Summer Training Report On: Working Capital & Processes

Working Capital & Processes
SUMMER TRAINING REPORT ON

For
JCB India Pvt Ltd
By
Kartik Wadhwa
200
In Partial Fulfilment for the award of the degree
Post Graduate Diploma in Management

Batch-2018-2020
Specialization: Finance and Marketing
1
New Delhi Institute of Management

50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail :placement@ndimdelhi.org Website : www.ndimdelhi.org
SUMMER TRAINING REPORT ON

For
JCB India Pvt Ltd
Under the supervision
Of
Mr Milind Aggarwal (DGM Finance)
Submitted By- Submitted to-
Kartik Wadhwa Dr Gauri Modwel

18200
2
Certificate from the Company
3
Acknowledgement
I would like to thank JCB India for giving an opportunity to practical exposure
of corporate and would like to also express my sincere thanks to Mr. Rohit
Srivastava (AVP Finance), Mr Milind Aggrawal (DGM Finance) who not only
helped me in the project but also taught me about various traits of corporate
industry. I am thankful to Dr Gauri Modwel for guiding me throughout the
duration of internship and helping me make this report.
The internship opportunity I had with JCB India was a great chance for learning
and professional development. I consider myself a very lucky individual as I
was provided with an opportunity to be a part of it. I am also grateful for having
a chance to meet so many people and professionals who led me to this
internship period.
It has been a remarkable experience of satisfaction and pleasure for me to work

out my internship under the guidance of my faculty mentor Dr Gauri Modwel. I
am really thankful for her valuable guidance, encouragement, constructive
feedback and cooperation during my internship.
4
DECLARATION
I Kartik Wadhwa student of New Delhi Institute of Management (2018-20)

Batch declare that every part of the Project Report Working Capital & Processes
submitted by me is original.
I was in regular contact with my faculty guide and contacted several times for
discussing the project.
Date of project submission:
Signature of the Student
5
CERTIFICATE OF AUTHENTICITY
Faculty Mentor’s Comments:

________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________
Signature of Faculty guide
Dr. Gauri Modwel
6
External Examiner’s Feedback
Date of project submission:_____________
Signature of the Student
External Examiner’s Comments:

________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
_______________________________________________________________
Signature of External Examiner

Name
Organisation
7
Table of Contents
S.NO NAME PAGE

No
I Executive Summary i
1. Introduction to Industry 1-14
 About the Industry
 Overview of the company
 Major Players in the space
 Company Background
 Organisational Structure
 Product/Services
 Geographical Spread
 Customer Segment
 Turn-over
 Market Share
2. Objectives of Training 14
3. Key Responsiblities Assigned 15
4. Weekwise Description of Work 16-38
5. Findings 39
6. Conclusion 41
7. Limitation 42
8. Recommendations 43
9. Major Learnings 44-46
10. References 47
III Annexures iii
Cash forecast report format 1

Mid-evaluation form 2
Final evaluation form 3
Weekly Report Format 4
8
Executive Summary
J.C. Bamford Excavators Limited, universally known as JCB, is a

British multinational corporation, with headquarters in Rocester, Staffordshire,
manufacturing equipment for construction, agriculture, waste
handling and demolition. It produces over 300 types of machines, including
diggers (backhoes), excavators, tractors and diesel engines. It has 22 factories
across Asia, Europe, North America and South America; its products are sold in
over 150 countries.
The Objectivity under study was to understand the treasury functions in the
organisation that included understanding about cash forecasting the process
assumptions under study the fundamentals that were required. The objective
under purview also was to study about various risks that different departments
face in the organisation and to see to the different mitigation strategies that are
required to curtail the respective risks and to work on establishing a risk matrix
and data base for various risks so that it can used for future reference and
management can take decisions in adverse condition swiftly.
The Limitations of the project quite from my observations were the time I got
the experience the on the job training at JCB.
The organisation believes in getting safe and risk free returns from its excess
working capital which has its own downsides.
In order to achieve maximum utilization of funds the company should look into
diversifying its investment pooling strategies.
9
Introduction
Overview of the Industry

Scope and Impact of the Industry on Indian Economy
The Construction equipment’s industry is a fast growing sector of India and has
a expected value of USD 5 Billion is the expected value of the construction
equipment industry in India by 2020 owing to increased unit sales and revenue.
Rising infrastructure investments mean increased investment in the construction
equipment manufacturing and its subsidiary industries; more than 60% of the
total investment in infrastructure development will be focused on construction
equipment.
 7-8% of the national GDP is the contribution of the construction

equipment sector on a whole including its sister services.
 The material handling industry is completely de-licensed under
the Make In India campaign paving the way for 100% FDI
investment.
 USD 24.28 Billion is the cumulative FDI inflow in the Earth
moving equipment sector from FY2000-2016.
 Investment requirement of 1 Trillion USD in the infrastructure
sector means heavy demand for earth moving equipments along
with other construction equipment’s.
 Revenue from construction equipment is expected to reach USD 5
Billion by 2020 growing at a CAGR 2.34% FY 2007-20.
 The equipment rental business in India is still in its nascent stage
and has huge potential to grow similar to the after sales revenue
component in the construction equipment industry on a whole.
 Sale of construction equipment is expected to go up to 96,730 by
FY19 due to the heavy investment and demand in the
infrastructure sector.
 CAGR 6.18% is the estimated growth rate of sales of construction
equipments.
10
 62.1% is the share of the earth moving equipments in the

construction equipment industry as a whole.
 Backhoe loader and crawlers are expected to amount to 70% of
the total industry sales and revenue.
 Crawlers are the fastest growing segment wishing the earth
moving equipment sector due to increased demand of mid sized
machines.
 The share of crawler excavators is expected to go up to 35% from
the previous 23% in 2015
 Demand for larger excavators is expected to increase in the tie to
come, particularly in the mining industry.
 Growing demand for rental equipments has led to an increased
demand for tie ups and sales of the equipment on a general note.
 After sales support and end to end solutions as an industry is
expected to grow rapidly in the time to come due to the increased
demand for niche products.
 Increased mining activity will mean greater demand for
equipments in the coming years.
Reduced export duty means increased production and export of low grade iron
ore, resulting in a higher demand for equipment.
Major Players in the space/ Competitors
 Caterpillar (CAT)
 Tata Hitachi
 Volvo construction equipment
 Hyundai construction equipment
 Case
 Komatsu Limited
 John Deere
 Wacker Neuson
 Monitou
 Escorts
 Ace
 Bobcat
 BEML
11
Overview of the company.
JCB India Limited is a leading manufacturer of earthmoving and construction

equipment in India. The company started as a joint venture in 1979 and is now a
fully owned subsidiary of J.C Bamford Excavators, United Kingdom. With five
state-of-the-art factories in India, it today manufactures a wide range of world-
class equipment, not only for India, but also for Global markets.
It introduced Backhoe Loaders in India close to four decades ago and has since
expandedits product range to over 50 different models in eight
productcategories. The Ballabgarh factory near New Delhi, which is the world’s
largest factory for Backhoe Loaders, is also the Headquarters for JCB India.
This facility, apart from Backhoe Loaders, also manufactures Skid Steer
Loaders, Telehandlers, Diesel Generators and Diesel Engines.
The company expanded its operations in 2006 and 2007 by setting up two
factories at Pune for its Heavyline business. These factories manufacture
Tracked Excavators, Wheeled Loaders, Compaction equipment and Fabrications
for the Group. With over 400 engineers, Pune also has JCB’s largest Design
Center outside of the United Kingdom.
A further investment in India was made at Jaipur in 2014 with the inauguration
of a 114-acre, eco-friendly, green manufacturing facility. This facility today
manufactures Mini Excavators, Skid Steers and Fabrications.
With all plants operating on the principle of One Global Quality, JCB India is a
manufacturing hub for Global markets. Products made in these factories have
been exported to more than 85 countries around the world.
12
Over the years JCB has invested Rs. 2,000 crores in India and today employs
5,000 people in its Indian operations. It has a network of more than 60 dealers
and 650 outlets spread throughout India, who further employ 6,000
professionally trained personnel. These far-reaching outlets provide the vital
product support to customers for their equipment. Five strategically set up
warehouses at Pune, Chennai, Faridabad, Guwahati and Kolkata support these
dealerships and outlets for parts supplies.It has also built and supported an
indiginised supply chain for the manufacturingof its products. Over 380 world-
class Indian suppliers are aligned to JCB’sGroup objectives and have grown
along with JCB through various supplier development initiatives.
JCB is committed to CSR through the Lady Bamford Charitable Trust.

Registered in the year 2000, the Trust has followed an organic and consistent
growth with a focus on disadvantaged communities around JCB factories in
India. Today its outreach extends to 56 Government schools and nine vocational
training centres through which it reaches out to about 12,500 students and
trainees. The Trust is active in communities around its three factories in Delhi-
NCR, Pune, and Jaipur.
JCB has always remained committed to India. It has launched innovative India
centric products and has expanded by way of new factories with Customer
Focus and One Global Quality being at the core of its operations.
Close Competitors of JCB include-
 John Derre
 CAT
13
Hierarchy/ Organisational Structure
Promoters/ Senior Executives like chairman & managing Director, CEO, etc.
Anthony Bamford Chairman

Vipin Sondhi MD
Deepak Deodhar Executive vice president of finance
&information Technology
Vikram Wagh Executive Vice President of sales
and Marketing
Subir Choudary Business Head of Ballabgarh Plant
Rajesh K Khatri Plant Head – Pune
Vasu Saksena Business Head of Heavy Products
for Pune units
14
Managing Director
Executive Vice President
Associative Vice President
Regional General Manager
Regional Product Manager
Area Manager
Products/ Services
15
16
17
Geographical Spread
 The JCB India have, 60 plus dealer and 700+ outlets across India.
 The company have 5 factories in the country located at Delhi, Pune
and Jaipur. The next plant is in under construction at Vadodara,
Gujarat.
18
Customer Segment
 The customer segment of the JCB includes people and businesses

who want product and services for Crusher, solid waste
management, builder material supplier, government, construction,
road, agriculture, tunnelling, cement, ready-mate concrete, paper
mills and coal
 The cement, construction, coal and building material supplier are the
major segment of the customers.
Customer segment
Coal Crusher
11% 9% Solid waste
Management
Paper Mills 6%
7%
Ready Mate Builder Material

concrete supplier
7% 11%
Government
5%
Cement
16%
Construction
Tunneling 14%
5% Agriculture Road
3% 6%
Crusher Solid waste Management Builder Material supplier
Government Construction Road
Agriculture Tunneling Cement
Ready Mate concrete Paper Mills Coal
19
Turn Over
 Turn over (FY 2018) - Rs.9,38,715.54 (In Lakhs).
 Other Income – Rs.12,598.12
Market share
The JCB India is the market leader in the construction equipment sector in
India with over 50% market share.
MARKET SHARE
13%
8%
10% 54%
15%
JCB Tata Hitachi case CAT Others
In Backhoe category, It has more than 80% market share.
BACKHOE
3% 4%
5%
8%
80%
JCB CASE CAT 20 HITACHI

TATA OTHERS
Positioning of your company in the industry space

 Providing the best equipments in the industry through focus on both
process innovations as well as product innovations based on the
customers’ needs.
Recent Mergers and Acquisitions

Arvind Ltd. and JCB India Ltd. announced a partnership to introduce
protective, smart, comfortable, and stylish ready-to-wear Industrial
Uniforms.
This partnership is the first of its kind to offer co-branded protective wear
and industrial uniforms for India’s workforce.
Future Plan of Expansion

- The company is to invest Rs.650cr in a new plant in India. The new
factory will be located in Vadodara, Gujarat.
- This will be the sixth factory of the company in India.
- The size of the plant is 44 acres.
- It will house the most modern laser cutting, welding and machining
technology.
21
New Initiatives taken towards better customer satisfaction

The company continuously look at the new and innovative ways to help
customer to get most out of their machines. The latest from the innovation folio
is an advanced telematics system called ‘LIVELINK’. This built in system
ensures that you are connected with your JCB machines at all times, even if you
are miles away from where your machine is working.
22
It is based on Service-Operation-Security concept which enables customers to

monitor and manage the machine remotely for maximum performance.
The impact of using the Livelink- advanced telematics system

When a customer purchases a new machine, we register the customer mobile
number and email address as a point of communication. Once the machine is
installed, it’s live.
Customer starts receiving machine status alerts on their mobile Apps, email and
it help customers to get benefits in their business in following ways-
- Increase Income
- Enhances security
- Improves productivity
- Reduces machine running costs
- Enhances maintenance& Support
23
Strategy adopted by the company for their business success in the domain they
are working
1. Geographical – Jcb has developed the most comprehensive dealer and

service network as compared to its competitors. It has 60+ dealers and
700+ outlets across the country. This helps the company to bring their
product closer to the customer and provide easy after-sales support.
2. Re- manufacturing: Service exchange- JCB has rolled out a scheme by

which the customers can bring an old machine(not externally
damaged) to the service centre and have it manufactured to the latest
specifications. JCB claims that all the major components including the
engine, is intelligently designed so that they can be remanufactured,
providing multiple lifecycles. This process costs the customer 50%
less than new parts, and comes with a warranty of 12 months on the
parts fitted by the dealer.
3. Operator training – One of the factor affecting the industry has been
the lack of skilled operators who are well versed with the various
operational techniques of the model. JCB conducts regular training
programs for the operator.
Besides imparting a working knowledge of the machine
operations, the training program also help in promoting proper and
safe handling techniques, their by improving the life and performance
of the machine.
4. Demo – This is the one of the most important strategy of JCB India.
They give demo of each machine to the customer. It helps customer to
understand the machine capabilities and performance better.
5. Buyback policies – Every product of JCB India comes with a buyback

policy. Customers can easily sell their product after using it for a
particular period of time.
24
6. Dealer Incentives – It has one of the best dealers network in the

country due to the high incentives.
25
Objectives
Broadly Speaking about the internship, it was in respect to understanding

the processes MIS reports and overall treasury and payment mechanism at
JCB India-
1. To Understand Cash forecasting. Compile Financial Information from

around the company to create on-going cash forecast.
2. To Understand working capital monitoring. Working Capital forms a very

integral part of the Organisation Review the corporate policies related
to working capital, and model their impact on cash flows.
3. To understand basics of Risk management. Use various hedging and

netting strategies to reduce risk related to changes in asset values, interest
rates, and foreign currency holdings.
26
Key Responsibilities Assigned (KRAs)
As a Finace Intern with JCB India Pvt. Ltd the major portion of my tenure was
to do with-
1. Understanding the basic functions of the treasury department, its

responsibilities
2. Preparation and Understanding of MIS Reports
3. Preparation and Understanding of 13 week weekly cash report prepared in
the organisation every Monday to understand the scope of payments
coming in forth the week from previous week’s analysed report and
taking margin for various payments in the report, and checking for the
accuracy of the report, if any deviations found then to check to what
extend the variance is and how to improve it to further occurrence of
reports (please refer Annexure-I).
4. Minor project was allotted was to do a company analysis for
benchmarking and further processing to improve the design centre of JCB
India with industry standards.
5. Another small project assigned for a SEBI statutory requirement was
allotted Form 49 cross where the companies have to do risk assessment
under various heads for their business.
6. And a Major Portion was around preparing Standard Operating Procedure
on SAP accounting software working with different T-codes of SAP
through Treasury and Account payable entries throughout.
7. Learned about IndAs-7 To understand the reporting obligations in respect
to Cash flows.
8. Understood the basics of working capital and it’s components.
27
Approaches (Methods) of estimating Working Capital:

- Conventional Method: Matching of Cash Inflows & Outflows.
This method ignores Time Value of Money
- Operating Cycle Method: Debtors + Stock (RM/WIP/FG) - Creditors. This
method takes into Account length of Time which is required to
convert cash into resources, resources to final product, final product to
Debtors and Debtors to Cash again.
- Cash Cost Technique: Working Capital forecast is done on Cost Basis (i.e.
Taking P&L items into account)
- Balance Sheet Method: Working Capital forecast is done on various
Assets & Liabilities (i.e. taking B/S items into account).
Objectives of Working Capital Management:
- Deciding Optimum Level of Investment in various WC Assets
- Decide Optimal Mix of Short Term and Long Term Capital
- Decide appropriate means of Short Term Financing
Week Wise Description of Activities
Week-1
 Work Assigned
1. Formalities
2. Interactive session
3. Basic Processes
4. De-briefing
 Work Executed
Understanding the basic treasury guidelines according to which all the
activities are conducted of investing and cash management and related
tasks. The Guidelines were issued by JCB UK which wholly manages JCB
India and JCB India is registered Subsidiary of JCB UK.
28
The basic working of treasury department is about fund allocation and time
management as to when and where the funds are required and maximum
utilization of the funds after meeting all the obligations of statutory
payment.
Handling 10 bank accounts of JCB spread across banks like-
1. Standard Chartered
2. SBI
3. HSBC
4. Barclays
Working with the Treasury Department as capacity of a finance intern

they gave a quick overview of how things are done here giving me the
protocol of how things are supposed to work here, Matters under the
Per-view were to study the past trend of working capital of JCB and
analyzing them to predict the future requirements of the Organization
studying different variables like payment structures that are under
different heads and sub-heads like fixed payments of salaries payroll
employees flexible bills like electricity charges and fixed payments
like statutory payments of customs and GST.
Learned about how they deal with their clients regarding payment
negotiations, how to curtail their risk of bad-debts and hedge the risk
completely.
They use 2 basic fundamental tools of banking, fundamental yet very
effective
1. Bank Guarantees
2. Letter of Credit
1.Bank Guarantee
A bank guarantee is a written instrument guaranteeing by bank to a party (seller
/ creditor / beneficiary) on behalf of his customer (buyer / debtor / principal), to
effect payment on default of obligation against submittal of written demand or
other documents specified in the guarantee.
29
Thus, if the customer defaults on the payment to other party or refuses to pay,
the Bank will cover the loss at its own account.
There are risks of failure or refusal of one of the parties to fulfill its obligations
to other party during the partnership at local and international level. The bank
guarantee is widely used all over the world as a reliable protection of other party
from financial losses.
Types of Bank Guarantee
There are various types of Bank Guarantees as follows and each is used for a
specific type of transactions:
 Performance Guarantee
 Bid Bond Guarantee
 Financial Guarantee
 Advance Payment Guarantee
 Foreign Bank Guarantee
 Deferred Payment Guarantee
Bank Guarantees used by JCB India Ltd.
1. Performance Bank Guarantee

2. Bid-Bond Bank Guarantee
Performance Guarantee
Performance guarantee is used as collateral in transactions involving a buyer
and seller. A performance guarantee is typically invoked if the buyer incurs cost
and the seller does not deliver goods or services as promised in the contract. To
invoke a performance guarantee, the beneficiary is generally required to declare
in writing that the seller did not fulfill his or her contractual obligations properly
or on time.
30
Bid Bond Guarantee
Bid bond guarantees are typically used in tenders to ensure that the winning
bidder undertakes the contract as per the terms of their winning bid. In case a
winning bidder does not perform the tender requirements as stipulated, then the
tender issuer can invoke the bank guarantee and fully or partially forfeiture the
amount. Therefore, bid bonds are used to ensure that the winning bidder
performs as per the tender terms after winning the tender.
2. Letter of Credit.
A letter of credit (LC), also known as a documentary credit or bankers

commercial credit, or letter of undertaking ( LoU), is a payment mechanism
used in international trade to provide an economic guarantee from a
creditworthy bank to an exporter of goods. Letters of credit are used extensively
in the financing of international trade, where the reliability of contracting parties
cannot be readily and easily determined. Its economic effect is to introduce a
bank as an underwriter where it assumes the credit risk of the buyer paying the
seller for goods.
 Week-2
1. Work Assigned
2. Understanding Basics of SAP
3. Punching entries on SAP
4. Ind As 7
31
 Work Executed
SAP: Working on SAP, introduces a number of benefits, like:
1. Features
2. Integration
3. Efficiency
4. Cost reduction
5. Less personnel
6. Accuracy
SAP Manual Bank Reconciliation entry-:
4 types of accounts
1. Main accounts- account that is reconciled and posting is done
2. Cheque issue account
3. Others-Advice Charges, Bank Charges
4. Incoming/Deposits
SM67- Bank Reconciliation Codes
Standard Operating Procedure
Transaction posting in FB-50 General Ledger Account S Enter Transaction
Enter the Following
1. Enter the Document date
2. Enter the Company code
Enter G/L Account for the Debit Entry which is to be posted to the Cost Centre
3. Enter Debit Amount
4. Enter the Cost Center in which the Amount is to be posted
5. Enter G/L Account for Credit Entry
6. Enter Credit Amount
Save the entry and check the status of Document Number
32
Approval Process of Stale Dated Cheques
Process Followed by JCB India Limited

1. Cheques older than 3 months and not yet presented for payment are
transferred to suspense account namely “Stale Cheques”.
2. On receipt of original instrument or written confirmation from
beneficiary, the amount then credited back to vendor account and
another payment subsequently reissued to beneficiary.
3. Any instrument stands uncleared for than 3 years is recognized as
Miscellaneous Income.
Requirements of Current Process
1. Server as a tracker to follow up/investigation with vendor/

beneficiary to avoid penalties or interest.
2. Detailed list of cheque not presented to Bank available within the
system.
3. Controls over reissuance of cheques only on receipt of original
instrument or written letter confirmation from beneficiary as to
non-receipt of credit.
4. The purpose is to address stale-dated cheque and ensure that they
are addressed on a consistent, accurate and timely basis
5. According to Indian bank regulations, a cheque could be only
cleared within 90 days of issuance date. Hence, cheque become
stale dated after 3 months.
Proposed Changes in the System for better audit compliance

1. To allow JCB India Limited to continue with existing
process and route any reissuance of cheque through State
Cheque Account.
2. Reporting manager will duly approve any transfer to Stale
Cheque.
3. Monthly List of unlearned cheques will be circulated to all
concerned person.
33
The Billing System of Products ideally works through JCB India HQ billing is
from 3 branches of different products-
S.NO BRANCH PRODUCT

1. BALLABHGARH BACKHOE
2. PUNE HEAVY LINE

3. JAIPUR BACKHOE, SSL,
LOADALL
JCB INDIA HQ
Week -3
 Work Assigned
1. Understanding Basics of Cash Flow Forecasting
2. Process and Assumptions
3. 13 Weekly cash reports
 Work Executed
Rolling forecasts work best when key cash flow drivers are modeled explicitly
and directly drive forecast cash flow inputs. We’ll look at the structure of a
robust and flexible cash flow forecast model for a retail store business in the
following sections.
34
Inputs and Assumptions

There are a few important points to creating a good input section for a cash flow
forecast model:
1. Key cash flow drivers should be modeled explicitly.

2. Inputs should only need to be input once.
3. Inputs should be organized logically.
Processing
The processing section of a cash flow forecast model is located on the right-
hand side of the historical results. All cells in this section should be in
formulas.
1. Model calculations and processing should be transparent and easy-to-follow.

Use step-by-step calculations that are short in length. If the formulas are
becoming too long, it is always a good practice to break them down into simple
steps to allow efficient auditing and updates.
2. Putting complicated calculations and processing on a separate worksheet.

Keep only the final figures on the output worksheets, and separate long and
complicated formulas and calculations on another section of the model or
worksheet.
3. Document how and why complicated calculations are structured.

This allows easy usability and audit ability and brings confidence to the general
process. All formulas should be transparent, clear and well-documented so
people can easily understand how the model works.
Outputs
The output section contains all important figures we would like to get out of a
cash flow forecast model.
35
1. Models outputs should be easy to find and understand.

2. Model outputs should be grouped logically in one area. Outputs are typically
placed at the bottom of the cash flow model and grouped together using the
Grouping function in Excel.
3. Model outputs should be formula driven with no hard-coding.
4. Outputs should provide key results to aid decision-making. Charts and

graphs summarize the health of the business, point out any issues that need to be
considered or addressed, and make it easy for executive management to
understand what is going to happen over the period of the forecast and thus
make important decisions.
Categories of Cash Flow Forecast

A rolling monthly cash flow forecast can be derived from a balance sheet and
income statement driven by explicit inputs. There are three categories of cash
flow forecast:
Operating cash flows forecast
1. Starting with net income from the income statement, add back any non-
cash expenses that are included in the income statement such as
depreciation from the PP&E breakdown.
2. Adjust for changes in operating assets and liabilities or the working

capital. Examples of working capital are trade and other receivables,
inventories, and trade and other payables.
3. Forecast working capital using working capital ratios such as receivable

days, inventory days and payable days. For a monthly cash flow forecast,
the following ratios should be used:
Monthly accounts receivable = Receivable days 30 * Sales
Monthly accounts payable = Payable days 30 * Cost of sales
Monthly inventory = Inventory days 30 * Cost of sales
36
Investing cash flows forecast
1. Cash outflows include money invested in property, plant, and equipment

(PP&E) in the form of capital expenditures, or acquisitions of new
businesses.
2. Cash inflows include proceeds from disposals of PP&E or businesses.
Financing cash flows forecast
1. Cash inflows Include cash raised by issuing equity or debt.

2. Cash outflows include cash used to repurchase or repay equity or debt,
and dividends paid out.
Week-4
 Work Assigned
1. SOP for SAP
2. Material Invoice Booking
3. Accounts payable processes
 Work Executed
Guidelines
 All SOP’s are controlled centrally through a version No. by Strategy
Planning Team
 Any change in the SOP will be approved by the Respective Department
Head.
 Changed SOP will then be allotted a New Version No. by Strategy
Planning Team.
37
Material Invoice Booking

Material MIRO can be booked in two ways, on the basis of GRN/Delivery
Note and Purchase Order. Most of the time we book a MIRO by using
Delivery note mentioned in GRN (MIGO)
Purchase order is used when Freight charges are given in the Invoice and not
captured in the GRN. (Similarly, delivery charges, transportation charges etc.)
The main purpose of booking MIRO by using Purchase Order is to book these
Freight charges.
Process Flow:
Login:
 Enter SAP user Id
 Enter Password
 SAP Easy Access menu will be displayed.
 In command field enter T-code MIRO.
 Select your company code.
 Fill in the field:

1. Business place/section: HA01, then go to SYSTEM in main taskbar, user
profile and select Hold Data/Set Data. This will freeze the field
“Business place/section” hence we do not need to fill it every time we
book a MIRO.
2. Invoice Date,
3. Reference (invoice no.).
 Select “Delivery Note” in PO Reference and enter the same in PO
reference.
 ‘Invoice Date’ is the date mentioned in the Invoice and ‘Reference’ is the
Invoice Number which is also captured as delivery note in the GRN/MIGO.
 The fields-Date, Reference and Delivery Note are Mandatory to book an
Invoice in MIRO.
38
 After entering these fields press ENTER.

 Vendor details will be displayed on the right side of the screen along with
the basic amount and subsequent GRN.
 Verify the Quantity and Net price. It should be equivalent to the invoice
Quantity & Net price.
 Then click on the Calculate tax indicator. Make sure that tax code A1 is
selected. It will calculate the tax imposed on material and adds the resulting
amount to the basic total.
39
 The sum of basic amount and tax amount should be equal to the Invoice
amount.
 Then enter the invoice amount in the amount field on basic data screen and
check whether the balance comes to zero. The zero balance ensures that all
the calculations are correct.
 Click on the Details tab, copy the PO number and paste it into the fields
ASSIGNMENT and HEADER TEXT.
 Then click on the tab ‘Withholding Tax’, enter a zero in the field W/tax
base FC.
 Click on Simulate or press Ctrl+Shift+F7.
 This step will simulate the document into Credit and Debit. Invoice
amount will be credited to the Vendor’s Account and subsequently it will
debit the material account, this will balance the debit & credit side.
Accounting entry:
Vendor A/c Dr.
To Material A/c
 Check the profit centre/cost centre & plant on the same screen by using tab
key.
 And finally click on POST or press Ctrl + S to post the invoice document.
 A document number will be generated and displayed at the bottom of the

screen. This number is known as MIRO Number and it starts with “5105”.
40
Week-5
 Work Assigned
1. T-CODE booking
2. Invoice cancellation
 Work Executed
Invoice cancellation
Any invoice that has been wrongly booked previously, cannot be edited to
correct the mistakes, rather needs to be cancelled using T-code MR8M.
Process Flow:
 Type T-code MR8M in SAP Window.
 In the following window, enter
1. Invoice document no. received when MIRO was booked,
2. Fiscal year- in which reversal is being done
3. Reversal reason
4. Posting date of the incorrect invoice.
After entering the above said details click on reversal icon.
The invoice or MIRO booking has been reversed and the notification is
displayed at the bottom of the screen with reversal number.
Debit / Credit note booking
Debit Note is a commercial document used by a buyer to inform vendor about
the goods returned and requesting the amount of the goods being returned.
 Different types of debit note.-Fines & penalties, rejection, etc.
 T-Code : FB60
 Tax : Input tax
Whereas Credit Note is a commercial document issued by the seller to the

buyer for the same or lower invoice amount and then repays the money or
settles it against any balance due from previous transactions.
 Different types of credit notes - Supplementary invoice, etc.
 T-Code : FB65
41
 Tax : Output tax
Process Flow:
1.) Steps Involved in Booking of a Debit Note:
 Go to Sap Easy Access Menu, enter T-code FB60.
 Select transaction type as Invoice.
 Enter Vendor code, Invoice Date and Reference.
 Select Document type as KR Vendor Invoice BLB.
 In Layout screen input respective G/L acct, Text- Supplementary, Cost
centre and it will take the Profit centre by itself.
 Fill HSN code. Click Enter.

 Fill the amount displayed in balance on the top right corner in Amount
field.
 Fill in business place/section HA01.
 Go to DETAILS tab, in Business Area enter BLB1.
 Go to the tab page “Withholding tax”, if applicable deduct TDS, else put
zero in the field.
 Click ENTERS. Details of the invoice will be displayed.
 Simulate and Save/park the document.

 The Manager/Assistant Manager will display the parked document with T-
code FBV0.
 He will verify the invoice and post the parked document.
42
2.) Steps Involved in Booking of a Credit Note:

 Go to Sap Easy Access Menu, enter T-code FB65.
 Select transaction type as Credit Memo.

 Enter Vendor code, Invoice Date and Reference.
 Select Document type as KR Vendor Invoice BLB.
 In Layout screen input respective G/L acct, Text- Supplementary, Cost
centre and it will take the Profit centre by itself.
 Fill HSN code. Click Enter.

 Fill the amount displayed in balance on the top right corner in Amount
field.
 Fill in business place/section HA01.
 Go to DETAILS tab, in Business Area enter BLB1.
 Go to the tab page “Withholding tax”, if applicable deduct TDS, else put
zero in the field.
 Click ENTERS. Details of the invoice will be displayed.
 Simulate and Save/park the document.
 The Manager/Assistant Manager will display the parked document with T-
code FBV0.
 He will verify the invoice and post the parked document.
Week-6
 Work Assigned
1. Document Invoicing
2. Custom duty payments
3. Various stages of payments
 Work Executed
Custom Duty Payment

Process Flow:
From the JCB Login at IBM Lotus notes site, go to “Electronic imports
shipment control system”
43
The process includes 11 stages as follows:

Stage I: Awaiting For Draft
Drafting includes all the details regarding invoice, freight, clearing charges,
shipment, vendor, mode of transportation, etc.
Trade Documents
 Performa invoice
 Commercial invoice
 Packing list
 Delivery Note
 Purchase order
 Conditions of Sale
 Bill of Lading B/L
 Bill of Lading FBL
 Irrevocable Letter of Credit L/C
 Insurance Certificate
 Certificate of Origin
 Certificate Form A
 Inspection Certificate
 Pack All Documents
Stage II: Awaiting For Clearing Inputs

Refers to delivery of material at the port. It is a manual entry that the goods
have been received.
Stage III: Awaiting For Duty Payment
For duty payment, the person being assigned the work has the details
including port code, vendor name, duty amount, Bill of Entry code, etc.
Duty payment includes the following steps:
 Export the above said details to an excel sheet.
 Apply filter and arrange the details port wise.
 Total all the duty amounts and side wise sub-totals for each port.
 In the custom duty site (https://icegate.gov.in/)>> services>> e-payment
 The following page will be shown for e-payment process.
44
 Fill the following details:

1. Document type: BE
2. Location Code: of the port for which payment is to be made
3. IEC: Import Export Code
4. Captcha
 List of the custom duty for each delivery at the port would be displayed in
the following screen.
 Click on the Check box to select the challans to be paid for the concerned
branch of the company. If the amount of any two duties is same, do the
selection according to the Bill of Entry code.
 You can reset the selected Challans by clicking on ‘Reset’ button.
 Reconcile the total of the selected custom duty amounts being displayed at
the bottom of the screen with the sub total of the port calculated earlier.
 Click on ‘Pay’ button to proceed with the payment.
 List of selected Challan is displayed on this screen.
 Click on the Confirm button to go to the next screen to select Bank.
 From the list of Logo of the banks being displayed, select the bank of the
concerned company.
 Proceed with the bank gateway to complete the transaction.
 Select internet banking.
 Select Corporate banking.
 Select Transaction Without Merchant Payment Limit.
 After completing the transaction you will be redirected to ICEGATE Portal.
 The screen displayed includes an E-cheque and E-order number. Note the
number in the excel sheet saved.
 Mail the attachment to all the authorized signatories, and all the persons
concerned for approval to proceed with the payment.
 Either there will be revert from the signatories for the approval being done
or it can be checked from the bank’s website >> Login >> reports >> Query
by account.
Stage IV: Awaiting For Custom Clearance Completion
A manual entry is done that the custom duty has been paid by the company
for the delivery of goods.
After making the payment, the accounting entry would be:
45
Custom Duty A/c Dr.

To Bank A/c
Stage V: Awaiting For Warehouse Confirmation
A warehouse confirmation is made for the storage of goods after freight
and custom transactions are made.
Stage VI: Awaiting For MIRO request
A manual request to generate a MIRO for the above said transactions is
made to the person concerned.
Stage VII: Awaiting For Custom Miro
A custom MIRO is prepared with the following taxes on the standard rate
of goods received:
 BCD Basic Custom Duty 10% on the basic value of material making
the cost 110%
 Cess 3% On basic value + BCD
 GST On Basic value + BCD+ Cess
Importing goods involves expenses like:

 Custom duty
 Cess
 Freight charges
 Clearing Charges
To post the above payments or expenses in SAP, an invoice is prepared using T-

Code MIRO which can be denoted as Custom MIRO.
Preparation of Custom MIRO, involves certain steps.
 Login to IBM lotus notes through JCB registered account.
 Click Import Shipment Control Request System.
 From the “Stage-VII Awaiting for Custom MIRO” section, double click on
any of the pending request.
 The Import Shipment Control Request(ISCR) document would be
displayed as shown.
 Note the following details of each request.
46
 Document Number
 Purchase Order Number
 Duty Amount (without interest)
 Download the BOE(Bill Of Entry) attachment in Clearance Input
Section.
 The BOE includes all the details of charges paid for each item separately.
 For each material note separately: (marked on the screenshot of BOE)
a) Number of pieces
b) Assessable Value
c) Cess
d) BCD(Basic Custom Duty)
e) Freight charges(if paid by the consignee)
f) GST
g) Any other charges paid by the consignee
Required portion of BOE ( Bill Of Entry):

9. Process Flow:
 In SAP, Enter T-Code MIRO.
 Enter the following details from the draft:
 Invoice Date : on which the invoice is being booked
 Reference No.:Document number on ISCR
 Amount: Duty Amount
 Tax: Import Purchase Tax
 Text: Document No. on ISCR
 Purchase Order number
 Click Enter.
 Details of the PO will be displayed.
 Double-click on PO number from the list displayed.
 Select Custom Duty.
 The details of the purchase order will be displayed, note the quantity of
each material.
 Input the quantity of each unit in the quantity on previous window,
custom duty and Cess.
 Select Calculate Tax.
 Accounting Details will be displayed as under:
 Park/Save the document.
47
 Copy the Document ID displayed at the bottom of the screen.

 In Lotus notes, click Approve; enter the Document ID number in Custom
MIRO number.
 Again Click Approve
The request is approved and hence transferred to next stage.

Stage VIII: Awaiting For MIGO Completion
A MIGO entry is made for the goods being delivered to the stores of the
factory. GRIR is made with purchase order.
Stage IX: Awaiting For Vendor Miro
Accounting Entry:
GRIR A/c Dr.
To Vendor A/c
Stage X: Awaiting For Original BE Submission
The importer clearing the goods for domestic consumption has to file bill
of entry in four copies; original and duplicate are meant for customs, third
copy for the importer and the fourth copy is meant for the bank for making
remittances.
If the goods are cleared through the EDI system, no formal Bill of Entry is
filed as it is generated in the computer system, but the importer is required
to file a cargo declaration having prescribed particulars required for
processing of the entry for customs clearance. In the non-EDI system along
with the bill of entry filed by the importer or his representative the
following documents are also generally required:-
 Signed invoice
 Packing list
 Bill of Lading or Delivery Order/Airway Bill
 GATT declaration form duly filled in
 Importers/ CHA’s declaration
 License wherever necessary
 Letter of Credit/Bank Draft/wherever necessary
 Insurance document
48
 Import license
 Industrial License, if required
 Test report in case of chemicals
 Adhoc exemption order
 DEEC Book/DEPB in original
 Catalogue, Technical write up, Literature in case of machineries,
spares or chemicals as may be applicable
 Separately split up value of spares, components machineries
 Certificate of Origin, if preferential rate of duty is claimed
 No Commission declaration
Stage XI: Awaiting For Supplier Payment

When the goods are delivered to the stores of the factory, the advance
payment made is transferred to the vendor’s account.
Week-7
 Work Assigned
1. Benchmarking of R&D expenses
2. Data collection for benchmarking
3. Analysis
 Work Executed
Week-7 A small research task was assigned about benchmarking of JCB design
centre on how to improve its efficiency with respect to other companies of same
domain of business like John derre,CAT. But the problem arised was the data
comparison was a cumbersome task and these companies didn’t have standalone
statements for their Research & Development Department, As the task assigned
should only consider the Research & development data so the company selection
was the paramount task that only the companies which have standalone data for
it, after consistent efforts for the entire day standalone data couldn’t be found on
the companies initially selected, instead technology companies were selected
because the major expenditure they do is on R&D that was all about the basic
essence of the research task assigned. So for the purpose Infosys, TCS and Wipro
were selected to establish a link between where we lack as compared to the
49
industry standard various calculations were undertaken for the purpose and a
summarised analysis was presented by senior management to the Respective
Board.
The Analysis had its own limitations as a descriptive apple to apple comparison
couldn’t be established.
Benchmarking with other Companies
• Objective of Benchmark
• To benchmark the key financial ratios with comparable companies

for identifying the areas of improvement
• Benchmark Companies : 1. TATA Technologies LTD ( TTL)

2. WIPRO
3. TATA Consultancy Services (TCS)
4. Infosys
• Methodology:
• For the purpose of benchmarking, financial statements of above

companies were examined and key financial and operating ratios
were computed for comparison with Design Centre
Note: Standalone Financial statements for engineering companies with

similar nature – John Deere, Rolls Royce, CAT and L&T were not available
for benchmarking. The above companies have been selected based on data
available and are indicative, so not fully comparable
50
Analysis
Revenue Ratios (Contribution %, Revenue/HC/PM, Contribution/HC/PM)
 From the data, we were able to observe that the industry standard expense
on direct labour ranges from 45% to 50% whereas we stand at 73%,
which automatically results in low contribution.
 Talking about fixed overheads, we are in the ideal industry range.
 Our EBIT is very low as compared to the industry which is another
consequence of high labour cost.
 If we compare the Total cost/HC/PM we are operating on a very low cost,
but we are lagging behind on the Revenue front which in turn is
producing a very low EBIT/HC/PM
51
Week-8
 Work Assigned
1. Risk Matrix
2. Risk Mapping
 Work Executed
Another Research Task was assigned as coming towards the end of the
Internship tenure for risk mapping matrix making a comprehensive automated
function for various departments in the organisation when it came to assess the
risks the organisation department faced and accordingly solutions or migratory
processes which can be followed to curtail the risk and monitoring it so that the
loss can be minimised, maximising the efficiency of the organisation and
creating reliability and dependency of the organisation on its internal processes
for this purpose first step was to create a risk data base where consolidated risks
were accumulated categorising and sub categorising on the basis of the needs of
the organisation through various departments and as to make it more effective to
understand various levels were established in as to impact, plans, likeliness
according to scoring of Low, moderate and high.
52
Likelihood of Risk Occurrence
Level Description Ranking Criteria
10 Remote Event May occur in exceptional circumstances
20 Unlikely Event could occur in rare circumstances
30 Possible Event could occur at sometimes
40 Likely Event could in most circumstances
50 Almost Certain Event is expected to occur in most circumstances
53
Findings
 Every organisation operating on a small or a large scale whether a cash
rich one or cash crunch one needs funds on a daily basis to manage its
various operating and non-operating expenses and just like the HR
department has the task of allocation of right talent at the right place the
treasury department makes sure that the organisation has enough funds to
meet its obligations.
 Unlike, some organisations of the competition like escorts who have a
very aggressive policy towards cash management and cash investment
where they make money from money, JCB has a very conservative policy
as to cash management they believe in making money through risk free
returns i.e.: Bank FD’s that too they only go for FD’s for a maximum
period of 90 days, initially I was very curious as to know the reason as to
why to miss out on opportunity to make maximum returns to the excess
funds available, My industry mentor then explained as to the vision of the
Chairman who believes that since their primary business is making
construction equipment’s manufacturer since this the main cash
generating part of business so why not focus only on that, rather
becoming the master on none.
 The daily collection of JCB India can go up to Rest. 30 core (tentative
figures not completely accurate).
 Working capital management analysis is an in depth analysis coverage’s
the entire financial management the with refers to integrated. JCB
finance is company, which give preference to the common man’s
privilege. Hence ,it is on integrated approach and constant measure
may be adopted for better managerial performance. working capital
analysis its criteria is distinctive work while and commendable
technique in postulating the financial behaviour of business
enterprise. Thus, working capital management which integrated, internal,
intermediate, and organization based financial and analytical
measurement the study always a strategic measurement with references
in performance, growth expansion and modernization of the business.
54
Conclusion
 Commenting about the working capital position of the company I can say
it is in a very positive position, though I don’t have any major financials
to support it, but since the company is unlevered so one can say that they
are quite self-reliant in nature when it comes to arranging funds.
 The reason why JCB is at the number one spot in India is be a
combination of various reasons:
1. Employees having loyalty towards the organisation,
which is evident by the attrition rate-16%
2. JCB India is very active in terms of innovation and
expenditure on R&D which makes the products different
and more competitive from the competitors giving them a
dominant position in the Indian market where 50% of
construction manufacturers used in the country is made
by JCB.
 JCB’s two new plants in Jaipur will surely help them to get an edge over
the competitors.
55
Limitations
1. The time constraint was an obvious limitation faced while interning as
there was still a lot to learn and write about the experience at JCB India,
The study was conducted within a short span of 8 weeks.
2. Since it is privately held companies so financials were not readily
available and the employees were reluctant to share any information of
financial nature which might expose vulnerabilities or weak spots in order
to protect the organisation.
56
Recommendations
1. The automation of various processes is required at a various levels
For example: the task of collecting data needs to be simplified in order to make
cash forecasting reports the data a number of time is misinterpreted or isn’t
accounted for which leads to low accuracy of forecasts use if cloud computing
In such a situation a detailed process needs to be established at a micro level
through Excel and Google keep notes that every small payment and small
revenue is accounted for and data is linked to every department of the
organisation.
2. The various liquidity ratios are quite satisfactory rather more than satisfactory
I’d say since the operating cycle of quite low which in term helps to improve
the financial health of organisation even more by investing in the stock or the
mutual fund market for better and more efficient utilization of working capital.
3. A dynamic young stuff should be appointed who can get modern approach to
problems.
4. The organisation believes in giving reasonable liberty to all its employees

which might sometimes lead to not a constructive and work friendly
environment.
5. The organisation to all its senior employees should provide therapy sessions
for them so that they can contribute to the organisation in an effective manner.
57
Major Learning’s
J.C. Bam ford Excavators Limited, universally known as JCB, is a

British multinational corporation, with headquarters in Rochester, Staffordshire,
manufacturing equipment for construction, agriculture, waste
handling and demolition. It produces over 300 types of machines, including
diggers (backhoes), excavators, tractors and diesel engines. It has 22 factories
across Asia, Europe, North America and South America products sold in over
150 countries.
Processes
There are various departments in the organisation-production department,
marketing and sales department, HR department, Treasury department, accounts
payable department. The marketing and sales, production department are in
constant co-ordination together as a golden triangle to serve a combined
function together.
Learning While Working
As a treasury intern various cumbersome tasks were assigned to me who was
report related and research related tasks, initial expectations of work actually
made me realise that there was endless scope to ask for work here and to learn.
One thing that me realise was you have to show up to work even if it’s early to
learn a new skill, I was very keen to learn about bank manual reconciliation of
SAP, Mar. Sunil Gupta the concerned authority who worked on it asked me that
you have to come in early at 8:30 AM if you want to learn it, so I adapted to it
and it was new learning experience. In my tenure of 8 weeks I learned to multi-
task at various points. I learned to show a positive and holistic approach in the
internship and tried to reflect it in the internship.
Company Working Culture
The overall environment of the organisation was one which is best suited to the
comfort of employees to ensure maximum efficiency in a manner which suits
58
the combined interest of the employees and organisation. JCB thinks about its
employees in a number of small gestures they provide buffet lunch to all the
employees and interns and also provide bus facility of pick and drop at various
approved routes. The CSR team undertakes various efforts to show that as a
company we care about the environment through various charities and efforts.
59
References
1. www.jcb.com
2. www.jcbindia.com
3. JCB treasury group guidelines
4. Reference material from Mr Remit Sod-Head of Sales and Mr Remit
Sharma- VP(Sales)
5. ICAI Hand-Out on In As
6. ICAI internal audit controls
7. www.bse.com
8. www.nse.com
9. https://www.guru99.com/how-to-perform-a-journal-entry-
posting.html
10.Financial Management by C.A RK Mehta Published By Aldine
Publications.
11. Risks and Exposures by Dr. Anurag Agnihotri.
60
ANNEXURES
I
Cash Report Format
DIVISION: JCB
INDIA LIMITED JCB India Fabrication Heavy Line Consolidated Consolidated
Local Local Local
Currency Currency Currency Actual GBP
('000) ('000) ('000) ('000) GBP ('000)
Opening Balance
Books of Account -
November 08, 2013 8,128,343 83,938 135,304 8,347,584 £104,345
Creditors Paid
Materials 996,354 3,693 59,299 1,059,346 £13,242
Expenses(Incl.
Salaries/Wages) 125,509 529 16,715 142,752 £1,784
Capital 4,266 0 0 4,266 £53
Statutory(Incl.
VAT/Tax) 32,767 9,755 4,680 47,202 £590
Other Payments 0 0 0 0 £0
Sub-Total 1,158,896 13,977 80,694 1,253,567 £15,670
Exceptional items
Paid
Advances to Group
Companies 20,000 (486) (19,514) 0 £0
Repatriated monies 0 0 0 0 £0
Sub-Total 20,000 (486) (19,514) 0 £0
Cash Received
Collections 1,030,336 0 0 1,030,336 £12,879
Other receipts 6,130 3,810 1,098 11,039 £138
Sub-Total 1,036,466 3,810 1,098 1,041,375 £13,017
Closing Balance
Books of Account -
November 14, 2013 7,985,913 74,257 75,222 8,135,392 £101,692
Float 117,513 (268) (13,828) 103,417 £1,293

Closing Balance Bank
Statement - November
14, 2013 8,103,426 73,989 61,395 8,238,809 £102,985
61
Bank Balances Balances Balances Balances Balances Balances
CITI BANK 1 304 43 - 347 £4
CITI BANK -2 - - - - £0
STANDARD
CHARTERED 1,549,375 - - 1,549,375 £19,367
STANDARD
CHARTERED - 2 2,300,000 - - 2,300,000 £28,750
HSBC-1 715,793 58,709 60,646 835,148 £10,439
HSBC-2 1,400,000 - - 1,400,000 £17,500
BARCLAYS BANK - 1 995 - - 995 £12
BARCLAYS BANK - 2 1,900,000 - - 1,900,000 £23,750
CANARA BANK 142 - - 142 £2
HDFC BANK 155,285 - - 155,285 £1,941

STATE BANK OF
INDIA & Others 81,533 15,237 748 97,518 £1,219
Total 8,103,426 73,989 61,395 8,238,809 £102,985

Total Bank Balances +
Fixed Deposits 8,103,426 73,989 61,395 8,238,809 £102,985
62
II
63
64
III
65
66
IV
Weekly Report Format
Weekly Report for Week ending ___15th Application Based Faculty

May 2019-17th May 2019______ Learning in Respective Remarks
Specialization
Summer Internship Programme (On the
Job Training / Research Project)
Name: Kartik Wadhwa
Company: JCB INDIA LTD.
Location: Ballabhgarh, Faridabad,Haryana
Industry Mentor Details: Mr Rohit Srivastava
Faculty Mentor: Dr Gauri Modwel
Project Title: Working Capital Analysis
On the Job Training

Status
Weekly of
Activity Activitie Learning from the
Assigned s activity/activities
(Give Assigne assigned / Work
Details) d accomplished
1.
Formalities
to start the
internship
were
complied
and adhered
to as per the
company Comple
policy ted
67
Understanding the treasury

department will develop
2.Studied
strong basics for banking
the treasury
concepts paving way for
group
opportunities in banks and
guidelines
asset management
provided by
companies
the mentor
to get an
overview of
the process
and
knowhow
of working
capital
managemen
t by the
treasury
department
and the
sanctions
and limits
they adhere
for
maximum
fund Comple
utilization ted
Effective analysis of
working capital
3.
requirement financial
Understandi
analysis of books will help
ng the
me improve my
control
Comprehension and
systems of
analysis of skills
JCB for
their
banking
activities
investment
of surplus
working
capital and
maintaining
excel of
Recent FD
records with
maturity
date and
putting
In
sanction
Progress
limits as per
68
company
guidelines
4. Working
on the
process of
Bank
Guarantee Since in the recent time a
and how it lot of scams and frauds
is utilized have been revolving
by JCB to around Bank guarantee
cover its and Letter of Credit so the
exposure understanding of how they
and hedge are practically used will
the risks of In help me understand the
faults Progress core banking functions
69

May 2019-25th May 2019______ Learning in Respective Remarks
Specialization
Name: Kartik Wadhwa
Industry Mentor Details: Mr Rohit Srivastava

On the Job Training

Status
Weekly of
Activity Activit Learning from the
Assigned ies activity/activities
(Give Assign assigned / Work
Details) ed accomplished
As a Finance Student
theoretically I have spent
1.Practical
quite a lot of time
Understandin
understanding theoretical
g of Cash
concepts of cash flow here
Flow
I was able to apply the
Statements
concepts and understand
and how
the practical aspects of
they’re made
cash flow and operating
by JCB India
cycle which are important
Through
to the financial statement
different
compliance Comp
procedure leted
70
There are different cash

management models that depend
on
2. Working the approach of the organization
on Different
accounting 1. Conservative
concepts of 2. Aggressive
cash
management
At JCB India the approach is very
studying the
conservative so the model of safe
model of
invests is applicable which
Cash
enables me to understand how
Management
cash surplus and conservative
Liquidity
companies invest their excess
Policies of Comp
funds
JCB India leted
SAP is the major accounting tool

used almost everywhere, this
3.
enables me to increase my
Understandin
technical accounting skills and
g the control
employability throughout
systems of
JCB for their
banking
activities
investment of
surplus
working
capital and
maintaining
excel of
Recent FD In
records with Progre
maturity ss
4. Working
on the
process of
Bank Since in the recent time a lot of
Guarantee scams and frauds have been
and how it is revolving around Bank guarantee
utilized by and Letter of Credit so the
JCB to cover understanding of how they are
its exposure In practically used will help me
and hedge the Progre understand the core banking
risks of faults ss functions
71

May to 2nd June 2019______ Learning in Respective Remarks
Specialization
Name: Kartik Wadhwa
Industry Mentor Details: Mr Rohit

Srivastava

On the Job Training

Status
Weekly of
As a Finance Student
theoretically I have spent
1. Practical
quite a lot of time
Understandin
understanding theoretical
g of Cash
concepts of cash flow here
Flow
I was able to apply the
Statements
concepts and understand
and how
the practical aspects of
they’re made
cash flow and operating
by JCB India
cycle which are important
Through
to the financial statement
different
compliance Comp
procedures leted
72
Being able to understand trends

in accuracy will allow you to
build confidence in the
information you use for decision-
making purpose
2.Preparing
weekly report
for JCB
INDIA whch
is known as
13 week Comp
report leted
SAP is the major accounting tool

used almost everywhere, this
3. 3.Working
enables me to increase my technical
on SAP ERP
accounting skills and employability
system which
throughout
is a major
accounting Learning different codes for
software used banking transactions used in SAP.
by most
organizations
worldwide
accounting
for different
transactions
and learning
the Standard
Operating
Procedures
and different
codes they
use for bank In
reconciliation Progre
process ss
Studying forecast models
4. 4.Working 1. Daily
2. Monthly
on Finding
3. Weekly
Compliance
issues as per
Ind as 7 and And drawing conclusions as to
how the which model could be altered to fit
process of the best need of organization to
Cash In reach their targeted accuracy of 85-
forecasting Progre 90% and to reduce less variance in
73
can be made ss the actual vs. forecast giving the

robust and company a better hand to make
working on more informed and better decisions
the
improvement
of accuracy
of forecast
considering
various
factors of the
business that
could be
affecting the
business
74

May to 2nd June 2019______ Learning in Respective Remarks
Specialization
Name: Kartik Wadhwa

Srivastava
On the Job Training

Status
Weekly of
Weekly reports linking the
cash models to the
1. Linking 13
different real life scenario
week weekly
is understand the
cash
implications
management
to costing
aspects and
forecasting Comp
process leted
SAP accounting software

preparing the SOP so that
2. Preparing
further training and
Standard
development of associates
Operating
is simplified
Process of
Manual
Banking
Process of
recording
Comp
reconciliation
leted
entries for
75
SAP Entries
SM-67
A lot of cash models are

taught in class where only
3. Studies
theoretical concepts are
different cash
taught to us like-
models to
understand 1. Baumols EOQ
the different Model
outlooks to Miller or cash
have model
optimum
The clear difference what I
cash in
felt while working on
account at all
them practically was they
times and
did some assumptions that
minimum
might not hold true always
balance
through every industry.
required
usually to In
carry out Progre
operations ss
76
Weekly Report for Week ending ___3rd Application Based Faculty

June to 9nd June 2019______ Learning in Respective Remarks
Specialization
Name: Kartik Wadhwa

Srivastava
On the Job Training

Status
Weekly of
cash models to the
1. Linking 13
week weekly
is understand the
cash
implications
management
to costing
aspects and
forecasting Comp
process leted

2. Preparing
Standard
Operating
is simplified
Process of
Manual
Banking
Process of
recording
Comp
reconciliation
leted
entries for
77
SAP Entries
SM-67

3. Studies
different cash
taught to us like-
models to
the different Model
have model
optimum
cash in
account at all
times and
minimum
balance
required
usually to In
carry out Progre
operations ss
78
Weekly Report for Week ending ___10rd Application Based Faculty

June 2019-16th June 2019______ Learning in Respective Remarks
Specialization
Name: Kartik Wadhwa

Srivastava
On the Job Training

Status
Weekly of

cash models to the
1. Linking 13
week weekly
is understand the
cash
implications
management
to costing
aspects and
forecasting Comp
process leted
2. Preparing
Standard
Operating
is simplified
Process of
Manual
Banking
Process of
recording
reconciliation
entries for
SAP Entries Comp
SM-67 leted
79

3. Studies
different cash
taught to us like-
models to
the different Model
have model
optimum
cash in
account at all
times and
minimum
balance
required
usually to In
carry out Progre
operations ss
80

June 2019-23rd June 2019______ Learning in Respective Remarks
Specialization
Name: Kartik Wadhwa

Srivastava

On the Job Training

Status
Weekly of
Analysing pattern of
payments helps to
1. Linking 13
allocation of resources at
week weekly
the right time.
cash
management
to costing
aspects and
forecasting Comp
process leted
2. Preparing SAP accounting software

Standard preparing the SOP so that
Operating further training and
Process of Comp development of
SAP leted associates is simplified
81
Learning from our

mistakes help us to grow
3. Studying
policies of But learning from the
competitors competitor’s shortcoming
with helps us to outgrow them.
whatever
.
secondary
data is made
available to
analyse our In
short Progre
comings ss
82

Summer Training Report On: Working Capital & Processes

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Summer Training Report On: Working Capital & Processes

Загружено:

Авторское право:

Доступные форматы

Working Capital & Processes

SUMMER TRAINING REPORT ON

Working Capital & Processes

JCB India Pvt Ltd

Post Graduate Diploma in Management

Specialization: Finance and Marketing

New Delhi Institute of Management

SUMMER TRAINING REPORT ON

JCB India Pvt Ltd

Under the supervision

Mr Milind Aggarwal (DGM Finance)

Submitted By- Submitted to-

Kartik Wadhwa Dr Gauri Modwel

Certificate from the Company

It has been a remarkable experience of satisfaction and pleasure for me to work

I Kartik Wadhwa student of New Delhi Institute of Management (2018-20)

Date of project submission:

Signature of the Student

Faculty Mentor’s Comments:

Signature of Faculty guide

Dr. Gauri Modwel

External Examiner’s Feedback

Date of project submission:_____________

Signature of the Student

External Examiner’s Comments:

Signature of External Examiner

S.NO NAME PAGE

Cash forecast report format 1

J.C. Bamford Excavators Limited, universally known as JCB, is a

Overview of the Industry

 7-8% of the national GDP is the contribution of the construction

 62.1% is the share of the earth moving equipments in the

Overview of the company.

JCB India Limited is a leading manufacturer of earthmoving and construction

Loaders, Telehandlers, Diesel Generators and Diesel Engines.

JCB is committed to CSR through the Lady Bamford Charitable Trust.

Close Competitors of JCB include-

Hierarchy/ Organisational Structure

Anthony Bamford Chairman

Executive Vice President

Associative Vice President

Regional General Manager

Regional Product Manager

 The customer segment of the JCB includes people and businesses

Ready Mate Builder Material

JCB Tata Hitachi case CAT Others

In Backhoe category, It has more than 80% market share.

JCB CASE CAT 20 HITACHI

Positioning of your company in the industry space

Recent Mergers and Acquisitions

Future Plan of Expansion

New Initiatives taken towards better customer satisfaction

It is based on Service-Operation-Security concept which enables customers to

The impact of using the Livelink- advanced telematics system

1. Geographical – Jcb has developed the most comprehensive dealer and

2. Re- manufacturing: Service exchange- JCB has rolled out a scheme by

5. Buyback policies – Every product of JCB India comes with a buyback

6. Dealer Incentives – It has one of the best dealers network in the

Broadly Speaking about the internship, it was in respect to understanding

1. To Understand Cash forecasting. Compile Financial Information from

2. To Understand working capital monitoring. Working Capital forms a very

3. To understand basics of Risk management. Use various hedging and

Key Responsibilities Assigned (KRAs)