTS and let you know what actually comes under the
best car rental service.

Online Cab booking Available

Anyone can book a taxi in a very easy manner. Book a taxi to reach your doorstep by give a call
@ 8191-00-8191 or download GTS Mobile App!

Low-cost car rentals service provider in Delhi

Car rental fares are all in your budget. No need to be worried regarding the pricing: this will go
through according to your requirements & preferences.

24*7 Customer Support

From your booking order to the last minutes of your journey, we will be available to help you
everywhere whether to reach you the exact location at an exact time.

AC/Non AC Car for rent in Delhi

Give your choice where it’s mandatory. The warm weather or cold weather takes you up with
the preferences of AC cars or Non AC Cars in Delhi. Thus, I will suggest you to Book a car after
considering the weather of the place you are going to visit.

17
Good space for luggage
Carrying all your essentials in bags requires good space in which the staff could be fit in. Thus, all
according to your plans, book a taxi which could give you a good space for luggage so you could
not forget anything important in your home.

Offers on Car Rental

GTS offers you to get cashback on online taxi booking. Using a GTS Mobile App can give heavy
cashback on your taxi booking in all over India. Wherever you are planning to visit or travel,
don’t forget to go consider this heavy cashback because Nothing is Better than getting cash
back on hire a taxi. Even if you are a new user of our Car Rental Service, so you can enjoy the
first ride paying no money. That means you can Enjoy The Free Ride on your first online cab
booking in Delhi. We deal with every customer's felicitated features and facilities that could
assure you to get the worth in hiring a cab. Wherever you go, wherever you visit; your booking
cab can reach anywhere. This convenience at the cheapest rates will give an enjoyable journey
without any inconvenience.

Winter Vacations
Winter season- The month of December, January, and February, when it comes about to take a
pleasant winter vacation, planning a tour or a trip and have an amazing time with your loved ones!
How does it really feels, if you are going out in that chilled temperature, taking the selfie and
mesmerizing the overwhelming beauty of nature?
Feeling willing to go through?
It's obvious to feel the same in a way to bring unforgettable memories of your life. Everyone
wants to enjoy and to be free from every kind of concerned matters of daily life structures. Now, if
it's crossing your mind to plan a trip, then go for it. If you went to the conclusion of reaching the
different places in Winter Season then, I consider you to go below being more acknowledged with
the mandatory matter comes up with choosing best destinations to visit to spend Winter Vacations
in India accompanied with Hire a top-notch Car Rental Service in India.
Let just start with the destination which you should choose to go for spending your Winter
Vacations. There is a large number of an exciting and beautiful site where you can turn your
passing time into new revelations. Revelations which will make your vacations be more exciting
and an epic affair. Find the top 10 listed names below which has been reviewed as the most visited
destination in India in winter.

1. Auli, Uttarakhand
2. Patnitop, Jammu and Kashmir
3. Lucknow, Uttar Pradesh
4. Ranthambore, Rajasthan
5. Kaziranga National Park, Assam
6. Thrissur, Kerala
7. Murudeshwar, Karnataka
8. Chennai, Tamil Nadu
9. Mangalore, Karnataka
10. Goa

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Now, next matter rises with accommodation like booking a Taxi in India. Use Online Cab
Booking Service in India to move from one place to another. Your chosen destination will not be
that far if you will do instant booking an online android app of car renting in India.
GTS car rental service in India will let you be free from everything that keeps you worried about
to go through the trip or tour planning in India.
The leading company in online cab bookings in India, GTS offers great and affordable prices fares
on quality service. GTS car rental service gives Customer friendly experience with an online cab
booking service in India. In just a click, you can book your preferred cab and enjoy the high-value
rental experience.
GTS Car Rental Service provides a huge variety of taxis for one-way car rental service and rounds
off. Best ever rates for one-way and return trip taxis from anywhere located across the country.
Hire Cab Today! And Find the latest rental prices on luxury, economy, and family rental cars with
GTS. Book your cabs with the leading car rental service provider in India. Superior Customer
Service provider gives the best car rental deals at various locations around the nation.
We welcome you if you choose our service from anywhere in India. We will explore all new and
exciting destinations to check out in the season of winter.
Check out our list with an offbeat combination of destinations to visit in India in the month of
December.
December, when the chilled atmosphere will let you bring some lifetime memorable affairs.

Summer Vacations
If you are willing to take a trip or plan a tour in India, then go for the best cab service to make a
memorable time and comfort. With an opportunity of Summer Holidays, tourists like to go for the
place where they can beat the heat. Find some amazing destinations & enjoy the hot months
within a comfortable zone of your hired taxi service.
The weather will offer you to make your best time with a spectacular perspective of hot weather.
Plan a trip, pack your bags, hire a taxi, go get ready and make the best time of your life. Below are
the popular choices of tourists and the top listed names with the search results that tourists prefer
to go in order to sight an exotic, cool and sun-soaked regions across India.

Rishikesh, Uttarakhand
In the foothills of the Himalayas, Rishikesh is the gateway to the upper Garhwal district. Way to
reach Char Dham pilgrimage (Badrinath, Kedarnath, Gangotri & Yamunotri). Rishikesh is a
spiritual kind of destination where one can experience all kind of adventurous activities
accompanying with an option of Yoga and Meditation.

Manali, Himachal Pradesh

Nestled with the mesmerizing hilly regions, Manali becomes everyone’s favorite where they
love to enjoy the by sightseeing the beauty of nature. Usually, in the season of snowfall, Manali
comes in the top of anyone’s list if it's about to spend the quality time with their loved ones.
Beautifully surrounded with the spellbinding and magnificent landscapes, flower gardens and
snow-capped mountains works as a magnetic power to attract a rush of tourists or pilgrims in
order to give them the unforgettable experience of their lifetime.

Nainital, Uttarakhand
Nainital, a beautiful destination being blessed with picturesque surroundings attracts a large
number of people to enjoy quality time with their loved ones. The place has been considered as
one of the top listed tourist’s attraction. The region with the most beautiful lakes and major
attractions like Naina Devi temple gives must kind of reason to visit Nainital. Nainital offers you
19
must visit places including Mall Road, Naina Devi Temple, Eco Cave Gardens, and Snow View
Point etc.
One of the best ways to go through all those mesmerizing stuff has to choose a quality Cab
Service in India. GTS Car Rental Service provides a huge variety of taxis for one-way car rental
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a Cab in India.
Our car rental service in India providing cabs for airport taxi, airport cab, and railway station pick
and drop service in India. At the most affordable rates, one can choose the one cab which is
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Local Drop Pick

GTS car rental service in India offers local pick and drop facility. From Airport and railway
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and drop facility are available for booking a car at GTS car rental.
Things to keep in kind while hiring a cab for pick and drop facility is:

1. Time allowance for the Pickup or Drop will be at least one hour after the location
2. Provide the Complete location address.
3. Ones contact number must be given to ensure the fulfillment of your request.
4. 24 hours advance booking would be more convenient for the pick and drop facility
5. The number of travelers per reservation should be 4 according to the seating capacity limitations that
can be picked up and brought to the location.

We have a large number of options available here spick and span when pick and drop facility at
the airport or railway station permitting you to choose the one which goes best for you. Try your
next Ride with GTS Car Rentals!
Book a Taxi with just simple steps for your next vacation or trip.
Visit gtscab.com – and be sure to book a cab using GTS App for getting 3000 cash back or you
can also call us @ 8191-00-8191
The leading company in online cab bookings in India, GTS offers great and affordable prices fares
on quality service. GTS car rental service gives Customer friendly experience with an online cab
booking service in India. In just a click, you can book your preferred cab and enjoy the high-value
rental experience. GTS Car Rental Service provides a huge variety of taxis for one-way car rental
service and rounds off. Best ever rates for one-way and return trip taxis.
Hire a Cab Today! And Find the latest rental prices on luxury, economy, and family rental cars
with GTS. Book your cabs with the leading car rental service provider in India. Superior Customer
Service with taxi rental that deals with the best pricing for the various locations around the nation.

Outstation Cab Services

GTS Car Rental Service Provider in Delhi offers to hire a cab at your own affordable rates. Book a
Local & Outstation cab service in all over the country and get best deal on Outstation Taxi
Services in Delhi.
Our taxis are well maintained for your suitable traveling experience which will make your trip
memorable. Most reliable Outstation Taxi Service in Delhi offers quality service for Car Rental.
Choose GTS car rental service in Delhi to any place with your suitable schedules. We believe in
providing customer friendly Outstation Taxi Service at the most affordable rates. Our services are

20
always guaranteed for the outstation taxi service and it’s simple as well to go for the method
of booking outstation taxi service at GTS Car rentals.
You only need to go as per your requirements by choosing the car you want, the destination you
want to reach, etc. With an assurance of delivering quality outstation taxi service to the customers,
we provide various options for Outstation Car Rental at GTS. Customers can choose from options
like luxury vehicles, the vehicle of 6 seaters, 6+ seater, Package Type, City, Pick update, etc.
All that depends on your own necessities that which are actually required if you are going for a
trip or tour anywhere across the country.
Our well-trained drivers will let your journey to be more relaxed and comfortable along with
enjoying the way to your destination.
Using GTS Android app, you can easily go for outstation taxi service booking. For any queries on
outstation taxi booking, you can also contact us @ 8191-00-8191. Hire Outstation Cab Today!
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nation

1. Airport Pick Drop

2. Taxi for Corporate
3. One way cab service
4. Round trip cab service

Airport Pick And Drop Service

Book a taxi to travel anywhere in all over the country, use a GTS mobile app and hire a car as per
your requirements. We are here at GTS Car Rentals facilitated with the Airport Pick and Drop
service and bring you a comfortable and a hassle-free transportation in Delhi. We make all
comforts and conveniences at your own choices, you can choose it whether you prefer to be the
most luxurious car or a cab at your affordable rates.
You can explore more about the Airport pick and drop facility such as the packages we are
offering. Airports pick and drop facility has their different packages available according to the
customer’s requirement.
For your complete Airport pick and drop convenience avail the GTS Car Rentals Service. Whether
you are going for a business tour or a holiday trip, you can simply contact us to get the best and
most modern Airport Pick and Drop facility at the affordable rates. We provide best car rental
service for the Airport Pick Drop facility, Booking Taxi rental or hire a cab for all your Airport
Pick and Drop facility. We will be available for you in order to stand on our commitment to give
you 24 hours of customer support while booking a taxi for Airport Pick and Drop service.
GTS Car Rental Service Provider in Delhi offers you to hire a cab at your own affordable rates.
Book a Local & Outstation cab service in all over the country and get the best deal on booking a
Taxi in Delhi. Our taxis are well maintained for your suitable traveling experience which will
make your trip memorable with an ease of covering a long distance journey. Most reliable Cab
Service in Delhi delivers quality service for Car Rental. Choose GTS car rental service in Delhi to
move from one place to anywhere. Facilitated with the customer friendly taxi service in Delhi,
GTS Car Rentals takes you through the easiest way of online taxi booking, choose everything you
require and we will bring you the best as it could be possible.

21
Services being introduced as to travel within Delhi, Local Pick and Drop Facility, Airport Pick
and Drop Service, Railway Station Transfer, Outstation Taxi Service, Taxi for corporate. 24 hours
customer support will be available @ 8191-00-8191

Cab Services For Corporates

GTS car rental service provider is always been at the top in order to provide an excellent corporate
car rental services at the most competitive rates to the customers. We offer professionally
personalized service to corporate car rental in all economy but at your own suitable rates on
premium and luxury car rental choices.
We provide affordable taxi service for Corporate Car Rentals for Business; we have different
options which will go best according to your requirements. We provide 24 hour customer support
before, during, and after your tour, we will meet up with all your requirements in order to give
special professional taxi service for corporate. Our taxi service for corporate are available at very
reasonable prices, we do offer the best and reliable taxi service for corporate in all over the
country. We help you to choose from multiple options available for booking a cab. From
anywhere or anytime, you can book a taxi for corporate by using GTS Mobile App and the taxi
will be at your door!
GTS Car Rental Service Provider in Delhi offers you to hire a cab at your own affordable rates.
Book a Local & Outstation cab service in all over the country and get the best deal on booking a
Taxi in Delhi. Our taxis are well maintained for your suitable travelling experience which will
make your trip memorable with an ease of covering a long distance journey. Most reliable Cab
Service in Delhi delivers quality service for Car Rental. Choose GTS car rental service in Delhi to
move from one place to anywhere. Facilitated with the customer friendly taxi service in Delhi,
GTS Car Rentals takes you through the easiest way of online taxi booking, choose everything you
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One Way Cabs Service

GTS Car Rental now comes up in the list with the One Way Taxi Service in Delhi. All over the
country, you can easily book a cab for one way travel service. Use the GTS Mobile App and book
a taxi of your own choice. We assure you to offer you the top-notch One-way taxi service for your
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outstation taxi service, Railway transfer, round trip, etc all across the major cities in Delhi. Book a
one-way taxi at GTS Car Rentals and reach your destination with ease of optimal time.
GTS Car Rental Service Provider aims to provide you the best taxi service with the most
affordable fares for your one-way travel. Now, try your next ride with GTS Car Rentals. You can
go through the given contact number or download the GTS Mobile App! GTS Car Rental Service
Provider in Delhi offers you to hire a cab at your own affordable rates. Book a Local & Outstation
cab service in all over the country and get the best deal on booking a Taxi in Delhi. Our taxis are
well maintained for your suitable traveling experience which will make your trip memorable with
an ease of covering a long distance journey. Most reliable Cab Service in Delhi delivers quality
service for Car Rental. Choose GTS car rental service in Delhi to move from one place to
anywhere. Facilitated with the customer friendly taxi service in Delhi, GTS Car Rentals takes you
through the easiest way of online taxi booking, choose everything you require and we will bring
you the best as it could be possible.

22
Round Trip Cab Service
Book a round trip cab from Delhi anywhere else at the most affordable rates for a quality service.
GTS Car Rental Service Provider in Delhi offers you to hire a round trip cab service at your own
affordable rates. Book round trip cab from anywhere and anytime all across the city and get the
best deal on booking a Round trip Taxi in Delhi. Our taxis are well maintained for your suitable
traveling experience which will make your trip memorable with an ease of covering a long
distance journey. Most reliable Cab Service in Delhi delivers quality service for Car Rental.
Choose GTS car rental service in Delhi to move from one place to anywhere. Facilitated with the
customer friendly taxi service in Delhi, GTS Car Rentals takes you through the easiest way of
online taxi booking, choose everything you require and we will bring you the best as it could be
possible.
The leading company in online cab bookings in Delhi, GTS offers great and affordable prices
fares on quality service. GTS car rental service gives Customer friendly experience with an online
cab booking service in Delhi. In just a click, you can book your preferred round trip cab and enjoy
a high-value rental experience.
GTS Car Rental Service provides a huge variety of taxis for round trip accompanying with the
Best ever rates for round trip taxis from Delhi.
One of the best ways to go through all those mesmerizing places; one has to choose the round trip
Cab Service in Delhi. GTS Car Rental Service provides a huge variety of taxis for round trip car
rental service and off trip round taxis from Delhi. With all those reliability, we offer cheapest or
low rates at booking a Taxi in Delhi.
Our car rental service in Delhi also providing airport and railway station pick and drop facility in
Delhi. At the most affordable rates, one can choose the one cab which is suitable as per their
requirement to bring in with the cheap and best cab service in Delhi.
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customers.
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For Booking: Call us @ 8191-00-8191 or use GTS mobile app to book a round trip cab from
anywhere or anytime.

23
 Financial Planning and Forecasting

Financial Planning and Forecasting is the estimation of value of a

variable or set of variables at some future point. A Forecasting exercise is
usually carried out in order to provide an aid to decision “ making and
planning in the future. Business Forecasting is an estimate or prediction
of future developments in business such as Sales, Expenditures and
profits. Given the wide swings in economic activity and the drastic effects
these fluctuations can have on profit margins, business forecasting has
emerged as one of the most important aspects of corporate planning.
Forecasting has become an invaluable tool for business to anticipate
economic trends and prepare themselves either to benefit from or to
counteract them. Good business forecasts can help business owners and
managers adapt to a changing economy.

Financial planning and forecasting represents a blueprint of what a firm

proposes to do in the future. So, naturally planning over such horizon
tends to be fairly in aggregative terms. While there are considerable
variations in the scope, degree of formality and level of sophistication in
financial planning across firms, we need to focus on common elements
which include Economic assumptions, Sales forecast, Pro forma
statements, Asset requirements and the mode of financing the
investments.

In general usage, a financial plan can be a budget, a plan for spending and
saving future income. This plan allocates future income to various types
of expenses, such as rent or utilities, and also reserves some income for
short-term and long-term savings. A financial plan can also be an
investment plan, which allocates savings to various assets or projects
expected to produce future income, such as a new business or product
line, shares in an existing business, or real estate.

Financial forecast or financial plan can also refer to an annual projection

of income and expenses for a company, division or department. A
financial plan can also be an estimation of cash needs and a decision on
how to raise the cash, such as through borrowing or issuing additional
shares in a company.

24
While a financial plan refers to estimating future income, expenses and
assets, a financing plan or finance plan usually refers to the means by
which cash will be acquired to cover future expenses, for instance
through earning, borrowing or using saved cash.

Corporations use forecasting to do financial planning, which includes an

assessment of their future financial needs. Forecasting is also used by
outsiders to value companies and their securities. This is the aggregative
perspective of the whole firm, rather than looking at individual projects.
Growth is a key theme behind financial forecasting, so growth should not
be the underlying goal of corporation creating shareholder value is
enabled through corporate growth.

The benefits of financial planning for the organization are Identifies

advance actions to be taken in various areas Seeks to develop number of
options in various areas that can be exercised under different conditions.
Facilitates a systematic exploration of interaction between investment
and financing decisions. Clarifies the links between present and future
decisions.Forecasts what is likely to happen in future and hence helps in
avoidin surprises. Ensures that the strategic plan of the firm is financially
viable. Provides benchmarks against which future performance may be
measured. There are four commonly used methods for preparing the pro
forma financial statements. They are:

1. Percent of Sales Method

2. Budgeted Expense Method.
3. Variation Method.
4. Combination Method.

Percent of Sales Method

The percent of sales method for preparing pro forma financial statement
are fairly simple. Basically this method assumes that the future
relationship between various elements of costs to sales will be similar to
their historical relationship. When using this method, a decision has to be
taken about which historical cost ratios to be used.

Budgeted Expense Method

The percent of sales method, though simple, is too rigid and mechanistic.
For deriving the pro forma financial statements, we assume that all
elements of costs and expenses bore a strictly proportional relationship to
sales. The budgeted expense method, on the other hand calls for
25
estimating the value of each item on the basis of expected developments
in the future period for which the pro forma financial statements are
prepared. This method requires greater effort on the part of management
because it calls for defining likely developments.

Variation Method

Variation method on the other hand, calls for estimating the items on the
basis of percentage increase or decrease of comparing with the same item
of base year. It is quite flexible throughout the future period. This method
is not like budgeted method, the value estimating for an item under this
method is entirely dependent on the historical data.

Combination Method

It appears that a combination of above explained three methods works

best. For certain items, which have a fairly stable relationship with sales,
the percent of sales method is quite adequate. For other items, where
future is likely to be very different from the past, the budgeted expense
method or variation method is eminently suitable. A combination method
of this kind is neither overly simplistic as the percent of sales method nor
unduly onerous as the budgeted expense method or variation method.

26
 Assumptions

The method used for this study is combination method which eminently
works best for an organization.

The assumptions made for forecasting are as follows:

1. The sales are expected to increase by 20% every year.

2. All expenses are estimated under percentage of sales method.
3. Tax is estimated on the basis of profit.
4. Proposed Dividend to be increased by Rs. 5,000,000 every year.
5. Dividend tax is payable on the basis of proposed dividend.
6. Secured and unsecured loans to be decreased by 5% every year.
7. Tax liability on percentage of sales method.
8. Fixed assets are expected to increase by 2% every year.
9. Work-in-progress of capital is expected to decrease by 10% every
year.
10. Investments are expected to increase by 5%.
11. Current assets like inventories and sundry debtors are expected to
increase
by 2% every year.
12. Cash and it equivalents on the basis of percentage of sales method.
13. Loans and advances are estimated to increase by 5% every year.
14. Current liabilities are expected to increase by 5% every year.
15. Provisions are expected to increase by 10% every year.

27
 Analysis of Profit & Loss Account
Sales

The firm has sales as Exports as well as Domestic. The total sales include
59.8% of Export sales, 39.7% of Domestic sales and 0.4% of second
sales. The sales are forecasted to increase by 20%p.a in the coming three
years taking 2008-09 as base year This shows that company is more
Export oriented than the Domestic Sales.

Expenditure

Raw Materials Consumed on which company spend most of its working

capital consists of 39.3% of Total Sales Value. This shows that there is a
heavy expenditure on raw materials. It is forecasted to increase by 20% in
the coming three years.
The company should try to optimize the expense on raw material, as in
the inflationary economy capital blocked with raw material will lose its
value in the subsequent year which can be utilized in other profitable
investments.

Cost of Human Resources

The cost of Human Resources for the firm is 11.1% of the Total Sales
Value which is quite satisfactory. This is expected to increase by 20%
which means that company is expected to give an increment in wages as
well as recruit more employees.

Other Office Expenses

Other Office Expenses include Electricity Charges,Processing Charges,

Consumables and Repair & Maintenance, rent, salary of employee. The
other expenses of the company are quite high which is needed to be
controlled.

Administrative Overheads

This includes Rent, Repairs and Maintenance, Insurance Charges, Legal

and Consultancy Fees and Audit Fees.Administrative Overheads
constitutes about 5.5% which is quite satisfactory. It is also expected to
increase by 20% in the coming three years.

Selling and Distribution Overheads

28
The Selling and Distribution overheads include Advertisement Charges,
Salary for sales executives, Carriage Outwards, Commission, Discount
and Incentives. These expenses constitute 7.5% of Total Sales Value. Out
of the total selling and distribution expenses, the expense on commission
discount and carriage is quite high which should be minimized and the
same amount can be used for Advertisement to promote brands of the
company.

Finance Charges

Finance charges which mainly includes interest on loans from Banking

and Non-Banking Corporations. It constitutes 11.2% of Total Sales Value
which is quite high, which shows that, company has high value of debt in
comparison to its equity.

Dividend

The trend for the dividend shows that it is increasing by Rs50 Lakhs
Every Year which means company is able to attract its investor by
announcing dividend timely. This also shows that the company has a
reasonable operating profit. This is good indication for the company.

29
 Analysis of Balance Sheet

Sources of Funds
Share Capital

A share is the unit into which the capital of the company is divided. The
promoters take futuristic look and decide on the maximum capital i.e.
Authorized Capital which is about Rs7.5Cr for the firm. The amount
actually paid by the shareholders is called paid-up-capital of the company
which is Rs5 Cr for the firm. The company has issued 2062650 Equity
shares and 2937350 Preference shares.

Reserves and Surplus

The Net Profit is increasing by 20% for the forecasted three years out of
which the retained amount after paying dividend is carried to Balance
sheet under Reserves and Surplus head. In ultimate analysis reserves
belong to shareholders. Therefore, the total amount due to the
shareholders constitutes the capital and reserves. The presence of sizeable
reserves in a balance sheet is an advantage as it adds to the financial
strength of the company.

Secured Loans

Secured Loans represent borrowings by the company against charging of

its specific assets.It is expected to decrease by 5% in coming three years.
This shows the firm is expected to utilize its Reserves and Surplus for its
operations and its dependence on secured loans has decreased.

Unsecured Loans

These include borrowings of the company without creation of any charge

on its assets. It is expected to decrease by 5% in coming three years. This
shows that the firm is expected to finance its short term needs by utilizing
own funds for its operations.

Deferred Tax Liability

According to the data, the company seems to postpone a huge amount of

taxes to the future years and the company is utilizing the same amount as
a source of fund for itself. As the Net Profit is increasing by 20% every
30
year it is also expected to increase by 20% in the future years.

Current Liabilities and Provisions

Current Liabilities include short-term liabilities of the company and the

provisions. The short-term liabilities include sundry creditors for Trade,
Expenses, and Capital Goods. It is expected to increase by 5% as the
operations of the company are growing but at the same time company is
able to pay its liabilities on time. The company is making the provisions
appropriate to the taxing policy of the company.

Application of Funds
Fixed Assets

As the company is expanding its business, the fixed assets like Land and
Buildings, plant and machinery of the company is expected to increase by
2%. The company has their own power plant which includes four
windmills. The company has separate production plants for yarn, knitting,
compacting, stitching and packaging. They have their own logistics for
domestic distribution.

Investment

The company is investing its surplus amount from retained earnings in

shares of Corporation Bank and South Indian Bank Ltd. The company has
200 Equity shares of Corporation Bank and 360 Equity shares of South
Indian Bank Ltd. The company has also invested in Tirupur Infrastructure
Bonds and Win Win Enterprises Pvt Ltd.

The company is expected to increase its investment by 5% p.a. for the

coming three years.

Current Assets

Inventories

Inventories constitute more than 50% of the total current assets. As the
Textile Industries has longer production cycles the firm needs to maintain
inventories but the management of inventories should be efficiently
31
carried out so that this investment does not become too large as it result
in blocked capital which could be put to productive use elsewhere. This is
of
greatest significance in the inflationary economy because of the
depreciation in the value of money. The inventories of the company are
expected to increase by 2% p.a. which is satisfactory with respect to
sales.

Sundry Debtors

Investment in receivables involves both benefits and costs. The extension

of trade credit has a major impact on sales, cost and profitability. Liberal
policy leads to larger debtors at the same time increase in sales. So the
company needs to have a standard credit policy to maintain a balance
between receivables and sales. The sundry debtors are expected to
increase by 2% which is quite satisfactory with respect to sales which are
increasing by 20%.

Cash and Bank Balances

According to the data, the cash and bank balances has increased by 20%,
which is a good indication in aspect of liquidity of the company. This is a
good sign for the creditors as it means company is able to meet its current
obligations.

Loans and Advances

According to the data, the cash and bank has increased by 20%, which
means company liquidity position is good enough and it is able to give
loans and advances to its subsidiary company for carrying its operations.

32
 DEBTORS MANAGEMENT

Anitej Service Pvt Ltd has a large proportion of the sales in cash and a
small amount of sales on credit. Although there is credit sales the credit
policies are very aggressive in nature and the company follows restrictive
measures.

There are 132 debtors for the financial year ending 31 st march 2020,
There are 26 debtors with an outstanding amount of Rs 40 lacs
for Noida division

Credit Policy

Discounting (or) Receivable purchase: The customers to whom the goods

are sold on credit, many of those receivables are discounted with the
banks. In other words the banks agree to purchase the company
receivables and later on the due date the company collects the amounts
from the debtors and pay them to the bank.
This facilitates the company with the earlier realization of funds and no
default risk.

Partly Credit policies: Under some circumstances the company also sells
goods on credit to its cash customers. It is purely a business call and this
happens rarely .It happens in the case of second sale. Under the following
circumstances the goods are offered on credit:

To clear period ending stocks which require the customer some period to
sell To sell old goods which are 180 days or more older Sometimes in
case an old customer is in some temporary financial trouble, then the
relation with customer forces to sell goods on credit.

33
 Operating Cycle & Cash Cycle

Operating cycle and cash cycle are two important components of working
capital management. Together they determine the efficiency of a firm
regarding working capital management.

Operating cycle refers to the delay between the buying of raw materials
and the receipt of cash from sales proceeds. In other words, operating
cycle refers to the number of days taken for the conversion of cash to
inventory through the conversion of accounts receivable to cash. It
indicates towards the time period for which cash is engaged in inventory
and accounts receivable. If an operating cycle is long, then there is lower
accessibility to cash for satisfying liabilities for the short term.

Operating cycle takes into consideration the following elements: accounts

payable, cash, accounts receivable, and inventory replacement.

The following formula is used for calculating operating cycle:

Operating cycle = age of inventory + collection period

Cash cycle is also termed as net operating cycle, asset conversion cycle,
working capital cycle or cash conversion cycle. Cash cycle is
implemented in the financial assessment of a commercial enterprise. The
more the figure is increased, the higher is the period for which the cash of
a commercial entity is engaged in commercial activities and is
inaccessible for other functions, for instance investments. The cash cycle
is interpreted as the number of days between the payment for inputs and
getting cash by sales of commodities manufactured from that input.

The fundamental formula that is applied for the calculation of cash

conversion cycle is as follows:

Cash cycle = (Average Stockholding Period) + (Average Receivables

ProcessingPeriod) - (Average Payables Processing Period).

34
 Inventory Receivabl Payable Operating Cash
Year Period e Period Cycle Cycle
Period

2016-17 88.03 41.91 56.69 129.94 73.24

2017-18 74.82 35.62 49.66 110.44 60.79

2018-19 63.60 30.28 43.49 93.88 50.39

Analysis
A short cash cycle reflects sound management of working capital. On the
other hand, a long cash cycle denotes that capital is occupied when the
commercial entity is expecting its clients to make payments. As per the
standard norm it should be less than 120 days for a textile industry. The
forecasted data shows that the efficiency of accessibility of cash for other
instances is good as it is low when compared with standard norms.

35
 Growth Rates
Firms generally state corporate goals in terms of growth rates. Growth is
often the central theme of corporate planning. It is year over year change
expressed in percentage. The emphasis on maximizing shareholder value
as the principal goal of the firm, the exertion of planners with growth
seems like riddling.

While firms are interested in growth, they may be reluctant to raise

external equity.

There are two growth rates to overcome this reluctance in the context of
long term financial planning. They are,

1. Internal Growth Rate.

2. Sustainable Growth Rate.

Internal Growth Rate

The internal growth rate is the maximum growth rate that can be achieved
with no external financing. This is the growth rate that can be sustained
with retained earnings, which represent internal financing.

The formula used to calculate internal growth rate is

Return on Plough back internal

Year Assets Ratio growth rate

2016-17 0.17 0.83 16%

2017-18 0.20 0.81 19%

2018-19 0.24 0.80 23%

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The data shows the internal growth rate for the forecasted year. It seems
that the firm will have fine internal growth rate in the upcoming years.
The firm is expected to have 16%, 19% and 23% for the year 2016-17,
2017-18 and 2018-19 respectively with no external financing
requirements.

Sustainable Growth Rate

The sustainable growth rate is the maximum growth rates that can a firm
can achieve without resorting to external equity finance. This is the
growth rate that can be sustained with the help of retained earnings
matched with debt financing, in line with debt equity policy of the firm.

This is an important growth rate because firms are reluctant to raise

external equity finance for the following reasons:

1. The dilution of control, consequent to the external equity issue, may

not be acceptable to the existing controlling interest.
2. There may be a significant degree of under pricing when external
equity is raised.
3. The cost of issue tends to be high.

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The formula used to calculate sustainable growth rate is

Return on Plough back Sustainable

Year Equity Ratio growth rate

2010-11 0.11 0.83 9.7%

2011-12 0.12 0.81 10.5%

2012-13 0.13 0.80 11.5%

Salary Components!
The data shows the sustainable growth rate of the firm for forecasted
year. It seems that the firm will have fine sustainable growth rate in the
upcoming years. The firm is expected to have 9.7%, 10.5% and 11.5% for
the year 2016-17, 2017-18 and 2018-19 respectively without resorting to
external equity requirements.

38
 HOW TO CALCULATE SALARY & CTC
Neha Mohanty | Salary | 0
1 May 2019
Terms like CTC, basic salary, gross salary, allowance, reimbursements,
tax deductions, provident fund, insurance, etc. often create confusion for
employees. In this blog, we have attempted to delineate all the terms
associated with the salary in order to make it simpler for you.

Read more to understand salary breakup and the various terms associated
with it.

You can also calculate in-hand salary with the help of this Take-Home
Salary Calculator.

CTC
CTC or Cost to Company is the total amount that a company spends
(directly or indirectly) on an employee. It refers to the total salary
package of the employee. CTC is inclusive of monthly components such
as basic pay, various allowances, reimbursements, etc. and annual
components such as gratuity, annual variable pay, annual bonus, etc.

CTC is never equal to the amount of take-home salary of the employee.

There are many components in the CTC that one does not receive as part
of take-home salary.

CTC = Gross Salary + PF + Gratuity

Let us now discuss common salary components:

Basic salary
Basic salary is the base income of an individual. It is a fixed part of one's
compensation package.

A basic salary depends on the employee’s designation and also the

industry in which the employee works.

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 Gross salary
Gross salary is the amount calculated by adding up one's basic salary and
allowances, before deduction of taxes and other deductions. It includes
bonuses, over-time pay, holiday pay, and other differentials.

Gross Salary = Basic Salary + HRA + Other Allowances

Net salary or take-home salary

Net salary or take-home salary is obtained after deducting income tax at
source (TDS) and other deductions as per the relevant company policy.

Net Salary = Basic Salary + HRA + Allowances - Income Tax -

Employer's Provident Fund - Professional Tax

Allowances
An allowance is an amount received by the employee for meeting service
requirements. Allowances are provided in addition to the basic salary and
vary from company to company. Some common types of allowances are
discussed below:

 HRA or House Rent Allowance: It is an amount paid out to

employees by companies for expenses related to rented accommodation.

 Leave Travel Allowance (LTA): LTA is the amount provided by

the company to cover domestic travel expenses of an employee. It does
not include the expenses for food, accommodation, etc. during the travel.

 Conveyance Allowance: This allowance is provided to employees

to meet travel expenses from residence to work.

 Dearness Allowance: DA is a living allowance paid to employees

to tackle the effects of inflation. It is applicable to government
employees, public sector employees, and pensioners only.

 Other such allowances are the special allowance, medical

allowance, incentives, etc.

Reimbursements
Occasionally, employees are entitled to several reimbursements like
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medical treatments, phone bills, newspaper bills, etc. The amount is not
received in the salary, but on submission of the bills, reimbursement is
given. Generally, there is an upper limit for every category of
reimbursement.

Employer Provident fund/EPF or Provident Fund

Provident fund is an investment both by the employer and the employee
each month, the lump sum amount of which acts as an employee's
retirement benefits scheme.

Provident fund contribution is mandatorily either of the following:

Case 1: Basic salary < 15000 (per month)
12% of the basic salary

Case2: Basic salary > 15000 (per month)

In this case the company has an option to either contribute 12% of 15,000
(i.e. 1800) or 12% of Basic salary.

It is directly deposited in the employee’s PF account. You can check your

balance here.
Hence, 12% of the basic salary gets contributed by the employee and
another 12% by the employer. Usually, the contribution from the
employer can only be seen in your offer letter and not in the payslip.
Contribution from your salary is called EPF and it can be seen in the
payslip. Contribution to the provident fund is mandatory for Indian
companies.

Public provident fund or PPF

PPF is a voluntary contribution by the employee and is completely
controlled by him/her. The employer has nothing to do with a PPF
account.

This amount is not mentioned in CTC or pay slips, however, if an

employee presents it as an investment for tax saving purpose, it will be
shown on Form 16.

People open PPF account for two main reasons - one is for tax saving
purpose and second for long-term investment. PPF provides 7.6% per
annum (compounded annually) and more importantly, both the
41
contribution and maturity amount is tax-free.

Do not confuse this with Employer's PF contribution.

Form 16
The company issues a Form 16 which contains the details about the salary
earned by the employee and the amount of tax deducted.
The taxpayer is required to submit Form 16 to file the Income Tax returns
every financial year. It acts as the proof of his/her income and tax paid to
the government.

Gratuity
Gratuity is the part of the salary that is received by an employee from the
employer for the services offered by the employee upon him or her
leaving the job.

Though an employee can receive the gratuity amount only after 5 years, it
will be deducted by the employer every year and hence it will get
deducted from your CTC.

Life insurance and health insurance

Many companies provide health insurance and life insurance to their
employees, the premium for which is borne by the employer and is
included in the CTC. Hence it has to be deducted while calculating your
take home salary.

Let us understand income tax and how it is related to salary income

and salary components.

Income tax
The tax levied on one’s personal income is called income tax. Usually, an
employee gets his or her salary after the tax deduction by the employer.
This process is called as Tax Deduction at Source (TDS). The deducted
tax amount is paid to the government by the company.

Professional tax
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 Professional tax is the tax charged by the state government in order to let
an individual practice a certain profession. The maximum amount
payable per year is INR 2,500. It depends on one’s monthly salary and
also on the state in which one works. The professional tax levied varies
from state to state in India.

Professional tax is not applicable in the following states and union

territories:

Arunachal Pradesh, Andaman & Nicobar, Chandigarh, Dadra & Nagar

Haveli, Daman & Diu, Delhi, Goa, Haryana, Himachal Pradesh, Jammu
& Kashmir, Lakshadweep, Nagaland, Punjab, Rajasthan, Uttarakhand,
and Uttar Pradesh.

Take a look at the professional tax slab in India (Statewise).

How to calculate your take-home salary?

We have provided some easy steps to help you calculate your take-home
salary, also known as in-hand salary and net salary.

In order to Calculate take-home salary, subtract the Income Tax,

Provident Fund (PF) and Professional Tax from the Gross Salary.
Step 1: Calculate gross salary
Gross Salary = CTC – (EPF + Gratuity)

Step 2: Calculate taxable income

Taxable Income = Income (Gross Salary + other income) – Deductions

In order to determine the part of your income that is taxable, subtract

allowances (LTA, Conveyance Allowance, HRA), professional tax,
medical bills, medical insurance, tax saving investments, if any and other
deductions from your gross salary.

Calculating income:
To calculate income-tax, include income from all sources such as:

 Salary (salary paid by your employer)

 House property (rental income, or interest paid on home loan)

43
 Capital gains (income from sale purchase of shares or house)

 Income from any business/profession

 Other sources (saving account interest income, fixed deposit

interest income, interest income from bonds)

Deductions:
1. HRA
HRA received is not fully exempt from tax. HRA that you can claim is
the lowest of the following:
 The total amount received as the HRA from the employer in the
financial year.

 Actual rent paid in the year – 10% of the basic salary in the year.

 50% of the annual basic salary if staying in a metro city or 40% of

the annual basic salary if staying in a non-metro city.
2. Standard deduction
In Budget 2019, a standard deduction of Rs 50,000 (annually) has been
introduced. Before this, there was a transport allowance of maximum INR
19,200 (annual) and Medical allowance of maximum INR 15,000
(annual), which are no longer applicable.
3. LTA
Travel cost can be claimed for tax exemption under Section 10(5), twice
in a block of four years. LTA covers only domestic travel, and the
amount is provided on submission of actual bills.
Please not that some components of the salary such as medical
reimbursements, telephone bills reimbursement, etc. are exempt from the
tax deduction.

Deductions are generally divided into the following sections:

SECTION NATURE LIMIT
Basic deductions
80C from total income 1,50,000
Rs. 10,000 on interest, available to an
individual and HUF, deduction allowed on
Interest from interest earned from a savings account
80 TTA deposits with a bank

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SECTION NATURE LIMIT
50% of the donation made is allowed to be
deducted from the taxable income.
However, if the amount is more than 10%
Donations to of the gross total income, the excess will
80 G charity be ignored.
deduction allowed on total EMI part, no
80 E Educational loan limit
Allowed on interest paid on home loan up
80 EE Home loan interest to maximum Rs 50,000 per financial year.
For self and family- Rs 25,000, For self
and family and parents- Rs. 55,000, For
Medical insurance self and family and senior citizen parents-
80 D premium Rs. 80000
Step 3: Calculate income tax**
Once you have taxable income, you can easily calculate income-tax by
referring to the income-tax slab and rates provided below:

Tax slab
The amount of tax paid by an individual is dependent on the taxable
income range.

According to latest Budget announcement, Tax Slab for individuals for

the FY 2019-20 for male and female Indian Resident Individuals below
60 years of age is as follows:
Health and Education
Net Income Income Tax Cess
Up to Rs. 5 Lakh Nil Nil
Rs. 5,00,000 - Rs. Rs. 12,500 + 20% on income
10,00,000 above 5 lakhs 4% of income tax
Above Rs. Rs. 1,12,500 + 30% on income
10,00,000 above 10 lakhs 4% of income tax
*Surcharge @10% will be applied for taxable income between Rs. 50
lakhs to Rs. 1 crore and @15% for taxable income above Rs. 1 crore.

Calculate exact in-hand salary with the help of our free take-home salary
45
calculator.
Step 4: Calculating in-hand/take home salary
Take Home Salary = Basic Salary + Actual HRA + Special Allowance -
Income Tax - Employer’s PF Contribution(EPF)

Example:
Let's take an example to understand how to calculate take-home
salary:
Meera's CTC is Rs. 16,00,000. Other salary components of her salary structure are
metioned below:

SALARY AMOUNT AMOUNT

COMPONENTS (ANNUAL) (MONTHLY)
CTC 16,00,000 -
Basic 6,40,000 53,332
HRA 3,20,000 26,666
EPF 21,600 1,800
Sec 80C Investment 1,00,000 8,333
Leave Travel Allowance 20,000 1,666
Special Allowance 5,75,324 47,943
Gratuity 23,076 1,923
Professional Tax 2400 200
Note:
*This is up to Meera to decide how much she wants to invest and claim
under section 80C. The maximum deduction possible is 1,50,000. EPF
amount also comes under section 80C.
We have assumed that Meera pays INR 30,000 per month as her rent.

DA is assumed to be zero because Meera is a private sector employee.

Step 1: Calculating gross salary

Gross Salary = CTC – (EPF + Gratuity)
Gross salary= 16,00,000 – (21,600 + 23,076)

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Gross Salary = INR 15,55,324
Step 2: Calculating taxable income
First, calculate the HRA deduction that you can claim:

HRA that you can claim = Minimum of (Actual HRA, Rent paid - 10% of
basic, 50% of Basic for metro city)
= Minimum (3,20,000 , 3,60,000 - 10% of 6,40,000, 50% of 6,40,000)
= Minimum (3,20,000, 2,96,000, 3,20,000)
= 2,96,000

Taxable Income = Gross Salary – Section 80C deduction – Standard

Deduction – HRA – Professional Tax

Taxable Income = 15,55,324 – 1,000,00 – 50,000 – 2,96,000 – 2,400

Taxable Income = 11,06,924

Step 3: Calculate income tax
Based on the slab rates:

Income Tax = 112500 + 30% of (Taxable Income - 100000)

Income Tax = 112500 + 30% of 1,06,924
Income Tax = 1,87,347
Cess = 4% of Income Tax

Net Tax = 1,87,347 + 7494= 1,94,841

Step 4: Calculating in-hand/take home salary
Take Home Salary = Gross Salary – (Income Tax + Professional Tax)
Take Home Salary = 15,55,324 - (1,94,841 + 2,400)

Take Home Salary (Annual) = INR 13,58,540

Take Home Salary (Monthly) = INR 1,13,212

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 Recommendations
1. Conversion of open credit customers to bank financed customers:
The
Company has a policy of discounting or receivable purchase with the
bank, which can be converted to discounting without recourse or
receivable purchase backed by Insurance scheme. In case of non-
payment of such bills, the sufferer will be the factor (bank) or
insurance company, firm will bear almost no risk.

2. Credit sales to retailers: The Company should use other parameters

also to determine the credit scoring of a debtor. The parameters often
used for credit rating are customers profile, its market share,
technology standards, capital investment, credit history and ability to
pay debts on time.

3. Securitization from open credit customers: Though the company

tries to finance all its customers through bank, it becomes
necessary under some circumstances for the company to sell its goods
to customers who are not under the bank finance scheme. Thus
converting such customers under the financing scheme may not also
be possible. So, the company can make provisions for circumstances
for the securitization of such customers.
4. Collection of post dated cheque may also be a good instrument.

5. The indirect expenses for the company are high which as a result
leads to low net profit margin (4.06%) for the company. It may be
due to inefficiency of the marketing department and production
department leading uncontrolled promotional and other expenses on
processing the fabrics and materials,inefficient utilization of
resources which should be controlled.

6. As per the data, majority of the current assets are blocked with
slow moving inventories because of which company is facing
liquidity problem which is expected to have 4.15, 4.88, and 5.74 for
the upcoming years where the standard norm is 6. The quick ratio is
not up to the mark because of the value of inventory. The firm has to
control its capacity on over production or the firm has to adopt proper
promotional strategies to move the goods. So, the firm should work
towards the efficient management of inventories.

48
7. The debt equity ratio is good from the creditors point of view but
not from the companys point of view. The firm is expected to have 1.37,
1.24 and 1.10 for the upcoming years because it is expected to use the
available reserves and surplus for further investments. The company
should go for long term loans to broaden their investment as well as tax
shield on its profit.

49
 Conclusion
The project is executed by considering the financial 2019-20 as a base
year because the whole economy was experiencing recession in the
previous years. The company is expected to have good financial position
in future as it is expected to have good turnovers of sales, debtors,
creditors and its assets. The firm is also expected to have ratios between
debt, equity and its assets which show the firm uses its own funds for
further investments which are a raising flag for its investors.
As, the firm is facing the difficulty on indirect expenses and its
inventories however, the above mentioned are some of the
recommendations that could improve the financial position of the
company if implemented.

Note: The recommendations are brought to the notice of the company

after the effective study on economic conditions and proper analysis of
financial statements during the period of my study. I would like to thank
the company, Anitej Service Pvt Ltd for giving me this great opportunity
of doing this project. I would then like to give a great thanks to my
mentor Mr. Manish Sonkar (Executive-HR) & Mr khima kand Pal
(Manager-Finance) for their continuous and unending support during my
project study. Finally, I would also like to thank all other senior managers
and officials who were able to spend their valuable time with me in
discussion of the subject area of my project and others for providing me
the financial data any other requirements for my study and successful
completion of my project, and thus contributed a great value to my
project.

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