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A STUDY ON REVENUE GENERATION OF DATA NOTIC INTERNATIONAL PRIVATE LIMITED.. INTRODUCTION: What is Revenue?

In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover. Some companies receive revenue from interest, dividends or royalties paid to them by other companies. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, received during a period of time, as in "Last year, Company X had revenue of $42 million." Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, revenue is often referred to as the "top line" due to its position on the income statement at the very top. This is to be contrasted with the "bottom line" which denotes net income.

For non-profit organizations, annual revenue may be referred to as gross receipts. This revenue includes donations from individuals and corporations, support from government agencies, income from activities related to the organization's mission, and income from fundraising activities, membership dues, and financial investments such as stock shares in companies.

In general usage, revenue is income received by an organization in the form of cash or cash equivalents. Sales revenue or revenues is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers.

In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by a government or government agency. Two common accounting methods, cash basis accounting and accrual basis accounting, do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or International Financial Reporting Standards. In a double-entry bookkeeping system, revenue accounts are general ledger accounts that are summarized periodically under the heading Revenue or Revenues on an income statement. Revenue account names describe the type of revenue, such as "Repair service revenue", "Rent revenue earned" or "Sales". COMPANY PROFILE INTRODUCTION Data Notic International began with a vision to operate locally as well as globally & bring the benefits of BPO Solutions to all categories of customers and to maintain the Quality of Services & Focus on Long Term Benefits of the Clients.In as much as executive of this company are well energetic, sincere, loyal, innate ability, dedicated to the business. We will take up any assignment as CHALLENGE and put all our efforts to complete assignment in time with 99.5% quality and accuracy.Our professionals have played key roles in a wide range of applications such as Data Conversion, XML,e-Pub, Data Entry, Scanning, Image Processing, Form Processing, Medical Billing, E-Book, Hospital Records, Telecom Billing, and maintenance of Database systems

History of The Company: Data Notic International, This Company set up in April of 2005 and registered with Government Of Tamil Nadu by section 58 (1) of the Indian Partnership act.1932 by Mr. Himansu Kumar , having more than 5 years of experience in the field of Hardware & Networking, Man Power Recruitment, Data Conversion, Data Entry, Call Center etc. Now, this company has privilege to introduce it selves as a growing data management company doing jobs like form filling, data conversion, data entry, scanning of documents, conversion of PDF/JPEG/TIFF/BMP files into DOC files, e-Pub conversion, XML/HTML, manpower consultancy and training of staff for BPO (Business Process Outsourcing) etc., for a reputed company like yours under the Division name & style of Data Notic International. Our basic motive is to provide Prompt Solutions to Right Person at Right Place in Right Time for Right Work in the most apropos business solutions to clients that enables them to enjoy a competitive edge over the competing business, and this company, continues to focus on strategic planning for the business, which provides solutions to domestic and globally corporate.

Management of The company: Mr. Himansu Kumar Garnayak, Founder, Managing Director having more than 5 years of experience in the field of Hardware & Networking, and Call Center Projects and NonVoice Projects. Prior to this he was working as a Manager (Technical) in Raj Technology, Chennai supporting the operations of number of blue chip companies of USA. He also ventured into call center project for Multi-Cultural Press (USA) ALLTELL (USA) and Bell Canada. He holds a graduate degree in Aeronautical Engineering and a graduate degree in Business Management.

He is responsible for the overall strategy and focus of the company. He keeps updated with the latest technological developments in IT & ITES industry and brings in extensive management experience to DATA NOTIC INTER NATIONAL. Mrs. Subhasmita G.is responsible for all operations related activities of the company. Additionally she also heads the HR department where she is handling all HR activities. She was working with many ITES companies in the HR department before joining Data Notic international.

Top services of the company: Software development E pub Data entry Xml / Html conversion

Various Client of the company:

We have worked for domestic client and international client for software development and BPO services. To name a few of our clients;

Instant Web Products (Australia), Multicultural Press (USA) BELL CANADA VME ENGINEERS MARUDHAM ENGINEERS PVT LTD SPECTRUM INFOTECH INFYCAREERS

We have created our name in the following industry:

Financial Sector E-Publishing Sector Educational Sector

OBJECTIVE OF STUDY To know how to manage current assets and current liabilities so that satisfactory level of working capital is maintained.

To know how to manage receivable, inventory and cash. To study the different sources of financing capital. To study the operating cycle of company. To study the liquidity position of company. To study the revenue details of company To look at possible remedial measures if any on the basis of which tied-up funds in working capital could be used effectively and efficiently.

To suggest, if possible on the basis of conclusion some modification to meet the situation.

SCOPE OF STUDY The study covers all the components of revenue for the year 2009-2010 The study also deals with the various ratios imparted in the organization. The working capital is one of the dynamic and vital aspects of the business

operation.

The study covers the overall performance of the company related with the

revenue process

The study also deal with revenue generate from the various function of the

company

STATEMENT OF PROBLEM: To understand that an ongoing approach to the problem is essential and that short term responses may have negligible effect.

Data such as savings ratio, debt-to-income ratio, self-evaluation of the productivity, performance rating, and absenteeism are difficult to gather as individuals may not know the exact figures of each category or may not want to reveal this information RESEARCH METHODOLOGY Research in common parlance refers to a search

REVIEW OF LITERATURE In intention to discover the relationship between efficient revenue management and firms profitability(Shin & Soenen, 1998) used net-trade cycle (NTC) as a measure of working capital management. NTC is basically equal to the CCC whereby all three components are expressed as a percentage of sales. The reason by using NTC because it can be an easy device to estimate for additional financing needs with regard to working revenue expressed as a function of the projected sales growth. This relationship is examined using correlation and regression analysis, by industry and working capital intensity. Using a Compustat sample of 58,985 firm years covering the period 1975-1994, in all cashs, they found, a strong negative relation between the length of the firm's net-trade cycle and its profitability. In addition, shorter NTC are associated with higher risk-adjusted stock returns. In other word, (Shin & Soenen, 1998) suggest that one possible way the firm to create shareholder value is by reducing firms NTC. The study of (Shin & Soenen, 1998) consistent with later study on the same objective that done by (Deloof, 2003) by using sample of 1009 large Belgian non-financial firms for the

period of 1992-1996. However, (Deloof, 2003) used trade credit policy and inventory policy are measured by number of days accounts receivable, accounts payable and inventories, and the cash conversion cycle as a comprehensive measure of working capital management. He founds a significant negative relation between gross operating income and the number of days accounts receivable, inventories and accounts payable. Thus, he suggests that managers can create value for their shareholders by reducing the number of days accounts receivable and inventories to a reasonable minimum. He also suggests that less profitable firms wait longer to pay their bills. In other study, (Lyroudi & Lazaridis, 2000) use food industry Greek to examined the cash conversion cycle (CCC) as a liquidity indicator of the firms and tries to determine its relationship with the current and the quick ratios, with its component variables, and investigates the implications of the CCC in terms of profitability, indebtness and firm size. The results of their study indicate that there is a significant positive relationship between the cash conversion cycle and the traditional liquidity measures of current and quick ratios. The cash conversion cycle also positively related to the return on assets and the net profit margin but had no linear relationship with the leverage ratios. Conversely, the current and quick ratios had negative relationship with the debt to equity ratio, and a positive one with the times interest earned ratio. Finally, there is no difference between the liquidity ratios of large and small firms. Working capital policy refers to the firm's policies regarding 1) target levels for each category of current operating assets and liabilities, and 2) how current assets will be financed. Generally good working capital policy (i.e. under conditions of certainty) is considered to be one in which holdings of cash, securities, inventories, fixed assets, and accounts payables are minimized. The level of accounts receivables should be used as a means of stimulating sales and other income. Previous literature on working capital management has found a negative association, overall, between level of working capital and operating performance as measured

by operating returns and operating margins (Peterson and Rajan, 1997). Under conditions of certainty (i.e. sales, costs, lead times, payment periods, and so on, are known), firms have little reason to hold more working capital than a minimum level. Larger amounts would increase the level of operating assets, increase the need for external funding, resulting in lower return on assets and a lower return on equity, without any increase in profit. However the picture changes when uncertainty (i.e. uncertain growth) is introduced (Brigham and Houston, 2000). Larger amounts of cash, securities, accounts receivables, marketable securities, inventories, and fixed assets will be needed to support increased sales Required levels will be based on expected sales levels and expected order lead times. Additional holdings may be needed to enable the firm to deal with departures from the expected values. Further, firms will also attempt to increase their accounts payable balances as a means of financing increased levels of current operating assets. Firms which are in high growth stages will face the challenge of maintaining the necessary level of operating assets to support subsequent growth, while at the same time attempting to maintain adequate performance indicators. This study focuses on understanding how IPO companies manage their working capital and other balance sheet items to support subsequent growth. This study supports the existing literature on working capital and contributes to the existing literature by examining a sample of firms (i.e. recent IPO firms) which have a wider range of growth levels than non-IPO firms. Our study examines the impact of working capital management on the operating performance and growth of new public companies. The study also examines these relationships under three categories of growth (i.e. negative growth, moderate growth, and high growth). The study also examines other selected firm characteristics in light of working capital management: firm operating and financial risk, amount of debt, firm size, and industry.

An underlying theme of this study is that high growth certainly does not ensure high operating performance. Consistent with prior research (Peterson and Rajan, 1997) this study provides further evidence that good working capital management is positively associated with better operating performance. Higher levels of accounts receivable are associated with higher operating performance, in all three of the growth rate categories. The study also finds that maintaining control over levels of cash, securities, inventory, fixed assets, and accounts payables is associated with higher operating performance. We find that firms which are experiencing very high growth will hold higher levels of cash, securities, inventory, fixed assets, and accounts payable to support the high growth. The study suggests that these firms are sacrificing operating performance (accepting lower operating returns) to support the high growth. This, in turn, increases financial and operating risk for these firms. Perhaps IPO firms should stay more focused on their operating performance, while maintaining more moderate growth levels.