NTT DATA Corporation 100 City Square Boston, MA 02129 Tel: +1 800 745 3263 Fax: +1 617 241 9507 Email: info@nttdata.com Approach to Overhead costs allocation for BPO business (White Paper for NTT Data Gold Club) KARTHIKEYAN VADIVEL BMS Version 10.01 STATEMENT OF CONFIDENTIALITY / DISCLAIMER This document is the property of NTT Data and is produced in response to your request. No part of this document shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, to parties outside of your organization without prior written permission from NTT Data. TABLE OF CONTENTS 1 ABOUT THE AUTHOR(S)/CONTRIBUTORS III 2 SCOPE IV 3 INTRODUCTION V 3.1 NEED FOR CUSTOMER LEVEL P&L analysis v 3.2 Existing methodology vi 3.3 Proposed methodology vii 4 TARGET AUDIENCE X 5 CONCLUSION XI 6 GLOSSARY XII 7 REFERENCES XIII 1 About the Author(s)/Contributors • Karthikeyan Vadivel is a Team Lead at NTT Data Global Delivery Services, joined the company in 2007 and is holding master’s degree in Business administration specialized in Finance and Systems, with engineering background. He joined the company in internal audit team as a process planner and then worked as Accounts Payable specialist for the UK entity. He is now into Financial Planning & Analysis, supporting the BPO business and the Corporate team. 2 Scope To overview the current methodology of allocating the overhead costs at client level for NTT BPO business and suggest ways of improvement. 3 Introduction P&L STATEMENT A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide informat... ... middle of paper ... ...lation In the proposed methodology, we can see the true picture of the P&L at client level. 4 Target Audience Senior management (for management reporting) BPO Delivery team Accounting team (GL) Facilities team 5 Conclusion BENEFITS: This helps to identify the true picture of client P&L Helps in comparing the benefits of shift and non-shift operating model Enabling meaningful Client level comparison Provides a better clarity for forecasting and pricing future deals with the client In addition, it helps in better utilization of the facilities. 6 Glossary 1. BPO - Business Process Outsourcing 2. INR - Indian Rupees 3. P&L - Profit and Loss 4. TP - Transfer Pricing 5. GM - Gross Margin 7 References • WEBSITES: 1. www.Investopedia.com 2. http://www.experts123.com
Financial Accounting is ‘Asset valuation, accounting record completeness and accuracy, accounting estimates, reporting transparency, fair value accounting issues, convergence of accounting standards, evolution of accounting standards, audit efficiency and effectiveness’, as suggested by Accounting Dictionary (2014).
The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions.
Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and stockholder’s equity (what is left over for the owners) (Fundamentals of Financial Accounting, 2006, p.7). The Income Statement shows whether a business made a profit (net income) during a specific period of time (Fundamentals of Financial Accounting, 2006, p. 10). The Statement of Retained Earnings illustrates what portions of the company’s earnings was paid to stockholders and retained by the company for future operations (Fundamentals of Financial Accounting, 2006, p.12). Finally, the Statement of Cash Flows reports summarizes how a business’ “operating, investing, and financial activities caused its cash balance to change over a particular range of time” (Fundamentals of Financial Accounting, 2006, p.13).
This document is considered as a financial document because the financial statement provides the statement of financial position and comprehensive income, and cash flow statement and statement of changes in equity. for example, "The cash flow of the Group Lufthansa from operating activities to 3.4bn euros in the reporting year, which is 1.4bn euros, or 71.6 percent, higher than the figure registered previous year."
The objectives of financial statements are to offer data on financial position, variations in financial position, and the organization’s financial outlook (The IASB framework, 2008).
Nortel was a telecommunications company in Canada that’s success was noticed by everyone world wide and many investors including a large role in the U.S. Nortel was the prime example of economic success in Canada and was praised for their stock exchange value compared to the other larger firms of the world. Their downfall was quicker than their rise that was led by a series of unwise acquisitions, scandal, fraud, greed and unethical business tactics hidden all from the public for too long. Multiple unethical business factors were described to be the result for Nortel’s downfall.
The company is continuously rated as 'Navrantna' (see Appendix H) means nine jewels by the government of India based on the sustained performances over the successive years. For the last two decades, the organization has earned the reputation of highest foreign exchange earner for the country. Historically, more than 60 % of the products, i.e., alumina and the metal products are exported to different countries across the globe. In a recent move by the ministry of mines, the government of India is in the process of further equity dilution of 5 % through the initial public offering (IPO). The company has a well-structured multi functional board of directors (BOD) and a full time chairman and managing director (CMD) appointed by the government of India. The BOD also includes members from the other specialised areas to advise and guide on various issues of the company. Figure 5 shows the organizational structure of the company.
This document is the property of NTT Data and is produced in response to your request. No part of this document shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, to parties outside of your organization without prior written permission from NTT Data.
Sintalow Hardware PTE LTD is a business that supplies different types of valves, pipes and expansion joints for the construction industries and mechanical pipe systems for more than 30 years. We started our business since 1979 and we established a reliable and consistent quality of products that can reach a satisfying outcome from our valued customer.
Income statement-: Income statement is the financial statement that measures a company 's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.
The first thing we should ask you what is a financial statement? Financial statements “are business documents that report on a business in monetary terms” (Hornger & Harrison 2007, pg.17). All financial statements are essentially historically documents. The most common financial statements include the balance sheet, the income statement, the statement of changes of financial
An income statement refers to a document that is produced on a monthly basis or annually. It gives a report on a company’s earnings by showing all the incomes earned by the company as well as all the expenses that the company incurs in the generat...
Financial accounting is the analysis, classification, and recording of financial transactions and reporting such information to respective users especially external users who use the information to make decisions about their engagements with the entity. In financial accounting general purpose financial statements are used for external reporting. The public by standards imposes the development of the statements through respective national professional bodies, International Accounting Standards Board and respective company Acts for various nations.
Financial reporting is the final product of financial accounting . Providing financial information to different users, either internal or external users of an entity, is done in the form of accounting reports. Those accounting reports that are prepared and presented with the aim of meeting the information needs of external users of an entity are within the scope of financial reporting.
Financial statements provide an overview of a business' financial condition in both short and long term. They help in understanding the past performance of the company and making future predictions about the company. It thus helps us to look beyond the profit figures.