A study on analysis of human capital valuation in cash management service industry Dr. Alamelu R., Ms. Meena L. Assistant Professor, MBA DepartmentFatima College (Autonomous), Madurai, Tamil Nadu, India. Abstract Organizations that fail to invest in their Human Capital and the next generation work place environment will face erosion of products and services as well as diminished capacity to compete globally as a result of growing employee malaise. Almost in many countries, the accounting principles stresses on physical assets like building, machinery, land, natural resources and inventory to be accounted for in Balance sheet, human capital has no place in Balance sheet. Thus Human Capital Management in an organisation calls for accounting of human value and communicating the same to the interested parties for true state of the business affairs. However even if human assets are not reported on the face of external financial statements, HRA can play a crucial role in internal managerial decision making, and HRA measures can be used to show that investments in a company’s human resources may result in long-term profit for the company. The present study aimed to cover the 50 cash management service companies in Tamil Nadu with volume of business less than Rs.200 million during the first three quarters of the current financial year (from April 2011 to December 2011). Primary data is collected through schedules from custodians of the fifty companies (10 from each company). The total number of custodians in all the fifty companies was 1240, of which 500 samples were selected using convenience sampling method for the study. The tools used for analysis were Percentage analysis, weighted average ranking method and Human resource Balance sheet using Lev and Schwartz Model (Present value of future earnings method). The study identified that the total investment of the sample industry in human resources values up to Rs.32.5 lakhs. The Balance sheet is shown with projected human resource value of Rs.1221.88 lakhs for the cash management industry. The researcher puts forth the suggestions to improve their monetary human resource value in the Balance sheet and steps to be taken to prevent loss of monetary human value due to absenteeism, deaths, turnover, etc. which is considered to be liability in the Balance sheet. To conclude the present study suggested that, the Human Resources are an indispensable but often neglected element is thus to be fore grounded into the service industrial arena for the betterment of the economy. Top Keywords Human Resource Accounting, human capital, HR balance Sheet. Top |