Assignment - 5

Submitted By
Shiraz Iqbal(P37070)
Shivam Mishra(P37072)
Shreya Doshi(P37073)
Shrinidhi Mujumdar(P37074)
Shrinkhala Jain(P37075)
 Roles involved in IDFC and Mintzbergs Model

Each division i.e. IDFC capital, IDFC alternatives, IDFC mutual Fund and IDFC Finance is replica of
the organization. Information flow across division is minimal. However upward movement to
apex in organization is very frequent. The divisions here have independent tasks to perform.
 Reports Created in Tally

Sr.no Types of Reports Description

1. Balance sheet A balance sheet is a financial statement that

summarizes a company's assets, liabilities and
shareholders' equity at a specific point in time.

These three balance sheet segments with the

help of Tally give investors an idea as to what
the company owns and owes, as well as the
amount invested by shareholders.
2. Profit and loss a/c report A report in Tally showing account to which
incomes and gains are credited and expenses and
losses debited, so as to show the net profit or loss
over a given period.
3. Trial balance A trial balance is a list of all the general ledger
accounts (both revenue and capital) contained in
the ledger of a business. ...

Each nominal ledger account will hold either a

debit balance or a credit balance according to
the transactions
4. Day book Accounting book of original entriy in which
transactions are entered on the day they occur for
later posing to appropriate ledger
5. Statement of accounts The Statement of account is a document, issued
by a supplier to its customer, listing transactions
over a given period, normally monthly.

It will include details of invoices, payments

received and any credits approved with a
resultant balance payable by the customer.
6. Cash and fund flow This statement shows the inflow and outflow of
actual cash (or cash-like assets) from operating,
investing or financing activities.
"Fund flow" has two different meanings, one
for accounting purposes and one for investing
purposes.In tally it is for accounting purpose
7. Ratio analysis Ratio analysis is used to evaluate various
aspects of a company's operating and financial
performance such as its
 efficiency,
liquidity,
profitability
solvency.

The trend of these ratios over time is studied to

check whether they are improving or
deteriorating.
8. List of accounts A list of accounts (LOA) is a financial
organizational tool that provides a
completelisting of every account in an
accounting system.
9. Exception reports An exception report is a type of
summary report that identifies any events that
are outside the scope of what is considered a
normal range. They are:
Negative Stock
Negative Ledgers (including Negative Cash
Balance)
Overdue Receivables
Overdue Payables
Memorandum Vouchers
Reversing Journals
Optional Vouchers
10. Receivables and Payables Bills receivable & Bills Payable are bill of
exchange on which payment is expected to be
received at a later date or payment is due at a
future date .primarily used by Accounts
department.
11. Statutory Reportsand Statutory reporting is the mandatory submission
bank reconciliation of financial and non-financial information to a
statement government agency.

A bank reconciliation is the process of

matching the balances in an entity's accounting
records for a cash account to the corresponding
information on a bank statement.
 Information Matrix
Information matrix is an essential input for information system designing. The major parties
contributing to the success of the organization are identified along with their roles from the
hierarchy. The major positions in this case identified are Senior Director Project Finance,
Managing Partner and CEO IDFC Alternatives, CEO IDFC Capital, Vice Chairman and MD IDFC
Group and Group Head of Project Finance.

The major factors which determine the success of these positions are:

Role Success factors in processes involved

Senior Director of Project
Finance
Managing Partner and CEO of
IDFC Alternatives
CEO of IDFC Capital
Vice Chairman and MD of
IDFC Group
Group Head of project
finance
Creating and maintaining new clients, managing asset portfolio
effectively
Gaining respectable return on investment
Ensuring profitability of IDFC capital and providing information
to the group
Resource allocation according to needs to businesses,
improving efficiency of resource utilization
Allocating finances according to needs for department,
managing employee expectations and pay-offs

The role wise information matrix is as follows:

Role: Senior Director of Project Finance

Reported
Information from team of
Internal analysts in the form of reports.
Information in the form inputs
External from the clients of infrastructure
companies
Processed
Monitors work of analysts
regarding Deals, Projects, and
Asset portfolio
Manages key client
relationships within and across
sectors and structure loans
Role: Managing Partner and CEO of IDFC Alternatives
Reported
Information from employees
about infrastructure service
Internal
providers, equipment
manufacturers.
Information from the market
External regarding company's dynamics
and its capital appreciation
Role: CEO of IDFC Capital
Reported
Capturing information of
Internal current investment banking
services
Collecting information
regarding market trends
External
through client CEOs
Role: Vice Chairman and MD of IDFC Group
Reported
Information regarding the
correct conduct of business and
Internal
other resource requirements
from the head of each group
Information regarding market
leaders and potential acquiring
targets in Finance of
External
infrastructure projects
Processed
Taking investment decisions
and managing returns from
them
Restructuring the investment
decisions.
Processed
Generating pay based income
and contributing to profits of
IDFC
Information dissemination to
other groups of IDFC and
subsequent understanding of
strategic priorities
Processed
Formulating tactical strategy
and allocating resources after
accessing needs of different
business groups
Expanding its capabilities by
assessing market leader
qualities and expanding their
customer engagement activities
to generate multiple revenue
streams
Role: Group Head of project finance
Reported
Information including business
Internal performance of groups and
resource requirements
Information from HR department
about employees Key
External
Responsibility Areas,
Competency Assessment
Processed
Allocation of resources by need
assessment and formulation of
future strategies
Reviewing performance,
promotions and bonus
payment for the Team

Transactions Completed in Tally

Narration Owner Exchange Type Mode Service
Provider
INTEREST IDFC Service Online and Batch Debtors
INCOME
Treasury Owners of Service Online IDFC
treasury
Loans Issued Debtors Service Online IDFC
Received from IDFC Service Can be offline Debtors
debtors and online batch
Investment Customers Service Online IDFC
Banking and
Broking
Fixed Income IDFC Service Online Customers
Fees & Trading
Gains
HR Expenses Employees Service Online and batch IDFC
Non HR expenses Entity to whom Service Can be online IDFC
expense is to be and batch
paid
Loan Taken IDFC Service Online Entity from
whom loan is
taken
Payment To Creditors Service Can be offline IDFC
Creditors and online batch
Interest Expenses Creditors Service Online IDFC
 Information Systems
Functional Systems:

This represents the physical system of the organisation and proper identification of this system
is very much essential in order to have a successful identification of an information system in
particular and a control system in general.

The functional system in IDFC can be explained as follows:

Functional System

Actors Rules / Logics Process Events

Actors: The factors/ objects that affect the system directly can be classified as internal and
external actors.
Internal actors: Deputy managing director, Vice chairman, CEO, Group Heads
External actors: Government policy, competitors etc.
An essential aim of this exercise is to be able to demarcate the internal affairs of IDFC from the
external.
Rules: These rules are derived from well-defined manuals prepared by domain experts and they
facilitate capturing of events. Some of the rules for processes identified at IDFC can be listed as
follows:
270- degree feedback for employees
Policy advisory services and capacity building.
Processes: Rules are identified as the restrictions on the process and these will determine the
state of a system. Process includes various static and dynamic components. In the case of IDFC
these would be:
Static components: Products in terms of loans, equity financing.
Dynamic components: Customers or Investors. Dynamic components undergo changes over a
period of time. It is expected that these changes should not affect the rules and logic
implemented. There are three types of processes core processes, support processes, and
management processes. These processes in IDFC can be listed as follows:
Core processes(according to mission statement, and do not change very often): Project Finance
was IDFC core business.
Support processes(provide support to the core process): IDFC Alternatives, IDFC Capital
(Investment banking), IDFC Mutual Funds.
Management processes (oversee the core and support processes): Clearly defining rules and
logics for different processes and roles like evaluationprocesses forthe employee performance.
One of the major deliverables of a process is to manage transactions. A transaction is defined
to be an activity and/or a set of activities through which certain desired user-related services
are accomplished.

Events:An event is an input to the information system which is analysed through a pre-
determined audit trial and allows the event manager to assess the cause and effects. This audit
trial helps in taking corrective measures and the whole process helps the organization to take
effective decisions. A repository of events speculated by the analysts helped the IDFC
information system to be predictive and therefore, has helped managers to take correct (near
to accurate) decisions in a dynamic scenario.
Role of Information Systems in an organisation :