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A REPORT

A project ReportOnworking capital management in hcl infosystems limitedsubmited Bymr.kapare abhilash prakashSUBMITED TOUNIVERSITY OF PUNEUNDER GUIDENCE OFPRO. NIMBOLKAR.V IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE

BACHOLOR OF BUSIN0ESS ADMINISTRATIO

(BBA Sem VI)

FOR THE ACADMIC YEAR(2013-2014) SGGP COLLEGEBBA/BCA/B.C&B .COM JATEGAON BK.

ACKOWLEDGEMENT

Achievement is finding out what you would be then doing, what you have to do. The higher the summit, the harder is the climb. The goal was fixed and we began with a determined resolved and put in ceaseless sustained hard work. Greater challenge, greater was our effort to overcome it.This project work, which is my first step in the field of professionalization, has been successfully accomplished only because of my timely support of well-wishers. I would like to pay my sincere regards and thanks to those, who directed me at every step in my project work.I would also like to thank the faculty members and the staff members of HCL Infosystems Ltd. for their kind support and help during the project.

TABLE OF CONTENTS Acknowledgement Exicutive summary1. Introduction The problems Objective of the project2. HCL Infosystems An Overview Companys history Management team Corporate information3. Conceptual Framework Introduction to Working Capital Management Inventory management Cash management Receivables management Managing payables (Creditors) Financing current assets Working capital & short-term financing4. Analysis Industry analysis Financial graphs Concluding analysis Suggestions and recommendations Bibliography5. Appendices

EXECUTIVE SUMMARY

This project is based on the study of working capital management in HCL Infoystems. An insight view of the project will encompass what it is all about, what it aims to achieve, what is its purpose and scope, the various methods used for collecting data and their sources, including literature survey done, further specifying the limitations of our study and in the last, drawing inferences from the learning so far. HCL Infosystems Limited (HCL), is a leading domestic computer hardware and hardware services company. HCL is engaged in selling manufactured ( like PCs, servers, monitors and peripherals) and traded hardware ( like notebooks, peripherals) to institutional clients as well as in retail segment. It also offers hardware support services to existing clients through annual maintenance contracts, network consulting and facilities management.The working capital management refers to the management of working capital, or precisely to the management of current assets. A firms working capital consists of its investments in current assets, which includes short-term assetscash and bank balance, inventories, receivable and marketable securities. This project tries to evaluate how the management of working capital is done in HCL Infosystems through inventory ratios, working capital ratios, trends, computation of cash, inventory and working capital, and short term financing.

INTRODUCTION

The problemsObjective of the prpject

INTRODUCTION:

The project undertaken is on WORKING CAPITAL MANAGEMENT IN HCL INFOSYSTEMS LIMITED. It describes about how the company manages its working capital and the various steps that are required in the management of working capital.

Cash is the lifeline of a company. If this lifeline deteriorates, so does the company's ability to fund operations, reinvest and meet capital requirements and payments. Understanding a company's cash flow health is essential to making investment decisions. A good way to judge a company's cash flow prospects is to look at its working capital management (WCM).

Working capital refers to the cash a business requires for day-to-day operations or, more specifically, for financing the conversion of raw materials into finished goods, which the company sells for payment. Among the most important items of working capital are levels of inventory, accounts receivable, and accounts payable. Analysts look at these items for signs of a company's efficiency and financial strength. The working capital is an important yardstick to measure the companys operational and financial efficiency. Any company should have a right amount of cash and lines of credit for its business needs at all times.

This project describes how the management of working capital takes place at HCL Infosystems.

OBJECTIVE OF THE PROJECT

The objectives of this project were mainly to study the inventory, cash and receivable at HCL Infosystems Ltd., but there are some more and they are - The main purpose of our study is to render a better understanding of the concept Working Capital Management. To understand the planning and management of working capital at HCL Infosystems Ltd. To measure the financial soundness of the company by analyzing various ratios. To suggest ways for better management and control of working capital at the concern.

HCL INFOSYSTEMS AN OVERVIEW

Companys historyManagement teamCorporate information

HCL INFOSYSTEMS LIMITED

AN OVERVIEW ABOUT THE COMPANYHCL Infosystems is no flash in the Information Technology pan. Founded in 1976, the firm has climbed into pantheon of India's corporate giants on the strength of its IT products and services. HCL Infosystems specializes in IT hardware (PC's and servers, as well as networking, imaging and communications products), and system integration services serving the domestic Indian market. In addition to its consumer products, the company provides commercial IT products, facilities management, network services, and IT security services for clients in such industries as government, financial services, and education. HCL Corporation owns significant stakes in HCL Infosystems (about 44%) and sister company HCL Technologies.HCL Infosystems Ltd, a listed subsidiary of HCL, is an India-based hardware and systems integrator. It claims a presence in 170 locations and 300 service centres. Its manufacturing facilities are based in Chennai, Pondicherry and Uttarakhand .Its headquarters is in Noida.HCL Peripherals (A Unit of HCL Infosystems Limited) Founded in the year 1983, has established itself as a leading manufacturer of computer peripherals in India, encompassing Display Products, Thin Client solutions, Information and Interactive Kiosks. HCL Peripherals has two Manufacturing facilities, one in Pondicherry (Electronics) and the other in Chennai (Mechanical) .The Company has been accredited with ISO 9001:2000, ISO 14001, TS 16949 and ISO 13485.

HISTORY

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. The highlights of the HCL saga are summarized below:

Y E ARH I G H L I G H T S

1976 - Foundation of the Company laid- Introduces microcomputer-based programmable calculators with wide acceptance in the scientific / education community

1977 - Launch of the first microcomputer-based commercial computer with a ROM -based Basic interpreter - Unavailability of programming skills with customers results in HCL developing bespoke applications for their customers

1980 - Formation of Far East Computers Ltd., a pioneer in the Singapore IT market, for SI (System Integration) solutions

1983 - HCL launches an aggressive advertisement campaign with the theme ' even a typist can operate' to make the usage of computers popular in the SME (Small & Medium Enterprises) segment. This proposition involved menu-based applications for the first time, to increase ease of operations. The response to the advertisement was phenomenal. -HCL develops special program generators to speed up the development of applications

1986 - Zonal offices of banks and general insurance companies adopt computerization- Purchase specifications demand the availability of RDBMS products on the supplied solution (Unify, Oracle). HCL arranges for such products to be ported to its platform.- HCL assists customers to migrate from flat-file based systems to RDBMS

1991 - HCL enters into a joint venture with Hewlett Packard - HP assists HCL to introduce new services: Systems Integration, IT consulting, packaged support services ( basic line, team line )

1994 - HCL acquires and executes the first offshore project from IBM Thailand- HCL sets up core group to define software development methodologies

1995 - Starts execution of Information System Planning projects - Execution projects for Germany and Australia - Begins Help desk services

1996 - Sets up the STP ( Software Technology Park ) at Chennai to execute software projects for international customers - Becomes national integration partner for SAP

1997- Kolkata and Noida STPs set up- HCL buys back HP stake in HCL Hewlett Packard

1998 - Chennai and Coimbatore development facilities get ISO 9001 certification

1999 - Acquires and sets up fully owned subsidiaries in USA and UK- Sets up fully owned subsidiary in Australia - HCL ties up with Broadvision as an integration partner

2000 - Sets up fully owned subsidiary in Australia- Chennai and Coimbatore development facilities get SEI Level 4 certification- Bags Award for Top PC Vendor In India- Becomes the 1st IT Company to be recommended for latest version of ISO 9001 : 2000- Bags MAIT's Award for Business Excellence- Rated as No. 1 IT Group in India

2001-Launched