Presentation to OAUG — SIG Atlanta 21 -Oct-2005

Presentation to OAUG - SIG Atlanta 21 -Oct-2005

Inter – Company Transactions Confidential. All trademarks appearing herein belong to their respective owners. 2

Agenda Overview of Inter-Company Transactions Organization Structure Business case – Solution Confidential. All trademarks appearing herein belong to their respective owners. 3

Inter-company Transactions Movement of Goods : n Between Divisions belonging to Same Legal Entity n Across more than one Legal Entities within US n Across Many International Subsidiaries Single face to Customer (One Selling Company – Multiple Internal Supply Companies) n Selling Company Books Order & Raises Bills on Customer n Supply Company drop-ship goods directly to Customer warehouse. n Intercompany Billing between Selling and Supply company. Multiple Selling Companies – Single Supply Companies Multiple Selling Companies – Multiple Supply Companies Cross Charging for Goods & Services across Projects Inter-project Billing between projects owned by different legal entity. Intercompany Journals Shared Bank Accounts across Legal Entity : n To receive Customer payments n To disburse Supplier Payments Confidential. All trademarks appearing herein belong to their respective owners. 4

Business Case Single face to Customer n Single Selling Company – Multiple Supply Companies n Multiple Selling Companies – Multiple Supply Companies Confidential. All trademarks appearing herein belong to their respective owners. 5

Why Single Face to Customer ? 1. What the customer was seeing before…multiple legal entities, no single interface LE 1 2. Multiple businesses servicing a single customer order…time consuming internal negotiations Customer LE 2 LE 3 3. Multiple acquisitions…many faces to the customer. ITO / Application confusion etc. LE 4 LE 5 LE 6 LE 1 LE-2 LE-3 LE-4 LE-1 LE-2 LE-3 Customers LE-6 LE-4 LE-5 Customer desired a single ITO face…One Brand Confidential. All trademarks appearing herein belong to their respective owners. 6

New Simplified Organization / LE Structure “New” Organizational / Legal Entity Structure HR Primary Objectives Legal Parent Company Finance u Single Face to Customer u Compliant Legal Structure & Branding u Rationalize multiple USA Benefit Plans u Re-align people to operational owners u Single ITO Platform IT Leadership Commercial Statutory Entity - CSE (Selling Company – Customer facing) LE - 1 Product Line LE - 2 LE - 3 Product Line Home Base Statutory Entities - HBSE (Supplying Company – Fulfillment Center) Confidential. All trademarks appearing herein belong to their respective owners. Future Acquisitions (US / Non-US) 7

Operating Unit Inventory Organization Sub. Inventories Set of Books Shipment Legal Entity USD AR Invoice Set of Books Sales Order Oracle Solution : Multi – Org Structure & Transaction Flow (Within US) LE - US IC-AR Selling OU Supplying OU IC - AP Demand Average Cost Entity 1 Average Cost – Entity 2 Average Cost. Entity - 3 Sub - Inv Confidential. All trademarks appearing herein belong to their respective owners. Average Cost Entity - 4 Sub - Inv …. . 8

Oracle Solution : Multi – Org Structure & Transaction Flow (Intl. Outside US) Consolidation Set of Books Operating Unit Inventory Organization Sub. Inventories Non-USD Set of Books Intercompany AR LE - US Intercompany AP Selling OU Supplying OU LE – Non-US MRC USD Set of Books Shipment Legal Entity USD AR Invoice Set of Books Sales Order (Financial Consolidation + I/C Elimination) Supplying OU Average Cost Entity 1 Sub - Inv Demand Average Cost – Entity 2 Average Cost. Entity 3 Sub - Inv Average Cost Entity 4 Average Cost Entity 5 Sub - Inv Confidential. All trademarks appearing herein belong to their respective owners. 9

Oracle Solution : Process Flow Diagram Supply Chain Model - Selling Company (Order Management) Select One of the Fulfillment Org as Shipping Warehouse on Sales Order CSE – Selling OU Generate Progress Run Create Cycle Auto invoice Billfrom Create Inter. Receiver Project Import company Receiver Project to AP Invoice Customer Book Order HBSE – Ship Goods to Supplying Customer OU Manual Run Create Intercompany AR Invoice Automatic Custom Program updates the Inter-Co Inv Amount Import Inter. Company AP invoice Auto Invoice Import Intercompany Invoice Settlement & Elimination Manual or Automatic Confidential. All trademarks appearing herein belong to their respective owners. 10

Oracle Solution : Process Flow Diagram Manufacturing Model - Selling Company (Project Accounting) Select One of the Fulfillment Book Order Org as Shipping Warehouse on Sales Order CSE – Selling OU Book Order HBSE – Supplying OU Create Receiver Project Manual Create Receiver Project Generate Progress Bill Cycle From Receiver Project Accumulate Cost against Provider Project Automatic Generate Final Bill and Recognize Revenue Ship Goods to Customer Import Intercompany AP Invoice Generate an Intercompany AR invoice on CSE from Provider Project Intercompany Invoice Settlement & Elimination Manual or Automatic Confidential. All trademarks appearing herein belong to their respective owners. 11

Oracle Solution : Setup Details & Customization Details Selling Company Supply Chain Model Manufacturing Modules Involved : (OM, PA, INV, AR, AP) Module Involved : OM, AR, AP, INV ) Define Intercompany Customer & Supplier Create Intercompany Relationship in Inventory Module Setup Auto-accounting Rule in AR Setup AR Transaction Type and link to Order Transaction Type. Create Custom Program to calculate Transfer price and update AR Auto invoice Interface table. Define Intercompany Customer & Supplier Define Implementation option in PA (Internal Billing) Define Billing extension. (Optional) Set up Automatic Billing (Optional). Setup Auto-accounting Rule in PA Setup Auto-accounting Rule in AR Setup AR Transaction Type and link to Order Transaction Type. Define and link Receiver project & Provider project. (Required) Create custom program in AP to handle one to many Supplier relationship. Confidential. All trademarks appearing herein belong to their respective owners. 12

Operational Structure – Process Flow & Accounting Order Booking § CSE Books order from Customer No Accounting Entries Order Assignment (Internal Demand) § CSE Assigns order to appropriate HBSE business @ Established TP No Accounting Entries Make / Buy § HBSE makes or buys Parts Dr. Inventory (HBSE-LE) Cr. Cash (HBSE-LE) Ship to Customer • HBSE business drop-ships parts to Customer Warehouse. Dr. COGS (HBSE – LE) Cr. Inventory (HBSE-LE) Invoice to Customer • CSE raises Invoices to Customer. Dr. External Receivables (CSE-LE) Cr. External Revenue (CSE – LE) Intercompany AR Invoice • HBSE raises an Inter-company AR invoice Dr. Due From CSE (HBSE – LE) on CSE @ agreed Transfer Price. Cr. Internal Revenue (HBSE – LE) Intercompany AP Invoice • CSE creates an Inter-company AP invoice Dr. Internal COGS (CSE-LE) on HBSE @ agreed Transfer Price Cr. Due To HBSE (CSE – LE) Intercompany Settlement & Elimination • Intercompany Revenue (HBSE) is eliminated with COGS (CSE) • Due From & Due To Elimination a) I/C Revenue & COGS Elimtn b) DF/ DT Elimination Confidential. All trademarks appearing herein belong to their respective owners. 13

Contact Information Name : Hari Mundhra E-Mail : hari. mundhra@ge. com Phone : +1 -678 -844 -4062 www. genpact. com Confidential. All trademarks appearing herein belong to their respective owners. 14

Disclaimer This presentation was prepared exclusively for the benefit and internal use of Genpact in order to indicate, on a preliminary basis, the feasibility of a possible transaction or transactions and does not carry any right of publication or disclosure to any other party. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Genpact. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of Genpact. Confidential. All trademarks appearing herein belong to their respective owners. 15