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A Project Report On

Employee Reimbursement Programme in Tata Teleservices Limited, Jaipur


For

Effective Business Operation

In partial fulfillment of the degree of B.B.A.(Bachelor of Business Administration)

UNIVESITY ! "A#AST$AN %&'%(%&') Su*mitted to+ -rs. E.ta Sharma Asst. professor (012E) Su*mitted *,+ /eepshi.ha "athore B.B.A. )rd ,ear

Parishkar College of Global Excellence (PCGE) ( Mansarover, aip!r)


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Preface

This report represents the work done during the Internship which constitute an important part of BBA degree. The objective of the training is to enable the trainee to observe management problems and situations in a real life organization and to report the facts, observation and inferences. As my area of interest is Finance, a project was provided to me titled Detailed Study on Employee Reimbursement programe in Tata Teleservices Limited, Jaipur for Effective Business Operation , so that I can understand and learn the Financial Flow of Money Out of the Company in Telecom World. I did my Internship in Tata Teleservices Limited, Jaipur under the guidance of Mr. Sanjeev Mittal (Executive, Finance). I am pleased to work in this esteemed organization. The main emphasis of this training program was to develop awareness about the telecom industry, so that we can understand its process, procedures, working conditions and its future prospect. I have tried my best to make this report a reader friendly and also did my level best to fulfill the objectives of the summer training.

Deepshikha Rathore

ACKNOWLEDGEMENT
This report titled as Detailed Study on Employee Reimbursement programme in Tata Teleservices Limited, Jaipur for Effective Business Operation is the outcome of my research project in TATA INDICOM. It was a formidable task, but without the active guidance and help within and outside the organization, it would not have diluted into research project. I express my heartfelt gratitude to Mr. Sanjeev Mittal for their guidance and encouragement without which satisfactory completion of the project was not possible. I am indebted to all those who have been helpful throughout the process of writing this Report. I also acknowledge the blessings of my parents and loved ones which always serve as a source of inspiration to me.

Deepshikha Rathore

Contents
'. rgani3ation a. Introduction *. 1orporate -ission and Values c. 2roup of 1ompanies

%. Introduction of Telecom Industr,

). 1ompan, 0rofile a. Introduction *. Structure of 1ompan, c. /epartments d. 0roducts and Ser4ices

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*ser4ation a. !inancial Strategies i. Introduction ii. !unctions iii. "oles and "esponsi*ilit, i4. !inance 0ac.age for accounting in SA0 *. "eim*ursement

i. "eim*ursement 0olicies ii. "eim*ursement 0rocess c. "esearch -ethodolog, d. /ata Interpretation

6. 1onclusion

7. "ecommendations

8. Bi*liograph,

Organization
The "ata Gro!p is a multinational conglomerate *ased in -um*ai9 India. In terms of mar.et capitali3ation and re4enues9 Tata 2roup is the largest pri4ate corporate group in India and has *een recogni3ed as one of the most respected companies in the :orld o4er the ,ears.It has interests in steel9 automo*iles9 information technolog,9 communication9 po:er9 tea and hotels. The Tata 2roup has operations in more than ;6 countries across si< continents and its companies e<port products and ser4ices to ;& nations. The Tata 2roup comprises =; companies in se4en *usiness sectors9 %8 of :hich are pu*licl, listed. 76.;> of the o:nership of Tata 2roup is held in charita*le trusts. 1ompanies :hich form a ma?or part of the group include Tata Steel9 1orus
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Steel9 Tata -otors9 Tata 1onsultanc, Ser4ices9 Tata Tea9 Titan Industries9 Tata 0o:er9 Tata 1ommunications9 Tata Teleser4ices9 Tata Auto1omp S,stems @imited and the Ta? $otels. The group ta.es the name of its founder9 #amset?i Tata9 a mem*er of :hose famil, has almost in4aria*l, *een the chairman of the group. The current chairman of the Tata group is "atan Tata9 :ho too. o4er from #. ". /. Tata in '==' and is currentl, one of the ma?or international *usiness figures in the age of glo*alit,. The compan, is currentl, in its fifth generation of famil, ste:ardship.

#$"RO%&C"#O$
The Tata group comprises o4er '&& operating companies in se4en *usiness sectors+ communications and information technolog,9 engineering9 materials9 ser4ices9 energ,9 consumer products and chemicals. The group has operations in more than ;& countries across si< continents9 and its companies e<port products and ser4ices to ;6 countries. The total re4enue of Tata companies9 ta.en together9 :as A'&&.&= *illion (around "s58698%' crore) in %&''('%9 :ith 6; percent of this coming from *usiness outside India. Tata companies emplo, o4er 56&9&&& people :orld:ide. The Tata name has *een respected in India for more than '5& ,ears for its adherence to strong 4alues and *usiness ethics. E4er, Tata compan, or enterprise operates independentl,. Each of these companies has its o:n *oard of directors and shareholders9 to :hom it is ans:era*le. There are )% pu*licl, listed Tata enterprises and the, ha4e a com*ined mar.et capitalisation of a*out A=).5% *illion (as on -a, %9 %&'))9 and a shareholder *ase of ).; million. The ma?or Tata companies are Tata Steel9 Tata

-otors9 Tata 1onsultanc, Ser4ices (T1S)9 Tata 0o:er9 Tata 1hemicals9 Tata 2lo*al Be4erages9 Tata Teleser4ices9 Titan9 Tata 1ommunications and Indian $otels. Tata Steel is among the top ten steelma.ers9 and Tata -otors is among the top fi4e commercial 4ehicle manufacturers9 in the :orld. T1S is a leading glo*al soft:are compan,9 :ith deli4er, centres in the US9 UB9 $ungar,9 Bra3il9 Urugua, and 1hina9 *esides India. Tata 2lo*al Be4erages is the second(largest pla,er in tea in the :orld. Tata 1hemicals is the :orldCs second( largest manufacturer of soda ash and Tata 1ommunications is one of the :orldCs largest :holesale 4oice carriers. In tandem :ith the increasing international footprint of Tata companies9 the Tata *rand is also gaining international recognition. Brand !inance9 a UB(*ased consultanc, firm9 4alued the Tata *rand at A';.'7 *illion and ran.ed it )=th among the top 6&& most 4alua*le glo*al *rands in their Brand!inanceD 2lo*al 6&& %&') report. In %&'&9 BusinessWeek maga3ine ran.ed Tata '8th among the E6& -ost Inno4ati4e 1ompaniesE list. !ounded *, #amset?i Tata in ';7;9 TataCs earl, ,ears :ere inspired *, the spirit of nationalism. It pioneered se4eral industries of national importance in India+ steel9 po:er9 hospitalit, and airlines. In more recent times9 its pioneering spirit has *een sho:cased *, companies such as T1S9 IndiaCs first soft:are compan,9 and Tata -otors9 :hich made IndiaCs first indigenousl, de4eloped car9 the Indica9 in '==; and recentl, un4eiled the :orldCs most afforda*le car9 the Tata Nano. Tata companies ha4e al:a,s *elie4ed in returning :ealth to the societ, the, ser4e. T:o(thirds of the eFuit, of Tata Sons9 the Tata promoter holding compan,9 is held *, philanthropic trusts that ha4e created national institutions for science and technolog,9 medical research9 social studies and the performing arts. The trusts also pro4ide aid and assistance to non(go4ernment organisations :or.ing in the areas of education9 healthcare and li4elihoods. Tata companies also e<tend social :elfare acti4ities to communities around their industrial units. The com*ined de4elopment( related e<penditure of the trusts and the companies amounts to around ) percent of the groupEs net profits in %&''.

2oing for:ard9 Tata is focusing on ne: technologies and inno4ation to dri4e its *usiness in India and internationall,. The Nano car is one e<ample9 as is the E.a supercomputer (de4eloped *, another Tata compan,)9 :hich in %&&; :as ran.ed the :orldCs fourth fastest. Anchored in India and :edded to traditional 4alues and strong ethics9 Tata companies are *uilding multinational *usinesses that :ill achie4e gro:th through e<cellence and inno4ation9 :hile *alancing the interests of shareholders9 emplo,ees and ci4il societ,.

Corporate Mission an' (al!es

Purpose
At the Tata group :e are committed to impro4ing the Fualit, of life of the communities :e ser4e. Ge do this *, stri4ing for leadership and glo*al competiti4eness in the *usiness sectors in :hich :e operate. ur practice of returning to societ, :hat :e earn e4o.es trust among consumers9 emplo,ees9 shareholders and the communit,. Ge are committed to protecting this heritage of leadership :ith trust through the manner in :hich :e conduct our *usiness.

Mission

To *e a competiti4e 4alue pro4ider in international *usiness for 2roup companies and all our partners.

Vision
ur 4ision is to set the standards in our chosen *usiness and mar.ets9 enriching life *, ena*ling relia*le and afforda*le communication an,time9 an,:here.

Core Values
Tata has always been values-driven. These values continue to direct the growth and business of Tata co !anies. The five core Tata values under!inning the way we do business are" #ntegrit) Ge must al:a,s conduct our *usiness :ith fairness9 honest, and transparenc,9 so that :e can at all times stand pu*lic scrutin,. Ge :ill ne4er undermine the heritage of trust that comes :ith the Tata *rand. *pirit of Entreprene!rship Ge :ould encourage inno4ati4e ideas for indi4idual and organi3ational de4elopment. This thin.ing :ould *e fostered9 encouraged and recogni3ed for enhancing *usiness. Ge :ould ta.e delight in stretching our goals and each of us :ould ha4e a sense of o:nership and responsi*ilit, for all our *usiness dealings.

Agilit) Ge :ill encourage an organi3ational culture and structures that ha4e capacit, for change. !le<i*ilit, and adapta*ilit, :ill *e critical to our operations. Ge :ill aim for nim*le9 fle<i*le and customi3ed responses at all times to all our sta.eholders. Passion for Excellence All our acti4ities must *e dri4en *, a passion for e<cellence. Ge must stri4e9 uncompromisingl,9 to achie4e the highest standards in our dail, :or. and in the Fualit, of the goods and ser4ices :e offer. Ge :ould endea4our to achie4e E*est in classE status in all our processes and results. &nit) Ge must :or. cohesi4el, :ith our colleagues9 customers and partners around the :orld9 le4eraging s,nergies and *uilding strong net:or.s *ased on colla*oration and mutual cooperation.

Gro!p of Co+panies
Engineering

TA@ -anufacturing Solutions Tata Auto1omp S,stems @imited (TA1 ) H its su*sidiaries9 auto(component manufacturing

Tata -otors (formerl, Tata Engineering and @ocomoti4es 1ompan, @td (TE@1 ))9 manufacturer of commercial 4ehicles (largest in India) and passenger cars

#aguar and @and "o4er Tata 0ro?ects T1E 1onsulting Engineers Telco 1onstruction EFuipment 1ompan,

1$

T"! Bul. -aterial $andling EFuipment H S,stems and 0ort H Yard EFuipments. Voltas9 consumer electronics compan,

Energy

Tata 0o:er is one of the largest pri4ate sector po:er companies. It supplies po:er to -um*ai9 the commercial capital of India and parts of Ne: /elhi. 2hatra? 0o:er Supplier @td. is one of the *ig supporter of the Tata 0o:er.

Chemicals

"allis India Tata 0igments Tata 1hemicals9 headFuartered in -um*ai9 India9 Tata 1hemicals has the largest single soda ash production capacit, plant in India. Since %&&7 Tata 1hemicals has o:ned Brunner -ond9 a United Bingdom(*ased chemical compan, :ith operations in Ben,a and the Netherlands.

Services

The Indian $otels 1ompan, Tata $ousing /e4elopment 1ompan, @td. (T$/1) Tata(AI2 2eneral Insurance9 a ?oint 4enture :ith AI2 Tata(AI2 @ife Insurance9 a ?oint 4enture :ith AI2 Tata Asset -anagement Tata Economic 1onsultanc, Ser4ices Tata !inancial Ser4ices

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Tata 1apital Tata In4estment 1orporation Tata Iualit, -anagement Ser4ices Tata Share "egistr, Tata Strategic -anagement 2roup (TS-2) is one of the largest consulting firms in South Asia.

Tata Ser4ices

Consumer Pro!ucts

Tata Salt9 I Sha.ti Salt9 Tata Salt @ite Tata 1eramics Infiniti "etail Tata Tea @imited is the :orldEs second largest manufacturer of pac.aged tea and tea products. It also o:ns the Tetle, *rand of tea sold primaril, in Europe.

Titan Industries manufacturers of Titan :atches Trent (Gestside) Tata S., Tata International @td ( @eather 0roducts /i4ision TanishF ?e:eler,

"nformation systems an! communications

1omputational "esearch @a*oratories


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IN1AT Nelco Nelito S,stems Tata Business Support Ser4ices (formerl, Ser:i3sol) Tata 1onsultanc, Ser4ices @td. (T1S) is AsiaEs largest soft:are compan, :ith %&&7(&8 re4enues *eing o4er USA 6.8 *n.

Tata El<si is another Soft:are and Industrial design compan, of the Tata sta*le. Based in Bangalore and Tri4andrum. ne of the leading companies in the animation industr, of India.

Tata Interacti4e S,stems Tata Technologies @imited Tata Teleser4ices Tatanet Tata 1ommunications9 formerl, VSN@9 the Indian telecom giant9 :as acFuired in %&&%. Tata(o:ned VSN@ acFuired Teleglo*e in %&&6.

Philanthro#y an! nation $uil!ing


The Tata 2roup has helped esta*lish and finance numerous Fualit, research9 educational and cultural institutes in India. It is the one of the leading and enormousl, respected philanthropic corporate entit, in India. The Tata 2roup :as a:arded the 1arnegie -edal of 0hilanthrop, in %&&8 in recognition of the groupEs long histor, of philanthropic acti4ities. Some of the institutes esta*lished *, the Tata 2roup are+

Tata Institute of !undamental "esearch


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Tata Institute of Social Sciences Indian Institute of Science National 1entre for 0erforming Arts Tata -anagement Training 1entre Tata -emorial $ospital Tata Trusts9 a group of philanthropic organi3ations run *, the head of the *usiness conglomerate Tata Sons.

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INTRODUCTION OF TELECOM INDUSTRY


The Indian Telecommunications net:or. :ith ''&.&' million connections is the fifth largest in the :orld and the second largest among the emerging economies of Asia. Toda,9 it is the fastest gro:ing mar.et in the :orld and represents uniFue opportunities for U.S. companies in the stagnant glo*al scenario. The total su*scri*er *ase9 :hich has gro:n *, 5&> in %&&69 is e<pected to reach %6& million in %&&8. According to Broad*and 0olic, %&&59 2o4ernment of India aims at = million*road*and connections and '; million internet connections *, %&&8. The :ireless su*scri*er *ase has ?umped from )).7= million in %&&5 to 7%.68 million in !Y%&&5(%&&6. In the last ) ,ears9 t:o out of e4er, three ne: telephone su*scri*ers :ere :ireless su*scri*ers. 1onseFuentl,9 :ireless no: accounts for 65.7> of the total telephone su*scri*er *ase9 as compared to onl, 5&> in %&&). Gireless su*scri*er gro:th is e<pected to *,pass %.6 million ne: su*scri*ers per month *, %&&8. The :ireless technologies currentl, in use are 2lo*al S,stem for -o*ile 1ommunications (2S-) and 1ode /i4ision -ultiple Access (1/-A). There are primaril, = 2S- and 6 1/-A operators pro4iding mo*ile ser4ices in '= Telecom circles and 5 metro cities9 co4ering %&&& to:ns across the countr,.

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,#*"OR- O. #$%#A$ "E/ECOMM&$#CA"#O$*


Evol!tion of the industr,0#+portant Milestones %ear 1231 !irst operational land lines :ere laid *, the go4ernment near 1alcutta (seatof British po:er) 1221 Telephone ser4ice introduced in India 1224 -erger :ith the postal s,stem 1564 !ormation of Indian "adio Telegraph 1ompan, (I"T) 1546 -erger of ET1 and I"T into the Indian "adio and 1a*le 1ommunication 1ompan, (I"11) 1578 Nationali3ation of all foreign telecommunication companies to form the 0osts9 Telephone and Telegraph (0TT)9 a monopol, run *, the go4ernmentEs -inistr, of 1ommunications 1523 /epartment of Telecommunications (/ T) esta*lished9 an e<clusi4e pro4ider of domestic and long( distance ser4ice that :ould *e its o:n regulator (separate from the postal s,stem) 1529 1on4ersion of / T into t:o :holl, go4ernment(o:ned companies+ the Videsh Sanchar Nigam @imited (VSN@) for international telecommunications and -ahanagar Telephone Nigam @imited (-TN@) for ser4ice in metropolitan areas. Telecom "egulator, Authorit, of India created. 1555 1ellular Ser4ices are launched in India. Ne: National Telecom 0olic, is adopted. 6::: /oT *ecomes a corporation9 BSN@

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MA OR P/A-ER* #$ "E/ECOMM&$#CA"#O$ *EC"OR

#n'ia;s teleco++!nication net<ork is the second largest in the :orld *ased on the total num*er of telephone users (*oth fi<ed and mo*ile phone). It has one of the lo:est call tariffs in the :orld ena*led *, the mega telephone net:or.s and h,per(competition among them. It has the :orldEs third(largest Internet user(*ase :ith o4er ')8 million as of #une %&'%. -a?or sectors of the Indian telecommunication industr, are telephon,9 internet and tele4ision *roadcasting. Telecommunication in India has greatl, *een supported *, the INSAT s,stem of the countr,9 one of the largest domestic satellite s,stems in the :orld. India possesses a di4ersified communications s,stem9 :hich lin.s all parts of the countr, *, telephone9 Internet9 radio9 tele4ision and satellite.

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*tr!ct!re Of #n'ian "eleco++!nication #n'!str)(source+/HB research)

-a?or telecom ser4ice pro4iders in present scenario are as follo:ed+

P&=/#C *EC"OR

=harat *anchar $iga+ /i+ite'


=*$/ is an Indian state(o:ned telecommunications compan, headFuartered in Ne: /elhi9 India. It is the largest pro4ider of fi<ed telephon, and fourth largest mo*ile telephon, pro4ider in India9 and is also a pro4ider of *road*and ser4ices. $o:e4er9 in recent ,ears the compan,Es re4enue and mar.et share plunged into hea4, losses due to intense competition in Indian telecommunications sector. BSN@ is IndiaEs oldest and largest communication ser4ice pro4ider (1S0). It had a customer *ase of =6 million as of #une %&''. It has footprints throughout India e<cept for the metropolitan cities of -um*ai and Ne: /elhi9 :hich are managed *, -ahanagar Telephone Nigam (-TN@).

Mahanagar "elephone $iga+ /i+ite' (M"$/)


-TN@ is a state(o:ned telecommunications ser4ice pro4ider in the metro cities of -um*ai and Ne: /elhi in India and in the island nation of -auritius in Africa. The compan, had a monopol, in -um*ai and /elhi until '==%9 :hen the telecom sector :as opened to other ser4ice pro4iders. JTransparenc, ma.es us differentJ is the motto of the compan,. The 2o4ernment of India currentl, holds 67.%6> sta.e in the compan,. In recent ,ears9 -TN@ has *een losing re4enue and mar.et share hea4il, due immense competition in the Indian telecom sector.

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=*$/ 0 M"$/ Merger Plans


n %) !e*ruar, %&''9 The /epartment of Telecommunications (/oT) said it :anted to re4i4e a proposal for the merger of state(o:ned operators BSN@ and -TN@. In its draft plan9 the department :hile sho:ing concern o4er the deteriorating performance of BSN@ and -TN@ said that BSN@ and -TN@ should *e merged as the, ha4e complimentar, operations and can com*ine their strengths for s,nergies. /oT said the go4ernment should set up a multi(sta.eholder committee to de4elop a restructuring plan for *oth firms. The committee should ha4e mem*ers from pu*lic enterprises9 the /oT9 department of IT and ministr, of finance. $o:e4er9 the BSN@Es staff unions are opposing this merger tooth and nail realising that -TN@ is in dire state and need help of its *ig *rother9 BSN@9 to alle4iate itself from getting into red *alance sheet. -TN@ in spite of ha4ing its operations in t:o *ig metro cities 4i3. Ne: /elhi H -um*ai is realising cascading fall in re4enue and profits for the past '& successi4e ,ears. The telecommunication operators should focus on enterprise *usiness9 ser4ices to go4ernment and the pu*lic sector9 4alue(added ser4ices and technologies li.e )29 the department recommends.

PR#(A"E *EC"OR A#R"E/

=harti

Airtel

/i+ite'9

commonl,

.no:n

as

Airtel9

is

an

Indian

multinational

telecommunications ser4ices compan, headFuartered at Ne: /elhi9 India. It operates in %& countries across South Asia9 Africa and the 1hannel Islands. Airtel has 2S- net:or. in all countries in :hich it operates9 pro4iding %29 )2 and 52 ser4ices depending upon the countr, of operation. Airtel is the :orldEs third largest mo*ile telecommunications compan, :ith o4er %7' million su*scri*ers across %& countries as of August %&'%. K5L It is the largest cellular ser4ice pro4ider in India9 :ith ';).7' million su*scri*ers as of No4em*er %&'%.K6L Airtel is the third

1#

largest in(countr, mo*ile operator *, su*scri*er *ase9 *ehind 1hina -o*ile and 1hina Unicom. Airtel is the largest pro4ider of mo*ile telephon, and second largest pro4ider of fi<ed telephon, in India9 and is also a pro4ider of *road*and and su*scription tele4ision ser4ices. It offers its telecom ser4ices under the airtel *rand9 and is headed *, Sunil Bharti -ittal. Bharti Airtel is the first Indian telecom ser4ice pro4ider to achie4e 1isco 2old 1ertification

(O%A.O$E

(o'afone Gro!p Plc is a British multinational telecommunications compan, headFuartered in @ondon and :ith its registered office in Ne:*ur,9 Ber.shire. It is the :orldEs second(largest mo*ile telecommunications compan, measured *, *oth su*scri*ers and %&'' re4enues (in each case *ehind 1hina -o*ile)9 and had 5)= million su*scri*ers as of /ecem*er %&''. Vodafone o:ns and operates net:or.s in o4er )& countries and has partner net:or.s in o4er 5& additional countries. Its Vodafone 2lo*al Enterprise di4ision pro4ides telecommunications and IT ser4ices to corporate clients in o4er 76 countries. Vodafone also o:ns 56> of Veri3on Gireless9 the largest mo*ile telecommunications compan, in the United States measured *, su*scri*ers. Vodafone has a primar, listing on the @ondon Stoc. E<change and is a constituent of the !TSE '&& Inde<. It had a mar.et capitalisation of appro<imatel, M;=.' *illion as of 7 #ul, %&'%9 the third(largest of an, compan, listed on the @ondon Stoc. E<change. It has a secondar, listing on NAS/AI.

2$

#%EA Cell!lar
It is a pu*licl, listed compan,9 ha4ing listed on the Bom*a, Stoc. E<change (BSE and the National Stoc. E<change (NSE) in -arch %&&8. rissa and Idea 1ellular is a leading 2S- mo*ile ser4ice operator :ith pan India licenses. Gith a customer *ase of o4er )7 million in '6 ser4ice areas9 operations are soon e<pected to start in potential.
%&'( )ellular is !art of the (ditya *irla +rou!, %ndia-s first truly ultinational cor!oration. The grou! o!erates in 25 countries, and is anchored by over 1$$,$$$ e !loyees belonging to 25 nationalities. The +rou! has been ad.udged -The *est ' !loyer in %ndia and a ong the To! 2$ in (siaby the /ewitt-'cono ic Ti es and 0all 1treet 2ournal 1tudy 2$$7.

Tamil Nadu(the first steps in pro4iding pan India ser4ices co4ering o4er =&> of IndiaEs telephon,

%dea leads all other teleco

o!erators in %ndia in the 345 63obile 4u ber 5ortability7 race, with

a net gain of 1$,31,38$ subscribers as on 31 (ugust 2$11.

=P/ Mobile (/oop Mobile)


/oop Mobile9 usuall, referred to as /OOP and formerl, .no:n as =P/ Mobile9 is a mo*ile phone ser4ice pro4ider in India. It offers *oth prepaid and postpaid 2S- cellular phone co4erage in Assam9 Bol.ata9 North East9 -um*ai9 -adh,a 0radesh9 $ar,ana9 after recei4ing a license to operate across %' telecom circles *, /oT B0@ -o*ile 1ommunications9 esta*lished in '==59 :as the IndiaCs first mo*ile net:or. operator. It *egan its operations in '==6. $o:e4er9 B0@ -o*ile :as renamed to /oop Mobile in -arch %&&=9 follo:ing the e<pir, of its *rand(use agreement :ith the T02 Nam*iar(o:ned B0@ 2roup. $a4ing consistentl, met and e<ceeded T"AI *enchmar.s9 @oop -o*ile is no: IS
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rissa9 0un?a*9 "a?asthan

=&&'+%&&;

certified. The Bhaitan $olding 2roup too. o:nership control in %&&6. @oop -o*ile has completed o4er '7 ,ears of ser4ice and toda, has o4er ) million su*scri*ers.

Reliance Co++!nications (for+erl) Reliance #nfoco++)

Reliance Co++!nications /t'> (commonl, called RCOM) is an Indian *road*and and telecommunications compan, headFuartered in Na4i -um*ai9 India. "1 - is the :orldEs '6th largest mo*ile phone operator :ith o4er '6& million su*scri*ers and IndiaEs one of the largest telecom operator in India9 onl, after Bharti Airtel and V /A! NE IN/IA. Esta*lished on %&&59 a su*sidiar, of the "eliance 2roup. The compan, has fi4e segments+ Gireless segment includes :ireless operations of the compan,N *road*and segment includes *road*and operations of the compan,N 2lo*al segment include national long distance and international long distance operations of the compan, and the :holesale operations of its su*sidiariesN In4estment segment includes in4estment acti4ities of the 2roup companies9 and customer care acti4ities and direct(to(home (/T$) acti4ities. It ran.s among the top 6 telecommunications companies in the :orld *, num*er of customers in a single countr,. "eliance 1ommunications corporate clientele includes %9'&& Indian and multinational corporations9 and o4er ;&& glo*al9 regional and domestic carriers. The compan, has esta*lished a pan(India9 ne<t(generation9 integrated (:ireless and :ireline)9 con4ergent (4oice9 data and 4ideo) digital net:or. that is capa*le of supporting ser4ices spanning the entire communications 4alue chain9 co4ering o4er %59&&& to:ns and 7&&9&&& 4illages. "eliance 1ommunications o:ns and operates the ne<t(generation I0(ena*led connecti4it, infrastructure9K%L comprising o4er '=&9&&& .ilometers of fi*er optic ca*le s,stems in India9 USA9 Europe9 -iddle East and the Asia 0acific region. ther segment consists of the

"A"A #n'ico+

22

"ata Co++!nications /i+ite' N (formerl, (*$/) is an Indian glo*al telecommunications compan, located in -um*ai. It o:ns a su*marine ca*le net:or.9 a Tier(' I0 net:or.9 and also rents data center and colocation space. It operates IndiaEs largest data center in 0une. Tata 1ommunications acFuired Teleglo*e9 a compan, *ased in 1anada9 and /ishnet/S@9 an Indian compan,9 and is the largest shareholder in South African operator Neotel. Tata 1ommunications currentl, has a ca*le net:or. of more than %)69&&& .ilometers. It :as founded as VSN@ (Videsh Sanchaar Nigam @imited) in '=;7. VSN@ :as the first Indian 0SU to *e listed in the NYSE in %&&&. In %&&% Tata 1ommunications acFuired a 56> sta.e in VSN@. Then in %&&5 VSN@ International 9 the international arm of VSN@9 :as launched. n ') !e*ruar, %&&; VSN@9 formerl, o:ned *, the 2o4ernment9 :as ta.en o4er *, the Tata 2roup and renamed Tata 1ommunications @td. In %&&= Tata 1ommunications and TY1 telecommunications complete T2N(intra Asia ca*le s,stem.

A#RCE/

Aircel gro!p is an Indian mo*ile net:or. operator headFuartered in 1hennai9 that pro4ides :ireless 4oice9 messaging and data ser4ices in India. It is a ?oint 4enture *et:een -a<is 1ommunications Berhad of -ala,sia and Sind,a Securities H In4estments 0ri4ate @imited9 :hose current shareholders are the "edd, famil, of Apollo $ospitals 2roup of India9 :ith -a<is 1ommunications holding a ma?orit, sta.e of 85>. Aircel commenced operations in '=== and toda, is the leading mo*ile operator in Tamil Nadu9 Assam9 North(East India and 1hennai. It is IndiaCs fifth largest 2S- mo*ile ser4ice pro4ider and se4enth largest mo*ile ser4ice pro4ider (*oth 2S- and 1/-A) :ith a su*scri*er *ase of o4er 7).)6 million9 as of /ecem*er %&'% :ith 7%.%5> of them *eing acti4e. It has a mar.et share of 8.))> among :ireless operators (includes 2S-9 1/-A9 and !G0 operators) in the countr,. Aircel has also o*tained permission from the /epartment of Telecommunications (/oT) to pro4ide international long distance (I@/) and national long distance (N@/) telephon, ser4ices. It also has the largest ser4ice in Tamil Nadu.
23

&$#$OR

&ninor is an Indian mo*ile net:or. operator *ased in 2urgaon9 India. The compan, holds Unified Access Ser4ice(UAS) licencesK'L to offer mo*ile telephon, ser4ices in each of IndiaCs %% telecom circles9 and has recei4ed spectrum to roll out ser4ices in %' of these (e<cluding /elhi). The compan, is a ?oint 4enture *et:een Telenor 2roup9 a telecommunications compan, headFuartered in slo9 Nor:a,9 and Unitech 2roup9 an Indian real estate compan,. Telenor o:ns a controlling ma?orit, sta.e in the compan, (78.%6>)9 :hich has *een *randed Uninor in the Indian mar.et. Uninor offers mo*ile 4oice and data ser4ices *ased on the 2S- technolog,9 currentl, on a 6.5 -$3 spectrum. Uninor ser4ices are commerciall, a4aila*le in ') circles across India. Gith a O4alue for mone,C proposition in the mar.et 9 Uninor targets ,outh and other communities :ithin the Indian mass mar.et. As of /ecem*er %&''9 Uninor has )7 million customers and a total :or.force of '598&& people. The compan, has more than %%9&&& 9 partners in India. Uninor products and ser4ices are a4aila*le from a more than 5=&9&&& retail outlets ser4iced *, '9;&& distri*utors all o4er the countr,.

MAJOR MARKET TRENDS


24

The telecoms trends in India :ill ha4e a great impact on e4er,thing from the hum*le 019 internet9 *road*and (*oth :ireless and fi<ed)9 ca*le9 handset features9 tal.ing S-S9 I0TV9 soft s:itches9 and managed ser4ices to the local manufacturing and suppl, chain. This report discusses .e, trends in the Indian Telecom industr,9 their dri4ers and the ma?or impacts of such trends affecting mo*ile operators9 infrastructure and handset 4endors.

,igher acceptance for <ireless services


Indian customers are em*racing mo*ile technolog, in a *ig :a, (an a4erage of four million su*scri*ers added e4er, month for the past si< months itself). The, prefer :ireless ser4ices compared to :ire(line ser4ices9 :hich is e4ident from the fact that :hile the :ireless su*scri*er *ase has increased at 86 percent 1A2" from %&&' to %&&79 the :ire(line su*scri*er *ase gro:th rate is negligi*le during the same period. In fact9 man, customers are returning their :ire(line phones to their ser4ice pro4iders as mo*ile pro4ides a more attracti4e and competiti4e solution. The main dri4ers for this trend are Fuic. ser4ice deli4er, for mo*ile connections9 afforda*le pricing plans in the form of pre(paid cards and increased purchasing po:er among the '; to 5& ,ears age group as :ell as si3ea*le middle class P a prime mar.et for this ser4ice. Some of the positi4e impacts of this trend are as follo:s. According to a stud,9 '; percent of mo*ile users are :illing to change their handsets e4er, ,ear to ne:er models :ith more features9 :hich is good ne:s for the handset 4endors. The other impact is that :hile the operators ha4e onl, limited options to generate additional re4enues through 4alue(added ser4ices from :ire(line ser4ices9 the mo*ile operators ha4e numerous options to generate non(4oice re4enues from their customers. Some e<amples of 4alue( added ser4ices are ring tones do:nload9 coloured ring *ac. tones9 tal.ing S-S9 mo*isodes (a *rief 4ideo programme episode designed for mo*ile phone 4ie:ing) etc. -oreo4er9 there e<ists great opportunit, for content de4elopers to de4elop applications suita*le for mo*ile users li.e mo*ile gaming9 location *ased ser4ices etc. n the negati4e side9 there is an increased threat of 4irus P spread through mo*ile data connections and Bluetooth technolog, P in mo*ile phones9 ma.ing them unusa*le at times. This is good ne:s for anti(4irus solution pro4iders9 :ho :ill gain from this trend.

25

1 -0ANY 0" !I@E Introduction


1ommunications is the Tata 2roupCs largest in4estment and the 2roupCs o*?ecti4e is to pro4ide end(to( end telecommunications solutions for *usiness and residential customers across the nation9 and internationall,. The 2roupCs communications acti4ities are currentl, spread primaril, o4er four companiesQTata Teleser4ices @imited (TTS@) and its associate Tata Teleser4ices (-aharashtra) @imited (TT-@)9 Tata 1ommunication (erst:hile VSN@) and Tata S.,. Together9 these companies co4er the full range of communications ser4ices9 including+

Telephon, Ser4ices+ !i<ed and -o*ile -edia and Entertainment Ser4ices+ Satellite TV /ata Ser4ices+ @eased @ines9 -anaged /ata Net:or.s9 I0R-0@S V0N9 /ial(up Internet9 Gi(!i and Broad*and

Value(Added Ser4ices+ -o*ile and Broad*and 1ontentRApplications9 1alling 1ards9 Net Telephon, and -anaged Ser4ices

Infrastructure Ser4ices+ Su*marine 1a*le Band:idth9 Terrestrial !i*er Net:or. and Satellite Earth Stations and VSAT 1onnecti4it,

Profile Tata Teleser4ices is part of the IN" "s. %9 6'965) 1rore Tata 2roup that has o4er ;& companies9 o4er )9 )&9&&& emplo,ees and more than ).% million shareholders. Gith a committed in4estment of IN" )79&&& 1rore (USA 8.6 *illion) in Telecom (!Y %&&7)9 the 2roup has a formida*le presence across the telecom 4alue chain. Tata Teleser4ices spearheads the 2roupCs presence in the telecom sector. Incorporated in '==79 Tata Teleser4ices :as the first to launch 1/-A mo*ile ser4ices in India :ith the Andhra 0radesh circle.

26

Beginning :ith its acFuisition of $ughes Telecom (India) @imited in /ecem*er %&&% Kno: renamed Tata Teleser4ices (-aharashtra) @imitedL9 :hich pro4ides ser4ices in the -um*ai and "est of -aharashtra telecom circles9 the compan, has s:ung into e<pansion mode and currentl, has a pan(India state(of(the( art net:or.. $a4ing pioneered the 1/-A %&&& technolog, platform in India9 Tata Teleser4ices has esta*lished a )2( read, ro*ust and relia*le telecom infrastructure in partnership :ith -otorola9 Ericsson and @ucent. The compan, has also recei4ed the license from the /epartment of Telecommunications to launch 2Sser4ices as :ell. Gith this launch set for earl, %&&=9 TTS@ is on the threshold of emerging as a true(pla, dual technolog, telecom operator. In No4em*er %&&;9 Tata Teleser4ices entered into an agreement :ith #apanese telecom ma?or NTT / 1 - 9 as part of :hich the #apanese compan, acFuired a %7> sta.e in TTS@ for US/ %.8 *illion. The transaction mar.s a .e, step in the strategic e4olution of Tata Teleser4ices9 as it mo4es to:ards a pan(India dual net:or. presence. and Telephone 1orporation (NTT). The potential *enefits and s,nergies from the alliance :ith / 1 cut across mar.eting9 handset n a *roader le4el9 the transaction is also e<pected to mar. the *eginning of a relationship of *roader co(operation *et:een Tata companies and the Nippon Telegraph

de4elopment and technical support9 all of :hich are e<pected to create ne: opportunities for *oth companies. The alliance :ill also accelerate Tata Teleser4icesC 2S- plans and help the compan, penetrate the mar.et :ith ad4anced technolog, and ne: VAS offerings. Tata Teleser4icesC *ouFuet of telephon, ser4ices includes mo*ile ser4ices9 :ireless des.top phones9 pu*lic *ooth telephon, and :ireline ser4ices. ther ser4ices include 4alue(added ser4ices such as 4oice portal9 roaming9 post(paid Internet ser4ices9 )(:a, conferencing9 group calling9 Gi(!i Internet9 USB -odem9 data cards9 calling card ser4ices and enterprise ser4ices. Some of the other products launched *, the compan, include prepaid :ireless des.top phones9 pu*lic phone *ooths9 ne: mo*ile handsets and ne: 4oice and data ser4ices such as B"EG games9 4oice portal9 picture messaging9 face*oo.9 - commerce applications9 pol,phonic ring tones9 interacti4e applications li.e ne:s9 cric.et9 astrolog,9 etc.

27

ST&'CT'&E O( COMPAN%
/epartments
Tata Teleser4ices limited is a premium cellular phone ser4ices of "a?asthan and is committed to pro4ide the highest standard of ser4ices to their customer and *est 4alue for customerCs mone,. It operates in t:el4e cities all o4er the state and is planning to e<tended itCs ser4ices to fifteen cities more :ithin state. It pro4ides access to net:or. t:ent, states all o4er India. Tata Teleser4ices limited has ten ma?or department functioning e<clusi4el, in a defined :a, for achie4ing itCs o*?ecti4es. The, are as follo:s.

28

(inance an! Accounts De#artment To loo) after the financial con!ition an! cost control of TTSL SCM De#artment *+ &es#onsi$le for generating an! !is#atching the $ills ,+ '#!ating the clients lists+ -uman &esource De#artment *+ To #lan the man#o.er re/uirements of the organi0ation+ ,+ Select an! recruit the #ersonnel+ 1+ To assess an! evaluate the #erformance of the #ersonnel+ 2+ Training an! !evelo#ment+ 3+ To maintain the #ersonnel !ata+ 4+ Develo#ment of the #romotional #olicies+ Mar)eting De#artment *+ Mar)et research an! #lanning of #romotional activities for the customer+ ,+ Pricing vis5 a 6 vis the changing environment Customer Care De#artment *+ To sort out the customer7s #ro$lem+ ,+ To han!le the /ueries of the su$scri$ers+ Legal De#artment To han!le the legal #rocess an! re/uirements+

2#

Net.or) De#artment To loo) for the net.or) an! net.or) relate! #ro$lems+ "S"T De#artment To loo) after the com#uter an! com#uter relate! #ro$lems+ O#eration Su##ort De#artment To loo) after all the o#erations that is ta)ing #lace .ithin the com#any+ Sales De#artment To increase the num$er of /uality su$scri$ers on the net.or)+

3$

Pro'!cts an' *ervices


(O#CE *ER(#CE* ( ( ( ( ( ( ( ( ( ( !i<ed(:ire phone connections Integrated Ser4ices /igital Net:or. 1entre< (central e<change) E' lin.s -anaged leased lines Ge* conferencing Tata Indicom E' 0"I Tata Indicom -anaged Voice Tata Indicom 1/-A -o*ile Insta 11

%A"A *ER(#CE* Tata Indicom Business -essaging and 1olla*oration Ser4ices Tata Indicom Ethernet GAN Ser4ices Tata Indicom Virtual 0ri4ate /ial(up Net:or. (V0/N) Tata Indicom National 0ri4ate @eased 1ircuit (N0@1) Tata Indicom Broadcasting Ser4ices Broad*and ser4ices Tata Indicom Internet Access Tata Indicom Internet @eased @ines (I@@) Tata Indicom International 0ri4ate @eased 1ircuit (I0@1) Tata Indicom -anaged Net:or. Ser4ices

31

Tata Indicom /ata 1entre $osting

8O"CE SE&8"CES .ixe'0<ire phone connections Tata Indicom offers :ire(line phone connections in :hich telephones are connected to the Tata Indicom e<change *, a com*ination of high(technolog, fi*re(optic and copper ca*les. !i*re(optic ca*les ena*le our net:or. to handle higher capacities of load compared :ith ordinar, ca*les9 and at much higher transmission speeds. #ntegrate' *ervices %igital $et<ork IS/N ser4ices from Tata Indicom deli4ers features such as+ 1alling(line identit, presentation+ Allo:s customers to identif, the calling part,Es num*er. 1alling(line identification restriction+ Allo:s customers to :ithhold ,our identit, R telephone num*er from the called part,. -ultiple su*scri*er num*er (-SN)+ Allo:s customers to connect eight phone instruments on the same line9 each of :hich :ill ha4e its o:n uniFue telephone num*er. 1all(for:arding ser4ices+ Allo:s customers to for:ard incoming calls to another num*er under different criteria9 such as Esu*scri*er *us,E and Euna4aila*leE. 1alls can *e for:arded unconditionall, too. Centrex (central exchange) 1entre< is a producti4it, *ooster that helps customers utilise facilities similar to those offered *, an E0BS9 :hile also retaining the *enefits of a direct line

32

T,pes of 1entre< ser4ices offered+ Single(s:itch9 single(site 1entre<+ All the 1entre< lines :ithin the group :ill *e located in a single premises and :ill *e co4ered *, a single e<change. Single(s:itch9 multi(site 1entre<+ The 1entre< lines ta.en *, the group can *e located in multiple premises :ithin the same e<change area. -ulti(s:itch9 multi(site 1entre<+ The 1entre< lines ta.en *, the group can *e located in multiple premises (e4en in different cities)9 :ithout an, restriction of the s:itching area. E1 links This is an ideal solution for *ig *usiness users :ho reFuire a large num*er of telephone lines on their E0BS s,stem. An E' lin. is a %(-*ps data circuit that can carr, )& 4oice R data channels. Manage' lease' lines There are point(to(point dedicated lines :ith speeds starting at 75 B*ps and reaching % -*ps. The, can also *e used for internet *and:idth access as a point to IS0 connecti4it,. ?eb conferencing This is a ser4ice that allo:s customers to gi4e group presentations o4er the internet to a geographicall, dispersed audience. Ge* conferencing :or.s in con?unction :ith teleconferencing. "ata #n'ico+ Manage' (oice ur -anaged Voice solution is ideal for 1all 1entres. It offers telephon, 4ia pac.etised I0 protocol. This toll Fualit, I0 *ased 4oice ser4ice has *een .no:n to reduce communication *ills since it follo:s a fle<i*le pa, per use model. "ata #n'ico+ E1 PR# ur E' 0"I is a digital telephon, ser4ice that allo:s ,ou to ha4e an increased num*er of direct num*ers :ithout a corresponding increase in telephone lines. These digital lines ena*le ,ou to optimi3e ,our telecom infrastructure. 1ontinuous monitoring of E' lin.s and regular traffic reports ensure smooth running. 33

"ata #n'ico+ C%MA Mobile Tata Indicom -o*ile telephon, is *ased on the latest 1/-A )2('S technolog, that offers superior 4oice clarit, and congestion(free net:or.s9 In true Tata tradition9 it is tried9 tested and trusted9 offering ,ou great 4alue for mone,. You can ma.e calls to and recei4e calls from an, landline9 2S- or 1/-A mo*ile phone #nstaCC Insta 11 is the on(demand hosted contact centre solution from Tata Indicom po:ered *, 1osmo1om9 the choice of ser4ice pro4iders :orld:ide. Insta 11 *enefits ,ou :ith a unified9 scala*le and managed portfolio of contact centre applications. Integrated :ith VSN@Es high capacit, and relia*le glo*al 4oice and data net:or.9 Insta 11 is *ac.ed *, rapid deplo,ment and customer(focussed e<pert support. from an, other net:or. in an, part of the countr, or the :orld.

%A"A *ER(#CE* "ata #n'ico+ =!siness Messaging an' Collaboration *ervices -essaging solutions help enterprises upgrade messaging en4ironments. In optimi3ing core applications such as E"09 1"-9 S1- and E1-9 Tata indicomEs Business -essaging solutions and 1olla*oration Ser4ices greatl, enhance *usiness performance. "ata #n'ico+ Ethernet ?A$ *ervices Ethernet is a critical dri4er in the ne<t generation of glo*al net:or.s P deli4ering unri4aled *enefits in fle<i*ilit,9 scala*ilit, and reduced T1 . Tata IndicomCs 2lo*al Ethernet ser4ices ena*le a fle<i*le and cost(effecti4e GAN than alternate solutions such as AT- and !rame "ela,N :ith associated S@As that ensure no compromise to relia*ilit,9 performance or managea*ilit,.

"ata #n'ico+ (irt!al Private %ial0!p $et<ork ((P%$) V0/N is used in general for connecti4it, needs at remote sites(dealers9 tra4el agents9 1!As9 mo*ile e9 etc. lt offers a lo: cost and fle<i*le solution for sites :here infreFuentRperiodic <ecuti4es access is reFuire. "ata #n'ico+ $ational Private /ease' Circ!it ($P/C) 34

0oint(to(point9 dedicated domestic connecti4it, for data and 4oice net:or.9 N0@1 ta.es care of the securit, of data. This connecti4it, can *e used to transfer huge 4olumes of data for applications li.e centralised E"09 data*ases9 mail9 etc :hich are accessed *, *ranches or *usiness partners on a regular *asis. "ata #n'ico+ =roa'casting *ervices This is an uplin.ing ser4ice for TV channels :here the original program feed can *e transmitted from the production site to reach 4ie:ers. Ge ha4e a comprehensi4e and ro*ust platform a4aila*le that offers TV uplin.ing ser4ices to a series of media channels. =roa'ban' services Tata Teleser4ices and VSN@9 through the *rand Tata Indicom9 offer high(*and:idth9 relia*le9 secure and cost(effecti4e internet connecti4it, on *road*and as,nchronous digital su*scri*er lines (A/S@s). Businesses in industr, segments such as information technolog,9 hospitalit,9 tra4el9 logistics9 stoc. *ro.ing and finance use these ser4ices. Tata IndicomEs *road*and ser4ices include+ Speed /S@ internet ser4ice plan Q the first choice for high(speed internet connecti4it, :ith a pa,(as( ,ou(use tariff plan. Value internet ser4ice plan Q connects customers on '+5 compressed internet *and:idth :ith flat( rate *illing. 2old internet ser4ice plan Q connects customers on '+' dedicated premium internet *and:idth :ith flat(rate *illing. . "ata #n'ico+ #nternet Access Access to the Internet offered through 4arious methods(@eased @ine9 0STN dial(up9 IS/N9 /S@9 "!9 etc. "ata #n'ico+ #nternet /ease' /ines (#//) Internet @eased @ines are a high speed9 fle<i*le *and:idth solution that pro4ide Internet Access an,:here9 an, time. A4aila*le as Standard9 Shared9 1ompressed or 0remium ser4ices :ith multiple Bit "ates ranging from 75B*ps to ST-'9 these lines are a4aila*le %5<8 in the reFuired *and:idth and are

35

therefore an economical solution for data transfer applications :hich are not securit, and dela, sensiti4e. "ata #n'ico+ #nternational Private /ease' Circ!it (#P/C) I0@1 is a premium point(to(point ser4ice used *, corporates :ho :ant dedicated international connecti4it, :ith committed *and:idth. This has significant use in the IT and ITeS segments It is used largel, *, the Indian arms of 4arious -N1s operating in India to connect to their regional or glo*al headFuarter

.#$A$C#A/ *"RA"EG#E*

"ntro!uction
(inance is li)e the 9$loo! in the $o!y an! oil in machine+: "t !eals .ith all the monitory transaction of $usiness+ Business finance is that acti4it, :hich is concerned :ith the acFuisition and conser4ation of capital funds in meeting financial needs and o4erall o*?ecti4e of a *usiness enterprise. Acti4it, concerned :ith planning9 raising9 controlling and administering of the funds used in the *usiness and financial affairs of the firm in most effecti4e and efficient manner. Broad area related to finance are+ !unds reFuirement decision+ 1arefull, estimation of total funds. !inancial decisions+ Identif, the source of funds. In4entor, decisions+ E4aluate different capital in4estment. /i4idend decisions+ "elated to all di4idend policies of *usiness. The o*?ecti4e of the firm is to ma<imi3e shareholders :ealth as the, are the ultimate o:ners of the firm. This department in the compan, is representati4e agents of shareholders and follo:s polic, :hich :ill increase 4alue of sta.e in the *usiness. !inance polic, in4ol4es proper deplo,ment of resources such as material9 capital and la*our. The function performed *, finance department+ All the pa,ment made to 4endorsR emplo,eeR capital suppliers. 36

Audit function+ "NTE&NAL A'D"T; Outsource agencies come and Check the records of company. STAT'TO&% A'D"T TA< A'D"T

("NANCE ('NCT"ON
.inance f!nction is of fo!r t)pes@ I. Rec!rring .inance .!nctions@ 0erformed for effecti4e co( ordination and completion of o*?ecti4es of the firm. II. 0lanning of funds "aising of funds Allocation of resources 1ontrol of funds Allocation of income 1o( ordination :ith other departments $on Rec!rring .inance .!nction+ 0erformed on the occurrence of the special e4ents. -anaging assets Valuation of assets @iFuidit, functions !orecasting cash flo:s "e( ad?ustment

Ro!tine .!nctions+ performed *, lo:er le4el emplo,ees.

37

-anagement of credit transactions Beeping records of transactions Administration of pension and :elfare schemes Super4ision of receipt of cash and its dis*ursement Safet, of securities

Profitabilit) .!nctions+ !or management of profit. 1ost control 0ricing !orecasting future profits -easuring cost of capital

&OLES AND &ESPONS"="L"T"ES


RO/E*@ #> ##> ###> .inancial anal)sis an' perfor+ance Appraisal@ Anal,sis of !inancial 1ondition and 0erformance !inancial !orecasting and 0lanning !inancial control Anal,sis of accounts .inancing %ecisions@ -anagement of income 1ash management 1redit management #nvesting %ecisions@

38

IV. (>

"estructuring /ecisions 1apital In4estment /ecisions %ivi'en' %ecisions+ Audit 0reparation of cost accounts Interpretation of cost accounts Collection an' Recover) Beep the e<posure under pre( defined limits -anage collection and reco4er, operations -anage 0roacti4e and "eacti4e "etention Acti4ities Ensure Implementation

RE*PO$*#=#/#"#E*@ #> *ales Acco!nting@

1hannel sales 1ommission finali3ation Stoc. "econciliation Branch @iaison ##> .inancial Acco!nting@

0reparation of coc.pit report 0reparation of monthl, *udgets 0reparation of monthl, 1 1 (1ost of customer AcFuisition) 3#

0rocessing of Imprest and Suppliers *ills "e4enue "econciliation Stoc. "econciliation Ban. "econciliation ###> CapitaliAation@

-aintaining records for all cape< items 1hannel 0a,outs #(> (> (#> (##> (###> #C> C> C#> =alancing cost an' reven!e A'eB!ate ret!rn on sharehol'ers f!n's Control of .inancial Reso!rces A'herence of vario!s la<s Protection of Cre'itors #nterest Protection an' Pro+otion of E+plo)ees #nterest .or+!lation of /ong0 ter+ .inancial Plan *ales of *ec!rities

4$

&E"M='&SEMENT
Policies
%o+estic "raveling Allo<ance It is a important tas. for a compan, and emplo,ees :hoCs :or.ed in a compan,. Emplo,ees :hom are sent out of station on the cost of compan, the, are pro4ided :ith compensation from the compan, according to the polic, terms and condition la, do:n. $ence one :as gi4en a chance to audit all the emplo,eesN *ills :hether the, are according to the terms and conditions of the compan, .These *ills are then updated in SA0 and these *ills are attached :ith the sap code print :ith the *ills and the, are arranged according to the sap codes then the cheFue is passed in the name of emplo,ees and the, are paid the compensation. /omestic tra4el polic, is applica*le to all the emplo,ees. /omestic polic, has differentiated in some part. On the basis of level of E+plo)ees@ All emplo,ees ha4e *een classified under the follo:ing categories for the purpose of domestic tra4el+

41

Categor) ' % ) 5 6

/evel -/R1E H-' H -% -) H -5 -6 H -7 -8 H -;

%esignation -/R1hief E<ecuti4e fficer9 0residentRchief fficer Vice 0resident H 2eneral -anager Senior -anager H -anager Assistant -anager H Senior E<ecuti4e E<ecuti4e H officer

On the basis of cities for the p!rpose of %o+estic "ravel !or the purpose of domestic *usiness tra4el9 all the cities ha4e *een classified under the follo:ing categories. Class A B 1 Cities -um*ai9 /elhi9 Bol.ata9 Bangalore9 1hennai and $,dera*ad 1apital of all StatesRUnion Territories other than those under 1lass A cities a*o4e. Agra9 Varansai and Ahmeda*ad. All other 1itiesR To:ns

The entitlements for hotel accommodation applica*le to different categories of emplo,ees in different cities are listed *elo:.

Categor) of E+plo)ees A "s. 0er night sta, Actuals Up to "s.67&& Up to "s.)86& Up to "s.%6&& Up to "s.'=&&

Class of Cities = Actuals Up to "s. 6&&& Up to "s. )'&& Up to "s. '=&& Up to "s. '%6& C Actuals Up to "s. )86& Up to "s. '=&& Up to "s. '%6& Up to "s. =6&

' % ) 5 6

On the basis of %ail) Allo<anceDPrivate sta) Allo<ance

42

In case the emplo,ee sta, in a hotel9 heR she shall *e eligi*le for reim*ursement on some meals outside the hotel9 reim*ursement can *e claimed T'R)rd of the dail, allo:ance mentioned in the ta*le *elo: for each meal consumed outside the hotel. Categor) of E+plo)ees Class A Cities ' % ) 5 6 Actuals '&&& 86& 6&& )&& %ail) Allo<ance Class = Cities Actuals ;&& 7&& 5&& %6&

Class C Cities Actuals 76& 6&& )%6 %&&

The dail, Allo:ance has to *e claimed :ith supporting *illsR 4ouchers. /ail, Allo:ance :ill e<clude laundr, and local con4e,ance. Emplo,ees can also claim reim*ursement of incidental e<penses li.e tips9 reading material9 personal phone call etc. as per the limits mentioned *elo:+ Categor) of E+plo)ees ' % ) 5 6 #nci'ental Expen'it!re(Rs> Per 'a)) Actual '&& 86 7& 6&

Emplo,ees ma.ing their o:n pri4ate arrangement :ill *e eligi*le for pri4ate sta, allo:ance. This :ill *e an all Inclusi4e allo:ances9 e<cept e<penditure on local con4e,ance. The entitlements for pri4ate sta, allo:ance9 as applica*le to different categories of emplo,ees in different cities is listed *elo:+

Categor) of E+plo)ees 'H% ) Class A Cities '%&& =6&

Private *ta) Allo<ance (Rs> Per 'a)) Class = Cities Class C Cities =6& 86& 86& 7&& 43

5 6

8&& 6&&

66& 5&&

5%6 )&&

&ELOCAT"ON POL"C%

"ravel Expenses If a ne: ?oinee is relocating to the location of posting9 heRshe :ill *e reim*ursed tra4el e<penses for self and famil, as per the guidelines laid do:n in the /omestic Tra4el 0olic,. O!amil,C for this purpose is defined as spouse9 children9 and emplo,eeCs dependent parents. Acco++o'ation@

The ne: ?oinee :ill *e entitled to transit accommodation for self and famil, for a ma<imum period of t:o :ee.s at a compan, guesthouseRser4ice apartment9 or if una4aila*le at hotel as per the entitlement prescri*ed under the /omestic Tra4el 0olic,. The ne: ?oinee :ill also *e entitled to /ail, Allo:ance for self and accompan,ing famil, mem*ers as per the pro4isions of the /omestic Tra4el 0olic, in case of sta, in a hotel. In case the ne: ?oinee ma.es hisRher o:n arrangements for sta,ing till such time heRshe locates a house9 heRshe :ill *e entitled to 0ri4ate Sta, Allo:ance as per the pro4isions of the /omestic Tra4el 0olic,. The num*er of da,s for :hich 0ri4ate Sta, Allo:ance :ill *e paid :ill not e<ceed the limits for compan, pro4ided accommodation as pro4ided a*o4e. !or an, sta, in guesthouseRhotel accommodation *e,ond the appro4ed period9 the emplo,ee :ill not *e paid an, $ouse "ent Allo:ance or e<penses incurred on pro4iding the guest houseRhotel accommodation :ill *e reco4ered at actuals9 :hiche4er is higher. Cone)ance All ne: ?oinees at Vice 0resident le4el and a*o4e :ho are eligi*le for a compan, pro4ided car :ill *e pro4ided :ith a poolRhired car till the time the car is allotted to himRher9 su*?ect to a ma<imum of t:o :ee.s from the date of relocation. Ne: ?oinees :ho are eligi*le for compan, car or cash in lieu there of :ill *e reim*ursed charges to:ards 4ehicle re(registration on actuals (on production of supporting documents) :hen relocating to a different

44

state. "ransportation of ,o!sehol' Articles An' (ehicle@ The reim*ursement of e<penses :ould *e limited to transportation of personal effects *, one truc.load9 unless specificall, appro4ed *, 1$" . In ddition9 the transportation cost of one 4ehicle :ill *e reim*ursed for ne: ?oinees at the le4el of Senior -anagers and a*o4e. Actual e<penses incurred on pac.ing9 loading9 insurance (as normall, charged *, the insurance companies)9 octroi9 and unloading :ill *e reim*ursed. In all cases9 three Fuotes are to *e su*mitted to the @ocation Administration /epartment for appro4al. Recover) In case an emplo,ee lea4es the ser4ices of the 1ompan, :ithin one ,ear of ?oining after a4ailing of the a*o4e facilit,9 the e<penses *orne to:ards the re(location :ould *e reco4ered on a pro rata *asis. A'vance Emplo,ees not entitled to compan, leased accommodation :ill *e entitled to an ad4ance of not more than three months house rent allo:ance (or as appro4ed *, 1$" for indi4idual locations) to:ards ta.ing up suita*le accommodation. This ad4ance :ill *e reco4ered in ten eFual monthl, installments.

TELEP-ONE POL"C% Polic) on Co+pan) Provi'e' Mobile Connection All emplo,ees of @e4el -; and a*o4e :ill *e reim*ursed for one mo*ile handset in e4er, t:o ,ears H :ill also get one compan, pro4ided connection /evel P:ise eligi*ilit, for the same :ould *e as follo:s ,an'sets@ The handsets amount :ill *e reim*ursed *, the compan, :ithin the follo:ing ceiling @imits P
/evel Revise' /i+its of ,an'set <ith accessoriesE (Rs>) "s.)9&&&R( "s.79&&&R(

-8 H -; -6 H-7 -59 -) H -)A

"s =&&&R( 45

-% H -%A -' H a*o4e

"s. '&&&&R(

Actuals

Emplo,ees at all le4els ha4e to purchase a handset9 :hich :or.s on compan, net:or.. $o:e4er9 in cases :here the emplo,ee opts for a handset higher than the limits indicated9 the differential amount :ill need to *e *orne *, the emplo,ee onl, -onthl, limit+ The monthl, limit for usage of the mo*ile phone9 inclusi4e of rental charges9 call charges (official H local personal calls)9 VAS usage charges (if an,)9 ta<es etc :ould *e as under+

/evel -6 H *elo: -)A9 -) H -5 -'A9 -'9 -%A H -% -&

/i+it in RsDMonth
"s.86&R( "s.'9%&&R(

"s. %6&&R( Actuals

Resignations D "ransfers@ !ollo:ing criteria :ill *e applica*le for the reco4er, of reim*ursed amount on resignation of emplo,ee.
"en!re in ""*/ after getting ne< +obile U 7 -onths V 7 -onths U '% -onths V '% -onths U '; -onths V '; -onths F Rei+b!rse' a+o!nt recovere' as part of .inal settle+ent '&& > 86 > 6& > &>

POL"C% ON AD8ANCE SALA&%

46

To la, guidelines for pro4ision of ad4ance against salar, in order to offset the financial *urden caused *, personal e<igencies. This polic, is applica*le to all confirmed emplo,ees :ho are on the rolls of the 1ompan, at the time of application for salar, ad4ance. The salar, ad4ance can *e a4ailed onl, after completion of '% months after repa,ment of the pre4ious salar, ad4ance. The personal e<igencies for :hich an emplo,ee can appl, for a salar, ad4ance under this polic, are+ -edical emergenc, for self or famil, mem*er. School admission of children. $igher education of self or immediate famil, mem*er. Temporar, housing assistance in case of flood9 fire and other perils. /eath of a famil, mem*er. ther e<igencies.

The amount of Salar, Ad4ance :ill *e eFui4alent to t:o monthsC net salar, of the emplo,ee at the time of application. /efinition of Net Salar,+ Net salar, is the difference *et:een gross earnings and gross deductions. Recover) The ad4ance sanctioned :ill *e reco4ered o4er a period of upto 7 eFuated monthl, deductions from the salar, commencing in the su*seFuent month. $ote 0+ An, ta< incidence arising out of the salar, ad4ance :ill *e to the emplo,ees account. LOCAL O(("C"AL T&A8EL Entitle+ents The entitlements for reim*ursement of local con4e,ance e<penses :ill *e regulated as under+ .or e+plo)ees <ho are not entitle' for co+pan) vehicles@ Categor)
-anagers9 Assistant -anagers9 Senior E<ecuti4es9 -anagementR2raduate Engineer Trainees

Entitle+ent
Emplo,ee to use metered ta<is or autosR*usRtrain and claim reim*ursement at actuals or use o:n car and claim reim*ursement T "s.7.6& per .m or use o:n t:o(:heeler and claim reim*ursement T "s.).&& per

47

.m. E<ecuti4es9 fficers and ther Trainees Emplo,ee to use autosR*usRtrain and claim

reim*ursement at actuals or use o:n t:o(:heeler and claim reim*ursement T "s.).%6 per .m.

.or e+plo)ees <ho are entitle' for co+pan) carDcash in lie! thereof Categor)
Emplo,ees entitled for 1ash in lieu of 1ompan, 1ar

Entitle+ent
Emplo,ee to use o:n car and claim reim*ursement T "s. 7.6& per .m or use metered ta<is and claim reim*ursement at actuals

Emplo,ees pro4ided 1ompan, 1ar :ith

/evel M1 G above+ Emplo,ee to use compan, pro4ided car. In case of non(a4aila*ilit, of 1ompan, 1ar on account of repairsRser4icing9 emplo,ee can reFuisition for a poolRhired car. /evel M6+ Emplo,ee to use compan, pro4ided car. In case of non a4aila*ilit, of 1ompan, 1ar on account of repairsRser4icing9 emplo,ee can use metered ta<is and claim reim*ursement at actuals. /evel M4+ Emplo,ee to use compan, pro4ided car and claim reim*ursement T "s. 7.6RBm. In case of non a4aila*ilit, of the car on account of repairsRser4icing9 emplo,ee can use metered ta<is and claim reim*ursement at actual.

Ghere the emplo,ees uses compan, car R o:n 4ehicle for official :or.9 dar.ing R toll charges can *e additionall, claimed at actuals. Refresh+ent Expenses If an emplo,ee is out on official :or. for 5 hours or more9 heRshe can claim reim*ursement of e<penditure incurred to:ards meals and other miscellaneous e<penditure upto "s.7&R( per da,.1laims can *e made once e4er, month :hich should *e dul, authori3ed *, the reporting -anager (not less than a Senior -anager) to :hom the emplo,ee reports. It shall *e the responsi*ilit, of the reporting manager to 4erif, the correctness of the claim. In case of incorrect claims9 the emplo,ee shall *e lia*le for strict disciplinar, action.

48

4#

P&OCESS
PROCE** ./O? %E*CR#P"#O$ %&RA"#O$ RE*PO$*#=#/#"#$P&"0 O&"P&" G ECCEP"#O$

Start

"eceipt of claim for "eim*ursement of E<penses

All

claims of claim

for Emplo,ees dul, for of

Tic.et "eceipts "eports riginal Bills 1redit 1ard /etails (If pa,ment is *, 1redit 1ard)

reim*ursement is made Su*mission appro4ed

reim*ursement follo:ing e<penses+ '. 1on4e,ance E<penses "eim*ursement


1hec.ing 1laim of

/etails of dail, !oodR1on4e,anceR $otel E<penses Separatel,

%. Tra4el E<penses "eim*ursement ). ther imprest E<penses "eim*ursement

0rocessing 0a,ment "eFuest

of

1hec.ing the 4oucher for supporting *ills and authori3ation. 1hec.ing the receipt9 reports etc.

!inance

0rocessing of pa,ment reFuest+ Ensuring reFuisite :hether format is 5$

PROCE** ./O?

%E*CR#P"#O$

%&RA"#O$

RE*PO$*#=#/#"-

#$P&"0 O&"P&" G ECCEP"#O$

8e9ues t acce!te d

If accepted then further processed If not accepted then+ " Githin % !inance Either it is cancelled /a,s "esending of claim to emplo,ees if the claims are not appropriate or not according to the formalR polic,. 0reparation of cheFueR //. Githin da,s % !inance 1heFueR //

0reparation cheFueR //

of

0a,ment Emplo,ees

to

!inance /ept9 hando4er the cheFueR// to n e4er, emplo,ees !rida, of the !inance e4er, :ee.9 if
End

1heFueR // pa,ment

claim

is till

recei4ed

Thursda, of 51

the month

52

RE*EARC, ME",O%O/OG-

/uring the pro?ect time in the compan, there :as scarcit, of time. So for data collection9 it :as necessar, that anal,tical t,pe of research :as used and hence mainl, t:o method :ere used9 4i3.9 '. *ser4ation method

%. Inter4ie: method Both the methods :ere used in supplementar, manner to accomplish each other. 1> Observation +etho'@ /espite of *eing an e<pensi4e method of data collection9 o*ser4ation method is a preferred one *ecause+ Su*?ecti4e *ias ness (due to secondar, data sources) is eliminated. Information collected is related to :hat is currentl, happening on the spot. And more specificall,9 during the compan, 4isits9 sometimes all the respondents or emplo,ees are not completel, co(operati4e or are not much capa*le or :illing (due to one reason or other) to pro4ide completeR*ias(freeRrele4ant information needed *, the researcher. In such cases9 o*ser4ation supplements the inter4ie: in collecting the data and anal,3ing them to con4ert them into rele4ant information. This t,pe of o*ser4ation *ecomes necessar, for data collection *ecauseRso that+ Ge should *e ena*ling to record the natural *eha4ior of the group9 actual :or.(flo: and processing of the compan,Rmanufacturing unitR organi3ation under consideration. Increased interests in carr,ing the research so that more and more rele4ant information can *e gathered accuratel, and :ithout an, *ias(ness in minimum time a4aila*le. To 4erif, the truth of statements made *, informants during the inter4ie:s.

But care need to *e ta.en during the participant o*ser4ation is that o*?ecti4it, of research should not *e lost due to facts o*ser4ed. In other :ords9 :hate4er is o*ser4ed should *e integrated :ith the o*?ecti4es or purpose l,ing *ehind the research. 0articipants *ecome essential also *ecause the o*ser4ation is controlled o*ser4ation9 :hich ta.es place according to definite pre(arranged financial plans9 in4ol4ing e<perimental procedures. In controlled o*ser4ation :e use precision instruments as it aids to accurac, and standardi3ation. 53

So *oth the o*ser4ation and inter4ie:s need to *e used for data collection to supplement each other. 6> #ntervie<@ Inter4ie: conducted during the compan, 4isit :ere mainl, personal inter4ie:s of spo.e person of the finance department of the compan,. These :ere unstructured inter4ie:s. Since :e had to collect more and more information in limited time period9 it :as essential to construct or design a fe: Fuestion and seFuence of Fuestions to *e as.ed during the inter4ie:.But on the same hand9 it is also necessar, that :e can omit certain Fuestions if the situation so reFuires. The inter4ie: needs to *e fle<i*le enough so that :e can record responses to include some aspects and e<clude others. So the inter4ie:s need to *e structured as :ell as unstructured one. The research methodolog, includes the o4erall procedure :hich is follo:ed in research stud,+ '. Titles %. *?ecti4e ). 2oals 5. Nature of stud, 6. Sources of data

A *rief e<planation is as follo:s+ 1> "itles@ WA %etaile' *t!') on E+plo)ee Rei+b!rse+ent Progra++e in "ata "eleservices /t'> aip!r for Effective =!siness Operation>H 6> Objective@ To find out products satisfaction le4el among customer. To assess gro:th potential of tata indicom. To find out the need of lease reFuirements or rent reFuisition. To .no: the sources of purchase (True 4alue hu* and true 4alue shop) of tata indicom.

4> Goal@ WTo enhance corporate 4alue9X :ithout ta.ing e<cessi4e financial ris.. 7> $at!re of st!')@ These are three t,pes research namel, e<plorator,9 descripti4e or diagnostic and casual. The present stud, is descripti4e in nature :ith an applied *asis. 54

E<plorator, "esearch+ E<plorator, "esearch is that of formulating a pro*lem for more precise in4estigation or of de4eloping the :or.ing h,pothesis from an operational point of 4ie:. /escripti4e "esearch+ /escripti4e research are those :hich are concerned :ith descri*ing freFuenc, :ith :hich something occurs or its association :ith something else. 6. *o!rces of 'ata+ /ata is of mainl, t:o t,pes+ 0rimar, data Secondar, data 0rimar, data+ It is collected *, personal inter4ie: and discussion :ith customer9 distri*utors and pri4ate dealers. Secondar, data+ It is collected *, 4arious sources such as at census9 :e*site and literature of tata indicom etc. the characteristics of a particular indi4idual9 or of a group9 :hereas diagnostic research studies determine the

55

%A"A #$"ERPRE"A"#O$
*?O" Anal)sis@ *trength@ '. Tata indicom refers ,ou a range of products and ser4ices to suit ,our needs so ,ou al:a,s connect. %. Tata indicom find the perfect solution for us *usiness communication needs. ). Tata indicom range of products and ser4ices at the most con4enient location near ,ou. 5. Tata indicom pro4ide *etter facilities and plans :hich are less cheaper.

?eakness@ '. The ne: mar.et that need to *e e<ca4ated. %. The connecti4it, is not easil, a4aila*le in rural area.

Opport!nit)@ '. TTS@ :as the first compan, :hich offers 1/-A mo*ile ser4ices. %. Tata indicom iaunched the tal. :orld plan9 an international long distance plan. ). Tata is also pro4iding :ireless landline phone ser4ices *, the *rand name of :al.,. 5. The technolog, :as 4er, ad4anced. 6. -o*ile internet ser4ices.

"hreat@ '. The compan, challenges are to address the significantl, increased in the international telephon, and related ser4ices segments. %. Tata is the direct competitors :ith "eliance communication in India.

56

CO$C/&*#O$*
After the stud, on WEmplo,ee "eim*ursement 0rogram for the proper *usiness functioningX. The regular reim*ursement of the e<penses is 4er, important. Ver, often it is found that the emplo,ees are claiming fa.e e<penses :hich ha4e not *e *orn *, them still the, present the *ills and get it reim*ursed. The polic, of the compan, is found to *e lac.ing some *asic features such as simpl, gi4ing 'R) of the /earness allo:ance to a emplo,ee if he sta,s in an, hotel and ha4e food out of hotel.

The appro4ing authorit, are ha4ing lot of *ills to appro4e in e4er, department and some of the emplo,ees ta.es the li*ert, to get their *ills appro4ed *, their Sr. -anager and the !inance department canCt raise an, o*?ection on the emplo,ee as he has alread, got appro4ed his *ill. 0roper :atch should *e .ept on the a4aila*ilit, of the guest house of the compan, *ecause the emplo,ees sta, in $otel e4en after there is space in guest houses. This simpl, increases cost to the compan,.

Bills are to *e presented e4er, ne<t month for the reim*ursement according to the compan,Cs polic, *ut the, are presented e4en after 5 month later and the, are entertained.

Secondl,9 the e4er increasing demand for *and:idth efficienc,9 higher data rate and ne: ser4ices has moti4ated the customer *ut ne: technolog, ser4ices li.e *oth 1/-A and 2S- in a single mo*ile is also important for sharpl, increase the gro:th the mar.et share.

Esta*lishment of more true 4alue hu* in 4illage area to generate the a:areness a*out the use of *etter mo*ile ser4ices among the customer.

57

RECOMME$%A"#O$*
!inance :ithin an organi3ation is all a*out helping accompan, manage its mone,9 to run the *usiness9 gro: the *usiness9 ma.e acFuisition9 pa,ments of e<penses in timel, manner and manage cash. The .e, to a successful finance is performing :ill in *usiness :it a long term 4ie: of :hat going to ma.e ,our compan, successful. /ifferent person should *e appointed for cross chec.ing of the *ills presented. E4er, month the dail, report of the a4aila*ilit, of the guest should *e for:arded to the administration department. Bills should *e returned *ac. if the, are presented for the reim*ursement not in specified time *, the compan,. To pro4ide a fair rate of return to the supplier of capital. To coordinate the acti4ities of the finance department :ith the acti4ities of other department of the organi3ation. !inancial control is reFuired for the successful e<ecution of o*?ecti4es9 polices and programCs esta*lished under the financial plan. Some incenti4e scheme should *e introduced for the emplo,ees :ho help compan, in cost cutting. 0roper identification should *e made through an, sur4e, or so for the distance *et:een t:o places so that the emplo,ees canCt demand unnecessar, e<penses. To pro4ide *etter facilities and plans :hich are less cheaper. To pro4ide adeFuate and appropriate compensation and ser4ices to the emplo,ees.

58

=#=/#OGRAP,www.tatateleservices.com !!! !i"ipedia com !!! google com !!! indiatelecom!orld com www.tata.com www.telecomupdates.com www.google.com www.bambooweb.com

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2 # $
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