Professional Documents
Culture Documents
TECHNOLOGIES
CHAPTER-I
INTRODUCTION
The Project has been done in IIR TECHNOLOHIES, CHENNAI.
The title of the project is A Study on the Working Capital Management.
The study starts with a Companys profile and also the need for study,
review of literature and objectives are set out for the study. Research
methodology, Data analysis & Interpretation, Findings and Suggestions of
the study follow.
One of the main areas of the project is the analysis part, where the
data are analyzed & interpreted, to find out the working capital. Some of the
tools used in working capital are regarding to:
Ratio Analysis
Comparative Financial Statements.
Trend Analysis.
And then conclusions, limitations & scope for further study were
discussed
The need for current assets tends to shift over time. Some of these
changes reflect permanent changes in the firm as is the case when the
inventory and receivables increases as the firm grows and the sales become
higher and higher. Other changes are seasonal, as is the case with increased
inventory required for a particular festival season. Still others are random
reflecting the uncertainty associated with growth in sales due to firm's
specific or general economic factors.
Each of the areas- Stock (raw materials, WIP, and finished goods),
trade debtors, cash (positive or negative) and trade creditors can be viewed
as tanks into and from which funds flow.
Working capital is clearly not the only aspect of a business that affects
the amount of cash.
The business will have to make payments to government for
taxation.
Fixed assets will be purchased and sold
Lessors of fixed assets will be paid their rent
Shareholders (existing or new) may provide new funds in the
form of cash
Some shares may be redeemed for cash
Dividends may be paid
Long-term loan creditors (existing or new) may provide loan
finance, loans will need to be repaid from time-to-time, and
Interest obligations will have to be met by the business
Unlike, movements in the working capital items, most of these non-
working capital cash transactions are not every day events. Some of them
are annual events (e.g. tax payments, lease payments, dividends, interest
and, possibly, fixed asset purchases and sales). Others (e.g. new equity and
loan finance and redemption of old equity and loan finance) would typically
be rarer events.
RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.
The formidable problem that follows the task of defining the research
problem is the preparation of the design of the research project, popularly
known as the research design. Decisions regarding what, where, when,
how much, by what means concerning an inquiry or a research study
constitute a research design.
DATA SOURCE:
PRIMARY DATA
The primary data are those which are collected a fresh and for the first
time, and thus happened to be original in character. Primary data include the
information collected from the officials and existing company through
discussions.
SECONDARY DATA
Secondary data means that are already available i.e. they refer to the
data which have already been collected and analyzed by someone else.
Secondary data may either be published data or unpublished data. Usually
published data are available in various publications of the central, state, local
governments. Also in technical and trade journals, books, magazines and
newspapers, reports and publications of various associations connected with
business and industry, banks, stock exchanges reports prepared by research
scholars universities in different fields
This study is period for the annual reports and statements of accounts
extended from the years
SOFTWARE PROFESSIONALS:
SOME COMMON CHARACTERISTICS
Based on the survey conducted with software professionals and the
way they were described by senior IIR TECH, project IIR TECH and HR
professionals in software organizations, other employees of the different I.T.
workers and some common characteristics of Indian software professions
have emerged and these characteristics are: o Software professionals invest
substantial time, efforts and resources to acquire relevant and valid
knowledge. Over time the knowledge acquired by them becomes their self-
concept.
Software professionals look forward to use their knowledge and
acquire new knowledge on a continuous basis. This is significant for
software professions to experience a sense of growth and nurture their
concept of growth.
Software Professionals tend to be highly analytical and hence they
expect rationale for every activity. They expect that they should be involved
in defining and planning every organizational change affecting them.
Software professionals tend to be high achievers and hence they
expect periodical and tangible feedback and recognition for performance.
Since reward system is perceived, as a part of the feedback system, linking
performance with reward and experiencing equity in reward becomes very
important issues with them.
Software professionals want to work on new technologies, new
platforms and with new organizations to improve their learning and
curriculum vitae. o Software professionals are more committed to their
profession than the organization they work for.
Due to existing demand on supply situation, software professionals
are able to move from their existing organizations to new organizations in
India or abroad rather fast.
Software professionals value autonomy, professionalism and
innovativeness.
HISTORY OF THE IIR TECHNOLOGIES
On May 13 at the annual meeting, new representatives of the
shareholders were elected to the Supervisory Board. Previously on May 7,
employee representatives were decided by the employees of Software IIR
TECH.
In April, Software IIR TECH was able to welcome Evalueserve in its
partner ecosystem. In this context Evalueserve is acting as a consultant and
value-added reseller for advice and solutions around the analysis of large
data streams.
In March, Software IIR TECH announced its initiative
"Transformation to the Cloud", which helps companies determine optimal
strategies for cloud adoption and implementation.
In January, Software IIR TECH and AG Ltd. established a common
streaming analytics solution platform that provides real-time information for
the market of the Internet of Things (IoT).
2014
In October at the annual international customer conference Innovation
World, Software IIR TECH presented the advancement of its BPE product
portfolio and introduced the first Digital Business Platform.
In August, Software IIR TECH announced the expansion of the
Management Board by a new member with global responsibility for sales,
marketing and services.
In the first quarter Software IIR TECH announced the sale of its SAP
consulting business to the Scheer Group GmbH and completed the
transaction on May 31.
At the end of May, Software IIR TECH celebrated its 45th
anniversary. Software IIR TECH is the oldest global software company in
Europe.
In April, Software IIR TECH announced that JackBe, a real-time
visual analytics and intelligence software provider acquired by Software IIR
TECH, was recognized by the Association for Corporate Growth as the
Strategic M&A deal of the Year within the $100M category.
In March at CeBIT, Hanover, Germany, Software IIR TECH unveiled
its Intelligent Business Operations Platform to address the business
challenges posed by the explosive growth in the number of interconnected
personal devices and digital sensors.
In February, Software IIR TECH announced the publication of The
Digital Enterprise: The Moves and Motives of the Digital Leaders, a tour-
de-force introduction to CEO Karl-Heinz Streibich's vision of the impact
digital transformation is having across all industries, supported by more than
20 examples from companies around the globe.
2013
On August 22, Software IIR TECH announced the acquisition of
JackBe Corporation, a privately-held company with headquarters in Chevy
Chase, Maryland (USA) and a provider of real-time visual analytics and
intelligence software.
On June 13, Software IIR TECH announced that it has purchased the
Apama Complex Event Processing Platform of Progress Software. The
platform provides an environment for the design and operation of CEP
applications providing tools and graphical analysis and test capabilities for
analysts, developers and administrators.
On June 3 2013, Software IIR TECH acquired alfabet IIR TECH.
Alfabet is a leading software provider in the areas of "Enterprise
Architecture" and "IT Portfolio Management" focusing on the planning and
optimization of IT landscapes.
In April 2013, Software IIR TECH bought the US cloud platform
provider Long Jump. The Platform as a Service offers a range of ready-made
modules and templates for building and running business applications in the
public or private cloud settings.
In March 2013, Software IIR TECH invested in Berlin-based
company meta quark, which is specialized in mobile solutions. The aim is to
jointly develop the web Methods Mobile Suite of Software IIR TECH. This
allowed the company to access especially to the innovative know-how of
meta quark.
2012
In October, Software IIR TECH unveils a major update to its web
Methods product suite. Extending its fully independent integration layer,
web Methods 9.0 focuses on uniting the management of Big Data from any
source with automated business processes and applications deployed in the
cloud, on mobile devices or in-house.
Also in October, Software IIR TECH launches a major update to its
ARIS product suite, combining new Cloud, Mobile, Social and Analytic
technologies, at its Process World event in the USA today. ARIS 9.0 focuses
on accelerating process improvement by allowing a significantly broader set
of corporate skills and experiences to contribute to process design and
testing.
In April, Software IIR TECH acquires the company my-Channels
for Universal Messaging Technology. With it, Software IIR TECH customers
have a single, universal messaging middleware platform across the
enterprise, across the cloud and to mobile apps.
In early March at CeBIT, Software IIR TECH announces its strategy
for the in-memory management of Big Data, up to 1,000 times faster than
current technologies.
2011
At the end of the year, Software IIR TECH wins the European
Business Award for its international growth strategy.
In November, Software IIR TECH presents Software IIR TECH
Cloud Ready, the latest solution in the companys cloud strategy.
In late May, Software IIR TECH acquires UK-based Metismo Ltd.,
Hampshire. Metismo provides an extremely flexible and multi-functional
platform for the development of applications and automatic transformation
into different mobile device formats.
In early May, Software IIR TECH acquires Terracotta Inc., the US
based leader in in-memory and cloud enabling technology. This acquisition
allows Software IIR TECH to provide innovative cloud solutions and
dramatically increase the performance and scalability of its Business Process
Excellence platform. Terracottas in-memory processing will provide the
foundation technology for Software IIR TECHs cloud and Big Data
offerings.
In March at CeBIT, Software IIR TECH presents its new positioning,
which will focus on software and solutions for enterprise business process
management. This cutting-edge concept, based on independent process and
integration platforms, enables businesses to overcome the limitations of
conventional software applications. Software IIR TECH is also
demonstrating its fully integrated product portfolio, for the first time since
its acquisition of IDS Scheer, under the name Enterprise BPM and is
establishing itself as the world's largest provider of this innovative platform
technology. In addition, new products for master data management (web
Methods One Data) and complex event processing (web Methods Business
Events) are being presented at CeBIT.
In February, Software IIR TECH announces its Cloud strategy
Software IIR TECH Cloud Ready. Software IIR TECH fully supports the
vision of extreme collaboration with cloud enabling technology to facilitate
faster change and process improvement with greater participation from all
key stakeholders. Software IIR TECH Cloud Ready includes modeling,
process management, Service-Oriented Architecture (SOA) and cloud
integration offerings. It is designed to bring business and technical
stakeholders together to collaborate on process transformation quickly, and
at a lower cost.
In February, Software IIR TECH ranked # 7 in Bloomberg
Businessweek's Hot Tech 50, making us one of the worlds fastest growing
technology companies.
In January Software IIR TECH reported that Group revenues in fiscal
year 2010 hit a record high of 1.12 billion (2009: 847.4 million),
exceeding the target set in 2007 and a year earlier than originally planned.
In January Software IIR TECH introduces Process Intelligence for
webMethods BPMS customers. The process intelligence product adds
strategic and tactical capabilities to webMethods BPMS. It includes business
dashboards, historical process discovery, interactive analytics, process
benchmarking, and organizational analysis.
2010
In December the legal integration of Software IIR TECH and IDS
Scheer IIR TECH has been completed with the registration of the merger in
Germany. The fusion of both companies into one legal entity has established
a new global player offering software and services for Business Process
Excellence.
In October Software IIR TECH acquires New Jersey-based Data
Foundations, a leading provider of Master Data Management (MDM)
software. Linking Business Process Management and MDM will reduce
complexity, deliver accurate data and maximize process quality
In September Software IIR TECH delivers a new generation of
Business Mashups with ARIS MashZone 2.0. With the Enterprise Edition,
the product addresses large companies as well.
In August Software IIR TECH is named a Leader in Business Process
Management Suites by the independent research form Forrester Research,
Inc. Software IIR TECH receives its top scores in services as well as process
modeling and collaborative design
In August the Software IIR TECH Supervisory Board establishes a
new company governing body: the Group Executive Board (GEB). The GEB
consists of four members from the current Management board plus four
divisional directors representing the operational Management areas.
In July IDS Scheer IIR TECHs annual general meeting approved the
merger Agreement with Software IIR TECH by a majority of 92,03 % of the
share capital on July 8, 2010. This is another important step in the
integration of Software IIR TECH and IDS Scheer IIR TECH.
In June Software IIR TECH and IDS Scheer demonstrate how
business process excellence technology helps organizations to return to
economic growth at Process World in Berlin. Over 800 participants from
around the globe attend.
In May Software IIR TECH is ranked as leader in delivering service-
oriented architecture (SOA) Governance technologies to the marketplace by
Gartner, Inc., a leading industry analyst firm. The ranking, based on total
software revenue in 2009, represents the second consecutive year in which
Software IIR TECH is listed as the global market leader in SOA
Governance.
In March ARI Salign, the first joint product of Software IIR TECH
and IDS Scheer, is presented at CeBIT 2010.
In February Software IIR TECH announces that it has registered the
domination and profit transfer Agreement between SIIR TECH Beteiligungs
GmbH and IDS Scheer on the commercial register at the Saarbrucken
District Court. As a result of the registration, the integration of the
operational processes of both begins. The two companies are under common
leadership.
In February Software IIR TECH announces general availability of
webMethods 8, the latest release of Software IIR TECHs flagship
webMethods platform.
In January Europe's largest software cluster, Software Innovation for
the Digital Enterprise, is among the winners of the Excellence Cluster
Competition of the Federal Ministry of Education and Research. This cluster
is considered the Silicon Valley of Europe, spanning centers located in
Darmstadt, Kaiserslautern, Karlsruhe, Saarbrcken and Walldorf. Software
IIR TECH is part of it.
2009
The document for a voluntary public tender offer made to
shareholders of IDS Scheer IIR TECH is published on August 17th.
Software IIR TECH tenders 15 per share in cash.
Software IIR TECH announces its takeover offer for IDS Scheer IIR
TECH on July 13th. The strengths of Software IIR TECH: technology
leadership in middleware software, financial strength and a global presence
will complement IDS Scheers strengths: the modelling, implementation and
controlling of business processes, a strong partner network and a large
service presence in their approx. 7,500 customer base.
At the beginning of July, Software IIR TECH acquires Teconomic IIR
TECH in an all cash deal. Based in Freienbach, near Zrich, Switzerland,
Teconomic provides comprehensive IT consulting services and solutions to
the European financial sector focusing on SWIFT Services.
In June, Software IIR TECH announces the latest release of its
flagship webMethods platform, webMethods 8.0. The release enhances the
ability of companies to capitalize on both open architecture and existing
infrastructure investments, reduces the time and cost to improve processes
and integrate systems, and enables dramatic end-user productivity through
tighter collaboration between IT and the business.
Software IIR TECH celebrates its 40th anniversary on May 30th. The
company was founded in 1969 in Darmstadt as Europes first software
company. The company is entering its fifth decade of developing innovative
technology as independent market leader in business process software.
With its new product, AlignSpace, Software IIR TECH creates the
largest social network of BPM professionals. The new product is a platform
that offers collaboration between all project participants in a Business
Process environment. Data, documents and services produced within this
environment are made available and reusable within or across company
borders. Leading social networks can also be easily plugged-in.
Software IIR TECH takes a 51 percent shareholding in Leipzig-based
software company it Campus, as of April 1, 2009. By joining forces with
itCampus, Software IIR TECH expands its German research and
development capacity in the realm of process automation.
Software IIR TECH appoints Ivo To tev to the Executive Board with
responsibility for Professional Services worldwide.
2008
Various independent market research firms have designated Software
IIR TECH a leader in the SOA
and BPM sectors, demonstrating the successful integration of the
webMethods product line into the overall product portfolio.
The acquisition of Jacada (Israel) strengthens Software IIR TECHs
position in the application modernization market: Jacada counts more than
200 customers in the integration business. Furthermore, the acquisition
expands Software IIR TECHs product portfolio with additional products for
modernizing the user interfaces of applications that run on mainframes and
medium-sized computers.
Software IIR TECH is strengthening its Professional Services in
response to an increased demand for consulting services relating to strategic
SOA and BPM projectscreating a new position for professional services
on the board, occupied by the distinguished Holger Friedrich.
In April, Software IIR TECH pays shareholders dividends of 1.00
per share.
2007
Software IIR TECH successfully acquires webMethods, Inc.
(NASDAQ: WEBM) a leading business integration and optimization
software company. With a deal value of $546 million, this merger was one of
the largest pure software deals in the history of the European IT industry.
The combination creates a new global leader in business infrastructure
software with over 4,000 enterprise customers worldwide and is one of the
largest independent vendors in the rapidly growing Service-Oriented
Architecture (SOA) and Business Process Management (BPM) markets.
Again Software IIR TECH achieves best financial results in the
companys history: Operating revenues improve by 36% (at constant
currency rates), Licensing revenues grow by 53% (at constant currency
rates), EBIT rises by 23%, Free cash flow increases by 46%, EBIT margin
guidance for 2008 revised upward to 24%.
2006
Software IIR TECH announces Adabas 2006 and Natural 2006. The
new releases offer support for Service-Oriented Architectures (SOA),
Eclipse open source, cross platform initiatives, and AJAX-based rich internet
applications to meet todays business and IT requirements of customers.
Launch of crossvision the new suite for SOA in February 2006.
In May Software IIR TECH pays a dividend of 0.80 per share.
Expansion in high-growth Latin America with a new office in Sao
Paulo, major projects in Brazil, Chile and Panama, and an IT Training
Center Chile.
Software IIR TECH and Fujitsu earn Intelligent Enterprise
Magazines Editors' Choice Award for SOA and BPM Solutions - SOA,
ESB, BPM products and expertise makes the Software IIR TECH and
Fujitsu partnership a "Global Force in BPM".
Launch of the CentraSite Community: the first standards-based SOA
Forum Partner Alliance and interactive forum unite independent software
vendors and system integrators to deliver interoperable SOA solutions to
customers.
Expansion in Japan: in December Software IIR TECH officially opens
its office in Tokyo. The new office will directly serve the companys well
established Japanese customer base of over two hundred enterprises.
The best financial results in company history: for fiscal 2006,
Software IIR TECH reports revenue growth of 10% to 483.0 million. At
constant currency rates, this represents an 11% rise and exceeds the
companys target. In the same period, EBIT increased by 15% to 111.2
million.
2005
With total revenues of 438 million and an operating income of
96.4 million Software IIR TECH reported record operating results for fiscal
2005.
Driven by the positive earnings trend Software IIR TECH paid a
dividend of 0.75 Euro for the business year 2004 - the first dividend since
2002.
Software IIR TECH formed strategic alliances with Fujitsu as well as
IDS Scheer. Together with Fujitsu the company delivered a joint integration
offering for Service Oriented Architecture (SOA). With IDS Scheer Software
IIR TECH widened their SOA product portfolio to include the design and
monitoring of business processes.
Software IIR TECH released certified adapters for the integration of
mainframes into the SAP R3 and Netweaver landscape. The company
became a service partner of SAP Germany.
By acquiring the software specialists Sabratec (modernisation of
mainframes) and Casabac (development software for enterprise wide web
applications) Software IIR TECH further enhanced its XMLi-portfolio. The
organic growth of Software IIR TECH is strengthened by the acquisitions of
technology and sales competence: through the acquisition of APS Venezuela
and five sister companies in Panama, Costa Rica and Puerto Rico the
company further expanded its market presence in Central America and the
Caribbean.
2004
Software IIR TECH celebrates two anniversaries in 2004: the 35th
year since its foundation and the 5th year since its stock market quotation.
2003
In a strategic realignment implemented in 2003, Software IIR TECH
focuses its development work and offering on the ETS and XML Business
Integration business lines.
In conjunction with iGATE, Software IIR TECH establishes Software
IIR TECH India in the Indian city of Pune. Software IIR TECH has a
majority share in the new company.
In October Karl-Heinz Streibich becomes the new CEO.
The executive board is given an international focus in spring 2003
with three new regional board members.
Software IIR TECH is listed on the TecDAX index at the beginning of
the year.
2002
Dr. Erwin Knigs steps down from the executive board. Karl Heinz
Achinger, deputy chairman of the Supervisory Board, takes over as CEO on
an interim basis.
German President Johannes Rau presents Peter Schnell with the Gold
Medal of the Federal Association of Foundations in Germany for his
foundation work. The Software IIR TECH Foundation is one of Germanys
ten largest foundations and disburses financial support amounting to around
25 million euro annually.
Software IIR TECH announces record sales of over 588 million euro
for 2001.
2001
Software IIR TECH continues to develop its products: Natural 5 for
Windows can process XML documents and access the Web directly via
HTTP; development of EntireX results in a complete solution for integration
of platforms and applications within and between organizations, and
enhancements to Tamino XML Server makes it easier for users to handle
XML data. Tamino XML Servers open architecture guarantees customers
smooth linkage to and communication with existing IT infrastructure.
Takeover of SIIR TECHA Systems, Inc., USA. After the takeover,
around 35% of Software IIR TECH sales are accounted for by the American
market.
2000
At the end of the year, Software IIR TECH introduces the Tamino
XML Platform the worlds first product platform entirely based on XML.
The arrival of the new millennium presents no problems for Software
IIR TECH or its customers.
1999
Software IIR TECH is listed on the Frankfurt stock exchange on April
26 in what was at the time the worlds biggest ever software industry IPO.
The total issue volume is over DM 850 million. After only 6 months,
Software IIR TECHs shares are included in the MDAX stock index.
At CeBIT, Software IIR TECH unveils its Tamino Information Server
to the general public for the first time. Tamino is a completely new
information server for the Internet comprising a database system based on
the new Web standard XML (eXtensible Markup Language). Tamino is
especially designed for the storage, Management and transfer of structured
and unstructured data.
1998
Software IIR TECH introduces Bolero, a software platform based on
Java technology.
1997
The investment firm Thayers Capital acquires all the shares of
Software IIR TECH North America, which subsequently trades under the
name SIIR TECH Americas (SIIR TECHA).
Software IIR TECH and SAP IIR TECH jointly establish the
subsidiary SAP Systems Integration GmbH in Alsbach-Hhnlein near
Darmstadt, in which Software IIR TECH has a 40% interest. SAP SI focuses
on introducing the SAP R/3 application system in selected market segments.
EntireX is introduced. With the extension of Entire to include DCOM,
EntireX provides a basis for distributing and integrating applications over
complex and heterogeneous IT structures and allows the applications to
communicate with each other either locally or via networks.
In a technology partnership with Microsoft, Software IIR TECH ports
DCOM (Distributed Component Object Model) to the main computer
platforms available on the commercial market. Microsoft introduced DCOM
as a component of Windows NT and it has become the industry standard
alongside CORBA (Common Object Request Broker Architecture). Since
Windows NT is being installed on more and more computers, the integration
of the Microsoft technology with existing applications on mainframes and
UNIX systems becomes ever more important.
1996
Company founder Peter Schnell hands over company Management to
Dr. Erwin Knigs in order to devote himself fully to Foundation
development work.
1994
After negotiations with Siemens Nixdorf IIR TECH, Software IIR
TECH takes over SQL-Datenbanksysteme GmbH in Berlin, so gaining full
access to the Adabas D technology.
Software IIR TECH opens an office in Moscow and establishes a
subsidiary in Taipei, Taiwan.
1992
First Eastern Europe subsidiary is founded in Prague.
Announcement of cooperation with SAP IIR TECH. This
collaboration opens up new opportunities for solutions: the SQL-DB
database system gives users of SAPs R/3 application system a more
efficient and cost-effective solution.
Launch of Entire integration tools. Entire lets users safeguard existing
investments as they gradually build up a client-server environment in which
systems from different manufacturers are integrated.
COMPANY PROFILE:
Integrated Intelligent Research (IIR) is center for research
empowerment to disseminate and innovative research activities in the field
of Computer Science Application and engineering. The research activities
attempts to integrate the applied domain Knowledge of next generation
computing through sustain research identification, execution of project and
share the knowledge via publications with the peer and targeted group
which has similar interest. As part of the research work we are interested to
publish the journals for knowledge sharing process.
Integrated Intelligent Research (IIR) was started by the IIR group for
software development services in India in 1968. IIR started the software
services by developing punched card facilities for IIR employees. The first
overseas client for IIR was Burroughs Corporation, United States. The job of
IIR was to write software code for the Burroughs machines in 1974. With
word of mouth, IIR grabbed a number of projects, small and big during the
following years and today IIR is India's top IT company with a turnover of
more than $10 billion. In 1966, Azim Premji became the chairmen of the
large company WIPRO and the focus of WIPRO was concentrated on the IT
services sector.
IIR TECH Computer Systems started developing software and
providing services since the beginning of the company in 1972 (At that time
it was named Data Conversion Inc). In 1981, Infosys was founded by
Narayan Murthy and his colleagues. Infosys was completely committed
towards providing quality software services and also developed an IT
business model which was later followed by most of the IT companies in
India.
The Indian economy during this period was completely controlled by the
Indian Government and there were strict restrictions and regulations for
private business entities in India. Hence there was no major growth in the
IT sector in India till 1991.
The Indian government had strict control over the private business
entities in India before liberalisation of economy in 1991. Moreover, the
wide area networks and internet lines were completely controlled by the
central government. As a result, the Indian IT sector was totally held back
due to these restraints on the functioning of the software services providers.
Another major event for Indian IT industry post the 1991 reforms
was the Y2K bug. Fear of a complete breakdown of computer services, the
US corporations outsourced all the equipment and upgrading work to
Indians. The task of rectifying the Y2K bug was thrown to the Indians and as
a result the modification of all the codes and softwares, which were initially
designed till a date of 1999 was to be edited and huge work was outsourced
to the Indian IT industries. The Indian IT industry has helped provide a
national GDP of more than 6% since these economic reforms took place 20
years ago and today, India is known as the IT hub of the world.
National Task Force, NTP and IT Act, 2000 helped IT sector grow in
India
During that time Indian economy was state-controlled and the state
remained hostile to the software industry through the 1970s. Import tariffs
were high (135% on hardware and 100% on software) and software was not
considered an "industry", so that exporters were ineligible for bank finance.
Government policy towards IT sector changed when Rajiv Gandhi
became Prime Minister in 1984. His New Computer Policy (NCP-1984)
consisted of a package of reduced import tariffs on hardware and software
(reduced to 60%), recognition of software exports as a "delicensed industry",
i.e., henceforth eligible for bank finance and freed from license-permit raj,
permission for foreign firms to set up wholly-owned, export-dedicated units
and a project to set up a chain of software parks that would offer
infrastructure at below-market costs. These policies laid the foundation for
the development of a world-class IT industry in India.
Today, Indian IT companies such as Tata Consultancy Services (IIR),
Wipro, Infosys, HCL et al are renowned in the global market for their IT
prowess. Some of the major factors which played a key role in India's
emergence as key global IT player are:
Indian Education System
The Indian education system places strong emphasis on mathematics
and science, resulting in a large number of science and engineering
graduates. Mastery over quantitative concepts coupled with English
proficiency has resulted in a skill set that has enabled India to reap the
benefits of the current international demand for IT.
Competitive Costs
The cost of software development and other services in India is very
competitive as compared to the West.
Infrastructure Scenario
Indian IT industry has also gained immensely from the availability of
a robust infrastructure (telecom, power and roads) in the country.
In the last few years Indian IT industry has seen tremendous growth.
Destinations such as Bangalore, Hyderabad and Gurgaon have evolved into
global IT hubs. Several IT parks have come up at Bangalore, Hyderabad,
Chennai, Pune, Gurgaon etc. These parks offer Silicon Valley type
infrastructure. In the light of all the factors that have added to the strength of
Indian IT industry, it seems that Indian success story is all set to continue.
CHAPTER III
REVIEW OF LITERATURE
REVIEW OF LITERATURE
The term working capital refers to the amount of capital which is readily
available to an organization. That is, working capital is the difference
between resources in cash or readily convertible into cash (Current Assets)
and organizational commitments for which cash will soon be required
(Current Liabilities).
Current Assets are resources which are in cash or will soon be converted into
cash in "the ordinary course of business".
Current Liabilities are commitments which will soon require cash settlement
in "the ordinary course of business".
CURRENT ASSETS:
Inventory
Bank Overdraft
Three key points need to be taken into account when analyzing financial
ratios:
Stock Turnover;
Debtors Ratio;
Creditors Ratio.
Current Assets
Current Liabilities
The working capital ratio (or current ratio) attempts to measure the
level of liquidity, that is, the level of safety provided by the excess of current
assets over current liabilities.
Liquid Assets
Cost of Sales
This ratio applies only to finished goods. It indicates the speed with
which inventory is sold-or, to look at it from the other angle, how long
inventory items remain on the shelves. It can be used for the inventory
balance as a whole, for classes of inventory, or for individual inventory
items.
DEBTOR RATIO
Average Debtors
Day-to-day during the 30 day period and pay 30 days after a statement
is rendered, a collection period of 45 days (the average between 30 and 60
days) would be satisfactory.
CREDITOR RATIO
This ratio is much the same as the debtor ratio. It expresses the
relationship between credit purchases and the liability to creditors. It can be
stated as the number of days that credit purchases are carried on the books.
Average Creditors
5.1CURRENT RATIO
Inference:
This ratio is an indicator of the firms commitment to meet its short-
term liabilities. The company has not had adequate current assets. An ideal
current ratio 2 is considered as a safe margin of solvency due to the fact that
if the current assets are reduced to half (i.e.) instead of 2 then also the
creditors will able to get their payments in full. However a business having
seasonal trading activity may show a lower current ratio at a certain period
of the year. A very high current ratio is also not desirable since it means
efficient use of funds. The company is not desirable in efficient use of
funds.
12
10 2011-2012
2012-2013
8 2013-2014
2014-2015
6
2015-2016
4
WORKING RATIO
YEAR SALES CAPITAL ( Times )
(Rupees) (Rupees)
2011-2012 98492557 1128214709 0.09
2012-2013 136214101 241219109 0.56
2013-2014 148087677 1084194229 0.14
2014-2015 121535360 1112742261 0.12
2015-2016 85410661 828319091 0.10
Inference:
This ratio indicates whether working capital has been effectively
utilized in making sales or not.
From the table it is noted that working capital had some fluctuation in
the middle of the study period, yet the company was able to increase it in the
later years.
Hence the turnover indicates that company had utilized its working
capital efficiently and the company can also try to work on this to get more
effective values.
12
10.05
10 8.69
8 7.12
5.69
6 4.75
0
5.3 INVENTORIES TO CURRENT ASSETS
CURRENT RATIO
YEAR INVENTORIES ASSETS ( Times )
(Rupees) (Rupees)
2011-2012 443218275 1259369408 0.35
2012-2013 4565366544 1607087538 0.28
2013-2014 493646982 857669926 0.41
2014-2015 478946594 1135662118 0.42
2015-2016 453879119 1139098939 0.43
Inference:
From the table it is known that the inventories to current assets ratio
also register a fluctuating trend during the entire study period.
The average ratio is 0.41 times and thus it is found that the investment
in inventories is kept at the considerable level.
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
Inference:
From the table shows the details of cash to current assets ratio and
registered a fluctuating trend throughout the study period from 21129 to
2094.
The average cash to current assets is maintained at proper times.
Hence we find that company had moderate level of cash in proportion to
current assets.
0.4 0.37
0.35
0.15
0.1
0.05
WORKING RATIO
YEAR CASH CAPITAL ( Times )
(Rupees) (Rupees)
2011-2012 472165527 1128214709 0.45
2012-2013 357614655 241219109 0.15
2013-2014 521248923 1084194229 0.48
2014-2015 306643076 1112742261 0.29
2015-2016 241319457 828319091 0.29
Inference:
The cash to working capital ratio registered a fluctuating trend during
the study period this is noted from the table.
The average ratio of cash to working capital is balanced. Hence it is
found that the working capital ratio is managed by using the cash & bank
balance available in the company.
0.48
0.5 0.45
0.45
0.4
2011-2012
0.35 0.29 0.29
2012-2013
0.3
2013-2014
0.25
2014-2015
0.2 0.15
2015-2016
0.15
0.1
0.05
0
RATIO
YEAR CASH SALES ( Times )
(Rupees) (Rupees)
2011-2012 472165527 98492557 4.79
2012-2013 357614655 136214101 2.62
2013-2014 521248923 148087677 3.52
2014-2015 306643076 121535360 2.52
2015-2016 241319457 85410661 2.82
Inference:
This is one of the important ratios of controlling cash. A study of cash
to sales ratio will provide a deep insight into the cash balance held in the
concerns.
Evident from the table shows cash to sales registered a fluctuating
trend throughout the study period.
CURRENT RATIO
YEAR CASH LIABILITIE ( Times )
(Rupees) S
(Rupees)
2011-2012 472165527 221154699 2.14
2012-2013 357614655 184830664 1.93
2013-2014 521248923 121307697 4.33
2014-2015 306643076 112919857 2.71
2015-2016 241319457 220779845 10.9
Inference:
From the table it is noted that the cash position of the company is
satisfactory as the average ratio.
It is found that the cash required to meet out the current liabilities is
maintained at a normal level hence its shows that company follows an
average policy.
12 10.9
10
2011-2012
8 2012-2013
2013-2014
6 4.33 2014-2015
4 2.71 2015-2016
2.14 1.93
2
Inference:
The level of current assets can be measured by using this current asset
to fixed assets ratio.
From the table it is noted that the ratio is between the average ratio
and this indicates the company had a moderate current asset policy
throughout the study period.
1
0.5
0
Inference:
From the table shows the current assets to total assets ratio of the
company, which registered a fluctuating trend throughout the study period.
This ratio implies that company is maintaining a considerable level of
current assets in proportion to total assets.
0.87
0.9
0.8
0.65 0.64 0.63
0.7 0.61
2011-2012
0.6 2012-2013
0.5 2013-2014
0.4 2014-2015
0.3 2015-2016
0.2
0.1
0
Inference:
From the table working capital ratio registered a fluctuating trend
during the study period this is noted.
Hence it is found that the working capital ratio is managed by using
the cash & bank balance available in the company.
TREND ANALYSIS:
Y = a + bX
Where a = Y ; b = XY
n X2
TABLE 5.11
INVENTORIES
Inventories
YEAR X X2 (Rs ) XY
Y (Rs)
2011-12 -2 4 4,43,218,275 -8,866,436,550
2012-13 -1 1 4,56,536,544 -4,56,536,544
2013-14 0 0 4,93,646,982 0
2014-15 1 1 4,78,946,594 4,78,946,594
2015-16 2 4 4,53,879,119 9,07,758,148
TOTAL 5 10 2,326,227,424 43,731,558
(Source: Annual Report)
a = 2,326,227,424 = 4,65,245,484.8
5
b = 43,731,558 = 4,373,155.8
10
Inventories value in 2094-14 will be about 1,31,19,467.4 lakh.
TABLE 5.12
CASH / BANK
Cash / Bank
YEAR X X2 (Rs ) XY
Y (Rs)
2011-12 -2 4 4,72,165,527 -9,44,331,144
2012-13 -1 1 3,57,614,655 -3,57,614,655
2013-14 0 0 5,21,248,923 0
2014-15 1 1 3,06,643,076 3,06,643,076
2015-16 2 4 2,41,319,457 4,82,638,914
TOTAL 5 10 20,92,339,562 11,87,644,681
(Source: Annual Report)
a = 20,92,339,562 = 41,84,667,912.4
5
b = 11,87,644,681= 11,81,644,681
10
TABLE 5.13
RECEIVABLE
RECEIVABLE
YEAR X X2 (Rs) XY
Y (Rs)
2011-12 -2 4 3,26,151,232 -65,23,622,464
2012-13 -1 1 3,19,961,287 -3,19,961,287
2013-14 0 0 2,96,585,354 0
2014-15 1 1 3,14,999,942 3,14,999,942
2015-16 2 4 12,11,157,554 24,13,315,108
TOTAL 28 56,095.28 41,322.97
(Source: Annual Report)
A = 8090.75
5
b = 41,322.97 = 1,475.82
28
TABLE 5.14
CURRENT LIABILITIES
Current
YEAR X X2 Liabilities XY
(Rs) (Rs)
Y
a = 8,60,092,765 = 17,2108,553
5
b = 40,52,660,509 = 4,14,266,140.9
10
TABLE 5.15
BILLS PAYABLE
BILLS
X X2 PAYABLE XY
a = 4,98,208,587 = 99,641,717.4
5
b = -2,288,993 = -228,899.3
10
FINANCIAL STATEMENTS:
They help in making interfered and inter firm comparisons and also
highlights the trends in performance effeminacy, and financial position.
Table 5.16
COMPARATIVE BALANCESHEET OF
IIR TECHNOLOHIES INDUSTRIES CHENNAI (2011AND 2012)
PARTICULARS 2011 2012 (+) (or) (-)
(Rs) (Rs) In 2101 over 2111
Amount Percentag
e
ASSETS
CURRENT
ASSETS 443218275 456536544 13318269 3.09%
Stock 7498550 9128550 154090 20.54%
Deposits 326151226 319961287 -6189945 -1.87%
Bill Receivable 141649658 136081699 -5567959 -3.93%
Sundry debtors 9443311 90721130 -3711975 -3.93%
Cash in hand 4 12,39142129 92799539 -3.93%
Cash at bank 2,3608276
4
TOTAL (A) 124912357 1239142129 -9891539 -9.32%
8
FIXED ASSETS
Fixed Assets 445335336 445335336 - -
TOTAL (B) 445335336 445335336 - -
TOTAL ASSETS
(A+B) 169436891 1684477369 -9891545 -5.837%
4
LIABILITIES:
CURRENTLIBILI
TY: 16069414 22107922 6128517 37.57%
Sundry creditors 291414861 235281009 -55234.782 -19.10%
Bill Payable
TOTAL (C) 306584266 257388121 49196235 -16.13%
CAPITAL&RESE
RVE: 277556924 35677233 155673887 56%
Capital .6 4.5 41231113 -5.40%
Profit & loss a/c 763281556 856253611.8
LONGTERM
LOANS 346946162 21406340 -58125822 -16.75%
Loans 9.7
TOTAL 169436891 1684477369 -9891539 -5.83%
LIABILTIES 4
Table 5.17
COMPARATIVE BALANCESHEET OF
IIR TECHNOLOHIES INDUSTRIES CHENNAI (2012 AND 2013)
LONGTERM
LOANS 2140634 277135831. 62982431 29.42%
Loans 09 7
TABLE 5.18
COMPARATIVE BALANCESHEET OF
IIR TECHNOLOHIES INDUSTRIES CHENNAI (2014 AND 2015)
LONGTERM
LOANS 3078287 - -307828714 -109%
Loans 14
TABLE 5.19
COMPARATIVE BALANCESHEET OF
THE AUROMODE & CO
AS ON 31st MARCH (2015 AND 2016)
FINDINGS:
Cash to current assets ratio has huge fluctuations during the period.
Cash position in of the company has uneven trend.
Uneven trend in networking
The company has its working capital ratio has been above the
standard norms during the period 2112-11, 11-12, 12-13.
Liquidity position of the company is satisfied.
Current assets are not properly utilized by the concern towards the
turnover.
Working capital turnover ratio in the year 2100 better when compare
to the previous year.
The company has spent huge expenses.
SUGGESTION:
The cash position of the company has not been properly maintained.
So the company has to make an effort to reduce the expenses and also
cash to current assets ratio.
Company can utilize their assets properly.
Modernized equipments can purchase.
From current ratio, overall ratio was above the accepted norms of 0.5.
so the company has to reduce the overall ratio avoid the unnecessary
cash kept in ideal.
Company can properly maintain their debtors to sales turnover ratio.
A Working capital ratio has been maintained below the norms.
CONCLUSION
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