Permission Denied Error in my application

I was facing a problem from two days. My application was working fine last week. i was getting permission denied error in some functionalties in my application. i checked the permission of particular file was also ok i.e. 777 but still i got permission denied error.with the help of my senior i found that if file is having all permission but if the folder in which that file resides is having some restriction then we can't access that file if we are not in that directory. if this helps you let me know.

then i did

$chmod 777  folder_name -R

this command recursively allow all permission to particular folder