Industrial Report

on

TATA COMMUNICATION

Submitted in partial fulfillment of the requirement for the award of

Bachelor of business administration

(BBA)

By

Kanika Malik

BHARATI VIDYAPEETH UNIVERSITY, SDE

ACADEMIC STUDY CENTRE; BVIMR,

NEW DELHI

2009-2010

DECLARATION

I KANIKA MALIK, BBA student, BVU, SDE, Academic Study Center: BVIMR,

New Delhi hereby declare and understand that the project on Industrial Exposure

submitted by me titling “TATA COMMUNICATION” in partial fulfillment for the

award of any diploma/degree in any university elsewhere to the best of my knowledge

and belief. Any material quoted from others sources has been duly acknowledged at

appropriate places in the text. I am solely responsible for any duplication.

KANIKA MALIK

2

ACKNOWLEDGEMENT

Project work is never the work of an individual. It is more a combination of ideas,

suggestions, contribution and work involving many jobs. One of the most important

part of writing a report is the opportunity to thank all those who have contributed to it.

The list of expression of thanks, no matter how extensive, is always incomplete and

inadequate. This acknowledgement is no exception.

I want to express my sincere gratitude towards Prof. Rachna Chawla who provided

me all the expert guidance and invaluable suggestion.

I would like to thank my classmates and all those who directly or indirectly helped me

in one or the other way in the successful completion of the project.

KANIKA MALIK

3

CERTIFICATE

To whom so ever it may concern

This is to certify that the project on Industrial Exposure entitled “TATA

COMMUNICATION” is an original piece of work done by “KANIKA MALIK” in

the partial fulfillment of the requirement for the award of the degree of “BBA” from

“BVU, SDE, Academic Study Centre: BVIMR, New Delhi”. To the best of my

knowledge, data and information presented by her in the project has not been

submitted earlier.

Prof. RACHNA CHAWLA

(INTERNAL GUIDE)

4

CERTIFICATE

To whom so ever it may concern

This is to certify that the project on Industrial Exposure entitled “TATA

COMMUNICATION” is an original piece of work done by “KANIKA MALIK” in

the partial fulfillment of the requirement for the award of the degree of “BBA” from

“BVU, SDE, Academic Study Centre: BVIMR, New Delhi”. To the best of my

knowledge, data and information presented by her in the project has not been

submitted earlier.

DR. SACHIN VERNEKAR

DIRECTOR

5

INDEX

CHAPTER-1 INTRODUCTION

o Introduction to Tata Group

o Introduction to Tata Communication

o Introduction to Tata Indicom

o Nature of Business

o Type and Ownership Pattern

o Vision

o Mission

o Board of Directors

o Registered office

o Subsidiaries

CHAPTER-2 MARKET ANALYSIS

o Brand

o Products

o Product Mix

o Product Line

o Regional Presence

o Distributional Channel Competitors

o Market Share

o Positioning

o Market Strategies

6

CHAPTER-3 FINANCIAL ANALYSIS

o Stock exchange on which the company is listed

o Weight age in Index

o Capital Structure And Authorized Capital

o Turnover

o Balance sheet of current year

o Auditing company and auditors report

o Balance Sheet for last three years

o Income Statement

o Ratio Analysis

CHAPTER-4 ORGANIZATIONAL STRUCTURE

o Organization Structure

o Number of Employees

o Recruitment and Selection Procedure

o Training and Development Policies

CHAPTER-5 SWOT ANALYSIS

MY LEARNINGS FROM THE PROJECT

BIBLIOGRAPHY

7

CURRENT INDUSTRIAL SCENARIO

The recently released numbers of CSO on industrial production for 2007-08 were the

lowest in 6 years, and show a significant slowdown with respect to growth over the

previous year. In March 2008 Industry recorded a growth of 3% as against the 14.8%

recorded in the previous year.

It is felt by the business community that a number of fresh global factors coupled with

domestic factors have impacted the industrial growth: running from recession

(slowdown).

Growth comparison between 2007-08 and in the previous year shows deceleration in

overall industries in 2007-08 compared to the last.

In telecommunication falling call charges are bringing 7 million on an average every

month to the mobile phone network. Total phone connection registered crossed 300

million with mobile phone subscription surpassing 250 million. In 2007-08 net mobile

phone addition were only 5 million connection short of 100 million. The fixed line

connection however dropped by over a million in a year time.

8

CHAPTER-1

INTRODUCTION

9

INTRODUCTION TO TATA GROUP

1.1 THE TATA GROUP

Tata is a rapidly growing business group based in India with significant international

operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543

crore), of which 61 per cent is from business outside India. The Group employs

around 350,000 people worldwide. The Tata name has been respected in India for 140

years for its adherence to strong values and business ethics.

The business operations of the Tata Group currently encompass seven business

sectors: communications and information technology, engineering, materials,

services, energy, consumer products and chemicals. The Group's 27 publicly listed

enterprises have a combined market capitalization of some $60 billion, among the

highest among Indian business houses, and a shareholder base of 3.2 million. The

major companies in the Group include Tata Steel, Tata Motors, Tata Consultancy

Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata

Communications.

The Group's major companies are beginning to be counted globally. Tata Steel

became the sixth largest steel maker in the world after it acquired Corus. Tata Motors

is among the top five commercial vehicle manufacturers in the world and has recently

acquired Jaguar and Land Rover. TCS is a leading global software company, with

delivery centres in the US, UK, Hungary, Brazil, Uruguay and China, besides India.

Tata Tea is the second largest branded tea company in the world, through its UK-

10

based subsidiary Tetley. Tata Chemicals is the world's second largest manufacturer of

soda ash. Tata Communications is one of the world's largest wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the Group is

also gaining international recognition. Brand Finance, a UK-based consultancy firm,

recently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top

100 brands in the world. Business week ranked the Group sixth amongst the "World's

Most Innovative Companies" and the Reputation Institute, USA, recently rated it as

the "World's Sixth Most Reputed Firm."

Founded by Jamsetji Tata in 1868, the Tata Group's early years were inspired by the

spirit of nationalism. The Group pioneered several industries of national importance

in India: steel, power, hospitality and airlines. In more recent times, the Tata Group's

pioneering spirit has been showcased by companies like Tata Consultancy Services,

India's first software company, which pioneered the international delivery model, and

Tata Motors, which made India's first indigenously developed car, the Indica, in 1998

and recently unveiled the world's lowest-cost car, the Tata Nano, for commercial

launch by end of 2008.

The Tata Group has always believed in returning wealth to the society it serves. Two-

thirds of the equity of Tata Sons, the Tata Group's promoter company, is held by

philanthropic trusts which have created national institutions in science and

technology, medical research, social studies and the performing arts. The trusts also

provide aid and assistance to NGOs in the areas of education, healthcare and

livelihoods. Tata companies also extend social welfare activities to communities

around their industrial units. The combined development-related expenditure of the

Trusts and the companies amounts to around 4 per cent of the Group's net profits.

Going forward, the Group 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 is ranked the

world's fourth fastest. The Group aims to build a series of world class, world scale

businesses in select sectors. Anchored in India and wedded to its traditional values

and strong ethics, the Group is building a multinational business which will achieve

11

growth through excellence and innovation, while balancing the interests of its

shareholders, its employees and wider society.

Tata Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) Tata

Group, that has over 87 companies, over 330,000 employees and more than 2.8

million shareholders. With a committed investment of INR 36,000 Crore (USD $7.5

billion) in Telecom (FY 2006), the Group has a formidable presence across the

telecom value chain.

1.2 INTRODUCTION TO TATA COMMUNICATION

Tata Communications, a member of the $62.5 billion Tata Group, is a leading global

provider of a new world of communications. The emerging markets communications

leader leverages its advanced solutions capabilities and domain expertise across its

global and pan-India network to deliver managed solutions to multi-national and

Indian enterprises, service providers and Indian consumers.

Tata Communications' range of services include transmission, IP, converged voice,

mobility, managed network connectivity, hosting and storage, managed security,

12

managed collaboration and business transformation for global enterprises and service

providers, as well as Internet, retail broadband and content services for Indian

consumers. The Tata Global Network encompasses one of the most advanced and

largest submarine cable networks, a Tier-1 IP network, with connectivity to more than

200 countries across 300 Pops, and more than 1 million square feet of data center and

co-location facilities.

Tata Communications' unique emerging market depth and breadth of reach includes a

national fiber backbone network and access to network in over 60 cities and 125 Pops

in India, strategic investments in South African converged services operator, Neotel,

Sri Lanka and Nepal and, subject to fulfillment of conditions precedent, a 50%

ownership in China Enterprise Communications (CEC) providing full country VPN

coverage in China.

Servicing customers from its offices in over 80 cities in 40 countries, Tata

Communications is the number one global international wholesale voice operator and

number one provider of international long distance, enterprise data and Internet

services in India, the Company was named "Best Wholesale Carrier" at the World

Communications Awards in 2006, "Best Pan-Asian Wholesale Provider" at the 2006

and 2007 Capacity Magazine Global Wholesale Telecommunications Awards and

was awarded "Best Progress in Emerging Markets" at the 2008 Mobile

Communication Awards.

Tata Communications Limited along with its global subsidiaries, is listed on the

Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are

listed on the New York Stock Exchange. (NYSE: TCL)

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1.3 Tata Teleservices (Maharashtra) Limited (TTML)

Tata Teleservices Limited (TTSL) is a part of the Tata group of companies. It runs

under the brand name Tata Indicom in India, in various telecom circles of India. Tata

Teleservices spearheads the Group’s 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.

Starting with the major acquisition of Hughes Telecom (India) Limited [now renamed

Tata Teleservices (Maharashtra) Limited] in December 2002, the company swung

into an expansion mode. With a total Investment of Rs 19,924 Crore, Tata

Teleservices has created a Pan India presence spread across 20 circles that includes

Andhra Pradesh, Chennai, Gujarat, J & K, Karnataka, Delhi, Maharashtra,

Mumbai, North East, Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana,

Himachal Pradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata,

Madhya Pradesh and West Bengal.

14

Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices

has established a robust and reliable 3G ready telecom infrastructure that ensures

quality in its services. It has partnered with Motorola, Ericsson, Lucent and ECI

Telecom for the deployment of a reliable, technologically advanced network.

The company, which heralded convergence technologies in the Indian telecom sector,

is today the market leader in the fixed wireless telephony market with a total customer

base of over 3.8 million.

Tata Teleservices’ bouquet of telephony services includes Mobile services, Wireless

Desktop Phones, Public Booth Telephony and Wireline services. Other services

include value added services like 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 & data services such as BREW games, Voice Portal, picture

messaging, polyphonic ring tones, interactive applications like news, cricket,

astrology, etc.

Tata Indicom redefined the existing prepaid mobile market in India, by unveiling their

offering – Tata Indicom "Non Stop Mobile" which allows customers to receive free

incoming calls. Tata Teleservices today has India’s largest branded telecom retail

chain and is the first service provider in the country to offer an online channel

www.ichoose.in to offer postpaid mobile connections in the country.

Today, Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited

serves over 28 million customers in over 5,000 towns. With an ambitious rollout plan

both within existing circles and across new circles, Tata Teleservices offers world-

class technology and user-friendly services in 20 circles.

Tata Teleservices has also acquired GSM licenses for specific circles in India

.

1.4 Nature of the business

15

TTML comes under Tertiary sector of the economy.

1.5 Type and ownership pattern

Statement showing Shareholding Pattern

Category Code

Category of Shareholder

No. ofShareh-older

Total no. of shares

No. of shares held in dematerialized form

Total shareho-lding as a % of total no. of shares % of % of (A+B) (A+B+

C) (A) Shareholding

of promoter & promoter group

(1) Indian a Individuals - - - - - b Central govt. - - - - - c Bodies

corporates 7

1,245,339,393

1,245,339,393 65.64 65.64

d Financial Institution

- - - - -

e Any other - - - - -Sub Total (A) (1)

7

1,245,339,393

1,245,339,393 65.64 65.64

(2) Foreign a Individual - - - - - b Bodies

corporates - - - - -

c Institutions - - - - - d Any other - - - - -

Sub Total (A) (2)

- - - - -

Total Shareholding of promoter & promoter

16

group 7

1,245,339,393

1,245,339,393 65.64 65.64

(B) Public Shareholding

(1) Institution a Mutual funds 1

0 6,386,014

6,386,014 0.34 0.34

b Financial Institutions 2

2 5,076,606

5,076,606 0.27 0.27

c Central govt. 1

37,000

37,000 0.00 0.00

d Venture capital funds

- - - - -

e Insurance companies

7 44,847,690

44,847,690 2.36 2.36

f Foreign institutional investors 42 27,972,585 27,972,585 1.47 1.47

g Foreign venture capital investors

- - - - -

h Any other - - - - - h.1 OCBs

1 1,000 1,000 0.00 0.00

Sub Total (B) (1)

83

84,320,895

84,320,895 4.44 4.44

(2) Non-Institutions

a Bodies corporates 4,40

2 101,164,662

101,161,062 5.33 5.33

b Individuals i Individual

shareholders holding nominal share capital in excess of Rs.1 lakh 634,38

7

352,222,229

348,954,919 18.57 18.57

ii Individual shareholders holding nominal share

17

capital in excess of Rs.1 lakh

3,418102,266,315 102,214,315

5.39 5.39

c Any other i Trusts 25 410,867 410,867 0.02 0.02 ii NRIs 3,775 11,462,443 11,424,043 0.60 0.60 ii.1 Individual

shareholders holding nominal share capital upto Rs.1 lakh

3,620 5,101,373

5,062,973 0.27 0.27

ii.2 Individual shareholders holding nominal share capital in excess of Rs. 1 lakh 155 6,361,070 6,361,070 0.34 0.34

Sub Total (B) (2) 646,00

9

567,530,216 564,168,906 29.91 29.91

Total Public Shareholding (B)=(B)(1)+(B) (2)

646,092

651,851,111 648,489,801 34.36 34.36

TOTAL (A)+(B) 646,09

91,897,190,5

041,893,829,194 100.0

0100.00

c Shares held by custodians and against which Depository Receipts have been issued

- - - - -

GRAND TOTAL (A)+(B)+(C) 646,09

9

1,897,190,504

1,893,829,194 100.00

100.00

1.6 VISION

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Deliver a new world of communication to advance the reach and leadership of their

customer.

1.7 MISSION

TTML committed to deliver competitively superior services, win the affection of the

customers and produce significant financial returns for their shareholders.

This the company will achieve through their services culture of partnering with their

customers in a responsive, trustworthy and reliable manner.

1.8 BOARD OF DIRECTORS

Mr. Ratan N. Tata Mr. K. A. Chaukar

Designation: Chairman Designation: Managing Director

19

Mr. Anil Kumar Sardana Mr. S.K. Gupta

Designation: Managing Director Designation: Group telecom advisor

Dr. J. J. Irani Mr. I. Hussain

Designation: Director Designation: Director

Mr. R. Gopalakrishnan Mr. N. S. Ramachandran

Designation: Director Designation: Director

Mr. N. Srinath Mr. Mukund Govind Ranjan

Designation: CEO & MD Designation: MD

20

.

Mr. S. Ramadorai Mr. Anuj Maheswari

Designation: CEO & Managing Director Designation: Director

1.9 REGISTERED OFFICE

Navi Mumbai, India

1.10 SUBSIDIARIES

Tata Communications Lanka Limited

Tata Communications Lanka Limited is a wholly owned subsidiary set up by Tata

Communications in Sri Lanka. The Sri Lankan telecom market is growing at an

estimated 20-25 percent and permits Tata Communications the opportunity to increase

its sub-continental presence and extend clubbed offerings in the region to

international carriers. Tata Communications Lanka, apart from offering to carrier

relations to the basic and mobile operators of Sri Lanka, also offers International Pvt.

Leased services and MPLS based Global IP VPN services. 

Tata Communications America Inc.

21

In June 2003, Tata Communications formed Tata Communications America Inc., a

wholly owned subsidiary in the U.S., to provide IP/VPN solutions. This venture

allows end-to-end management of Tata Communications Internet bandwidth from

India to the U.S., providing improved service to its Internet, data and IP/VPN

customers. Tata Communications America Inc. has been granted International

Common Carrier 214 License by the U.S. Federal Communications Commission.

Tata Communications UK Limited

Tata Communications UK Ltd. is a subsidiary of Tata Communications America Inc.

and was formed in July 2003 to provide telecom and value added services to the UK

and European markets. In March 2005, Tata Communications UK Ltd launched its

wholesale voice offering. Tata Communications UK Ltd is focused on providing the

services to European carriers seeking Indian termination service. It has interconnected

with a number of leading regional and alternative telecom operators across Europe to

terminate their India-bound traffic. Through a strategic partnership with

Interoute, Tata Communications can provide next generation voice services using

TDM or VoIP for interconnection.

Tata Communications Singapore Pte Limited

Tata Communications set up Tata Communications Singapore Pte. Limited (VSPL) in

January 2004 as a wholly owned subsidiary. It owns and maintains the landing station

for the TIIS cable that Tata Communications has set up. The company also acquires

and sells other cable capacity through the Asia-Pacific region and serves as the

headquarter for Tata Communications international operations. VSPL has obtained

the required Facilities Based Operators licence from the Singapore authorities to own

and operate facilities used in the provision of telecom services.

Tata Communications Hong Kong Limited

Tata Communications Hong Kong Ltd. is a subsidiary of Tata Communications

Singapore Pte. and was formed in July 2004 to provide telecom and value added

services in that region.

United Telecom Limited

22

Tata Communications, MTNL and Telecommunications Consultants India Ltd.

(TCIL), have set up a joint venture named United Telecom Limited (UTL), along with

Nepal Ventures Private Limited (NVPL). While NVPL holds 20% in the consortium,

the other partners hold 26.66% each.

Tata Teleservices Limited

The Company has an equity interest of 19.9% in the equity capital of Tata

Teleservices Limited ("TTSL"). TTSL and its subsidiaries provide basic telephony

and cellular services across India, with the exception of Jammu and Kashmir and the

North Eastern States. Tata Teleservices touches the lives of more than 7 million

customers through its wire line telephones, fixed wireless telephones and CDMA

mobile services. Tata Teleservices and Tata Communications together offer products

and services under the brand name of Tata Indicom.

CHAPTER-2

MARKET ANALYSIS

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2.1 BRAND

Branding has become an important element in telecom marketing in India. Now we

are seeing a standardization of tariffs. Marketers are now trying to retain the

customers through emotional connection with the brand. The war is now on two

fronts. On one hand, the brands are trying to offer value added services to customers.

Alongside the brands are investing in building connection with the customers.

Tata Indicom was one of the first telecom operators to offer CDMA mobile services

in India. Launched in 1996, the brand is the youngest of the lot. Infact it was one the

first brands to be analysed in this blog.

Indicom has come a long way since the first post on it. Now its one of the major

players in the CDMA space with a market share of around 9.1 % in the highly

competitive telecom market.

Tata Indicom has been positioned earlier using the “Do more live more “platform.

The brand has been investing heavily on this platform with high decibel advertising

featuring Bollywood stars - Kajol and Ajay Devgan..

Tata Indicom has launched a new campaign and a new positioning.

24

The brand has now taken a more emotional platform to promote itself. It’s a sort of

laddering up. The brand is following the strategy of Airtel which has perfected the art

of laddering up.

The new campaign of Tata Indicom now talk about "Listening to your heart ". The

new campaign shows a small town girl making it big in athletics.

The initial impression about the ad is positive. Its a well made ad and its nice to

watch.

.

2.2 PRODUCTS

The noun product is defined as a "thing produced by labor or effort" or the "result of

an act or a process", and stems from the verb produce from the Latin prōdūce (re),

(to) lead or bring forth. Since 1575, the word "product" has referred to anything

produced. Since 1695, the word has referred to "thing or things produced". The

economic or commercial meaning of product was first used by political economist

Adam Smith.

In marketing, a product is anything that can be offered to a market that might satisfy a

want or need. In retailing, products are called merchandise. In manufacturing,

products are purchased as raw materials and sold as finished goods. Commodities are

usually raw materials such as metals and agricultural products, but a commodity can

also be anything widely available in the open market. In project management,

products are the formal definition of the project deliverables that make up or

contribute to delivering the objectives of the project.

25

In general usage, product may refer to a single item or unit, a group of equivalent

products, a grouping of goods or services, or an industrial classification for the goods

or services.

The products of Tata Indicom are as follows:

2.2.1 Mobile Phones

2.2.2 Internet and Broadband

2.2.3 Landline and Wireless Phones

2.3 PRODUCT MIX

Product mix is a combination of products manufactured or traded by the same

business house to reinforce their presence in the market, increase market share and

increase the turnover for more profitability. Normally the product mix is within the

synergy of other products for a medium size organization. However large groups of

Industries may have diversified products within core competency.

To explain, Bajaj Electrical a household name in India, has almost ninety products in

i8ts portfolio ranging from low value items like bulbs to high priced consumer

durables like mixers and luminaries and lighting projects. This product mix contains

product lines and product items .In other words it’s a composite of products offered

for sale by a firm.

One of the realities of business is that most firms deal with multi-products .This helps

a firm diffuse its risk across different product groups. Also it enables the firm to

appeal to a much larger group of customers or to different needs of the same customer

group .Tata Indicom product mix includes mobile phones, internet and broadband,

landline phones and wireless phones . It seeks to satisfy the needs of individuals,

students, business man, business houses and also households.

2.4 PRODUCT LINE

26

A product line is "a group of products that are closely related, either because they

function in a similar manner, are sold to the same customer groups, are marketed

through the same types of outlets, or fall within given price ranges."

Many businesses offer a range of product lines which may be unique to a single

organization or may be common across the business's industry. In 2002 the US

Census compiled revenue figures for the finance and insurance industry by various

product lines such as "accident, health and medical insurance premiums" and "income

from secured consumer loans". Within the insurance industry, product lines are

indicated by the type of risk coverage, such as auto insurance, commercial insurance

and life insurance.

In tata indicom, product lines are:

2.4.1 MOBILE PHONES

2.4.1.1 Prepaid Mobile

2.4.1.2 Postpaid Mobile

2.4.1.3 Mobile handsets

2.4.1.4 Mobile Online

2.4.1.5 Coverage

2.4.2 INTERNET AND BROADBAND

2.4.2.1 Dialup Internet

2.4.2.2 Wireless Internet

2.4.2.3 Mobile Internet

2.4.3 LANDLINE AND WIRELESS PHONES

2.4.3.1 Wireless Phones

2.4.3.2 Landline Phones

2.4.3.3 Calling Card

2.4.3.4 Internet on Landline

2.5 REGIONAL PRESENCE

27

Tata Teleservices operates in more than 3100 towns across 20 circles i.e. Andhra

Pradesh, Chennai, Gujarat, Karnataka, New Delhi, Maharashtra, Mumbai, Tamil

Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh

(E), Uttar Pradesh (W), Kolkata, Kerala, Madhya Pradesh and West Bengal.

2.6 DISTRIBUTIONAL CHANNEL COMPETITORS

Tata Teleservices (TTML) provides telecommunications services to about 21 million

clients in 4,000 towns in India. Among its services (under the Tata Indicom brand

name) are public booth telephony, mobile and wire line services, and fixed wireless

phones. The company also provides Wi-Fi Internet services, three-way conferencing,

and post-paid internet services. It has sales and distribution partnerships with such

equipment providers as Motorola and ECI Telecom. TTML also provides additional

wireless phone service through a joint venture with Virgin Mobile. The company,

founded in 1996.

Competitors

1. BSNL

Bharat Sanchar Nigam Limited (BSNL) keeps most of India talking. The company

provides local-exchange access and domestic long-distance services through a

network of more than 47 million access lines covering most of India. (It does not

provide service in Delhi and Mumbai.) Serving business and consumer customers, it

also offers GSM and CDMA-based wireless communications, satellite service,

telegraph, data and Internet services, and managed network services. BSNL is one of

two state-controlled telcos in India, along with Mahanagar Telephone Nigam Limited

(MTNL), which serves Delhi and Mumbai.

2. BHARTI AIRTEL

28

Bharti Airtel is one of the leading alternative providers of telecommunications

services in India. Through its subsidiaries, the company (formerly Bharti Tele-

Ventures) operates through three divisions: mobile, broadband and telephone, and

enterprise services. The enterprise services group includes units for both long-distance

carriers and for corporate clients. Bharti Airtel has nearly 67 million total customers --

approximately more than 64 million GSM mobile and almost 3 million fixed-line

customers. The company was founded as Bharti Tele-Ventures in 1995 and changed

its name in early 2006 to Bharti Airtel Limited. It is a unit of Indian conglomerate

Bharti Enterprises.

3. MAHANAGER TELEPHONE NIGAM LIMITED

Mahanagar Telephone Nigam Limited (MTNL) can help you call a deli in Delhi, or

mumble to a friend in Mumbai. The company provides fixed-line and wireless

telecommunications services for two of the largest metropolitan areas of India. The

company also provides Internet access services. It divides its operations into two

business segments: basic (fixed line, CDMA-based mobile, and Internet access) and

cellular (GSM-based mobile). Outside of India, the company offers services in Nepal

(through a joint venture) and Mauritius. The government of India owns 56% of the

company.

2.7 MARKET SHARE

Tata Indicom market share has increased from 3.53 per cent in March '04 to 9.7 per

cent by March '07.

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2.8 POSITIONING

Tata. Indicom has come a long way since first post on it. Now its one of the major

players in the CDMA space with a market share of around 9.1 % in the highly

competitive telecom market.

Last month the brand undertook a major repositioning exercise and is trying to

position itself in an emotional platform rather than a functional one.

Tata Indicom has been positioned earlier using the “Do more live more “platform.

The brand has been investing heavily on this platform with high decibel advertising

featuring Bollywood stars- Kajol and Ajay Devgan.

Tata Indicom has launched a new campaign and a new positioning.

30

The new ad is also a result of change in the advertising agency. The account has

moved to Contract Advertising.

The new campaign of Tata Indicom now talks about "Listening to your heart ". The

new campaign shows a small town girl making it begin athletics.

The concept of Rags to Riches has been one of the most used positioning platforms

worldwide. It does strikes a chord but when every other brand tries the same chord,

the chord gets broken.

Branding has become an important element in telecom marketing in India. Now we

are seeing a standardization of tariffs. Marketers are now trying to retain the

customers through emotional connection with the brand. The war is now on two

fronts. On one hand, the brands are trying to offer value added services to customers.

Alongside the brands are investing in building connection with the customers.

Tata Indicom was struggling to find a right positioning platform so far. Now they

have a reasonable platform to work with.

2.9 MARKETING STRATEGIES

A marketing strategy outlines the manner in which the marketing mix is used to

attract and satisfy the target market(s) and accomplish an organization's objectives.

Tata Indicom, the mobile services by Tata Teleservices, has its eyes fixed on a three

pillar strategy that it has defined for the brand’s growth.

For building the brand image, which is the first pillar of the strategy, they have to go

on from being positioned as a cheap brand. There is nothing wrong in being low-

priced, but if they also offer something more apart from that.

The company is looking at expanding its retail network as well. It plans to take its

store count to 3,500, and all True Value hubs and stores will be singularly named Tata

31

Indicom Exclusive Stores. Customization of the retail experience has been an

important consideration.

Innovation is the second pillar of the company’s strategy. They believes that there has

to be ‘new news’. “Unless, as a brand, you are refreshing yourself, which goes beyond

changing from blue to red, and actually moving towards good product offerings, you

are moving nowhere,”. Driving towards innovations, the company plans to leverage

its product –mobile Internet – to connect with a significant target group, the youth.

With the objective of showing off its VAS (value added service) offerings, Tata

Indicom has conceptualized and executed an AFP (advertiser’s funded programme),

‘Fun on the Run’, which airs on Zee TV and, as a branded reality show, showcases

TV celebrities utilizing the services of the brand.

The third pillar is the objective of driving ‘numbers’ by addressing the popular

segment, which the company plans to do by offering exciting products, services and

packages.

Television accounts for the maximum share of the brand’s advertising pie. Apart from

advertising through traditional media, the company is looking at sponsoring seminars

and taking up direct marketing initiatives, which will give it the opportunity to

showcase the product solution offered by the brand as well as to build a strong

imagery.

In March this year, the company moved to the current positioning, ‘Switch to Tata

Indicom and Experience the Difference’, which worked wonders for it.

The Brand awareness has moved to 85 per cent, while ad awareness has shot up to 90

per cent. And brand preference has moved up to 21 per cent, as compared to 14 per

cent at the beginning of the year.

As per TRAI data, for the quarter ending June 30, 2007, the total subscriber base for

wireless services was 184.92 million subscribers, out of which 147.52 million were

urban subscribers and 37.40 million, rural subscribers. Tata Indicom stands fifth with

a subscriber base of 17.32 million and 9.37 per cent market share.

32

No Language Barrier for Tata Indicom Customers

The company launches new Hindi website, www.tataindicom.com for non-English

speaking customers and also makes it disabled friendly.

It aims to build a stronger emotional connect with customers. Tata Indicom

subscribers would now be able to access detailed information about the company, its

products and services, besides accessing i-choose (online retail store), Experience

Centre (games and music centre), Tariff Comparison Module, Corporate Blog and the

Consumer Forum

Furthermore, both the English and Hindi websites of the company are W3C-

compliant, thereby enabling those who are visually-challenged the opportunity to

independently know more about the company and its portfolio of differentiated

products and services.

"This is a key initiative launched by TTSL to target customers who sometimes cannot

avail unique services due to language barriers. This localized website will empower

the customers to make informed decisions and know more about the company and its

offerings in an organized fashion. Tata Teleservices Limited. "Not just this, they have

also taken a step further and made their website disabled-friendly. The overall

objective is simple — step up all overtures to connect with the subscribers, and keep

them informed about the best available services and practices in the industry."

The website, which spins around the emotional quotient in keeping with Tata

Indicom's 'Suno Dil Ki Awaaz' brand campaign, is perfectly crafted to ensure

customer trust in the services provided by the company, said the company.

In addition, Tata Indicom also launched Consumer Forum blog -- an initiative to

provide an opportunity within the brand Tata Indicom's ecosystem for consumers to

generate their own content about the brand Tata Indicom and their experiences with

its products and services.

33

CHAPTER-3

34

FINANCIAL ANALYSIS

3.1 STOCK EXCHANGE

TTML is not listed in any of the stock exchange.

3.2 WEIGHTAGE IN INDEX

Tata Teleservices does not form a part of Sensex and Nifty.

3.3 CAPITAL STRUCTURE AND AUTHORIZED CAPITAL

Period

From-

To

Instrumen

t

Authorize

d Capital

(Rs. crore)

Issued

Capita

l

Shares Face

Valu

e

Capita

l

35

(Rs. crore)

200

62007

Equity

Share 214.75 214.75

28500000

010 214.75

200

52006

Equity

Share 214.75 214.75

28500000

010 214.75

200

42005

Equity

Share 214.75 214.75

28500000

010 214.75

3.4 TURNOVER

The Turnover of Tata Teleservices Maharashtra Limited for the year 2008 was around

13,070 crore

3.5 BALANCE SHEET FOR CURRENT YEAR

Particulars Mar 2008

INCOME:

Share Capital 1893.56

Reserves & Surplus -2094.15

Total Shareholders Funds -200.59

EXPENDITURE:

Secured Loans 2098.09

Unsecured Loans 528.78

Total Debt 2626.87

Total Liabilities 2426.28

Gross Block 4524.71

Less: Accumulated Depreciation 1663.58

36

Net Block 2861.13

Capital Work in Progress 125.00

Investments 0.00

PBIDT 2.22

Sundry Debtors 201.48

PBDT 34.46

Loans and Advances 216.99

Total Current Assets 455.15

Current Liabilities 981.91

Provisions 33.09

Total Current Liabilities 1015.00

Net Current Assets -559.85

Miscellaneous Expenses not w/o 0.00

Total Assets 2426.28

Contingent Liabilities 945.85

3.6 AUDITING COMPANY

Deloitte Haskins & Sells, Chartered Accountants has audited auditors report of

TTML for the year ending 2008.

AUDITORS REPORT

The audit report as filed by Deloitte Haskins & Sells, Chartered Accountants.

A.B. Jani, Partner

Place: Mumbai, Membership No. 46488

Dated: May 23, 2008

37

1. We have audited the attached Balance sheet of Tata Teleservices

(Maharashtra) Limited as at 31st March 2008 and also the Profit and Loss Account

and the Cash Flow Statement for the year ended on that date, annexed thereto.

These financial statements are the responsibility of the Company's management. Our

responsibility is to express an opinion on these financial statements based on our

audit.

2. We conducted our audit in accordance with the auditing standards generally

accepted in India. Those Standards require that we plan and perform the audit to

obtain reasonable assurance about whether the financial statements are free of

material misstatements. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An audit also

includes assessing the accounting principles used and significant estimates made by

management, as well as evaluating the overall financial statement presentation. We

believe that our audit provides a reasonable basis for our opinion.

3. As required by Companies (Auditor's Report) Order, 2003 issued by the Central

Government in terms of section 227 (4A) of the Companies Act, 1956, we enclose in

the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the

said Order.

4. Further to our comments in the Annexure referred to above, we report that:

a) We have obtained all the information and explanations, which to the best of our

knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the

Company so far as appears from our examination of the books;

c) The Balance sheet, Profit and Loss Account and Cash Flow Statement dealt with by

this report are in agreement with the books of account;

38

d) In our opinion, the Balance sheet and Profit and Loss Account dealt with by this

report comply with the accounting standards referred to in sub-section (3C) of

section 211 of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on 31st

March, 2008 and taken on record by the Board of Directors, we report that none of

the directors is disqualified as on 31st March, 2008 from being appointed as a

director in terms of clause (g) of sub- section (1) of section 274 of the Companies

Act, 1956.

f) In our opinion and to the best of our information, and according to the explanations

given to us, the said accounts read with the Significant Accounting Policies and

notes thereon, give the information required by the Companies Act, 1956, in the

manner so required and give a true and fair view in conformity with the accounting

principles generally accepted in India:

i) In case of the Balance sheet, of the state of affairs of the Company as at 31st March,

2008;

ii) In case of the Profit and Loss Account, of the loss for the year ended on that date;

and

iii) In case of the Cash Flow Statement, of the cash flows for the year ended on that

date.

For Deloitte Haskins & Sells

Chartered Accountants

A.B. Jani

Partner

Place: Mumbai, Membership No. 46488

Dated: May 23, 2008

ANNEXURE TO THE AUDITOR'S REPORT

39

Re: Tata Teleservices (Maharashtra) Limited

(Referred to in Paragraph 3 of our report of even date)

i) The nature of the Company's activities are such that clauses (xiii) and (xiv) of

paragraph 4 of the Companies (Auditor's Report) Order, 2003 are not applicable to the

Company for the year.

ii) In respect of its fixed assets

(a) The Company has maintained proper records showing full particulars, including

quantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management during the

year but there is a regular program of verification which, in our opinion, is

reasonable having regard to the size of the Company and the nature of its assets. No

material discrepancies were noticed on such verification.

(c) The Company has not disposed off a substantial part of fixed assets during the

year.

iii) In respect of its inventories:

(a) The stocks of trading goods have been physically verified during the year by the

management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of stocks followed by the management

are reasonable and adequate in relation to the size of the Company and the nature

of its business.

(c) The Company has maintained proper records of its inventories and no material

discrepancies were noticed on physical verification.

40

iv) The Company has not granted or taken any loans, secured or unsecured from

companies, firms or other parties covered in the register maintained under Section

301 of the Companies Act, 1956 and accordingly the sub-clauses (a) to (g) of

clause (iii) of the Order are not applicable to the Company.

v) In our opinion, and according to the information and explanations given to us, there

is an adequate internal control system commensurate with the size of the Company

and nature of its business with regard to purchase of inventory and fixed assets and

sale of goods and services. During the course of our audit we have not observed any

continuing failure to correct major weaknesses in the internal control system.

vi) a) According to the information and explanations given to us, we are of the

opinion that the particulars of contracts/ arrangements that are needed to be entered

into the register maintained under section 301 of the Companies Act, 1956 have

been so entered.

b) According to the information and explanations given to us, where such

transactions are in excess of Rs. 5 lakhs in respect of any party, the transactions

have been made at prices which are, prima facie, reasonable having regard to the

prevailing market price/ similar transactions with other parties at the relevant time.

vii) The Company has not accepted any deposits from the public.

viii) In our opinion, the Company has an internal audit system commensurate with the

size of the Company and the nature of its business.

ix) We have broadly reviewed the books of account and records maintained by the

Company relating to telecommunication activities pursuant to the order made by the

Central Government for maintenance of cost records under clause (d) of sub-section

(1) of Section 209 of the Act and are of the opinion that prima facie the prescribed

accounts and records have been made and maintained. We have, however, not made

a detailed examination of the records with a view to determining whether they are

accurate or complete.

41

x) According to information and explanations given to us in respect of statutory and

other dues:

(a) The Company has generally been regular in depositing undisputed statutory

dues in respect of Provident Fund, Employees' State Insurance, Income-tax, Sales-

tax, Wealth tax, Service tax, Custom duty, cess and any other material statutory dues

with the appropriate authorities during the year.

(b) According to information and explanation given to us details of disputed

Sales tax / Income-tax / Customs duty / wealth tax / Service tax/ Excise Duty and

Cess, which have not been deposited as at March 31, 2008, on account of disputes are

given below:

Name of Nature of the Amount Period to Forum where

statute dues (Rs. In crores) which the dispute is

amount pending

relates

The Income- Income tax 0.08 A.Y. 1998-99 Income Tax

tax Act, demand Appellate

1961 Tribunal

xi) In our opinion, and according to the information and explanations given to us, the

accumulated losses of the Company, at the end of the financial year are more than

fifty percent of its net worth. The Company has not incurred cash losses during the

financial year under audit and in the immediately preceding financial year.

xii) In our opinion and according to information and explanations give to us, the

Company has not defaulted in repayment of dues payable to a financial institutions

and banks.

xiii) According to the information and explanations given to us, the Company has

not granted any loans or advances on the basis of security by way of pledge of shares,

debentures and other securities.

42

xiv) According to the information and explanations given to us, the terms and

conditions of the guarantees given by the Company for loans taken by others from

banks or financial institutions, are not prima facie prejudicial to the interests of

the Company.

xv) According to the information and explanations given to us, the term loans

availed by the Company were, prima facie, applied during the year for the purpose

for which the loans were obtained, other than temporary deployment pending

application.

xvi) According to information and explanations given to us and on an overall

examination of the balance sheet of the Company, funds raised on short term basis

have, prima facie, not been used during the year for long term investment.

xvii) According to information and explanations given to us, the Company has not

made any preferential allotment of shares to parties and companies covered in the

Register maintained under Section 301 of the Companies Act, 1956.

xviii) The Company has not issued any debentures during the year.

xix) The Company has not raised any money by way of public issues during the year.

xx) According to the information and explanations given to us, no fraud on or by the

Company was noticed or reported during the year.

3.7 BALANCE SHEET

Particulars Mar 2008 Mar 2007 Mar 2006

INCOME:

Share Capital 1893.56 1809.50 1520.59

Reserves & Surplus -2094.15 -2130.71 -2018.20

Total Shareholders Funds -200.59 -321.21 -497.61

EXPENDITURE:

43

Secured Loans 2098.09 1696.26 1080.12

Unsecured Loans 528.78 332.61 1031.73

Total Debt 2626.87 2028.87 2111.85

Total Liabilities 2426.28 1707.66 1614.24

Gross Block 4524.71 4053.52 3646.17

Less: Accum. Depreciation 1663.58 1826.85 1384.66

Net Block 2861.13 2226.67 2261.51

Capital Work in Progress 125.00 203.17 175.08

Investments 0.00 0.00 0.00

PBIDT 2.22 2.22 0.00

Sundry Debtors 201.48 170.32 155.80

PBDT 34.46 83.61 27.39

Loans and Advances 216.99 171.37 146.59

Total Current Assets 455.15 427.52 329.78

Current Liabilities 981.91 1071.79 1074.19

Provisions 33.09 77.91 77.94

Total Current Liabilities 1015.00 1149.70 1152.13

Net Current Assets -559.85 -722.18 -822.35

Miscellaneous Expenses not

w/o 0.00 0.00 0.00

Total Assets 2426.28 1707.66 1614.24

Contingent Liabilities 945.85 887.10 901.34

3.8 INCOME STATEMENT

Rs. In Cr

 Particulars Mar 2008 Mar 2007 Mar 2006

INCOME:

Sales Turnover & Other Income 1812.59 1435.75 1097.59

Excise Duty 0.00 0.00 0.00

Total Income 1812.59 1437.97 1097.59

EXPENDITURE:

44

Raw Materials 7.80 5.58 0.00

Stock Adjustments 0.00 2.22 0.00

Other Manufacturing Expenses 652.95 578.55 498.89

Power & Fuel Cost 52.27 36.76 30.17

Employee Cost 92.15 69.74 51.38

Selling and Administration

Expenses 358.97 288.84 230.61

Miscellaneous Expenses 151.64 144.57 208.63

Less: Pre-operative Expenditure

Capitalized0.00 0.00 0.00

Profit before Interest, Depreciation

& Tax496.81 313.93 77.91

PBIDT 182.27 177.61 146.22

Profit before Depreciation & Tax 314.54 136.32 -68.31

PBDT 439.35 446.23 471.90

Profit Before Tax -124.81 -309.91 -540.21

Tax 0.93 0.70 0.85

Profit After Tax -125.74 -310.61 -541.06

Adjustment below Net Profit 0.00 -0.56 0.00

P & L Balance brought forward -2544.58 -2233.41 -1692.35

Appropriations 0.00 0.00 0.00

P & L Bal. carried down -2670.32 -2544.58 -2233.41

Equity Dividend 0.00 0.00 0.00

Preference Dividend 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00

Equity Dividend (%) 0.00 0.00 0.00

Earning Per Share (Rs.) 0.00 0.00 0.00

Book Value -1.06 -1.78 -3.27

Extraordinary Items -0.48 4.60 -47.20

3.9 RATIO ANALYSIS

45

Rs. In Cr

Years Mar 2008 Mar 2007 Mar 2006

Debt-Equity Ratio 0.00 0.00 0.00

Long Term Debt-Equity Ratio 0.00 0.00 0.00

Current Ratio 0.31 0.25 0.23

Fixed Assets 0.40 0.37 0.32

Inventory 769.00 1267.55 0.00

Debtors 9.18 8.63 7.35

Interest Cover Ratio 0.32 -0.74 -2.69

PBIDTM (%) 29.10 22.31 7.11

PBITM (%) 3.37 -9.40 -35.98

PBDTM (%) 18.42 9.69 -6.24

CPM (%) 18.37 9.64 -6.32

APATM (%) -7.37 -22.08 -49.41

ROCE (%) 0.00 0.00 0.00

RONW (%) 0.00 0.00 0.00

46

CHAPTER-4

ORGANIZATIONAL

STRUCTURE

4.1 ORGANIZATIONAL STRUCTURE

The form of an organization that is evident in the way divisions, departments,

functions, and people link together and interact. Organization structure reveals

vertical operational responsibilities, and horizontal linkages, and may be represented

by an organization chart. The complexity of an organization's structure is often

proportional to its size and its geographic dispersal. The traditional organization

structure for many businesses in the 20th century was the bureaucracy, originally

defined by Max Weber. More recent forms include the flat, network, matrix, and

virtual organizations. These forms became more prevalent during the last decades of

the 20th century as a result of the trend toward restructuring and downsizing and

developments in telecommunications technology. According to Harold J. Leavitt,

47

organization structure is inextricably linked to the technology and people who

perform the tasks. Charles Handy has shown that it is also directly linked to corporate

culture.

- Service Provider - Global Transmission - Retail Access

- Mobile Operators - Global IP & VPN - Content &

- Consumers - Managed Service Applications

- Mobility

- Transformation Services

Shared Services:

- Customer Services & Operations - Human Resources

- Network & Services Engineering - Corporate Affairs

- Operation Support - Corporate Strategy &

- Information Technology Communication

- Finance & Accounts - Legal

- International Facilities

4.2 NUMBER OF EMPLOYEES

Number of employees in TTML are 3, 30,000

48

TATA COMMUNICATI-

ON

GLOBL VOICE SOLUTION

GLOBAL DATA SOLUTION

RETAIL BROADBAND

4.3 RECRUITMENT & SELECTION PROCEDURE

1. Introduction 

The recruitment of high quality staff is crucial to the objectives and continued

success of the company as a major teaching and research institution. This guidance is

designed to assist managers to recruit and select the best candidate in a fair and

consistent manner. Underpinning this approach is the need to provide equality of

opportunity in employment. They recognizes the skills and abilities of all people

regardless of their sex, sexual orientation, marital status, race, religion, age, creed,

colour or nationality.  This includes equal treatment of existing staff, which are

considered for promotion or acting up arrangements.  

It is the responsibility of each Head of Department/Manager to ensure that policy is

carefully followed within their department. All Heads of Department/Managers

should make members of their staff aware of the obligation to familiarize themselves

with and follow the policy. 

2. Scope 

Company policy is that all vacancies, irrespective of funding source, should normally

be advertised to ensure the widest possible pool of applicants.  This applies equally to

externally funded posts. As a minimum this normally includes advertisement

internally on the web page and notice board. 

Recruitment approval process  

In order to advertise a post the Head of Department/Manager will need to complete a

recruitment authorization form which can be found on the website. 

Research grant funded posts 

49

Written confirmation of funding from the awarding body should be provided to

Research and Grants. This also enables the relevant Research Grants Assistant to give

you a grant code (in the case of new grants), which is included in the Recruitment

Authorization form.

3. New posts and job vacancies 

The occurrence of a vacancy is an opportunity to review the need for the post and its

duties, responsibilities and grade. 

Where the duties of the post have changed significantly the Head of

Department/Manager must provide a new job description and person specification to

their HR Adviser, ideally before financial approval is sought. The HR Adviser is

responsible for agreeing the appropriate grade for the post.   

When a vacancy arises, consideration must be given to staff whose posts are being

made redundant and for whom re-deployment is being sought.

4. Job Description 

A job description is a key document in the recruitment process. The job description

must be produced for every vacancy and drafted prior to taking any other steps in the

process. The job description sets out the main duties and responsibilities of the

position and has a number of purposes 

it is the key document by which appropriate grading of the post is assessed by

the Personnel Department.

It indicates to potential candidates the range of duties and responsibilities of

the post

It is used during appraisal to help evaluate the performance of an individual.

It is a tool for performance management to ensure that the postholder is

fulfilling the appropriate duties to a required standard

5. Person Specification  

50

The person specification is of equal importance to the job description and informs the

selection decision.  The person specification details the minimum skills, experience

and abilities that are required to do the job.  It should be drawn up after the job

description and, with the job description should inform the content of the advert.  The

person specification should be specific, related to the job, and not unnecessarily

restrictive for example only qualifications strictly needed to do the job should be

specified.  The inclusion of criteria that cannot be justified as essential for the

performance of the job may be deemed discriminatory under race and sex

discrimination law, if equal proportions of men and women and those of from

different racial groups could not meet them. The person specification enables

potential applicants to make an informed decision about whether to apply and those

who do apply, to give sufficient relevant detail of their skills and experience in their

application.  The person specification forms the basis of the selection decision and

enables the appointment panel to ensure objectivity in their selection.   

The person specification details the: 

Education/Qualifications and Training

Knowledge/Skills

Previous experience

Personal Characteristics/Other requirements

 

For some jobs a particular qualification(s) may be essential, while for others no single

qualification may be appropriate and a particular type of experience may be just as

relevant as a formal qualification.  Where qualifications are deemed essential these

should reflect the minimum requirements necessary to carry out the job to an

acceptable standard.  The type of experience required of applicants should be

specified. 

6. Further Details for applicants 

The further details provided to an applicant will be as follows

Advertisement

51

Information about the post

Job description and person specification

Summary of the terms and conditions of service

Application procedure

Application form

Equal opportunities monitoring form 

 

7. Approval of Job description/person specification/further details 

Clinical posts 

In the case of senior clinical academic posts the Job Description, Person Specification

and Further Particulars should also be approved by the Institute Dean, Clinical

Director, Medical Director, and the Regional Adviser of the Royal College of the

medical specialism. Special arrangements apply for advertising and selecting

appointment panels. A recruitment authorization form will also need to be completed

for academic clinical appointments. For appointments funded by SLaM an

Establishment Control Form (ECF) will also need to be completed

All Senior Appointments 

In the case of Senior Lecturer, Reader and Professorial posts the Job Description,

Person Specification and Further Particulars should be approved by the Company

Dean. 

 

8. Disclosure 

All candidates are required to disclose whether they have a current conviction. Such a

criminal record will only be taken into account for recruitment purposes, where the

conviction is relevant to the position being applied for, and where this is the case, will

52

not necessarily bar candidates from employment.  Any decision will depend on the

precise nature of the work and the circumstances and background to the offence(s).   

Under the Rehabilitation of Offenders Act 1974 ex-offenders do not have to disclose

spent convictions.  However, there are some exceptions. Under the Exceptions Order

1975 of the Act, employers are entitled to ask candidates to reveal details of all

convictions: current and spent for certain excepted professions; offices and

employments and regulated occupations. For these positions, employers have access

to a new service called Disclosure offered by the Criminal Records Bureau (CRB). 

This service checks whether the successful candidate has a criminal record by

accessing a variety of records held on the Police National Computer, by the

Department of Health (DH) and/or the Department for Education and Employment

(DfEE).  If the Head of Department/Manager believes that the post requires a

disclosure check they must discuss this with their HR Adviser prior to the post being

advertised. 

9. Publicizing the Vacancy  

All posts must be advertised on the company’s web page, vacancy bulletin.HR

arrange this.

Current procedure is that all posts are first subject to three weeks internal

advertisement unless agreement is given by Senior Officers Group. In exceptional

circumstances the Senior Officers’ Group can allow a closing date with a shorter

duration period, or can allow for simultaneous advertising. In this instance the

recruiting manager will need to put forward a written case for such a request. The

written case will be faxed by HR to the Vice Principal’s Secretary. 

Posts will be externally advertised in other specialist, national or international media

once the internal advertising process has been completed or concurrently subject to

the required approval being in place (that is approval by the Vice Principal). 

To ensure that applicants are fully informed about the vacancy for which they are

applying and to ensure that they provide the Institute with all the information we

require, adverts must direct applicants to the further particulars, which will provide

53

more information including how to apply. Advertisements should include the

following points: 

logo

Job title

Salary

Brief details of job

Key details of person specification

Duration of appointment

How to obtain further particulars

Closing date for applications

Interview date or likely week when interviews will be held  

Before any post can be advertised Heads of Department/Managers must provide the

HR Adviser with the following: 

A completed Staff Recruitment Authorization Form signed by all relevant

persons.

(if required) the Vice Principal’s agreement to advertising internally and

externally

draft further particulars, including the job description and person specification

for the post 

 

10. Processing applications        

Heads of Department/Managers need to make their staff aware that when dealing with

enquiries about vacancies it is unlawful to state or imply that applications from one

sex or form a particular racial group would be preferred and to do so may lead to a

complaint of race or sex discrimination against the Company.

Recruitment material can be provided in alternative formats such as large print,

Braille, tape and on disk upon request to Personnel.

54

Care must also be taken when initiating contacts with applicants to ensure that all

applicants are treated in the same way, for example with regard to invitations to visit

the department, informal meetings to discuss the vacancy, and provision of

information. 

The confidentiality of applications must be respected by all those involved in the

selection process. 

11. Interview Panels 

All interviews must be conducted by a panel.  The Head of Department/Manager

should select interview panel members prior to the closing date and preferably prior to

advertisement of the post. This allows panel members to assist in the short listing

process. 

Panels must: 

Consist of a minimum of two people including the immediate line manager of the

vacant post a colleague who is familiar with the area of work and, where

appropriate, a third person, who may be from outside the department to balance

the panels perspective

Consist of staff who have received training in recruitment and selection

Reflect a sex and ethnicity balance wherever possible 

Declare if they already know a candidate

Be willing and able to attend all interviews for the duration of the recruitment

process, to maintain consistency and to ensure fair treatment of all candidates

 

There are specific requirements for the composition of the panel for the appointment

to certain senior posts within the Company, and guidance on these requirements is

available from your HR Adviser.  

The availability of Panel members, particularly when external members are required,

can be a critical factor in determining the length of the recruitment process – a six

week notification time is not uncommon.  For such appointments it is even more

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important to take action to set up the interview date as soon as the job and person

specifications and funding are agreed. 

12. Monitoring 

To ensure the Company’s Equal Opportunities policies are working to benefit all

concerned, it is considered good practice to keep up to date information on how staff

groups are made up(e.g., gender, religion or belief, ethnic groups, those with

disabilities, sexual orientation). Therefore the company asks all applicants to complete

an equal opportunities monitoring form as part of the application process, including

those schemes where no application form is required (e.g. research posts). 

Access to this information will be restricted to a limited number of authorized staff.

The information may also be used for the purposes of compiling employee statistics

and equal opportunities monitoring. 

In order to obtain feedback from new recruits on their experience of the recruitment

and induction process the HR team issue a questionnaire to new recruits when they

have been in post for three months.

13. Short listing  

After the closing date has passed, HR will pass the completed forms to the manager,

and short-listing for interview should take place. Short listing should be carried out by

at least two members of the interview panel, including the immediate line manager.  

The composition of the short listing panel will depend on the nature and seniority of

the post. 

It is the responsibility of the short listing panel to ensure candidates are measured

against the requirements outlined in the person specification.  Short listing decisions

should be based on evidence that the applicant has met the requirements of the person

specification. Short listing panel members should avoid dismissing applicants who

appear to be over qualified. Assumptions should not be made about their reasons for

applying for the post as they may eliminate an otherwise exemplary candidate.  

Consideration of the neatness of the application form for e.g. the neatness of their

handwriting should not be the basis for short listing unless the neatness of their

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handwriting is desirable for the post.  A person with a disability may have some

difficulty in producing a neatly written document and have no access to a typewriter

or a person who can assist them.

The original applications for all applicants, together with a written note of the reasons

for short listing or rejecting applicants must be retained by the HR team for six

months from the date that an appointment decision is made. 

14. Selection Tests and Presentations 

Consideration should be given to using job related selection tests or asking candidates

to give presentations as part of the selection process if there are some areas of the

person specification that are difficult to test at interview. If selection tests or

presentations are to be form part of the selection process they should be discussed

with your HR adviser prior to inviting candidates to interview.  If selection tests or

presentations are to be used, all candidates should be given the same written

information as to how long they will take, the topic area(s) they will be cover, and

what if anything they should prepare in advance. Care should be taken to ensure that

job related tests are well explained in writing for candidates, in plain language, that all

candidates are subject to the same tests under exactly the same conditions, and that

presentation topics do not favour any one candidate. 

Selection tests should be carefully considered-a person with a disability may be

capable of the task but find the time constraints difficult, due to the nature of the

disability; make allowances for this if the job does not require such quick responses. 

 

15. Arrangements for Interviews 

To invite short-listed candidates to interview the following information is needed: 

What the interview will consist of 

Where the presentation test will take place

What visual aids will be available for presentations

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Where and to whom candidates should report on arrival at the Company. 

Interviews should be scheduled as soon after the closing date as reasonably possible,

as delays are likely to lead to a loss of candidates.      

Letters or e-mail to all short listed candidates should include:

Date, time and place of their interview

Instructions on how to find their way to the interview venue

A request that they contact the author of the letter/message if they have any

special requirements in relation to the interview (related to access to the venue

or any other special need related to disability)

If appropriate details of any test or presentation they will be required to take or

anything they should bring with them (e.g. examples of work or proof of

qualifications that are essential to the post).  

The HR Adviser will liaise with the Head of Department/Manager if it is necessary to

make arrangements for any special requirements for e.g. site of the interview, access

to the room building and allow for any assistance the person may require.  

16. Interviewing       

The structure of interviews should be decided in advance.  The Chair of the panel will

agree and record with the appointments panel a format for the interview. This format

should include: 

A welcome by the Chairperson

An introduction to the panel members

A brief explanation of the interview format

A questioning session with reference to the person specification for the post

A section where candidates are offered the opportunity to ask any questions

This will include the questioning areas to be explored by each panel member by

reference to the person specification for the post. The same areas of questioning

should be covered with all candidates and assumptions should not be made regarding

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the expertise or abilities of candidates because of their employment history.  Interview

questions should be phrased so that they do not favour any one candidate. 

Supplementary questions should be used to probe for further information or

clarification where answers are incomplete or ambiguous. Care must be taken to avoid

questions that could be construed as discriminatory for e.g. questions about personal

circumstances that are unrelated to the job. It is, for example, legitimate to ask for

confirmation of whether individuals can comply with the working patterns of the post

but not to ask details of their domestic or child care arrangements etc. It is the

responsibility of the Chair of the panel to ensure that such questions are not asked.   

Where a candidate being interviewed has a disability for which adjustments may need

to be considered, the candidate’s requirements should be discussed with him/her once

the planned questioning is complete. The outcome of these discussions must not

influence the consideration of the candidate’s application. 

17. Making a decision          

The information obtained in the application, the interview, and any selection tests will

allow candidates to be assessed against the person specification and a selection

decision to be made. The assessment must be made on evidence not unsubstantiated

‘feelings’. Be careful not to allow the ‘halo’ effect to influence them.  

If a disabled candidate best meets the person specification, urgent advice must be

sought after the interviews from your HR Adviser regarding what would be

considered ‘reasonable adjustments’ to accommodate the disability in question.  Your

HR Advisor will normally seek advice form the Equality and Diversity Department,

Disability Support Officer and assistance from the Estates Department to ascertain the

likely cost of any required adaptations. In the event that on consideration of the needs

of the potential appointee, it is considered that the adaptations needed would not be

deemed to be ‘reasonable’ under the DDA the HR Adviser will draft a letter to the

applicant explaining why the adaptations cannot be made.  

The Chair of the panel must ensure that a written note of the reasons for selecting the

successful candidate and rejecting others is made and placed on the recruitment file

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together with the original applications, short listing notes, interview notes of all panel

members and selection tests if used. 

The appointments panel must be satisfied that the approach to the selection

procedure and the final decision can be justified at a later date. The panel must also

be aware that they may be required to justify their original decision perhaps several

months after the selection process has taken place to an Employment Tribunal. 

Only a provisional offer can be made to the preferred candidate, i.e. making it clear

that the offer is subject to satisfactory references being received and disclosure checks

or occupational health clearance, where appropriate. This will be followed up by the

HR Adviser. The recruiting manager should not discuss salary when making this

conditional verbal offer. Starting salaries are determined by HR, using a consistent

methodology.  

18. References 

References are normally taken up by the HR team.  If the process is devolved to the

recruiting manager the following needs to be taken into account: 

A standard reference template is available.

Where an applicant indicates that she/he does not want wish his/her current

employer to be contacted prior to interview this should be respected.

Telephone references should be avoided but, where time pressures or the

location of referees dictate that this may be appropriate, recruiters should

ensure that they are certain as to the identity of the person to whom they are

speaking. When conducting telephone references, it is helpful to plan the

conversation beforehand and to have a list of questions ready. A file note

should be made at the time of the telephone conversation and written

confirmation should always be requested.

Referees who respond by fax or e-mail should be asked to provide a hard copy

of their reference on headed paper.   

References are confidential and must be sought ‘in confidence’.  Any request

for disclosure of references must be forwarded to your HR Adviser

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References should only be used for the purpose for which they were intended and

their confidentiality must be maintained. Panel members must return all copies of any

references with the application forms and their interview notes to the Chair on

completion of the recruitment exercise. References must only be kept on the

recruitment file and the personal file held by the HR team. 

19. Appointment 

Offers/ Appointment letters/Salary 

Verbal offers of appointment are normally made by the Chair of the panel, and

followed up by the HR Adviser. All salary discussions should be left to HR. 

Within the financial provision or established grading of the post, the salary offered

should have regard to the applicants experience or expertise. The salaries of other

staff doing similar work within the department with similar experience should also be

taken into account. 

The HR team issues letter of appointment and places individuals on the HRMS

integrated Personnel and Payroll system. 

20. Work permits

If the person to be appointed is a national of a non-EEA country, a work permit may

be required. If so, they must contact their HR Adviser as soon as the interviews are

complete in order that an application can be made to Work permits- the Home

Office’s Immigration and Nationality Directorate- for a work permit. Only the HR

team is authorized to make the application. The process can take up to three months. 

It is essential to the work permit application that the vacancy has been advertised in at

least one national newspaper or journal normally available.

21.  Induction  

It is company policy that Heads of Department/Managers ensure that all members of

staff- whether they are new to the company or moving to a new role from within– go

through an induction process so that they gain an understanding of their work and

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potential contribution to the company, feel supported in their new working

environment and are able to apply their experience and skills at an early stage. This

process includes both permanent staff and those employed on fixed term contracts. 

An induction development plan should be drawn up and monitored by the new

member of staff’s line manager.   

22. Planning - Illustrative Time Scale 

It is helpful to regard recruitment as a project with milestones and resources that are

discussed and agreed at the start of the process. The length of the recruitment

process varies with the type of vacancy, the frequency of the desired publication (e.g.

daily, weekly, fortnightly, monthly), whether it is necessary to advertise both

internally and externally, requirement for work permit, availability of staff, the length

of the individual’s notice period,  impact of the volume of schemes/applicants etc. 

 

4.3 TRAINING AND DEVELOPMENT POLICIES

TTML recognizes that effective training and development offers benefits to the

individual and the organization as a whole, which ultimately contribute to the

achievement of TTML’s objectives. These benefits include:

higher standards of work performance

greater understanding and appreciation of factors affecting work performance

sharing of ideas and dissemination of good practice

effective management and implementation of change

encouragement of team spirit

increased motivation and job satisfaction for the individual

greater understanding of business.

TTML aims to ensure that:

its stated objectives are met

each member of staff understands what his or her work role involves

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each person is developed to enable them to achieve their work objectives

staff are prepared and equipped to deal with changes in TTML

each individual is encouraged to develop his or her potential, both personally

and professionally

lifelong learning is supported and encouraged for all staff.

As evidence of its seriousness about staff development, TTML has made a specific

commitment to the Investors in People initiative.

This policy applies to all staff.

Principles of the training and development policy

Training and development makes TTML a more effective organization.

TTML’s continued success depends upon meeting the objectives set by the

Board and agreed with our founders and partners. This will be achieved

through staffs that are competent in their roles.

Training and development can be defined as any activity designed to help

individuals become more effective at their work by improving, updating or

refining their knowledge and skills. It encompasses a range of activities

including, for example, involvement in various projects, attendance at training

courses, conferences or seminars, visits to other institutions, work shadowing,

formal study, coaching and mentoring.

TTML believes that training and development is a continuous process. There

is an expectation that staff will keep abreast of developments within their own

area of expertise, and all staff are encouraged to undertake development

activities throughout their working lives. The TTML performance review

system allows for specific input from individuals in relation to suggestions for

development at least twice a year.

TTML’s approach to the provision of training and development is to consider

the development needs identified and how these should be met. This is in line

with both Investors in People and TTML’s definition of training and

development, and it focuses attention on development activities that add value

to the business, enabling TTML to meet its strategic objectives.

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The responsibility for identifying training and development needs and carrying

out agreed training and development activity is shared between the line

manager and member of staff. TTML will encourage and support appropriate

training and development. Reasonable time and financial support may be

allocated.

Line managers are responsible for providing support and guidance in relation

to the training and development of those reporting to them, particularly in

relation to the identification of training and development needs and making

sure that appropriate action can be taken as a result.

Each member of staff is expected and encouraged to take ownership and

responsibility for their personal development in relation to their work, within

the framework of support provided by TTML. This includes analyzing one’s

own skills, aptitudes and potential development needs, as well as having a

positive attitude and proactive approach to development.

TTML is committed, through its performance review process, to the creation

of training and development opportunities for all staff, and will work to ensure

equality of opportunity across all training and development activity. Equal

opportunities will be monitored specifically and reported on annually to the

Executive Committee.

TTML will monitor and evaluate training and development activity so as to

continually learn and improve provision. All staff are expected to participate

in the evaluation of training and development.

The training and development policy, and accompanying guidance notes, provide a

framework within which decisions can be made and supported with regard to the

development of individuals and groups within TTML. In addition, please refer to the

policies and guidance notes on induction and the performance review process.

Training and development

Contents

1. The range of training and development opportunities

1.1 Types of training and development activity

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1.2 Drawing on the expertise and experience of others

1.3 Processes by which people learn

2. Responsibilities

2.1 The individual

2.2 Line managers

2.3 Senior management

2.4 The Human Resources (HR) function

3. Links to other HR policies and initiatives

3.1 Performance review and review process

3.2 Induction

3.3 Investors in People

3.4 Capability policy

4. Planning training and development

4.1 Identification of needs

4.2 Training and development plan

5. Access to training and development

5.1 Entitlement to development support

5.2 Equal opportunities

6. Resources for training and development

6.1 Budget for training and development

6.2 Time allocation for training and development

7. Formal qualifications

7.1 Funding of training/further qualifications

7.2 Study and exam leave

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8. Monitoring and evaluation

8.1 Monitoring - maintaining 'learning logs'

8.2 Evaluation

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CHAPTER-5

SWOT ANALYSIS

5.1 SWOT ANALYSIS

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A scan of the internal and external environment is an important part of the strategic

planning process. Environmental factors internal to the firm usually can be classified

as strengths (S) or weaknesses (W), and those external to the firm can be classified as

opportunities (O) or threats (T). Such an analysis of the strategic environment is

referred to as a SWOT ANALYSIS.

The SWOT analysis provides information that is helpful in matching the firm’s

resources and capabilities to the competitive environment in which it operates. As

such, it is instrumental in strategy formulation and selection. The following diagram

shows how a SWOT analysis fits into an environment scan:

SWOT ANALYSIS FRAMEWORK

EEE

STRENGTHS

A firm’s strengths are its resources and capabilities that can be used as a basic for

development. Example of such strengths includes:

patent

strong brand names

good reputation among customers

favorable access to distribution networks

WEAKNESSES

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Environmental Scan

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

SWOT Matrix

The absence of certain strengths may be viewed as a weakness. For example, each of

the following may be considered weaknesses:

lack of patent protection

a weak brand name

poor reputation among customers

high cost structure

lack of access to key distribution channels

OPPORTUNITIES

The external environment analysis may reveal certain new opportunities for profit and

growth. Some examples of such opportunities include:

an unfulfilled customer need

arrival of new technologies

loosening of regulations

removal of international trade barriers

THREATS

Changes in the external environmental also may present threats to the firm. Some

examples of such threats include:

shifts in consumer tastes away from the firm’s products

emergence of substitute products

new regulations

increased trade barriers

The SWOT Matrix

A firm should not necessarily pursue the more lucrative opportunities. Rather, it may

have a better chance at developing competitive advantage by identifying a fit between

the firm’s strengths and upcoming opportunities. In some cases, the firm can

overcome weaknesses in order to prepare itself to pursue a compelling opportunity.

The SWOT matrix is show

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SWOT Matrix

SWOT Matrix

STR

SWOT Analysis of TTML

SWOT Analysis

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STRENGTHS WEAKNESSES

OPPORTUNITIES S-O strategies W-O strategies

THREATS S-T strategies W-T strategies

- Technological skills - Technological skills

MY LEARNINGS FROM THIS PROJECT

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POSITIVE NEGATIVEStrengths Weaknesses

- Technological skills - Absence of important skills

- Leading brands - Weak brands

- Distribution channels - Poor access to distribution

- Customer Relationship - Low customers retention

- Production quality - Unreliable product/ services

- Scale - Sub-scale

- Management - Management

Opportunities Threats

- Changing customer tastes - Changing customers tastes

- Liberalization of geographical - Closing of geographical markets markets

- Technological advances - Technological advances

- Changes in government politics - Changes in government politics

- Lower personal taxes - Tax increases

- Change in population age-structure - Change in population age-structure

- New distributional channel - New distribution channels

While preparing this project report I learned lots of facts about Tata Teleservices

Maharashtra Limited which I never knew before. It was a great experience making

this project report as it taught me the following:

How did it developed its business?

Its market share

Its distributional channel

Its brands, product mix and product lines

The marketing strategies

The strengths, weaknesses, opportunities & threats

Training & development policies.

Recruitment & selection procedures

BIBLIOGRAPHY

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http://www.google.com

http://www.tata teleservices maharashtra ltd.com

http://www.moneycontrol.com/stocks/company_info/company_history.php?sc_did=I

http://www.sify.com

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