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 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

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
a. Introduction
b. Corporate Mission and Values
c. Group of Companies
2. Introduction of Telecom Industry
3. Company Profile
a. Introduction
b. Structure of Company
c. Departments
d. Products and Services
4. Observation
a. Financial Strategies
i. Introduction
ii. Functions
iii. Roles and Responsibility
iv. Finance Package for accounting in SAP
b. Reimbursement
i. Reimbursement Policies
ii. Reimbursement Process
c. Research Methodology
d. Data Interpretation
5. Conclusion
6. Recommendations
7. Bibliography

Organization
The 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.

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 worlds secondlargest manufacturer of soda ash and Tata Communications is one of the worlds 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.
Founded by Jamsetji Tata in 1868, Tatas 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,
Indias first software company, and Tata Motors, which made Indias first indigenously

developed car, the Indica, in 1998 and recently unveiled the worlds 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 developmentrelated 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 worlds 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.

Corporate Mission and Values

Purpose
7

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 Values
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
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.

Services
10

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.

Titan Industries manufacturers of Titan watches

Trent (Westside)
11

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

Tata Communications, formerly VSNL, the Indian telecom giant, was acquired in 2002.
Tata-owned VSNL acquired Teleglobe in 2005.

12

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
TELECOMINDUSTRY
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
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
14

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)
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
15

1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and longdistance 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,
television and satellite.

16

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
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
17

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 & 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.

18

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

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

19

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 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.

20

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 Indias 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

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

21

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 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

22

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 Indias 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 Indias 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 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.

23

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.

MAJORMARKETTRENDS
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
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

24

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 valueadded 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 Groups largest investment and the Groups objective is to provide end-toend telecommunications solutions for business and residential customers across the nation, and
internationally. The Groups communications activities are currently spread primarily over four
companiesTata 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:

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
25

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 Groups 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-theart network.
Having pioneered the CDMA 2000 technology platform in India, Tata Teleservices has established a 3Gready 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
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
26

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 customers money. It operates in
twelve cities all over the state and is planning to extended its 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
its objectives.
They are as follows.

27

 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.
2. Select and recruit the personnel.
28

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 customers 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
Tata Indicom CDMA Mobile
Insta CC

30

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:
Calling-line identity presentation: Allows customers to identify the calling party's number.
31

 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 Indicoms 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-asyou-use tariff plan.
Value internet service plan connects customers on 1:4 compressed internet bandwidth with flatrate 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
36

Control of funds

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:

37

I.

Financial analysis and performance Appraisal:

Analysis of Financial Condition and Performance

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

38

RESPONSIBILITIES:
I.

Sales Accounting:

Channel sales
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

39

IX.

Protection and Promotion of Employees Interest

X.

Formulation of Long- term Financial Plan

XI.

Sales of Securities

REIMBURSEMENT
Policies
Domestic Traveling Allowance

40

It is a important task for a company and employees whos 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
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
1
2
3
4
5

Level
MD/CEO &MO
M1 & M2
M3 & M4
M5 & M6
M7 & M8

Designation
MD/Chief Executive Officer, President/chief Officer
Vice President & General Manager
Senior Manager & Manager
Assistant Manager & Senior Executive
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.

A
B

Class

Cities
Mumbai, Delhi, Kolkata, Bangalore, Chennai and Hyderabad
Capital of all States/Union Territories other than those under Class A cities above. Agra,

Varansai and Ahmedabad.

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
Rs. Per night stay
Actuals
Up to Rs.5600
Up to Rs.3750
Up to Rs.2500
Up to Rs.1900

1
2
3
4
5

B
Actuals
Up to Rs. 5000
Up to Rs. 3100
Up to Rs. 1900
Up to Rs. 1250

C
Actuals
Up to Rs. 3750
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
Class A Cities

Daily Allowance
Class B Cities

Class C Cities

Actuals
1000
750
500
300

Actuals
800
600
400
250

Actuals
650
500
325
200

1
2
3
4
5

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
1
2
3
4
5

Incidental Expenditure(Rs. Per day)

Actual
100
75
60
50
42

 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
1&2
3
4
5

Class A Cities
1200
950
700
500

Private Stay Allowance (Rs. Per day)

Class B Cities
Class C Cities
950
750
750
600
550
425
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 employees 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
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

43

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

TELEPHONE POLICY
Policy on Company Provided Mobile Connection
44

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
Level

Revised Limits of Handset

with accessories* (Rs.)

M7 & M8

Rs.3,000/-

M5 &M6

Rs.6,000/-

M4, M3 & M3A

Rs 9000/Rs. 10000/-

M2 & M2A
M1 & above

Actuals

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

M5 & below

Rs.750/-

M3A, M3 & M4

Rs.1,200/-

M1A, M1, M2A & M2

Rs. 2500/-

M0

Actuals

45

Resignations / Transfers:
Following criteria will be applicable for the recovery of reimbursed amount on resignation of employee.
Tenure in TTSL after getting

% Reimbursed amount recovered as part of

new mobile

Final settlement

< 6 Months
> 6 Months < 12 Months
> 12 Months < 18 Months
> 18 Months

100 %
75 %
50 %
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.

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.

46

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,

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

Senior Executives, Management/Graduate

claim reimbursement at actuals or use own car and

Engineer Trainees

claim reimbursement @ Rs.6.50 per km or use own

two-wheeler and claim reimbursement @ Rs.3.00 per
km.

Executives, Officers and Other

Employee

to

use

autos/bus/train

and

claim

Trainees

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

Employees entitled for Cash in

Employee to use own car and claim reimbursement @

lieu of Company Car

Rs. 6.50 per km or use metered taxis and claim

reimbursement at actuals

Employees provided

Level M1 & above: Employee to use company

Company Car

provided car. In case of non-availability of Company

with

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,

47

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
PROCESS FLOW

DESCRIPTION

DURATION

RESPONSIBILITY

INPUT- OUTPUT &

EXCEPTION

Start

Receipt
of
claim
for
Reimbursement
of Expenses

All

claims

for

reimbursement is made
Submission
approved

of

duly

claim

for

reimbursement

Employees

of

following expenses:

Ticket

Receipts

Reports

Original Bills

Credit Card
Details (If payment

1. Conveyance

is by Credit Card)

Expenses

Reimbursement
Checking
Claim

of

Food/Conveyance/

2. Travel Expenses

Hotel Expenses

Reimbursement

Separately

3. Other imprest
Expenses
Reimbursement
Processing
Payment
Request

of

Checking the voucher

Finance

for supporting bills and

authorization.
Checking the receipt,
reports etc.

Processing of payment
request:
Ensuring
requisite

whether
format

Details of daily

is
50

PROCESS FLOW

DESCRIPTION

DURATION

RESPONSIBILITY

INPUT- OUTPUT &

EXCEPTION

Reque
st
accept
ed

If accepted then further

processed
If not accepted then:

Within

2 Finance

Either it is cancelled Days

OR
Preparation
cheque/ DD

of

Resending of claim to
employees if the claims
are not appropriate or
not according to the
formal/ policy.

Payment
Employees

to

Preparation of cheque/
DD.

Finance
Within

Cheque/ DD

days

Finance Dept, handover

the

cheque/DD

employees

Cheque/ DD payment

to On

every

Friday of the Finance

every week,
if

End

claim

received

is
till

Thursday of
51

the month

52

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.

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.
53

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:

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.
54

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.

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DATA INTERPRETATION
SWOT 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:
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.

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

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.

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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 programs
established under the financial plan.
Some incentive scheme should be introduced for the employees who help company in cost cutting.
Proper identification should be made through any survey or so for the distance between two places so
that the employees cant demand unnecessary expenses.
To provide better facilities and plans which are less cheaper.
To provide adequate and appropriate compensation and services to the employees.

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BIBLIOGRAPHY
1.

www.tatateleservices.com

2.

www.wikipedia.com

3.

www.google.com

4.

www.indiatelecomworld.com

5.

www.tata.com

6.

www.telecomupdates.com

7.

www.google.com

8.

www.bambooweb.com

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