SYNOPSIS

WORKING CAPITAL AT HCL

TITLE : HCL

PROBLEM

At HCL a substantial part of the total assets are covered by current assets. Current assets from
around 80% of the total assets. However this could be less profitable on the assumption that
current assets generate lesser returns as compared to fixed assets.

But in today’s competition it becomes mandatory to keep large current assets in form of
inventories so as to ensure smooth production an excellent management of these inventories
has to be maintained to strike a balance between all the inventories required for the
production.

So, in order to manage all these inventories and determine the investments in each
inventories, the system call for an excellent management of current assets which is really a
tough job as the amount of inventories required are large in number.

Here comes the need of working capital management or managing the investments in current
assets. Thus in big companies like HCL it is not easy at all to implement a good working
capital management as it demands individual attention on its different components.

So, I have been given this topic to make an in-depth analysis and detailed study to come out
with a clear magnified view as to whether the management of working capital at HCL is
sound or not.

OBJECTIVE

The main objectives of this study are –

 To understand the working capital management policies of the organization.

 To understand the importance of working capital management.
 To analyze the liquidity position of the organization.
 To analyze the short-term financing policies and patterns, which affect the working
capital of the organization?
 To study the factor that affects the working capital management at HNGIL.
To find out the profitability and operational efficiency of the organization.
METHDOLOGY

Methodology includes the overall research procedures, which are followed in the research
study. This includes Research design, the sampling procedures, and the data collection
method and analysis procedures. To broad methodologies can be used to answer any research
question-experimental research and non-experimental research. The major difference
between the two methodologies lies in the control of extraneous variables by the intervention
of the investigator in the experimental research.

4.3.1 RESEARCH DESIGN

A research design is defined, as the specification of methods and procedures for acquiring the
Information needed. It is a plant or organizing framework for doing the study and collecting
the data. Designing a research plan requires decisions all the data sources, research
approaches, Research instruments, sampling plan and contact methods.

Research design is mainly of following types: -

1. Exploratory research.
2. Descriptive studies

Exploratory research - Exploratory research is a type of research conducted for a problem

that has not been clearly defined. Exploratory research helps determine the best research
design, data collection method and selection of subjects. It should draw definitive conclusions
only with extreme caution. Given its fundamental nature, exploratory research often
concludes that a perceived problem does not actually exist. The major purposes of
exploratory studies are the identification of problems, the more precise formulation of
problems and the formulations of new alternative courses of action. The design of exploratory
studies is characterized by a great amount of flexibility and ad-hoc veracity.

Exploratory research often relies on secondary research such as reviewing available literature
and/or data, or qualitative approaches such as informal discussions with consumers,
employees, management or competitors, and more formal approaches through in-depth
interviews, focus groups, projective methods, case studies or pilot studies. The Internet
allows for research methods that are more interactive in nature. The results of exploratory
research are not usually useful for decision-making by themselves, but they can provide
significant insight into a given situation. Although the results of qualitative research can give
some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how
often" or "how many".

Descriptive research - Descriptive research, also known as statistical research, describes

data and characteristics about the population or phenomenon being studied. Descriptive
research answers the questions who, what, where, when and how...

Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, Descriptive research cannot be used to create a causal
relationship, where one variable affects another. In other words, descriptive research can be
said to have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical calculations. Often the
best approach, prior to writing descriptive research, is to conduct a survey investigation.
Qualitative research often has the aim of description and researchers may follow-up with
examinations of why the observations exist and what the implications of the findings are.

In short descriptive research deals with everything that can be counted and studied. But there
are always restrictions to that. Your research must have an impact to the lives of the people
around you. The major purpose of descriptive research is to give a description of the state of
affairs, as it exists in the present. The main characteristic of this method is that researcher has
no control over the variables. The researcher can only report what has happened or what is
happening. What, where, When, How are the researcher and not “Why”. Descriptive Report
is that subscription which answers or addresses all these questions. The study mainly based
on the secondary data which refers to that form of information that has been already collected
and is available. These include some internal sources within the company and externally
these sources include books and periodicals, published reports and data of HCL and the
annual reports of the company. Interaction with the various employees of the accounts
department has also been a major source of information. The Data & Financial result of the
past five years have been taken into consideration for analysis and calculations.
COMPANY NAME

HCL

PROFILE
HCL INFOSYSTEMS LTD.

HCL began an exciting journey more than three decades ago with a dream to give India its
very own microcomputer. The sheer clarity of vision and hard work led to a revolution and
laid a foundation for the Indian IT industry, which has today acquired a distinct position
amongst major economies in the world. Today HCL is a USD 5 billion global enterprise and
Ajai Chowdhry one of the founder members has been the key force in driving the growth of
HCL and today leads, HCL Infosystems the flagship company.

HCL Infosystems, the flagship company of the HCL enterprise, had a turnover of Rs. 400.6
crores (USD 85 million) in 1994 which underwent tremendous growth to become Rs. 12,137
crores (USD 2.6 billion) today. Employing - 7200 people, the company has today emerged
not only as the country’s information-enabling powerhouse but a great place to work with
industry accolades and awards received year after year.

HCL Infosystems has a long standing history of being involved ever since the inception of
the IT Industry in the country. When government was seeking collaboration, HCL
Infosystems were one of the first to partner in laying down the IT infrastructure in India from
something as basic as introducing a computer in the remotest part of the country. In a
developing country like ours where we are leapfrogging to match the pace of developed
global economies, ICT is rapidly becoming the core of any intelligent infrastructure and HCL
Infosystems has developed customized & efficient system integration solutions designed to
fuel the Indian growth engine. With relentless efforts to fuel the PC market, HCL Infosystems
has been acting as a catalyst for affordable & economical computing.

Today HCL Infosystems has become one of the leading System Integration Company in the
country, implementing several turnkey Systems and Networking Integration projects
nationwide and across most of the vertical business segments. HCL Infosystems is uniquely
poised today in the market making it the only company with India as its primary focus,
offering state of the art technology solutions to empower a host of Defence, Homeland
Security frameworks, social sectors and government schemes for Nation building. HCL
Infosystems has being powering numerous projects across sectors like Defence, Homeland
Security, Airport & Railways Intelligent Infrastructure, Telecom, Banking, Public
Distribution System, E-governance, Education, NREGA etc. With global expansion and
sharing best practices with the world and in particular developing markets, the company is
today strategically expanding in markets like Middle East, Southeast Asia and Africa. The
company has developed more than 30 IP products to serve different segments of the markets
backed by various hardware and software services.

RESPONDENT

50

LOCATION

DELHI

PRESENT DATA

DATA COLLECTION

Data collection is a term used to describe a process of preparing and collecting data. The
purpose of data collection is to obtain information to keep on record, to make decisions about
important issues, to pass information on to others. Primarily, data is collected to provide
information regarding a specific topic.

As we all know that while making project on working capital management all the data
required is secondary data because all the relevant information will be available in the annual
reports.

Secondary data – Secondary data is data collected by someone other than the user. Common
sources of secondary data for social science include censuses, surveys, organizational records
and data collected through qualitative methodologies or qualitative research. Primary data, by
contrast, are collected by the investigator conducting the research.

Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases than
would be unfeasible for any individual researcher to collect on their own. In addition to that,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments.

Advantages of Secondary data

1) It is economical. It saves efforts and expenses.

2) It is time saving.
 3) It helps to make primary data collection more specific since with the help of
secondary data, we are able to make out what are the gaps and deficiencies and what
additional information needs to be collected.
4) It helps to improve the understanding of the problem.
5) It provides a basis for comparison for the data that is collected by the researcher.

Disadvantages of Secondary Data

1) Secondary data is something that seldom fits in the framework of the marketing research
factors. Reasons for its non-fitting are:-
1.1. Unit of secondary data collection-Suppose you want information on disposable
income, but the data is available on gross income. The information may not be same
as we require.
1.2. Class Boundaries may be different when units are same.
1.3. Thus the data collected earlier is of no use to you.
2) Accuracy of secondary data is not known.
3) Data may be outdated.

Evaluation of Secondary Data

Because of the above mentioned disadvantages of secondary data, we will lead to evaluation
of secondary data. Evaluation means the following four requirements must be satisfied:-

1) Availability - It has to be seen that the kind of data you want is available or not. If it
is not available then you have to go for primary data.
2) Relevance - It should be meeting the requirements of the problem. For this we have
two criterion:-
i) Units of measurement should be the same.
ii) Concepts used must be same and currency of data should not be outdated.
3) Accuracy - In order to find how accurate the data is, the following points must be
considered: -
i) Specification and methodology used;
ii) Margin of error should be examined;
iii) The dependability of the source must be seen.
4) Sufficiency - Adequate data should be available.

Sources of Secondary Data - Following are the main sources of secondary data:
1. Official Publications: Publications of the HCL LEARNING or the by the corporate office
of HCL LEARNING.
2. Unpublished Data: Data may be obtained from several companies, organizations, working
in the same areas. For example, data on HCL LEARNING by magazines.
REFERENCES

http://www.hclinfosystems.in/rel-prgrm.htm

http://www.hclinfosystems.in/op_allpart.htm

http://www.hclinfosystems.in/op_qlty.htm

http://www.hclinfosystems.in/manu.htm

http://www.hclinfosystems.in/op_advan.htm

http://www.hclinfosystems.in/op_guide.htm

http://www.hcllearning.com/DigiSchool/DigiSchool.aspx

http://www.hcllearning.com/Functions/Careers/Careers.aspx

http://www.hcllearning.com/LearnIT/LearnIT.aspx

http://www.hcllearning.com/K12LanguageLab/K12LanguageLab.aspx

http://www.hcllearning.com/Xcelerate/XcelerateHome.aspx

http://www.hcllearning.com/AboutHCLLearning.aspx

CHAPTER

CHAPTER-1 About Organization/ Company Profile

CHAPTER-2 About Topic

CHAPTER-3 Literature Review

CHAPTER -4 Introduction

CHAPTER -5 Analysis

CHAPTER-6 Findings
CHAPTER-7 Suggestions

CHAPTER-8

Conclusion…………………………………………………………………………………

Bibliography

Annexures