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CLAIMS/DISCOUNT

MANAGEMENT AND TAXATION

SUBMITTED BY:

SURABHI PARASHAR(1924)

ANKIT BAJORIA(1822)

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RESEARCH PROBLEM

Understanding the basic concepts of the claiming and

discounting management being carried out in Hindustan

Coca-Cola Beverages Pvt. Ltd. To carry out study on the claim

and discount management of Coca-Cola in order to identify

the role of discounting policy in Coca-Cola

Understanding the basics related to the taxation being

followed by the company to file tax.

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RESEARCH METHODOLOGY

ResearchDesign

Descriptive

ResearchMethodology

Primary(interview and questionnaire method)

Secondary(Magazines, Referrals etc)

ResearchTools

Pie chart

Bar Graph

Percentages

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OBJECTIVE OF THE STUDY

1. To learn what points are considered while

processing claims of the discount schemes or

general bills.2. To Study role of discounting in Coca-Cola.

3. To study the taxation policy being followed by

the company

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LIMITATIONS OF THE STUDY

Biasness on the part of the respondents and the problem ofnon-response by the distributors

Time Constraint The internship initiated with 15 days classroom training. Then there were 30 days to conduct the whole

research including the collection of primary data and itsanalysis.

Possibility of error in data collection because many ofemployees may have not given actual answers of thequestions being asked in interview.

Company denied giving details of existing customers forfurther research.

The reliability of the information depends on the authenticityof the source of secondary data.

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COMPANY PROFILE

Commencement: 1886

Country of origin: US

Products: Water(Kinley),CSD(Coca-Cola,Pepsi,Limca, Sprite),

Soda(Kinley soda),

Juices( Pulpy orange, nimbu fresh)

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CLAIMS/DISCOUNT

MANAGEMENT

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CLAIM/DISCOUNT MANAGEMENT

The claim is the amount which is to be reimbursed to thedistributor on the scheme run by him in the market These arethe promotional schemes given by the company to thedistributors for the retailer in order to increase the sale.

Responsible for building and maintaining relationships withdistributors in order to maximize sales and ensure properexecution of pricing and promotional programs

The purpose of this document is to provide guidance formaking discounting decisions with a view to utilize discountas a tool to maximize sales revenue within the confines ofthe discount budget.

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Schemedeclaration by the

ASM

MER is raised byfinancialexecutive

MER areapprovedsequentially by

SM

distributor-wisetop-sheet isgenerated

Then submittedclaims are beingchecked by the

financedepartment

the actualmatching of theclaims with theMER and actual

limits

approval for theclaims

credit notes aregenerated

approval of creditnote from the

finance manager

PROCESS

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ANALYSIS

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Circulated schemes

Quantity

Discount

Cumulative

quantity

Discount

Seasonal

Discount

s

Cash

Discount

s

Trade

Discount

Promotio

nal

Discount

No of Respondents 100 0 0 0 0 0

0

20

40

60

80

100

120

AxisTitle

No of Respondents

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Satisfaction level of distributors

0

20

40

60

80

100

Yes No

No of distributors 99 1

AxisTitle

No of distributors

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Basis of discount offered

On the basis of

area, 0%On the basis of

sales volume,

40%

on the basis of

business being

bought up, 60%

any other, 0%

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Span of discounting schemes

0

20

40

60

80

100

within a

week

15 days 1 month vary

rarely

No of respondents 0 100 0 0

AxisTitle

No of respondents

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BASIS OF SCHEMES BEING OFFERED

On the basis of area you

serve

0%

on the basis of sales volume

being sold

2%

On the basis of business being

bought up

2%

any other

96%

No of Respondents

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CSD Availability

No of respondents

No of bottles0

500000

1000000

East WestNorth

SouthCentral

AxisTitle

East West North South Central

No of respondents 11 44 4 32 9

No of bottles 167000 705000 78500 579500 138500

Chart Title

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JUICES Availability

No of Respondents

No of bottles0

50000

100000

150000

East WestNorth

SouthCentral

AxisTitle

East West North South Central

No of Respondents 11 44 4 32 9

No of bottles 20500 97700 19500 110000 14900

Chart Title

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Water Availability

No of respondents

No of bottles0

100000

200000

East WestNorth

SouthCentral

AxisTitle

East West North South Central

No of respondents 11 44 4 32 9

No of bottles 22500 123000 169000 23000 17000

Chart Title

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SODA Availability

No of distributors

No of bottles0

50000

100000

150000

East westNorth

SouthCentral

AxisTitle

East west North South Central

No of distributors 11 44 4 32 9

No of bottles 19000 96700 17000 117000 14000

Chart Title

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TAXATION

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TAXATION

INDIRECTTAX

DIRECT TAX

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DIRECT TAXINDIRECT

TAX

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TAX RATE

ABATEMENT VAT EXCISE DUTY SERVICE TAX

CSD 40% 15% 12.36% 12.36%

JUICES 35% 5% 6.18% 12.36%

WATER 45% 15% 12.36% 12.36%

SODA 40% 15% 12.36% 12.36%

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VAT(VALUE ADDED TAX)

Suppose basic rate is 10 Rupee. And 24 bottles in a case.

Therefore cost of a case(consisting of 24 bottles)

= 24* 10

= 240Therefore VAT would be calculated as follows:

((1-(1/1+15%))*100)% of 240

1/1.15=0.869

1-0.869= 0.1304

13.04%13.04% 240 = 31.29

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TAX PAYMENT AND RETURN FILING

TAX PAYMENT RETURN FILING

VAT Monthly(Payable till 14th of

next month)

Quarterly (within 45 days

after completion of a

quarter)

EXCISE DUTY Monthly(payable till 6th of

next month)

Monthly( payable till 10th

of next month)

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TREND

ANALYSIS

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MMR REPORT

43.23%

208.59%

9.82%29.35%

173.56%

23.02%

-30.69%

-219.11%

155.69%

-250.00%

-200.00%

-150.00%

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

0 1 2 3 4AxisTitle

Axis Title

NET REVENUE

GROSS REVENUE

PAT

http://localhost/var/www/apps/conversion/Desktop/Coke%20Data/MMRMonth%20Consolidated.xlshttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/MMRMonth%20Consolidated.xls

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CASE STUDY

MER SCHEME HVO SCHEME SALES FREE RATE AMOUNT

http://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsx

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NO. PERIOD QTY. QTY.

MER-

315080

1/05/2012-

11/05/2012

1BTL.CSD200

ML FREE ON 1-4

OF CSD200 ML

MER-

315081

1/05/2012-

11/05/2012

2BTL.CSD200ML

RGB FREE ON 5

& ABOVE C/S

OF CSD200ML

RGB

MER-

311583

1/05/2012-

11/05/2012

1BTL.CSD300ML

RGB FREE ON I

C/S OF 300ML

RGB

MER-

311585

1/05/2012-

11/05/2012

2BTLS.

CSD300ML RGB

FREE ON 5&

ABOVE C/S OF

CSD 600ML

MER-

311589

1/05/2012-

11/05/2012

3 BTLS.

KW1000ML

FREE ON 1-5 &

ABOVE C/S OF

CSD 600ML

MER-

315117

1/05/2012-

11/05/2012

1 BTL.

KW1000ML

FREE ON1 C/S

OF

CSD1.25LTR.PET

MER-

315118

1/05/2012-

11/05/2012

2BTLS. KW

FREE ON 2 &

ABOVE C/S OF

1.25 LTR.

MER-

315119

1/05/2012-

11/05/2012

1 BTL. CSD

600ML FREE ON

1-4C/S OF CSD

1.75/2.25LTR.

MER-

315120

1/05/2012-

11/05/2012

1BTL. CSD

1500ML FREEON 5 &ABOVE

C/S OF CSD

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nversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/Desktop/Coke%20Data/Current%20Pricing%20Latest.xlsxhttp://localhost/var/www/apps/conversion/tmp/scratch_12/~$CLAIMS2.pptx

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http://localhost/var/www/apps/conversion/tmp/scratch_12/~$CLAIMS2.pptx

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FINDINGS

Quantity Discounts are being offered to the major partof the distributors and they are satisfied with thediscounting schemes being offered.

Discounts to the distributors are being offered on the

basis of business being brought up by them. Various schemes are being circulated after the span of

15 days(1 bkt)

CSD availability is maximum in western part ofRajasthan

Juices and soda availability is maximum in southernpart of Rajasthan.

Water availability is maximum in northern part ofRajasthan

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