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1 10-Dec-2011 White Paper Vivek

Bhatia/Venkat

Kompella

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[Document Title]

NOTICE


2

Solution Development

Date: 10th Dec 11

Location: Bangalore

Speakers- Vivek Bhatia and Venkat Kompella *(Genpact)

Synergise India Localization and

Project Accounting

Table of Contents

About the speaker(s)

Project Based tax transactions (O2C and P2P)

Project Da Vinci


Infrastructure Industry( Key Challenges)

3

Questions

Genpact Overview


Key Resource profiles for Thermal

Speaker(s) Vivek Bhatia

Overall IT experience 12

Oracle Experience 11 Years

Skill Set Oracle Apps Financials and Projects

Oracle Corp Experience 3 years

Qualifications Bachelor Of Engineering

Masters if Business Administration ( Finance – Full Time)

Masters In Economics and

Masters in Finance and Control

Venkat Kompella*

Overall IT experience 14 Years

Oracle Experience 11 Years

Skill Set Oracle Apps Financials and Projects

Oracle Corp Experience 3 years

Qualifications Bachelor Of Technology

Masters in Business Administration ( Finance)

Project Management Professional (PMP) from PMI, USA

Classification: Genpact Internal© 2009 Copyright Genpact. All Rights Reserved.

Table of Contents



Project Da Vinci



5

Questions

Genpact Overview


6

“I have been impressed with the

urgency of doing. Knowing is

not enough; we must apply.”

- Leonardo da Vinci

What is Project da Vinci?


7 Project da Vinci is utilization of Oracle PA and India Localization features

Project da Vinci

• Enable new business models

• Services and Stock Sale

• Milestone and Rate based billing

• Multiple Ship To Locations

Project based EPC Contracts

Localization on Order to Cash

(Based on Bill To)

• Tax Rate based on type of Service

• Tax Compliance on regulatory rules for Ship to location

• Tax Calculation per India laws for Service and Spares

Best Practice Sharing

• Building block to overall tax requirements for India

• Configure India Localization for PA/PO/OM cycles

Localization on Procure to Pay

(Based on Receipt)

• Tax Rate based on Ship To Location for the project

• Tax Rate for Project Based Services Procurement

• Input Tax Credit


8

Tax Compliance for Project Based

transactions

Input Credit on Imports for Project

based transactions

VAT/Service Tax/Excise calculations (with surcharge)

Streamlined operations

Project da Vinci Goals

Controllership at Project Level

Classification: Genpact Internal

Table of Contents



Project Da Vinci



9

Questions

Genpact Overview

Revenue

Recovery

Project

Execution &

Control

Project Delivery

& Closure

Project Estimation

& Bidding

Private

Government

Infrastructure Industry – Key Challenges

Availability &

Cost of Input

Resources

Competitor &

Economic

Environment

Project

Management &

Cost Control

Government &

Regulatory

Influence

Rising input cost due to

Increase in Commodity

Prices Worldwide

Lack of Manpower

Skills

Outdated Technology

Availability of Financing

and lack of Liquidity

Increasing cost of Land

Government a major

customer, delays in

revenue recovery

Problems / Delays in

land acquisition

Environmental

Concerns

No clear regulatory

policy for the sector

Tough Economic

Environment due to

global recession

Increased competition

due to liberal FDI rules

Long gestation periods,

delays in projects due to

long procedures

Time & Cost Overruns

Resource Procurement

& Scheduling Challenge

Budget Formulation &

Periodic Review Data

Expenditure Reporting,

Apportionment &

Monitoring Information

India Taxes



11 Infrastructure Industry – Key Challenges contd.

• Projects spread in different location across different states

• Procurement of similar item from the same vendor for different

projects attract different tax structure based on project location

• Projects could offer same services but attract different rate structure

based on location (SEZ, state, tax concessions etc)

• Derivation of tax on procurement and sales is a manual process

Table of Contents



Project Da Vinci



12

Questions

Genpact Overview


13 Project Billing and Tax – Key touch points

• Is project billing taxable ?

• What transactions have been done on the project ?

• What is the Tax applicability of the transactions ?

• Is it Milestone based billing / expenditure based billing ?


14 Process Flow for Tax Calculation in O2C


15

Project Classifications to define Tax Categories


16

Project Customer – Ship To Location


17

Project Exempt from Tax


18 Auto Update of Taxes- Service Tax


19 Auto Update of Taxes- VAT on Project Invoice


20 Project Procurement Tax – Key touch points

• Tax applicability on Project Purchase. Is the project exempt form Input tax ?

• What tax classifications are applicable on Purchase ?

• Does the project have both Services and material procurement?

• CAPEX applicability on the project ?

• Supplier location and Ship to Location for Supplier- Project location ?


21 Process Flow for Tax Calculation in P2P

P2P India Local Tax Calculation

Pu

rch

asin

g

Yes Yes

Yes

No

No

No

(Project location and

supplier location in same

state)

Create Purchase

Order with Project

Distributions

Create Purchase

Order with Project

Distributions

Update zero tax

code on PO

Derive Service

Tax category

accordingly

Derive VAT Tax

category and

Excise Duty if

Applicable

Submit PO for

Approval

PO for Service

Procurement ?

EndEnd

Does the project

purchases attract tax?

Calculate Taxes

on PO lines

Disable tax

category / code

update on PO

Localization form

Derive applicable

CST and Excise

Duty if applicable


22 Project Based PO for Material and Services


24 Tax amounts by line


25

Questions ??

Table of Contents



Project Da Vinci



26

Questions

Genpact Overview


27 A Strong Legacy of Meeting Clients’ Process Needs

A UNIQUE UPBRINGING

• Started in 1997 as a GE business unit; business built from

the ground up

• Became an independent company in 2005

• Went Public on the NYSE in 2007 (Symbol: G)

A HISTORY OF INNOVATION

• First to introduce Six Sigma for process transitions

• First to introduce VirtualSM Captive Model

• First to introduce scientific approach to process

management - SEPSM

GENPACT TODAY

• A leader in managing business processes

• A focus on process effectiveness and business outcomes

• Projected $1.4 bn in 2009 business impact delivery

• Over 3000 processes managed for 175+ clients

• 37,000+ employees

• Operating centers in 13 countries, 25+ languages covered

• Strong financial performance

1997

2005

2009

Oracle ERP Suite | Oracle Database | Siebel | Hyperion + OBIEE

ERP

STRATEGY

Implementation/

Rollouts Upgrades Support

Manufacturing

Discrete

Process

BFS& I

Banking & FinSvcs

Insurance

Business Services

Telecom, Media

Hospitality

Oracle EAS Practice – An Overview

SIZE • Over 3,000 Oracle professionals

• Over 3.1 million days of Oracle

experience

EXPERIENCE • 160+ go-lives in 40+ countries

• Implemented and Supported

Oracle for aggregate revenue of

250 Billion USD

• Support more than 175 Oracle ERP

Instances

• 60% resources > 6 years of

industry experience

• > 80% resources trained in Lean,

Six Sigma, CMMi

EXPERTISE / SKILLS • Centers of Excellence (CoE)

dedicated for Industry Vertical

Solutions

• Oracle Gold Partner

• 24x7 maintenance & enhancement

capabilities

• Strong DNA of managing Program

Management Offices (PMO)



$14B

Consumer &

Industrial

Manufacturer

$8B

ETO

Turbine

Manufacturer

$2B

ETO

Gas Engine

Manufacturer

$1.5B

Sub-Sea

Drilling

Manufacturer

$2B

Avionics &

Display

Manufacturer

$250M

Furniture

Manufacturer

$12.7B

Automotive

Manufacturer

$3.6B

Hospitality

Loding

$16B

Cable &

Telecom

$12B Media

Company

$2.1B

Telecom

Services

$5B

Nulear

Energy

Construction

$6.4B

Software and

Technology

$1.2B

Staffing

Temp

Services

$15B

Consumer

Finance

Company

$23B

Commercial

Finance

Company

$500M

Project

Manufacturer

$1.3B Trading

Company

$1.8B

Information

Services

$2B

Commercial

Lending

$200M

Telecom

Equip

Manufacturer

$13B

Healthcare

Equipment

Manufacturer

$8B

Plastics

Molding

Manufacture

$15B

A&D

Manufacturer

$3B

Renewable

Energy

Manufacturer

$3B

ETO

Electronics

Manufacturer

$6B

ETO Engine

Manufacturer

$52B

Life Sciences

Sample ERP Client Profiles

http://www.google.com/imgres?imgurl=http://www.niot.net/blog-images/26_Apr/navistar-still-interested-in-acquiring-gm-medium-duty-trucks.jpg&imgrefurl=http://blog.niot.net/en/tag/navistar/&usg=__VbYMU_cylhJYl1HqvB6FNFYZe0o=&h=343&w=580&sz=59&hl=en&start=17&zoom=1&tbnid=zaM4ft7dc85ZzM:&tbnh=79&tbnw=134&ei=K9FKTv7GAuOrsAL97vDJCA&prev=/search?q=navistar&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.global-greenhouse-warming.com/images/GasTurbine400MW.jpg&imgrefurl=http://www.global-greenhouse-warming.com/gas-as-a-wedge-against-carbon-emissions.html&usg=___vb0weXNTi6sl2qCWFuJRoJVBrs=&h=327&w=425&sz=79&hl=en&start=3&zoom=1&tbnid=sDXRIJIX27opuM:&tbnh=97&tbnw=126&ei=19JKTuCbKKeLsQKB_tSlCA&prev=/search?q=gas+turbine&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://site.ge-energy.com/corporate/waukesha/index.htm

http://www.google.com/imgres?imgurl=http://farm3.static.flickr.com/2516/3702240518_a1cd63760b.jpg&imgrefurl=http://www.marineinsight.com/marine/subsea-drilling-the-what-why-and-how/&usg=__GTFeazg-xHCCKQ5HKsf3JfAAcnU=&h=332&w=500&sz=83&hl=en&start=10&zoom=1&tbnid=AGcofAEFKwEDHM:&tbnh=86&tbnw=130&ei=R9RKTunAN6eksQKt5tSjCA&prev=/search?q=subsea+drilling&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.kvfurnitureco.com/0_0_0_0_150_157_csupload_2941548.jpg?u=2743543475&imgrefurl=http://www.kvfurnitureco.com/Grandfather-Clocks.html&usg=__oFHHhNh4YEiuMv7TSltf4nDwbKI=&h=157&w=150&sz=9&hl=en&start=17&zoom=1&tbnid=QhrfuTSHjNMk9M:&tbnh=97&tbnw=93&ei=8uFKTtGkCI6FsgKr5vC9CA&prev=/search?q=K&V+furniture&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.o-digital.com/uploads/2227/2280-6/Mobile_Phone_P169_246.jpg&imgrefurl=http://www.o-digital.com/wholesale-products/2227/2280-2/Mobile-Phone-A1200-205020.html&usg=__n3R2nhOqgcbT4r2OypDQBh0Hhm0=&h=1171&w=750&sz=95&hl=en&start=4&zoom=1&tbnid=3zoH99ha3w7emM:&tbnh=150&tbnw=96&ei=5-VKTujIEePnsQLu-LTfCA&prev=/search?q=mobile+phone&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbs=isz:l&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.nevisblog.com/Photos/nevis-cable-communications.jpg&imgrefurl=http://nevisblog.com/tag/caribbean-cable&usg=__ksaEUQb0n5K0jl8WpFHrafs8csc=&h=200&w=200&sz=16&hl=en&start=24&zoom=1&tbnid=oFT6bAuJauA6UM:&tbnh=104&tbnw=104&ei=PcNKTvjXEo-GsgLH6KXrCA&prev=/search?q=cable+communications&start=21&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.lastminute-hoteldeals.com/images/FindHotels2x.jpg&imgrefurl=http://www.lastminute-hoteldeals.com/&usg=__dnbKxXdLwxTXa0Jlrfw8Fql8a90=&h=1125&w=1500&sz=189&hl=en&start=13&zoom=1&tbnid=Aqj6YF9nWsT8aM:&tbnh=113&tbnw=150&ei=2uRKTp3dDqGDsgKrhZXICA&prev=/search?q=hotel&um=1&hl=en&sa=X&rls=com.microsoft:en-securid&tbs=isz:l&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.cs.rochester.edu/research/vision/people/vision_people.jpg&imgrefurl=http://www.cs.rochester.edu/research/vision/people/&usg=__fD1EhUmHObvoezbBCxSvfF3sXok=&h=460&w=400&sz=33&hl=en&start=1&zoom=1&tbnid=kWH-rMcbhOQtMM:&tbnh=128&tbnw=111&ei=oNBKTofaPKmzsAK1q5m1CA&prev=/search?q=people&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.picture-newsletter.com/nuclear/nuclear-power-plant-9igh.jpg&imgrefurl=http://www.picture-newsletter.com/nuclear/index.htm&usg=__sLVkXSBm5UAkGuVZ1L3p1edAxFM=&h=793&w=1200&sz=94&hl=en&start=1&zoom=1&tbnid=a21WTIBMLPGQnM:&tbnh=99&tbnw=150&ei=4dVKTrbxN-qesQLB2uXKCA&prev=/search?q=nuclear+plant&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.computersoftwareleasing.com/bigstockphoto_Alien_C_D_396932.jpg&imgrefurl=http://www.computersoftwareleasing.com/WhoWeAre.htm&usg=__cth5XniJqmDYQMtoA5qG0OcnwUU=&h=1704&w=2272&sz=542&hl=en&start=4&zoom=1&tbnid=fwFvikJz3MqPMM:&tbnh=112&tbnw=150&ei=cORKTqawOKKJsgK8pIDGCA&prev=/search?q=computer+software&um=1&hl=en&sa=X&rls=com.microsoft:en-securid&tbs=isz:l&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.stockmarketinvesting.com/wp-includes/images/nasdaq-quotes.jpg&imgrefurl=http://www.stockmarketinvesting.com/&usg=__0B81bT6nOoTQhAj1KPnW_gc_qak=&h=300&w=400&sz=26&hl=en&start=6&zoom=1&tbnid=3Tp1IyDmxyJO3M:&tbnh=93&tbnw=124&ei=JMlKTpzHBvOBsgK78bihCA&prev=/search?q=stock+market&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://scm-l3.technorati.com/10/04/05/11339/CreditReportIllustration.jpg&imgrefurl=http://technorati.com/business/finance/article/credit-report-news/&usg=__FXCAIkNvwZ6AtzpOSAlyRcIXc2A=&h=885&w=1225&sz=375&hl=en&start=1&zoom=1&tbnid=ncGMRj4L5iHIrM:&tbnh=108&tbnw=150&ei=V-ZKTvSWMovFsQLfx-28CA&prev=/search?q=credit+report&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbs=isz:l&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.lamit.ro/images/satellite-dish-lamit-hub.jpg&imgrefurl=http://www.lamit.ro/two-way-satellite-internet-services.htm&usg=__Qf69__S2YHO9B179apxRyEIz-e4=&h=250&w=302&sz=14&hl=en&start=8&zoom=1&tbnid=UJre_pZeSZRQrM:&tbnh=96&tbnw=116&ei=nudKTovVL4yisQK3t8i5CA&prev=/search?q=satellite&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.debtkid.com/images/mytwocents.jpg&imgrefurl=http://www.debtkid.com/my-take-on-lending-clubs-sec-registration&usg=__YcDKVEpL0RdwNvl0gsStRBUGSfM=&h=326&w=490&sz=61&hl=en&start=13&zoom=1&tbnid=LB7SxdiMGOs_vM:&tbnh=86&tbnw=130&ei=c89KTvjpAqGNsAL55eXWCA&prev=/search?q=lending&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.herzogcompanies.com/Gallery/Railroad Construction/DART Construction 2.JPG&imgrefurl=http://www.herzogcompanies.com/photo_gallery_railroad_construction.php&usg=__vZSqPpiV-GRIelj2RR2TFmda3gs=&h=338&w=450&sz=191&hl=en&start=14&zoom=1&tbnid=qdSqrb8w3vdjvM:&tbnh=95&tbnw=127&ei=AMZKTqymFOfLsQLJ4pXDCA&prev=/search?q=railroad+construction&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://cf.ltkcdn.net/save/images/std/29929-425x319-Pfizer_drugs.jpg&imgrefurl=http://save.lovetoknow.com/Pfizer_Discount_Drugs&usg=__PDtMdRw7VgGVRiPjK9ruLPRlJYU=&h=319&w=425&sz=21&hl=en&start=15&zoom=1&tbnid=8kP7Bx5ZbO968M:&tbnh=95&tbnw=126&ei=vsdKToH6EpSFsALAmc3QCA&prev=/search?q=PFIZER+DRUGS&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

http://www.google.com/imgres?imgurl=http://www.infrastructurist.com/wp-content/uploads/obama-high-speed-rail-plans.jpg&imgrefurl=http://www.infrastructurist.com/2009/05/19/a-vibrant-us-train-industry-would-employ-more-people-than-car-makers-do-now/&usg=__SnFTQqa7KiiUps9NNsHb1CHye7g=&h=413&w=620&sz=44&hl=en&start=3&zoom=1&tbnid=M9BJ31S9-5HUIM:&tbnh=91&tbnw=136&ei=w8RKToz-OIaIsQLqxpXNCA&prev=/search?q=train&um=1&hl=en&sa=N&rls=com.microsoft:en-securid&tbm=isch&um=1&itbs=1

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