A STUDY ON OVERHEAD

MANAGEMENT ON PRODAPT
SOLUTION IT PRIVATE LIMITED

PROJECT REPORT

Submitted by

DINAGARAN.S

REGISTER NO: 22820272

Under the Guidance of

Mr. BAIG MANSUR IBRAHIM, MBA

Assistant professor,

Department of Management Studies

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

MANAKULA VINAYAGAR INSTITUTE OF TECHNOLOGY

PUDUCHERRY- 605 107

DECEMBER-2023
 MANAKULA VINAYAGAR INSTITUTE
OF TECHNOLOGY
PONDICHERRYUNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE
This is to certify that the project work entitled “A STUDY ON OVERHEAD
MANAGEMENT ON PRODAPT SOLUTION IT PRIVATE LIMITED ” is a bonafide
work done by DINAGARAN S [REGISTER NO: 2280272] in partial fulfillment of the
requirement for the award of Master of Business Administration by Pondicherry University
during the academic year 2023-24.

GUIDE HEAD OF THE DEPARTMENT

Submitted for Viva-Voce Examination held on

EXTERNAL EXAMINER INTERNAL EXAMINER

TABLE OF CONTENT

CHAPTER TITLE PAGE No

ACKNOWLEDGEMENT i

ABSTRACT ii

LIST OF TABLES iii

LIST OF CHARTS vi

I INTRODUCTION 1-13

OBJECTIVES OF THE STUDY

NEED FOR THE STUDY

II 14-18
SCOPE FOR FURTHER STUDY

LIMITATIONS OF THE STUDY

III REVIEW OF LITERATURE 19-32

IV RESEARCH METHODOLOGY 33-36

V ANALYSIS AND INTERPRETATIONS 37-73

FINDINGS OF THE STUDY

VI SUGGESTIONS AND RECOMMENDATIONS 74-78

CONCLUSION

ANNEXURE
79-84
(i). QUESTIONNAIRE
(ii). BIBLIOGRAPHY
 ACKNOWLEDGEMENT
I express my sincere thanks and deep sense of gratitude to our Management of
MANAKULA VINAYAGAR INSTITUTE OF TECHNOLOGY, Puducherry, Chairman &
Managing Director Shri.M.DHANASEKARAN, and Shri.S.V.SUGUMARAN, Vice-
Chairman & Secretary-SMVE Trust for providing necessary and essential facilities to do this
project report.

I am extremely grateful to Our Principal Dr.S.MALARKKAN for his support and

encouragement for the completion of my project report.

I express my heartiest thanks to our respected Professor and Head of the Department of
Management Studies Dr. R.V.PAZHANI, ManakulaVinayagar Institute of Technology for his
valuable co-operation in the successful completion of our project.

I express a deep sense of gratitude to my GuideMr. BAIG MANSUR

IBRAHIM.,MBA,Assistant Professor, Department of Management Studies, for his
encouragement, support and guidance to complete project work successfully.

I convey my heartiest Thanks to Vice President Mr. ANIL KARTHIKEYAN who

kindly granted permission to do this project report in his esteemed organization.

FinallyI express my sincere thanks to all my family members and friends for their co-
operation in completion of this project report, Also I thank almighty for this immense blessing.

V. PARKAVI
 ABSTRACT

The study is an outcome of the topic called “A STUDY ON Overhead

Management”. The survey is carried out in the company called Prodapt solution IT
Private Limited.

The main objective of this study is to find out how the overhead expenses is at
PRODAPT SOLUTION IT PRIVATE LIMITED. The secondary objectives of the
study is to suggest the remedial measures based on the findings.

In the study 7 tools of formula were taken to study about the overhead management.
Primary data such as annexure have been conducted to collect the data from the
company expenses. Generally tools such as Overhead Expenses Ratio, Overhead
Variance, Overhead Return on Investment (ROI),Overhead Expenses per Employee,
Overhead Cost Reduction Rate, Overhead Expenses index and Return on asset (ROA)
method have been used for analysis and interpretation.

Through analysis, it is found that the company are not aware of the overhead
managenetthat are followed in the organization. It is suggested to the organization to
create the awareness about the policies in increases a profit in net income of the
company. Addition to it the organization will be increasing number of financial ratios
are found every year. However, a few of the financial ratios have dropped. Hence the
researcherconductor that the business is performing well in terms of overhead costs.

.
 LIST OF TABLES

TABLE PAGE
TITLE
NO. NO.

5.1.1 Age of the respondents 42

5.1.2 Educational Qualification of the respondents 43

5.1.3 Experience of the respondents 44

5.1.4 Income of the respondents 45

5.1.5 Respondents opinion about Awareness of policy 46

5.1.6 Respondents opinion about total hours work in a day 47

5.1.7 Respondents opinion towards shift preferred 48

5.1.8 Respondents opinion about feels depressed because of work 49

5.1.9 Respondents opinion towards amount of time spend at work 50

5.1.10 Respondents opinion towards how often worry about work 51

Respondents opinion towards hindrance in balancing work

5.1.11 52
and personal life

5.1.12 Respondents opinion about job sharing system 53

Respondents opinion towards amount of time travelling to

5.1.13 54
work

5.1.14 Respondents opinion towards flexible timing system 55

Respondents opinion about suffering from any stress relating

5.1.15 56
diseases

Respondents opinion about process which helps in balancing

5.1.16 57
work and family commitments

5.1.17 Respondents opinion about quality time with family 58

5.2 CHI-SQUARE

Chi-square Analysis of Respondents Regarding the experience

5.2.1 59
and amount of time spend at work.

Chi-square Analysis ofAge and Tired or Depressed because of

5.2.2 61
work of the respondents.

Chi-square Analysis ofExperience and respondents opinion about

5.2.3 63
how often they worry about work.

Chi-square Analysis ofExperience and Hindrance in balancing

5.2.4 65
work and family commitments.

5.3 CORRELATION

Correlation Analysis of the analysis of job sharing system and

5.3.1 67
flexible timing system in Integra.
5.4 ANOVA

ANOVA Analysis of Age and Respondents Opinions about given

5.4.1 68
statements.

ANOVA Analysis of Experience and Age and Respondents

5.4.2 71
Opinions about given statements.
 CHAPTER – I

INTRODUCTION
Prodapt Solutions Private Limited registered address at No. 25 a & B S Phase 5th Cross Street
Thiru Vi Ka Industrial Estate Guindy, Chennai, Tamil Nadu, 600032, India

Prodapt Solutions Private Limited is an Indian multinational software services, and operations
company headquartered in Chennai, India. The company focuses on the digital service provider
ecosystem and delivers products and services in O/BSS, SDN/NFV, robotic process automation
(RPA), business process services, infrastructure management, AI/ML, and product lifecycle
services.

In Chennai, Prodapt has offices in the Americas, Europe, India, and Africa and is an ISO
9001:2015, ISO 27001:2013, SSAE18 / ISAE, and GDPR compliant organization Prodapt
Solutions Private Limited is a multinational consulting, software services, and operations
company singularly focused on the telecom/DSP (digital service provider) industry. A subsidiary
of the Shaver Group, Prodapt provides insights and services leveraging next-gen technologies
such as Robotic Process Automation (RPA), Artificial Intelligence/Machine Learning (AI/ML),
Software Defined Networks/Network Function Virtualization (SDN/NFV), and next-gen
OSS/BSS systems.
Consultants, which is now rebranded as Prodapt Consulting. In 2019, Prodapt established its
R&D innovation lab at the Indian Institute of Technology (IIT) Madras Research Park in
Chennai, India.

Service and Offerings

Prodapt provides end-to-end IT/software architecture consulting, application development,

systems integration, testing, and maintenance & support. Its services are currently organized into
the following service lines such as Digital Impact Business outcome, O/BSS services, Digital
services, Network services, Business process services, Product engineering & launch, NextGen
labs, and Consulting.

Digital impact business outcome

Open Virtual Exchange (OVX): Product’s OVX is a unique framework that empowers Digital
Service Providers (DSPs), Cloud Service Providers, and OEMs with a globally distributed
development, test, and integration platform. OVX enables the roll-out of network-based & OTT
managed virtual edge services (such as SDWAN, Secure Access Service Edge (SASE), and D-
NFVI) along with OEM vendors for end-user requirements.

Order-to-activate(O2A): Addresses end-to-end (E2E) operations across the O2A process area.
The engagement encompasses managed transformation levers such as agile work cell, process
optimization & automation, and operational accountability.

Cloud Services: Prodapt serves DSPs a full spectrum of services such as cloud advisory &
consulting, cloud design & migration, and network edge cloud services.

Digital Contact Centre: The solution approach focuses on proactive fault handling, digital self-
service & call deflection to messaging, and AI-assisted automation for contact centre agents.

SDN NFV: Prodapt provides complete lifecycle support from conceptualization to deployment
and ongoing support of network function virtualization and software defined legacy and hybrid
networks, leveraging the DevOps and NetOps methodology. The solution offers Multi-Domain
Network Integration, Network Analytics and Service Assurance Solutions, Open Source
Platforms, and VNF Management/BSS Services: Focuses on E2E digital transformation/stack
modernization, cloudification, system consolidation, application development, E2E managed
QA, and managed services. Digital Services provide customer experience management, customer
churn prediction/management, self-care &omnichannel portals, virtual agents &chatbots.
Network Services include NetBots.AI, lab-as-a-service, network operations, SDN/NFV system
integration, and SDN/NFV solution-vendor analysis. Business Process Services encompasses
service delivery optimization, contact centre optimization, telecom-process-as-a-service, process
mining, hyper-automation, bot optimization, fallout management and operations. Product
Engineering & Launch: Provides managed services - voice, video and connectivity platforms,
E2E QA of OTT platform across devices, field trial/functional testing of RG and STB, capacity
prediction, sentimental analysis & in-home wi-fi experience management, and migration
services. ProdaptNextGen Labs offer digital capabilities such as Big Data, AI/ML,
Microservices& DevOps, and IoT. Consulting: The company provides strategy & portfolio
assessment, rationalization/transformation strategy, cloud transformation roadmap, enterprise
architecture design, long term operational performance management, program governance &
change management, and product/vendor analysis & identification. The business consulting team
provides Six Sigma process improvement and automation/RPA consulting services to telco
operations teams.

Operations

With delivery centres in the Americas, Europe, India, and Africa, Prodapt follows a global
delivery model named, Massively Distributed Delivery model for rapid scaling and resilient
delivery.

R&D Innovation Labs: By partnering with IIT Madras, Product’s R&D Labs are focused in
creating intellectual property (IP) and software products focused on the telecom industry, in the
areas of Network Virtualization, SDN-NFV, 5G, AI/ML etc.

Partnerships

Prodapt has several industry partnerships, including Intel, Nukage Networks, Salesforce,
Amazon Web Services, Sprint, Gemalto, Automation Anywhere, UiPath, and Aeries. In 2016,
Prodapt partnered with Blue Prism to deliver robotic process automation services. In March
2020, resolve partners with Prodapt to deliver IT automation and AIOps. Later in April 2020, the
company partnered with Celonas, a market leader in AI-enhanced Process Mining and Process
Excellence software. Towards the middle of the same year, in June 2020, the company
collaborated with Flex wan, the world's first open-source SD-WAN platform. During the same
month, the company partnered with Advantech cloud-IoT Group and Lanner, a hardware
provider based out of Taiwan. In July 2020, they collaborated with Live Person, an American
conversational commerce and AI software company. Later in August 2020, the company
partnered with Martinet, a software vendor and services company. Towards the end of the year,
Novi flow, an industry-leading provider of programmable network and cybersecurity
optimization fabrics partnered with Prodapt to help DSPs transform the network edge. In March
2021, the company collaborated with Vitiligous, a category-defining digital platform for
transforming complex analogy workProd apt Solutions is a leading Digital Transformation
Partner for Digital Service Providers (DSP) providing Software, Engineering and Operational
Solutions. We welcome diverse voices and fresh perspectives to strengthen our capabilities and
make better decisions. We bring in people from all walks of life who contribute together to our
growth and aspirations. Our diversity and inclusion approach lays the foundation of our work
culture. Hence, we encourage Predations and stakeholders to recognize and embrace them to
unlock our full potential. We want to be recognized as an organization where people from
diverse backgrounds and thoughts are immensely valued. We trust this will strengthen our
performance by bringing us closer to each other and fulfilling the needs of our customers. Our
Code of Conduct policies includes some basic principles of appropriateness in conduct and
standard of ethics which must be abode by every person in Prod apt. It sets out our values,
responsibilities, and ethical obligations that aim to enlighten Predations to do the right when in
doubt. Our workforce consists of individuals from 20+ countries and Predations are located
globally in 19 locations across the Americas, Europe, Africa, and Asia. We strive to provide
equal employment opportunities to everyone without being biased on gender, culture, interest,
and sexual orientation. It enables a healthy and productive workplace that promotes fair
treatment for everyone. Our workforce consists of individuals from 20+ countries and Predations
are located globally in 19 locations across the Americas, Europe, Africa, and Asia.

We strive to provide equal employment opportunities to everyone without being biased on

gender, culture, interest, and sexual orientation. It enables a healthy and productive workplace
that promotes fair treatment for everyone. At Prodapt, we believe in connecting people from
diverse backgrounds to achieve our collective goal of accelerating ‘Connectedness’. We
welcome diverse voices and fresh perspectives to strengthen our capabilities and make better
decisions. We bring in people from all walks of life who contribute to our growth and aspirations
together. Our diversity and inclusion approach lays the foundation of our work culture. Hence,
we encourage Predations and stakeholders to recognize and embrace them to unlock our full
potential.

Prodapt celebrates gender equality at work. It is our long-term commitment to increasing gender
diversity at all levels. Beyond recruiting and retaining more women, ‘Gender inclusion’ at
Prodapt implies a safe and secure work environment for all Prodapt. We want to be recognized
as an organization where people from diverse backgrounds and thoughts are immensely valued.
We trust this will strengthen our performance by bringing us closer to each other and fulfilling
the needs of our customers. Our workforce consists of individuals from 20+ countries and
Predations are located globally in 19.

OVERVIEW - PRODAPT SOLUTIONS PRIVATE LIMITED

Prodapt Solutions Private Limited is an unlisted private company incorporated on 29 January,

1999. It is classified as a private limited company and is located in Chennai, Tamil Nadu. It's
authorized share capital is INR 23.00 cr and the total paid-up capital is INR 14.55 cr.

Prodapt Solutions Private Limited's operating revenues range is Over INR 500 cr for the
financial year ending on 31 March, 2022. It's EBITDA has decreased by -18.43 % over the
previous year. At the same time, it's book networth has increased by 39.55 %. Other performance
and liquidity ratios

Description -PRODAPT SOLUTIONS PRIVATE LIMITED:

The company provides software services mainly to telecom. This description of Prodapt solution
private limited.

Products & Services: Remote infrastructure management, Internet of things, operation support
system, business support system and telecom business process services.

Category: SAAS

The current status of Prodapt Solutions Private Limited is - Active.

The last reported AGM (Annual General Meeting) of Prodapt Solutions Private Limited, per our
records, was held on 29 September, 2022.
The Corporate Identification Number (CIN) of Prodapt Solutions Private Limited is
U30007TN1999PTC041798. The registered office of Prodapt Solutions Private Limited is at
Prodapt Headquarters, No 25 A&B, South Phase, 5th Cross street,Thiru Vi Ka Industrial Estate,
Guind, Chennai City Corporation, Chennai, Tamil Nadu.

FINANCIAL REPORT - PRODAPT SOLUTIONS PRIVATE LIMITED:

This financial report of Prodapt solutions private limited for the financial year ending on 31
March, 2022.

 Revenue / turnover of PRODAPT SOLUTIONS PRIVATE LIMITED is Over INR 500

cr
 Net worth of the company has increased by 39.55 %
 EBITDA of the company has decreased by -18.43 %
 Total assets of the company have increased by 48.51 %
 Liabilities of the company has increased by 54.34 %

The financial reports of PRODAPT SOLUTIONS PRIVATE LIMITED include financial

history (previous 5 Years), ratio analysis, management details such as directors & key
persons of the company, shareholding & group structure details, mortgages & charges on
PRODAPT SOLUTIONS PRIVATE LIMITED.

Particulars Percentage of Ratio profit

Over INR 500 cr

Operating Revenue

EBITDA -18.43 %

Networth 39.55 %

Debt/Equity Ratio 00.00

Return on Equity 27.53 %

Total Assets 48.51 %

Fixed Assets 127.53 %

Current Assets 18.00 %

Current Liabilities 4.34 %

Trade Receivables 133.13 %

Trade Payables 67.79 %

Current Ratio 3.23

 Careers of PRODAPT SOLUTIONS PRIVATE LIMITED

1. Personalized career path

We are the largest singularly focussed company serving the A robust role-based
career progression plan for every Prodaptian, with opportunities to branch out to a
new business function.
2. Succession planning
Spotting and developing top performers who will define the future of Prodapt.
3. Global job rotation and IJPs
A global policy that creates a versatile portfolio for Prodaptians and provides a path
for internal movement.
4. Incubating leaders
Special programs to develop the leadership muscle in all managers—from AM to
AVP level and beyond.

 Our values of PRODAPT SOLUTIONS PRIVATE LIMITED

a) Depth
 This is lasting value comes from attention to detail, total immersion and
radical problem solving.
b) Futuristic
We are here to take our clients into the emerging present.
c) Persistence
This is keep going even when success is not in sight. To show up every day,
no matter what.
d) Speed
We learn fast, react faster. It will be agility is our way of doing.

o Benefits at PRODAPT SOLUTIONS PRIVATE LIMITED

i. Work-life Balance
 This will be hybrid Working Model of benefits to work –life balance.
 This will be holistic Vacation Plansof benefits to work –life balance.
 This will be provideWellfare, Wellness & Assistance Programs of to work
–life balance.

ii. Financial Support

 They will support of financial to prodaptian Welfare Fund
 It would be milestone Rewards
 They will be approved a soft Loan Policy for financial support

iii. Professional Growth

 It will have developed a personalized Career Progression Plans.
 It will be providing an upskilling Programs & Certification
 It would be Reimbursement
 It will be excellence Centres& Labs of prodapt solution private limited.
iv. Women in Focus
  It will be providing inclusive Policies and paid of Maternity Leave.

Overheads management
Introduction of Overheads management:

Overheads management are indirect Costs. Indirect Cost cannot be traced to any
unit. These costs are incurred for a number of units and so cannot be identified
with a cost unit. Indirect costs are those which cannot be allocated to any
particular cost unit but is generally apportioned to or absorbed by cost units on a
suitable basis. Overhead management is also known as “on cost, burden or load”.

According to the terminology of Cost Accountancy, CIMA, London, overhead is

defined as “the aggregate of indirect material cost, indirect wages and indirect
expenses”.

In the words of Wheldon, overhead may be defined as “the cost of indirect materials,
indirect labour and such other expenses including services that cannot conveniently
be charged direct to specific cost units”.

Therefore, Overheads management are heads includes as:

1. Indirect costs, which cannot be, by their nature, traced to specific units of
production.
2. Direct costs, which are so small in amount that it is inexpedient to trace them to
specific units of production.

Formula of Overheads management:

Overhead management = Indirect material + Indirect labour + Indirect expenses

Meaning of overheads management:

Overheads are any expenditure over and above the prime cost. Overheads may be
defined as all indirect costs incurred for the production of goods or services.
Overheads are also known in cost accounting terminology as ‘On Cost’, ‘Burden’,
Indirect Expenses, etc.

Indirect cost or overheads are those expenses which cannot be identified or related to
a specific or particular product or service. These overheads are not ‘Allocated’ but are
apportioned (divided) among various products or cost centres like rent, insurance,
repairs, telephone charges, etc.

As the production these days is involving capital intensive industries and on the mass
scale with automatic machines and computerised system. All this has resulted into
heavy expenditure on indirect cost which means increase in overheads. Overhead
expenses these days are very significant in the total cost of production.

So these overhead needs careful analysis for cost calculation and control of cost. The
overhead analysis, classification and apportionment to a cost centre plays a significant
 role in various types of managerial decision-making. Minimisation of overheads
(control on wastage) is very important to keep a watch on the cost of production and
production planning.

Definitions of overhead management:

 “Any cost of doing business other than a direct cost of an output of product or
service”.

– Eric L. Kohler

 “Overheads are cost of a which do not result solely from the existence of individual
cost units”. – W. M. Harper
 “Overhead represents the cost of indirect material, indirect labour and such other
expenses including services as cannot conveniently be charged to a specific unit”.
 According to CIMA, overhead costs are defined as, ‘the total cost of indirect
materials, indirect labour and indirect expenses’. Thus all indirect costs like indirect
materials, indirect labour and indirect expenses are called as ‘overheads’.

Meaning of Accounting of Overheads management:

Accounting of overheads means the method adopted by the organization to accurately

include the overhead costs in the total production cost of the finished goods.
Accounting of overheads is a much more complex matter than that of accounting of
direct costs.

The main reason for this difficulty is that overheads are specific to any cost center or
product but are incurred for the common benefit of several cost centers.

Therefore, each overhead has to be studied, analyzed and distributed to several cost
centers, departments to which the benefits of the overheads go. This gives rise to a
search for a basis of distributing the overhead. This basis or ratio of distribution is not
the same for different overheads or for different cost centers
 Features of overheads management:

1. Overhead Expenses are indirect costs.

2. They are common costs.

3. They include both escapable and inescapable. Because, discontinuance of a Cost

Centre or Cost Unit results in the avoidance of incurrence of certain items of
Overhead Expenses.

Therefore, they are called escapable. Other Overhead Expenses (i.e., which cannot be
avoided) are inescapable.

4. They comprise of both cash expenses (e.g., insurance, rent, etc.,) and book
expenses (i.e., depreciation).

5. They consist of both production expenses and non-production expenses (i.e.,

administrative, and selling and distribution expenses).

6. They are both variable and fixed.

Elements of overheads management:

1. Indirect Material Cost

2. Indirect Labour Cost
3. Indirect Services Cost

o Indirect Material Cost

Indirect material cost is that material cost which cannot be assigned to specific units
of production. Indirect material cost is common to several units of production. A few
examples for the same are consumable stores, lubricating oil, cotton waste and small
tools for general use.

Sometimes indirect material cost includes direct material cost, which is so small or
complex that direct tracing to specific units is inexpedient, for example, glue, thread,
rivets and chalks etc.
o Indirect Labour Cost

Indirect labour cost is that portion of labour cost, which cannot be assigned to any
specific units of production. Indirect labour cost is common to several units.

Salaries of foreman, supervisory staff and works manager, wages for maintenance
workers, idle time, and workmen compensation are some of the examples of indirect
labour cost, which like some direct material cost, are not assigned to the specific units
of production for the sake of expediency.

They are two categories are Employees’ social security charge and unemployment
payroll taxes.

o Indirect Services Cost:

(i) Repair and maintenance of plant and machinery,

(ii) Factory rent,

(iii) Expenses of keeping and handling of stores, and

(iv) First aid expenses.

Classifications of overheads management:

They are four steps of classifications of overheads management are:

1. According to Nature or Element

2. According to Function or Functional classification

3. According to Variability

4. According to Controllability.

1. According to Elements:
In this according to elements of Overheads management are divided into three
categories are

i. Indirect material

ii. Indirect labour

iii. Indirect expenses

2. According to Function or Functional classification

In this according to function or functional classification of Overheads

management are divided into three categories are

i. Production Overhead:

Production Overhead mean and include all indirect cost involved in the production
process. It includes indirect material, indirect labour and other indirect expenses of
the factory. Production overhead are also termed as factory overhead or works
overhead etc.

The examples include Factory’s power & lighting, factory rent, depreciation on
factory building, repairs & maintenance etc.

ii. Administrative Overhead:

All those costs which are of general natural and spent for administrative purposes will
from part of administrative overhead.

For example office staff salaries, manager salary, office stationary, rent of office
building, insurances of office building etc.

It is to remember here that the purpose for which amount is spent will constitute the
basis for its allocation. For instance if stationary is purchased for office use, it will be
administrative overhead but if the stationary is used in factory, it will be part of
production overhead.

Similarity lighting expenditure of office building is administrative overhead while

lighting expenditure of factory building will be production overhead. Therefore, the
 place and the purpose of money spent is the key to know the category of overhead
cost.

iii. Selling & Distribution Overhead:

Selling and distribution overhead include all indirect costs incurred to enhance and
maintain sales level. For example – godown expenses, packing expenses, salesman’s
salary & advertising, travelling expenditure etc.

3. According to Variability:

In this according to Variabilityof Overheads management are divided into three

categories are

i. Fixed overheads management

ii. Variable overheads management and

iii. Semi-variable overheads management

i. Fixed overheads management

 This fixed Costs are those cost which do not change because of change in the
particular production level. It means the fixed overhead is independent of production
process. Some examples are rent of building, salaries to staff, insurance of the
building, manager’s salary etc.
 It should be remembered here that concept of fixed cost is applicable only in the short
run. All costs are variable in the long run.

ii. Variable overheads management

 This is variable most confusing word. If we are talking about overhead, it has to be
indirect cost and it is generally believed that all indirect cost are fixed cost. But this is
not true. There are certain cost which are indirect costs but are variable in nature.

 They are instance, oil & lubricant expenditure of the machine. It is indirect cost
because it cannot easily be identified with the product but variable in nature as the use
of oil and lubricant depends on the level of production. Other examples are store,
power, lighting expenditure, indirect labour etc.

iii.Semi-variable overheads management

They are semi variable of overheads management are those costs which do not vary in
the same proportion as the level of production.

These are the example for semi variable Overheads management are few main heads
of costs are :

a. Depreciation of P & M

b. Inspection cost

c. Supervisors salaries

d. Repairs & maintenance

4. According to Controllability:

In this according to controllability of Overheads management are divided into two

categories are

 Controllable overhead management

 Uncontrollable overhead management

 Controllable overhead management

This is controllable overhead management are which can be influenced by the
decision of the management are called controllable overhead cost. They will be
generally variable and semi variable cost are covered in this category. This is called
as a controllable overhead management.

 Uncontrollable overhead management:

This is uncontrollable overhead management are which is not controllable at the

discretion of the management are called uncontrollable overhead cost. Generally
fixed overhead cost is covered in uncontrollable overhead e.g., rent of office, salaries
of staff etc.

Advantages of Fixed and Variableoverhead management:

This are advantages of fixed and variable overhead management are controllable
costs of segregation of cost into fixed & variable component are:

(i) Cost Control and Decision Making:

Cost control can be exercised only if the cost is divided into fixed and variable cost as
only variables cost can be controlled and reduced easily. Fixed costs are considered to
be uncontrollable costs and therefore are left while taking decisions.

But is does not mean that all fixed costs are redundant. The fixed cost which is
relevant in a particular decision making situation is known as controllable cost.

Therefore, costs are divided into relevant and irrelevant cost in decision making
process. Relevant costs may include variable as well as fixed costs.

(ii) Budget Preparation:

Cost classification helps in budget preparation for various levels of production.

Variable cost generally increases or decreases according to the level of production
while fixes cost remains same. So, all semi fixed cost need to be divided into fixed &
variable components so that a comparative budget can be prepared.

(iii) Helps in Marginal Costing:

 Division of cost into fixed and variable component helps in marginal costing. In
marginal costing, only variable costs are considered to calculate cost of production
and valuation of closing/opening stocks.

Marginal costing also helps in fixation of the price in depressions or slowdown.

Marginal costing also helps in various other decisions like make of buy, shut down,
product mix etc.

(iv) Helps in Determining Overhead Absorption Rate:

Separation of cost into fixed and variable cost helps in determination of overhead rate
separately for fixed and variable overhead cost without the use of predetermined
overhead rate. The cost cannot be absorbed without the use of overhead absorption
rate.

Importance of overhead management:

 This is importance of overhead management are necessitated the increased use of

machines, mobilisation of large financial resources, employing professional managers
for framing corporate policies and planning, transportation of materials and products,
personnel management, marketing, adherence to various business laws, tax laws,
labour laws etc.
 This resulted in incurring of large indirect costs like plant maintenance, technical
consultancy, legal advices, secretarial services, and marketing research.
 It forms a large part of total cost incurred in a firm. To ascertain the correct cost of
production, it is necessary to establish a detailed system for collection and accounting
for overheads management.

Source of overheads management:

They are six source of overheads management are :

(i) Purchase Journal and Invoices

(ii) Store requisitions

(iii) Wages Analysis Book

(iv) Cash book

(v) Journal

(vi) Different Reports and Registers.

(i) Purchase Journal and Invoices

They are purchase of journal and invoice entry are material are purchased for
different requirements and for different production departments by the purchase
department. These purchases are recorded in the purchase journals and material
control accounts and the invoices for expenses are entered in the overhead control
accounts.

(ii) Store Requisitions

They are store requisitions are prepared for the issue of indirect material like cotton
waste, lubricants, brushes, soaps, etc., are useful in collecting overheads to be charged
to the department to which issued.

(iii) Wages Analysis Book

They are wages analysis book provides ainformation regarding indirect wages,
overtime, bonus, etc. to be treated as overhead.

(iv) Cash Book

This cash book will be come in those expenses which are paid in cash are recorded in
cash book, so all those overheads management which are paid in cash and which are
not recorded anywhere else in the above said books can be collected from cash book.

(v) Journal

This will be single entry of journal book gives information about outstanding
expenses and prepaid expenses along with other items of overheads like depreciation
interest, notional rent etc.
(vi) Different Reports and Registers

This Reports has related to scrap, spoilage, wastage, idle time, idle production
capacity and various registers like plant and machinery, repair and maintenance
register etc.It will help to collect overheads management.

Overhead management of codification:

Codification is a process of representing each item by a number, the digits of which

indicate the group, the subgroup, the type and the dimension of the item. It is always
advisable to codify the overhead expenses. Codification helps in easy identification of
different items of overheads.

Methods and Objective of Overhead management of codification:

This collected overheads are grouped according to their class it is known as

classification of overheads. Each group or class is given a code number to help in
maintaining mechanised accounting and secrecy in the system. This code allotment
procedure is known as codification.

Methods of Overhead management of codification:

(i) Numbers

They are two types of numbers in Overheads management of codification is

associated with allotment of standing order, numbers to the different groups and items
of overheads are

(i) Standing Order Number – The numbers provided to production overheads are
known as standing order numbers.

(ii) Cost Accounts Number – The numbers provided to office overheads and selling
and distribution overheads are known as cost accounts numbers.

The orders in which these numbers are allotted remain fixed. These are known as
standing orders. These standing order numbers as adopted by an organisation are to
be listed in a schedule or manual.
(i) Numerical Numbers:

Under this method the various groups are allotted numerical numbers so that one
group of overhead may represent one standing order number.

Eg : 1to 20 – Indirect Expenses

21 to 30 – Indirect Labour

31 to 37 –Idle time

51 to 54 – Rent

55 to 70 – Depreciation

(ii) Alphabets:

This method alphabets are allotted to each overhead. These alphabets help in memory
and identification of overheads.

Example :

PO – Power

RE – Repair

DE – Depreciation

CA – Carriage

MA – Maintenance

(iii) Combination of numbers and alphabets:

this method both of the above methods are combined into one. Under this method
alphabet stands for head of expenses and number shows further analysis of expenses.

For Example

RE1 = Repair to factory building

RE2 = Repair to office building

RE3 = Repair to warehouse

RE4 = Repair vehicle

RE5 = Repair to furniture

This are the repair to furniture can be divided into further code number are:

RE5.1 = Repair to factory furniture

RE5.2 — Repair to office furniture

RE5.3 = Repair to warehouse furniture and so on.

(iv) Symbols.

This method is used in those concerns which are working under mechanized system
with punched card accounting. The nine digit punched card is divided into four parts.

00/000/00/00

The first part of two digits represents class of overhead, i.e., fixed or variable. The
second part of three digits represents head of overhead (Eg., idle time, etc.), the third
part of two digits signifies analysis of expenses (Eg., waiting for material). The fourth
part of two digits represents the cost centre (Eg., assembly shop).

For example, Symbol 10/120/01/07

This stands for 10 for variable cost, 120 for idle time, 01 for waiting of material, 07
for assembly shop.

Code Stands

10/120/01/07 - Variable/Idle time/Waiting for material/Assembly shop

Allocation of overhead management:

 Meaning of allocation overhead management:

Allocation of overheads management is means as a assigning a whole item of cost

directly to a cost centre. An item of expense which can be directly related to a cost
centre is to be allocated to the cost centre.

Definition of allocation overhead management:

According to The Chartered Institute of Management Accountant, London,

Terminology, allocation is defined as “the allotment of whole items of cost to
costcentres or cost units”. Expenses which originate directly and completely in a
department are identified with the foreman responsible for the supervision of that
department.

This are five categorized of Direct departmental overhead in production and service
departmentare :

i. Supervision, indirect labour and overtime.

ii. Labour fringe benefits.

iii. Indirect material and factory supplies

iv. Repairs and maintenance

v. Equipment depreciation

Methods of allocation overhead management:

This are three step of methods of allocation overhead management. It will be

construction CPA can help you determine the best way to allocate your overhead
costs. That also includes: (1) Gather Your Costs, (2) Select Your Method and (3)Get
the Technology You Need. These are also three basic steps to successful job costing.

(1) Gather Your Costs:

 It will be the real costs of completing this job. It will be take into through both
overhead and General & Administration are types of indirect costs for allocation in
Overhead management.

This are several jobs are responsible for those equipment expenses: service costs,
fluids, possibly depreciation and maybe even their cloud equipment tracking
software.They might also pool these with their other overhead costs like labor burden,
or they might keep them in separate cost pools. It can distribute equipment costs more
heavily to more equipment-intensive jobs and distribute payroll costs more heavily to
more labor-intensive jobs.

(2) Select Your Method:

This will be a establishing a basis of part of defining what cost pools you want to
allocate to your jobs is also figuring out how you want to distribute them. They are
just a few options contractors might use as a basis for allocating overhead are

 Total direct job costs

 Direct labor costs
 Direct labor hours
 Equipment costs

In this basis for indirect cost allocation should make sense for the type of cost and for
your type of business are. A labor-intensive roofing contractor probably shouldn’t
allocate their liability insurance based on truck usage. Similarly, imagine a job with a
high proportion of your direct costs but relatively low labor; you could use total direct
job costs to allocate overhead, but if that makes the project responsible for a large
share of payroll overhead.

(3) Get the Technology You Need

It simply may not be a realistic, long-term option for tracking and managing your
overhead allocation.
It is general-purpose accounting software that can work very well for small
contractors. But if it isn’t designed to allocate overhead.

Apportionment of overhead management

Apportionment of overheads is means as a distribution of overheads to more than one

cost centre on some equitable basis. This will be apportionment of overheads involves
charging a share of the aggregate production overheads to various departments or cost
centre.

Thus, apportionment will arise in respect of overheads common to more than one
department or cost centre. For example, salary of general manager is to be
apportioned to various departments on the basis of time devoted by him on several
departments.

Principles of Apportionment of Overheads management:

1. Use or Service

The overhead should be apportioned on the basis of use received by a particular

department. The greater the amount of service or use received by a department the
grater the share of an item of overhead to be apportioned to that department.

2. Survey or Analysis

According to the existing conditions overheads are proportioned on the basis of

survey for example a supervise two department X and Y giving 60% of his time in
department X and 40% of his time in department Y.

This salary will be apportioned between the two departments in the ratio 60 : 40.

3. Ability to pay

It apportionment is made on the ability to pay. Thus, higher the revenue of a

particular department, higher shall be proportionate charge for the services.
Basis of Apportionment of overhead managementare :

S.no Basis of Apportionment Overheads management

1 Floor area occupied Rent and rates, taxes,

heating and lighting.
Repairs and maintenance
of building, accident
prevention cost

2 Number of workers Canteen expenses.

employed welfare expenses,
recreation expenses. time
keeping, supervision. etc.

3 Direct wages Contribution to provident

fund,

contribution to
Employees State
Insurance Schemes,
Compensation to
workers. etc

4 Values of assets Depreciation , insurance,

repairs and maintenance
of plant and machinery,
fire insurance etc.

5 No of lights points Lighting

6 Horse power, Machine Power

hours, Machine capacities,
kilowatt hours.
 7 Material cost or number of Stores overheads
requisitions

8 No. of labour hours Salary of inspectors,

salaries of supervisors
and other administrative
expenses

9 Weight. volume, ton, km, Delivery expenses

etc.

10 Technical estimates Power/steam

consumption. internal

transport. lighting,
managerial salaries

11 Sales or total cost Audit fees

Re-apportionment of overhead management:

This is re-apportionment of overhead management are to production and service

departments, the next step is to apportion the total overheads of service departments
to production departments. As service departments are not involved in manufacturing
products, it becomes necessary to apportion the overheads of the service departments
to the production departments.

The process of redistributing the overheads of service departments to production

departments is known as re-apportionment of overheads or secondary distribution of
overheads.
Methods of Re-Apportionment of Overheads:

The following three methods are generally used to re-distribute the overheads of
service departments to production departments:

1. Direct re-distribution method

2. Step method

3. Reciprocal service method

1. Direct Re-Distribution Method:

This method of the service departments’ total overheads are directly re-distributed to
production departments. This method does not take into account the service provided
by one service department to another service department or to each other.

2. Step Method:

This method, the cost of most serviceable department, i.e. the department that renders
service to the largest number of departments, is first apportioned to other service
departments and production departments. Thereafter, the next service department is
taken up for-re-distribution and later the next, and so on, until the costs of all the
service departments are reapportioned.

The cost of the last service department is, of course, apportioned only to the
production departments. This method is also known as step-ladder method because
the tabulation of the distribution resembles a step ladder.

3. Reciprocal Service Method:

This method recognizes the fact that each service department not only renders service
to other service departments, but also receives the benefit or service from them. As
such, this method aims at re-apportionment mutually on inter-departmental basis.

There are three methods for dealing with inter-service department transfers:

i. Repeated distribution method

ii. Simultaneous equation method

iii. Trial and error method

i. Repeated Distribution Method:

This method is also known as continuous allotment method or attrition method or

iteration method. Under this method, the total overheads of all the departments as per
primary distribution summary are put on one line.

Thereafter, the overheads of service department are apportioned in turn repeatedly to

all the departments including other service departments on the basis of the percentage
given.

The overheads of the service department, which has received the least service from
other departments are distributed first. In this process of re-distribution, the service
department whose overheads have been distributed to other departments will again
receive a share of overheads of other departments.

The overheads so received will again be re-distributed to other departments. This

process is repeated until the figures of overheads in each service department becomes
negligible. This is a laborious method and therefore a computer can be used in the
calculations.

ii. Simultaneous Equations Method:

This method involves the following steps:

(a) The amount of overheads for the two service departments is to be obtained by
solving two simultaneous equations. Let x be the total overheads of the service
department P and y be the total overheads of service department Q, then the equation
will be-

x = Overheads of P Dept. + Percentage of Q Dept.

y = Overheads of Q Dept. + Percentage of P Dept.

(b) After getting the total overheads of service departments, they are to be re-
apportioned to production departments on the basis of percentages given. This
process involves only one step as compared to the previous method, which involves a
number of repeated steps.

iii. Trial and Error Method:

This method, first of all, the overheads of the first service department are apportioned
to other service departments at the given rate. Then, the overheads of the next service
department are apportioned to the first and other service departments. It repeated till
the service department overheads are exhausted or becomes negligible.

Basis of Re-apportionment of overhead management are:

S.No Service management Basis of Re- apportionment

1 Maintenance department Hours worked for each

department

2 Personnel department No. of employees or rate of

labour turnover

3 Storekeeping department No.of.requisitions, quantity or

value of materials

4 Purchase department No. of purchase orders, value of

materials purchased

5 Building service department Relative area of each department

6 Internal transport Weight, value, cranes service

handled, distance travelled
COMPANY NETWORK - PRODAPT SOLUTIONS PRIVATE LIMITED
 COMPANYPROFILE

Name of Company Prodapt Solution private limited

Type Privately held company

Industry Software

29 January 1999
Founded

Headquarters Guindy , Chennai

,
India

Number of locations 9

Area served North America, Europe, Africa

Key people VedantJhaver, CEO;
Harsha Kumar, President

Rajesh Rathod, COO

Ramanathan J, CFO

Brands Synapt, Prodapt Consulting

Services O/BSS, IoT, business process services,

network operations center, ITSM

Number of employees 2500+

Parent The Jhaver Group

Subsidiaries Prodapt Consulting

Website www.prodapt.com
 Organisation structure of Prodapt Solution private limited

Board of Directors

Chairman

CEO

Harsha Kumar

Team of leadership

Chief Technology Officer Chief Financial Officer Chief People Officer Chief Architect

EVP, Americas Executive Vice

EVP, Europe EVP, Global Delivery
President

VP, Media & VP, & Head of Cloud

SVP & Head of Cloud & VP & SBU Head, Digital
Entertainment, Europe Services
Network Services Practice Transformation

Global Head, Salesforce Head of Europe VP, Group Client Partner AVP, Delivery Americas
Practice
 Board of Directors of Prodapt Solution private limited

They are nine member of Prodapt Solution private limited in board of directors are

 AbhinavDhall (Director at Prodapt)

AbhinavDhall is an Executive Director at Affirma Capital (formerly called Standard
Chartered Private Equity), where he is responsible for investments in Technology,
Internet, Consumer, Healthcare, Energy, and Logistics.
 Antony Jacob (Director at Prodapt)
Antony Jacob is the current Director at Prodapt Solutions. Antony has previously held
positions at Apollo 24|7, Searchlight Health, and Prodapt. From April 2009 to
January 2020, they were the Managing Director and Chairman Board of Management
at Apollo Munich Health Insurance Company Ltd. In this role, they refined the start-
up business in India from the granting of licence in October 2000 to commencement
of business in March 2001. Antony was also a Member & Current South Asia
Regional Board Member at YPO and Managing Director at Royal Sundaram Alliance
Insurance Company Limited from January 2000 to December 2007. Most recently,
they were the Regional Finance Director, Asia & Middle East at RSA Group from
January 2008 to March 2009.
 Gary Heffernan (Vice Chairman, Strategy at Prodapt)
Gary launched his vehicle Xcelerate in January 2020, a venture that provides advisory
services to international CEOs. The focus is on helping companies to drive
exponential growth in digital-related services.
Prior to Xcelerate, Gary was Senior Managing Director of Accenture and spearheaded
many of its early large-scale outsourcing deals in BP, LSE, & BT. In this role, he led
Accenture’s Communications, Media & Technology (CMT) operating unit in Europe,
Latin America, Middle East & Africa and was a member of the CMT Global
Leadership Committee. His functional expertise spans across CMT P&L account,
covering strategy, consulting, technology, operations & digital businesses.
 Gary is based in Paris. He is an ardent sports lover and has been a writer, speaker, and
facilitator at key industry events including Mobile World Congress. He currently
serves as a Trustee of Street Child, which funds and delivers education for children in
12 African and Asian countries. He holds a BSC degree in Technology & Business
Studies from Strathclyde University and a professional degree from the Institute of
Internal Cost & Management Accountants (ICMA).

 G. Vishnu Vardhan (Director at Prodapt)

 J K Jhaver (Director at Prodapt)
 RajaniSeshadri (Advisor at Prodapt)
 Raju Venkatraman (Director at Prodapt)
 SubhashDhar (Advisor at Prodapt)

Subhash is the co-founder & CEO of Commence Mint Ventures, a firm focused on
developing early-stage Indian startups seeking global markets. In this role, he is a
mentor and advisor to companies on go-to-market strategies and transforming
disruptive tech ideas into global business.

 UdaiDhawan (Director at Prodapt)

UdaiDhawan is a Founding Partner and Head of India Private Equity at Affirma

Capital. Udai has over 24 years of financial services experience and represents
Affirma Capital on the boards of several portfolio companies.

• CEO of Prodapt Solution private limited

Harsha Kumar (CEO at Prodapt)

Harsha focuses his time helping leading digital service providers (DSPs) transform
their IT, products, operations, and networks to meet their strategic objectives.

• Chairman of Prodapt Solution private limited

 Vedant is the Founder and CEO of Prodapt. He is also the Group President and a
member of the Board of Directors of the Jhaver Group of Companies. Vedant leads
the group’s information technology, agricultural inputs, and apparel accessories lines
of businesses.

The Jhaver Group is a 120-year-old conglomerate of companies with business in

healthcare, agricultural inputs, information technology, infrastructure, and apparel
accessories. The group employs over 18,000 people across 64+ offices globally.
Vedant started the technology businesses of the group, including Prodapt Solutions
and DatamarkProdapt BPO. Earlier, he managed Jhaver Group’s internal technology
division based in Chennai. Prior to his current role in the Jhaver Group, Vedant
worked at Sapient Corporation in San Francisco.

Vedant holds a Master’s in Computer Science Engineering and Business Management

from Cornell University, and a Bachelor’s Degree in Computer Science from the
University of Madras. He is a member of the Young Presidents’ Organization (YPO),
Madras Management Association (MMA) and NASSCOM.

 Rajesh Rathod (Chief Technology Officer at Prodapt)

As the Chief Technology Officer, Rajesh Rathod assists the CEO & the Board in
building strategic growth drivers focused on next-generation technology and
capability development. Rajesh is also responsible for scaling Prodapt labs, building
next-gen technology offerings and IP frameworks to boost future growth, in addition
to driving the M&A technology strategy. As part of the role, he also oversees the
learning & development function to prepare Prodaptians for the next phase of growth.

 Satish Tiwari (Head of Europe at Prodapt)

Satish Tiwari is currently the Head of Europe at Prodapt Solutions. Satish has
previously held positions at Virtusa, Sapient, Headstrong, and Servion Global
Solutions. Tiwari has over 20 years of experience in the IT industry, with a focus on
the banking and financial services sector. Satish has been based in Europe for the
 majority of their career, and has played a key role in the growth of several companies
in the region.

Satish Tiwari has a MBA in Marketing from Symbiosis Institute of Digital &
Telecom Management (SIDTM), Pune and a BSc in Physics, Mathematics from
University of Allahabad.

Satish Tiwari reports to VedantJhaver, Chairman & CEO. Some of their coworkers
include Mukul Gupta - EVP, Europe, SmitaKatariya - Global Head, Salesforce
Practice, and Diego Burset - AVP, Delivery Americas.

 SriramNatarajan(EVP, Global Delivery at Prodapt)

Sriram Natarajan heads the Global Delivery at Prodapt. With his deep cross-domain
knowledge and versatile experience in the IT services industry, he has an outstanding
track record in leading and scaling business units. In his career spanning over 25
years, he has successfully managed P&Ls of about $1 billion.
Sriram has exceptional proficiency in nurturing client relationships across the globe.
He has anchored some of the largest transformative engagements during his earlier
tenure at both Cognizant and Infosys. He has won multiple organizational excellence
awards for delivery, pre-sales, and people development.
At Prodapt, Sriram is focused on strengthening and scaling delivery across practices,
along with driving holistic people development.

Sriram holds a bachelor’s degree in Engineering from the Indian Institute of

Technology, Madras. On the personal front, he is an avid reader of non-fiction, a
sports enthusiast with a particular addiction to cricket, and a horology aficionado.

 SandipMishra(Chief People Officer at Prodapt)

 As Chief People Officer, Sandip Mishra leads Prodapt’s human resources function
globally. As part of his role, Sandip is responsible for overall road map for HR,
people strategy, talent acquisition, talent engagement, and learning & development
initiatives across Prodapt.

 ArunPai (EVP, Americas at Prodapt)

ArunPai works closely with Digital Service Providers (DSPs) to help them achieve
their business objectives of growing revenues, enhancing customer experience and
controlling their costs. Arun also works with key players in the technology space,
who build and deploy products in the telecommunication industry. He has spent
significant time in helping his clients transform their business processes and systems
to drive enhanced value. He is responsible for key relationships in the Americas.

Prior to Prodapt, Arun had spent a significant part of his career with HCL
technologies working across multiple geographies including India, Asia Pacific,
Europe and the US. He has worked across various industry verticals including Hitech,
Manufacturing, Aerospace & Defense, Travel &Transportation and utilities. He also
has significant experience working on outsourced Product Engineering.

 Sanjeev Honakhande(VP, Media & Entertainment, Europe at

Prodapt)

Sanjeev Honakhande is the VP, Media & Entertainment, Europe at Prodapt Solutions.
Prior to joining Prodapt, Sanjeev served as the Senior Vice President, Strategy, Sales
and Global Partnerships at Straive from February 2020 to April 2021. Sanjeev was
responsible for helping Straive's customers 'untrap' business value from their data &
content operations with combined application of AI based automation and traditional
outsourcing levers.
 Before their time at Straive, Sanjeev was with Cognizant Technology Solutions as the
Senior Client Partner - Information, Media and Entertainment from March 2008 to
February 2020. There, they were responsible for revenue growth and P&L for their
Information, Media and Entertainment business unit. Some of their notable
accomplishments include acquiring double digit new client logos since 2008 and
achieving a FY2019 annual run rate from these acquired accounts of $x0+ millions
with a 5 year CAGR of 22.7%.

Sanjeev started their career in July 1998 at Tata Consultancy Services as the Practice
Lead - Media and Entertainment before moving on to their role at Cognizant.

Sanjeev Honakhande graduated with a Bachelor of Engineering in Electronics and

Communication from the Manipal Institute of Technology. Sanjeev then went on to
complete the Oxford Executive Leadership Programme at the Saïd Business School,
University of Oxford. Finally, they completed The Entrepreneurial Edge programme
at the London Business School.

Sanjeev Honakhande reports to VedantJhaver, Chairman & CEO. They work with
Mukul Gupta - EVP, Europe, Antony Savarimuthu - VP & SBU Head, Digital
Transformation, and Harsha Kumar - President, Prodapt.

 RamanathanJ(Chief Financial Officer at Prodapt)

Ram is a senior executive with about two decades of rich and diversified experience
in the IT/ITES industry, in the areas of taxation, business reporting, budgeting,
mergers & acquisitions, capital budgeting, and working capital management. Ram is
responsible for the entire financial operations of Prodapt globally – including
financial and business planning and reporting, global accounting, taxation,
compliance, banking, and de-risking. The finance and operations teams including
administration, travel, purchase, and legal functions report to Ram.

 Mukul Gupta (EVP, Europe at Prodapt)

 Mukul is the EVP & Head of Europe operations at Prodapt. With around three
decades of experience in Telecom, Energy & Financial sectors, Mukul has played a
crucial role in enabling customer's businesses to prepare for the future. He holds a US
patent for 'Collaborative Customer Service Model’ in Telecom.

Prior to Prodapt, Mukul was an AI entrepreneur and co-founded MachineOS to create

a self-learning AI platform, which generated high confidence, long-range predictions
for Telecom operations. Before that, he spent over 20 years with Infosys, handling
various executive, regional sales, & global account leadership roles in Europe,
Australia, NZ, US & India across Telecom & Energy sectors. He is an 8 time
recipient of the annual Infosys Awards for Excellence & Infosys Chairman Award.
Mukul was also associated with Deutsche Bank, Singapore for 3 years, responsible
for the implementation of DB’s multi-currency system for Asset Management &
Custodian Services.

Mukul has been an active speaker and panelist at international forums in Europe, the
US, Australia & China. His thought leadership in the industry has been acknowledged
by the Millennial media (The Market Mogul), leading publications (Power
Engineering International, Capacity, Mycustomer.com, Light Reading, Total
Telecom, Mobile News), analysts (Gartner, Ovum), and international organizations &
forums (IEC, IPDR, Marcus Evans, ACIF, Quest, NOA UK, BITE).

Mukul holds a B.Tech in Electronics & Communications from the Indian Institute of
Technology, Varanasi.

 John Kat (Chief Architect at Prodapt)

John Kat is the current Chief Architect at Prodapt Solutions. John has also worked as
a Senior Sales Engineer at StreamSets Inc. and Waterline Data. John's previous
positions include Technology Specialist at the Department for International Trade
(DIT) and Head of Technology and Architecture, Chief Enterprise Architect at
Tesco.com.
 John Kat graduated with a Bachelor of Economics from Flinders University. John
then went on to complete a Graduate Diploma in Public Law at The Australian
National University.

John Kat reports to VedantJhaver, Chairman & CEO. They work with Sriram
Natarajan - EVP, Global Delivery, Mukul Gupta - EVP, Europe, and Satish Billakota
- VP, & Head of Cloud Services.

 NareshGovindarajan (VP, Group Client Partner at Prodapt)

NareshGovindarajan is the current VP, Group Client Partner at Prodapt Solutions.

Naresh has held this position since May of 2021. Prior to their current role, Naresh
served as the AVP sales for Coforge from February 2019 to May 2021, responsible
for new business sales and client partner for strategic relationships in Europe. From
May 2017 to February 2019, they were the Senior Vice President - Global Head of
Strategic Partnerships for Servion Global Solutions where they were responsible for
establishing strategic partnerships to create channel based revenue streams across
Americas, Europe and Asia. As part of the Global leadership team at Servion, Naresh
was also responsible for internal competency building along with joint value creation
for customers and partners. Creating a strong partner ecosystem for Servion based on
trust, collaboration and integrity. Prior to their role at Servion, Naresh served as the
Business Unit Head - Europe for Virtusa from October 2015 to May 2017 and as the
Business Segment Head - UK for Virtusa from October 2014 to October 2015.
Naresh also served as the Head of Solution Sales Europe for Virtusa from July 2012
to October 2014. Naresh's first role in the industry was as a Business Development
Manager for Headstrong from December 2010 to May 2012.

NareshGovindarajan holds a Bachelor of Engineering in Computer Science from

Coimbatore Institute of Technology. Naresh also has a Higher Secondary certification
in Physics, Chemistry, Mathematics and Computer Science from M Ct M. In addition,
 they have a Certification from Oracle in Oracle FLEXCUBE Universal Banking &
Oracle Banking Payments Sales Specialist.

Their manager is VedantJhaver, Chairman & CEO. They are on a team with Sanjeev
Honakhande - VP, Media & Entertainment, Europe, Ramanathan J - Chief Financial
Officer, and Mukul Gupta - EVP, Europe.

 SmitaKatariya(Global Head, Salesforce Practice at Prodapt)

SmitaKatariya is the Global Head of Salesforce Practice at Prodapt Solutions. Smita

has over 9 years of experience in Salesforce and Siebel implementations and
integrations. Smita has worked extensively with Salesforce, Siebel 8.1 HTIM, and
Microsoft Dynamics SL. Smita has been responsible for managing multi-resource
implementation teams, roadmap planning, vendor selection, and research and analysis
for multiple projects.
SmitaKatariya holds a Bachelor's in Computer Science from RYK College of
Science, a Master's from SardaKanyaVidyaMandir in Nashik, and a Master's from the
University of California, Santa Cruz. Smita is certified in KCS Practices V5 from the
Consortium for Service Innovation and Microsoft MCSD. Smita is also certified in
SAP ABAP4 from Salesforce.com and Salesforce Administrator, Advanced
Administrator, Developer, Sales Cloud Consultant, and Service Cloud Consultant
from Salesforce.com.

SmitaKatariya works with Mukul Gupta - EVP, Europe, John Kat - Chief Architect,
and Satish Billakota - VP, & Head of Cloud Services. Their manager is VedantJhaver,
Chairman & CEO.
 CHAPTER- II

OBJECTIVES OF THE STUDY

 CHAPTER-II

OBJECTIVES OF THE STUDY

Primary objective:

1. To study overhead management at M/s Prodapt IT solution Private limited company.

Secondary objective:

1. To asses the efficiency of cost management of usingusingOverhead expenses ratio,

Overhead expenses employee and Overhead cost reduction rate.
2. To analysis and compare the actual overhead cost with standard overhead cost using
Overhead variance technique of Overhead Expenses Index.
3. To determine the contribution of indirect costs to overall probability of business using
Overhead return on Investment (ROI).
4. To determine contribution of investment on asset over firm probability using return
on assts(ROA).
NEED FOR THE STUDY

The need for the study of overhead management in informational technology company is to
programming languages, database management, cyber security, and web designing of the
company.By analysing the financial statements, ratio analysis and competitive advantage of a
informational technology company, investors can make informed investmentdecisions and
identify opportunities for long-term growth and profitability.Similarly, in the informational
technology sector expenses include purchased software and software as a service and data/voice
network equipment dedicated to data networksresearch anddevelopment efforts, marketing
strategy, and brand reputation of a company can helpinvestors assess its competitive position and
potential for future growth.Overall, the study of overhead management is essential important day
to day expenses will be managing company’s financial performance of reducing will be gain the
profit in right way of analysis financial report decision consider to company development.
 SCOPE OF THE STUDY:

 They are main scope of overheads management are Identification of Overhead

Costs,CostClassification,Budgeting and Forecasting,Resource Optimization
 They study of scope on step involves identifying and categorizing all indirect costs
associated with the organization's operations. This includes costs related to facilities,
administration, utilities, maintenance, and more.
 This will be scope of Overheads management are integrated into the organization's
budgeting and forecasting processes to ensure that they are adequately accounted for
and managed.
 Limitations OF THE STUDY:

 A study of limitations of overheads management are essential for controlling costs

and optimizing an organization's financial performance, it is not without its
limitations and challenges.
 A study of limitations of overheads management are remains critical for organizations
to maintain financial health, competitiveness, and sustainability. Overheads
management must strike a balance between cost control and other strategic objectives
 This limitations of overheads management are employees and management may resist
changes aimed at reducing overhead costs, especially if it involves layoffs or
significant process changes.
CHAPTER-III

REVIEW OF LITERATURE
 Review of literature

 Sadi A. Assaf

This paper investigates the overhead cost practices of construction companies in

Saudi Arabia. Although overhead costs are extremely important in construction
estimation, they can be easily overlooked. Neglecting overhead has forced some
contractors out of business, because these costs constitute a significant portion of the
total construction cost. The practices of 61 large building construction contractors
were investigated via questionnaire. The questionnaire has three parts covering the
construction firms, overhead costs in general, and company overhead costs. Results
show that average overhead cost is slightly higher than the ratio reported in the
literature. The average percentage of company overhead costs to project direct cost is
greater than 10%. Causes of increased company overhead costs include delayed
payments, shortage of new projects, cost of inflation and governmental regulations.
Factors affecting company overhead costs include the following: automobile and
equipment costs, head office expenses, labor related costs and financing costs. The
unstable construction market makes it difficult for contractors to decide on the
optimum level of overhead costs that enables contractors to win and efficiently
administer large projects

 S. hesami

Construction sector is the one of the largest employer in the country. It has become a
highly competitive field with a minimum profit. Construction costs are two types; one
is direct cost (labors,
materials, P & M, Equipments etc...) Other one is indirect costs/Overhead costs (Staff
salaries, Staff benefits, Conveyance, Labor miscellaneous, Internet, Watch and ward
etc.)
 SHU ING DOH
Cost overrun is a frequent phenomenon in the construction projects in all countries,
whether it developed or developing country. This problem is critical issues that affect
project success. Thus it requires serious attention from all participants in construction
projects to keep the projects in safe mode, to be completed within its limited cost,
time and quality. Cost overrun have negative impact in performance of construction
projects, that because construction industry is huge and complex. Any problem occurs
through the life cycle of project lead to other problem in different parts of project.

 Eksteen, B and Rosenberg, D

Professor of Construction Management, Faculty of Economic and Building Sciences,
University ofPort Elizabeth, P.O. Box 1600, Port Elizabeth, 6000, South Africa
Senior Lecturer in Cost and Management Accounting, Faculty of Economic and
Building Sciences,University of Port Elizabeth, P.O. Box 1600, Port Elizabeth, 6000,
South Africa
Costs not directly attributable to or recoverable from production and sales are
oftenloosely referred to as overhead costs. In construction, some of these result from
theorganisation structure, size and form of the enterprise, some apply more directly
tosite operations and some may lie somewhere in between. Overhead costs
largelyrepresent the enterprise’s operational capacity, including aspects of both
physicalcapacity such as plant and equipment and intellectual capacity such as data,
records,expertise, experience and knowledge. The fluctuating nature of the
constructionmarket periodically compels enterprises, for competitive and survival
reasons, toadopt shrinkage strategies. These may include retrenchments and
downscaling ofoffice and other facilities and often represents loss of capacity. When
markets againexpand, replacing lost capacity is problematic. Budgeting for overheads
when biddingand recovering them from contract revenues in a dynamic market is a
furtherchallenging factor in optimally balancing overheads against capacity. By
 means of areview of literature and the results of preliminary surveys among large and
medium-sized contractors, this paper presents progress on current research into
managingoverheads in South African construction enterprises. The objective of the
project is topromote productivity through optimal management of overheads
Administration, IT, data bases, records and particular skills. Resource factors such
asspecial expertise may secure a certain competitive advantage for the
firm.Construction firms are constantly faced with the dilemma of having to adjust the
levelof their overheads. In periods when predetermined volume targets are not
reached,whether caused by low activity in the construction cycle or because of
unsuccessfulbidding, firms may face severe financial difficulty, even insolvency,
unless theyreduce overheads. This is usually done by means of retrenchments,
redundancies,disposal of facilities or assets, discontinuation of services, and non-
maintenance ofrecords and data bases. Such measures may affect the firm’s ability to
compete and,when a market recovery occurs, firms having reduced overhead may
find themselvesat a disadvantage from both capacity and competitive points of
view.Two types of overheads exist in construction firms – those that are site related,
knownas Preliminaries or Preliminary and General (P and G) or Establishment Costs,
andthose applying to the entire firm, known as office, general or corporate overheads.

 Brian Eksteen and David Rosenberg

Costs not directly attributable to or recoverable from production and sales are often
loosely referred to as overhead costs. In construction, some of these result from the
organisation structure, size and form of the enterprise, some apply more directly to
site operations and some may lie somewhere in between. Overhead costs largely
represent the enterprise’s operational capacity, including aspects of both physical
capacity such as plant and equipment and intellectual capacity such as data, records,
expertise, experience and knowledge. The fluctuating nature of the construction
market periodically compels enterprises, for competitive and survival reasons, to
adopt shrinkage strategies. These may include retrenchments and downscaling of
office and other facilities and often represents loss of capacity. When markets again
expand, replacing lost capacity is problematic. Budgeting for overheads when bidding
and recovering them from contract revenues in a dynamic market is a further
challenging factor in optimally balancing overheads against capacity. By means of a
review of literature and the results of preliminary surveys among large and
mediumsized contractors, this paper presents progress on current research into
managing overheads in South African construction enterprises. The objective of the
project is to promote productivity through optimal management of overheads.

Fei Xu &Fangming Liu

Infrastructure-as-a-Service (IaaS) cloud computing offers customers (tenants) a

scalable and economical way to provision virtual machines (VMs) on demand while
charging them only for the leased computing resources by time. However, due to the
VM contention on shared computing resources in datacenters, this new computing
paradigm inevitably brings noticeable performance overhead (i.e., unpredictable
performance) of VMs to tenants, which has become one of the primary issues of the
IaaS cloud. Consequently, increasing efforts have recently been devoted to
guaranteeing VM performance for tenants. In this survey, we review the state-of-the-
art research on managing the performance overhead of VMs, and summarize them
under diverse scenarios of the IaaS cloud, ranging from the single-server
virtualization, a single mega datacenter, to multiple geodistributed datacenters.
Specifically, we unveil the causes of VM performance overhead by illustrating
representative scenarios, discuss the performance modeling methods with a particular
focus on their accuracy and cost, and compare the overhead mitigation techniques by
identifying their effectiveness and implementation complexity. With the obtained
insights into the pros and cons of each existing solution, we further bring forth future
research challenges pertinent to the modeling methods and mitigation techniques of
VM performance overhead in the IaaS cloud.
CHAPTER-IV
RESEARCH METHODOLOGY
 CHAPTER IV

RESEARCH METHODOLOGY

MEANING

Research is an art of scientific investigation. The advanced learner’s

dictionaries of current English lay down the meaning of research as, “a careful
investigation (or) inquiry especially through search for new facts in any branch of
knowledge”.

DEFINITION

Reedmen and Mary research as a “systematic effort to gain knowledge”.

METHODOLOGY

Methodology is a way to systematically solve the research problem.

RESEARCH DESIGN

The Research Design undertaken for the study is descriptive one. A study,
which wants to portray the characteristics of a group or individuals or situation, is
known as descriptive study. It is mostly qualitative in nature. The main objective of
descriptive study is to acquire knowledge. In the present study, descriptive method is
used to study the prevailing organizational climate.

Tools of formula

1.Overhead Expenses Ratio

2.Overhead Variance

3.Overhead Return on Investment (ROI)

4.Overhead Expenses per Employee

5.Overhead Cost Reduction Rate

6.Overhead Expenses index

7.Return on asset (ROA)

CHAPTER-V
ANALYSIS AND INTERPRETATION
 CHAPTER-V
ANALYSIS AND INTERPRETATIONS

1.Overhead Expenses Ratio

2.Overhead Variance

3.Overhead Return on Investment (ROI)

4.Overhead Expenses per Employee

5.Overhead Cost Reduction Rate

6.Overhead Expenses index

7.Return on asset (ROA)

1. Overhead Expenses Ratio

The overhead expenses ratio, also known as the overhead cost ratio or overhead ratio,
is a financial metric that expresses the proportion of overhead expenses to a specific
base, often total revenue or total sales. This ratio helps assess the efficiency of cost
management and operational performance within a business. The formula for
calculating the overhead expenses ratio

Overhead Expenses Ratio = Total Overhead Expenses / Total Revenue x100

S.NO YEAR TOTAL OVERHEAD TOTAL OVERHEAD
EXPENSES REVENUE EXPENSES RATIO

1 2019-20 1,348.50 737.80 182.7747863

2 2020-21 1,461.12 812.45 179.8417898

CHART ANALYSIS OF OVERHEAD EXPENSES RATIO

 INTERPERATION:

 From the table calculaton are doing using total overhead expenses by total
reveunes.The ratio are 182.77 and 179.84 from the year 2019-20 and 2020-21 in the
two year’s of overhead expenses ratio.
 The value of overhead expenses ratio is decreasing in 2020-21 in 179.84 between in
compering 2019-20 at 182.77.
 Hence, we can conclude that decrease in the value of overhead expenses ratio will
next year of value in revenue will be increase , it will increase profit.

2. Overhead Variance:
Overhead variance refers to the difference between the actual overhead costs incurred
by a business and the standard overhead costs that were expected or budgeted for a
particular level of activity.

There are typically two components to overhead variance:

 Variable Overhead Spending (Rate) Variance: This part of the variance is related
to the difference in the actual variable overhead rate (the actual cost per unit of the
allocation base, such as machine hours) and the standard variable overhead rate.
 Fixed Overhead Spending (Budget) Variance: This part of the variance measures
the difference between the actual fixed overhead costs and the budgeted or standard
fixed overhead costs.
Formula: Overhead Variance = Budgeted Overhead - Actual Overhead

BUDGETED ACTUAL OVERHEAD

S.NO YEAR
OVERHEAD OVERHEAD VARIANCE

1 2019-20 1,440.00 1,348.50 91.50

2 2020-21 1,684.00 1,461.12 222.88

CHART ANALYSIS OF OVERHEAD VARIENCE:

 INTERPERATION:

 From the table calculation are doing using budgeting overhead by Actual overhead.
The overhead variance is 8,829.66 and 19,588.38 from the year 2019-20 and 2020-21
in the two years of overhead variance.
 The value of overhead variance is increasing at period has a 2020-21 in 19,588.38
 In this budgeting overhead has an increased in 2020-21 because of 2019-20 is
allocated value is short budget of actual value.
 So, that 2020-21 is budgeting overhead will be increasing as actual overhead will be
decreasing at estimating value of actual value.
 Hence, we can conclude that decrease in the value of actual overhead will be next
year maintained a net profit.

3. Overhead Return on Investment (ROI):

The concept of "Overhead Return on Investment (ROI)" is not a standard financial

metric or ratio in common use. Return on Investment (ROI) is typically calculated by
comparing the gain or return generated from an investment to the cost of that
investment.
FORMULA

ROI =(Net profit / Investment cost) x 100

It may be involve determining how efficiently these indirect costs contribute to the
overall profitability of the business. The formula for calculating Overhead ROI could
be adapted to focus on the net profit generated from the utilization of overhead
resources by way of calculating this formula in ROI =(Net profit / Investment cost) x
100

S.N
YEAR Net profit Investment ROI
O

1 2019-20 145.49 2.4885 5,846.49

2 2020-21 180.80 0.5 36,160.00

This ratio provides insight into the effectiveness of the business in generating profit
relative to its overhead expenses. A higher Overhead ROI indicates that the business
is efficiently utilizing its overhead resources to generate profits. In this way of
calculating of formula in ratio of overhead ROI = ( Net profit / overheads cost) x 100

S.N
YEAR Net profit Overhead expenses Overhead ROI
O

1 2019-20 145.49 1,348.50 10.8

2 2020-21 180.80 1,461.12 12.4

 CHART ANALYSIS OF OVERHEAD RETURN ON INVESTMENT:

INTERPERATION:

 From the table calculation are doing using Net profit by overhead expenses. The
overhead return of investment is 10.8 and 12.4 from the year 2019-20 and 2020-21 in
the two years of overhead variance.
 The value of overhead return on investment is increasing at period has a 2020-21 in
12.4
 In these overhead expenses has an increased in 2020-21 because of 2019-20 is
allocated value is short budget between to actual overhead expenses.
 So, that 2020-21 is revenue also increasing in period of net profit.It could manage
actual overhead expenses.
 Hence, we can conclude in 2020-21 is overhead return on investment will be
increasing in calculating of the ratio analysis.

4. Overhead Expenses per Employee:

"Overhead Expenses per Employee" is a financial metric that assesses the average
cost of overhead expenses associated with each employee in a company. Overhead
expenses, also known as indirect expenses, include various non-production costs
necessary for the operation of the business but not directly tied to the production of
goods or services. These can include rent, utilities, office supplies, administrative
salaries, and other general operating expenses.

Formula: Overhead Expenses / Total Number of Employees

S.N Overhead Noof Overhead per

YEAR
O Expenses Employees Employee

1 2019-20 1,348.50 1000 1.35

2 2020-21 1,461.12 1200 1.22

CHART ANALYSIS OF OVERHEAD PER EMPLOYEE

 INTERPERATION:

 From the table calculation are doing using overhead expenses by total number of
employees. The overhead per employees 1.35 and 1.22 from the year 2019-20 and
2020-21 in the two years of overhead per employees.
 The value of overhead per employees is decreasing at period has a 2020-21 in 1.22 in
ratio analysis.
  In these overhead expenses has an increased in 2020-21 because of new recruitment
of fresher employees in +200 employees.
 So, that 2020-21 is overhead expenses also increasing in period. It could manage
number of employees in expenses.
 Hence, we can conclude in 2020-21 is overhead per employees will be decreasing in
calculating of the formula in overhead management.

5. Overhead Cost Reduction Rate

Overhead cost reduction rate is a measure that indicates the percentage reduction in
overhead costs achieved through cost-cutting measures or efficiency improvements.
Overhead costs refer to indirect costs that are not directly tied to the production of
goods or services but are necessary for the overall operation of a business. These
costs may include rent, utilities, administrative salaries, and other general expenses.

The formula for calculating the overhead cost reduction rate is:

- Formula: (Overhead Expenses in Year 1 - Overhead Expenses in Year 2) / Overhead

Expenses in Year 1

S.NO YEAR OVERHEAD OVERHEAD OVERHEAD OVERHEAD COST

EXPENSES EXPENSES EXPENSES REDUCTION RATE
OF YEAR 1 OF YEAR 2 OF YEAR 1

1 2019-20 1348.50 0.08

1,348.50 1,461.12
 CHART ANALYSIS OF OVERHEAD COST REDUCTION RATE:

INTERPERATION:

 From the table calculation are doing using overheadExpenses in Year 1 less Overhead
Expenses in Year 2 divided by overhead Expenses in Year 1. The overhead cost
reduction rate 0.8 from the year 2019-20 of overhead cost reduction rate.
 The value of overhead cost reduction rate at period has a 2019-20 in 0.8 of calculating
of formula has overhead management.
 In these overhead expenses has an increased in 2020-21 and overhead expenses has a
decreasing in 2019-20
 Hence, we can conclude in 2019-20 is overhead cost reduction rate will be calculating
of the formula in overhead management.

6. Overhead Expenses index:

Overhead Expenses Index refers to a measure or index that reflects the changes in
overhead expenses over time. Overhead expenses are indirect costs incurred by a
business that are not directly tied to the production of goods or services. These costs
 include items such as rent, utilities, administrative salaries, and other general
operational expenses.

Select a Base Period:

 Being choose a specific period in time as the base period. This is the period for which
you will set the index value to 100.

Identify Overhead Expenses Components:

 Identify the key components of overhead expenses that you want to include in the
index. This could include items such as rent, utilities, insurance, etc.

Calculate the Index:

For each component, calculate the ratio of the current period's expense to the expense
in the base period.

= (Actual Overhead Expenses / Budgeted Overhead Expenses) x 100

Monitoring:

Regularly update the index to monitor changes in overhead expenses over time.

Keep in mind that the specific formula and components included in the calculation
may vary based on the organization's needs and the industry it operates in.
Additionally, it's essential to consider the context and potential external factors that
may influence overhead expenses, such as inflation, changes in business operations,
or economic conditions.

S.NO YEAR ACTUAL BUDGETED OVERHEAD

OVERHEAD OVERHEAD EXPENSES
EXPENSES EXPENSES INDEX

1 2019-20 1,348.50 1440 93.64

2 2020-21 1,461.12 1684 86.76

CHART ANALYSIS OF OVERHEAD EXPENSES INDEX:

INTERPERATION:
 •From the table calculation are doing using Actual overhead expenses by Budgeting
overhead expenses. The overhead expenses index 93.64 and 86.76 from the year
2019-20 and 2020-21 in the two years of overhead expenses index.

•The value of overhead expenses index is decreasing at period has a 2020-21 in 86.76
in ratio analysis.

•In these overhead expenses has a decreased in 2020-21 because of over expenses in
due to period of 2020-21

•So, that 2020-21 is overhead expenses index also decreasing in period. It could be
increasing a net profit of company.

•Hence, we can conclude in 2020-21 is overhead expenses index will be decreasing in

calculating of the formula in overhead management.

7. Return on Assets (ROA)

Return on Assets (ROA) is a financial ratio that measures a company's ability to

generate profit from its assets. It provides insight into how efficiently a company uses
its assets to generate earnings.

Formula: ROA = (Net income / Average Total assets) x 100

Net Income is the company's net profit or net income for a specific period of 2019-20
and 2020-21.Average Total Assets is the average total assets over the same period. It
is calculated by adding the beginning and ending total assets for a period and dividing
by 2.The ROA ratio is expressed as a percentage. A higher ROA indicates more
effective utilization of assets to generate profits. Conversely, a lower ROA suggests
that the company is less efficient in converting its assets into earnings.

It's important to note that industries may have different average ROA values due to
variations in capital intensity and business models. Therefore, when using ROA for
comparative analysis, it is often most meaningful when comparing companies within
the same industry.ROA is a key component in evaluating a company's overall
financial performance and is commonly used by investors, analysts, and financial
institutions as part of their assessment of a company's profitability and efficiency.
S.No Year Net income OR Average Total ROA
Net profit assets

1 2019-20 145.4 20.015 726.90

9

2 2020-21 180.8 27.675 653.30

0

"Average Total Assets" refers to the mean or average value of a company's total
assets over a specific period. It is a financial metric commonly used in various
financial ratios to provide a more representative figure for analysis.

Average Total Assets = Beginning Total Assets + Ending Total Assets / 2

efficiency.

S.No Year Beginning of EndingTotal Average

fixed Assets Assets Total assets

1 2019-20 12 16.03 20.015

2 2020-21 16.03 23.29 27.675

CHART ANALYSIS OF RETURN ON ASSETS (ROA)

INTERPERATION:

•From the table calculation are doing using net income or net profit by average fixed
assets. Return on assets is 726.9 and 653.3 from the year 2019-20 and 2020-21 in the
two years of return on assets.
•The value of return on assets in period of 2020-21 is decreasing has 653.3 because of
current liabilities of short term and long-term loan will increasing at period of 2020-
21

• Hence, we can conclude in 2020-21 is Return on assets will be decreasing in

calculating of the formula in overhead management.
 CHAPTER-VI
FINDINGS OF THE STUDY
 CHAPTER-VI

FINDINGS OF THE STUDY

 The ratio of overhead expenses is declining in 2020–21, coming in at 179.84, compared to

182.77 in 2019–20. However, it may be rising in the 2019–20 timeframe.
 The variance in overhead refers to the budgeted amount of spending for overhead
management for the year, and it may represent actual expenses for the management of
overhead between the years 2019 and 2020.
 The return on investment, or overhead return, is rising throughout the 2020–21-time frame
(12.4).
 During the 2020–21 year, the overhead expenses per employee decreased, with a ratio
analysis of 1.22.
 The variation in the cost reduction rate of overhead expenses by year is known as the
overhead cost reduction rate. Given that the 2020–21 period is different, the rate of cost
reduction would be that.
 The index of overhead expenses is declining throughout the 2020–21 period, with a ratio
analysis score of 86.76.
 According to ratio analysis, the return on assets for the 2020–21 period is declining, with a
value of 653.3.
 The employee of the company is not meeting their daily work targets and is not arriving at
work at regular times.
 According to the financial year statement, Prodapt IT solution's income is expected to
decrease throughout the 2019-20 term.
 In the 2019–20 financial year statement, Prodapt IT solution's net profit or net income will
decrease.
 The Prodapt IT solution's current asset will decrease throughout the 2019–20 financial year,
according to the financial year statement.
 Prodapt IT solution investment will rise over the 2019–20 fiscal year, according to the
financial year statement.

SUGGESTIONS AND RECOMMENDATIONS

 The company's net income would grow due to a decrease in indirect expenses, resulting in a
fall in the overhead expenses ratio. It will be handled with value in overhead management for
the upcoming year.
 Its variance in overhead will be reduced in the 2019–20 term due to extremely low expenses
in the actual budget when compared to the year's allocated budget. Due to the COVID-19
pandemic, budgetary overhead will create a 20 percent difference in this.
 The overhead return on investment is rising over the 2020–21 timeframe, with a 12.4
percentage increase from the previous year. This is due to a 20 percent increase in overhead
expenses and a 50 percent increase in the company's net profit or net income. In 2020–21, an
investor will oversee it.
 Because the company will be hiring 200 employees, the overhead expenses per employee
will decrease between 2020 and 1.22. Employee spending for staff welfare, pay, and benefits
will offset this. It would be an increase in the business's net income.
 The annual fluctuation in the overhead cost reduction rate is from the 2020–21 term to the
2019–21 period. This will result in a 0.08 reduction in expenses year 2019–20.
 Overhead expenses are expected to rise due to budgeting, as the previous year's assigned
calculated budget will result in a falling overhead expenses index between 2020 and 21
(86.76). This will lower the company's actual expenses through the overhead expenses index.
 During the 2020–21 timeframe, the company's capacity to make profit from its assets will be
reflected in the declining 653.3 return on assets due to a half-yearly increase in fixed assets.
 The HR department of the organization fails to oversee and maintain staff strictly, resulting
in incomplete assignments and missed deadlines. It will impact the company's clientele.
 The Prodapt IT solution's revenue is expected to decrease in the 2019–20 financial year
statement because to the COVID-19 pandemic, but it is expected to increase in the 2020–21
fiscal year.
 Because of the COVID-19 pandemic, Prodapt IT Solution's net profit or net income will
decrease in the 2019–20 financial year statement; nevertheless, the company will create a rise
in net profit or net income in the 2020–21 fiscal year.
 Due to the COVID-19 pandemic, Prodapt IT solution's current asset will decrease in the
2019–20 financial year statement; however, the following year, 2020–21, will see a rise in
the company's current asset.
 The financial year statement for Prodapt IT solution indicates that investment will increase in
2019–20 due to investor interest, which will lead to an increase in corporateinvestment in
2020–21.
 CONCLUSION

This study is an outcome of the topic called “A study on Overhead management of Prodapt
IT solution. The Overhead management is vital for financial success and competitiveness. It
will be identifying cost drivers, implement efficiency measures, and negotiate contracts to
manage overhead costs effectively.

Overhead management is paramount to achieving financial stability and sustainable growth.

This guide provided a comprehensive overview of overhead costs, strategies to reduce
expenses, and best practices to optimize financial performance. By implementing the
knowledge gained, your organization will be empowered to effectively manage overhead
expenses and achieve long-term success in an increasingly competitive business landscape.

The researcherexaminesa number of financial statistics, including the return on asset (ROA),
overhead expenses index, overhead variance, overhead costs per employee, overhead cost
reduction rate, and overhead expenses ratio. An increasing number of financial ratios are
found every year. However, a few of the financial ratios have dropped. Hence the
researcherconductor that the business is performing well in terms of overhead costs.
ANNEXURE
OVERHEAD EXPENSES OF PRODAPT IT SOLUTION

IN CR
S.NO PARTICULAR 2019-20 2020-21
1 OTHER INCOME 143.367 7.890912
2 FINANCE COST 0.149656 0.697644
3 SALARIES AND WAGES 323.155 376.1976
4 EMPLOYEES STOCK 0.228902 0.388144
5 STAFF WELFARE 19.12597 196.9745
6 POWER AND FUEL 2.703002 1.375031
7 RENT 13.04152 14.14618
8 REPAIRS AND BULIDING 0 4.082824
9 EMPLOYEE BENEFIT EXP 365.0777 423.4398
10 REPAIRS AND BULIDING 4.99347 0
11 REPAIRS AND MACHERINY 1.510547 1.148115
12 INSURANCE 0.771601 0.801067
13 SUBCRIPTIONS MEMBERSHIP FEES 0.815816 1.931043
14 TELEPHONES POSTAGES 3.640975 3.282019
15 TRAVELLING EXP 39.43889 10.81542
16 LEGAL PROFESSIONAL CHARGES 4.8475 5.538104
17 TRAINING RECRUITMENT EXP 4.78028 8.578265
18 DIRECTORS SITTING FEES 0 0
19 CURRENT TAX 29.34203 36.08139
20 BANK CHARGES 0.63196 0.833833
21 ADVERISTING PROMOTIONAL EXPES 3.754369 3.094829
22 COST TECHNICAL EXP 145.6781 147.5252
23 PROVISIONAL DEBT -0.46829 0.48
24 MISCELLANEONS EXP 0.477322 0.414277
25 OTHER EXP 232.5663 204.0935
26 Administrative EXP 7.653324 9.399888
27 CSR EXPENDITURE 1.220367 1.906688
TOTAL 1348.503 1461.116
S.NO PARTICULAR 2019-20 2020-21
1 REVENUE 737.7951 812.4453
2 NET PROFIT 145.4948 180.7987
3 ASSETS 16.02768 23.28519