project of venture capital

SUBMITTED TO IIPM (INDIAN INSTITUTE OF PLANNING AND MANAGEMENT)

2010-2012

PROJECT ON

“CASH MANAGEMENT”

FROM “BHARAT ELECTRONICS LIMITED”

PANCHKULA

(A GOVT. OF INDIA ENTERPRISES)

SUBMITTED BY:

NAME OF THE STUDENT: JYOTI

UNIVERSITY REGISTRATION NO.-10AM82029

ACKNOWLEDGMENT Behind every achievement lies an unfathomable sea of gratitude to those who actuated it, without whom it would ever have come into existence. To them I say the words of gratitude imprinted not just in report but also deep in my heart.

I express my deep sense of indebtedness to my institute IIPM, CHANDIGARH and our dean MR.Amit Baruah for giving me unique opportunity of pursuing this management research project.

Words elude me in expressing my profound gratitude to MR. KAPIL GUPTA for their painstaking and close suggestions and thought provoking discussions throughout project which

went a long way in guiding my efforts in the right direction.

KAMAL JEET

FORWARD

This report is the result of my 8 weeks of summer training at

BHARAT ELECTRONICS LIMITED. Is an integral part Of MBA

course and efficient utilization of material, time and resources are

very much important for successful completion of any task. Above to

this, coordination is must, which determines the degree of success. In

order to be competent, all the students are required to take a real time

project work. This exposure to project work will help them to know

that how academic knowledge is applied in actual business situation.

Keeping all this in view, the project given to me was to “CASH

MANAGEMENT” The all rounded encouraging support by many

persons towards this report has created in me confidence regarding the

approval of the subject matter.

Actually this report is a result of an assignment, to improve myself and gain confidence. In this, I have done my best to make it a genuine study. But as well as all know a maxim “TO ERR IS HUMAN”. Therefore there is a chance for some mistakes. Also a critical appraisal by anyone will be heartily welcomed

I hereby declare that the dissertation entitled

“CASH MANAGEMENT”

With respect to

“BHARAT ELECTRONICS LIMITED.”

Submitted in partial fulfillment of requirements for the degree

Of

Master of Business Administration (MBA)

From

INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

(IIPM)

JYOTI

MBA REG NO: 10AM82029

TABLE OF CONTENTS

Sr.No. TOPICS

1. About The Company2. Bharat Electronics Ltd. The Industry3. Bharat Electronics at a Glance4. Corporate Vision, Mission, Values5. Quality Objectives6. Various Units7. Customer Profile8. Departments of Finance & Accounts9. Organization chart of BEL10. Cash Management Services11. CMS at Standard Chartered Bank12. Research Methodology13. Literature Review14. Data of Actual Cash Flow in BEL.15. Conclusion

BHARAT ELECTRONICS LIMITED

Set up in Bangalore in 1954, BEL has grown India foremost defence electronics company, a NAVRATAN PSU under the Ministry of Defence. BEL is a Multi-product , Multi-technology, Multi-unit conglomerate boasting of over 350 products in the areas of Military communications, Radars, Naval systems, Telecom and Broadcast, Electronics welfare, Tank Electronics, Professional Electronics components and Solar photo vatic systems.

BEL also provides twin key system solution.

BEL’s customers include the ARMY, NAVY, AIRFORCE, PARAMILITARY, COAST GUARD, POLICE, DOORDARSHAN, ALL INDIA RADIO, DEPARMENTS OF TELECOMUNICATIN, and CONSUMERS OF PROFESSIONAL ELECTRONICS COMPONENT.

It was conferred NAVRATNA status in JUNE 2007, recognizing BEL’s consistent financial performance and inherent strengths in research and development, manufacturing and quality.

BEL maintains technological leadership with its-in-house R&D and in association with DRDO labs. The company spent 5.26 % of its turnover in R&D in 2009.

BEL has strategies in place to scale up its performance to the international level with advanced focus on business development, Marketing and product system development with acquisition of requisite technologies.

BHARAT ELECTRONICS

LIMITED (BEL)

The Industry

After Independence India had many responsibilities from basic necessity to telecomm & defence equipment so after adoption of its constitution in 1950, the government was seized with the plans to lay the foundation of a strong, self-sufficient Modern India. On the industrial announced in the year 1952. It was recognized that in certain core sectors infrastructure facilities require huge investments, which cannot be met by private sector and as such, the idea of Public Sector Enterprise (PSE) was mooted. Under this a Professional Electronics company in India incorporated that was front, industrial policy resolution (IPR) was BHARAT ELECTRONICS LIMITED.

BEL was established in 1954 as a Public Sector Enterprise under the administrative control of Ministry of Defence as the fountain head to manufacture and supply electronics components and equipment. BEL, with a noteworthy history of pioneering achievements, has met the requirements of state-of –art professional electronic equipment for Defence, broadcasting, Civil Defence and telecommunications as well as the component requirement of entertainment and medical X-ray industry. Over the years, BEL has grown to a multi- product, multi-unit and technology driven company with track record of a profit earning PSU.

BEL was born to meet the growing needs of Indian Defence services for electronic systems. Employing the best engineering talent available in the country, BEL has progressed manufacturing state-of-the-art products in the field of Defence Electronics like Communications including encryption, Radars and strategic components.

Over the years, BEL has diversified to meet the needs of civilian customers as well and has provided products and network solutions on turnkey basis to customers in India and abroad.

With the Research & Development efforts, its engineers have fructified it into a world-class organization. The company has a unique position in India of having dealt with all the generations of electronic component and equipment. Having started with a HF receiver in collaboration with T-CSF of France, the company’s equipment designs have had a long voyage through the hybrid, solid-state discrete component to the state-of-art integrated circuit technology. In the component arena also, the company established its own electron valve manufacturing facility. It moved on to semiconductors with the manufacture of germanium and silicon devices and then to manufacture of Integrated circuits. To keep in pace with the component and equipment technology, its manufacturing and product assurance facilities have also undergone sea change. The design groups have CADD’s facility, the manufacturing has CNC machines and a Mass Manufacture Facility, and QC checks are performed with multi-dimensional profile measurement machines. Automatic testing machines, environmental labs to check extreme weather and other operational conditions are there. All these facilities have been established to meet the stringent requirements of MIL grade systems.

Product mix of the company are spread over the entire electromagnetic (EM) spectrum ranging from tiny audio frequency semiconductor to huge radar systems and X-ray tubes on the upper edge of the spectrum. Its manufacturing

units have special focus towards the product ranges like Defence Communications, Radars, Optical & Onto-electronics, Telecommunications, Sound and Vision broadcasting, Electronic components, etc.

Besides manufacturing and supply of a wide variety of products, BEL offers a variety of services like Telecom and Radar Systems Consultancy, Contract Manufacturing, Calibration of test& measuring instruments, etc. At the moment, the company is installing MSSR radar at important airports under the modernization of airports plan of National Airport Authority (NAA).

BEL has nurtured and built a strong in-house R&D base by absorbing technologies from more than 50 leading companies worldwide and DRDO labs for a wide range of products. A team of more than 800 engineers is working in R&D. Each unit has its own R&D Division to bring out new products to the production lines. Central Research Laboratory (CRL) at Bangalore and Ghaziabad works as independent agency to undertake contemporary design work on state-of-art and futuristic technologies. About 70% of BEL‘s products are of in-house design.

BEL was amongst the first Indian companies to manufacture computer parts and peripherals under arrangement with International Computers India Limited (ICIL)

In 1970’s. BEL assembled a limited number of 1901 systems under the arrangement with ICIL. However, following Government’s decision to restrict the computer manufacture to ECIL, BEL could not progress in its computer manufacturing plans. As many of its equipment were microprocessor based, the company continued to develop computers based application, both hardware and software. Most of its software requirements are in real time. EMCCA, software intensive naval ships control and command system is probably one of the first project of its nature in India and Asia. BEL has won a number of national and international awards for Import Substitution, Productivity, Quality, Safety etc.

Today, BEL has set up impressive infrastructure spread in 9 location with 29-production division and manufacturing facilities in their ISO-9001/9002 certified production units around the country. They are –Bangalore, Ghaziabad, Pune, Taloja (Maharashtra), Hyderabad, Panchkula (Haryana), Chennai, Machilipathnam (A.P.) and Kotdwara (U.P.)

BEL has won a number of national and international awards for Import Substitution, Productivity, Quality, Safety Standardization etc. BEL was ranked no.1 in the field of Electronics and 46th overall among the top 1000 private and public sector undertakings in India by the Business Standard in its special supplement "The BS 1000 (1997-98)". This organization also stands on number 7th position in the best 100 public and private companies according to the "electronic for u" in 2002. BEL was listed 3rd among the Mini Ratna’s (category II) by the Government of India, 49th among Asia's top 100 Electronic Companies by the Electronic Business Asia and within the top 100 worldwide Defence Companies by the Defence News, USA

Bharat Electronics Limited at a Glance

Bharat Electronics Limited (BEL) is a Government of India undertaking set up under the Ministry of Defence. BEL was established in 1954 in Bangalore, primarily to meet strategic defence electronics needs of the country. With nine manufacturing units located in Bangalore, Ghaziabad, Panchkula, Kotdwara, Pune, Taloja, Hyderabad, Chennai & Machilipatnam, Bharat Electronics commands a strong presence in practically every vital area of professional electronics in the country.

Bharat Electronics has been awarded the coveted ISO 9000 certification, the benchmark of international quality.

BEL’s philosophy is epitomized on its motto

“QUALITY, TECHNOLOGY, INNOVATION ’’

With in-house R&D and state-of-art manufacturing facilities, BEL manufactures a wide range encompasses Semiconductor Devices, Professional Vacuum Tubes, Crystal Devices, and Solar Cells & Systems.

Almost all components manufactured by Bharat Electronics conform to international specifications. The component part numbers are equivalent to application compatible with international part numbers.

The passionate pursuit of excellence at BEL is reflected in repulsion with its customers that can be described in its motto, mission and objectives :

Corporate- Vision, Mission, Values and Quality Objectives of BEL.

VISSION

We shall be a world class customer preferred enterprise in the defense communication system and services to be a world class enterprise in professional electronics.

MISSION

To be the market leader in defense electronics and in other chosen fields and products. We shall be a world class customers preferred and focused globally competitive best in Class Company in defense communication systems through quality, technology and innovation.

VALUES

Customer centric

Putting customers first.

Integrity

Working with temporary, honesty and integrity.

Respect for individuals

Trusting and respecting individuals.

Passion for excellence

For testing team work.

Striving to achieve high employee satisfaction.

Social responsibility

Endeavoring to fulfill social responsibility.

OBJECTIVES

To become a customer-driven company supplying quality products at competitive prices at the expected time and providing excellent support.

To create an organizational culture this encourages members of the organization to realize their full potential through continuous learning on the job and through once HRD initiatives.

In order to meet the nations strategic needs to strive for self reliance by

indigenization of materials and components. To achieve growth in the operation commensurate with the growth of

professional electronics industry in the country. To generate internal resources for financing the investments required for

modernization, expansion and growth for ensuring a fail return to the investor.

To progressively increase overseas sales of its products services. To create an organization culture this encourages members of the organization to realize their full potential through continuous learning on the job and through other HRD initiatives. Corporate Motto “Quality, Technology and Innovation”

Quality Policy

BEL is committed to consistently deliver enhanced value to our customers, through continual improvement of our products and processes.

Quality Objectives

(a) Effective and Efficient design and development process, considering the present and future needs of customers.

(b) Enhanced customer satisfaction by on-time delivery of defect free products and effective life cycle support.

(c) Continual up gradation and utilization of infrastructure and human resources.

(d) Mutually beneficial alliances with suppliers.

e) Continual improvement of processes through innovation, technology and knowledge management.

The management of BEL is convinced of the need for Quality Enhancement, on a continuous basis, in the company. Need was felt to impart Education / Training to all the officers on the various facets of quality management. Accordingly, an institute called Bharat Electronics Quality Institute (BEQI) was established in 1999.

Bharat Electronics Ltd., (BEL), a premier Professional Electronics Company of India, has established and nurtured a strong in-house R&D base over the years to emerge and remain as a market leader in the chosen areas of business in professional electronics. Each of the nine manufacturing units of BEL is having its own in-house R&D Division to develop new products in its field of operations.

VARIOUS UNITS

Its corporate office is at Bangalore. Bangalore complex is the BEL’s first and largest unit and it accounts for two-thirds of both the company’s turnover and manpower. This unit’s product range covers over 300 Defence and Civilian products. Ghaziabad is the second largest unit of BEL and it specializes in radars, communication equipments & microwave-components.

In total BEL has got 9 units. These are distributed in all over the India as:

BANGALORE (Corporate Office)

GHAZIABAD

PANCHKULA

MACHILIPATNAM

PUNE

HYDERABAD

CHENNAI

KOTDWARA

TALOJA

CUSTOMER PROFILE

EquipmentDefence

Army Tactical and Strategic Communication Equipment and Systems, Secrecy Equipment, Digital Switches, Battlefield Surveillance Radars, Air Defence and Fire Control Radars, Opto-Electronic Instruments, Tank Fire Control Systems, Stabilizer Systems, Stimulators and Trainers.

Navy Navigational, Surveillance, Fire Control Radars, IFF, SONAR Systems, Torpedo Decoys, Display Systems, EW Systems, Simulators, Communication Equipment and Systems.

Air Force Surveillance and Tracking Radars, Communication Equipment and Systems, IFF and EW Systems.

Non-Defence

Para-Military Communication Equipment and Systems.

Space Department Precision Tracking Radars, Ground Electronics, Flight and On-Board Sub-systems.

All India Radio MW, SW & FM Transmitters.

Doordarshan

(TV Network)

Low, Medium and High Power Transmitters, Studio Equipment, OB Vans, Cameras, Antennae, Mobile and Transportable Satellite Uplinks.

NCERT TV Studios on Turnkey Basis for Educational Programs.

Department of

Telecommunications

Transmission Equipment (Microwave and UHF) and PCM Multiplex, Rural and Main Automatic Exchanges, Flyaway Satellite Terminals, Solar Panels for Rural Exchanges.

Videsh Sanchar

Nigam and other

Corporate Bodies

MCPC VSATs, SCPC VSATs, Flyaway Earth Stations. Hub Stations, Up/Down Convertors, LNA Modems

Civil Aviation Airport Surveillance Radars, Secondary Surveillance Radars.

Meteorological Department

Cyclone Warning and Multipurpose Meteorological Radars.

Power Sector Satellite Communication Equipment.

Oil Industry Communication Systems, Radars.

Forest Departments,

Irrigation &

Electricity Boards

Communication Systems.

Medical &

Health Care

Clinical and Surgical Microscope with Zoom.

Railways Communication Equipment for Metros, Microwave Radio Relays, And Digital Microwave Radio Relays.

Components

Defence Transmitting Tubes, Microwave Tubes, Lasers, Batteries, Semiconductors-Discrete, Hybrid and Integrated Circuits.

Non-Defence

All India Radio,

Doordarshan

(TV Network),

Department of Telecomm

and Civil Industries

Transmitting Tubes, Microwave Tubes, and Vacuum Tubes.

Entertainment

Industry

B/W TV Tubes, Silicon Transistors, Integrated Circuits, Bipolar and CMOS, Piezo Electric Crystals, Ceramic Capacitors and SAW Filters.

Telephone Industry Integrated Circuits, Crystals.

Switching Industry Vacuum Interrupters.

Instrumentation

Industry

Liquid Crystal Displays.

Medical &

Health Care

X-ray Tubes.

DEPARTMENTS

OF

FINANCE &ACCOUNTS

PAYROLL FOREIGN & LOCAL PAYMENTS SALES MISCELLANEOUS BILLS BUDGET & COMPIALATION CASH

PAYROLL SECTION

It is very important section of finance and accounts department. In it basically salary is calculated. When salary is calculated the date is consider 23 rd of last month to 22nd of current month. It will make an assumption that the person will be comes remaining day of this deducted on next month. When salary is calculated following items is add.

BASIC SALARY DEARNES ALLOWANCE (current rate is 16.9% of B/S) H.R.D (Current rate is 20% of B/S) TRAVILLING ALLOWANCE TIFFIN ALLOWANCE AND ETC.

The payroll section deducted 12% of BASIC SALARY and D.A for every employee salary and equal amt. contribute by the employer or company for employee provident fund. TDS also deducted by the payroll section. For deducting TDS they can forecast on quarterly basis income and deducting TDS.

Payroll section calculate employee extra time on the basis of hour.

UP TO 48 HOUR IN A WEEK SINGLE RATE PER HOUR. MORE THAN 48 HOUR DOUBLE RATE PER HOUR IN A WEEK.

CASH SECTION

It is another important section in which payment is made.

This section the payment is made to

PAYMENT MADE TO SUPLIER PAYMENT MADE TO EMPLOYEE PAYMENT MADE ON MISCELLANEOUS EXPENCE PAYMENT MADE TO CONTRACTOR ON THE BASIS OF BILL

PREPARE BY ANY SECTION OF F&A AND SO ON.

In this section payment made in the different way

REAL TLME GROSS SETELMENT (RTGS)

The payment is made for the amount more than one lakh to the party thru RTGS. Cheque is sent to bank (S.B.I) and S.B.I sends the same RBI (RESERVE BANK OF INDIA) and RBI credit it to the vendors account.

ELECTRONIC CLEARING SYSTEM (ECS)

Another important area is BANK RECONCILIATION

SALES SECTION

Another important section of F&A in it sales is done threw in systematic manner.

There are followings steps

STEP 1.

Firstly tender is drawn by the defence org. and non defence org.

STEP 2.

The quotation is filling up by the BEL.

STEP 3.

Than on the basis of the contract the order is place and when order will be rec. than contract can be made.

STEP 4.

Than contract review meeting is calling in which in discussion made about contract term condition if there will is need to change could be done.

Before starting the production the product sample made by BEL. And given it to for testing if product will be clear from test than finally production will be start.

STEP 5.

Than sales order is made and outbound delivery is done and invoice can be made and tax can be charged and excise duty charge if applicable. In the BEL excise duty is exempted.

STEP 6.

Payment is rec. in following manner

15% payment is rec. as an initial advance. 35% payment is rec. for purchasing the material. Another 35% payment is rec. when storage is done and completion it to

finish product. 10% payment is made when equipment is to store of the party. Remaining 5% payment made when lot of supply is accepted.

PURCHASE SECTION

The important section of F&A. In which all payment related to purchase is prepare.

There will be following step that should be following.

STEP 1.

Purchase order is given

STEP 2.

Now goods are rec.

STEP 3.

Now goods are inspected.

STEP 4.

Now goods are accepted with invoice.

STEP 5.

Now G/R pricing is made.

STEP 6.

Now payment is given.

Some time payment made in advance to supplier. Than payment is adjust with next delivery.

MISCELLANEOUS

SECTION

One of the important sections of F&A is miscellaneous. In which all the payment related to miscellaneous expense is done in this section.

The following payment that consider in the section.

1. Payment made on annual maintains contract like maintains of computer and related device.

2. Payment related to bill of canteen.3. Payment on electricity payment.4. Payment made on telephone bill.5. Payment like suggestion given by employee.6. Payment made on delivery charges like trunks that is supply charges like

loading and unloading chares and so on.

The payment related to above expenses is according to term and condition that is made by BEL with this part when payment is made all terms & conditions is followed.

SALARY SECTION

In order to understand the meaning of expression “SALARY”. One has to keep in mind the following norms:

1. RELATIONSHIP BETWEEN PAYER AND PAYEE: The distinction between two types of relationship is vital because income annexed by an employee from this employer is chargeable under ‘INCOME FROM OTHER SOURCES’.

2. SALARIES AND WAGES:Both are the compensation for work done or services rendered, though ordinarily salary is paid in connection with services of non-manual type of work, while wages are paid in connection with manual services.

3. SALARY FROM MORE THAN ONE SOURCES: If an individual receives salary from more than one employer during the same year, salary from each source is taxable under the head “SALARY”.

4. SALARY INCOME MUST BE REAL:

Amount taxable under the head “SALARY” is a real salary and non fictitious salary. There should an intention to pay and receive salary.

5. SALARY PAID TAX-FREE:

If salary is paid tax-free by the employees, the employee has to include in his taxable income not only the salary receive but also the amount of tax paid by the employer.

Salary under section 17(1)

a. Wagesb. Any pension

c. Any gratuityd. Any fees, commission, profits or in addition to any salary or wages.e. Any advance of salaryf. Any payment received in respect of any period of leave not availed by

him.g. The contribution made by the central government in the previous year.

INCOME FROM SALARIES

Computation Steps:

BASIC SALARY

ADD

D.A (Dearness Allowances) H.R.A (House Rent Allowance) Education Allowances Reimbursement Of Expenses By Employees

DETERMINE TAXABLE AMOUNT OF DIFFERENT ALLOWANCES House Rent Allowance Foreign Allowance Fixed Medical Allowances

DETERMINE TAXABLE VALUE OF DIFFERENT PREQUISITES Rent Free House Gas, Electricity and Water Supply Free Education etc.

GROSS SALARY

SUB

Entertainment Allowance Professional Tax Standard Deduction

TAXABLE SALARY

LESS

Deduction Under Section 80C Deduction Under Section 80L

TAX AND SURCHARGE

ADD

Education Cess (2% of Tax) Secondary And Higher Education Cess

SLAB VALUES

For Women – 1, 90,000

For Senior Citizens – 2, 40,000

Others – 1, 60,000

Up to 1, 60,000 – NIL

1, 60,000 – 5, 00,000 – 10%

5, 00,000 – 8, 00,000 – 20%

Above 8, 00,000 – 30%

FOREIGN PAYMENTS

EXPORT:

Export can be defined as when the raw materials are sold to foreign countries.

IMPORT:

When the goods and raw materials are purchase from foreign country to our country.

Foreign Payments

Foreign payments deals with the payments involved while making transactions with the foreign countries.

Following are a term which is to be followed while making the foreign payment.

T.T (Telegraph Transfer) L.C (Letter Of Credit) S.D (Sight Draft)

TELEGRAPH TRANSFER (T.T)

The first thing to be kept in mind is the PO (Purchase Order).

In purchase order include various terms of payments i.e.

Terms of order Delivery date Quantity Amount

Even the time of payment has to be mentioning with the suppliers name written on it and the address respectively.

When the goods are received t e material store department passes the entry and make a G/R (Goods Receipts’)

Material A/C Dr.

To G/L A/C

Or

(GR) A/C

Now GR is sent to the “FINANCE DEPT” for the payment purpose.

STEPS INVOLVED

STEP 1:- Making of Payments

Liability is created and the entry is made in the following way

GR A/C Dr.

To vendor A/C

STEP 2:- To make the advice slip is prepared on BRS (Bank Reconciliation Statement) and it is sent to the (SBI Chandigarh)

Due to the difference in currencies of various countries on our behalf (SBI Chd) makes the payment and debit our account with that much of amount.

Vendor’s A/C Dr.

To Bank

State Bank of India after receiving the advice slip and documents, they make payment to suppliers on our behalf. (With reference to the currency)

After the above process we (BEL) have to pay to SBI chd and it also charge commission from “Bharat Electronics Ltd”.

DOCUMENTS ATTACHED FOR PAYMENT

Invoice Bill Of Entry A-I Form Bank Details

SBI Chandigarh sent a debit advice after debiting over account and after making a payment.

Then the above payments are entered in SAP.

ME 23N F-48 FB 50

ME 23N – Display Purchase order

F-48 – Advance Payment

FB 50 – Bank Commission Charges

LETTER OF CREDIT (L.C)

Here the bank directly receives documents from the supplier’s bank. The payment is made our (BEL) behalf after receiving the documents. There is no direct involvement of our company and the suppliers. All the payments are done through our (BEL) bank and the bank of suppliers. When the payments are done. We (BEL) make payment to our bank i.e. SBI Chandigarh.

SIGHT DRAFT (S.D)

Here the same procedure follows same as which is applied in telegraph transfer and letter of credit but the difference here is that the rejections of goods are possible to the buyers in sight draft. If the goods are not satisfactory it can be directly rejected.

BUDGET

A budget is prepared to have effective utilization of funds and for the realization of objectives as efficiently as possible.

It related to planned events i.e. the policy and program to be followed in a future period under planned conditions.

The process of budget starts where forecast ends and converts it into a budget.

Budget is made in respect of those spheres which are related to business or industry.

ESSENTIALS OF A BUDGET

It is a plan expressed in monetary terms but it can also contain physical units.

It is related to a definite future period. It usually shows the planned income to be generated and expenditure to

be incurred. It also shows capital to be employed during the period. It is prepared for the purpose of implementing the policy formulated by

the management and the objective to be achieved during the period. BUDGET

REVENUE BUDGET CAPITAL BUDGET

Short term payments Long term payments

Day to day expenditure All assets are included

Are included

Budget can also be recorded in “SAP”

SAP – SYSTEMATIC APPLIACTION PRODUCT

REVENUE BUDGET CAPITAL BUDGET

Internal order is used Work breakdown structure is used

The entries to be made in SAP can be done by the following ways:

KO 01 - creation of revenue IMA II – tore lease

KO 22 – check the revenue IM 32 – budget

KO 02 – release IM 52 – budget

KO 03 – to display CJ 32 – for releasing

BUDGETARY CONTROL

Budgetary control is applied to a system of management and accounting control by within all operations and output are forecasted as far ahead as possible and actual results when known are compared with budget estimated.

To enable management to conduct business in most efficient manner. To get the effective utilization of resources and realization of objectives. Budgetary control laid emphasis on the staff organization. It ensures effective utilization of men, material, machines and money. It helps in promoting a feeling of cost consciousness and in restricting

expenditure to the minimum.

CHIEF EXECUTIVE

BUDGET OFFICER

SALES MANAGER

Sales budget including advertising, selling and distribution cost

PRODUCTION MANAGER

Production and plan utilization budget

PURCHASING MANAGER

Material budget

PERSONNEL MANAGER

Labor budget

ACCOUNTANT

Cost budget master budget

ORGANISATION CHART OF

BEL-PANCHKULA

INTRODUCTION

Cash management is a marketing term for certain services offered primarily to larger business customers. It may be used to describe all bank accounts (such as checking accounts) provided to business of certain size, but it is more often used to describe specific services such as CASH concentration.

Cash Management Services generally offered

The following is a list of services generally offered by banks and utilized by larger business and corporations:

Account Reconcilement Services: Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the company’s true balance is. To address this, banks have developed a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, Banks have used this system to prevent checks from being fraudulently cashed if they are not on the list, a process known as Positive Pay.

Advanced Web Services: Most banks have an Internet-based system which is more advanced than the one available to customers. This enables managers to create and authorize special internal logon credentials, allowing employees to send wires and across other cash management features normally not found on the consumers web site.

Armored Car Services: Large retailers who collect a great deal of cash may have the bank pick this cash up via an armored car company, instead of asking its deposits the cash.

Automated Clearing House: Services are usually offered by cash management division of bank. The Automated Clearing House is an electronic system used to transfer funds between banks. Companies use to pay others, especially employees (this is how direct deposits work). Certain companies also use it to collect funds from customers (this is generally how automatic payment plans work). This system is criticized by some consumer advocacy groups; because under this system banks assume that the company initiating the debit is correct until proven otherwise.

Zero Balance Accounting: Can be thought of as somewhat of a Hack. Companies with large numbers of stores or locations can very often be confused if all those stores are depositing into a single bank account. Traditionally, it would be impossible to know which deposits were from which stores without seeking to view images of those deposits. To help correct this problem, banks developed a system where each store is given their own account, but all the money deposited into the individual store accounts are automatically moved or swept the company’s main bank account.

Wire Transfer: A wire transfer is an electronic transfer of funds. Wire transfers can be done by a simple bank account transfer, or by a transfer of cash at a cash office. Bank wire transfers are often the most expedient methods for transferring funds bank accounts.

Controlled Disbursements: This is another product offered by banks under Cash Management Services. The bank provides a daily report, typically early in the day, that provides the amount of disbursements that will be charged to the customer’s account. In the past, other services have been offered the usefulness of which has diminished with the rise of the Internet. For example, companies could have daily faxes of their most recent transactions or to be sent CD-ROMs of images of their cashed checks.

CASH MANAGEMENT aims at evolving strategies for dealing with various facets of cash management. These facets include the following:

Optimum Utilization of operating Cash

Implementation of sound cash management programme is based on rapid generation, efficient utilization and effective conversation of its can be achieved by making a proper analysis of operative cash cycle along with efficient management of working capital.

Cash Forecasting: Cash forecasting is backbone of cash planning. It forewarns a business regarding expected cash problems, which it may encounter, thus assisting it to regulate further cash flow movements. Lack of cash planning results in spasmodic cash flows.

Cash Management Techniques: Every business is interested in accelerating its cash collections and decelerating cash payments so as to exploit its scarce cash resources to the maximum. There are techniques in the cash management which a business to achieve this objective.

Liquidity Analysis: The importance of liquidity in a business cannot be over emphasized. If one does the autopsies of the business that failed, he would find that the major reason for the failure was their inability to remain liquid. Liquidity has an intimate relationship with efficient utilization of cash. It helps in the attainment of optimum level of liquidity.

Profit Deployment of Surplus Funds: Due to non-synchronization of cash inflows and cash outflows the surplus cash may arise at certain points of time. If this cash surplus is deployed judiciously cash management will itself become a profit center. However, much depends on the quantum of cash surplus and acceptability of market for its short-term investment.

Economic Borrowings: Another product of non-synchronization of cash inflows and cash outflows is emergence of deficits at various points of time. A business has to raise funds to the extent and for the period of deficits. Rising of funds at minimum cost is one of the importance facets of cash management.

Purpose of Cash Management

Cash management is the stewardship or proper use of an entity’s cash resources. It serves as the means to keep an organization functioning by making the best use of cash or liquid resources of the organization.

The function of cash management at the U.S. Treasury is threefold.

1. To eliminate idle cash balances. Every dollar held as cash rather than used to augment revenues or decrease expenditures transactions can be used to buy back outstanding debt (and cease a flow of funds out of the Treasury for interest payments) or can be invested to generate a flow of funds into the Treasury’s account. Minimizing idle cash balances requires accurate information about expected receipts and likely disbursements.

2. To deposits collections timely. Having funds in-hand is better than having accounts receivable. The cash is easier to convert immediately into value or goods. A receivable, an item to be converted in the future, often is subject to a transaction delay or a depreciation of value. Once funds are due to the Government, they should be converted to cash-in-hand immediately and deposited in the Treasury’s account as soon as possible.

Cash management is the stewardship or proper use of an entity’s cash resources. It serves as the means to keep an organization functioning by making the best use of cash or liquid resources of the organization.

ARMOR

Intellect online-customer access

Interest application and accruals engine

Notional pooling services

MIS and Reports

Bank’s internal system



External systems

External systems

External system

Sweeps and balance management services

I NTELLECT IN

TEGRATO

R

BANK’S LIQ

UID

ITY OFFERIN

G SWIFT

CASH MANAGEMENT AT STANDARD

CHARTERED BANK

Cash Management as part of standard Chartered’s global transaction solutions to Corporates and Institutions, we provide Cash Management, Securities Services and Trade Services through our strong market networks in Asia, Africa, the Middle East and Latin America. We also provide a bridge to these markets for clients from the U.S and Europe. We are committed to providing you with

Integrated, superior cross-border and local services Efficient transaction processing Reliable financial information Innovative products World-class clearing services. Thus ensuring a full suite of transactional

products for you needs.

For Corporates

Standard Chartered is highly recognized as a leading cash management supplier across the emerging markets. Our Cash Management Services cover local and cross border Payments, Collections, Information Management, Account Services and Liquidity Management for both corporate and institutional customers. With Standard Chartered’s cash management services, you’ll always know your exact financial position.You have the flexibility to manage your company’s complete financial position directly from your computer workstation. You will also be able to take advantage of our outstanding range of Payments, Collections, Liquidity and Investment Services and receive comprehensive reports detailing your transactions. With Standard Chartered, you have everything it takes to manage your transactions flow more accurately.

Payments Services Collection Services Liquidity Management

For Financial Institutions

Standard chartered is highly recognized as a leading cash management supplier across the emerging markets. Our Cash Management Services cover local and across border Payments, Collections, Information Management, Account Services and Liquidity Management for both corporate and institution customers. If you are looking for a correspondent banking partner you can trust, Standard Chartered can help you. We have more than 500 offices located in 50 countries throughout the world and, with 150 years of on-the-ground experience, we can help our bank clients with all their cash management needs.

Clearing Services Asian Gateway

Payment Services

Global payments solution for efficient transaction processing

Looking to outsource your payments to enable:

Efficient processing of all your payables in the most cost effective way.

Straight through processing both at your end as well as your bank’s back-end.

Efficient payables reconciliation with minimal effort and delay. Minimum hindrance to automation due to local language

difficulties. Centralized management of payables across departments,

subsidiaries and countries. OUS SOLUTION Standard Chartered’s Straight through services (STS) payment solution can be tailored to the different payment needs of companies, whatever industries, size or country you may be in. with a comprehensive end-to end payment processing cycle, STS allows companies to process a variety of payments types, whether they be domestic or international, local or central in the different countries, all in a single system file. To rely the benefits of STS, please contact your local Relationship Manager or Cash Management Representative. OUR COVERAGE We are the foreign bank having the largest geographical representative in the country.

Liquidity Management

Solutions for efficient management of your funds. A corporate treasurer’s main challenge often revolves around ensuring that the company’s cash resources are utilized to their maximum advantage. You need a partner bank that can help you:

Maximum interest income on surplus balances; minimize interest expense on deficit balances for domestic, regional and global accounts.

Minimize FX conversion for cross-currency cash concentration.

Customize liquidity management solutions for different entities in different countries.

Centralize information management of consolidated account balances.

OUR SOLUTION with our global experience and on-the-ground market knowledge, standard chartered will help you define an overall cash management strategy which incorporates liquidity management solutions that best meets your needs. Click here for an illustration of our propositions.

OBJECTIVES

Objective of a project tell us why project has been taken under study. It helps us to know more about the topic that is being undertaken and helps us to explore future prospects of that organization. Basically it tells what all have been studied while making the project.

To learn about various aspects of standard chartered cash management.

To analyze the history of standard chartered bank. To gain insights about functioning of standard chartered cash

management. To explore the future prospects of standard chartered cash

management.

Research Methodology

Research is a process through which we attempt to achieve systematically and with the support of data the answers to a question, the resolution of a problem, or a greater understanding of phenomena. The process, which is frequently called Research Methodology, has eight distinct characteristics.

1. Research originates with a question or problem.2. Research requires a clear articulate of a goal.3. Research follows a specific plan of procedure.4. Research usually divides the principal problem into more manageable

sub-problems.5. Research is guided by the specific research problem, question or

hypothesis.6. Research accepts certain critical assumption.7. Research requires the collection and interpretation of data in attempting

to resolve the problem that initiated the research.8. Research is, by its nature, cyclical; or more exactly, helical.

Descriptive research is used is used in this project report in order to know about cash management services to clients and determining their level of satisfaction. This is the most popular type of research design and most useful in describing the characteristics of consumer behavior. The methods used were following:

Questionnaire method Direct interaction with the clients.

Mode of Data Collection

Primary data: The sources of primary data were questionnaires and personal interviews.

Secondary data: the sources of secondary data were internet, books and newspapers articles.

Literature Review

Web-based Cash Management

Finale web-based cash management solution enables banks to offer comprehensive cash management services to businesses, ranging from small enterprises to large corporate houses.

Built on new-generation industry standard technologies J2EE and NET, the modular solution provides corporate customers anytime, anywhere access to real-time consolidated information. It manages cash positions and electronically sends and receives funds in a secure manner, with and across borders.

The solution is multiple-currency enabled and offers multilingual support. It is also designed to support multiple channels including the internet and mobile, and can be interfaced with disparate host systems and third-party applications.

Cost Savings

Thin-client architecture over the internet reduces the cost of maintenance associated with frequent upgrade and support. The deployment of finale enables a cost-effective channel through which to serve customers. As the number of transactions completed on-line increases, the number of more expensive branch transactions decreases. This is especially true of small business customers who tend to use the branch as their primary channel. Greater automation and productivity, as well as reduced human error, further lead to increased cost savings.

Increased customer satisfaction

The self-service capabilities empower corporate customers to manage the solution in terms of defining user-permissions, based on hierarchy and roles. This leads to greater convenience and offer better monitoring of banking transactions in real time. A more empowering corporate client would be a more satisfied and profitable customer.

Cash Management Basics

Cash is your business’s lifeblood. Management well, your company remains healthy and strong. Management poorly, your company goes into cardiac arrest. If you haven’t considered cash management an important issue, then you’re probably undermining your business’s short-term stability and its long-term survival. But how can you manage business cash better?

Start with understanding how good cash-management practices can influence your company’s growth and survival by reading “The Art of Cash Management” Inc Finance Editor Jill Andresky Fraser’s classic article on the topic. The dive into forecasting your business-cash needs and learning how to handle cash crises. Assembled here are practical pieces of advice, tips and tricks from CEOs, and tools that you can use to get a handle on business.

Handling and Avoiding Crises

How Do You Define Cash Flow?

If your definition of cash flow is flow is flawed, and you’re not tracking the right numbers, you may grow your company right into a cash crisis.

The 10 Absolutely Must Cash Flow Rules

Everyone wants cash on hand at all times. Here are 10 rules to help you get there.

Riding the economic Roller Coaster

Tighten your seatbelt. Surviving the ups and downs of the world economy means keeping an eye on business finances.

When a Cash Crises Strikes

Credibility with vendors, bankers and other creditors is built slowly, but can be destroyed quickly if your company falls behind on payments. Know how to break the bad news to preserve your business’s relationship.

Forecasting, projections and budgets

The Secrets to Formatting Cash Flow Projections

Here are the keys to creating a powerful tool to take control of your cash flow.

Cash Flow Project Made Easy

Here is a 4-step process you can use to create cash flow projections you can trust.

Breaking Free from Budgets

Exasperated by budgets that hamstring creative, a growing number of companies are tossing off financial constraints and still holding the line on spending.

Budgeting for Forecasting

Lisa hickey created a fund to support creative risks her Boston-based ad agency, velocity Inc, takes when trying innovative ideas that might not pan out.

A Passion for Forecasting

Don’t put together an annual sales forecast sales forecast using only gut instinct and wishful thinking! Here are some rules you can follow to create a forecast that you and your employees can count on.

Action Plan: Forecasting and Cash-flow budgeting

Developing a budget is simple, and when created with solid sakes and expense forecast in mind, you can ensure that your budget will stand up to the daily demands of your business. Here are some steps you can take to create a cash flow budget you can rely on.

Tools

Defining Key Financial Ratios

Tracking these key financial ratios will highlight financial trends in your business.

Financial Ration Worksheets

Use these financial-ration worksheets to determine 10 key ratios and track financial trends in your business.

A Simple Formula

Determine your breakeven point with this online calculator.

The Employee-Run-Budget Worksheet

Help employees get in on the budgeting act with this worksheet.

Profit-and-Loss Projection

Use this profit-and-loss projection as a guide to projecting your company’s profitability.

How to improve Cash Management Practices in India?

There are, of course, many ways to improve and re-engineer the processes. However, depending on budgets and also to minimize disturbances to the, the following are the suggested simple and initial steps. Note that the larger the corporation, the more involved the process will be.

1. Commit to change:Recognize the need for improvement and commit to change (this commitment must come from top management and cannot be just lip service).

2. Establish a credible project team:The project team must have a credible and strong project leader and be sponsored by the decision makers.

DATA OF ACTUAL

CASH-FLOW

IN

BHARAT ELECTRONICS LTD.

PANCHKULA

BHARAT ELECTRONICS LTD. PANCHKULA (FINANCE & ACCOUNTS)

DATE 29.03.2011

22.03.2011 TO 27.03.2011

ACTUAL CASH FLOW FOR THE WEEK PROJECTIONS FOR NEXT WEEK GIVEN BELOW

PARTICULARS PROJECTED ACTUALS VARIATION UPDATED PROJECT OF NEXT WEEK

Cash flow Code

For the week Cumulative up to the week

INFLOW On Account of Supplies & Adv

13 1.00 114.49 822.87 113.49 1.00

OTHER RECEIPTS 19 1.00 0.00 29.25 (1.00) 1.00TOTAL 2.00 114.49 852.12 112.49 2.00OUTFLOWESTABLISHMENT 24 145.00 0.00 77.96 (145.00) 145.00MATERIAL- IMPORTED 21 20.00 82.00 9454.58 62.00 10.00

LOCAL 22 150.00 168.26 3996.65 18.26 200.00MATERIAL-SUBCONTRACT 23 25.00 6.15 1071.46 (18.85) 25.00DUTIES TAXES ETC 26 0.00 100.00 2233.79 100.00 0.00CAPITAL EXPENDITURE 25 0.00 5.74 255.96 5.74 0.00PAYMENT ON BEHALF OF THE UNIT

28 0.00 0.00 12.02 0.00 0.00

OTHER REVENUE EXP 29 20.00 23.13 1027.96 3.13 25.00 360.00 385.28 18130.38 25.28 405.00

NET. INFLOW/ (OUTFLOW) (358.00) (270.790) (17,278.28) 87.21 (403.00)

PARTICULARS CANARA BANK S.B.I

LC OUTSTANDING 0.00 1.42

BG OUTSTANDING 7.30 0.00

Collections/Payments thru other Units/ROs not considered in actual & projections

NOTE:

** Payroll payments of Rs. 3.69 Lakh has been made during this week but not uploaded in SAP

Bills-Foreign Payment of Rs. 68.00 lakh has been made during this week but has not been uploaded in SAP & amount ** mentioned in actual for the week pertains to amount uploaded in SAP during the week.


DATE 22.03.2011

15.03.2011 TO 20.03.2011



Cash flow Code


`


13 1.00 1.16 708.37 0.16 1.00

OTHER RECEIPTS 19 1.00 0.00 29.25 (1.00) 1.00TOTAL 2.00 1.16 737.62 (0.84) 2.00OUTFLOWESTABLISHMENT 24 2.00 0.00 77.96 (2.00) 146.00MATERIAL- IMPORTED 21 50.00 0.00 9372.57 ( 50.00) 20.00

LOCAL 22 25.00 85.71 3828.38 60.71 150.00MATERIAL-SUBCONTRACT 23 10.00 21.35 1065.30 11.35 25.00DUTIES TAXES ETC 26 150.00 150.00 2133.79 0.00 0.00CAPITAL EXPENDITURE 25 0.00 0.90 250.21 0.80 0.00PAYMENT ON BEHALF OF THE UNIT

28 0.00 0.00 12.02 0.00 0.00

OTHER REVENUE EXP 29 10.00 22.61 1004.96 12.61 20.00 247.00 280.47 17745.15 33.47 360.00

NET. INFLOW/ (OUTFLOW) (245.00) (279.31) (17,007.53) (34.31) (358.00)





NOTE:




DATE 15.03.2011

08.03.2011 TO 13.03.2011



Cash flow Code



13 1.00 19.48 707.16 18.48 1.00

OTHER RECEIPTS 19 1.00 0.00 29.25 (1.00) 1.00TOTAL 2.00 19.48 736.41 17.48 2.00OUTFLOWESTABLISHMENT 24 25.00 15.75 77.96 (9.25) 2.00MATERIAL- IMPORTED 21 50.00 49.40 9372.57 (0.60) 50.00

LOCAL 22 50.00 12.61 3742.66 (37.39) 25.00MATERIAL-SUBCONTRACT 23 15.00 10.88 1043.94 (4.12) 10.00DUTIES TAXES ETC 26 0.00 0.51 1983.79 0.51 150.00CAPITAL EXPENDITURE 25 0.00 0.85 249.41 0.85 0.00PAYMENT ON BEHALF OF THE UNIT

28 0.00 0.45 12.02 0.45 0.00

OTHER REVENUE EXP 29 28.00 22.08 982.39 (5.92) 10.00 168.00 112.53 17464.74 (55.47) 247.00






NOTE:




DATE 08.03.2011

01.03.2011 TO 06.03.2011



Cash flow Code



13 1.00 0.87 687.68 (0.13) 1.00

OTHER RECEIPTS 19 1.00 0.00 29.25 (1.00) 1.00TOTAL 2.00 0.87 716.93 (1.13) 2.00OUTFLOWESTABLISHMENT 24 25.00 15.78 62.20 (9.22) 15.00MATERIAL- IMPORTED 21 50.00 0.00 9323.17 (50.00) 50.00

LOCAL 22 50.00 75.28 3730.04 25.28 60.00MATERIAL-SUBCONTRACT 23 15.00 9.07 1033,06 (5.93) 15.00DUTIES TAXES ETC 26 0.00 0.00 1983.28 0.00 0.00CAPITAL EXPENDITURE 25 0.00 0.70 248.55 0.70 0.00PAYMENT ON BEHALF OF THE UNIT

28 0.00 0.00 11.56 0.00 0.00

OTHER REVENUE EXP 29 28.00 18.90 960.31 (9.10) 22.00 168.00 119.73 17352.17 (48.27) 162.00






NOTE:



CONCLUSION

The study allowed us get answers regarding the service awareness among people and the problem it faces. The key findings and analysis of the survey showed that.

A large number of clients and customers call the branch frequently to handle banking issues; this shows the keenness of the customers to call the branch for almost every small issue. The service straight to bank does provide an answer to the problem of the customers.

project of venture capital

Documents