TATA TELESERVICES LIMITED

Summer Internship Project on

Account Receivables Aging Report
Submitted BY: Mukundaji 5/9/2012

Accounts receivable are not limited to businesses - individuals have them as well. People get receivables from their employers in the form of a monthly or bi-weekly paycheck. They are legally owed this money for services (work) already provided

Introduction
Tata Teleservices Limited spearheads the Tata Groups presence in the telecom sector. The Tata Group had revenues of around US $62.5 bn in Financial Year 2007-08, and includes over 90 companies, around 350,000 employees worldwide and more than 3.2 million shareholders. Incorporated in 1996, Tata Teleservices is the pioneer of the CDMA 1x technology platform in India. It has embarked on a growth path since the acquisition of Hughes Tele.com (India) Ltd [renamed Tata Teleservices (Maharashtra) Limited] by the Tata Group in 2002. It launched mobile operations in January 2005 and today enjoys a pan-India presence through Existing operations in all of Indias 22 telecom Circles. The company is also the market leader in the fixed wireless telephony market. The companys network has been rated as the Least Congested in India for last four consecutive quarters by the Telecom Regulatory Authority of India through independent surveys. Today, Tata Teleservices Ltd, along with Tata Teleservices (Maharashtra) Ltd, serves over 36 million customers in more than 320,000 towns and villages across the country, with a bouquet of telephony services encompassing Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire line Services. Other services include value-added services like Voice Portal, Roaming, Post-paid Internet Services, Three-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 Pre-paid Wireless Desktop Phones, Public Phone Booths, Mobile Handsets and Voice & Data Services such as BREW Games, Voice Portal, Picture Messaging, Polyphonic Ring Tones, and Interactive Applications like news, cricket, astrology, etc. In December 2008, Tata Teleservices announced a unique reverse equity swap strategic agreement between its fully-owned telecom tower subsidiary, Wireless TT Info-Services Limited, and Quippo Telecom Infrastructure Limitedwith the combined entity kicking off operations with 18,000 towers, thereby becoming the largest independent entity in this space. Tata Teleservices bouquet of telephony services includes mobile services, wireless desktop phones, public booth telephony and wire line services.

Board of Directors
Mr. Ratan N. Tata Designation: Chairman Company: Tata Teleservices Ltd. Mr. K. A. Chaukar Designation: Managing Director Company: Tata Industries Ltd. Mr. Anil Kumar Sardana Designation: Managing Director Company: Tata Teleservices Limited Mr. I. Hussain Designation: Director Company: Tata Sons Ltd. Mr. N. S. Ramachandran Designation: Director, Company: Tata Teleservices Ltd. Mr. N. Srinath Designation: CEO & MD Company: Tata Communications Ltd.

Dr. Mukund Govind Rajan Designation: MD Company: Tata Teleservices Maharashtra Ltd.

Mr. Anuj Maheshwari Designation: Director

Company: Temasek Holdings Advisors India Pvt Ltd., ("THAIPL") Mr Toshinari Kunieda Designation: Senior Vice President Managing Director Global Business Division Company: NTT Docomo, INC.

Mr. Kiyoshi Tokuhiro Designation: Senior Vice President Managing Director of Network Department Company: NTT Docomo, INC.

Mr. Kazuto Tsubouchi Designation: Executive Vice President Chief Financial Officer Company: NTT Docomo, INC.

Corporate Sustainability of Tata tele

Clay is molded to make a vessel, the utility of that vessel lies in what is not. Thus by taking advantage of what is not, we develop what is Lao Tse. These words summaries our attempt to put together socially sustainable programs at TTSL. We engage with the CS space with the vision of a seer and the spirit of an adventurer and executioner as we take up large scale and pan-India capacity building projects. The world today is fired by the digit and has moved beyond the speed of light. The conventional business engagement verticals do not necessarily engage entirely with the surface area of opportunity in our environment. We look into the space to dimension, develop and deliver value in such spaces and bring these to the realm of opportunity. This is what will ensure sustainability, equanimity and capacity. This space is beyond the radar of businesses but interestingly also makes for the biggest space that is in serious need of being discovered. Its about socionomics. That Christopher Columbus discovered Americas is perhaps not true, since America existed much before Columbus set foot on that land. In the same breath whilst it may be true that Einstein formulated, E = Mc 2, our argument rests with the fact that all the three values existed much before Einstein put these together. By that analogy, we discover spaces in the markets and develop markets in such spaces. That is the essence of sustainability. To undertake that task we follow the following two empirical laws: 1. Leverage telephony through Application( the 3 As) leveraging Access, Affordability and

2. Leverage employee engagement by de-oxidizing their sensitivity and human side.

TATA Business Excellence Model

Tata Business Excellence Model is a framework which helps companies to achieve excellence in their business performance. This is the chosen model by the TATA group to help in building globally competitive organizations across TATA Group companies. TBEM is based on the Malcolm Balridge National Quality Award Model of the U.S.

The Criteria have three important roles in strengthening competitiveness:

To help improve organizational performance practices, capabilities, and results To facilitate communication and sharing of best practices information among all organizations within TATA Group. To help in guiding organizational planning and opportunities for learning

TBEM Criteria is designed to help organizations use an integrated approach to organizational performance management that results in
Delivery of ever-improving value to customers and stakeholders, Contributing to organizational sustainability Improvement of overall organizational effectiveness and capabilities Organizational and personal learning

The Criteria are built on the following set of 11 Interrelated Core Values and Concepts:
Visionary Leadership Customer-driven Excellence Organizational and Personal Learning Valuing Employees and Partners Agility Focus on the Future Managing for Innovation

Management by Fact Social Responsibility Focus on Results and Creating Value Systems Perspective

The Core Values and Concepts are embodied in seven Categories, as follows:
Leadership Strategic Planning Customer and Market Focus Measurement, Analysis, and Knowledge Management Work force Focus Process Management Business Results The TBEM criteria are the operational details of the Core Values, applied to the different facets of a Business organisation. The 7 Criteria Categories are divided into 18 items and 32 Areas to Address The TBEM framework has the following characteristics Focus on Business results Non-prescriptive and Adaptable Maintains System Perspective Supports Goal based diagnosis TBEM instills a process centric approach in an organisation as a means to achieve the chosen Business Goals Tata Teleservices Limited as a part of the TATA Group has adopted the TATA Business Excellence model as an intricate part of its operation structure and uses it to grow from strength to strength, keeping Operational excellence and Business results in focus.

Scrutinize Balance Of Customer & VendorAging Report(Account Receivables & Payables Aging Report)
Introduction:
Customer Account:

Scrutinize balance of customer aging is defined as a periodic report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding. Accounts receivable aging is a critical management tool as well as an analytic tool that helps determine the financial health of a company's customers, and therefore the health of their business.
Vendor Account: Scrutinize balance of vendor aging is defined as how much is

owed, to whom, and for how long. The report is a key tool in determining precisely the state of affairs for the Accounts Payable department and for the business. Accounts Payable aging report helps the management to evaluate that which of there payments are going to due at which date in this way this helps the management to assign or manage the amount requires to pay when they are due to pay Compilation The AP aging report is a listing usually either by creditor alphabetical order or by amount of all outstanding invoices or bills. The data is pulled onto the report from the AP records entered and updated on a daily basis. False entries result from mistakes made during the normal work routines within the department, which is why accurate data entry and timely updates are necessary. The first column consists of creditor name-who is owed. The next is generally the total amount outstanding to that creditor. Then the debt is broken down by age with the portion of the total debt that is within 30 days from invoice receipt in the next column, usually labeled "Current." Each sequential column thereafter, commonly called a "bucket," delineates thirty-day increments until 180-plus days.

Account Delineation For example, to date, ABC Company delivered a total of 15,000 widgets starting five months ago on a special order at $1 each, invoiced in two parts. Of the total $15,000 due, $4,000 isn't yet paid. ABC Company's sample entry on an AP aging might be:
Name Net Tot Current 31-60 61-90 218.67 91-120 167.02 121-150 151-180 180+ 95.74 71.28 0

ABC Co 4000.00 2681.00 832.59

The original balance total is not listed on the aging entry, because only outstanding debt is required. If the entry on the aging in the Net Total column does list an original balance, it's a new bill that arrived within the last thirty days. If no portion of the total due was paid at the time of delivery, the Net Total column and the Current column would be identical. Because no portion of that vendor's invoice has aged beyond the current time period, only zeroes would be listed in the age buckets. The complete aging would reflect similar entries for each outstanding creditor, with a total of each column and columns total listed at the end of the report. Purpose The purpose of an AP aging report is clear: It outlines how long debts are outstanding and helps prioritize payments. Reducing the aging means reducing liabilities and improving the profit margin and credit lines of any business .

Explanation: If an accounts receivable aging demonstrates that a company's

receivables are being collected much slower than normal, this is a warning sign that business may be slowing down or that the company is taking greater credit risk in its sales practices. As a management tool, accounts receivable aging may indicate that certain customers are not good credit risks. It can therefore help a company make prudent decisions about whether or not to keep doing business with customers that are chronically late payers. If a company has receivables, this means it has made a sale but has yet to collect the money from the purchaser. Most companies operate by allowing some portion of their sales to be on credit. These types of sales are usually made to frequent or

special customers who are invoiced periodically, and allow them to avoid the hassle of physically making payments as each transaction occurs. In other words, this is when a customer gives a company an IOU for goods or services already received or rendered Accounts receivable are not limited to businesses - individuals have them as well. People get receivables from their employers in the form of a monthly or bi-weekly paycheck. They are legally owed this money for services (work) already provided When a company owes debts to its suppliers or other parties, these are known as Account payable There are several issues to be aware of when you analyze based on an aging report, which are:

Individual credit terms. Management may have authorized unusually long credit

terms to specific customers, or perhaps only for particular invoices. If so, these items may appear to be severely overdue for payment when they are, in fact, not yet due for payment at all.

Distance from billing date. In many companies, the majority of all invoices are

billed at the end of the month. If i run the aging report a few days later, it will likely still show outstanding accounts receivable from one month ago for which payment is about to arrive, as well as the full amount of all the receivables that were just billed. In total, it appears that receivables are in a bad state. However, if i were to run the report just prior to the month-end billing activities, there would be far fewer accounts receivable in the report, and there may appear to be very little cash coming from uncollected receivables.
Time bucket size. we should approximately match the duration of the time

buckets in the report to the company's credit terms. For example, if credit terms are just ten days and the first time bucket spans 30 days, nearly all invoices will appear to be current. CUSTOMER ACCOUNT DETAILS NEED TO CHECK:

10

When a customer purchased product from the company of RS 30000 and it is deposited 50000. After long time there is no debit from their account then we have to check.

Knock off(Application of receipt):

When a customer deposited Rs 20000 for buying product and he purchased of amount 19500 then there is no much amount is deposited in their account .Then we have to knock off (Application of receipt) their account Customer Distributor Account Name 15028209 Arty Enterprise 15029743 Sony current system 15027039 JD Agency 15004174 Ram Krupp Period 1 (30 days) 19500 30000 1900 800 Period 2 (31-60days ) (20000) (50000) (2000) (1000) (8000) (15000) (2000) (500) Identify Knock off Need to check Knock off Knock off Need to check Need to check Need to check Knock off Total (500) (20000) (100) 100 4000 (14000) (500) 0

15034585 Patel 4000 Communication 15017661 Viner 1000 Teleservices 15026145 P T Venture 1500 15035177 Yamuna Sales 500

The above are the customer account details. I have checked more than 5000 customer account. In these account we have to identify which account more than 100 balance in their account in the form of debit as well as credit during the period of 1- 10. 1 period contain 30 days. If the amount is same debit and credit in consequent period then we have to knock off that period. These are the sample of that account each account has different account balance in the form of debit as well as credit during the period1 and period2 between customer and company.

11

After identifying account we have to remarks their account balance that which amount is pending .The following remarks is as follow: Customer Distributor Account Name 15028209 Arty Enterprise 15029743 Sony current system 15034585 Patel Communication 15017661 Viner Teleservices 15026145 P T Venture Remarks Excess amount received Interest on security deposit Dealer debit Monsoon Dhamaka Bonaza Subsidy on handsets Total (20000) (5000) 4000 (14000) (500)

After analyzing customer account remarks we have to report to manager.

The process for downloading Raw Data from SAP Application

12

Run

saplogon.exe click on Pro system description

Enter T-

code
fbl5n

User id Password then click enter

Appear a window as CUSTOMER LINE ITEM DISPLAY

named

Customer Account Company Code Line Item Selection- All Items Execute(F8)

Click on List

Export

Local File

According to the data of customer aging ,we will analyze the data I which Customer Account number will be need to check and knock off based on their credit and debit balance on their period wise. After that why this account is in credit or debit then we have to scrutinize their balance from data which downloaded from SAP Application.

Tata Docomo Summary

13

Korea. growth in next 5years. est in the world and the second largest among emerging economies . three fold by 2012. The expansion of the telecom industry in India has been fuelled by a massive growth in mobile phone users, which has reached a level of 10 million users in December 2002, an increase of nearly 100 per cent in 2002. tributed to the introduction of digital cellular technology and decrease in tariffs due to competitive pressures. For the first time in India, the growth of cellular subscriber base has exceeded the fixed line subscriber base. However, cellular penetration is still 1 per cent as compared to world average of around 16 percent

14

Objective Of The Project:

Customer Balance Clearing Management Reporting