Tata

AProject 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 OF RAJASTHAN

2012-2013

Submitted to: Submitted by:

Mrs. Ekta Sharma Deepshikha Rathore

Asst. professor (PCGE) B.B.A. 3rd year

Parishkar College of Global Excellence (PCGE)

( Mansarover, Jaipur)

1

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

2

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

1. Organization

3

a. Introductionb. Corporate Mission and Valuesc. Group of Companies

2. Introduction of Telecom Industry

3. Company Profilea. Introductionb. Structure of Companyc. Departmentsd. Products and Services

4. Observationa. Financial Strategies

i. Introductionii. Functionsiii. Roles and Responsibilityiv. Finance Package for accounting in SAP

b. Reimbursementi. Reimbursement Policiesii. Reimbursement Process

c. Research Methodologyd. Data Interpretation

5. Conclusion

6. Recommendations

7. Bibliography

4

OrganizationThe Tata Group is a multinational conglomerate based in Mumbai, India. In terms of market

capitalization and revenues, Tata Group is the largest private corporate group in India and has

been recognized as one of the most respected companies in the world over the years.It has

interests in steel, automobiles, information technology, communication, power, tea and hotels.

The Tata Group has operations in more than 85 countries across six continents and its companies

export products and services to 80 nations. The Tata Group comprises 98 companies in seven

business sectors, 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in

charitable trusts. Companies which form a major part of the group include Tata Steel, Corus

Steel, Tata Motors, Tata Consultancy Services, Tata Tea, Titan Industries, Tata Power, Tata

Communications, Tata Teleservices, Tata AutoComp Systems Limited and the Taj Hotels.

The group takes the name of its founder, Jamsetji Tata, a member of whose family has almost

invariably been the chairman of the group. The current chairman of the Tata group is Ratan Tata,

who took over from J. R. D. Tata in 1991 and is currently one of the major international business

figures in the age of globality. The company is currently in its fifth generation of family

stewardship.

5

INTRODUCTION

The Tata group comprises over 100 operating companies in seven business sectors:

communications and information technology, engineering, materials, services, energy, consumer

products and chemicals. The group has operations in more than 80 countries across six

continents, and its companies export products and services to 85 countries.

The total revenue of Tata companies, taken together, was $100.09 billion (around Rs475,721

crore) in 2011-12, with 58 percent of this coming from business outside India. Tata companies

employ over 450,000 people worldwide. The Tata name has been respected in India for more

than 140 years for its adherence to strong values and business ethics.

Every Tata company or enterprise operates independently. Each of these companies has its own

board of directors and shareholders, to whom it is answerable. There are 32 publicly listed Tata

enterprises and they have a combined market capitalisation of about $93.42 billion (as on May 2,

2013), and a shareholder base of 3.8 million. The major Tata companies are Tata Steel, Tata

Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages,

Tata Teleservices, Titan, Tata Communications and Indian Hotels.

Tata Steel is among the top ten steelmakers, and Tata Motors is among the top five commercial

vehicle manufacturers, in the world. TCS is a leading global software company, with delivery

centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Global

Beverages is the second-largest player in tea in the world. Tata Chemicals is the world’s second-

largest manufacturer of soda ash and Tata Communications is one of the world’s largest

wholesale voice carriers.

In tandem with the increasing international footprint of Tata companies, the Tata brand is also

gaining international recognition. Brand Finance, a UK-based consultancy firm, valued the Tata

brand at $18.16 billion and ranked it 39th among the top 500 most valuable global brands in their

BrandFinance® Global 500 2013 report. In 2010, BusinessWeek magazine ranked Tata 17th

among the '50 Most Innovative Companies' list.

6

Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by the spirit of nationalism. It

pioneered several industries of national importance in India: steel, power, hospitality and

airlines. In more recent times, its pioneering spirit has been showcased by companies such as

TCS, India’s first software company, and Tata Motors, which made India’s first indigenously

developed car, the Indica, in 1998 and recently unveiled the world’s most affordable car, the Tata

Nano.

Tata companies have always believed in returning wealth to the society they serve. Two-thirds of

the equity of Tata Sons, the Tata promoter holding company, is held by philanthropic trusts that

have created national institutions for science and technology, medical research, social studies and

the performing arts. The trusts also provide aid and assistance to non-government organisations

working in the areas of education, healthcare and livelihoods. Tata companies also extend social

welfare activities to communities around their industrial units. The combined development-

related expenditure of the trusts and the companies amounts to around 3 percent of the group's

net profits in 2011.

Going forward, Tata is focusing on new technologies and innovation to drive its business in India

and internationally. The Nano car is one example, as is the Eka supercomputer (developed by

another Tata company), which in 2008 was ranked the world’s fourth fastest. Anchored in India

and wedded to traditional values and strong ethics, Tata companies are building multinational

businesses that will achieve growth through excellence and innovation, while balancing the

interests of shareholders, employees and civil society.

7

Corporate Mission and Values

Purpose

At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in

which we operate.

Our practice of returning to society what we earn evokes trust among consumers, employees,

shareholders and the community. We are committed to protecting this heritage of leadership with

trust through the manner in which we conduct our business.

Mission

To be a competitive value provider in international business for Group companies and all our

partners.

Vision

Our vision is to set the standards in our chosen business and markets, enriching life by enabling

reliable and affordable communication anytime, anywhere.

Core Values8

Tata has always been values-driven. These values continue to direct the growth and business of 

Tata companies. The five core Tata values underpinning the way we do business are:

Integrity

We must always conduct our business with fairness, honesty and transparency, so that we can at

all times stand public scrutiny. We will never undermine the heritage of trust that comes with the

Tata brand.

Spirit of Entrepreneurship

We would encourage innovative ideas for individual and organizational development. This

thinking would be fostered, encouraged and recognized for enhancing business. We would take

delight in stretching our goals and each of us would have a sense of ownership and responsibility

for all our business dealings.

Agility

We will encourage an organizational culture and structures that have capacity for change.

Flexibility and adaptability will be critical to our operations. We will aim for nimble, flexible

and customized responses at all times to all our stakeholders.

Passion for Excellence

All our activities must be driven by a passion for excellence. We must strive, uncompromisingly,

to achieve the highest standards in our daily work and in the quality of the goods and services we

offer. We would endeavour to achieve 'best in class' status in all our processes and results.

Unity

We must work cohesively with our colleagues, customers and partners around the world,

leveraging synergies and building strong networks based on collaboration and mutual

cooperation.

Group of Companies

9

Engineering

TAL Manufacturing Solutions

Tata AutoComp Systems Limited (TACO) & its subsidiaries, auto-component

manufacturing

Tata Motors (formerly Tata Engineering and Locomotives Company Ltd (TELCO)),

manufacturer of commercial vehicles (largest in India) and passenger cars

Jaguar and Land Rover

Tata Projects

TCE Consulting Engineers

Telco Construction Equipment Company

TRF Bulk Material Handling Equipment & Systems and Port & Yard Equipments.

Voltas, consumer electronics company

Energy

Tata Power is one of the largest private sector power companies. It supplies power to

Mumbai, the commercial capital of India and parts of New Delhi. Ghatraj Power Supplier

Ltd. is one of the big supporter of the Tata Power.

Chemicals

Rallis India

Tata Pigments

Tata Chemicals, headquartered in Mumbai, India, Tata Chemicals has the largest single

soda ash production capacity plant in India. Since 2006 Tata Chemicals has owned

Brunner Mond, a United Kingdom-based chemical company with operations in Kenya

and the Netherlands.

10

Services

The Indian Hotels Company

Tata Housing Development Company Ltd. (THDC)

Tata-AIG General Insurance, a joint venture with AIG

Tata-AIG Life Insurance, a joint venture with AIG

Tata Asset Management

Tata Economic Consultancy Services

Tata Financial Services

Tata Capital

Tata Investment Corporation

Tata Quality Management Services

Tata Share Registry

Tata Strategic Management Group (TSMG) is one of the largest consulting firms in

South Asia.

Tata Services

Consumer Products

Tata Salt, I Shakti Salt, Tata Salt Lite

Tata Ceramics

Infiniti Retail

Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea

products. It also owns the Tetley brand of tea sold primarily in Europe.

11

Titan Industries manufacturers of Titan watches

Trent (Westside)

Tata Sky

Tata International Ltd - Leather Products Division

Tanishq jewelery

Information systems and communications

Computational Research Laboratories

INCAT

Nelco

Nelito Systems

Tata Business Support Services (formerly Serwizsol)

Tata Consultancy Services Ltd. (TCS) is Asia's largest software company with 2006-07

revenues being over US$ 5.7 bn.

Tata Elxsi is another Software and Industrial design company of the Tata stable. Based in

Bangalore and Trivandrum. One of the leading companies in the animation industry of

India.

Tata Interactive Systems

Tata Technologies Limited

Tata Teleservices

Tatanet

12

Tata Communications, formerly VSNL, the Indian telecom giant, was acquired in 2002.

Tata-owned VSNL acquired Teleglobe in 2005.

Philanthropy and nation building

The Tata Group has helped establish and finance numerous quality research, educational and

cultural institutes in India. It is the one of the leading and enormously respected philanthropic

corporate entity in India. The Tata Group was awarded the Carnegie Medal of Philanthropy in

2007 in recognition of the group's long history of philanthropic activities. Some of the institutes

established by the Tata Group are:

Tata Institute of Fundamental Research

Tata Institute of Social Sciences

Indian Institute of Science

National Centre for Performing Arts

Tata Management Training Centre

Tata Memorial Hospital

Tata Trusts, a group of philanthropic organizations run by the head of the business

conglomerate Tata Sons.

13

INTRODUCTION

OF

TELECOM INDUSTRY

The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world

and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in

the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The

total subscriber base, which has grown by 40% in 2005, is expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India aims at 9 millionbroadband connections and

18 million internet connections by 2007. The wireless subscriber base has jumped from 33.69 million in

2004 to 62.57 million in FY2004-2005. In the last 3 years, two out of every three new telephone

subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total

telephone subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is expected to

14

bypass 2.5 million new subscribers per month by 2007. The wireless technologies currently in use are

Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There

are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 Telecom circles and 4

metro cities, covering 2000 towns across the country.

HISTORY OF INDIAN TELECOMMUNICATIONS

Evolution of the industry-Important Milestones

Year

1851 First operational land lines were laid by the government near Calcutta (seatof British power)

1881 Telephone service introduced in India

1883 Merger with the postal system

1923 Formation of Indian Radio Telegraph Company (IRT)

1932 Merger of ETC and IRT into the Indian Radio and Cable Communication Company (IRCC)

15

1947 Nationalization of all foreign telecommunication companies to form the Posts, Telephone and

Telegraph (PTT), a monopoly run by the government's Ministry of Communications

1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-

distance service that would be its own regulator (separate from the postal system)

1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam

Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited

(MTNL) for service in metropolitan areas. Telecom Regulatory Authority of India created.

1999 Cellular Services are launched in India. New National Telecom Policy is adopted.

2000 DoT becomes a corporation, BSNL

MAJOR PLAYERS IN TELECOMMUNICATION SECTOR

India's telecommunication network is the second largest in the world based on the total

number of telephone users (both fixed and mobile phone). It has one of the lowest call tariffs in

the world enabled by the mega telephone networks and hyper-competition among them. It has

the world's third-largest Internet user-base with over 137 million as of June 2012. Major sectors

of the Indian telecommunication industry are telephony, internet and television broadcasting.

Telecommunication in India has greatly been supported by the INSAT system of the country,

one of the largest domestic satellite systems in the world. India possesses a diversified

communications system, which links all parts of the country by telephone, Internet, radio,

16

television and satellite.

Structure Of Indian Telecommunication Industry(source:D&B research)

Major telecom service providers in present scenario are as followed:

PUBLIC SECTOR

Bharat Sanchar Nigam Limited

BSNL is an Indian state-owned telecommunications company headquartered in New Delhi,

India. It is the largest provider of fixed telephony and fourth largest mobile telephony provider

in India, and is also a provider of broadband services. However, in recent years the company's

revenue and market share plunged into heavy losses due to intense competition in Indian

17

telecommunications sector.

BSNL is India's oldest and largest communication service provider (CSP). It had a customer

base of 95 million as of June 2011. It has footprints throughout India except for the

metropolitan cities of Mumbai and New Delhi, which are managed by Mahanagar Telephone

Nigam (MTNL).

Mahanagar Telephone Nigam Limited (MTNL)

MTNL is a state-owned telecommunications service provider in the metro cities of Mumbai

and New Delhi in India and in the island nation of Mauritius in Africa. The company had a

monopoly in Mumbai and Delhi until 1992, when the telecom sector was opened to other

service providers. "Transparency makes us different" is the motto of the company. The

Government of India currently holds 56.25% stake in the company. In recent years, MTNL has

been losing revenue and market share heavily due immense competition in the Indian telecom

sector.

BSNL - MTNL Merger Plans

On 23 February 2011, The Department of Telecommunications (DoT) said it wanted to revive a

proposal for the merger of state-owned operators BSNL and MTNL. In its draft plan, the

department while showing concern over the deteriorating performance of BSNL and MTNL

said that BSNL and MTNL should be merged as they have complimentary operations and can

combine their strengths for synergies. DoT said the government should set up a multi-

stakeholder committee to develop a restructuring plan for both firms. The committee should

have members from public enterprises, the DoT, department of IT and ministry of finance.

However, the BSNL's staff unions are opposing this merger tooth and nail realising that MTNL

is in dire state and need help of its big brother, BSNL, to alleviate itself from getting into red

balance sheet. MTNL in spite of having its operations in two big metro cities viz. New Delhi &

18

Mumbai is realising cascading fall in revenue and profits for the past 10 successive years. The

telecommunication operators should focus on enterprise business, services to government and

the public sector, value-added services and technologies like 3G, the department recommends.

PRIVATE SECTOR

AIRTEL

Bharti Airtel Limited, commonly known as Airtel, is an Indian multinational

telecommunications services company headquartered at New Delhi, India. It operates in 20

countries across South Asia, Africa and the Channel Islands. Airtel has GSM network in all

countries in which it operates, providing 2G, 3G and 4G services depending upon the country of

operation. Airtel is the world's third largest mobile telecommunications company with over 261

million subscribers across 20 countries as of August 2012.[4] It is the largest cellular service

provider in India, with 183.61 million subscribers as of November 2012.[5] Airtel is the third

largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom.

Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony

in India, and is also a provider of broadband and subscription television services. It offers its

telecom services under the airtel brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is

the first Indian telecom service provider to achieve Cisco Gold Certification

VODAFONE

19

Vodafone Group Plc is a British multinational telecommunications company headquartered in

London and with its registered office in Newbury, Berkshire. It is the world's second-largest

mobile telecommunications company measured by both subscribers and 2011 revenues (in each

case behind China Mobile), and had 439 million subscribers as of December 2011.

Vodafone owns and operates networks in over 30 countries and has partner networks in over 40

additional countries. Its Vodafone Global Enterprise division provides telecommunications and

IT services to corporate clients in over 65 countries. Vodafone also owns 45% of Verizon

Wireless, the largest mobile telecommunications company in the United States measured by

subscribers.

Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE

100 Index. It had a market capitalisation of approximately £89.1 billion as of 6 July 2012, the

third-largest of any company listed on the London Stock Exchange. It has a secondary listing on

NASDAQ.

IDEA Cellular

It is a publicly listed company, having listed on the Bombay Stock Exchange (BSE and the

National Stock Exchange (NSE) in March 2007.

Idea Cellular is a leading GSM mobile service operator with pan India licenses. With a

customer base of over 36 million in 15 service areas, operations are soon expected to start in

Orissa and Tamil Nadu-the first steps in providing pan India services covering over 90% of

India's telephony potential.

IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. The group 

operates in 25 countries, and is anchored by over 100,000 employees belonging to 25 nationalities. The 

20

Group has been adjudged 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-

Economic   Times   and   Wall   Street   Journal   Study   2007.

Idea leads all other telecom operators in India in the MNP (Mobile Number Portability) race, with a net 

gain of 10,31,380 subscribers as on 31 August 2011. 

BPL Mobile (Loop Mobile)

Loop Mobile, usually referred to as LOOP and formerly known as BPL Mobile, is a mobile

phone service provider in India. It offers both prepaid and postpaid GSM cellular phone

coverage in Assam, Kolkata, North East, Mumbai, Madhya Pradesh, Haryana, Orissa, Punjab,

Rajasthan after receiving a license to operate across 21 telecom circles by DoT

BPL Mobile Communications, established in 1994, was the India’s first mobile network

operator. It began its operations in 1995. However, BPL Mobile was renamed to Loop Mobile

in March 2009, following the expiry of its brand-use agreement with the TPG Nambiar-owned

BPL Group.

Having consistently met and exceeded TRAI benchmarks, Loop Mobile is now ISO 9001:2008

certified. The Khaitan Holding Group took ownership control in 2005. Loop Mobile has

completed over 16 years of service and today has over 3 million subscribers.

Reliance Communications (formerly Reliance Infocomm)

Reliance Communications Ltd. (commonly called RCOM) is an Indian broadband and

21

telecommunications company headquartered in Navi Mumbai, India. RCOM is the world's 15th

largest mobile phone operator with over 150 million subscribers and India's one of the largest

telecom operator in India, only after Bharti Airtel and VODAFONE INDIA. Established on

2004, a subsidiary of the Reliance Group. The company has five segments: Wireless segment

includes wireless operations of the company; broadband segment includes broadband

operations of the company; Global segment include national long distance and international

long distance operations of the company and the wholesale operations of its subsidiaries;

Investment segment includes investment activities of the Group companies, and Other segment

consists of the customer care activities and direct-to-home (DTH) activities.

It ranks among the top 5 telecommunications companies in the world by number of customers

in a single country. Reliance Communications corporate clientele includes 2,100 Indian and

multinational corporations, and over 800 global, regional and domestic carriers. The company

has established a pan-India, next-generation, integrated (wireless and wireline), convergent

(voice, data and video) digital network that is capable of supporting services spanning the entire

communications value chain, covering over 24,000 towns and 600,000 villages. Reliance

Communications owns and operates the next-generation IP-enabled connectivity infrastructure,[2] comprising over 190,000 kilometers of fiber optic cable systems in India, USA, Europe,

Middle East and the Asia Pacific region.

TATA Indicom

Tata Communications Limited ; (formerly VSNL) is an Indian global telecommunications

company located in Mumbai. It owns a submarine cable network, a Tier-1 IP network, and also

rents data center and colocation space. It operates India's largest data center in Pune. Tata

Communications acquired Teleglobe, a company based in Canada, and DishnetDSL, an Indian

company, and is the largest shareholder in South African operator Neotel. Tata

Communications currently has a cable network of more than 235,000 kilometers.

It was founded as VSNL (Videsh Sanchaar Nigam Limited) in 1986. VSNL was the first Indian

PSU to be listed in the NYSE in 2000. In 2002 Tata Communications acquired a 45% stake in

VSNL. Then in 2004 VSNL International , the international arm of VSNL, was launched. On

22

13 February 2008 VSNL, formerly owned by the Government, was taken over by the Tata

Group and renamed Tata Communications Ltd. In 2009 Tata Communications and TYCO

telecommunications complete TGN-intra Asia cable system.

AIRCEL

Aircel group is an Indian mobile network operator headquartered in Chennai, that provides

wireless voice, messaging and data services in India. It is a joint venture between Maxis

Communications Berhad of Malaysia and Sindya Securities & Investments Private Limited,

whose current shareholders are the Reddy family of Apollo Hospitals Group of India, with

Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999

and today is the leading mobile operator in Tamil Nadu, Assam, North-East India and Chennai.

It is India’s fifth largest GSM mobile service provider and seventh largest mobile service

provider (both GSM and CDMA) with a subscriber base of over 63.35 million, as of December

2012 with 62.24% of them being active. It has a market share of 7.33% among wireless

operators (includes GSM, CDMA, and FWP operators) in the country.

Aircel has also obtained permission from the Department of Telecommunications (DoT) to

provide international long distance (ILD) and national long distance (NLD) telephony services.

It also has the largest service in Tamil Nadu.

UNINOR Uninor is an Indian mobile network operator based in Gurgaon, India. The company holds

Unified Access Service(UAS) licences[1] to offer mobile telephony services in each of India’s

22 telecom circles, and has received spectrum to roll out services in 21 of these (excluding

Delhi). The company is a joint venture between Telenor Group, a telecommunications company

headquartered in Oslo, Norway, and Unitech Group, an Indian real estate company. Telenor

owns a controlling majority stake in the company (67.25%), which has been branded Uninor in

23

the Indian market.

Uninor offers mobile voice and data services based on the GSM technology, currently on a

5.4 MHz spectrum. Uninor services are commercially available in 13 circles across India. With

a ‘value for money’ proposition in the market , Uninor targets youth and other communities

within the Indian mass market.

As of December 2011, Uninor has 36 million customers and a total workforce of 14,700 people.

The company has more than 22,000 , partners in India. Uninor products and services are

available from a more than 490,000 retail outlets serviced by 1,800 distributors all over the

country.

MAJOR MARKET TRENDS

The telecoms trends in India will have a great impact on everything from the humble PC, internet,

broadband (both wireless and fixed), cable, handset features, talking SMS, IPTV, soft switches, and

managed services to the local manufacturing and supply chain. This report discusses key trends in the

Indian Telecom industry, their drivers and the major impacts of such trends affecting mobile operators,

infrastructure and handset vendors.

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of four million subscribers

added every month for the past six months itself). They prefer wireless services compared to wire-line

24

services, which is evident from the fact that while the wireless subscriber base has increased at 75 percent

CAGR from 2001 to 2006, the wire-line subscriber base growth rate is negligible during the same period.

In fact, many customers are returning their wire-line phones to their service providers as mobile provides

a more attractive and competitive solution. The main drivers for this trend are quick service delivery for

mobile connections, affordable pricing plans in the form of pre-paid cards and increased purchasing

power among the 18 to 40 years age group as well as sizeable middle class – a prime market for this

service.

Some of the positive impacts of this trend are as follows. According to a study, 18 percent of mobile

users are willing to change their handsets every year to newer models with more features, which is good

news for the handset vendors. The other impact is that while the operators have only limited options to

generate additional revenues through value-added services from wire-line services, the mobile operators

have numerous options to generate non-voice revenues from their customers. Some examples of value-

added services are ring tones download, coloured ring back tones, talking SMS, mobisodes (a brief video

programme episode designed for mobile phone viewing) etc. Moreover, there exists great opportunity for

content developers to develop applications suitable for mobile users like mobile gaming, location based

services etc. On the negative side, there is an increased threat of virus – spread through mobile data

connections and Bluetooth technology – in mobile phones, making them unusable at times. This is good

news for anti-virus solution providers, who will gain from this trend.

COMPANY PROFILE

Introduction

Communications is the Tata Group’s largest investment and the Group’s objective is to provide end-to-

end telecommunications solutions for business and residential customers across the nation, and

internationally. The Group’s communications activities are currently spread primarily over four

companies—Tata Teleservices Limited (TTSL) and its associate Tata Teleservices (Maharashtra) Limited

(TTML), Tata Communication (erstwhile VSNL) and Tata Sky. Together, these companies cover the full

range of communications services, including:

25

Telephony Services: Fixed and Mobile

Media and Entertainment Services: Satellite TV

Data Services: Leased Lines, Managed Data Networks, IP/MPLS VPN, Dial-up Internet, Wi-Fi

and Broadband

Value-Added Services: Mobile and Broadband Content/Applications, Calling Cards, Net

Telephony and Managed Services

Infrastructure Services: Submarine Cable Bandwidth, Terrestrial Fiber Network and Satellite

Earth Stations and VSAT Connectivity

Profile

Tata Teleservices is part of the INR Rs. 2, 51,543 Crore Tata Group that has over 80 companies, over 3,

30,000 employees and more than 3.2 million shareholders. With a committed investment of INR 36,000

Crore (US$ 7.5 billion) in Telecom (FY 2006), the Group has a formidable presence across the telecom

value chain.

Tata Teleservices spearheads the Group’s presence in the telecom sector. Incorporated in 1996, Tata

Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle.

Beginning with its acquisition of Hughes Telecom (India) Limited in December 2002 [now renamed Tata

Teleservices (Maharashtra) Limited], which provides services in the Mumbai and Rest of Maharashtra

telecom circles, the company has swung into expansion mode and currently has a pan-India state-of-the-

art network.

Having pioneered the CDMA 2000 technology platform in India, Tata Teleservices has established a 3G-

ready robust and reliable telecom infrastructure in partnership with Motorola, Ericsson and Lucent. The

company has also received the license from the Department of Telecommunications to launch GSM

services as well. With this launch set for early 2009, TTSL is on the threshold of emerging as a true-play

dual technology telecom operator.

In November 2008, Tata Teleservices entered into an agreement with Japanese telecom major NTT

DOCOMO, as part of which the Japanese company acquired a 26% stake in TTSL for USD 2.7 billion.

The transaction marks a key step in the strategic evolution of Tata Teleservices, as it moves towards a

pan-India dual network presence. On a broader level, the transaction is also expected to mark the

26

beginning of a relationship of broader co-operation between Tata companies and the Nippon Telegraph

and Telephone Corporation (NTT).

The potential benefits and synergies from the alliance with DOCOMO cut across marketing, handset

development and technical support, all of which are expected to create new opportunities for both

companies. The alliance will also accelerate Tata Teleservices’ GSM plans and help the company

penetrate the market with advanced technology and new VAS offerings.

Tata Teleservices’ bouquet of telephony services includes mobile services, wireless desktop phones,

public booth telephony and wireline services. Other services include value-added services such as voice

portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB

Modem, data cards, calling card services and enterprise services.

Some of the other products launched by the company include prepaid wireless desktop phones, public

phone booths, new mobile handsets and new voice and data services such as BREW games, voice portal,

picture messaging, facebook, M commerce applications, polyphonic ring tones, interactive applications

like news, cricket, astrology, etc.

STRUCTURE OF COMPANY

Departments

Tata Teleservices limited is a premium cellular phone services of Rajasthan and is committed to provide

the highest standard of services to their customer and best value for customer’s money. It operates in

twelve cities all over the state and is planning to extended it’s services to fifteen cities more within state.

It provides access to network twenty states all over India.

Tata Teleservices limited has ten major department functioning exclusively in a defined way for

achieving it’s objectives.

27

They are as follows.

Finance and Accounts Department

To look after the financial condition and cost control of TTSL

SCM Department

1. Responsible for generating and dispatching the bills

2. Updating the clients lists.

Human Resource Department

1. To plan the manpower requirements of the organization.

28

2. Select and recruit the personnel.

3. To assess and evaluate the performance of the personnel.

4. Training and development.

5. To maintain the personnel data.

6. Development of the promotional policies.

Marketing Department

1. Market research and planning of promotional activities for the customer.

2. Pricing vis- a – vis the changing environment

Customer Care Department

1. To sort out the customer’s problem.

2. To handle the queries of the subscribers.

Legal Department

To handle the legal process and requirements.

Network Department

To look for the network and network related problems.

ISIT Department

To look after the computer and computer related problems.

Operation Support Department

To look after all the operations that is taking place within the company.

Sales Department

29

To increase the number of quality subscribers on the network.

Products and Services

VOICE SERVICES

- Fixed-wire phone connections

- Integrated Services Digital Network

- Centrex (central exchange)

- E1 links

- Managed leased lines

- Web conferencing

- Tata Indicom E1 PRI

- Tata Indicom Managed Voice

30

- Tata Indicom CDMA Mobile

- Insta CC

DATA SERVICES

Tata Indicom Business Messaging and Collaboration Services

Tata Indicom Ethernet WAN Services

Tata Indicom Virtual Private Dial-up Network (VPDN)

Tata Indicom National Private Leased Circuit (NPLC)

Tata Indicom Broadcasting Services

Broadband services

Tata Indicom Internet Access

Tata Indicom Internet Leased Lines (ILL)

Tata Indicom International Private Leased Circuit (IPLC)

Tata Indicom Managed Network Services

Tata Indicom Data Centre Hosting

VOICE SERVICES

Fixed-wire phone connections

Tata Indicom offers wire-line phone connections in which telephones are connected to the Tata Indicom

exchange by a combination of high-technology fibre-optic and copper cables. Fibre-optic cables enable

our network to handle higher capacities of load compared with ordinary cables, and at much higher

transmission speeds.

Integrated Services Digital Network

ISDN services from Tata Indicom delivers features such as:

31

Calling-line identity presentation: Allows customers to identify the calling party's number.

Calling-line identification restriction: Allows customers to withhold your identity / telephone number

from the called party.

Multiple subscriber number (MSN): Allows customers to connect eight phone instruments on the

same line, each of which will have its own unique telephone number.

Call-forwarding services: Allows customers to forward incoming calls to another number under

different criteria, such as 'subscriber busy' and 'unavailable'. Calls can be forwarded unconditionally

too.

Centrex (central exchange)

Centrex is a productivity booster that helps customers utilise facilities similar to those offered by an

EPBX, while also retaining the benefits of a direct line

Types of Centrex services offered:

Single-switch, single-site Centrex: All the Centrex lines within the group will be located in a single

premises and will be covered by a single exchange.

Single-switch, multi-site Centrex: The Centrex lines taken by the group can be located in multiple

premises within the same exchange area.

Multi-switch, multi-site Centrex: The Centrex lines taken by the group can be located in multiple

premises (even in different cities), without any restriction of the switching area.

E1 links

This is an ideal solution for big business users who require a large number of telephone lines on their

EPBX system. An E1 link is a 2-Mbps data circuit that can carry 30 voice / data channels.

Managed leased lines

There are point-to-point dedicated lines with speeds starting at 64 Kbps and reaching 2 Mbps. They can

also be used for internet bandwidth access as a point to ISP connectivity.

Web conferencing

32

This is a service that allows customers to give group presentations over the internet to a geographically

dispersed audience. Web conferencing works in conjunction with teleconferencing.

Tata Indicom Managed Voice

Our Managed Voice solution is ideal for Call Centres. It offers telephony via packetised IP protocol. This

toll quality IP based voice service has been known to reduce communication bills since it follows a

flexible pay per use model.

Tata Indicom E1 PRI

Our E1 PRI is a digital telephony service that allows you to have an increased number of direct numbers

without a corresponding increase in telephone lines. These digital lines enable you to optimize your

telecom infrastructure. Continuous monitoring of E1 links and regular traffic reports ensure smooth

running.

Tata Indicom CDMA Mobile

Tata Indicom Mobile telephony is based on the latest CDMA 3G-1X technology that offers superior voice

clarity and congestion-free networks, In true Tata tradition, it is tried, tested and trusted, offering you

great value for money. You can make calls to and receive calls from any landline, GSM or CDMA mobile

phone from any other network in any part of the country or the world.

InstaCC

Insta CC is the on-demand hosted contact centre solution from Tata Indicom powered by CosmoCom, the

choice of service providers worldwide. Insta CC benefits you with a unified, scalable and managed

portfolio of contact centre applications. Integrated with VSNL's high capacity and reliable global voice

and data network, Insta CC is backed by rapid deployment and customer-focussed expert support.

DATA SERVICES

Tata Indicom Business Messaging and Collaboration Services

33

Messaging solutions help enterprises upgrade messaging environments. In optimizing core applications

such as ERP, CRM, SCM and ECM, Tata indicom's Business Messaging solutions and Collaboration

Services greatly enhance business performance.

Tata Indicom Ethernet WAN Services

Ethernet is a critical driver in the next generation of global networks – delivering unrivaled benefits in

flexibility, scalability and reduced TCO. Tata Indicom’s Global Ethernet services enable a flexible and

cost-effective WAN than alternate solutions such as ATM and Frame Relay; with associated SLAs that

ensure no compromise to reliability, performance or manageability.

Tata Indicom Virtual Private Dial-up Network (VPDN)

VPDN is used in general for connectivity needs at remote sites-dealers, travel agents, CFAs, mobile e,

etc. lt offers a low cost and flexible solution for sites where infrequent/periodic xecutives access is

require.

Tata Indicom National Private Leased Circuit (NPLC)

Point-to-point, dedicated domestic connectivity for data and voice network, NPLC takes care of the

security of data. This connectivity can be used to transfer huge volumes of data for applications like

centralised ERP, databases, mail, etc which are accessed by branches or business partners on a regular

basis.

Tata Indicom Broadcasting Services

This is an uplinking service for TV channels where the original program feed can be transmitted from the

production site to reach viewers. We have a comprehensive and robust platform available that offers TV

uplinking services to a series of media channels.

Broadband services

Tata Teleservices and VSNL, through the brand Tata Indicom, offer high-bandwidth, reliable, secure and

cost-effective internet connectivity on broadband asynchronous digital subscriber lines (ADSLs).

Businesses in industry segments such as information technology, hospitality, travel, logistics, stock

broking and finance use these services.

Tata Indicom's broadband services include:

34

Speed DSL internet service plan — the first choice for high-speed internet connectivity with a pay-as-

you-use tariff plan.

Value internet service plan — connects customers on 1:4 compressed internet bandwidth with flat-

rate billing.

Gold internet service plan — connects customers on 1:1 dedicated premium internet bandwidth with

flat-rate billing.

. Tata Indicom Internet Access

Access to the Internet offered through various methods-Leased Line, PSTN dial-up, ISDN, DSL, RF, etc.

Tata Indicom Internet Leased Lines (ILL)

Internet Leased Lines are a high speed, flexible bandwidth solution that provide Internet Access

anywhere, any time. Available as Standard, Shared, Compressed or Premium services with multiple Bit

Rates ranging from 64Kbps to STM1, these lines are available 24x7 in the required bandwidth and are

therefore an economical solution for data transfer applications which are not security and delay sensitive.

Tata Indicom International Private Leased Circuit (IPLC)

IPLC is a premium point-to-point service used by corporates who want dedicated international

connectivity with committed bandwidth. This has significant use in the IT and ITeS segments

It is used largely by the Indian arms of various MNCs operating in India to connect to their regional or

global headquarter

FINANCIAL STRATEGIES

Introduction

Finance is like the “blood in the body and oil in machine.” It deals with all the monitory transaction of

business.

Business finance is that activity which is concerned with the acquisition and conservation of capital funds

in meeting financial needs and overall objective of a business enterprise. Activity concerned with

35

planning, raising, controlling and administering of the funds used in the business and financial affairs of

the firm in most effective and efficient manner.

Broad area related to finance are:

Funds requirement decision: Carefully estimation of total funds.

Financial decisions: Identify the source of funds.

Inventory decisions: Evaluate different capital investment.

Dividend decisions: Related to all dividend policies of business.

The objective of the firm is to maximize shareholders wealth as they are the ultimate owners of the

firm. This department in the company is representative agents of shareholders and follows policy

which will increase value of stake in the business.

Finance policy involves proper deployment of resources such as material, capital and labour.

The function performed by finance department:

All the payment made to vendors/ employee/ capital suppliers.

Audit function:

INTERNAL AUDIT: Outsource agencies come and Check the records of company.

STATUTORY AUDIT

TAX AUDIT

FINANCE FUNCTION

Finance function is of four types:

I. Recurring Finance Functions: Performed for effective co- ordination and completion of

objectives of the firm.

Planning of funds

Raising of funds

Allocation of resources

Control of funds

36

Allocation of income

Co- ordination with other departments

II. Non Recurring Finance Function: Performed on the occurrence of the special events.

Managing assets

Valuation of assets

Liquidity functions

Forecasting cash flows

Re- adjustment

Routine Functions: performed by lower level employees.

Management of credit transactions

Keeping records of transactions

Administration of pension and welfare schemes

Supervision of receipt of cash and its disbursement

Safety of securities

Profitability Functions: For management of profit.

Cost control

Pricing

Forecasting future profits

Measuring cost of capital

ROLES AND RESPONSIBILITIES

ROLES:

I. Financial analysis and performance Appraisal:

Analysis of Financial Condition and Performance

37

Financial Forecasting and Planning

Financial control

Analysis of accounts

II. Financing Decisions:

Management of income

Cash management

Credit management

III. Investing Decisions:

Restructuring Decisions

Capital Investment Decisions

IV. Dividend Decisions:

Audit

Preparation of cost accounts

Interpretation of cost accounts

V. Collection and Recovery

Keep the exposure under pre- defined limits

Manage collection and recovery operations

Manage Proactive and Reactive Retention Activities

Ensure Implementation

RESPONSIBILITIES:

I. Sales Accounting:

Channel sales

38

Commission finalization

Stock Reconciliation

Branch Liaison

II. Financial Accounting:

Preparation of cockpit report

Preparation of monthly budgets

Preparation of monthly COCO(Cost of customer Acquisition)

Processing of Imprest and Suppliers bills

Revenue Reconciliation

Stock Reconciliation

Bank Reconciliation

III. Capitalization:

Maintaining records for all capex items

Channel Payouts

IV. Balancing cost and revenue

V. Adequate return on shareholders funds

VI. Control of Financial Resources

VII. Adherence of various laws

VIII. Protection of Creditors Interest

IX. Protection and Promotion of Employees Interest

X. Formulation of Long- term Financial Plan

XI. Sales of Securities

39

REIMBURSEMENT

Policies

Domestic Traveling Allowance

It is a important task for a company and employees who’s worked in a company. Employees whom are

sent out of station on the cost of company they are provided with compensation from the company

according to the policy terms and condition lay down.

Hence one was given a chance to audit all the employees; bills whether they are according to the terms

and conditions of the company .These bills are then updated in SAP and these bills are attached with the

40

sap code print with the bills and they are arranged according to the sap codes then the cheque is passed in

the name of employees and they are paid the compensation.

Domestic travel policy is applicable to all the employees. Domestic policy has differentiated in some

part.

On the basis of level of Employees:

All employees have been classified under the following categories for the purpose of domestic travel:

Category Level Designation

1 MD/CEO &MO MD/Chief Executive Officer, President/chief Officer

2 M1 & M2 Vice President & General Manager

3 M3 & M4 Senior Manager & Manager

4 M5 & M6 Assistant Manager & Senior Executive

5 M7 & M8 Executive & officer

On the basis of cities for the purpose of Domestic Travel

For the purpose of domestic business travel, all the cities have been classified under the following

categories.

Class Cities

A Mumbai, Delhi, Kolkata, Bangalore, Chennai and Hyderabad

B Capital of all States/Union Territories other than those under Class A cities above. Agra,

Varansai and Ahmedabad.

C All other Cities/ Towns

The entitlements for hotel accommodation applicable to different categories of employees in different

cities are listed below.

41

Category of Employees Class of Cities

A B C

Rs. Per night stay

1 Actuals Actuals Actuals

2 Up to Rs.5600 Up to Rs. 5000 Up to Rs. 3750

3 Up to Rs.3750 Up to Rs. 3100 Up to Rs. 1900

4 Up to Rs.2500 Up to Rs. 1900 Up to Rs. 1250

5 Up to Rs.1900 Up to Rs. 1250 Up to Rs. 950

On the basis of Daily Allowance/Private stay Allowance

In case the employee stay in a hotel, he/ she shall be eligible for reimbursement on some meals

outside the hotel, reimbursement can be claimed @1/3rd of the daily allowance mentioned in the table

below for each meal consumed outside the hotel.

Category of Employees Daily Allowance

Class A Cities Class B Cities Class C Cities

1 Actuals Actuals Actuals

2 1000 800 650

3 750 600 500

4 500 400 325

5 300 250 200

The daily Allowance has to be claimed with supporting bills/ vouchers. Daily Allowance will exclude

laundry and local conveyance.

Employees can also claim reimbursement of incidental expenses like tips, reading material, personal

phone call etc. as per the limits mentioned below:

Category of Employees Incidental Expenditure(Rs. Per day)

1 Actual

2 100

42

3 75

4 60

5 50

Employees making their own private arrangement will be eligible for private stay allowance. This

will be an all Inclusive allowances, except expenditure on local conveyance. The entitlements for

private stay allowance, as applicable to different categories of employees in different cities is listed

below:

Category of Employees Private Stay Allowance (Rs. Per day)

Class A Cities Class B Cities Class C Cities

1&2 1200 950 750

3 950 750 600

4 700 550 425

5 500 400 300

RELOCATION POLICY

Travel Expenses

If a new joinee is relocating to the location of posting, he/she will be reimbursed travel expenses for self

and family as per the guidelines laid down in the Domestic Travel Policy. ‘Family’ for this purpose is

defined as spouse, children, and employee’s dependent parents.

Accommodation:

The new joinee will be entitled to transit accommodation for self and family for a maximum period of

two weeks at a company guesthouse/service apartment, or if unavailable at hotel as per the entitlement

43

prescribed under the Domestic Travel Policy.

The new joinee will also be entitled to Daily Allowance for self and accompanying family members as

per the provisions of the Domestic Travel Policy in case of stay in a hotel. In case the new joinee makes

his/her own arrangements for staying till such time he/she locates a house, he/she will be entitled to

Private Stay Allowance as per the provisions of the Domestic Travel Policy. The number of days for

which Private Stay Allowance will be paid will not exceed the limits for company provided

accommodation as provided above.

For any stay in guesthouse/hotel accommodation beyond the approved period, the employee will not be

paid any House Rent Allowance or expenses incurred on providing the guest house/hotel accommodation

will be recovered at actuals, whichever is higher.

Coneyance

All new joinees at Vice President level and above who are eligible for a company provided car will be

provided with a pool/hired car till the time the car is allotted to him/her, subject to a maximum of two

weeks from the date of relocation.

New joinees who are eligible for company car or cash in lieu there of will be reimbursed charges towards

vehicle re-registration on actuals (on production of supporting documents) when relocating to a different

state.

Transportation of Household Articles And Vehicle:

The reimbursement of expenses would be limited to transportation of personal effects by one truckload,

unless specifically approved by CHRO. In ddition, the transportation cost of one vehicle will be

reimbursed for new joinees at the level of Senior Managers and above. Actual expenses incurred on

packing, loading, insurance (as normally charged by the insurance companies), octroi, and unloading will

be reimbursed. In all cases, three quotes are to be submitted to the Location Administration Department

for approval.

Recovery

In case an employee leaves the services of the Company within one year of joining after availing of the

above facility, the expenses borne towards the re-location would be recovered on a pro rata basis.

Advance

Employees not entitled to company leased accommodation will be entitled to an advance of not more than

three months house rent allowance (or as approved by CHRO for individual locations) towards taking up

44

suitable accommodation. This advance will be recovered in ten equal monthly installments.

TELEPHONE POLICY

Policy on Company Provided Mobile Connection

All employees of Level M8 and above will be reimbursed for one mobile handset in every two years &

will also get one company provided connection

Level –wise eligibility for the same would be as follows

Handsets: The handsets amount will be reimbursed by the company within the following ceiling Limits –

LevelRevised Limits of Handset

with accessories* (Rs.)

M7 & M8 Rs.3,000/-

M5 &M6 Rs.6,000/-

M4, M3 & M3ARs 9000/-

M2 & M2A Rs. 10000/-

M1 & aboveActuals

Employees at all levels have to purchase a handset, which works on company network. However, in cases

where the employee opts for a handset higher than the limits indicated, the differential amount will need

to be borne by the employee only

Monthly limit: The monthly limit for usage of the mobile phone, inclusive of rental charges, call charges

(official & local personal calls), VAS usage charges (if any), taxes etc would be as under:

Level Limit in Rs/Month

45

M5 & below Rs.750/-

M3A, M3 & M4 Rs.1,200/-

M1A, M1, M2A & M2 Rs. 2500/-

M0 Actuals

Resignations / Transfers:

Following criteria will be applicable for the recovery of reimbursed amount on resignation of employee.

Tenure in TTSL after getting

new mobile

% Reimbursed amount recovered as part of

Final settlement

< 6 Months 100 %

> 6 Months < 12 Months 75 %

> 12 Months < 18 Months 50 %

> 18 Months 0%

POLICY ON ADVANCE SALARY

To lay guidelines for provision of advance against salary in order to offset the financial burden caused by

personal exigencies. This policy is applicable to all confirmed employees who are on the rolls of the

Company at the time of application for salary advance.

The salary advance can be availed only after completion of 12 months after repayment of the previous

salary advance. The personal exigencies for which an employee can apply for a salary advance under this

policy are:

Medical emergency for self or family member.

School admission of children.

Higher education of self or immediate family member.

46

Temporary housing assistance in case of flood, fire and other perils.

Death of a family member.

Other exigencies.

The amount of Salary Advance will be equivalent to two months’ net salary of the employee at the time

of application. Definition of Net Salary: Net salary is the difference between gross earnings and gross

deductions.

Recovery

The advance sanctioned will be recovered over a period of upto 6 equated monthly deductions from the

salary commencing in the subsequent month.

Note -: Any tax incidence arising out of the salary advance will be to the employees account.

LOCAL OFFICIAL TRAVEL

Entitlements

The entitlements for reimbursement of local conveyance expenses will be regulated as under:

For employees who are not entitled for company vehicles:

Category Entitlement

Managers, Assistant Managers,

Senior Executives, Management/Graduate

Engineer Trainees

Employee to use metered taxis or autos/bus/train and

claim reimbursement at actuals or use own car and

claim reimbursement @ Rs.6.50 per km or use own

two-wheeler and claim reimbursement @ Rs.3.00 per

km.

Executives, Officers and Other

Trainees

Employee to use autos/bus/train and claim

reimbursement at actuals or use own two-wheeler and

claim reimbursement @ Rs.3.25 per km.

For employees who are entitled for company car/cash in lieu thereof

Category Entitlement

47

Employees entitled for Cash in

lieu of Company Car

Employee to use own car and claim reimbursement @

Rs. 6.50 per km or use metered taxis and claim

reimbursement at actuals

Employees provided

Company Car

with

Level M1 & above: Employee to use company

provided car. In case of non-availability of Company

Car on account of repairs/servicing, employee can

requisition for a pool/hired car.

Level M2: Employee to use company provided car. In

case of non availability of Company Car on account of

repairs/servicing, employee can use metered taxis and

claim reimbursement at actuals.

Level M3: Employee to use company provided car and

claim reimbursement @ Rs. 6.5/Km. In case of non

availability of the car on account of repairs/servicing,

employee can use metered taxis and claim

reimbursement at actual.

Where the employees uses company car / own vehicle for official work, darking / toll charges can be

additionally claimed at actuals.

Refreshment Expenses

If an employee is out on official work for 4 hours or more, he/she can claim reimbursement of

expenditure incurred towards meals and other miscellaneous expenditure upto Rs.60/- per day.Claims can

be made once every month which should be duly authorized by the reporting Manager (not less than a

Senior Manager) to whom the employee reports. It shall be the responsibility of the reporting manager to

verify the correctness of the claim. In case of incorrect claims, the employee shall be liable for strict

disciplinary action.

48

49

PROCESS FLOW DESCRIPTION

All claims for

reimbursement is made

Submission of duly

approved claim for

reimbursement of

following expenses:

1. Conveyance

Expenses

Reimbursement

2. Travel Expenses

Reimbursement

3. Other imprest

Expenses

Reimbursement

Checking the voucher

for supporting bills and

authorization.

Checking the receipt,

reports etc.

Processing of payment

request:

Ensuring whether

DURATION RESPONSIBILITY

Employees

Finance

INPUT- OUTPUT &

EXCEPTION

Ticket

Receipts

Reports

Original Bills

Credit Card

Details (If

payment is by

Credit Card)

Details of daily

Food/Conveyance/

Hotel Expenses

Separately

50

Start

Receipt of claim for Reimbursement of Expenses

Checking of Claim

Processing of Payment Request

PROCESS

requisite format is

attached.

Checking the

entitlement as per HR

policy

Updating the employee

entitlement records

Approval as per

Schedule of Authority

PROCESS FLOW DESCRIPTION

If accepted then further

processed

If not accepted then:

Either it is cancelled

OR

Resending of claim to

employees if the claims

are not appropriate or

not according to the

formal/ policy.

Preparation of cheque/

DD.

DURATION

Within 2

Days

Within 2

days

RESPONSIBILITY

Finance

Finance

INPUT- OUTPUT &

EXCEPTION

Cheque/ DD

51

Request

accepted

Preparation of cheque/ DD

Payment to Employees

End

Finance Dept, handover

the cheque/DD to

employees

On every

Friday of the

every week,

if claim is

received till

Thursday of

the month

Finance

Cheque/ DD payment

RESEARCH METHODOLOGY

During the project time in the company there was scarcity of time. So for data collection, it was necessary

that analytical type of research was used and hence mainly two method were used, viz.,

1. Observation method

2. Interview method

Both the methods were used in supplementary manner to accomplish each other.

1. Observation method: Despite of being an expensive method of data collection, observation method

is a preferred one because:

Subjective bias ness (due to secondary data sources) is eliminated.

Information collected is related to what is currently happening on the spot.

And more specifically, during the company visits, sometimes all the respondents or employees

are not completely co-operative or are not much capable or willing (due to one reason or other) to

provide complete/bias-free/relevant information needed by the researcher.

In such cases, observation supplements the interview in collecting the data and analyzing them to convert

them into relevant information.

This type of observation becomes necessary for data collection because/so that:

We should be enabling to record the natural behavior of the group, actual work-flow and

processing of the company/manufacturing unit/ organization under consideration.

52

Increased interests in carrying the research so that more and more relevant information can be

gathered accurately and without any bias-ness in minimum time available.

To verify the truth of statements made by informants during the interviews.

But care need to be taken during the participant observation is that objectivity of research should not be

lost due to facts observed. In other words, whatever is observed should be integrated with the objectives

or purpose lying behind the research.

Participants become essential also because the observation is controlled observation, which takes place

according to definite pre-arranged financial plans, involving experimental procedures. In controlled

observation we use precision instruments as it aids to accuracy and standardization.

So both the observation and interviews need to be used for data collection to supplement each other.

2. Interview: Interview conducted during the company visit were mainly personal interviews of spoke

person of the finance department of the company. These were unstructured interviews. Since we had

to collect more and more information in limited time period, it was essential to construct or design a

few question and sequence of questions to be asked during the interview.But on the same hand, it is

also necessary that we can omit certain questions if the situation so requires. The interview needs to

be flexible enough so that we can record responses to include some aspects and exclude others. So the

interviews need to be structured as well as unstructured one.

The research methodology includes the overall procedure which is followed in research study:

1. Titles

2. Objective

3. Goals

4. Nature of study

5. Sources of data

A brief explanation is as follows:

1. Titles:

“A Detailed Study on Employee Reimbursement Programme in Tata Teleservices Ltd. Jaipur for

Effective Business Operation.”

2. Objective:

53

To find out products satisfaction level among customer.

To assess growth potential of tata indicom.

To find out the need of lease requirements or rent requisition.

To know the sources of purchase (True value hub and true value shop) of tata indicom.

3. Goal:

“To enhance corporate value,” without taking excessive financial risk.

4. Nature of study:

These are three types research namely exploratory, descriptive or diagnostic and casual. The present study

is descriptive in nature with an applied basis.

Exploratory Research: Exploratory Research is that of formulating a problem for more precise

investigation or of developing the working hypothesis from an operational point of view.

Descriptive Research: Descriptive research are those which are concerned with describing the

characteristics of a particular individual, or of a group, whereas diagnostic research studies determine the

frequency with which something occurs or its association with something else.

5. Sources of data:

Data is of mainly two types:

Primary data

Secondary data

Primary data: It is collected by personal interview and discussion with customer, distributors and

private dealers.

Secondary data: It is collected by various sources such as at census, website and literature of tata

indicom etc.

54

DATA INTERPRETATIONSWOT Analysis:

Strength:

1. Tata indicom refers you a range of products and services to suit your needs so you always connect.

2. Tata indicom find the perfect solution for us business communication needs.

3. Tata indicom range of products and services at the most convenient location near you.

4. Tata indicom provide better facilities and plans which are less cheaper.

Weakness:

1. The new market that need to be excavated.

2. The connectivity is not easily available in rural area.

Opportunity:

1. TTSL was the first company which offers CDMA mobile services.

2. Tata indicom iaunched the talk world plan, an international long distance plan.

3. Tata is also providing wireless landline phone services by the brand name of walky.

4. The technology was very advanced.

5. Mobile internet services.

Threat:

55

1. The company challenges are to address the significantly increased in the international telephony and

related services segments.

2. Tata is the direct competitors with Reliance communication in India.

CONCLUSIONS

After the study on “Employee Reimbursement Program for the proper business functioning”. The

regular reimbursement of the expenses is very important.

Very often it is found that the employees are claiming fake expenses which have not be born by them

still they present the bills and get it reimbursed.

The policy of the company is found to be lacking some basic features such as simply giving 1/3 of the

Dearness allowance to a employee if he stays in any hotel and have food out of hotel.

The approving authority are having lot of bills to approve in every department and some of the

employees takes the liberty to get their bills approved by their Sr. Manager and the Finance

department can’t raise any objection on the employee as he has already got approved his bill.

Proper watch should be kept on the availability of the guest house of the company because the

employees stay in Hotel even after there is space in guest houses. This simply increases cost to the

company.

Bills are to be presented every next month for the reimbursement according to the company’s policy

but they are presented even after 4 month later and they are entertained.

56

Secondly, the ever increasing demand for bandwidth efficiency, higher data rate and new services

has motivated the customer but new technology services like both CDMA and GSM in a single

mobile is also important for sharply increase the growth the market share.

Establishment of more true value hub in village area to generate the awareness about the use of better

mobile services among the customer.

RECOMMENDATIONS

Finance within an organization is all about helping accompany manage its money, to run the business,

grow the business, make acquisition, payments of expenses in timely manner and manage cash. The

key to a successful finance is performing will in business wit a long term view of what going to make

your company successful.

Different person should be appointed for cross checking of the bills presented.

Every month the daily report of the availability of the guest should be forwarded to the administration

department.

Bills should be returned back if they are presented for the reimbursement not in specified time by the

company.

To provide a fair rate of return to the supplier of capital.

To coordinate the activities of the finance department with the activities of other department of the

organization.

Financial control is required for the successful execution of objectives, polices and program’s

established under the financial plan.

Some incentive scheme should be introduced for the employees who help company in cost cutting.

57

Proper identification should be made through any survey or so for the distance between two places so

that the employees can’t demand unnecessary expenses.

To provide better facilities and plans which are less cheaper.

To provide adequate and appropriate compensation and services to the employees.

BIBLIOGRAPHY

1.    www.tatateleservices.com

2. www.wikipedia.com3. www.google.com4. www.indiatelecomworld.com

5.    www.tata.com

6.    www.telecomupdates.com

7.    www.google.com

8. www.bambooweb.com

58

59