Professional Documents
Culture Documents
PROJECT REPORT
ON
FOR
M T S
SISTEMA SHYAM TELESERVICES Ltd.
SUBMITTED TO
SUBMITTED BY
(BATCH : 2009-2011)
JALGAON-425001
M T S
Ref.No. DATE:
This is to certify that Mr. PREM KUMAR SINAH a MBA Student of Department of management
studies,
North Maharashtra Univesity, Jalgaon, Maharashtra has undergone training and completed a project
on
“EMPLOYEES AND VENDOR PAYMENT MANAGEMENT SYSTEM” in Bihar- Jharkhand region.
He has carried out this project for M T S (Sistema Shyam Teleservices Ltd.) from 010/05/2010 to
30/06/2010.
In the span of project duration his candidature was found to be very sincere &
hardworking.
(sign)
Mr. Sanjeev Kr. Sinha
Head Of Finance Dept.
M T S. Patna
Seal
DECLARATION:
I, PREM KUMAR SINHA, hereby declare that the Project entitled “EMPLOYEES AND VENDORS PAYMANT
MANAGEMANT SYSTEM” carried out at M T S (Sistema Shyam Teleservices Ltd.) is a genuine work for
the
fulfillment of Master in Business Administration of Department of Management Studies, North
Maharashtra
University, Jalgaon (M.S.) and will be solely for the academic
purpose.
To the best of my knowledge any part of this context has not been submitted earlier for any degree, diploma
or
certificate
examination.
ACKNOWLEDGEMENT:
I readly acknowledge my indebtedness to the finance department of M T S (Sistema Shyam Teleservices Ltd.)
in
which I did my summer training. I am grateful to FR Head ‘Mr. Sanjeev Kr. Sinha’ who gave me golden opportunity
to
do training in the channel. I am also grateful to him for motivating and encouraging me at every step. I deeply
extend
my gratitude and appreciaton to Ms. Kanupriya, Senior lead Finance dept. (under whom Idid my training)
whose
support, dedication and honest effort have given me an immense help in preparing this project. I am also
highly
thankful to Mr. Amit kumar and Mr. Deepak Sharma whose valuable knowledge, encouragement and
suggestions
gave backbone support in completing this project. At last my special thanks to all the employees of finance
department
of MTS (Mobile Telecom Services) for giving confidence and strength to initiate this
venture.
Executive Summary
The purpose of this report is to summarize the activities I undertook as part of my summer
internship at Sistema Shyam Teleservices Ltd. I had to work in coordination with the company‘s
finance team to understand the commercial activities in Bihar -Jharkhand region.
In this report I have given a brief picture of the Indian telecom industry to demonstrate the
potential for growth for MTS as a player in this field. I have also depicted the current standing of
MTS on the horizon of Indian Telecom industry
I have also narrated our experience of this two months worth of interaction with different finance
Executives and the seniors working in MTS in Bihar Jharkhand region.
I have done a SWOT analysis of the brand and compared it with its peers. I, based on my experience,
have come up with my own conclusions that I feel might be useful to the company, in whatever
little way, in promoting MTS business.
INDE
X
1.
Industry Overview………………………………………………………………..…
62.
Company Overview………………………………………………………………...
3.
13
Analyses
a.
Porter‘s Five Forces Model…………………………………………………
17
b.
PEST Analysis……………………………………………………………....
19
c.
SWOT Analysis……………………………………………………………..
22
d.
BCG Matrix………………………………………………………………....
e.
25
Ansoff Matrix…………………………………………………………….....
4.
26
Data cards – scope and prospects……………………………………………………
28
5.
Corporate Strategy………………………………………………………………......
29
6.
Product Description………………………………………………………………… .
30
7.
Peers Analysis ……………………………………………………………………….
8.
31
Project Description
a.
Overview…………………………………………………………………….
35
b.
Market Feedback………………………………………………………….....
44
c.
Opportunities…………………………………………………………….......
44
d.
Challenges…………………………………………………………………...
e.
44
Learning………………………………………………………………………
9.
45
Recommendation………………………………………………………………….....
46
According to Business Monitor International, India is currently adding 8-10 million mobile
subscribers every month. It is estimated that by mid 2012, around half the country's population
will own a mobile phone. This would translate into 612 million mobile subscribers, accounting
emerge as the single largest component of the country's GDP with 15.4 per cent by 2014.
7
With the availability of the 3G spectrum, about 275 million Indian subscribers will use 3G-
enabled services, and the number of 3G-enabled handsets will reach close to 395 million by
2013-end, estimates the latest report by Evalueserve.
According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to
touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India.
Telecome industry revenues in US $
State-run telecom operator BSNL has rolled out 3G services in 318 cities with 856,000
subscribers. BSNL has plans to cross 760 cities by September 2010. And even as debate on 3G
continues, TRAI has started consultation on the next level of telecom services. Fourth generation
or 4G offers download at faster speeds.
8
Telecommunication industry is mainly classified into two sub headings – voice and data. Voice
service can be provided through either wire-less or wire-line. Wire-less segment is booming
nowadays after investment of foreign companies. The major players in this field are Bharti,
Vodafone, Reliance, BSNL etc.
8%
Wireless
Wireline
92%
MTS operates in wireless segment, and in this segment the two technologies available are: GSM,
and CDMA. GSM is prominent in India and has better margin than CDMA. MTS runs on
the
CDMA technology, which is faster than GSM and is a newer technology. In CDMA big players
are Reliance and TATA.
Indian Mobile Services
Market Share
(As of June 2009)
CDMA
46%
GSM
54%
9
The second major source of revenue is internet. The use of internet is increasing and quite a
number of consumers are switching from wired-lines to wireless connections. But still wired
lines are preferred by a majority of consumers as it is cost affective and provides better
connectivity.
10
Value-Added Services
Market
Currently mobile value-added services (MVAS) in India accounts for 10 per cent of the
operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by
Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74
billion by 2010. MTS can couple its wireless broadband services with different value added
schemes to make the product more attractive to the user.
Major Investments
The booming domestic telecom market has been attracting huge amounts of investment which is
likely to accelerate with the entry of new players and launch of new services.
The government has approved the foreign direct investment proposal of the Federal
Agency for State Property Management of the Russian Federation to buy 20 per cent
stake in telecom service provider Sistema-Shyam for US$ 660.1 million.
Reliance Infratel, the tower subsidiary of Reliance Communications (RCom), will build
56,596 telecom towers by financial year 2010, increasing the total number of towers to
100,000.
BSNL, India's leading telecom company in revenue terms, will put in about US$ 1.16
billion in its WiMax project.
Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its
mobile subscriber base from 40 million at present to over 100 million.
Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech
Wireless for a little over US$ 430.70 million. Telenor now holds 67.25 per cent. Last
year, it had bought a 60 per cent stake for US$ 1.23 billion.
11
Policy Initiatives
The government has taken many proactive initiatives to facilitate the rapid growth of the Indian
telecom industry.
100 per cent foreign direct investment (FDI) is permitted through the automatic route in
telecom equipment manufacturing.
FDI ceiling in telecom services has been raised to 74 per cent.
Introduction of a unified access licensing regime for telecom services on a pan- India
basis.
Introduction of mobile number portability in a phased manner, starting in the fourth
quarter of 2008.
The government is implementing a program of connecting 66,822 uncovered villages
under the Bharat Nirman programme.
The Road
Ahead
The target for the 11th Plan period (2007-12) is 600 million phone connections with an
investment of US$ 73 billion. Apart from the basic telephone service, there is an enormous
potential for various value-added services.
According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues',
revenue from India's telecom services industry is projected to reach US$ 54 billion in 2012, as
against US$ 31 billion in 2008.
12
2. COMPANY
Sistema Shyam TeleServices Ltd. — Sistema`s subsidiary in India, joint venture of JSFC
OVERVIEW:
Sistema and Shyam Group of companies. Mobile TeleSystems OJSC (MTS) is the largest mobile
phone operator in Russia and the CIS. MTS services over 91.33 million subscribers (as of July
31, 2008). MTS provides mobile communications in Russia, Ukraine, Uzbekistan, Turkmenistan,
Armenia and Belarus, the territory with a total population of more than 230 million. MTS ranks
as the 8th largest operator in the world by proportionate subscriptions at the end of 2007
Sistema Shyam TeleServices Ltd. was founded in 1998 (original name – Shyam Telelink Ltd.)
and started full-scale business in Rajasthan in 2000. Sistema is the majority share holder in this
joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake
and the remaining 2.5% being held by the public.
The company obtained its pan-India license for provision of mobile services in March 2008 and
at present has enough spectrum to provide mobile telephony services in 22 telecom-circles,
covering India‘s 28 states and 7 union territories, with a population of 130 million. With the
launch in Andhra Pradesh, SSTL will have expanded to 12 telecom circles. The other circles are
Rajasthan, Bihar/Jharkhand, Kolkata, Rest of West Bengal & Sikkim, Chennai, Tamil Nadu,
Kerala, Karnataka, Mumbai, Maharashtra, Haryana/Delhi & NCR. The high-speed mobile
broadband service, MBlaze, was launched in November 2009 and has seen tremendous market
acceptance with over 70,000 satisfied customers in a short span of time. In April 2010, MTS
launched MTS TV for MBlaze customers.
Sistema Shyam TeleServices (SSTL) is the fastest growing telecom company in the competitive
Indian market, with over 4 million voice subscribers, with about a million in West Bengal alone,
and 70,000 data customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC
Sistema
company of Russia, to bring the globally acclaimed telecom brand – MTS - to India. MTS is
the 8th largest telecom brand in the world. Millward Brown has recently voted MTS as the 72nd
ranked Brand from among the Top 100 Brands in the world.
The new head office of Sistema Shyam TeleServices is located in Gurgaon – one of India‘s
commercial capitals near Delhi. These new headquarters combine the functions of corporate
office and technology centre, where top management and experts of different divisions are
equipped with the most modern infrastructure to support their work.
Since March 2009, Sistema Shyam TeleServices has been able to use the MTS brand for
advertising and other communication in India as per the agreement signed between the company
and MTS in December 2008. And since its launch, the MTS brand has been successful in every
market it has stepped into.
13
Registered Office:
Regional
Office's:
New Delhi:
A-60,
Naraina Industrial Phase-
1,
New Delhi.
Email
us:info@mtsindia.in
Jaipur
Office:
B-2-D,
Bachhawat House,
Shiv Marg, Banipark,
Jaipur,
Rajasthan.
Email
us:info@mtsindia.in
Chennai
Office:
E 2 A,
Near Fire
Station,
Phoolbagh Chowk,
Chennai, Tamil Nadu.
Kolkata
Office:
P.S. Srijan Tech Park,
9th Floor,
DN-52, Sector V,
Saltlake City, Kolkata-
7000
14
COMPANY VISION, MISSION & VALUES
Vision
MTS shares common values with people who know what they want to achieve in their lives and are full of
energy
to hit their
goals.
"We empower people to pursue their purpose in a modern networked
world."
Mission
"MTS customers can actively shape their lives anytime and anywhere with a range of innovative telecom
products
and services."
We offer people greater choice and inspiration in how they spend their most valuable assets: their time
and
energy.
Our Values
Delivering
Excellence
We serve our customers by delivering the best. We believe in meeting or exceeding our
customer’s
expectations by utilizing our resources while adhering to best in class processes and quality standards.
We
articulate our goals clearly and align our strategies, resources and assets to deliver excellence. This we
believe
translates into superior value for our customers and
stakeholders.
Mutuality
We believe shared and reciprocal benefits around common objectives help us meet our quality commitments.
We
work with our colleagues and business partners to deliver the highest value for our customers. We
build
supportive relationships and ensure fair returns to all who help us achieve our goals. We inspire trust in
our
relationships by keeping long term success of all parties in
mind.
Entrepreneurial
Spirit
We demonstrate ownership to meet our commitments by acting like co-owners. Every day we deliver our best
by
assuming complete responsibility and by being passionate about our goals. We encourage and reward those
who
look for ways to improve the current and search for the
new.
Inspiration to be a Doer
We believe in people, their abilities and potential. We support them to deliver under different conditions
and
unleash their talent. We do everything possible to help every member of our organization become a doer, a
role
model and inspiration to all. Our environment promotes risk taking, innovation, agility and
responsiveness.
15
COMPANY LOGO:
16
3.
Analysis
a. Porters’ Five Forces Model:
Power of
Supplier
sThreat of
Compititive
Power of
New
Rivalry
Buyer
Entrance
Availabilit
yof
Substitute
Tshreat of New Entrants (Moderate):
It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is
access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. In
addition, it is important to remember that solid operating skills and management experience is
fairly scarce, making entry even more difficult. But still Threat of new entrants is always there
for any company, MTS itself being a new entrant in the field of wireless broadband services.
17
Power of Suppliers
(Low):
At first glance, it might look like telecom equipment suppliers have considerable bargaining
power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-
optic cables, and mobile handsets and billing software, telecom operators would not be able to do
the job of transmitting voice and data from place to place. But there are actually a number of
large equipment makers around. There are enough vendors, arguably, to dilute bargaining power.
MTS will have a variety of suppliers to choose from, because most of the suppliers would be
eying to get the contract to be the supplier of the company.
Power of Buyers
(High):
Lack of differentiation amongst the service providers has led to sort of commoditization of the
product. MTS provides the same service as others provide, this lack of differentiation gives
customer an edge to bargain with service providers, they can switch to any other provider any
time they want. Fierce competition among the competitors also offers a great deal to bargain. As
the switching cost is also very low, all these situations are creating problems in the growth of
company.
Availability of Substitutes
(High):
Products and services from non-traditional telecom industries pose serious substitution threats.
Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct
lines into homes, offer broadband internet services, and satellite links can substitute for high-
speed business networking needs. The threat of the substitutes for MTS is very high in Indian
market as the already existent players have a huge market share and better brand perception
among the consumers, making it tough for MTS to win the trust of its customer and increase its
market share.
Competitive Rivalry (High):
Competition is "cut throat". The wave of industry deregulation together with the receptive capital
markets paved the way for a rush of new entrants. New technology is prompting a raft of
substitute services. Nearly everybody already pays for phone services, so all competitors now
must lure customers with lower prices and more exciting services. This tends to drive industry
profitability down. In addition to low profits, the telecom industry suffers from high exit barriers,
mainly due to its specialized equipment. MTS will face a cut throat competition from its well
established competitors – such as Reliance and Tata – that are already there in the CDMA
market.
18
b. PEST
It is a systematic examination of all 4 levels of the environment with at least three purposes:
ANALYSIS:
Detecting important economic, social, cultural, environmental, health, technological, and
political trends, situations, and events.
Identifying the potential opportunities and threats for the institution implied by these
trends, situations, and events.
Gaining an accurate understanding of your organization‘ s strength and limitations.
A PEST analysis of the macro environment indicates that economic (a phone call being a
cheaper way to stay in touch than outstation travel for example) and social factors (working
outside the home town) have forced the pace of utilization of technology (Public Call Offices,
mobile phones, networked companies).
Increasing customer awareness has raised expectations and vocal demands are being articulated
for consumer rights; such political factors have in turn impacted the competitive environment by
way of entry of private players, independent regulation, and a policy framework tilted towards a
level playing field for new entrants.
19
Political factor
High entry fees in 3G market
In India legal obligations are there regarding 3G auction and bidding which limits
it to the existing players and not available to the new entrants this political factor forbids
the MTS entry in to 3G services.
Reduction in tariff
plan
Earlier the tariff rates were higher due to high taxes, but now it has become lowest
in the world by tax reforms.
Extension of license period
Government has replaced the license fees with revenue sharing scheme and
extended the license period from 10 year to 20 years. A company can merge with another
operator only after 3 years of receiving license. This rule can be eased to help MTS
merge with established players.
Economical factor:
India is one of the most vibrant and fastest growing telecom market in the world enjoys the
steady growth rate of 10 million mobile users every month .India has a moderate but still a
healthy growth rate which will provide a good base for MTS to grow with growing economy.
Social factors:
Perception of new entrant in the
market
As MTS is a new brand in the Indian market it will be facing problems regarding
the perception of a new entrant, this image will adversely affect the buying capacity of
customers, they will think about the network, and the kind of service they will get after
sale.
20
Social status
Anything customers buy that reflects their social status, as MTS doesn‘t have a
reputation in this market although it has a strong customer base in Russia and a great
image of its products, people will be conscious about their social status this will affect
company‘s growth adversely.
Technological factor:
The business in a country is greatly influenced by the technological development. The
technology adopted by the industries determines the type and quality of goods and services to be
produced and the type and quality of plant and equipment to be used.
As MTS has seen its competitors and the kind of technology being used by them, so company is
aiming to come up with something new that is not been available to its competitors. MTS use its
technology in many ways they have.
MTS Connect service provides a simple and convenient access to the Internet through the
technology of data transfer GPRS/EDGE.
21
c. SWOT
ANALYSIS
Strengths of the
Weaknesses of the company
company
Experience in Russia
in India
Low tariff plan
Innovative schemes
advantage
Brand perception
Huge market
Internet
Innovation
Integration
In integration company is basically trying to develop new pipeline‘s and customer touch
points. Company aims to provide comprehensive integrated service portfolio for all of their
customers. Communication needs, through both fixed line and wireless access. The networks and
platforms company is developing will create a seamless and unsurpassed –user experience.
Internet
For internet facilities company is trying to offer universal connectivity to its customers
because customer increasingly expects faster and broader connectivity. Company is trying to
create smarter pipelines so the customers can realize full benefits of today‘s technology and to
compete with other brands.
Innovation
Differentiating MTS from its competitors by of fering a unique mix of products and
services, MTS will offer exclusive devices, distinct packages and services.
29
6. Products offered by
MTS:
MTS has three products in wireless broadband segment
1.
Mblaze premium
Plug & Play enabled
2.
Mblaze standard
Plug & Play enabled
3.
Mbrowse
Plug & Play enabled
30
7. PEERS
Data-cards satisfy the following needs:
ANALYSIS:
Primary Need: Wireless internet for communication, networking and entertainment.
Secondary Needs : Status, as storage device
Direct competitors: As the primary need of this product is internet on mobile, the direct
competitors would be the product which provides the same service. They are….
Data cards of other companies
GPRS services
The major players in this segment are TATA, Reliance netconect, Airtel broadband services as
given below…..
•Venture of TATA
group
•Runs on CDMA
technology
•Has same product range MTS
•Runs on CDMA
technology
•Has same product range as MTS
•Runs on GSM
technology
•Provides only 1X device
•Has strong brand image but giving less speed becase run on
GSM
platform
31
Indirect competitors: This product has feature of providing internet services on move. All other
means by which internet can be avail are the indirect competitors of this product
Dial up connections
Leased lines
Cyber café
Wi-Fi
Wi-Max
Other competitors: Main uses of this service are communication, entertainment, information
search etc so below given are other competitors of this service
Magazine
News paper
I pod
TV
32
Approach to competition
MTS is providing A cheaper Tariff plan to attract huge customers in the market and to
increase its Market share. (see table-1)
33
MTS is also offering 10,00,000 free MTS minutes to its new subscribers in order to gain
customer‘s attention in the market and to make their presence felt in the market.
34
8. PROJECT DESCRIPTION :
a. Overview
As part of the financial activities (employees & vendors) of MTS, I was assigned to interact with
VHD
team, document their activities and feedback and suggest ways to decrease the time taken in
processing
different bills of employees and
vendors.
Initially, I was intimated of the VHD process and its importance in the payment .
system
V H D
V H D-is a system under which all kinds of billings related to vivid vendors are brought and processed. Every kind of bill
passes
through different desks of concerned depts and finally payment is done. Every desk holds the channelised bill for some
stipulated
periods called SLA. The time taken during this process is about 24 to 28
days.
The channel can be prepared like as
under-
DESK
SLA
MTSPATNAVHD 2 days
1st user(concerned 3 ,,
dept)
User approver 2 ,,
II
VHD II approver 1 ,,
Corporate 5 ,,
finance
Treasury 2 ,,
Pending for 1 ,,
sig.
Dispatch 0 ,,
Paid 0 ,,
Bills
24 Days
Vendor help desk (VHD) assists the company in tracking each and every vendor invoice as it travels
through
the departments in the company for approvals while monitoring the SLA committed to the vendor for
This is mainly set up to handle large volumes of vendor invoices or as a help to a centralized payable
payment.
process
running in
While mostly the VHD is customized to suit the requirements of the clients, however broadly it aims to
corporate.
achieve
the
following:
Check invoices for relevant supporting and provide e-mail confirmation to vendors for receipt
of invoice.
MIS
Vendor is intimated for invoice receipt on mail so no botheration for giving the physical
receiving
resulting in reduced walk-in of vendors, only the invoices which are with all the supporting
documents
are entered in system else returned to vendor requiring the complete papers thus entering only
invoices
complete in
system.
With the introduction of invoice cover sheet where all the department will mention the amount
approved
and brief reason for deduction if any,VHD is able to provide the vendor with actual picture and
complete
transaction of invoice value on its own without any follow up by vendor. This also reduces year
reconciliation's to large
end
extent
Regular follow up with all the concerned department for raising an alarm as to pending invoices
which
are not approved within departmental SLA, Personal follow up with user and if not responded
then
escalation to HOD.
36
Mails to all the department intimating the cheques released for the invoices relating their
department.
Taking the Address Change request from vendors and giving to commercial department for updating
in system so that the cheques are printed with right
addresses.
Vendor Help desk will track the request for TDS and WCT certificates form vendor and forward
the same to respective department and release the certificate with receiving from vendor acknowledging
the
same once received for concerned
department.
EMPLOYEE PAYMENT:
All employees of MTS in Bihar –Jharkhand region are paid their remuneration through finance channel.
All
claimed bills of employees come to finance channel where they are processed and cleared. Finally they are
sent
to the corporate office for further processing of cheque preparation and
payment.
The work done in employee payment process is as
follows:
37
VENDOR PAYMENT:
Start
Compliant with
Yes
Level – I Approval
38
Verification of Invoices as per Level – II
Yes
Level II Approval
Approval/
Rejection
Rejected Invoices sent back to the
Rejected Client with a rejection memo
Approved
Count Tallied
39
Payment Processing
Invoices Posted in System for Payment Processing
Both modes Cheque Print Cheques & Provide to the Cleint for
signature
payment
Download of Text File post Payment
Run generated from the Client’s
Accounting System
Bank transfer Post Signature, Dispatch Cheques
to the vendor
Upload of Payment Process Data in Preparation of Bank Transfer Files & Provide
Osource’s Web System to the
Client for Signature
Process completed
Invoice payment and its processing:-
Vendor
Invoice
40
First user
Financial Reporting
(FR)
Corporate office
Invoice Processing &
payment:
Invoice given by
vendor
Invoice checking, whether it is complete in all respect or
not
Invoice entry in IRIS (system 41
software)
Checking by
supervisor
Approval by manager
Cheques upload by user
Approved by two ‘cheque signing
authorities’
Cheques issued by bank & collected by FR (financial
reporting)
Company name
Bill is related with which
purpose
Quantity
Amount
Date
PO (purchase
order)
Authentication by related
department
GRN (Goods Recipient Note)
Agreement and “Term and
Condition”
Advance (if
paid)
NOA (Note Of Approval) in some special
cases
Important
points:
NOA – Note of Approval is necessary for some special expenses which are mainly onetime expense.
In
some cases instead of PO, NOA is attached. e.g. Picnic expense etc. It mainly needs approval of
related
department, user department, FR head or
CEO/COO.
Invoice – Invoices are mainly for capex (capital expenditure) and opex (operating expenditure).
These
are provided by vendors. These are legal documents which show that when, how much and at what
prices
quantities were delivered according to Purchase
Order.
Purchase order - It is an order to vendor which includes vendor’s name, item’s details (such as
item’s
name, quantity, rate etc.), delivery schedule all the terms and conditions, and GRN in case of capex
and
opex (warehousing
goods).
PREPAID REVENUE
1 MTS -outgoing
2 Recharge processing fees
3 Recharge
[RCV] processing fees
[LAPU]
4 Recharge processing fees [EURONET]
5 GPRS
6 Local SMS
7 National SMS
8 International
SMS
9 Roaming SMS
10 Enhance SMS
11 Hello Tune Download
12 Hello Tune
Subscription
13 Hello Tune Usages
14 Roaming
National
15 MMS
16 Voice Portal – voice Portal – Other
Services
17 VMS Retrieval Charge
18 Voice Based Ring Tones
19
Forfeiture
20 IC Revenue
21 Roaming Revenue
POST- PAID REVENUE
1 Postpaid – VAS Revenue
2 Postpaid- Rental
3 Postpaid – MTS Revenue
Revenue
43
b. Market
feedback:
Most of the companies were already using data-cards of other companies. They couldn‘t
switch as it was against their companies contract with those ISPs which was binding on
them all over India.
A few companies liked the product but were reluctant to switch over to it as they were
satisfied with their present ISP. They may consider our brand in case or future need.
A few companies had no use for wireless data-cards as leased lines suffice for them.
Companies have reservations against MTS as it is a new brand and has low visibility in
the market.
A few companies were interested in postpaid data-card connection which MTS is not
providing at present.
Most of the companies wished to compare our plan and services with that of our peers
before deciding on the ISP. We have mailed our tariff plans to the companies concerned.
Companies were reluctant to agree to any lock-in period—even if for a few months—
wherein they were required to recharge with a fixed amount if they chose to take our
data-cards free of cost
Companies with new needs are more likely to consider our product.
Educational institutes are ready to give us space for setting up canopies to promote MTS
to their students.
Local manufacturers can get into tie ups with MTS, as is the case with HP & HCL.
d. Challenges
Access to the right persons in the companies
Many companies could not take the decisions regarding such deals, as this power lied
with their corporate offices that were stationed outside Bihar-Jharkhand.
Appointment were very hard to get as many people who oversaw these matters in their
companies didn‘t have time nor any interest in switching over to a new ISP.
Lack of post-paid plans also mattered.
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The methodology and procedure of work is done by interacting people of finance department to understand
how
finance function works especially payable and revenue vertical. The following procedure have been adopted
complete
to this
project.
1 KNOW ABOUT THE ORGANISATION & ITS Met to each and every employee working in financial
STRUCTURE. NAUTE OF WORK FOR department of MTS, Patna.
DIFFERENT DEPARTMENTS
2 KNOW DIFFERENT TYPES OF EXPENDITURES There are different types of expenditure such as network,
INCURRED IN THE ORGANISATION. marketing, sales & distribution, IT , billing and collection,
personnel, administration and customer service delivery.
3 KNOW ABOUT THE WORKING OF FINANCIAL Workings are mainly divided into 4 parts – payable, revenue,
REPORTING & ANALYSIS. fixed assets and taxation.
4 KNOW ABOUT PROVISIONING Provisioning is mainly expected expenditure incurred during
current months.
5 KNOW CASH FLOW MANAGEMENT Cash flow is mainly prepared after considering the financial
activities, operating activities, investment, etc.
6 DID CASH FOR CASTING AND MADE DAILY Cash forecasting is very essential. It tells about expected funds
ACTUAL CASH FLOW to credited in company’s account for the coming three days.
7 LEARN ABOUT THE CONCEPTS OF REVENUE Revenue comes from providing services to customers.
8 DID WORKING OF RECEIVABLES IN CITRIX Converted unapplied receipts of distributors to applied to get
(IRIS) their invoices in IRIS (software).
9 GO THROUGHOUT THE OVERVIEW OF Prepared project report according to that.
PAYABLE & REVENUE
Analysis Methods
:
Automation tools
[linking]
V-lookup function [ in
excel ]
Judgmental
forecasting
Average function [in
excel]
Pie charts
47
Bar graphs
Flow charts
48