Intex Technology
Intex Technology
Intex Technology
management by Intex. The present report is a part of the project that contains
the work done by me during the training period at Intex Technology.
Under the study main focus is to put light on the working of the company
related to cash management. In this report it has been studied that how
company manages its cash by managing its receivable and payables. In order
to manage its receivables company uses to give cash discount to its customers.
In order to maintain the record of its receivables company is in contract with
HDFC bank. Bank also provides factoring service to the company by charging
some amount to the company. In order to maintain records of its receivables
bank provides the facility of CMS(Cash Management System).
In order to reduce the risk arising from the receivables company is incurring
cost of collection from debts. Company is paying large amount of money in
order to maintain its cash. It has been observed through cash flow statement
that major flow of cash is from its operating activities and company is
investing its surplus cash for investment purpose which is beneficial for the
companys growth. Company cash requirement and surplus cash is manage by
the bank.
INTRODUCTION
position the brand in the right spirit at the international milieu, INTEX has
been making inroads in various countries with direct presence in India,
Australia, China, Hong Kong, UAE, South Africa and Nigeria and plans to
expand operations in Russia in coming years.
Objectives of Study
To Study Cash management of the company.
To study cash budgeting technique used by the company.
To study factors affecting cash budget of the company.
To study bank charges charged by the bank for cash management.
To study various services provided by bank to company for cash
management.
To analyse and give suggestions for better management of cash.
INTEX TECHNOLOGY
Profile
Established : 1996
Headquarters
: New Delhi
Products: Commenced business with just one item - Ethernet cards in 1996 Today more than 296 SKUs spread over 30 product groups
Certification
Intex Technologies (India) ltd., incepted in the year 1996 is a major player in
India in mobile handset, consumer durables and IT accessories. A pioneer in
technology, Intex Technologies has a PAN-India presence through its wide
network comprising 29 stock and sales offices and over 800 service touch
points. The company is known for its consistent policy of transparent, fair and
ethical trade practices.
Its a ISO 9001 : 2008 Certified Company
With years of innovation and invaluable asset of more than 2000 employees,
Intex Technologies has established itself as a trusted name in the industry
today. The companys flagship brand 'INTEX' covers 4 business segments
which are mobile handsets, consumer durables, IT accessories and retail. The
Brand exhibits an exhaustive portfolio of more than 15 product categories
ranging from mobile handsets, multimedia speakers, LED TVs, washing
machines to name a few.
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The company has state of the art Centre for Research and Development in
India and China which is well-equipped with modern equipments and is
headed by highly qualified and experienced team looking after product design
& development. These facilities ensure products are offered in line with latest
global standards.
Intex's manufacturing domain comprises factories in India and China
manufacturing diverse products.
Intex is an ISO 9001:2008 certified company. The companys operations are
managed on a world-class collaborative business solution SAP on a Virtual
Private network.
Moving at a CAGR of 41.02 % over the last 3 financial years, the company
has reached a turnover of more than Rs 20,000 million (2000 crore) in FY 1314. The company clocked a phenomenal growth of 100% in its overall
turnover in FY 13-14 over the previous year.
Sales are routed through a distribution network comprising 1100+ distributors
and 50,000+ dealers spread across the country. Products are also available at
more than 250 dedicated counters of reputed chains of hyper markets and
specialty stores across the country, on TV shopping channels and e-commerce
sites.
Intex has global presence and Intexs products are available in more than 70
countries worldwide.
7 Business Verticals divided into
5 product verticals
IT Accessories & Networking Solutions
Mobile
Consumer Durables
Security Surveillance
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Power Electronics
2 industry segment verticals
Retail
Enterprise Solutions Group
Diversifications
Intex Styles a furniture brand
IntexInfraprojects
Intex Developers
Mission
Focus on customer delight.
Quality people.
Goals
Company realize their vision by
Market leadership.
Ethical practices.
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Innovation
Constant innovation is one of the pillars of the companys success, the
business segments cover a portfolio of 35 Product Groups spread across more
than 350 products ranging from Desktops, Notebooks, TFT-LCD monitors,
DVD players, Home Theatre Systems, Subwoofers, Headphones, MP3
Players, Web Cameras, UPS and Computer Peripherals to name just a few. In
several product groups such as Speakers/Subwoofers, UPS, Keyboard, Mouse,
Add on cards, etc., the company enjoys leading market shares in many states
in India and in the global market. Intex Technologies, Dubai has forayed into
fast growing market of Tablet PC since 2011. Intex has already launched
Triple Simhandsets, apart from Dual Sim, Dual-memory options and built in
projector for UAE & GCC market. Intex mobiles cover one year warranty
which is extended to more than 350 service centers across India and to 15
other service centers internationally.
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Kerala
13
Back
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STRATEGIC ALLIANCES
INTEX's Alliances and Partnerships ensure their customers receive the best
the industry has to offer. INTEX's innovative products and services are
underpinned by technology and solutions provided through partnerships with
industry-leading organizations. Some of them are as follows:
Chipset companies
Mediatek
Qualcomm
Broadcomm
Spreadtrum
VAS
BBM
Saavn
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Sony Live
GetIt
Zappak
Gameloft
Hungama
Bigfilx
Disney
OLX
Opera
Qickr
Newshunt
Nazaraa
Lookeys
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Literature Review
CASH MANAGEMENT
Cash flow is the oxygen that brings your business to life. As surely as you
cannot livewithout air, a business will grind to a halt if starved for cash.
Cash Management is concerned with the management of collections and
disbursement of cash, determination of optimum level of cash and investment
of surplus cash into securities. Cash management includes management of
cash inflow, cash outflow, estimation of cash requirement, ascertaining cost of
managing cash, techniques of managing cash. Cash management also includes
management of cash as well as cash equitant i.e. Bank accounts etc. Cash
management is done because all the transactions in the business in done in
cash, sothere is need for estimation of cash in future for smooth running of the
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Objectives
To make payment according to the payment schedule.
To meet cash disbursement needs of the firm on a continuous & regular
basis.
To minimize funds in the form of cash balance which remains idle.
To prevent bankruptcy
Good relation with bank
Good relation with trade creditors & suppliers.
To lead strong credit rating
To meet unexpected cash expenditure
To maintain balance level
To identify surplus cash
To identifying the points of shortfalls & to plan & arrange adequate
cash
To improve the profitability of the firm
To keeps the bank overdraft limit under control
To strike a balance between liquidity & profitability
To make instant cash payments & avail of the facilities of cash
discounts.
To take advantage of speculative opportunities
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CASH BUDGET
Cash budget is extremely important, especially for small businesses, because
it allows a company to determine how much credit it can extend to customers
before it begins to have liquidity problems.
For individuals, creating a cash budget is a good method for determining
where their cash is regularly being spent. This awareness can be beneficial
because knowing the value of certain expenditures can yield opportunities for
additional savings by cutting unnecessary costs. For example, without setting
a cash budget, spending a dollar a day on a cup of coffee seems fairly
unimpressive. However, upon setting a cash budget to account for regular
annual cash expenditures, this seemingly small daily expenditure comes out to
an annual total of $365, which may be better spent on other things. If you
frequently visit specialty coffee shops, your annual expenditure will be
substantially more.
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem.
The research methodology included various methods and techniques for
conducting a research. Marketing Research is a systematic design, collection,
analysis, and reporting of data and finding relevant solution to a specific
marketing situation or problem. Sciences define research as the
manipulation of things, concepts or symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in practice of an art. Research is thus, an original
contribution to the existing stock of knowledge marketing for its
advancement, the purpose of research is to discover answers to the questions
through the application of scientific procedure. My research project has a
specified framework for collecting the data in an effective manner. Such
framework is called Research Design. The research process which was
followed by me consisted following steps.
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Research instrument
A questionnaire was constructed for my queries. A Questionnaire consisting of
a set of questions was presented to respondents for their answers.
2. Contact Methods
Once the person to be interviewed is determined, the question is how the
subject should be contracted i.e. by telephone, mail or personal interview.
Here in this research, I have contacted the respondents through personal
interviews.
a.) Collection of Primary Data: Primary Data is the data collected from
the original source. In my survey and study, there was optimum availability of
primary data because every aspect was witnesses carefully at each point.
Questionnaire and personal interviews were the main instruments, which were
used for collecting primary data.
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b.) Collection of Secondary Data: Secondary Data is the one which has
already been collected by someone else and some other person is using that
information. The source of secondary data was, some related books and
websites related to the company. The competent staff of the company helped
me a lot in providing information about the company.
c.) Analyze the Information: The next step is to extract the pertinent
findings from the collected data. I have tabulated the collected data and
developed frequency distributions. Thus the whole data was grouped aspect
wise and was presented in tabular form. Thus, frequencies, comparison and
percentages were prepared to render impact of the study.
Presentation of findings:
This is the last and important step in the research process. The findings are
presented in the form of graphs, pie charts, conclusions, suggestions and
recommendations after data analysis.
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2013
2231.89
2014
2333.82
66.07
86.74
33.78
26.9
11 days
14 days
For early payment i.e. advance payment by the customer company credits
customer account withInterest for the particular period at 16% interest rate
Product
no. of days
Channel Finance
45 days
20 days
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Cash Discount
Trade Discount
Cash Discount:
An incentive that a seller offers to a buyer in return for paying a bill owed
before the scheduled
due date. The seller will usually reduce the amount owed by the buyer by a
small percentage or a
set dollar amount. If used properly, cash discounts improve the days-salesoutstanding aspect of a business's cash conversion cycle.
Company is providing different rates of cash discount for different products.
By providing cash
discount company is inviting early cash payment by its customers. Following
are the rates of discount which company is providing for different products.
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cheque. In case of non payment a notice is sent to the party for non payment
with cost the company Rs. 550 for every notice. In case of no response from
the party a complaint is filed against the party with cost Rs. 4400 and other
expenses incurred are Rs. 1000. In case the party is making payment number
of persons is sent to the party for collection of payment whose cost depends
upon number of person sent, cost per person and number of days person is
sent.
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SWOT Analysis
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STRENGTH
Low cost
Simplicity
Flexibility
Collaborative
Quickness
Since its qualitative, it can be used as a discussion tool
A good first step before a more in-depth analysis or a good summary of
detailed findings
Takes into consideration of external business environment as well as
internal capabilities
WEEKNESS
It may tend to persuade companies to compile lists rather than think
about what is actually important in achieving objectives
No suggestions for solving disagreements
Can become too focused on the short term
No obligation to verify statements or aspects based on the data or the
analysis
It also presents the resulting lists uncritically and without clear
prioritization
THREAT
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the problem before defining it. Prof. W.A. Neiswanger correctly states that
statement of the objective is of basic importance because it determines the
data which are to be collected, the characteristics of data which are relevant,
relation which are to be explored, the choice of technique to be used in the
explorations and the form of the final report. Once the problem is selected, a
brief summary of it should be written down. It is compulsory requirement of a
research worker writing a thesis for Ph.D. degree to write a synopsis of the
topic and submit it to the Research Board for obtaining the latters approval.
4. Specification of the Information Required:
After extensive literature survey, the researcher should give attention to the
specification of the require information i.e., he/she should specifically
mention the information he/she is going to collect in order to study the
problem under consideration and also the sources of collecting this
information. Data is generally classified either as primary or secondary.
Primary data refers to the information which has originated directly as a result
of the particular problem under investigation. Care must be taken while using
secondary data that the must be relevant, can be adjusted to the problem, and
is reliable. The sources of secondary data are many- there is a wealth of
published information available from Government departments, trade
associations, banks professional bodies, research organizations, the press and
various other agencies. The unpublished information with various bodies and
organizations along with the researcher himself can as well be used.
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ii.
iii.
iv.
6. Sample design:
All the items under consideration in any field of inquiry constitute Universe
or Population. A complete enumeration of all the items in the population is
known as a census enquiry. It can be presumed that in such an inquiry when
all the items are covered, no element of chance is left and highest accuracy is
obtained. But in practice this may not be true. Even the element of bias in
such an inquiry will get larger and larger as the number of observation
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a) Observational Method:
The observation method is most commonly used specially in studies relating
to consumer behavior. Under this method the information is sought by way of
investigators own observation without asking from the respondents. For
instance, instead of asking the brand of wrist watch used by the respondents,
an investigator may himself look at the watch. The main advantage of this
method is that subjective bias is eliminated if observation is done accurately.
Secondly, the information obtained under this method relates to what is
currently happening, it is not complicated by either the past behavior or future
intentions or attitudes. But the main drawbacks of this method are: I) it is an
expensive method and II) the information provided by this method is very
limited.
b) Mailing of Questionnaires:
The method of collecting data by mailing the questionnaires to the
respondents with a request to return after completing it is most extensively
employed in various economic and business surveys. The main claimed in
favor of this method are as following:
1. Low cost even when the universe is large and spread widely
geographically;
2. Free from the bias of the interviewer;
3. Respondents have more time to give well thought answers;
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be made for proper selection and training of such interviewers. The training
may be given with the help of instruction manuals which explain clearly the
job of the interviewers at each step. Occasional field checks should be made to
ensure that the interviewers are doing their assigned job sincerely and
efficiently. A careful watch should as well be kept for unanticipated factors of
importance in order to keep the survey as much realistic as possible. This in
other means that steps should be taken to ensure that the survey is under
statistical control so that the collected information is in accordance with the
pre-defined standard of accuracy. If some of the respondents do not cooperate,
a suitable machinery of dealing with respondents should be set up. One
method of dealing with the non-respond problem is to make a list of the nonrespondents and take a small sub-sample of them and then with the help of
experts vigorous efforts can be made for securing response.
9. Analysis of Data:
After the data have been collected by any one or more of method outlined
above, the same should be properly edited and then organized in the form of
tables, charts or graphs. The unwieldy data should necessarily be condensed
into a few manageable tables for further analysis. This would help the
researcher in finding out the salient features of data. As a result, comparison is
also facilitated. When the data have been tabulated the researcher must stray
the work of analyzing them. The mechanical devices can be made use of at
this juncture. A great deal of survey work in modern time, especially in large
inquiries, is tabulated by computers. Computers not only save time but also
make it possible to study large number of variables affecting problem
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In its preliminary pages the report should carry a title date followed by
acknowledgements (in the form of Preface) and forward. Then there should be
table of contents so that the decision maker (or anybody interested in reading
the report) can locate the required information in the report without difficulty.
Followed by this there should be list of tables and list of groups and diagrams
(if any) given in the report.
Then comes the main text of report. The main text of the report should have
the following sections:
a. Introduction:
The purpose of introduction is to introduce the research project to the readers.
It should contain a clear statement of the objective of the research and an
explanation of the methodology adopted in conducting the survey. The scope
of the study should be clearly stated and the boundary lines demarcated. The
various limitations may as well be narrated under which the research project
was completed.
b. Summary of findings:
After introduction there would appear a statement of findings and
recommendations in non-technical language. If the findings are extensive,
they should be summarized.
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c. Main report:
The main body of the report should be presented in logical sequence and
broken down into readily identifiable sections.
d. Conclusion and implications:
Towards the end of the main text the researcher should again put down the
results of his research clearly and precisely. In fact, it is the final summing up.
At the end of the report, appendices should be enlisted in respect of all
technical data such as questionnaire, sample information, and the like ones.
Bibliography should as well be given in the end. Index should also be
invariably given specially in a published research or thesis.
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c. End matter.
In its preliminary pages the report carries the title and date followed by
acknowledgement. Then there is a table of contents, so that the decision maker
may locate the required information in the report without difficulty.
Then comes the main text of the report. It has the following main sections:
i. Introduction:
It includes the purpose, scope and clear statement of research problem.
ii. Summary and Findings:
After introductory part there appears a statement of findings and
recommendations in non-technical language.
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SOURCES OF DATA
The task of data collection begins after a research problem has been identified
and research design/plan chalked out while deciding about the method of data
collection to be used for the study the researcher should keep in mind two
types of data viz., primary and secondary. The primary data are those which
are collected afresh and for the first time, and thus happen to be original in
nature. The secondary data on the other hand are those which have already
been collected by someone else and which have already been passed through
the statistical process. The researcher would have to decide which sort of data
he/she would be using for his study and accordingly he will have to select one
or other method of data collection.
The sources of information or data are generally classified as- Primary and
Secondary.
Different scholars have classified the sources of information differently. Of
the some more important views are as follows:
1. According to PV Young, the sources of information can be classified
into documentary sources and field sources. While the first includes
books, manuscripts, diaries and letters, the second includes the
information given by individuals.
2. According to W.A. Bagley, the sources of information may be
PRIMARY DATA
Primary data are of original nature because these data are the data which are
collected by the researcher for the first time to suit his specific need of the
research. Primary data can be collected either through observation or through
direct communication with respondents whether by mail, telephone or
personal interviews. The main features along with points of merits and
demerits of each of the important methods used in collecting the data for
present study are as follows
1. Questionnaire Method:
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Low cost even when the universe is large and spread widely
geographically.
ii.
iii.
iv.
v.
Large samples can be made use of and thus the results be made
more dependable and reliable.
ii.
Interviewer by his own skill can overcome the resistance, if any, of the
respondents.
iii.
iv.
v.
vi.
vii.
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In the present study the respondents i.e., the employees of the organization
have been interviewed in order to get the information from them regarding
their personal status.
SECONDARY DATA
Secondary data are the data which have already been used by someone else,
whereas the primary data are first time collected by the research to target his
specific need of the research. As secondary data have already been gathered
by some one else. So these data are not of an original nature. But these data
are also of great importance for a research, because they lay down a
background and a basis for working out and obtaining the primary information
for the study.
SOURCES OF SECONDARY DATA:
Secondary data may be gathered from various sources are divided in to two
major categories:
i.
Internal Sources
ii.
External Sources
i.
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ii.
In the present study the internal as well as external sources of secondary data
are deemed to be relevant and economic, thus the study is done on the bases of
company records, website and data collected through various government
offices.
SAMPLING PROCEDURE
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Sampling units
The area of Rudrapur and gadarpur and surroundings has been determined as
the sampling unit of the study.
Size of sample
The sample size for the study is determined as 12.We have to do our research
in the area of gadarpur and rudrapur . we have to collect the data by different
organizations like banks, school , computers centers etc. By the interaction
with different organizations people we have to create a lot of data that are
useful for the reseach of new technologies because we have to find out
customer feedback and their expectations from company so that company can
fulfill their expectations and satisfied them.
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DATA ANALYSIS
Q.
30%
70%
Yes
No
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Q.
15%
20%
65%
Computer
Mobile Others
70
Q.
35%
40%
10%
15%
Intex
HCL
IBM
OTHERS
71
Q.
72
Q.
73
Q.
74
75
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Recommendations/ Suggestions
1. Company can review existing service providers for cash management and
other
service providers, making initial presentations and discussions with banks and
providers.
Companies can shortlist potential providers for further in-depth discussions
and
presentations. It helps in reducing carrying cost of cash.
2. Company can reduce its inventory to maximum extend .So that there should
be less
blockage of funds in Inventory.
3. In order to reduce average collection period company can liberalize its cash
discount
policy. This will initiate the customers to make early payment and help in
better flow of
funds.
4. Company can invest idle funds wisely may help you to generate income
from your
working capital, increasing your yields while maintaining liquidity. There are
a wide
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BIBLIOGRAPHY
BOOKS
Shashi K Gupta, R. k Sharma. (2010), Financial Management, 6th Edition.
New Delhi: Kalyani
Publisher. PP 23.1-23.20
William J Stevenson. (2010), Operation Management, 9th Edition. New Delhi:
Tata McGraw-Hill
Publishing Co. PP 446-447.
Journals
www.intextechnology.com
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Questionnaire
Q.
Q.
No
Q.
Others
HCL
IBM
OTHERS
Others
Quality
Features
Q.
Mobile
Q.
No
No
81
Q.
Q.
No
Before 24 Hours
4-8 Hours
Above 24 Hours
82