Project Report on Working Capital Management in HCL RENEW Cod.scr

8/20/2019 Project Report on Working Capital Management in HCL RENEW Cod.scr

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A

PROJECT REPORT

ON

“WORKING CAPITAL MANAGEMENT IN HCL“WORKING CAPITAL MANAGEMENT IN HCL

INFOSYSTEMS LIMITED”INFOSYSTEMS LIMITED”

SUBMITED BY

MR.KAPARE ABHILASH PRAKASH

SUBMITED TO

UNIVERSITY OF PUNE

UNDER GUIDENCE OF

PRO. NIMBOLKAR.V IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE

BACHOLOR OF BUSIN0ESS ADMINISTRATIO

(BBA Sem VI)

FOR THE ACADMIC YEAR

(2013 - 2014)

SGGP COLLEGE

BBA/BCA/B.C&B .COM JATEGAON BK.

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ACKOWLEDGEMENT

Achieveme! i" #i$i% &'! h! *&' &'+$ ,e !he $&i%- h! *&' hve !& $&. The hi%he/

!he "'mmi!- !he h/$e/ i" !he c+im,. The %&+ " #i0e$ $ e ,e% i!h $e!e/mie$

/e"&+ve$ $ 1'! i ce"e+e"" "'"!ie$ h/$ &/2. G/e!e/ ch++e%e- %/e!e/ " &'/ e##&/!

!& &ve/c&me i!.

Thi" 1/&3ec! &/2- hich i" m* #i/"! "!e1 i !he #ie+$ 1/e""i&+i4!i&- h" ,ee

"'cce""#'++* cc&m1+i"he$ &+* ,ec'"e m* !ime+* "'11&/! e++5i"he/". I &'+$ +i2e

!& 1* m* "ice/e /e%/$" $ !h2" !& !h&"e- h& $i/ec!e$ me ! eve/* "!e1 i m* 1/&3ec!

&/2.

I &'+$ +"& +i2e !& !h2 !he #c'+!* mem,e/" $ !he "!## mem,e/" HCL Infosystems

Lt. #&/ !hei/ 2i$ "'11&/! $ he+1 $'/i% !he 1/&3ec!.

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TABLE OF CONTENTS

Ac2&+e$%eme!E0ic'!ive "'mm/*

6. I!/&$'c!i&

• The 1/&,+em"

• O,3ec!ive !he 1/&3ec!

7. HCL I#&"*"!em" 8 A Ove/vie

• C&m1*9" hi"!&/*

• M%eme! !em

• C&/1&/!e i#&/m!i&

:. C&ce1!'+ F/me&/2

• I!/&$'c!i& !& ;&/2i% C1i!+ M%eme!

• Ive!&/* m%eme!

• C"h m%eme!

• Receiv,+e" m%eme!

• M%i% 1*,+e" (C/e$i!&/")• Fici% c'//e! ""e!"

• ;&/2i% c1i!+ < "h&/!5!e/m #ici%

=. A+*"i"

• I$'"!/* +*"i"

• Fici+ %/1h"

• C&c+'$i% +*"i"

• S'%%e"!i&" $ /ec&mme$!i&"• Bi,+i&%/1h*

>. A11e$ice"

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EXECUTIVE SUMMARY

Thi" 1/&3ec! i" ,"e$ & !he "!'$* &/2i% c1i!+ m%eme! i HCL I#&*"!em". A

i"i%h! vie !he 1/&3ec! i++ ec&m1"" 8 h! i! i" ++ ,&'!- h! i! im" !& chieve-

h! i" i!" 1'/1&"e $ "c&1e- !he v/i&'" me!h&$" '"e$ #&/ c&++ec!i% $! $ !hei/ "&'/ce"-

ic+'$i% +i!e/!'/e "'/ve* $&e- #'/!he/ "1eci#*i% !he +imi!!i&" &'/ "!'$* $ i !he

+"!- $/i% i#e/ece" #/&m !he +e/i% "& #/.

HCL I#&"*"!em" Limi!e$ (HCL)- i" +e$i% $&me"!ic c&m1'!e/ h/$/e $ h/$/e

"e/vice" c&m1*. HCL i" e%%e$ i "e++i% m'#c!'/e$ ( +i2e PC"- "e/ve/"- m&i!&/" $

1e/i1he/+") $ !/$e$ h/$/e ( +i2e &!e,&&2"- 1e/i1he/+") !& i"!i!'!i&+ c+ie!" " e++

" i /e!i+ "e%me!. I! +"& #e/" h/$/e "'11&/! "e/vice" !& e0i"!i% c+ie!" !h/&'%h

'+ mi!ece c&!/c!"- e!&/2 c&"'+!i% $ #ci+i!ie" m%eme!.

The &/2i% c1i!+ m%eme! /e#e/" !& !he m%eme! &/2i% c1i!+- &/ 1/eci"e+*

!& !he m%eme! c'//e! ""e!". A #i/m9" &/2i% c1i!+ c&"i"!" i!" ive"!me!" i

c'//e! ""e!"- hich ic+'$e" "h&/!5!e/m ""e!"?c"h $ ,2 ,+ce- ive!&/ie"-

/eceiv,+e $ m/2e!,+e "ec'/i!ie".

Thi" 1/&3ec! !/ie" !& ev+'!e h& !he m%eme! &/2i% c1i!+ i" $&e i HCL

I#&"*"!em" !h/&'%h ive!&/* /!i&"- &/2i% c1i!+ /!i&"- !/e$"- c&m1'!!i& c"h-

ive!&/* $ &/2i% c1i!+- $ "h&/! !e/m #ici%.

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INTRODUCTION

• The problems

• Objective of the prpject


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INTRODUCTION:

The 1/&3ec! '$e/!2e i" & @;ORING CAPITAL MANAGEMENT IN HCL

INFOSYSTEMS LIMITED.

I! $e"c/i,e" ,&'! h& !he c&m1* m%e" i!" &/2i% c1i!+ $ !he v/i&'" "!e1" !h!

/e /e'i/e$ i !he m%eme! &/2i% c1i!+.

C"h i" !he +i#e+ie c&m1*. I# !hi" +i#e+ie $e!e/i&/!e"- "& $&e" !he c&m1*" ,i+i!* !&

#'$ &1e/!i&"- /eive"! $ mee! c1i!+ /e'i/eme!" $ 1*me!". U$e/"!$i% c&m1*" c"h #+& he+!h i" e""e!i+ !& m2i% ive"!me! $eci"i&". A %&&$ * !& 3'$%e

c&m1*" c"h #+& 1/&"1ec!" i" !& +&&2 ! i!" &/2i% c1i!+ m%eme! (;CM).

;&/2i% c1i!+ /e#e/" !& !he c"h ,'"ie"" /e'i/e" #&/ $*5!&5$* &1e/!i&" &/- m&/e

"1eci#ic++*- #&/ #ici% !he c&ve/"i& / m!e/i+" i!& #ii"he$ %&&$"- hich !he

c&m1* "e++" #&/ 1*me!. Am&% !he m&"! im1&/!! i!em" &/2i% c1i!+ /e +eve+"

ive!&/*- cc&'!" /eceiv,+e- $ cc&'!" 1*,+e. A+*"!" +&&2 ! !he"e i!em" #&/ "i%"

c&m1*" e##iciec* $ #ici+ "!/e%!h.

The &/2i% c1i!+ i" im1&/!! */$"!ic2 !& me"'/e !he c&m1*9" &1e/!i&+ $

#ici+ e##iciec*. A* c&m1* "h&'+$ hve /i%h! m&'! c"h $ +ie" c/e$i! #&/

i!" ,'"ie"" ee$" ! ++ !ime".

Thi" 1/&3ec! $e"c/i,e" h& !he m%eme! &/2i% c1i!+ !2e" 1+ce !

HCL I#&"*"!em".

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OBJECTIVE OF THE PROJECT

The &,3ec!ive" !hi" 1/&3ec! e/e mi+* !& "!'$* !he ive!&/*- c"h $ /eceiv,+e !

HCL I#&"*"!em" L!$.- ,'! !he/e /e "&me m&/e $ !he* /e 5

The mi 1'/1&"e &'/ "!'$* i" !& /e$e/ ,e!!e/ '$e/"!$i%

!he c&ce1! @;&/2i% C1i!+ M%eme!.

T& '$e/"!$ !he 1+i% $ m%eme! &/2i% c1i!+ ! HCL Infosystems

Lt.

T& me"'/e !he #ici+ "&'$e"" !he c&m1* ,* +*4i% v/i&'" /!i&".T& "'%%e"! *" #&/ ,e!!e/ m%eme! $ c&!/&+ &/2i% c1i!+ ! !he c&ce/.

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HCL INFOSYSTEMS – AN OVERVIEW

#

• Company’s history

• Management team

• Corporate information


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HCL INFOSYSTEMS LIMITED

AN OVERVIEW ABOUT THE COMPANY

HCL I#&"*"!em" i" & #+"h i !he I#&/m!i& Tech&+&%* 1. F&'$e$ i 6- !he #i/m

h" c+im,e$ i!& 1!he& I$i" c&/1&/!e %i!" & !he "!/e%!h i!" IT 1/&$'c!" $

"e/vice". HCL I#&"*"!em" "1eci+i4e" i IT h/$/e (PC" $ "e/ve/"- " e++ "

e!&/2i%- im%i% $ c&mm'ic!i&" 1/&$'c!")- $ "*"!em i!e%/!i& "e/vice" "e/vi%

!he $&me"!ic I$i m/2e!. I $$i!i& !& i!" c&"'me/ 1/&$'c!"- !he c&m1* 1/&vi$e"

c&mme/ci+ IT 1/&$'c!"- #ci+i!ie" m%eme!- e!&/2 "e/vice"- $ IT "ec'/i!* "e/vice"#&/ c+ie!" i "'ch i$'"!/ie" " %&ve/me!- #ici+ "e/vice"- $ e$'c!i&. HCL

C&/1&/!i& &" "i%i#ic! "!2e" i HCL I#&"*"!em" (,&'! ==) $ "i"!e/ c&m1*

HCL Tech&+&%ie".

HCL I#&"*"!em" L!$- +i"!e$ "',"i$i/* HCL- i" I$i5,"e$ h/$/e $ "*"!em"

i!e%/!&/. I! c+im" 1/e"ece i 6 +&c!i&" $ : "e/vice ce!/e". I!" m'#c!'/i%

#ci+i!ie" /e ,"e$ i Chei- P&$iche//* $ U!!/2h$ .I!" he$'/!e/" i" i N&i$.

HCL Pe/i1he/+" (A Ui! HCL I#&"*"!em" Limi!e$) F&'$e$ i !he *e/ 6:- h"

e"!,+i"he$ i!"e+# " +e$i% m'#c!'/e/ c&m1'!e/ 1e/i1he/+" i I$i- ec&m1""i%

Di"1+* P/&$'c!"- Thi C+ie! "&+'!i&"- I#&/m!i& $ I!e/c!ive i&"2". HCL

Pe/i1he/+" h" !& M'#c!'/i% #ci+i!ie"- &e i P&$iche//* (E+ec!/&ic") $ !he &!he/

i Chei (Mechic+) .The C&m1* h" ,ee cc/e$i!e$ i!h ISO 6K7- ISO

6=6- TS 6= $ ISO 6:=>.

$

http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Pondicherryhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Noidahttp://en.wikipedia.org/wiki/Chennai


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HISTORY

HCL I#&"*"!em" L!$ i" &e !he 1i&ee/" i !he I$i IT m/2e!- i!hi!" &/i%i" i 6. F&/ &ve/ '/!e/ ce!'/*- e hve $eve+&1e$ $im1+eme!e$ "&+'!i&" #&/ m'+!i1+e m/2e! "e%me!"- c/&"" /%e !ech&+&%ie" i I$i. ;e hve ,ee i !he #&/e#/&! i i!/&$'ci% e!ech&+&%ie" $ "&+'!i&". The hi%h+i%h!" !he HCL "% /e"'mm/i4e$ ,e+&K

Y E AR H I ! H L I ! H T S

"#$%

5 F&'$!i& !he C&m1* +i$5 I!/&$'ce" mic/&c&m1'!e/5,"e$ 1/&%/mm,+e c+c'+!&/" i!h i$e cce1!ce i !he"cie!i#ic e$'c!i& c&mm'i!*

"#$$

5 L'ch !he #i/"! mic/&c&m1'!e/5,"e$ c&mme/ci+ c&m1'!e/ i!h ROM 5,"e$ B"ici!e/1/e!e/5 Uvi+,i+i!* 1/&%/mmi% "2i++" i!h c'"!&me/" /e"'+!" i HCL $eve+&1i% ,e"1&2e11+ic!i&" #&/ !hei/ c'"!&me/"

"#&05 F&/m!i& F/ E"! C&m1'!e/" L!$.- 1i&ee/ i !he Si%1&/e IT m/2e!- #&/ SI(S*"!em I!e%/!i&) "&+'!i&"

"#&'

5 HCL +'che" %%/e""ive $ve/!i"eme! cm1i% i!h !he !heme eve !*1i"! c&1e/!e !& m2e !he '"%e c&m1'!e/" 1&1'+/ i !he SME (Sm++ < Me$i'm E!e/1/i"e")"e%me!. Thi" 1/&1&"i!i& iv&+ve$ me'5,"e$ 11+ic!i&" #&/ !he #i/"! !ime- !& ic/e"ee"e &1e/!i&". The /e"1&"e !& !he $ve/!i"eme! " 1he&me+.5HCL $eve+&1" "1eci+ 1/&%/m %ee/!&/" !& "1ee$ '1 !he $eve+&1me! 11+ic!i&"

"#&%

5 &+ #ice" ,2" $ %ee/+ i"'/ce c&m1ie" $&1! c&m1'!e/i4!i&5 P'/ch"e "1eci#ic!i&" $em$ !he vi+,i+i!* RDBMS 1/&$'c!" & !he "'11+ie$"&+'!i& (Ui#*- O/c+e). HCL //%e" #&/ "'ch 1/&$'c!" !& ,e 1&/!e$ !& i!" 1+!#&/m.5 HCL ""i"!" c'"!&me/" !& mi%/!e #/&m #+!5#i+e ,"e$ "*"!em" !& RDBMS

"##"

5 HCL e!e/" i!& 3&i! ve!'/e i!h He+e!! Pc2/$5 HP ""i"!" HCL !& i!/&$'ce e "e/vice"K S*"!em" I!e%/!i&- IT c&"'+!i%- 1c2%e$"'11&/! "e/vice" ( ,"ic +ie- !em +ie )

"##(5 HCL c'i/e" $ e0ec'!e" !he #i/"! #"h&/e 1/&3ec! #/&m IBM Thi+$

5 HCL "e!" '1 c&/e %/&'1 !& $e#ie "!/e $eve+&1me! me!h&$&+&%ie"

"##) 5 S!/!" e0ec'!i& I#&/m!i& S*"!em P+i% 1/&3ec!"

1%


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5 E0ec'!i& 1/&3ec!" #&/ Ge/m* $ A'"!/+i5 Be%i" He+1 $e"2 "e/vice"

"##%

5 Se!" '1 !he STP ( S!/e Tech&+&%* P/2 ) ! Chei !& e0ec'!e "!/e 1/&3ec!" #&/i!e/!i&+ c'"!&me/"5 Bec&me" !i&+ i!e%/!i& 1/!e/ #&/ SAP

"##$5 &+2! $ N&i$ STP" "e! '15 HCL ,'*" ,c2 HP "!2e i HCL He+e!! Pc2/$

"##& 5 Chei $ C&im,!&/e $eve+&1me! #ci+i!ie" %e! ISO 6 ce/!i#ic!i&

"###

5 Ac'i/e" $ "e!" '1 #'++* &e$ "',"i$i/ie" i USA $ U 5 Se!" '1 #'++* &e$ "',"i$i/* i A'"!/+i5 HCL !ie" '1 i!h B/&$vi"i& " i!e%/!i& 1/!e/

*000

5 Se!" '1 #'++* &e$ "',"i$i/* i A'"!/+i5 Chei $ C&im,!&/e $eve+&1me! #ci+i!ie" %e! SEI Leve+ = ce/!i#ic!i&

5 B%" A/$ #&/ T&1 PC Ve$&/ I I$i5 Bec&me" !he 6"! IT C&m1* !& ,e /ec&mme$e$ #&/ +!e"! ve/"i& ISO 6 K 75 B%" MAIT" A/$ #&/ B'"ie"" E0ce++ece5 R!e$ " N&. 6 IT G/&'1 i I$i

*00"5L'che$ Pe!i'm IV PC" ! ,e+& R" =-5IDC /!e$ HCL I#&"*"!em" " N&. 6 De"2!&1 PC C&m1* 76

*00#

5Dec+/e$ " T&1 PC Ve$&/ ,* D!'e"!5HCL I#&"*"!em" < S' Mic/&"*"!em" e!e/" i!& E!e/1/i"e Di"!/i,'!i& A%/eeme!5 Re+i%" ,'"ie""e"- ic/e"i% #&c'" & $&me"!ic IT- C&mm'ic!i&" < Im%i%

1/&$'c!"- "&+'!i&" < /e+!e$ "e/vice"

*0"0

5 Becme !he #i/"! ve$&/ !& /e%i"!e/ "+e" >- PC" i '/!e/ 5 Fi/"! I$i c&m1* !& ,e 'me/& '& i !he c&mme/ci+ PC m/2e!5 E!e/" i!& 1/!e/"hi1 i!h AMD5 L'che$ H&me PC #&/ R" 6-

*0""

5 6"! !& &'ce PC 1/ice c'! i I$i- 1&"! $'!* /e$'c!i&- #e/" E4ee,ee ! R". 65 Mi!i" N&.6 1&"i!i& i !he De"2!&1 PC "e%me! #&/ *e/ 765 Bec&me" !he 6"! c&m1* !& c/&"" 6 +c 'i! mi+e"!&e i !he I$i De"2!&1 PC m/2e!

5 P/!e/" i!h Ui& B2 !& m2e PC" m&/e ##&/$,+e- i!/&$'ce" +&e"! eve/ EMI #&/PC i I$i5 Re%i"!e/" m/2e! "h/e 6:. !& ,ec&me N&.6 De"2!&1 PC c&m1* #&/ *e/ 7665 C/&""e" !he +$m/2 6 ,i++i& i /eve'e i 3'"! ie m&!h"

*0"* 5 L'ch HCL PC #&/ I$i- #'++* #'c!i&+ PC 1/ice$ ! R".-5

5 R!e$ " !he N&.6 De"2!&1 PC c&m1* ,* IDC I$i 5D!'e"!

5 Be"! Em1+&*e/ 767 i!h #ive "!/ /!i%" ,* IDC I$i 5D!'e"!.

5 The M&"! C'"!&me/ Re"1&"ive C&m1* 767

5IT H/$/e C!e%&/* ,* The Ec&&mic Time" 5Av* G+&,+ C&ec!.

5T&1 > #"!e"! %/&i% Tech&+&%* C&m1ie" i I$i < T&1 > #"!e"! G/&i%Tech&+&%* C&m1ie" i A"i Pci#ic ,* De+&i!!e < T&'che. ,* De+&i!!e < T&'che

5!h IETE 5C&/1&/!e A/$ 767 #&/ 1e/#&/mce e0ce++ece i !he #ie+$ C&m1'!e/" <

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Te+ec&mm'ic!i& S*"!em" ,* IETE.

5I$i " N&.6 ve$&/ #&/ "+e" A: "i4e T&"hi, M'+!i F'c!i&+ Device" #&/ !he *e/ =

5> ,* IDC.

5T&"hi, S'1e/ A/$ 767 !&/$" ,'"ie"" e0ce++ece i $i"!/i,'!i& T&"hi,

M'+!i#'c!i&+ 1/&$'c!"-

5S!/!e%ic P/!e/" i E0ce++ece A/$ ,* I #&c'" C&/1&/!i& #&/ 1/&3ec!&/".5M&"! v+'e$ B'"ie"" P/!e/ A/$ #&/ 1/&3ec!&/" ,* I #&c'" C&/1&/!i& i 767

*0"'

+t,--

/ne

5 >- mchie" 1/&$'ce$ i "i%+e m&!h5 HCL I#&"*"!em" i 1/!e/"hi1 i!h T&"hi, e01$" i!" /e!i+ 1/e"ece i I$i ,*'vei+i% "h&1 T&"hi,5 HCL I#&"*"!em" < N&2i &'ce +&% !e/m $i"!/i,'!i& "!/!e%*5 HCL !he +e$e/ i De"2!&1" PC" 'vei+" I$i" #i/"! "e%me! "1eci#ic /%e &!e,&&2"

,/$ 5 HCL L1!&1"5 IDBI "e+ec!" HCL " SI 1/!e/ #&/ 6 ,/che" ICT i#/"!/'c!'/e /&++&'!5 HCL I#&"*"!em" "h&c"e" C&m1'!e/ S&+'!i&" #&/ !he R'/+ M/2e!" i I$i

5 HCL S'11&/! i" !he DQ Che+"576: GOLD A/$ #&/ Be"! A#!e/ S+e" Se/vice & !i&i$e c'"!&me/ "!i"#c!i& "'/ve* c&$'c!e$ ,* IDC5 HCL I#&"*"!em" Fi/"! i I$i !& L'ch !he Ne Gee/!i& Hi%h Pe/#&/mce Se/ve/ P+!#&/m" P&e/e$ ,* I!e+ D'+ 5 C&/e e& > P/&ce""&/ 5 HCL F&/m" S!/!e%ic P/!e/"hi1 i!h APPLE !& 1/&vi$e S+e" < Se/vice S'11&/! #&/iP&$" i I$i

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OBJECTIVES :

• MANA!EMENT OBECTIVES 8

T& #'e+ ii!i!ive $ #&"!e/ c!ivi!* ,* ++&i% i$ivi$'+"- #/ee$&m c!i& $

i&v!i& i !!ii% $e#ie$ &,3ec!ive".

• PEOPLE OBECTIVES 8

T& he+1 1e&1+e i HCL I#&"*"!em" L!$.- "h/e c&m1*9" "'cce""- hich !he*

m2e 1&""i,+e !& 1/&vi$e 3&, "ec'/i!* ,"e$ & !hei/ 1e/#&/mce !&

/ec&%i4e !hei/ i$ivi$'+ chieveme!" $ he+1 !hem %i "e"e "!i"#c!i&

$ cc&m1+i"hme! #/&m !hei/ &/2.

MANAGEMENT TEAM:

A12, C3o435yC&5F&'$e/ HCL- Chi/m $ CEO 5 HCL I#&"*"!em".A e%iee/ ,* !/ii%- A3i Ch&$h/* i" &e !he "i0 c&5#&'$e/ mem,e/" HCL- I$i " 1/emie/ IT c&%+&me/!e.

V R2m2m/5t3y

Chie# O1e/!i% O##ice/ HCL I#&"*"!em" L!$.J V Rmm'/!h* h" e%iee/i% $e%/ee i E+ec!/&ic" < C&mm'ic!i&"-#/&m G'i$* E%iee/i% C&++e%e- $ M"!e/" $e%/ee i A11+ie$ E+ec!/&ic"

#/&m !he M$/" I"!i!'!e Tech&+&%*- ,&!h i Chei.

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R21en52 K/m25

E0ec'!ive Vice P/e"i$e! 5 F/&!+ie Divi"i& HCL I#&"*"!em" L!$. M/.R3e$/ 'm/ h" ,ee i!h HCL #&/ &ve/ : *e/" $ h" "ee HCL %/&#/&m "!/!'1 c&m1* !& %i%!ic c&%+&me/!e !h! i! i" !&$*.

CORPORATE INFORMATION:

BOARD OF DIRECTORS C32,5m2n 6 C3,ef E7e8/t,9e Off,8e5

A3i Ch&$h/*

:3o-e;t,me D,5e8to5

J.V. Rmm'/!h*

D,5e8to5s

S. Bh!!ch/* D.S. P'/i R.P. h&"+ E.A. "hi/"%/ Ai! Rmch$/ T.S. P'/'"h&!hm N/"imh Je%$ee"h V.N. &'/

COMPANY SECRETARY S'"hi+ 'm/ Ji

AUDITORS P/ice ;!e/h&'"e- Ne De+hi

BANKERS S!!e B2 I$i C/ B2

HDFC B2 L!$. ICICI B2 L!$.

S&cie!e Gee/+e S!$/$ Ch/!e/e$ B2

14


15/73

S!!e B2 P!i+

RE!ISTERED OFFICE - Si$$h/!h- - Neh/' P+ce- Ne De+hi 5 66 6.

CORPORATE OFFICE E 5 =- >- - Sec!&/ I- N&i$ 5 76 :6 (U.P.)

:ORKS R.S. N&"K :== !& := $ 1/! :=6-Se$/1e!- P'$'che//* 5 > 666.

R.S. N&"K 6>- < - Mi R&$- Se$/1e!- P'$'che//* 5 > 666.

1


16/73

WORKING CAPITAL MANAGEMENT

CONCEPTUAL FRAMEWORK

1!

• Introduction

• Classification of working capital

• Types of working capital needs

• Working capital cycle

• Sources of working capital

• Working capital position

• Inventory management

• Cash management

• Receivables management

• Managing payables (Creditors)

• Financing current assets

• Working capital & short-term financing


17/73

INTRODUCTION TO WORKING CAPITAL

“Working Capital is the Life-Bloo an Controlling !er"e Center of a #$siness%

T3e 4o5,t2- m2n2=ement >5e8,se-y 5efe5s to m2n2=ement of 8/55ent 2ssets. Af,5m?s 4o5,t2- 8ons,sts of ,ts ,n9estment ,n 8/55ent 2ssets@ 43,83 ,n8-/e s3o5t;

te5m 2ssets s/83 2s

• C"h $ ,2 ,+ce-

• Ive!&/ie"-

• Receiv,+e" (ic+'$i% $e,!&/" $ ,i++")-

• M/2e!,+e "ec'/i!ie".

;&/2i% c1i!+ i" c&mm&+* $e#ie$ " !he $i##e/ece ,e!ee c'//e! ""e!" $ c'//e!

+i,i+i!ie".

;ORING CAPITAL CURRENT ASSETS5CURRENT LIABILITIES

The/e /e !& m3&/ c&ce1!" &/2i% c1i!+K

• G/&"" &/2i% c1i!+

• Ne! &/2i% c1i!+

Gross working capital:

I! /e#e/" !& #i/m" ive"!me! i c'//e! ""e!". C'//e! ""e!" /e !he ""e!"- hich c ,e

c&ve/!e$ i!& c"h i!h i #ici+ *e/. The %/&"" &/2i% c1i!+ 1&i!" !& !he ee$

//%i% #'$" !& #ice c'//e! ""e!".

Net working capital:

I! /e#e/" !& !he $i##e/ece ,e!ee c'//e! ""e!" $ c'//e! +i,i+i!ie". Ne! &/2i%

c1i!+ c ,e 1&"i!ive &/ e%!ive. A 1&"i!ive e! &/2i% c1i!+ i++ /i"e he c'//e!

""e!" e0cee$ c'//e! +i,i+i!ie". A$ vice5ve/" #&/ e%!ive e! &/2i% c1i!+. Ne!

&/2i% c1i!+ i" '+i!!ive c&ce1!. I! i$ic!e" !he +i'i$i!* 1&"i!i& !he #i/m $"'%%e"!" !he e0!e! !& hich &/2i% c1i!+ ee$" m* ,e #ice$ ,* 1e/me! "&'/ce"

1"


18/73

#'$". Ne! &/2i% c1i!+ +"& c&ve/" !he 'e"!i& 3'$ici&'" mi0 +&%5!e/m $

"h&/!5!e/m #'$" #&/ #ici% c'//e! ""e!".

1#


19/73

KINDS OF WORKINGCAPITAL

ON THE

BASIS

OF

CONCEP

T

GROSS

WORKIN

G

CAPITAL

NET

WORKIN

G

CAPITAL

ON THE

BASIS

OF TIME

PERMAN

ENT/FIXE

DWORKIN

GCAPITAL

REGULAR

WORKING

CAPITAL

RESERVE

WORKING

CAPITAL

TEMPOR

ARY/VARI

ABLEWORKIN

GCAPITAL

SEASONA

L

WORKING

CAPITAL

SPECIAL

WORKING

CAPITAL

CLASSIFICATION OF WORKING CAPITAL

;&/2i% c1i!+ c ,e c+""i#ie$ " #&++&"K

• O !he ,"i" !ime

• O !he ,"i" c&ce1!

1$


20/73

TYPES OF WORKING CAPITAL NEEDS

T3e 4o5,t2- nees 82n e ,f/582te 2s

• Pe/me! &/2i% c1i!+

• Tem1&//* &/2i% c1i!+

Permanent working capital:

The/e i" +*" miim'm +eve+ &/2i% c1i!+- hich i"

c&!i'&'"+* /e'i/e$ ,* #i/m i &/$e/ !& mi!i i!" c!ivi!ie". Eve/*

#i/m m'"! hve miim'm c"h- "!&c2 $ &!he/ c'//e! ""e!"- !hi"

miim'm +eve+ c'//e! ""e!"- hich m'"! ,e mi!ie$ ,* * #i/m

++ !he !ime"- i" 2& " 1e/me! &/2i% c1i!+ #&/ !h! #i/m. Thi"

m&'! &/2i% c1i!+ i" c&"!!+* $ /e%'+/+* /e'i/e$ i !he

"me * " #i0e$ ""e!" /e /e'i/e$. S&- i! m* +"& ,e c++e$ #i0e$

&/2i% c1i!+.

Temporary working capital:

A* m&'! &ve/ $ ,&ve !he 1e/me! +eve+ &/2i% c1i!+ i"

!em1&//*- #+'c!'!i% &/ v/i,+e &/2i% c1i!+. The 1&"i!i& !he

2%


21/73

/e'i/e$ &/2i% c1i!+ i" ee$e$ !& mee! #+'c!'!i&" i $em$

c&"e'e! '1& ch%e" i 1/&$'c!i& $ "+e" " /e"'+! "e"&+

ch%e".

:ORKIN! CAPITAL CYCL

The !2"- hich /e c&ce/e$ i!h $*5!&5$* c!ivi!ie"- hve #'$"

c&"!!+* #+&i% i!& $ &'! !hem.

• The chi "!/!" i!h !he #i/m ,'*i% / m!e/i+" & c/e$i!.

• I $'e c&'/"e !hi" "!&c2 i++ ,e '"e$ i 1/&$'c!i&- &/2 i++ ,e

c//ie$ &'! & !he "!&c2- $ i! i++ ,ec&me 1/! !he #i/m9" &/25

i51/&%/e"".

• ;&/2 i++ c&!i'e & !he ;IP '!i+ i! eve!'++* eme/%e" " !he

#ii"he$ 1/&$'c!.

• A" 1/&$'c!i& 1/&%/e""e"- +,&/ c&"!" $ &ve/he$" ee$ hve !&

,e me!.

• O# c&'/"e ! "&me "!%e !/$e c/e$i!&/" i++ ee$ !& ,e 1i$.

• ;he !he #ii"he$ %&&$" /e "&+$ & c/e$i!- $e,!&/" /e ic/e"e$.

• The* i++ eve!'++* 1*- "& !h! c"h i++ ,e i3ec!e$ i!& !he #i/m.

• The ,'"ie"" i++ hve !& m2e 1*me!" !& %&ve/me! #&/

!0!i&.

• Fi0e$ ""e!" i++ ,e 1'/ch"e$ $ "&+$

• Le""&/" #i0e$ ""e!" i++ ,e 1i$ !hei/ /e!

• Sh/eh&+$e/" (e0i"!i% &/ e) m* 1/&vi$e e #'$" i !he #&/m

c"h

21


22/73

• S&me "h/e" m* ,e /e$eeme$ #&/ c"h

• Divi$e$" m* ,e 1i$

• L&%5!e/m +& c/e$i!&/" (e0i"!i% &/ e) m* 1/&vi$e +&

#ice- +&" i++ ee$ !& ,e /e1i$ #/&m !ime5!&5!ime- $

• I!e/e"! &,+i%!i&" i++ hve !& ,e me! ,* !he ,'"ie""

SOURCES OF WORKING CAPITAL

HCL I#&"*"!em" h" !he #&++&i% "&'/ce" vi+,+e #&/ !he #'+#i++me!

i!" &/2i% c1i!+ /e'i/eme!" i &/$e/ !& c//* & i!" &1e/!i&"

"m&&!h+*K

• B2n


23/73

!/'"!"- $ c&m1ie" i!h "'/1+'" #'$" !& ive"! #&/ "h&/! 1e/i&$ i!h miim'm /i"2.

HCL i""'e" C&mme/ci+ P1e/" $ h$ = c&mme/ci+ 11e/" i !he *e/ 76:.

WORKING CAPITAL POSITION :

CURRENT ASSET 8 TOTAL ASSET

PARTICULARS *0"' *0"* *0"" *0"0 *00#

CURRENT

ASSETS

6 6>:: >=6 =>=7 >>>

NET BLOC >:7 =7> =>= >>>7

TOTAL ASSETS 677= 6: 67> >7>

CATA 7.== 7.7= 7.67 :.6 =.=:

The c'//e! ""e! 1e/ce!%e & !&!+ ""e! i" !he hi%he"! &ve/ !he *e/".

Thi" ic/e"i% 1e/ce!%e c'//e! ""e!" !& !he !&!+ ""e!" ! #i/"!

mi%h! i$ic!e 1/e#e/ece #&/ +i'i$i!* i 1+ce 1/i!,i+i!*- ,'!

+&&2 i!& !he !'/e !he ,'"ie"" c//ie$ & ,* HCL I#&"*"!em"

/eve+ !he /e"& ,ehi$ i!. H& #/ !hei/ 1/e#e/ece !& c'//e! ""e!"

h" ##ec!e$ !he "+e" i" "h& ,e+&.

23


24/73

NET CURRENT ASSET 8 SALES

PARTICULARS *0"' *0"* *0"" *0"0 *00#

NET CURRENT

ASSETS

=:=: :==7 6=:6 6>7 7>

SALES 7:6: 6 6>=7> 6= 67:

;ORINGCAPITAL INCREASE

6.67 6=7.: 57:.: 5:. 5.=

SALES INCREASE

6.6= 7.>= 5.: :6.6 .

The "+e" h" ic/e"e$ $ !he 1/i!" /i"e $e"1i!e !he 6.67 ic/e"e

i &/2i% c1i!+. B'! h! i" &!e&/!h* he/e i" !h! !he #i/m h"

m%e$ !& mi!i !he !/e$ ic/e"e i e! c'//e! ""e!".

;he!he/ !he ch%e h" &/2e$ #&/ !he c&m1* h" !& ,e +*"e$ i

!he c&!e0! !he %/&!h i "+e" " c&m1/e$ !& !he 1/evi&'" *e/.

The/e h" ,ee 6.6= /i"e i !he "+e" &/ /eve'e %ee/!e$.

CURRENT ASSET 8 FIED ASSET

PARTICULARS *0"' *0"* *0"" *0"0 *00#

NET CANET BLOC >.7K6 .>6K6 7.:K6 :.>K6 =.>K6

The /!i& !he e! c'//e! ""e! !& !he #i0e$ &e" i" i$ic!&/ " !& !he

+i'i$i!* 1&"i!i& !he #i/m. Thi" /!i& h" $ec+ie$ #&/ !he #i/m

c&m1/e$ !& !he 1/evi&'" *e/. The/e c&'+$ ,e /%'me! " !& he!he/

!he ic/e"e$ /!i& &/2i% c1i!+ !& e! ,+&c2 i" c&"e/v!ive 1&+ic*

$ he!he/ i! &'+$ ,e $e!/ime!+ !& !he i!e/e"! !he c&m1*. O/-

he!he/ i! &'+$ hve ,ee 1/&1e/ i# !he c&m1* ive"!e$ m&/e i!& !he

c1i!+ e01e$i!'/e i !he #&/m 1+! $ mchie/* &/ ive"!e$ i *

&!he/ #&/m !h! &'+$ hve %&! !hem i!e/+ /!e /e!'/.

COMPUTER $ MICRO PROCESSOR BASED SYSTEMS

YEAR INSTALLED

CAPACITY

ACTUAL

PRODUCTION

CAPACITY

UTILIATION

24


25/73

*0"' 66> >6> >.>

*0"* ==676 =.

*0"" >7> 7>67 >.7:

DATA GRAPHICDISPLAY MONITORTERMINALSHUBS

YEAR INSTALLED

CAPACITY

ACTUAL

PRODUCTION

CAPACITY

UTILIATION

*0"' 7> 7:7 6.:

*0"* 7> 7>6 6:.>

*0"" :> 76 >.6=

Th! !he #i0e$ ""e!" !he #i/m /e ,ei% 1'! !& e##icie! '"e $ !he #i/m

i" !/*i% #&/ &1!im'm c1ci!* '!i+i4!i& i" "&me!hi% !h! c ,e e"i+*

$e$'ce$. ;he!he/ !he c'//e! ""e!" &/ !he &/2i% c1i!+ !he #i/m h"

*!hi% !& $& i!h i! i" #&/ '" !& "ee. A ic/e"e$ 1/&$'c!i& i &/m+

ci/c'm"!ce" me" ,e!!e/ / m!e/i+ !& #ii"he$ %&&$" c&ve/"i&

/!e- i.e. !he #i/m i" !2i% +e"" !ime i !he 1/&$'c!i& 1/&ce"" $ !hi"

h11e" he !he c'//e! ""e! em1+&*e$ i /e+!i& i!h !he #i0e$ &e"

/e ! &1!im'm. The &!he/ &!,+e #e!'/e he/e i" !h! !h&'%h !he #i/m h"

$$e$ & !& i!" i"!++e$ c1ci!* i ++ !h/ee *e/"- !he* e/e "!i++ ,+e !&

ic/e"e !he c1ci!* '!i+i4!i&. Th! !he* hve ,ee ,+e !& $& i! "h&"

!h! !he m&/e c'//e! ""e!"- e"1eci++* ive!&/* '"e$ i /e+!i& !& !he

#i0e$ ""e!"- i.e.- 1+! $ mchie/* $ !hei/ m%eme! h" &+*

he+1e$ i ic/e"i% !hei/ '!i+i4!i& !& !he m0im'm.

CURRENT ASSET 8 CURRENT LIABILITY

PARTICULARS *0"' *0"* *0"" *0"0 *00#

CURRENT ASSETS 6 6>:: >=6 =>=7 >>>

CURRENT LIABILITES 7 =6 : 77 77

CURRENT ASSETSINCREASE

7:.= >. 7. 56.>= .

2


26/73

CURRENT LIABILITESINCREASE

7.> 6. >6.:> 5.6 6.=>

The 6.67 ic/e"e i Ne! C'//e! ""e!" $e"1i!e !he #c! !h! !he/e

h" ,ee ic/e"e i !he C'//e! A""e!" ,* 7:.= $ ic/e"e i

C'//e! Li,i+i!* h" ,ee ,* 7.> &ve/ !h! !he 1/evi&'" *e/ h" !&

,e !!/i,'!e$ !& !he #c! !h! i 767- !he c&m1* "h&e$ "'ch hi%h

ic/e"e i CA- !h! i! i" "!i++ ,ei% #"e!. Thi" i" i$ic!i& " !& !he

e01$i% &1e/!i&" !he #i/m. HCL h" ic/e"e$ i!" c'//e! ""e!" i

&/$e/ !& mee! !he ic/e"i% "+e". The #i/m9" +eve+ +i'i$i!* ,ei%

hi%h- e ee$ chec2 & he!he/ i! ##ec!" !he /e!'/ & ""e!".

INVENTORY MANAGEMENT

Inventories

Ive!&/ie" c&"!i!'!e !he m&"! im1&/!! 1/! !he c'//e! ""e!"

+/%e m3&/i!* c&m1ie". O ve/%e !he ive!&/ie" /e

11/&0im!e+* !he c'//e! ""e!" i 1',+ic +imi!e$ c&m1ie" i

I$i. Bec'"e !he +/%e "i4e ive!&/ie" mi!ie$ ,* !he #i/m"-

c&"i$e/,+e m&'! #'$" i" c&mmi!!e$ !& !hem. I! i" !he/e#&/e-

im1e/!ive !& m%e !he ive!&/ie" e##icie!+* $ e##ec!ive+* i &/$e/

!& v&i$ 'ece""/* ive"!me!.

Nature of Inventories

Ive!&/ie" /e "!&c2 !he 1/&$'c! !he c&m1* i" m'#c!'/i% #&/

"+e $ c&m1&e!" m2e '1 !he 1/&$'c!. The v/i&'" #&/m" !he

ive!&/ie" i !he m'#c!'/i% c&m1ie" /eK

2!


27/73

• R24 M2te5,2-K I! i" !he ,"ic i1'! !h! i" c&ve/!e$ i!& !he

#ii"he$ 1/&$'c! !h/&'%h !he m'#c!'/i% 1/&ce"". R m!e/i+"

/e !h&"e 'i!" hich hve ,ee 1'/ch"e$ $ "!&/e$ #&/ #'!'/e

1/&$'c!i&.

• :o55o=5essK Ive!&/ie" /e "emi5m'#c!'/e$ 1/&$'c!".

The* /e1/e"e! 1/&$'c! !h! ee$ m&/e &/2 !he* ,ec&me #ii"he$

1/&$'c!" #&/ "+e.

• F,n,s3e !oosK Ive!&/ie" /e !h&"e c&m1+e!e+* m'#c!'/e$

1/&$'c!" hich /e /e$* #&/ "+e. S!&c2" / m!e/i+" $

&/25i51/&%/e"" #ci+i!!e 1/&$'c!i&- hi+e "!&c2 #ii"he$

%&&$" i" /e'i/e$ #&/ "m&&!h m/2e!i% &1e/!i&". Th'"-ive!&/ie" "e/ve " +i2 ,e!ee !he 1/&$'c!i& $

c&"'m1!i& %&&$".

Inventory Management Techniques

I m%i% ive!&/ie"- !he #i/m9" &,3ec!ive "h&'+$ ,e !& ,e i

c&"&ce i!h !he "h/eh&+$e/ e+!h m0imi4!i& 1/ici1+e. T&

chieve !hi"- !he #i/m "h&'+$ $e!e/mie !he &1!im'm +eve+ ive!&/*.

E##icie!+* c&!/&++e$ ive!&/ie" m2e !he #i/m #+e0i,+e. Ie##icie!

ive!&/* c&!/&+ /e"'+!" i ',+ce$ ive!&/* $ i#+e0i,i+i!*5!he

#i/m m* "&me!ime" /' &'! "!&c2 $ "&me!ime" 1i+e '1 'ece""/*

"!&c2".

• E8onom,8 O5e5 /2nt,ty +EOK The m3&/ 1/&,+em !& ,e

/e"&+ve$ i" h& m'ch !he ive!&/* "h&'+$ ,e $$e$ he

ive!&/* i" /e1+ei"he$. I# !he #i/m i" ,'*i% / m!e/i+"- i! h"

!& $eci$e +&!" i hich i! h" !& 1'/ch"e & /e1+ei"hme!. I# !he

#i/m i" 1+i% 1/&$'c!i& /'- !he i""'e i" h& m'ch

1/&$'c!i& !& "che$'+e. The"e 1/&,+em" /e c++e$ &/$e/ '!i!*

1/&,+em"- $ !he !"2 !he #i/m i" !& $e!e/mie !he &1!im'm &/

ec&&mic +&! "i4e. De!e/mie &1!im'm +eve+ iv&+ve" !& !*1e"

c&"!"K5

2"


28/73

• O5e5,n= CostsK Thi" !e/m i" '"e$ i c"e / m!e/i+

$ ic+'$e" ++ !he c&"! c'i/i% / m!e/i+. The*

ic+'$e !he c&"!" ic'//e$ i !he #&++&i% c!ivi!ie"K

Re'i"i!i&

P'/ch"e O/$e/i%

T/"1&/!i%

Receivi%

I"1ec!i%

S!&/i%

O/$e/i% c&"! ic/e"e i!h !he 'm,e/ &/$e/" 1+ce$

!h'" !he m&/e #/e'e!+* ive!&/* i" c'i/e$- !he hi%he/ !he

#i/m9" &/$e/i% c&"!". O !he &!he/ h$- i# !he #i/m

mi!i" +/%e ive!&/*9" +eve+- !he/e i++ ,e #e &/$e/"

1+ce$ $ &/$e/i% c&"!" i++ ,e /e+!ive+* "m++. Th'"-

&/$e/i% c&"!" $ec/e"e i!h !he ic/e"i% "i4e ive!&/*.

• C255y,n= Costs C&"!" /e ic'//e$ #&/ mi!ii% %ive

+eve+ ive!&/* /e c++e$ c//*i% c&"!". The"e ic+'$e

!he #&++&i% c!ivi!ie"K

♠ ;/eh&'"i% C&"!

♠ H$+i%

♠ A$mii"!/!ive c&"!

♠ I"'/ce

♠ De!e/i&/!i& $ &,"&+e"cece

C//*i% c&"!" /e v/*i% i!h ive!&/* "i4e. Thi"

,ehvi&/ i" c&!//* !& !h! &/$e/i% c&"!" hich $ec+ie

i!h ic/e"e i ive!&/* "i4e. The ec&&mic "i4e

2#


29/73

ive!&/* &'+$ !h'" $e1e$ & !/$e5# ,e!ee c//*i%

c&"!" $ &/$e/i% c&"!.

Com>os,t,on *0"' *0"* *0""

R M!e/i+ := = 67

S!&/e" $ S1/e" :6: 7 777

Fii"he$ G&&$" 6::= 7=> >

;&/25i51/&%/e"" >> = 6

The ic/e"i% c&m1&e! / m!e/i+" i ive!&/* i" $'e !&

!he #c! !h! !he c&m1* h" %&e #&/ ,'+2 1'/ch"e" $ h"ic/e"e$ c&"'m1!i& $'e !& #++ i 1/ice" $ /e$'ce$ m/%i"

#&/ !he *e/. A&!he/ /e"& mi%h! ,e !he ic/e"i% "+e"- hich

mi%h! hve i$'ce$ !hem !& 1'/ch"e m&/e i !ici1!i&

#'/!he/ ic/e"e i $em$ !he 1/&$'c!. A$ !he +&

c&m1&"i!i& &/25i51/&%/e"" i" '$e/"!$,+e " ,ec'"e

!he !'/e !he ,'"ie"" #i/m i" iv&+ve$ i.

T& !he 'e"!i& " !& he!he/ !he ic/e"i% c&"!" i ive!&/* /e

3'"!i#ie$ ,* !he /e!'/" #/&m i! !he "e/ c&'+$ ,e #&'$ i !he

HCL /e!i+ e01"i&. HCL c!e/" !& !he ee$ !he !& "e1/!e

"e%me!"K

) I"!i!'!i&" #&/ hich !he* m'#c!'/e %i"! &/$e/" $-

,) Re!i+ "e%me! !he m/2e!.

The* /e m&/e i!& /e!i+ !h e/+ie/ $ ! 1/e"e! m&/e !h >

/e!i+ &'!+e!" ,/$e$ i!h HCL "i% %e" $ m&/e /e i !he

1i1e+ie

The c&m1* i &/$e/ !& mee! i!" / m!e/i+" /e'i/eme!" c&'+$

hve %&e #&/ #/e'e! 1'/ch"e"- hich &'+$ hve /e"'+!e$ i

+e""e/ c"h #+&" #&/ !he #i/m /!he/ !h !he hi%h e01e$i!'/e

iv&+ve$ he 1/&c'/i% i ! ,'+2. The /e"& h* !he #i/m h"

2$


30/73

%&e #&/ !he"e ,'+2 1'/ch"e" ,ec'"e !he +&e/ m/%i" $ !he

$i"c&'!" i! vi+e$ ,ec'"e 1/&c'/i% i ,'+2 '!i!ie".

A e%!ive %/&!h i ;IP c&'+$ ,e ,ec'"eK

) The !ime !2e !& c&ve/! / m!e/i+" !& #ii"he$ %&&$" i"

ve/* miim+

,) Thi" i" +"& $'e !& c1ci!* ,ei% &! '!i+i4e$ ! !he

&1!im'm.

ABC SystemK ABC "*"!em ive!&/* 2ee1i% i" #&++&e$ i

!he #c!&/ie". V/i&'" i!em" /e c!e%&/i4e$ i!& !h/ee $i##e/e!

+eve+" i !he &/$e/ !hei/ im1&/!ce. F&/ e.%. i!em" "'ch "

mem&/*- hi%h c1ci!* 1/&ce""&/" $ /&*+!* /e 1+ce$ i !he A9

c!e%&/*. L/%e 'm,e/ #i/m" h" !& mi!i "eve/+ !*1e"

ive!&/ie". I! i" &! $e"i/,+e !he "me $e%/ee c&!/&+ ++ !he

i!em". The #i/m "h&'+$ 1* m0im'm !!e!i& !& !h&"e i!em"

h&"e v+'e i" hi%he"!. The #i/m "h&'+$ !he/e#&/e- c+""i#*

ive!&/ie" !& i$e!i#* hich i!em" "h&'+$ /eceive !he m&"! e##&/!

i c&!/&++i%. The #i/m "h&'+$ ,e "e+ec!ive i 11/&ch !& c&!/&+

ive"!me! i v/i&'" !*1e" ive!&/ie". Thi" +*!ic+

11/&ch i" c++e$ @ABC A+*"i". The hi%h5v+'e i!em" /e

c+""i#ie$ " @A i!em" $ &'+$ ,e '$e/ !i%h!e"! c&!/&+. @C

i!em" /e1/e"e! /e+!ive+* +e"! v+'e $ &'+$ /e'i/e "im1+e

c&!/&+. @ B i!em" #++ i ,e!ee !he !& c!e%&/ie" $ /e'i/e

/e"&,+e !!e!i& m%eme!.

ITK The /e+evce JIT i HCL I#& "*"!em c ,e 'e"!i&e$.

Thi" i" ,ec'"e !he* 1/&c'/e m!e/i+" & !he ,"i" 1/&3ec!i&"

m$e ! +e"! !& &/ !h/ee m&!h" ,e#&/e. Eve ! !he !ime 1/&c'/eme! !he* e"'/e !h! !he* 1/&c'/e m'ch m&/e !h h!

3%


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c!'++* i" /e'i/e$ ,* !he #i/m !h! i" !he* h&+$ "i%i#ic! m&'!

ive!&/* " "#e!* "!&c2. Thi" i" $&e !& c&'!e/ !he !h/e!

iv&+ve$ i $e#'+! $ cci$e!+ ,/e2$&". The +eve+"

"#e!* "!&c2 '"'++* v/* cc&/$i% !& !he '"%e.

Conversion Periods Analysis

Raw Material

P25t,8/-25s *0"( *0") *0"%

R M!e/i+ C&"'m1!i& 66.: 7.> >7.7

R M!e/i+ C&"'m1!i&$* :.:7 6. 6.7R M!e/i+ Ive!&/* 67.7 6=.>: :=.

R M!e/i+ H&+$i% D*" =.6> .7 7.7

The / m!e/i+ c&ve/"i& 1e/i&$ &/ !he / m!e/i+ h&+$i%

c&"! h" ic/e"e$ #/&m = !& 6 $*"- ,ec'"e i e ic/e"e i i!"

c&"'m1!i&. Thi" i$ic!e" !h! !he #i/m i" ,+e !& c&ve/! !he /m!e/i+ ! i!" $i"1&"+ !& !he &/25i51/&%/e"" ! +e""e/ !ime "

c&m1/e$ !& !he +"! *e/. I! &'+$ ,e !& !he ,ee#i! !he #i/m !& /e$'ce

!he 1/&$'c!i& 1/&ce"" $ ic/e"e !he c&ve/"i& /!e "!i++ " !he #i/m i"

/e'i/e$ !& mee! !he ic/e"i% $em$.

:o55o=5ess

P25t,8/-25s *0"' *0"* *0""

C&"! P/&$'c!i& 6666 6>>6.6 66:>.::

C&"! P/&$'c!i&$* >7>. =:.= :6.>

;&/2 i 1/&%/e"" ive!&/* .> 7.>7 .=>>;IP H&+$i% $*" 6.:6 6. 7.6

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32/73

The &/25i51/&%/e"" h&+$i% !ime i" im1&/!! #&/ #i/m i !he "e"e

!h! i! $e!e/mie" !he /!e !ime ! hich !he 1/&$'c!i& 1/&ce"" i++ ,e

c&m1+e!e &/ !he #ii"he$ %&&$" i++ ,e /e$* #&/ $i"1&"+ ,* !he #i/m. The#i/m " i! i" i !he

1/&ce"" ""em,+i% "h&'+$ !2e !he +e"! 1&""i,+e !ime i c&ve/"i& !&

#ii"he$ %&&$" '+i2e h/$ c&/e m'#c!'/i% #i/m- " * #i/m &'+$

+i2e !& hve i!" ive!&/* i !he &/25i51/&%/e"" ! !he miim'm. The/e

&'+$ +"& ,e +e"" "!&c2 &'! c&"!" " $'e !& ,e!!e/ c&ve/"i& /!e" !he

#i/m i" ,+e !& mee! !he /i"e i $em$ "i!'!i&". M&/e !he !ime i! "1e$"

+e""e/ i!" e##iciec* &'+$ ,e i !he m/2e!. He/e !he #i/m h" ,ee ,+e

!& ,/i% $& i!" ;IP c&ve/"i& 1e/i&$".

F,n,s3e !oos

P25t,8/-25s *0"' *0"* *0""

C&"! %&&$" "&+$ 776 6=:.> 67=.7

C&"! %&&$" "&+$$* 7> =. :=6.:7

Fii"he$ %&&$" ive!&/* 6:6 >.7> >7.>>Fii"he$ %&&$" ive!&/* H&+$i% $*" 6 6=. 6=.

The !ime !2e #&/ !he #i/m !& /e+i4e i!" #ii"he$ %&&$" " "+e" h"

ic/e"e$ " c&m1/e$ !& +"! *e/. Thi" %/&!h i "+e" c&'+$ ,e !/ce$

,c2 !& !he %/&i% $&me"!ic IT m/2e! #&/ !he c&mme/ci+ " c&"'me/

"e%me! i I$i. HCL h" /&'$ 6> !he m/2e! i $e"2!&1 $ i! i"

!he m/2e! +e$e/ i !hi" "e%me!. S& i! i" &+* !'/+ !h! !he* /e ,+e

!& ,e!!e/ !hei/ c&ve/"i& /!e #ii"he$ %&&$" !& "+e".

O>e52t,n= Cy8-e

P25t,8/-25s *0"' *0"* *0""

Ive!&/* c&ve/"i& 1e/i&$ : =7 =>

Ave/%e c&++ec!i& 1e/i&$ :

G/&"" &1e/!i% c*c+e 6 6> 666

Ave/%e 1*me! 1e/i&$ 77 7: 6

O1e/!i% c*c+e 7 =

32


33/73

The &1e/!i% c*c+e !he #i/m /eve+" !he $*" i!hi hich !he

ive!&/* 1/&c'/e$ %e!" c&ve/!e$ !& "+e" &/ /eve'e #&/ !he #i/m. Thi"

!ime 1e/i&$ i" im1&/!ce !& !he #i/m " +% he/e c&'+$ "i%i#ic!+*

##ec! !he 1/i!,i+i!*- +i'i$i!*- c/e$i! !e/m"- $ !he 1&+icie" !he #i/m.

A++ !he #i/m" &'+$ +i2e !& /e$'ce i! !& "'ch e0!e$ !h! !hei/ c"h i#+&"

/e !ime+* e&'%h !& mee! !hei/ &,+i%!i&" $ "'11&/! !he &1e/!i&".

Th! !he #i/m h" ,ee ,+e !& /e$'ce !he /!i& i" i i!"e+# chieveme!

" !he* e/e hvi% h'%e "!&c2" ive!&/*. B'! !he /e$'c!i& i !he

c*c+e c&'+$ +"& ,e !!/i,'!e$ !& !he ,&&m i !he m/2e! $ !he %/&!h i!

i" e01ec!e$ !& /ech. Thi" ,&&m '!&m!ic++* e"'/e" !he $em$ #&/ !he

#ii"he$ %&&$" $ !h'" he+1i% i i! !& %/e/ "+e" #&/ !he #i/m.

R24 M2te5,2- Cons/m>t,on

P25t,8/-25s *0"' *0"* *0""

Im1&/!e$ 76= =.7 =767.:

I$i%e&'" 7 76.= 6>=>.>6

Im1&/!" >. 7.7> 7.7

A m3&/ ch'2 !he im1&/!" c&me #/&m &/e $ Ti $ i"

1'/ch"e$ i US. The v+'e im1&/!e$ $ i$i%e&'" / m!e/i+

c&"'me$ %ive c+e/ 1ic!'/e !h! i# !he/e i" ch%e i !he EIM 1&+ic*

!he %&ve/me! i! i" ,&'$ !& ##ec! !he c&m1* $ve/"e+* " m&/e

!h !hei/ c&"'m1!i& i" #/&m im1&/!". B'! !hi" i" !he "ce/i&

i!e""e$ i !he i$'"!/* " h&+e $ !h&'%h HCL i" i!& e01$i%

i!" &1e/!i& !& U!!/ch+ i! i !he 1/e"e! "!!e i" &'+$ ,e ##ec!e$ ,* ch%e i !he im1&/! $'!* "!/'c!'/e.

CASH MANAGEMENT

SOURCES OF CASH:

So/58es of 2,t,on2- 4o5,t2- ,n8-/e t3e fo--o4,n=

33


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• E0i"!i% c"h /e"e/ve"

• P/i!" (he *&' "ec'/e i! " c"h)

• P*,+e" (c/e$i! #/&m "'11+ie/")

• Ne e'i!* &/ +&" #/&m "h/eh&+$e/"

• B2 &ve/$/#!" &/ +ie" c/e$i!.

• L&%5!e/m +&"

I# *&' hve i"'##icie! &/2i% c1i!+ $ !/* !& ic/e"e "+e"- *&'

c e"i+* &ve/5"!/e!ch !he #ici+ /e"&'/ce" !he ,'"ie"". Thi" i"

c++e$ o9e5t52,n=.

E25-y 425n,n= s,=ns ,n8-/e

• P/e""'/e & e0i"!i% c"h

• E0ce1!i&+ c"h %ee/!i% c!ivi!ie" e.%. #e/i% hi%h $i"c&'!"

#&/ e/+* c"h 1*me!

• B2 &ve/$/#! e0cee$" '!h&/i4e$ +imi!.

• See2i% %/e!e/ &ve/$/#!" &/ +ie" c/e$i!

• P/!51*i% "'11+ie/" &/ &!he/ c/e$i!&/"

• P*i% ,i++" i c"h !& "ec'/e $$i!i&+ "'11+ie"

• M%eme! 1/e5&cc'1!i& i!h surviving /!he/ !h m%i%

•

F/e'e! "h&/!5!e/m eme/%ec* /e'e"!" !& !he ,2 (!& he+1 1*%e"- 1e$i% /ecei1! che'e).

CASH MANAGEMENT IN HCL INFOSYSTEMS:

34


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T3e 82s3 m2n2=ement system fo--o4e y t3e HCL Infosystems ,s

m2,n-y -o8< o7 system.

C"h M%eme! S*"!em iv&+ve" !he #&++&i% "!e1"K

6. The ,/ch #ice" !he c&m1* ! v/i&'" +&c!i&" h&+$ !he

c&++ec!i& che'e" !he c'"!&me/".

7. Th&"e che'e" /e ei!he/ h$e$ &ve/ !& !he CMS %ecie" &/ ,2

!he 1/!ic'+/ +&c!i& !2e ch/%e h&+e c&++ec!i&.

:. The"e CMS %ecie" &/ ,2 "e$ !h&"e che'e" !& !he c+e/i%

h&'"e !& m2e !hem /e+i4e$. The"e che'e" c ,e +&c+ &/

&'!"!!i&.

=. The CMS %ecie" &/ ,2 "e$ i#&/m!i& !& !he ce!/+ h',

!he c&m1* /e%/$i% /e+i4!i&che'e ,&'ce$.

>. The ce!/+ h', 1""e" & !he /e+i4e$ #'$" !& !he c&m1* " 1e/

!he %/ee$ %/eeme!".

. The CMS %ecie" &/ c&ce/e$ ,2 1/&vi$e" !he ece""/* MIS

!& !he c&m1* " 1e/ /e'i/eme!.

C2s3;C/55ent L,2,-,ty

P25t,8/-25s 76: 767 766

A,"&+'!e Li'i$ R!i& .7=K6 .:6K6 .66K6

The ,"&+'!e +i'i$ /!i& i" !he ,e"! #&/ !h/ee *e/" $ !he c"h ,+ce"

" !& !he c'//e! +i,i+i!* h" im1/&ve$ #&/ !he #i/m. Fi/m h" +/%e

/e"&'/ce" i c"h $ ,2 ,+ce". ;hi+e +/%e /e"&'/ce" i c"h $

,2 ,+ce" m* "eem !& ##ec! !he /eve'e !he #i/m c&'+$ hve e/e$

,* ive"!i% i! e+"ehe/e " mi!ece c'//e! ""e!" " c"h $ i

e/ c"h ""e!" $ m/2e!,+e "ec'/i!ie" m* ic/e"e !he +i'i$i!*

1&"i!i& ,'! &! !he /eve'e &/ 1/i! e/i% c1ci!* !he #i/m.

D,9,en Po-,8y;C2s3

P25t,8/-25s *0"" *0"* *0"'

Divi$e$ P&+ic* 76 :6 =

Shi#! i S+e" 6>=7> 6 7:6:

C"h B+ce ==:.=: 6=>7.> 6=>7.7

3


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C"h i H$ 66.:: 67. 67.

2%11 2%12 2%13

%

%

1%%

1%

2%%

2%

3%%

3%

4%%

4%

Dividend Poi!" #

D'()*( P+,-

2%11 2%12 2%13%

2%%%

4%%%

!%%%

#%%%

1%%%%

12%%%

14%%%

1!%%%

CASH BALANCE

C0 B0,*-)

C0 * 0*(

3!


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2%11 2%12 2%13

%

%%%%

1%%%%%

1%%%%

2%%%%%

2%%%%

3%%%%%

S$i%& in S'e(

S * S0,)

The &!he/ &!,+e #e!'/e i HCL "!!eme!" h" ,ee !he %/&i%

$ivi$e$ 1&+ic* !he #i/m. The 1*me! $ivi$e$ me" c"h

&'!#+&. Th'" c"h 1&"i!i& i" im1&/!! c/i!e/i& ! !he !ime 1*i%

$ivi$e$". The/e i" !he&/* !h! %/e!e/ !he c"h 1&"i!i& $ ,i+i!* !&

1* $ivi$e$". The #i/m h" $&1!e$ 1&+ic* $i",'/"i% !he /eve'e

e/e$ " 1/i!" !& !he "h/eh&+$e/" " $ivi$e$" " c&'+$ ,e "ee #/&m

!he ic/e"i% $ivi$e$" $ec+/e$.

P25t,8/-25s *0"' *0"* *0""

PBIDT 6=7= 6>:= 6=>7:

E'i!* Divi$e$ = :6 76

Thi" c&'+$ me !& !hi%" #&/ !he #i/m !he m&'! c"h /e!ie$ i

!he ,'"ie"" #&/ c1i!+ e01e$i!'/e 1'/1&"e" /e miim+ &/ i+. B'!

/!he/ !h ive"!i% m&/e i 1+! $ mchie hich !he* c ! *

1&i! i !ime ,* $$i% & $$i!i&+ +ie i# ee$ !he* &'+$ +i2e !&

&1!imi4e !hei/ '!i+i4!i& i #i0e$ ""e!" ! 1/e"e!. Thi" +"& me" !h!

!he 1e/ce!%e c"h i h$ mi!ie$ ,* !he #i/m " "&'/ce

+i'i$i!* c&'+$ ,e /e$'ce$- i.e. !he m&'! i$+e c"h i !he ,'"ie""

c&'+$ ,e m$e !& +eve+ hich !he #i/m #ee+" &1!im'm.

3"


38/73

The #i/m #ee+" !h! !he* "h&'+$ /e!i c"h $ i! &'+$ ,e i !he i!e/e"!

!he #i/m " e++ " !he "h/eh&+$e/". Thi" &'+$ '!&m!ic++* me "

$ec/e"e i E/i%"h/e (EPS)(B"ic EPS $ec+ie$ #/&m i 767 !&

.= i 76:). I! &'+$ 1/&m1! m&/e ive"!&/" ,ei% i!e/e"!e$ i !he

"h/e" !he c&m1*- hich &'+$ ,&&"! !he 1'/ch"e !he "ec'/i!ie"

$ ic/e"e !he m/2e! 1/ice"h/e !h'" ,ei% ,ee#ici+ #&/ !he #i/m.

C2s3 F-o4s

C2s3 F-o4s *0"' *0"* *0""

Ne! C"h #/&m O1e/!i% c!ivi!ie" 7= 7>.> 6:.:=

Ne! C"h #/&m Ive"!i% c!ivi!ie" 5:>6> 6>6.7 576.6 Ne! C"h #/&m Fici% c!ivi!ie" 5:>67 576. 566=67.6

The #i/m h" $i"1&"e$ ive"!me!" &/!h /&'$ >> C/&/e" !& mee!

i!" %/&i% ee$". The &!he/ &!,+e #e!'/e i" $ec+ie i" !he #i/m9"

i#+&" #/&m &1e/!i&" 1/im/i+* $'e !& !he /e"& !h! !he c"h

%ee/!e$ #/&m !he &1e/!i&" i" !he +&e"! i !h/ee *e/". A$ !he #i/m9"

%/&i% $ivi$e$ 1&+ic* h" c&!/i,'!e$ !& !he &'!#+&" i #ici%

c!ivi!ie".

C2s3 F-o4 ,n O>e52t,n= A8t,9,t,es

:o5,t2- C32n=es

:o5,t2- C32n=es *0"' *0"* *0""

T/$e $ &!he/ /eceiv,+e" 56=6 56=>6. 56.

Ive!&/ie" 5>776 57:.7 5776.66

T/$e P*,+e" $ &!he/ Li,i+i!ie" 6:7 =6.6: 6=:66.>

The c"h #/&m !he &1e/!i& h" ,ee "',3ec! !& c&"i$e/,+e ch%e $'e

!& !he ch%e" !h! c&'+$ ,e $3'"!e$ !&/$" !/$e /eceiv,+e" $ !/$e

3#


39/73

1*,+e". The &'!#+&" i ive!&/* hve ,ec&me " +& " : h!

i! " +"! *e/ $e"1i!e ic/e"e i !he ive!&/* c&"'m1!i& ,*

6.=. The /e"'+!i% /e$'c!i& i !he c"h &'!#+&" mi%h! ,e ,ec'"e

!he ive!&/ie" ,ei% 1/&c'/e$ m&/e & c/e$i!. Th! !he c"h #/&m

&1e/!i&" h" $ec+ie$ h" ##ec!e$ !he c'//e! +i,i+i!* i$e0 !he #i/m.

C2s3 F-o4 ,n In9est,n= A8t,9,t,es

In9estments ,n M/t/2- F/ns *0"' *0"* *0""

Ive"!me!" (*e/ e$) 6:>: 677.== 7>.

P'/ch"e Ive"!me! 5>7 5>:>. 5>7=.6

Di"1&"+Re$em1!i& Ive"!me! >:67 >=.= >7.:

The ive"!me!" hve /e$'ce$ #/&m !he +"! *e/ $'e !& !he /e$em1!i&

ive"!me!" !2e 1+ce !& mee! v/i&'" ee$" "'ch " ic/e"i% $em$

i "!&c2 &/ ive!&/* $ !& e"'/e ,e!!e/ c/e$i! $ /eceiv,+e" 1&+ic*.

;e c "ee !h! !he #i/m h" i !he"e !h/ee *e/" ic/e"e$ !hei/ c"h

i#+& #/&m !he ive"!i% c!ivi!ie" ,* * $i"1&"+ ive"!me!"

he i ee$. Th! i" !he #i/m h" /e$eeme$ !& /e+i4e c"h " !& mee! i!"

e01$i% &1e/!i&"- #'$ !he ive!&/* 1/&c'/eme! $ mee! !he

&,+i%!i&".

The ive"!me!" i m'!'+ #'$" /e ,ee#ici+ !& !he #i/m i !he c&!e0!

!h! !he* c&!i i!e/e"! ,e/i% "ec'/i!ie" hich $$ '1 " "&'/ce

/eve'e #&/ !he #i/m '+i2e c"h hich /emi" i$+e $ '1/&$'c!ive

he &! i '"e. Thi" /e$'c!i& $ivi$e$ c&'+$ ,e !!/i,'!e$ !&

$i"1&"+ ive"!me!" i m'!'+ #'$" $ "',"i$i/*. Thi" $i"1&"+

c/e!e" #'$- hich c ,e '"e$ ,* !he c&m1* " $ he !he ee$/i"e".

3$


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RECEIVABLES MANAGEMENT

C"h #+& c ,e "i%i#ic!+* ehce$ i# !he m&'!" &i% !&

,'"ie"" /e c&++ec!e$ #"!e/. Eve/* ,'"ie"" ee$" !& 2&.... h& &e"

!hem m&e*.... h& m'ch i" &e$.... h& +&% i! i" &i%.... #&/ h! i!

i" &e$.

L2te >2yments e5oe >5of,ts 2n 82n -e2 to 2 ets.

S+& 1*me! h" c/i11+i% e##ec! & ,'"ie"" i 1/!ic'+/ & "m++

,'"ie""e" h&m c +e"! ##&/$ i!. I# *&' $&! m%e $e,!&/"- !he*

i++ ,e%i !& m%e *&'/ ,'"ie"" " *&' i++ %/$'++* +&"e c&!/&+

$'e !& /e$'ce$ c"h #+& $- c&'/"e- *&' c&'+$ e01e/iece

ic/e"e$ ici$ece ,$ $e,!.

T3e fo--o4,n= me2s/5es 4,-- 3e-> m2n2=e yo/5 eto5s

6.Hve !he /i%h! me!+ !!i!'$e !& !he c&!/&+ c/e$i! $ m2e "'/e

!h! i! %e!" !he 1/i&/i!* i! $e"e/ve".

7.E"!,+i"h c+e/ c/e$i! 1/c!ice" " m!!e/ c&m1* 1&+ic*.

:.M2e "'/e !h! !he"e 1/c!ice" /e c+e/+* '$e/"!&&$ ,* "!##-

"'11+ie/" $ c'"!&me/".=.Be 1/e""i&+ he cce1!i% e cc&'!"- $ e"1eci++*

+/%e/&e.

>.E"!,+i"h c/e$i! +imi!" #&/ ech c'"!&me/ $ "!ic2 !& !hem.

.C&!i'&'"+* /evie !he"e +imi!" he *&' "'"1ec! !&'%h !ime" /e

c&mi% &/ i# &1e/!i% i v&+!i+e "ec!&/.

.ee1 ve/* c+&"e !& *&'/ +/%e/ c'"!&me/"..Iv&ice 1/&m1!+* $ c+e/+*.

4%


41/73

Rec&%i4e !h! !he +&%e/ "&me&e &e" *&'- !he %/e!e/ !he chce *&'

i++ eve/ %e! 1i$. I# !he ve/%e %e *&'/ $e,!&/" i" %e!!i% +&%e/-

&/ i" +/e$* ve/* +&%- *&' m* ee$ !& +&&2 #&/ !he #&++&i% 1&""i,+e

$e#ec!".

• P&&/ c&++ec!i& 1/&ce$'/e".

• L0 e#&/ceme! c/e$i! !e/m".

• S+& i""'e iv&ice" &/ "!!eme!".

• E//&/" i iv&ice" &/ "!!eme!".

• C'"!&me/ $i""!i"#c!i&.

• ;e2 c/e$i! 3'$%eme!

• De,!&/" $'e &ve/ $*" ('+e"" i!hi %/ee$ c/e$i! !e/m") "h&'+$

%ee/++* $em$ imme$i!e !!e!i&. L&&2 #&/ !he /i% "i%"

#'!'/e ,$ $e,!. F&/ e0m1+e..

• L&%e/ c/e$i! !e/m" !2e i!h 11/&v+- 1/!ic'+/+* #&/ "m++e/

&/$e/".

• U"e 1&"!5$!e$ chec2" ,* $e,!&/" h& &/m++* "e!!+e i!hi

%/ee$ !e/m".

• Evi$ece c'"!&me/" "i!chi% !& $$i!i&+ "'11+ie/" #&/ !he "me

%&&$".

• Ne c'"!&me/" h& /e /e+'c!! !& %ive c/e$i! /e#e/ece".

• Receivi% 1/! 1*me!" #/&m $e,!&/".

41


42/73

• P5of,ts on-y 8ome f5om >2, s2-es.

• The c! c&++ec!i% m&e* i" &e- hich m&"! 1e&1+e $i"+i2e #&/ m*

/e"&" $ !he/e#&/e 1'! & !he +&% #i%e/ ,ec'"e !he* c&vice !hem"e+ve"

!h! !he/e i" "&me!hi% m&/e '/%e! &/ im1&/!! !h! $em$ !hei/ !!e!i&

&. The/e i" &!hi% m&/e im1&/!! !h %e!!i% 1i$ #&/ *&'/ 1/&$'c! &/

"e/vice. A c'"!&me/ h& $&e" &! 1* i" &! c'"!&me/.

•

• HERE ARE FEW WAYS IN COLLECTING MONEY FROM DEBTORS:

-

• Deve+&1 11/&1/i!e 1/&ce$'/e" #&/ h$+i% +!e 1*me!".

• T/c2 $ 1'/"'e +!e 1*e/"

• Ge! e0!e/+ he+1 i# *&' & e##&/!" #i+.

• D&9! #ee+ %'i+!* "2i% #&/ m&e* .. i!" *&'/" $ *&' /e e!i!+e$ !& i!.

• M2e !h! c++ &. A$ 2ee1 "2i% '!i+ *&' %e! "&me "!i"#c!i&.

• I $i##ic'+! ci/c'm"!ce"- !2e h! *&' c & $ %/ee !e/m" #&/ !he

/emi$e/- i! +e""e" !he 1/&,+em.

• ;he "2i% #&/ *&'/ m&e*- ,e h/$ & !he i""'e 8 ,'! "! & !he 1e/"&.

D&9! %ive !he $e,!&/ * e0c'"e" #&/ &! 1*i%.

• M2e !h! *&'/ &,3ec!ive i" !& %e! !he m&e*- &! !& "c&/e 1&i!" &/ %e!

eve.

• RECEIVABLES MANAGEMENT IN HCL INFOSYSTEMS:

•

PARTICULARS•

76:•

767•

766•

76

•

DEBTORS TURNOVER RATIO • >.76 • >. • >.>: • .7

• AVERAGE COLLECTION PERIOD • • : • • >>


43/73

•

• :

• A ,e!!e/ !'/&ve/ /!i& im1+ie" #&/ !he #i/m- m&/e e##iciec* i c&ve/!i% !hecc&'!" /eceiv,+e !& c"h. A #i/m i!h ve/* hi%h !'/&ve/ /!i& c !2e !he

#/ee$&m h&+$i% ve/* +i!!+e ,+ce" i c"h- " !hei/ $e,!&/" /e e"i+*

/e+i4,+e. I c"e HCL- !he c&++ec!i& 1e/i&$ #&/ !he #i/m i" $*".

•

•

PARTICULARS•

*0"'•

*0"*•

*0""

• PROVISION FOR DOUBTFUL DEBTS+CASH

FLO:

• : • =.

>

• 7>

• DEBTS DOUBTFUL+ECEEDIN! % MONTHS • = • 6:=.

• .

•

• The $e,!" $&',!#'+ hve $&',+e$ ,'! !hei/ 1e/ce!%e & !he $e,!" h" +m&"!

,ec&me h+#. Thi" im1+ie" "+e" $ c&++ec!i& 1&+ic* !h! %e! +&% i!h

!he /eceiv,+e" m%eme! !he #i/m.

• COLLECTION POLICIES

• I! /e#e/" !& !he c&++ec!i& 1/&ce$'/e" "'ch " +e!!e/"- 1h&e c++" $ &!he/

#&++& '1 mechi"m !& /ec&ve/ !he m&'! $'e #/&m !he c'"!&me/". I! i"

&,vi&'" !h! c&"!" /e ic'//e$ !&/$" !he c&++ec!i& e##&/!"- ,'! ,$ $e,!"

" e++ " ve/%e c&++ec!i& 1e/i&$ &'+$ $ec/e"e. F'/!he/- "!/ic!

c&++ec!i& 1&+ic* !he #i/m i" e01e"ive #&/ !he #i/m ,ec'"e !he hi%h

c&"! i" /e'i/e$ !& ,e ic'//e$ ,* !he #i/m $ i! m* +"& /e"'+! i +&""

%&&$i++. B'! ! !he "me !ime i! miimi4e" !he +&"" & cc&'! ,$ $e,!".The/e#&/e- #i/m h" !& "!/i2e ,+ce ,e!ee !he c&"! $ ,ee#i!"

""&ci!e$ i!h c&++ec!i& 1&+icie".

• The "!e1" '"'++* #&++&e$ i c&++ec!i& e##&/!" /eK

• Se$i% /e1e!e$ +e!!e/" $ /emi$e/" !& !he c'"!&me/"

• Pe/"&+ vi"i!"

• U"i% %ecie" iv&+ve$ i c&++ec!i& 1/&ce""

• M2i% !e+e1h&ic /emi$e/"


44/73

• Ii!i!i% +e%+ c!i&"

• Re+ Time G/&"" Se!!+eme! (RTGS)

•

• =

•

MANAGING PAYABLES (Creditors)

Creitors are a "ital part of effe&ti"e &ash 'anage'ent an sho$l #e

'anage &aref$ll( to enhan&e the &ash position.

• P'/ch"i% ii!i!e" c"h &'!#+&" $ &ve/54e+&'" 1'/ch"i% #'c!i&

c c/e!e +i'i$i!* 1/&,+em".

• Cons,e5 t3e fo--o4,n= ;

• ;h& '!h&/i4e" 1'/ch"i% i *&'/ c&m1* 5 i" i! !i%h!+* m%e$ &/

"1/e$ m&% 'm,e/ (3'i&/) 1e&1+eW

• A/e 1'/ch"e '!i!ie" %e/e$ !& $em$ #&/ec"!"W

• D& *&' '"e &/$e/ '!i!ie"- hich !2e cc&'! "!&c2 h&+$i% $

1'/ch"i% c&"!"W

• D& *&' 2& !he c&"! !& !he c&m1* c//*i% "!&c2W

• D& *&' hve +!e/!ive "&'/ce" "'11+*W I# &!- %e! '&!e" #/&m m3&/

"'11+ie/" $ "h&1 /&'$ #&/ !he ,e"! $i"c&'!"- c/e$i! !e/m" " i! /e$'ce"

$e1e$ece & "i%+e "'11+ie/.

• H& m* *&'/ "'11+ie/" hve /e!'/ 1&+ic*W

• A/e *&' i 1&"i!i& !& 1"" & c&"! ic/e"e" 'ic2+* !h/&'%h 1/ice

ic/e"e" !& *&'/ c'"!&me/.

• The/e i" &+$ $%e i ,'"ie"" !h! )if (o$ &an #$( *ell then (o$ &an

sell *ell). M%eme! *&'/ c/e$i!&/" $ "'11+ie/" i" 3'"! " im1&/!!" !he m%eme! *&'/ $e,!&/". I! i" im1&/!! !& +&&2 #!e/ *&'/


45/73

c/e$i!&/"5 "+& 1*me! ,* *&' m* c/e!e i++ #ee+i% $ c "i%+ !h!

*&'/ c&m1* i" ie##icie! (&/ i !/&',+e).

•

• Re)e)*e+ &$'& ' ,ood (-..ie+ i( (o)eone /$o /i

/o+0 /i&$ "o- &o en$'n!e &$e %-&-+e vi'*ii&" 'nd

.+o1&'*ii&" o% "o-+ !o).'n"2

•

Financing Current Assets

• The #i/m h" !& $eci$e ,&'! !he "&'/ce" #'$"- hich c ,e vi+e$ !&m2e ive"!me! i c'//e! ""e!".

• Lon= te5m f,n2n8,n=I! ic+'$e" &/$i/* "h/e c1i!+- 1/e#e/ece

"h/e c1i!+- $e,e!'/e"- +&% !e/m ,&//&i%" #/&m #ici+ i"!i!'!i&" $

/e"e/ve" $ "'/1+'".

•

S3o5t te5m f,n2n8,n=I! i" #&/ 1e/i&$ +e"" !h &e *e/ $ ic+'$e"&/2i% c1i!+ #'$" #/&m ,2"- 1',+ic $e1&"i!"- c&mme/ci+ 11e/ e!c.

• S>ont2neo/s f,n2n8,n=I! /e#e/" !& '!&m!ic "&'/ce" "h&/!5!e/m

#'$" /i"i% i &/m+ c&'/"e ,'"ie"". The/e i" & e01+ici! c&"! ""&ci!e$

i!h i!. F&/ e0m1+e- T/$e C/e$i! $ O'!"!$i% E01e"e" e!c.

• De>en,n= on t3e m,7 of s3o5t 2n -on= te5m f,n2n8,n=@ t3e 8om>2ny

82n fo--o4 2ny of t3e fo--o4,n= 2>>5o283es.

• M2t83,n= A>>5o283I !hi"- !he #i/m #&++&" #ici+ 1+- hich

m!che" !he e01ec!e$ +i#e ""e!" i!h !he e01ec!e$ +i#e "&'/ce #'$"

/i"e$ !& #ice ""e!".

• Conse592t,9e A>>5o283In &$i(3 &$e 1+) 1n'n!e( i&(

.e+)'nen& '((e&( 'nd '(o ' .'+& o% &e).o+'+" !-++en&


46/73

'((e&( /i&$ on, &e+) 1n'n!in,2 In &$i( &$e 1+) $'(

e(( +i(0 o% %'!in, &$e .+o*e) o% ($o+&',e o% %-nd(2

• A==5ess,9e A>>5o283I !hi"- !he #i/m '"e" m&/e "h&/! !e/m #ici%

!h //!e$ ,* !he m!chi% 1+. U$e/ %%/e""ive 1+- !he #i/m

#ice" 1/! i!" c'//e! ""e!" i!h "h&/! !e/m #ici%.Re+!ive+* m&/e

'"e "h&/! !e/m #ici% m2e" !he #i/m m&/e /i"2*.

•

• WORKING CAPITAL & SHORT-TERM FINANCING

•

• CONSORTIUM BASED FINANCIN!

•

• C/55ent :o5,t2- L,m,ts

• NAME OF THE BANK • FUND BASED • NON;FUND

BASED• INDIAN BAN • : • 7>• SYNDICATE BAN • 7 • 6• TOTAL

• )00 • ')0

• I &/$e/ !& #ice !he &/2i% c1i!+ ee$" !he #i/m i !he #&/m

;&/2i% C1i!+ Dem$ L&- !he/e i" c&"&/!i'm ie ,2". The

c&"&/!i'm i# ,2" 1/&vi$e #'$ ,"e$ +imi! 67> C/&/e" hichc&m1/i"e" c"h c/e$i! $ &/2i% c1i!+ $em$ +&" $ &5#'$

,"e$ +imi!" hich h" ,2 %'/!ee $ +e!!e/ c/e$i! "',3ec! !& +imi!

6:> C/&/e". The Le2 B2n< i !hi" c&"&/!i'm ,2" i" St2te B2n< of

In,2 $ !he se8on -e2 2n< ,s ICICI. I! i" SBI- hich #i0e" !he +imi! &

!he ,"i" c&"&/!i'm. The ++&c!i& c&! ,e hi%he/ !h !he +imi!" #i0e$

,* i!. SBI i" !he ,==est 8ont5,/to5 i !he c&"&/!i'm #&/ ,&!h #'$ $

&5#'$ ,"e$ +imi!" i!h ,&'!


47/73

• '".'0 ,n f/ns 2n '(.0* ,n non;f/n -,m,ts. The /!i& ,&!h +imi!" #&/

!he *e/ *0"' i" 0.*'0.$

• RENE:AL OF LIMITS

•

LIMITS•

*0"'•

*0"*•

*0""

•

FUND BASED • 66> • 66> • 66>

•

NON FUND

BASED

• => • :> • 7>

•

TOTAL•

%0000•

)0000•

(0000

•

• A++ ,2" "c!i& !he +imi!" #&/ 1e/i&$ &e *e/. The/e#!e/ i! i" !& ,e

/eee$ eve/* *e/. SBI 11/i"e" !he +imi! & !he ,"i" c&"&/!i'm. The

i$ivi$'+ ,2" 11/i"e #&/ !hei/ & i$ivi$'+ +imi!. The & #'$ ,"e$

+imi!" !he #i/m i c&"&/!i'm #ici% h" ,ee "',3ec!e$ !& ch%e #&/

!he 1"! !& *e/" " 1e/ !he /e'i/eme!" !he #i/m $ !he c&"e! !he

+e$ ,2 !& i!" 1/&1&"+. I! " /&'$ :> C/&/e" i 767 $ h$ ,ee

/i"e !& /&'$ => C/&/e" i 76:.

• The c&m1* ee$" !& 1/&vi$e !he #&++&i% i#&/m!i& !& ,2 #&/

11/i"+"K

• C/e$i! M&i!&/i% A11/i"+

• ;/i!e U1 & c&m1*

• Sh/e h&+$i% 1!!e/

• Li"! !he $i/ec!&/"

•

• CONSORTIUM MEETIN! K

• A++ !he mem,e/" !he c&"&/!i'm /e /e'i/e$ !& mee! !& $i"c'"" v/i&'"

i""'e" /e+!i% !& !he &/2i% #ci+i!ie". A" 1e/ RBI %'i$e+ie"- !he +e$ ,2-

i.e.- SBI "h&'+$ e"'/e !h! &e c&"&/!i'm mee!i% i" he+$ eve/* '/!e/ "$

!hi" mee!i% h" !& ,e //%e$ ,* HCL.

•

• DOCUMENTATION 2n OINT DOCUMENTATION


48/73

• The/e /e v/i&'" $&c'me!" !h! ee$ !& ,e "i%e$ ! !he !ime /ee+ &/

i$'c!i% * ,2 !& !he c&"&/!i'm. The v/i&'" $&c'me!" /e " #&++&"K

• L& %/eeme!

• H*1&!hec!i& %/eeme! #&/ m&v,+e mchie/*

• H*1&!hec!i& %/eeme! #&/ m&v,+e" $ ,&&2 $e,!"

• C&'!e/ I$emi!*

• The ,&ve /e !he "!$/$ %/eeme!" "2e$ #&/ ,* !he ,2". The c&mm&

"e+ h" !& ,e i!e""e$ ,* !he c&m1* "ec/e!/* $ &e !he $i/ec!&/"

!he c&m1*.

•

A" 767- & $$i!i&" &/ $e+e!i&" e/e m$e !& !he c&"&/!i'm !he ,2". B'! &ve/ !he *e/" !he 'm,e/ ,2" i !he c&"&/!i'm hve ,ee

/e$'ce$. I$i B2" $ S!!e B2 H*$e/,$ /e !he !& ,2"

hich e/e e/+ie/ 1/! !he c&"&/!i'm.

•

•

•

J&i! D&c'me!!i& i" e0ec'!e$ ,e!ee !he c&m1* $ !he c&"&/!i'm ,2" #&/ !he &/2i% c1i!+ #ci+i!ie" e0!e$e$ ,* !he c&"&/!i'm !& !he

c&m1*. The 3&i! $&c'me!!i& i" v+i$ #&/ !h/ee *e/". The $&c'me!"

c&m1/i"i% 3&i! $&c'me!!i& /eK

• ;&/2i% C1i!+ c&"&/!i'm %/eeme!

• J&i! $ee$ $&c'me!!i&

• I!e/ "e %/eeme! ,e!ee ,2e/"

• Le!!e/ '!h&/i!* !& +e$ ,2 ,* &!he/ c&"&/!i'm ,2"

• Le!!e/ '!h&/i!* !& "ec&$ +e$ ,2 ,* &!he/ c&"&/!i'm ,2"• U$e/!2i% !& c/e!e ch/%e & !he ""e!" !he c&m1*.

•

• ALLOCATION OF LIMIT BY LEAD BANK

• SBI 11/i"e" !he +imi! & ,eh+# !he c&"&/!i'm. I! i c&"'+!!i& i!h

!he c&m1* $eci$e$ !he ++&c!i& !he +imi! !& v/i&'" mem,e/ ,2".

The ++&c!i& * mem,e/ ,2 c&! ,e hi%he/ !h !he +imi!


49/73

"c!i&e$ ,* i!. The $/i% 1&e/ #&/ i! #'$ ,"e$ +imi!" &'! !he

c&"&/!i'm /e $e!e/mie$ & !he ,"i" !he "!&c2 "!!eme! "',mi!!e$ ,*

!he c&m1*. HCL i" /e'i/e$ !& "',mi! !he "!&c2 "!!eme! !& ++ mem,e/

,2" i c&"&/!i'm #&/ eve/* m&!h.

•

• FINANCIAL FOLLO: UP REPORTS + FFRI 6 FFRII

• Eve/* '/!e/+* $ h+# '/!e/+* i!e/v+"- !he #i/m "',mi!" Fici+

F&++& U1 Re1&/!" I $ II. FFR I i" e0!/c! !he ,+ce "hee!. I !hi"

/e1&/!- !he c&m1* i" /e'i/e$ !& "',mi! !he $e!i+" "+e"- c'//e! ""e!"

$ c'//e! +i,i+i!ie" #&/ !he '/!e/ $ !he e"!im!e" #&/ !he c'//e! *e/.FFR II 8 !he c&m1* i" /e'i/e$ !& 1/e1/e P


50/73

• U$e/ "ec'/e$ +& c"h c/e$i!- +&% i!h & #'$ ,"e$ #ci+i!ie"- #&/ei%

c'//ec* !e/m +& #/&m ,2" /e "ec'/e$ ,* * h*1&!hec!i&

"!&c25i5!/$e- ,&&2 $e,!" " #i/"! ch/%e $ ,* * "ec&$ ch/%e &

++ !he imm&v,+e $ m&v,+e ""e!" !he 1/e! c&m1*. Te/m +& iI$i /'1ee" #/&m ,2 i" "',3ec! !& 1/i&/ ch/%e i #v&'/ c&m1*9"

,2e/" & ,&&2 $e,!" $ "!&c2 i !/$e #&/ &/2i% c1i!+ #ci+i!ie".

• UNSECURED

LOANS

• *0"' • *0"* • *0"" • *0"0

• SHORT TERM • 6>6= • 7>:.: • :.= • .=

• LON! TERM • 66 • 6 • 6.>6 • :76.=7

•

TOTAL •

6>66> •

76.: •

7::.=> •

:::.7• SHORT TERM • .: • .:= • 7.: • 7.:

• He/e HCL h" m3&/ 1&/!i& !hei/ #ici% $&e !h/&'%h "h&/! !e/m

#ici% !h +&% !e/m #ici%. The 1/e#e/ece "h&/! !e/m #ici% !&

+&% !e/m " "'ch i" &! !he 1/! * 1&+ic* em1+&*e$ ,* !he #i/m ,'! i!

"

• $'e !& !he /e"& !h! !he i!e/e"! /!e" i "h&/! !e/m e/e m&/e ive"!&/

#/ie$+* $ !he c&"! iv&+ve$ i !hem e/e +"& +&.

•

•

• RESEARCH METHODOLOGY

•

• T 56+7)- 6)896) 0 ()0,)( 9*()60*(*: + )

-+*-)5 ; “W+6

?6, @) *))( + 0') 0 -,)06 ()0 + @0 @+6 +@ =0*0:)( * HCL I*+)=> @0 06)

) ()6)* @0 * @- ) ?*0*-*: + @+6


51/73

•

• The m%eme! &/2i% c1i!+ iv&+ve" m%i% ive!&/ie"-

cc&'!" /eceiv,+e $ 1*,+e $ c"h. The/e#&/e &e +"& ee$" !&

hve "&'$ 2&+e$%e ,&'! c"h m%eme!- ive!&/* m%eme!

$ /eceiv,+e" m%eme!.

•

• The c&me" !he #ici% &/2i% c1i!+ /e'i/eme!- i.e. h& !he

&/2i% c1i!+ i" #ice$- h! /e !he v/i&'" "&'/ce" !h/&'%h hich i!

i" $&e.

• A$- i !he e$- "'%%e"!i&" $ /ec&mme$!i&" & *" #&/ ,e!!e/

m%eme! $ c&!/&+ &/2i% c1i!+ /e 1/&vi$e$.

•

•

•

•

•

•

• SCOPE OF THE STUDY

• T3,s >5o1e8t ,s 9,t2- to me ,n 2 s,=n,f,82nt 42y. It oes 329e some

,m>o5t2n8e fo5 t3e 8om>2ny too. T3ese 25e 2s fo--o4s G


52/73

•

• Thi" 1/&3ec! i++ ,e +e/i% $evice #&/ !he #ice "!'$e!.

• Th/&'%h !hi" 1/&3ec! I &'+$ "!'$* !he v/i&'" me!h&$" !he &/2i%

c1i!+ m%eme!.

• The 1/&3ec! i++ ,e +e/i% 1+i% $ #ici% &/2i% c1i!+.

• The 1/&3ec! &'+$ +"& ,e e##ec!ive !&&+ #&/ c/e$i! 1&+icie" !he

c&m1ie".

• Thi" i++ "h& $i##e/e! me!h&$" h&+$i% ive!&/* $ $e+i% i!h

c"h $ /eceiv,+e".

• Thi" i++ "h& !he +i'i$i!* 1&"i!i& !he c&m1* $ +"& h& $& !he*

mi!i 1/!ic'+/ +i'i$i!* 1&"i!i&.

•

•

•

•

•

•

•

•

•

•

•

•

•

LIMITATIONS OF THE STUDY:


53/73

•

•

• ;e c&! $& c&m1/i"&" i!h &!he/ c&m1ie" '+e"" $ '!i+

e hve !he $! &!he/ c&m1ie" & !he "me "',3ec!.

• O+* !he 1/i!e$ $! ,&'! !he c&m1* i++ ,e vi+,+e $ &!

!he ,c28e$ $e!i+".

• F'!'/e 1+" !he c&m1* i++ &! ,e $i"c+&"e$ !& !he !/iee".

• L"!+*- $'e !& "h&/!%e !ime i! i" &! 1&""i,+e !& c&ve/ ++ !he

#c!&/" $ $e!i+" /e%/$i% !he "',3ec! "!'$*.• The +!e"! #ici+ $! c&'+$ &! ,e /e1&/!e$ " !he c&m1*9"

e,"i!e" hve &! ,ee '1$!e$.

•

•

•

•

•

•

•

•

•

•

•

•


54/73

•

ANALYSIS

•

• •

•

•

•

• Industry analysis

• Financial graphs

• Concluding analysis

• Suggestions and recommendations• Bibliography


55/73

•

INDUSTRY ANALYSIS

•

INDUSTRY STRUCTURE AND DEVELOPMENTS

•

• O')6 ) 50 ()-0()> ) I*+6=0+* T)-*+,+: IT

*(96 0 )-+=) +*) + ) 0) :6+@*: *(96) *

I*(0> 56+5),,)( )5+6 ) *(96 0--+9*)( +6 =+6)

0* 0 8906)6 + I*(0 )6'-) )5+6 * 2%11%. T)

I*(0 0

)0,)( ),

• 0 0 56))66)( :,+0, +96-*: 0) * )) ):=)* 0*(

) 06) )5)-)( + -+**9) + 9), :6+@ * ) 996).

•

•


56/73

•

•

•

•

FINANCIAL GRAPHS

•

• !5oss B/s,ness In8ome

• C&"&+i$!e$ Reve'e #&/ !he *e/ %/e !& R". 66>> c/&/e".Se/vice" /eve'e %/e ,* :6- #/&m R". 7= c/&/e" !& R". : c/&/e" i!he c'//e! *e/. The C&m1&'$e$ A'+ G/&!h R!e (CAGR) #&/ !he

1/ece$i% #ive *e/" i" =>.

•

P5of,t efo5e T27

• PBT %/e ,* 66 #/&m- R". :> c/&/e" i !he 1/evi&'" *e/ !& R".=7 c/&/e" i !he c'//e! *e/. The C&m1&'$e$ A'+ G/&!h R!e(CAGR) #&/ !he 1/ece$i% #ive *e/" i" >:.


57/73

•

•

•

• P5of,t 2fte5 T27

• P/i! #!e/ !0 %/e ,* 6:- #/&m R". 7 c/&/e" i !he 1/evi&'"

*e/ !& R". :6 c/&/e". The C&m1&'$e$ A'+ G/&!h R!e (CAGR)#&/ !he 1/ece$i% #ive *e/" i" :. P/i!" #&/ !he c'//e! *e/ /e #!e/

1/&vi"i& #&/ R". 6 c/&/e" #&/ c'//e! !0 e01e"e- R". : c/&/e" #&/ $e#e//e$ !0 e01e"e $ R". = c/&/e" #&/ F/i%e Bee#i! T0.

•

• E25n,n=s Pe5 S325e


58/73

• B"ic EPS %/e #/&m R". 6. i !he 1/evi&'" *e/ !& R". 6. i

!he c'//e! *e/. Di+'!e$ EPS %/e #/&m R". 6.> i !he 1/evi&'" *e/ !&R". 6. i !he c'//e! *e/.

•

•

• D,9,en The C&m1* $i"!/i,'!e$ $ivi$e$" X 6 1e/ "h/e i ech

!he #i/"! !h/ee '/!e/" !he c'//e! *e/. The c&m1* 1/&1&"e" !& 1* #i+ $ivi$e$ 6 1e/ #'++* 1i$ '1 e'i!* "h/e R". 75

ech. The i!e/im $ivi$e$" 1i$ !&%e!he/ i!h 1/&1&"e$ #i+ $ivi$e$!&!+ !& = #&/ !he c'//e! *e/- e!i+i% &'!#+& R". 6> c/&/e"-ic+'$i% $i"!/i,'!i& !0.

•

• Net 4o5t3 S325e3o-e5s F/n


59/73

• Ne! ;&/!h %/e #/&m R". c/&/e" " ! 1/evi&'" *e/5e$ !& R".

c/&/e" " & J'e :- 76=. Sh/e c1i!+ " ! *e/5e$ i" R". :=c/&/e" $ivi$e$ i!& 6. c/&/e" "h/e" R". 75 ech. Re"e/ve" < "'/1+'"" ! *e/5e$ /e R". 7 c/&/e" #!e/ 11/&1/i!i% R" 6> c/&/e" #&/ $ivi$e$". B&&2 v+'e 1e/ "h/e %/e #/&m R". =6.: " ! J'e :- 76:!& R".>. " ! J'e :- 76=.

•

• Bo55o4,n=s Ye/5e$ +& ,+ce" ic/e"e$ #/&m R". > c/&/e" " &

J'e :- 76: !& R". 7: c/&/e" " & J'e :- 76=. The ic/e"e i +& ,+ce" " mi+* !& #'$ %/&!h i C&m1'!i% B'"ie"" ic+'$i%S*"!em I!e%/!i&. De,!5E'i!* /!i& De,!(De,!E'i!*)Z i" 77.

•

•

•

• CURRENT ASSET RATIO


60/73

•

•

•

•

•

•

•

•

•

• CONCLUDING ANAYSIS

•

• The &/2i% c1i!+ 1&"i!i& !he c&m1* i" "&'$ $ !he v/i&'"

"&'/ce" !h/&'%h hich i! i" #'$e$ /e &1!im+.

• The c&m1* h" '"e$ i!" $ivi$e$ 1&+ic*- 1'/ch"i%- #ice

• i% $ ive"!me! $eci"i&" !& %&&$ e##ec! c ,e "ee #/&m !he i#e/ece"

m$e e/+ie/ i !he 1/&3ec!.


61/73

• The $e,!" $&',!#'+ hve ,ee $&',+e$ &ve/ !he *e/" ,'! !hei/ 1e/ce!%e

& !he $e,!" h" +m&"! ,ec&me h+#. Thi" im1+ie" "+e" $ c&++ec!i&

1&+ic* !h! %e! +&% i!h !he /eceiv,+e" m%eme! !he #i/m.

• The /e!'/" hve ,ee ##ec!e$ ,* m/2e$ %/&!h i &/2i% c1i!+

$ !h&'%h 7.> i 76: /e!'/ & ive"!me! i" %&&$- ,'! i! %&!

/e$'ce$ " c&m1/e$ !& :.6 /e!'/ i 767.

• The v/i&'" /!i&" c+c'+!e$ /e i$ic!&/ " !& !he #c! !h! !he

1/i!,i+i!* !he #i/m $ "+e" /e & /i"e $ +"& !he $e+e!i& !he

ie##iciecie" i !he &/2i% c1i!+ m%eme!.

• The #i/m h" &! c&m1/&mi"e$ & 1/i!,i+i!* $e"1i!e !he hi%h +i'i$i!*

i" c&mme$,+e.

• HCL I#&"*"!em" h" /eche$ 1&"i!i& he/e !he $e#'+! c&"!" /e "

+& " e%+i%i,+e $ he/e !he* c /e$i+* #c!&/ !hei/ cc&'!"

/eceiv,+e" #&/ vi+i% #ice i" &!e&/!h*.

•

•

•

•

•

SUGGESTIONS AND RECOMMENDATIONS

•

• The m%eme! &/2i% c1i!+ 1+*" vi!+ /&+e i /'i%

"'cce""#'+ ,'"ie"". S&- !hi%" "h&'+$ %& i!h 1/&1e/ '$e/"!$i% #&/

m%i% c"h- /eceiv,+e" $ ive!&/*.

• HCL I#&"*"!em" i" m%i% i!" &/2i% c1i!+ i %&&$ me/- ,'! "!i++

!he/e i" "&me "c&1e #&/ im1/&veme! i i!" m%eme!. Thi" c he+1 !he

c&m1* i /i"i% i!" 1/i! +eve+ ,* m2i% +e"" ive"!me! i cc&'!"


62/73

/eceiv,+e" $ "!&c2" e!c. Thi" i ++ '+!im!e+* im1/&ve !he e##iciec* i!"

&1e/!i&". F&++&i% /e #e /ec&mme$!i&" %ive !& !he c&m1* i

chievi% i!" $e"i/e$ &,3ec!ive"K

• The ,'"ie"" /'" "'cce""#'++* i!h $e'!e m&'! !he &/2i%

c1i!+ ,'! !he c&m1* "h&'+$ "ee !& i! !h! !he c"h "h&'+$ &! ,e !ie$

'1 i e0ce""ive m&'! &/2i% c1i!+.

• Th&'%h !he 1/e"e! c&++ec!i& "*"!em i" e/ 1e/#ec!- !he c&m1* "

$'e !& !he ic/e"i% "+e" "h&'+$ $&1! m&/e e##ec!ive me"'/e" "& "

!& c&'!e/ !he !h/e! ,$ $e,!".

• The &ve/ 1'/ch"i% #'c!i& "h&'+$ ,e v&i$e$ " i! c&'+$ +e$ !&

+i'i$i!* 1/&,+em".

• The ive"!me! c"h i m/2e!,+e "ec'/i!ie" "h&'+$ ,e ic/e"e$- "

i! i" ve/* 1/i!,+e #&/ !he c&m1*.

• H&+$i% e0ce""ive $ i"'##icie! "!&c2 m'"! ,e v&i$e$ " i! c/e!e"

,'/$e & !he c"h /e"&'/ce" ,'"ie"" $ /e"'+!" i +&"! "+e"-

$e+*" #&/ c'"!&me/"- e!c /e"1ec!ive+*.•

•

•

•

•

BIBLIOGRAPHY•

•

F&++&i% "&'/ce" hve ,ee "&'%h! #&/ !he 1/e1/!i& !hi" /e1&/!K

• C+65+60) I*60*)

• F*0*-0, S0)=)* A**90, R)5+6

• D6)- *)60-+* @ ) )=5,+)) + ) -+=50*

• I*)6*) @@@.-,*+)=.*

• T)++


63/73

I.M.P0*()

K0* 0*( J0*

P600**0 C0*(60

•

•

•

•

•

•

•

•

•

•

•

•

• APPENDICES

• FINANCIAL STATEMENTS FOR HCL INFOSYSTEMS LTD.

•

L ast 4 year Balance Sheet:

• Currency in

Millions of Indian Rupees• As

of:

• Jun

30

2011Restat

ed

• Jun

30

2012Resta

ted

• Jun 30

2013Reclassif

ied

• Jun

30

2014

•

• Assets • • • • •

• Cash and Equivalents • 1,452!• 2,512"

• 2,14#2 • 1,#"$5

•


64/73

•%hort&'er( Invest(ents

•114)

• 1,5"!

$ •

!,1!""

• 2,#!#

#

•

• '*'A+ CA% A-. %*R' 'ERM

I-/E%'ME-'% • 1,5$"1

• 4,0)$

! • 5,2)$#

• 4,#1$

4

•

• Accounts Receivale • 4,!#04• $,10!

1 • ",$#14

• 10,52

00

•

• *ther Receivales • 22)2• 4005 • 4$)1 • 5#!4

•

• '*'A+ RECEI/A+E% • 4,$1)"• $,50!

$ • ),15#5

• 11,11

!4

•

• Inventory • 2,)042• !,4#!

# • 4,$#$1

• ",#1)

)

•

• 3repaid Epenses • 10"0• 1$!0 • 14$0 • 2)")

•

• *ther Current Assets • 2!) • 5$4 • )$) • )4)

•

• '*'A+ CRRE-' A%%E'% • #,120)• 14,!0

!2

• 1),!"5! • 24,!2

12

•

• 6ross 3roperty 3lant and Equip(ent • 1,40$1• 1,404

" • 1,"!1#

• 2,4!1

0

•

• Accu(ulated .epreciation • &"4#1 • &

"44# • &)524

• &

#$$5

•

• -E' 3R*3ER'7 3+A-' A-. E8I3ME-' • $5"0• $5#) • )"#5 • 1,4$45

•


65/73

•6ood9ill

•&&

•&&

•02

•0)

•

• +on&'er( Invest(ents • 2,1#0# • && • && • &&

•

• .eferred 'a Assets, +on 'er( • 5#1 • && • && • &&

•

• *ther Intaniles • && • #5! • !24 • !0#

•

• *ther +on&'er( Assets • && • 51 • "1) • 1$0

•

• TOTAL ASSETS• 12,027.

9

• 15,06

3.4• 19,359.2

• 25,3

3.4

•

• • • • •

•

• L!A"!L!T!ES # E$%!T& • • • • •

• Accounts 3ayale • !,!#0$• 4,100

# • 5,#$4)

• ),2#)

5

•

• Accrued Epenses • 1004• 1010 • 1404 • 20#)

•

• %hort&'er( orro9ins • &&• !0"# • ")4# • 1,1)2

4

•

•Current 3ortion of +on&'er( .et;Capital +ease

•$#04

•4##$

•04

•)#25

•


66/73

• Current Inco(e 'aes 3ayale • !01 • )0# • ""4 • 252)

•

• *ther Current +iailities, 'otal • 2,#14$• !,!""

! • 4,$)"#

• 5,21$

$

•

• nearned Revenue, Current • 5!$4• #$5) • 55"# • ""52

•

• TOTAL '%RRE(T L!A"!L!T!ES • 7,662.6• 9,433

.4• 12,213.7

• 16,2

7.

•

• +on&'er( .et • 15) • "2 • $01 • 2)40

•

• .eferred 'a +iaility -on&Current • 10#0 • "!5 • 10"$ • 124)

•

• *ther -on&Current +iailities • 1!# • !) • 10 • &&

•

• '*'A+ +IAI+I'IE% • ",)01!• #,51"

# • 12,!)24

• 1",2!

$$

•

• Co((on %toc< • !2)#• !!44 • !!"5 • !!)!

•

• Additional 3aid in Capital • $"!#• ))!" • 1,0445 • 1,0)"

#

•

• Retained Earnins • !,1#!2• 4,2#"

! • 5,5$52

• ",141

4

•

• Co(prehensive Inco(e and *ther • !0$ • !01 • 2#$ • 2#2

•


67/73

• TOTAL 'O))O( E$%!T& • 4,226.6• 5,545

.5• 6,976.

• ,596

.

•

• TOTAL E$%!T& • 4,226.6• 5,545

.5• 6,976.

• ,596

.

•

• TOTAL L!A"!L!T!ES A(* E$%!T&• 12,027.

9

• 15,06

3.4• 19,359.2

• 25,3

3.4

•

•

•

•

•

•

•

•

•

•

•

•

•

•

••

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•


68/73

• FINANCIAL STATEMENTS FOR HCL INFOSYSTEMS LTD.

•

• L 2st ( ye25 C2s3 F-o4 St2tement

• I 76=- c"h /e"e/ve" ! HCL I#&"*"!em" L!$. #e++ ,* 67.M. H&eve/- "

1e/ce! /eve'e"- !hi" ch%e " "imi+/ !& !he IT Se/vice" i$'"!/*

me$i. B* +&&2i% ! !he C"h F+& S!!eme!- +*"!" c e"i+* "ee !he

"&'/ce" $ '"e c"h %ee/!e$ !h/&'%h&'! !he *e/.

•

• Currency in

Millions of Indian Rupees• As

of:

• Jun

30

2011Resta

ted

• Jun

30

2012Resta

ted

• Jun 30

2013Reclassifi

ed

• Jun

30

2014

•

• -E' I-C*ME • 1,"51

1

• 2,2"

"0 • 2,)0!$

• !,15

#5

•

• .epreciation = A(orti>ation • 1)01 • 152

4 • 124!

• 144

0

•

• A(orti>ation of 6ood9ill and Intanile Assets • && • && • && • 41 •

• .E3RECIA'I*- = AM*R'I?A'I*-, '*'A+ • 1)01 • 152

4 • 124!

• 14)

1

•

• @6ain +oss fro( %ale of Asset • &04 • &1$ • 05 • 0$

•

• @6ain +oss on %ale of Invest(ent • &"#$ • &)4# • &$15 • &552 •

• Asset Britedo9n = Restructurin Costs • 00 • 05 • && • && •

•

*ther *peratin Activities •

2#2) •

!12 •

"#$

• 2"1

)

•


69/73

• 3rovision = Brite&off of ad .ets • 14) • 144 • "2 • #2 •

• Chane in Accounts Receivale•

&1,5#!4

•

&1,##!4

• &1,"24"•

&!,15))

•

• Chane in Inventories • &42!!• &

$)#"

• &1,2022• &

!,222"

•

• Chane in Accounts 3ayale • 1,4"1

)

• 1,5$

1$ • 2,"5#5

• !,11

22

•

• CA% R*M *3ERA'I*-% • 1,$140

• 1,2$"5

• 2,")$! • 2$4"

•

• Capital Ependiture • &1)0"• &

2$")

• &424!• &

$"45

•

• %ale of 3roperty, 3lant, and Equip(ent • !5 • 10" • )0! • 1$ •

• Invest(ents in Mar

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