INDIAN TELEPHONE INDUSTRIES LTD

(A Government of India Undertaking)

India is among the four high growth markets in the world for Telecom and information Technology along with China, Brazil and Russia. Telecommunication is the rapidly growing infrastructure industry in India. New technological developments and regulatory demands have reshaped the global telecom industry today,. New technological developments and regulatory demands have reshaped the global telecom industry today.

ITI joined the league of world class vendors of GSM technology with the inauguration of domestic as well as exports markets. The success of technology induction and up gradation is visible across all units of ITI which fully conforms to ISO 9001:2000 quality management systems.

ITI LIMITED India’s first Public Sector Unit (PSU) - ITI Ltd was

established in 1948. Ever since, as a pioneering venture in the field of telecommunications, it has contributed to 50% of the present national telecom network. With state-of-the-art manufacturing facilities spread across six locations and a countrywide network of marketing/service outlets, the company offers a complete range of telecom products and total solutions covering the whole spectrum of Switching, Transmission, Access and Subscriber Premises equipment.

ITI has largest production unit situated in Bangalore manufactures most of the equipment needed for telecommunications. Also located at this unit are 2 well – equipped R&D labs.

Besides these main production units ITI has Regional Offices all over India, sales and service offices, customer care centers and Ancillary units. ITI has set up an unit at Singapore also

BASIC INFORMATION ABOUT ITI

NAME : ITI LIMITED ESTABLISHED : 1948 CORPORATE OFFICE : Dooravani Nagar, Bangalore

MANUFACTURING PLANTS : FourCORE R&D : BangaloreINSTALLATION & MAINTENANCE : BangaloreREGIONAL OFFICES : Six (6)AREA OFFICES : Forty Two (42)QUALITY SYSTEM : ISO 9000JOINT VENTURE : Trimax Datacenter. ISO ACCREDITATION : 10 Divisions

COMPANY WEB SITE : www.itiltd-india.com

LOGO :

LOCATION OF MANUFACTURING UNIT, REGIONAL OFFICE AND CORPORATE OFFICE

REGIONAL OFFICES (12)AREA OFFICES (34)

NEW DELHI LUCKNOW

CHENNAI

CALCUTTA

MUMBAI

BANGALORE

BHOPAL

BHUBANESWAR

HYDERABAD

AHMEDABAD

KOCHI

CHANDIGARH

RO AHMAO:Rajkot, Surat Vadodra

REGIONAL OFFICES (11)AREA OFFICES (42)

NEW DELHI

LUCKNOW

CHENNAI

KOLKATA

MUMBAI

BANGALORE

BHOPAL

BHUBANESWAR

HYDERABAD

AHMEDABAD

KOCHI

CHANDIGARH

RO AHMAO:Rajkot, SuratVadodra

RO DelhiAO:J aipur

RO BangaloreAO:Mysore, Hubli, managlore, Goa

RO ChennaiAO:Vellore, Kalpakkam, salem,Coimbatore, Tiruchy, Madurai, Tuticorin,Pondichery

RO BhopalAO:I ndore, Raipur

RO BhubaneswarAO:Ranchi, J amshedpur

RO LucknowAO:Agra, Dehradun, Varanasi, Patna,

RO KolkataSiliguri, Dimapur, Guwahati

REGIONAL OFFICES AND AREA OFFICES

RESEARCH AND DEVELOPMENT DEPARTMENT OF BANGALORE UNIT

The main R&D Centre is housed in this Plant.

The modern facilities available are •Hybrid Micro circuits lab •Surface Mount Technology •Component approval and Vendor evaluation centre •Environment test lab •EMI Shielded chambers •Modern PCB plant •Metal parts , heat treatment , finishing , moulding and die casting shops •Fully fledged tool room •Modern electronic assembly/ testing facilities

PRODUCT PROFILE

TELEPHONE

ITI PRODUCT - SATELLITE

MAGENTO TELEPHONE

This telephone is a state-of-the-art of design to work with magneto exchanges can also be used for point to point communications.

DR-P

AGM-B

AGM-I&C

CMD

DGM(IMM)TDP

AGM-TDP AGM-SD

DGM-I&CDGM-TS-TDP

DGM-TDP

DGM-SAP

DGM-SAP

DGM-F

DGM-F

DGM-CS

DGM-QA

DGA-ShippingDGM-HR&V

DGM-BD&Mktg

DGM-

SAP(AMC)

DGM-IT

DGM-Tech

DR-F

DGM-P-SD

CHIEF MANAGERS

MANAGERS

DEPUTY MANAGERS

ASST.MANAGER

ENGINEERS

WORKERS

CHIEF MANAGERS

MANAGERS

DEPUTY MANAGERS

ASST.MANAGER

ENGINEERS

WORKERS

CHIEF MANAGERS

MANAGERS

DEPUTY MANAGERS

ASST.MANAGER

ENGINEERS

WORKERS

CHIEF MANAGERS

MANAGERS

DEPUTY MANAGERS

ASST.MANAGER

ENGINEERS

WORKERS

CHIEF MANAGERS

MANAGERS

DEPUTY MANAGERS

ASST.MANAGER

ENGINEERS

WORKERS

ORGANIZATION CHART OF BANGALORE PLANT

The following of them are the departments of the company.

•Production Department•Human Resource Department•Finance Department•Marketing Department•Research and Development Department1.Purchase department

INDIAN CUSTOMER PROFILE: •Department of Telecommunications (DoT),Government of India •BSNL •Mahanagar Telephone Nigam •Defence Services •Paramilitary, Police & Internal Security organizations •Power, Steel and Oil sectors •Railways •Post Offices, Factories, Offices, Bank •Corporates •Hotels

EXPORTS

INTERNATIONAL PRESENCE AND EXPORT ITI has exported products such as ADPCM, C-Dot MBM / SBM Switches, SMPS Power Plant, VRLA batteries, CDMA WLL Equipments, FWTs, DG Sets, Shelters, Towers, MW Radios, Rural Exchanges, Telephones of different types, spare cards for E-10B exchanges Single Channel VHF Radio, Multi Access Rural Radio (Analog and Digital both) and ASICs to countries in Afghanistan, Asia, Africa and Europe.Besides various projects in India, ITI has successfully executed turnkey projects overseas.

GLOBAL CUSTOMER PROFILE •Afghanistan

•Botswana •Bhutan•China •Comoros •Gambia •Ireland •Madagascar •Malaysia •Nepal

COMPETITORS INFORMATION

•Nokia•Samsung•L G•Ericson•Siemens•United Telecom

The various strengths of ITI are as follows :•India’s first telecom equipment manufacturer.•50 years of experience in telecommunication.•Over 60% of contribution to the existing national telecom network.•Total telecom solutions provider.•Recognized as top turnkey services company.•Multi-location state-of-art manufacturing facilities with ISO 9001:2000.•Complete range of telecom products, value added services, strategic alliances with global telecom/IT majors.•Large work force with technical expertise.•Market share of 70%.•Quick adoption to new & latest technology.•One of the best infrastructure and R&D.

WEAKNESSES OF ITI:•Surplus manpower.•Resistance to changes by some group of employees.•Normally, training the aged & less qualified employees to latest technology in some case highly impossible. ITI has proved otherwise certificate holders & fitters are all doing even testing in digital electronics.•Cases may be viable. ITI has proved otherwise certificate holders•Fitters are all doing even testing in digital electronics•Products are priced very less due to competition.•Having monopoly in the telecom manufacturing field, ITI is very poor in marketing. It did not have marketing department concept itself before 1991.•Failure of R & D department.•Corruptions in high level management •Political interference.

OPPORTUNITIES OF ITI:•Introduction of better & improved technology.•Quality of the products.•Training & development strategies.•ITI has the good infrastructure•It has branches all over India

The threats faced by the ITI are as follows:•Competition from private sector & nationals.•Disinvestments policy of the government.•Frequent fluctuations in the global competitive market •Economics policies of the government.•Huge executive turnover.Promotional opportunities are bleak

FINDINGS in Finance Department of the company facing two important problems in their operation, the problems are improper cash management and manual accounting system.

A. CASH MANAGEMENT PROBLEM:The company facing the following cash management problems1. Delay in cash collectionThe company sells their products to their customers namely, BSNL and MTNL. Those

who are purchased from the company but they are failed to pay the money on time. This is the major problem for the company.

2. Delay in payment of salary: This is the problem due to delay in collection of money from the customers. So,

ultimately the employees are affected and they are getting their salary two months once.3. Delay in payment to suppliers; The company failed to pay the money to their suppliers because inefficient cash

management system.4. Delay in other paymentsDue to the improper cash management the company totally failed to pay the money to

the outsiders are in delayed manner. It affects the company reputation in the outside.

B. NO SPECIALIZED ACCOUNTING SOFTWAREThe Finance department is using the computers for the accounting purpose. Totally 10

computers are in the finance department. They use the computer only for record keeping purpose. But there is no specialized software for maintain the records and accounts. Even they have resource but it is not a full-fledged way of utilization of resources.

SUGESSTIONSThe following suggestions are put forth to the company.1.The company should collect the money from the customers promptly and in time.2.The company should maintain the debtors velocity period3.The company should give the sales to the employees on time with the reserve of the company.4.The company should ask the credit period relaxed way to the supplier.5.The company should keep reserve for the settlement of the payment to others.6.The company should introduce some software for the maintenance of accounting records and maintenance.