Submitted By: AMIT ARORA Enrolment No: M090700005 Dated: 16 Sep,2009 Submitted To: Dr.


y Information management has become a powerful

resource and a large expense for many organizations.
y Helps in decision making at various levels.
o Environmental management o Creation of slack resources o Optimum utilization of resources

y Facility information model y Plant information model y Building information model y Flow of information in an ORGANIZATION y VERTICALLY y HORIZONTALLY

y Computer Age or Information Era y Use of INTERNET - Digital Revolution

y Information management (IM) y To control the structure & functioning of Org. y understanding of the technology y information management entails organizing,

retrieving, acquiring and maintaining information y practice of Data Management

y vast need for decision making y prevent individuals from acting strictly rational y access, collect and evaluate all environmental

information y decision at a reasonable price, i.e., time and effort y design strategies for organization

y Reduction of information processing needs
y Environmental management y Creation of slack resources y Creation of self-contained tasks

y Increasing the organizational information processing

y Creation of lateral relations y Vertical information systems

y formal records of the financial activities of a business,

person, or other entity y financial statements are often referred to as accounts y an overview of a business or person's financial condition in both short and long term.

y Balance sheet: reports on a company's assets, liabilities,

and Ownership equity as of a given point in time.

y Income statement: also referred to as Profit and Loss

statement (or a "P&L"), reports on a company's income, expenses, and profits over a period of time. a company's retained earnings over the reporting period.

y Statement of retained earnings: explains the changes in

y Statement of cash flows: reports on a company's cash

flow activities, particularly its operating, investing and financing activities.

y Owners and managers require financial statements to

make important business decisions
y Employees also need these reports in making collective

bargaining agreements (CBA)
y Investors make use of financial statements to assess

the viability of investing in a business.

y Financial institutions use them to decide whether to

grant a company with fresh working capital or extend debt securities y Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes y Vendors require financial statements to assess the creditworthiness of the business.

y An Annual report is a comprehensive report on a

company's activities throughout the preceding year.
y Gives shareholders and other interested persons

information about the company's activities and financial performance.

y Balance statement of financial position
y summary of a organization's balances y Includes Assets, Liabilities & Ownership Equity y Equity = Assets - Liabilities

y Cash flow statement
y provide information on a firm's liquidity and solvency y information for evaluating changes in assets, liabilities

and equity y indicate the amount, timing and probability of future cash flows

y Income statement [(P&L) and Statement of

y The purpose of the P&L is to show managers and

investors whether the company made or lost money
y Operating section y Revenue y Expenses

y field of accountancy concerned with the preparation of

financial statements y fundamental need for financial accounting is to reduce principal-agent problem y used to prepare accounting information for people outside the organization y help managers make decisions to manage the business.

y Financial analysis is performed on statements to

provide management with a more detailed understanding of the figures. y statements are also used as part of management's annual report to the stockholders. y Employees or labor union need these reports in discussing their compensation, promotion and rankings.

y Financial analyses are often used by Investors and are

prepared by financial analysts, thus providing them with the basis for making investment decisions. y Project stakeholders
y a) Sponsor a project y b) Have an interest in a project.

y Examples : customers, the user group, the project

manager, the testers, etc.

y Formulating strategies y Planning and constructing business activities y Helps in making decision y Optimal use of Resource (economics) y Supporting financial reports preparation y Safeguarding asset

y CREDITORS y It is a person or institution to whom money is owed
y Accounting classification

y Long-term liabilities
y 'Long-term creditors'

y Current liabilities
y 'Current creditors'

y objective of financial statements is to provide

information about the financial position y useful to a wide range of users in making economic decisions y Financial statements should be understandable, relevant, reliable and comparable

y Media and the general public are also interested in

financial statements for a variety of reasons y describe management's performance and the company's financial highlights. y effective way for corporations to communicate with individual shareholders.

1. How important is financial reporting to a technology company? y To understand the strategy of performance y Single window for our investors to look into our operations and aspirations. y To understand financial values of the company

2. Philosophy of Infosys y Under promise, Over Delivery 3.Financial reporting as a part of business strategy. y To assess the viability y Helps customer to understand the strategy

4. Financial disclosure results in competitive disadvantage y It should not create asymmetry of benefits y We believe to disclose, when in doubt 5. Summary of annual report to retail investors y It is worthwhile for the company as well as for customers .

6. PRESSURE ON MANAGERS ‡ Globalization & competition ‡ Sharing with the investors 7.EXPENSING STOCK OPTIONS ‡ Do not dilute more than a certain %age ‡ Benefit to investors

8. Independent Directors ‡ Corporate governance minimization cost ‡ Risk mitigation to protect shareholders 9. Quarterly reporting discourage risk ‡ Profits in Long term investment ‡ Investment will indeed bear fruit

10. Globalization / corporate governance in INDIA ‡ Maximizing shareholder value ‡ Transparency, fairness and accountability to stakeholders ‡ Pressure to Benchmark ‡ Market capitalization