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<p>CERTIFICATE</p> <p>Certificate</p> <p>This is to certify that Amanjyot kaur and research report entitled WORKING CAPITAL MANAGEMENT IN HCL INFOSYSTEM LTD. is approved and is acceptable in quality and form.</p> <p>_______________Faculty Guide </p> <p>date:________________ </p> <p>Place: :_______________DECLARATION</p> <p>I hereby declare that the project report entitled: </p> <p>A Research Report on WORKING CAPITAL MANAGEMENT IN HCL INFOSYSTEM LTD. submitted in partial fulfillment of the requirement for the degree of BBA, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes.</p> <p>Place: Noida</p> <p>Date: _________</p> <p>ACKNOWLEDGEMENT</p> <p>I wish to express my gratitude to all that concerned persons who have extended their kind help, guidance and suggestions without which it could not have been possible for me to complete this project report.</p> <p> I am deeply indebted to my guide Mr. Atul Sahu and Mr. Gaurav for his valuable guidance and support at all time. </p> <p>My sincere thanks to all those people who has provided me all the necessary information throughout this research report has been successfully completed at time.</p> <p>TABLE OF CONTENTS Page No PART 1 CHAPTER 1 </p> <p>1.1Introduction of the problem.</p> <p>5</p> <p>1.2 Title of the project.</p> <p>6</p> <p>1.3 Executive Summary </p> <p>7</p> <p>1.4Background of the problem undertaken.</p> <p> 91.5Rationale of the study.</p> <p>101.6Limitations and Scope of the study.</p> <p>11</p> <p>CHAPTER 2 </p> <p>2.1 HYPOTHESIS </p> <p>13</p> <p>2.2SWOT ANALYSIS </p> <p>13</p> <p>CHAPTER 3 </p> <p>3.1RESEARCH METHODOLOGY </p> <p>16</p> <p>3.2Research Design </p> <p>16</p> <p>3.3Data Collection Instrument </p> <p>18</p> <p>CHAPTER 4</p> <p>4.1Review of Literature Working Capital Management.244.2Finding Analysis</p> <p>25</p> <p>4.3Working Capital Financing.</p> <p>53</p> <p>4.4Cash Management.</p> <p>63</p> <p>4.5Receivables Management.</p> <p>79</p> <p>4.6Inventory Management.</p> <p>87</p> <p>4.7 HCL Infosystems Ltd.</p> <p>97</p> <p>CHAPTER 5</p> <p>5.1Conclusion </p> <p>5.2Recommendation </p> <p>CHAPTER 6 </p> <p>Bibliography.</p> <p>CHAPTER 1PROFILE OFTHE COMPANYTITLE OF THE PROJECTThe title of the project is Working Capital Management and the management of its components at HCL InfosystemsLtd.</p> <p>Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In 1978, HCL developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India. This micro-computer virtually gave birth to the Indian computer industry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP.</p> <p>HCL's R&amp;D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 28 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many more.</p> <p>Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane.</p> <p>HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. We have been in the forefront in introducing new technologies and solutions. </p> <p>In the early 70s a group of young and enthusiastic and ambitious technocrats embarked upon a venture that would make their vision of IT revolution in India a reality. Shiv nadir and five of his colleagues got together and 1975 set up a new company MICROCOMP to start with; they started to capitalize on their marketing skills. Micro comp marketed calculators and within a few month of starting operation, the company was out selling its major competitors.</p> <p>On 11th August, 1976 HINDUSTAN COMPUTERS LIMITED was incorporated as joint venture between the entrepreneurs and UPSCE, with an initial equity of Rs.1.83 Lacs. </p> <p>Also I have gathered information from financial bulletin, annual reports and company magazines.</p> <p>With the valuable information and time imparted by executives and employees to me and from the informations gathered by me from secondary sources, I have been able to make a complete analysis of the components of working capital.</p> <p>In the analysis of components of working capital, a detailed analysis of current assets current liabilities have been done.HCL infosystems ltd. HCL technologies ltd.(corporate office) (Registered Office)Address AddressHCL Infosystems Ltd. 806, Siddharth,E-4,5 &amp; 6, Sector 11, 96, Nehru Place,NOIDA 201 301, UP New Delhi,110019India India</p> <p>Tel &amp; Fax Tel &amp; faxTel: +91 120 2526518/19, 2520977 Tel: 011-26444812Fax: 2550923 </p> <p> Fax: 011-26436336Prefix from Delhi: 95120 </p> <p> Email-id:investors@hcl.com Web Id:</p> <p> http://www.hcltech.comThe HCL of Today</p> <p>This year (2007-08), IT industry is expected to grow by 20% over 2007, as per IDC, which is amongst the highest rates of growth in the world. With employment to 2.13 crore households already in place, the National e-Governance Plan (NEGP) is surging ahead with investments of Rs. 23,000 crores planned for initial five years, for identified core projects.</p> <p>HCL Infosystems Ltd, with annual revenue of US$ 2.7 Bn (Rs.11,855 crores) is Indias premier information enabling and ICT System Integration company offering a wide spectrum of ICT products that includes Computing, Storage, Networking, Security, Telecom, Imaging and Retail. HCL is a one-stop-shop for all the ICT requirements of an organization.</p> <p>Indias leading System Integration and Infrastructure Management Services Organization, HCL has specialized expertise across verticals including Telecom, BFSI, E-Governance &amp; Power.</p> <p>HCL has Indias largest distribution and retail network, taking to market a range of Digital Lifestyle products in partnership with leading global ICT brands, including Nokia, Apple, Casio, Kodak, Toshiba, Bull, Ericsson, Cisco, Microsoft, Konica Minolta and many more.</p> <p>HCL today has Indias largest vertically integrated computer manufacturing facility with over three decades of electronic manufacturing experience HCL desktops is the largest selling brand into the enterprise space.</p> <p>With Indias largest ICT services network that reaches to every corner of India, HCLs award winning Support Services makes it the preferred choice of enterprise and consumers alike.HCL Enterprise is a leading global technology and IT enterprise with annual revenues of US $4.1 Bn (Rs. 17,889 crores). The HCL Enterprise comprises two companies listed in India - HCL Technologies &amp; HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is Indias original IT garage start-up. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises over 47,000 professionals of diverse nationalities, who operate from 17 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms.</p> <p>HCLS BUSINESS MODEL</p> <p>1.2 NATURE OF THE ORGANISATIONHCL Infosystems manufacturing facilities are ISO 9001 - 2000 &amp; ISO14001 certified and adhere to stringent quality standards and global processes. With the largest installed PC base in the country, HCL Infosystems owns the brand of indigenously developed and manufactured,most popular PC 'Ezeebee', 'Busybee' 'Beanstalk' and 'Infiniti' -and its robust manufacturing facilities; HCL Infosystems aims to further leverage its dominance in the PC market. It has been consistently rated as Top player in PC industry by IDC. A strong dominance also prevails in verticals like Finance, Government, and Education &amp; Research. The Channel Business ofHCL Infosystems has an extensive network of over 2500+ resellers across 300 locations. It has actively promoted the penetration of PCs and Laptops in the home and the small office/home office (SOHO) segments. </p> <p>As a leading information enabler, HCL infosystems has long standing relationships with world technology leaders such as SUN for enterprise computing solutions, Intel and AMD for PCs &amp; PC Servers; Microsoft, Novell and SCO for operating systems and software solutions; Toshiba Corp. for business automation equipment ;SAP AG for specialist ERP solutions; and Oracle, Sybase and Informix for RDBMS platform, EMC, Veritas for storage solutions. The aim is to straddle the entire landscape ofinformation enabling technology far more comprehensively, effectively and competitively. Indeed, a vision to create enterprises of tomorrowScope of the study</p> <p>Vision Statement</p> <p>It is the most preferred employer and principal taking leading edge IT &amp; Telecom products and services to the masses through sustained excellence.</p> <p>Mission Statement</p> <p> We shall increase the awareness of HCL PALOMINO-IP PBX and increase the sale of EAPBX product of HCL INFOSYSTEM.</p> <p> Advantage of DGS&amp;D</p> <p> Finding the needs of customer through mailing</p> <p>Quality Policy Statement</p> <p>We will deliver defect-free products, services and solutions to meet the requirements of our external and internal customers the first time, every time.</p> <p>mAN-POWER SIZE OF THE ORGANIZATION</p> <p>HCL Infosystems continues to invest in strong people management initiatives. The total employee strength was 6165. HCL was rank no.3 in Best Companies to Work For in India conducted by</p> <p>BT, TNS, Mercer.</p> <p>Employee engagement continues to be a key focus area with many initiatives organized during this quarter towards 'Celebrating Diversity' &amp; encouraging appreciation for individual strengths. In response to modern day lifestyle changes, various programmes have been adopted to improve the wellbeing &amp; fitness of the employees.</p> <p>TURNOVER SIZE OF THE ORGANIZATION</p> <p> Consolidated</p> <p> Revenue at Rs. 3140 crores.</p> <p> Services revenue at Rs. 172 crores, a growth of 41% Y-o-Y.</p> <p> Profit before tax at Rs. 81 crores.</p> <p> Profit after tax at Rs. 55 crores.</p> <p> EPS at Rs. 3.2 per share.</p> <p> Computer Systems</p> <p> Revenue at Rs. 818 crores. PBIT at Rs. 37 crores.</p> <p> Telecommunication &amp; Office Automation</p> <p> Revenue at Rs. 2325 crores. PBIT at Rs. 61 crores.</p> <p>Second Interim dividend of Rs. 1.5/- per share (75%% on an equity share of par value of Rs. 2/- each) declared for the quarter.product range of the company Computing Products </p> <p>Offering an entire range of Computing Products for Corporate, Businesses and Small to Large Setups.</p> <p> Office Automation Imaging &amp; Printing Solutions</p> <p>Introducing world class imaging products and solutions to meet business requirements Display Products </p> <p>Introducing great display products that you would love setting your eyes on.</p> <p> Office Automation Telecom &amp; AVSI Solutions </p> <p>Introducing world class telecom products and AVSI solutions to meet business requirements.</p> <p> Storage Solutions</p> <p> Offering an entire range of storage solutions. Office Automation Document Management Solutions &amp; System Integration </p> <p>Wide Range of turnkey solutions which cater to the requirement of Document Management, Homeland Security &amp; Vehicle Tracking.</p> <p> Software Licenses </p> <p> Enjoy benefits of genuine software licenses through HCL Iinfosystems.</p> <p> Networking Products </p> <p>Enjoy fast data transfer with our exclusive range of Networking Products.</p> <p> POS, KIOSK, Customer Service Counter Products</p> <p>Offering an entire range of POS products and solutions. </p> <p> Software Solutions </p> <p> Bringing to you world class software solutions.</p> <p> Racks &amp; Enclosures </p> <p>HCL offers a comprehensive range of 19 racks with standard accessories for Computer networking applications and IP Enclosures of all standards. </p> <p>CURRENT LEADERSHIP</p> <p>Technology Leadership:</p> <p>HCL Infosystems is known to harbinger of technology in the country. The company has done technology introductions in the country either through research and development or through partnerships with world technology leaders. Using own research and development the company has:</p> <p> Created own UNIX and RDBMS capability (in80s).</p> <p> Developed firewalls for enterprise and personal system security.</p> <p> Launched own range of enterprise storage products.</p> <p> Launched own range of enterprise networking products.</p> <p>HCL Infosystems Ltd. has initiated several pioneer technologies. Some of them are as under:</p> <p> .Countrys first desktop PC- Busy Bee in 1985.</p> <p> Countrys first home PC- Beanstalk in 1995</p> <p> Countrys first Pentium IV based PC at sub 40k price point.</p> <p> Countrys first media centre PC. </p> <p>CHAPTER 2 </p> <p>SWOT ANALYSIS OF THE COMPANY</p> <p>Hypothesis </p> <p>In my view my study of the working capital management has certain limitation. Because I just spent only four weeks in the HCL INFOSYSTEM LTD. And whatever information during that short period I could gather, I working upon that. Thus my study does not present and overall view of the working capital management at HCL INFOSYSTEM LTD..</p> <p>SWOT ANALYSIS </p> <p>STRENGTH &amp; WEAKNESSES</p> <p>STRENGTH</p> <p> Strong technological base.</p> <p> Highly skilled professionally qualified workforce.</p> <p> Adoption of innovative fuel optimization. </p> <p> Outage management.</p> <p>WEAKNESSES The manpower at HCL INFOSYSTEM LTD. is in excess that is a burden.</p> <p>OPPORTUNITIES &amp; THREATSOPPORTUNITIES</p> <p> HCL INFOSYSTEM LTD. has become a generic name in the power generation. So, company has great opportunities in such market if services will be regular with reasonable prices.</p> <p> Diversification in the areas of conventional and non-conventional power generation.</p> <p> THREATS</p> <p> If competitor is providing electricity at more reasonable prices than HCL INFOSYSTEM LTD. , then the customers of the company are attracted towards them.</p> <p> Expansion of thermal power plants and hydro power plants.</p> <p>CHAPTER 2</p> <p>OBJECTIVE &amp;RESEARCH METHODOLOGY</p> <p>RESEARCH METHODOLOGY</p> <p>Methodology includes the overall research procedures, which are followed in the researc...</p>