ASSIGNMENT

Submitted By: AMIT ARORA

Enrolment No: M090700005
Dated: 16 Sep,2009

Submitted To:
Dr. ASHOK BHANSALI
1.NEED FOR INFORMATION
Information management has become a powerful
resource and a large expense for many organizations.

Helps in decision making at various levels.

o Environmental management
o Creation of slack resources
o Optimum utilization of resources
INFORMATION MODEL
Facility information model
Plant information model
Building information model

Flow of information in an ORGANIZATION

VERTICALLY
HORIZONTALLY
INFORMATION AGE
Computer Age or Information Era
Use of INTERNET - Digital Revolution
NEED
Information management (IM)
To control the structure & functioning of Org.
understanding of the technology
information management entails organizing,
retrieving, acquiring and maintaining information
practice of Data Management
INFORMATION PROCESSING
vast need for decision making
prevent individuals from acting strictly rational
access, collect and evaluate all environmental
information
decision at a reasonable price, i.e., time and effort
design strategies for organization
Five main organization design strategies
Reduction of information processing needs
 Environmental management
 Creation of slack resources
 Creation of self-contained tasks
Increasing the organizational information processing
capacity
 Creation of lateral relations
 Vertical information systems
2.FINANCIAL STATEMENTS
formal records of the financial activities of a business,
person, or other entity
financial statements are often referred to as accounts
 an overview of a business or person's financial
condition in both short and long term.
Four basic financial statements
Balance sheet: reports on a company's assets, liabilities, and
Ownership equity as of a given point in time.

Income statement: also referred to as Profit and Loss statement (or a

"P&L"), reports on a company's income, expenses, and profits over a
period of time.

Statement of retained earnings: explains the changes in a

company's retained earnings over the reporting period.

Statement of cash flows: reports on a company's cash flow activities,

particularly its operating, investing and financing activities.
PURPOSE
Owners and managers require financial statements to
make important business decisions

Employees also need these reports in making

collective bargaining agreements (CBA)

Investors make use of financial statements to assess

the viability of investing in a business.
PURPOSE
Financial institutions use them to decide whether to
grant a company with fresh working capital or extend
debt securities
Government entities (tax authorities) need financial
statements to ascertain the propriety and accuracy of
taxes
Vendors require financial statements to assess the
creditworthiness of the business.
3.ANNUAL REPORT
An Annual report is a comprehensive report on a
company's activities throughout the preceding year.

Gives shareholders and other interested persons

information about the company's activities and
financial performance.
FIRST REPORT
Balance statement of financial position

 summary of a organization's balances

 Includes Assets, Liabilities & Ownership Equity
 Equity = Assets - Liabilities
SECOND REPORT
Cash flow statement

 provide information on a firm's liquidity and solvency

 information for evaluating changes in assets, liabilities
and equity
 indicate the amount, timing and probability of future
cash flows
THIRD REPORT
Income statement [(P&L) and Statement of
Operations]

 The purpose of the P&L is to show managers and

investors whether the company made or lost money

 Operating section
 Revenue
 Expenses
4.FINANCIAL ACCOUNTING
field of accountancy concerned with the preparation
of financial statements
fundamental need for financial accounting is to reduce
principal-agent problem
used to prepare accounting information for people
outside the organization
help managers make decisions to manage the
business.
ROLE
Financial analysis is performed on statements to
provide management with a more detailed
understanding of the figures.
statements are also used as part of management's
annual report to the stockholders.
Employees or labor union need these reports in
discussing their compensation, promotion and
rankings.
ROLE
Financial analyses are often used by Investors and are
prepared by financial analysts, thus providing them
with the basis for making investment decisions.
Project stakeholders
 a) Sponsor a project
 b) Have an interest in a project.
Examples : customers, the user group, the project
manager, the testers, etc.
ROLE
MANAGERS
Aims
 Formulating strategies
 Planning and constructing business activities
 Helps in making decision
 Optimal use of Resource (economics)
 Supporting financial reports preparation
 Safeguarding asset
ROLE
CREDITORS
It is a person or institution to whom money is owed
 Accounting classification
Long-term liabilities
 'Long-term creditors'
Current liabilities
 'Current creditors'
ROLE
objective of financial statements is to provide
information about the financial position
useful to a wide range of users in making economic
decisions
Financial statements should be understandable,
relevant, reliable and comparable
ROLE
Media and the general public are also interested in
financial statements for a variety of reasons
describe management's performance and the
company's financial highlights.
effective way for corporations to communicate with
individual shareholders.
INTERVIEW WITH Mr. MURTHY
(Infosys)
1. How important is financial reporting to a technology
company?
To understand the strategy of performance
Single window for our investors to look into our
operations and aspirations.
To understand financial values of the company
INTERVIEW WITH Mr. MURTHY
2. Philosophy of Infosys
Under promise, Over Delivery

3.Financial reporting as a part of business strategy.

To assess the viability
Helps customer to understand the strategy
INTERVIEW WITH Mr. MURTHY
4. Financial disclosure results in competitive
disadvantage
It should not create asymmetry of benefits
We believe to disclose, when in doubt

5. Summary of annual report to retail investors

It is worthwhile for the company as well as for
customers .
INTERVIEW WITH Mr. MURTHY
6. PRESSURE ON MANAGERS
• Globalization & competition
• Sharing with the investors

7.EXPENSING STOCK OPTIONS

• Do not dilute more than a certain %age
• Benefit to investors
INTERVIEW WITH Mr. MURTHY
8. Independent Directors
• Corporate governance – minimization cost
• Risk mitigation – to protect shareholders

9. Quarterly reporting discourage risk

• Profits in Long term investment
• Investment will indeed bear fruit
INTERVIEW WITH Mr. MURTHY
10. Globalization / corporate governance in INDIA
• Maximizing shareholder value
• Transparency, fairness and accountability to
stakeholders
• Pressure to Benchmark
• Market capitalization
THANK YOU