Project Repot (M.M.ZUHEB.P2009)

CHAPTER: I INTRODUCTION
1.1 TELECOMMUNICATION Telecommunication is so vital to our lives, to our ability to compete in business, and to our access to the political process. The Telecommunication industry is a system of switches and lines that interconnected to provide communication between multiple parties. The concept of universal service has thus for only been applied to basic telephone service.
1.2 TELECOMMUNICATION - MEANING Telecommunication is the assisted transmission of signals over a distance for the purpose of communication. In earlier times, this may have involved the use of smoke signals, drums, semaphore, flags, or heliograph. In modern times, telecommunication typically involves the use of electronic transmitters such as the telephone, television, radio or computer. Early inventors in the field of telecommunication include Antonio Meucci, Alexander Graham Bell, Guglielmo Marconi and John Logie Baird. Telecommunication world product. 1.3 EARLY TELECOMMUNICATIONS Early forms of telecommunication include smoke signals and drums. Drums were used by natives in Africa, New Guinea and South America whereas smoke signals were used by natives in North America and China. Contrary to what one might think, these systems were often used to do more than merely announce the presence of a camp. In the middle ages, chains of beacons were commonly used on hilltops as a means of relaying a signal. Beacon chains suffered the drawback that they could only pass a single bit of information, so the meaning of the message such as "the enemy has been is an important part of the world economy and the telecommunication industry's revenue has been placed at just under 3 percent of the gross
CMR CENTER FOR BUSINESS STUDIES, BANGALORE 1
sighted" had to be agreed upon in advance. One notable instance of their use was during the Spanish Armada, when a beacon chain relayed a signal from Plymouth to London. In 1792, Claude Chappe, a French engineer, built the first fixed visual telegraphy system (or semaphore line) between Lille and Paris. However semaphore suffered from the need for skilled operators and expensive towers at intervals of ten to thirty kilometers (six to nineteen miles). As a result of competition from the electrical telegraph, the last commercial line was abandoned in 1880. Homing pigeons have occasionally been used through history by different cultures. Pigeon post is thought to have Persians roots and was used by the Romans to aid their military. Frontinus said that Julius Ceasar used pigeons as messengers in his conquest of Gaul. The Greeks also conveyed the names of the victors at the Olympic Games to various cities using homing pigeons. In the early 19th century, the Dutch government used the system in Java and Sumatra. And in 1849, Paul Julius Reuter started a pigeon service to fly stock prices between Aachen and Brussels, a service that operated for a year until the gap in the telegraph link was closed. 1.4 TELEGRAPH AND TELEPHONE The first commercial electrical telegraph was constructed by Sir Charles Wheatstone and Sir William Fothergill Cooke and opened on 9 April 1839. Both Wheatstone and Cooke viewed their device as "an improvement to the [existing] electromagnetic telegraph" not as a new device. Samuel Morse independently developed a version of the electrical telegraph that he unsuccessfully demonstrated on 2 September 1837. His code was an important advance over Wheatstone's signaling method. The first transatlantic telegraph cable was successfully completed on 27 July 1866, allowing transatlantic telecommunication for the first time.
The conventional telephone was invented independently by Alexander Bell and Elisha Gray in 1876. Antonio Meucci invented the first device that allowed the electrical
transmission of voice over a line in 1849. However Meucci's device was of little practical value because it relied upon the electrophonic effect and thus required users to place the receiver in their mouth to hear what was being said. The first commercial telephone services were set-up in 1878 and 1879 on both sides of the Atlantic in the cities of New Haven and London. 1.5 TELEPHONE The telephones play a major role in communicating in this era. The telephone are of multipurpose and are not restricted to just communicating any more. Alexander Graham Bell patented the telephone in 1876 and formed bell telephone which licensed local telephone exchange in major US cities. AT&T was formed in 1885 to connect the local bell companies when the telephone was first invented, not everyone appreciated its importance. In fact, western union was at first offered the patent to this invention but they refused it. It is expensive to maintain local telephone services with all the wiring and plant that must be maintained. Long distance services with all the wiring and plant that must be maintained. Long distance services, on the other hand, are much less expensive to provide most of it is now carried by microwave and other technologies which are less expensive to operate so a number of public policy issues emerge with regard to subsidization, supposed completion and telephone rates Optical fiber provides cheaper bandwidth for long distance communication. In an analogue telephone network, the caller is connected to the person he wants to talk to by switches at various telephone exchanges. The switches form an electrical connection between the two users and the setting of these switches is determined electronically when the caller dials the number. Once the connection is made, the caller's voice is transformed to an electrical signal using a small microphone in the caller's handset. This electrical signal is then sent through the network to the user at the other end where it is transformed back into sound by a small speaker in that person's handset. There is a separate electrical connection that works in reverse, allowing the users to converse.
1.6 FIXED-LINE TELEPHONES The fixed-line telephones in most residential homes are analogue that is, the speaker's voice directly determines the signal's voltage. Although short-distance calls may be handled from end-to-end as analogue signals, increasingly telephone service providers are transparently converting the signals to digital for transmission before converting them back to analogue for reception. The advantage of this is that digitized voice data can travel side-by-side with data from the Internet and can be perfectly reproduced in long distance communication (as opposed to analogue signals that are inevitably impacted by noise). 1.7 MOBILE PHONES Mobile phones have had a significant impact on telephone networks. Mobile phone subscriptions now outnumber fixed-line subscriptions in many markets. Sales of mobile phones in 2005 totaled 816.6 million with that figure being almost equally shared amongst the markets of Asia/Pacific (204 m), Western Europe (164 m), CEMEA (Central Europe, the Middle East and Africa) (153.5 m), North America (148 m) and Latin America (102 m). In terms of new subscriptions over the five years from 1999, Africa has outpaced other markets with 58.2% growth. Increasingly these phones are being serviced by systems where the voice content is transmitted digitally such as GSM or W-CDMA with many markets choosing to depreciate analogue systems such as AMPS.
1.8 DEVELOPMENT IN THE TELEPHONE There have also been dramatic changes in telephone communication behind the scenes. Starting with the operation of TAT-8 in 1988, the 1990s saw the widespread adoption of systems based on optic fibres. The benefit of communicating with optic fibres is that they offer a drastic increase in data capacity. TAT-8 itself was able to carry 10 times as many telephone calls as the last copper cable laid at that time and today's optic fibre cables are able to carry 25 times as many telephone calls as TAT-8.
This increase in data capacity is due to several factors: First, optic fibres are physically much smaller than competing technologies. Second, they do not suffer from crosstalk which means several hundred of them can be easily bundled together in a single cable. Lastly, improvements in multiplexing have led to an exponential growth in the data capacity of a single fibre. Assisting communication across many modern optic fibre networks is a protocol known as Asynchronous Transfer Mode (ATM). The ATM protocol allows for the sideby-side data transmission mentioned in the second paragraph. It is suitable for public telephone networks because it establishes a pathway for data through the network and associates a traffic contract with that pathway. The traffic contract is essentially an agreement between the client and the network about how the network is to handle the data; if the network cannot meet the conditions of the traffic contract it does not accept the connection. This is important because telephone calls can negotiate a contract so as to guarantee themselves a constant bit rate, something that will ensure a caller's voice is not delayed in parts or cut-off completely. There are competitors to ATM, such as Multiprotocol Label Switching (MPLS), that perform a similar task and are expected to supplant ATM in the future.
1.9 HOME NEED COMMUNICATIONAL EQUIPEMENT Today home owners expect their homes to accommodate the following items. 1. Multiple phone lines 2. Internet service 3. Video distribution and other services 4. Data and security services 5. Fax machines and the list goes on. .
1.10 TELECOM MARKET IN ASIA The Asia telecom market is of large scale and great investment potential. Four markets are developing fastest in Asia. They are China, Indonesia, India and Vietnam meanwhile, in the markets of Japan, South Korea, Hong Kong and Singapore, handsets have a high market Penetration.
1.11 TELECOM MARKET IN INDIA India has a mere 1.2 telephones for every 100 of its people. This is way below international standards and is not becoming of a country aspiring to be major player in the global economy of the 21 century. The telecom industry is developing the fastest among all sectors in India. Mean while, GSM mobile communication is in the leading position in development of telecom market in the next few years, hand set subscribers will be expanding dramatically with an expected growth rate of more than 50%. The figure will add upto 200 million in 2008, accounting for 75% of all telecom subscribers. In the past 5 years, the number GSM handsets users increasing 10 times. In virtual of great market potentials ITI LTD will take a shorter time than expected for consumers to exceed 100 million. 6.1 OBJECTIVE OF THE STUDY The project is mainly consists of two folded objectives i.e., main objective and other objectives. The main objective is to acquire as much knowledge as possible from the industry side. The other objective is to find the one basic problem & give in suggestion to the organization.
1. To study the general information about the Telecommunication and history of
telephone. 2. To focus the origin and growth of the ITI Limited 3. To study the SWOT aspect of the company 4. To analyze the problems of the Finance Department
5. To make suggestions To solve the problem CMR CENTER FOR BUSINESS STUDIES, BANGALORE 6
CHAPTER: II A PROFILE OF ITI LIMITED

2.1 ORIGIN OF ITI The history of ITI goes back to the year 1948 when it was set up as a departmental undertaking of the Government of India. Subsequently it was incorporated as a Company on the 25th January 1950. ITI has the distinction of being the first post-independence Public Sector Enterprise in India. The factory was located in a small village near Bangalore. It consisted of a single production shop for the assembly of 25000 lines of stronger exchanges and 25000 telephone instruments per annum from imported components. From such small beginnings, the company has to-day grown into a mammoth multi-unit industrial complex with expertise in the field of designing marketing servicing and producing the total range of telecommunication equipment catering to the needs of P&T, Railway, BSNL, Defence and other customers. 2.2 GROWTH OF ITI ITI Limited is India's pioneering venture in the field of telecommunications. Established in 1948, this premier PSU 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. In the time span of more than three decades since its inception, the company has witnessed phenomenal growth and ITI has emerged as the leader in the telecommunication industry contributing a variety of equipment to the telecommunication network of the Country. The largest manufacturing complex of ITI has a R&D unit and two factories manufacturing transmission equipment and telephone instruments. In Rae Bareli, ITI has two factories manufacturing electromechanical step-by-step Stronger witching equipment and Crossbar switching equipment. In Palghat, ITI has a factory manufacturing electronic switching equipment of ITIs own design. In Srinagar, ITI has a factory assembling telephone instruments and other related spares.
The Company has a strong in house R&D infrastructure attached to the independent business group. The main R&D divisions are at Bangalore and Naine. Forward looking at technology the R&D is engaged in continuous development and absorption of technology. The company lays a strong emphasis on Strong emphasis on Quality, which taken as a corporate Management Function under a independent executive Director Reporting to chairman and Managing director a large number of companys products are covered under the Self Certification scheme by the majors customer i.e. Department of Telecommunication International Quality Management system the company has adopted ISO 9000 taking it as a Toll for Organizational change and work redesign Human Resource development is another trust in a company involving professional and organizational development activities. The company is dealing with diverse technologies continuously phasing out old technologies and phasing in new technologies Prominent foreign technologies currently under manufacture include digital switching system OBC 283 under collaboration from Alcatel France, Digital Microwave Systems under collaboration from NKT, Denmark and Digital coaxial System under collaboration from AT&T Philips Holland center for development of Telematics(CDOT)has also provided indigenous technology for manufacture of Rural Automatic Exchange(RAX) and Main Automatic Exchange
PICTURE 2.1 OVERVIEW
2.3 BASIC INFORMATION ABOUT ITI
NAME ESTABLISHED CORPORATE OFFICE MANUFACTURING PLANTS CORE R&D INSTALLATION & MAINTENANCE REGIONAL OFFICES AREA OFFICES QUALITY SYSTEM JOINT VENTURE
: ITI LIMITED : 1948 : Dooravani Nagar, Bangalore : Four : Bangalore : Bangalore : Six (6) : Forty Two (42) : ISO 9000 : Three (Indian Sitcom Ltd., ITI Comm. Pvt. Ltd., Fibcom Ltd.)
ISO ACCREDITATION COMPANY WEB SITE LOGO
: 10 Divisions : www.itiltd-india.com :
2.4 ITI TODAY

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. In tune with the technology trend, it has embarked on manufacture of mobile infrastructure equipment based on GSM (Global System for Mobile) technology. ITI has also acquired the technology for manufacture of broadband infra equipment, NGN (New Generation Network) equipment based on IP technology and SDH (Synchronous Digital Hierarchy) products. ITI has a dedicated Network Systems Unit for carrying out installation and commissioning of equipment as well as for undertaking turnkey jobs and providing value-added services. The successful completion of the mammoth strategic communication network ASCON for the Indian Army underlines ITI's ability in standing up to the challenge of enhancing the reach of communication and information seamlessly over diverse media. In a fitting testimony, the Company continues to hold the numerous Uno position as India's top telecom turnkey solutions provider. ITI joined the league of world class vendors of GSM technology with the inauguration of mobile equipment manufacturing facilities at its Mankapur and Rae Bareli Plants which opened a new era of indigenous mobile equipment production in the
country. These two lines will augment the capacity to more than nine million lines for catering to both domestic as well as export markets. By deploying its rich telecom expertise and vast infrastructure, the Company is consolidating its diversification into ICT (Information and Communication Technologies) space to hone its competitive edge in the convergence market. Network Management Systems, Encryption and Networking Solutions for Internet Connectivity are some of the major initiatives by the Company. ITI's competency in the WAN (Wide Area Networking) segment is reflected through two major projects commissioned successfully for BSNL; countrywide MLLN (Managed Leased Line Network), VoIP (Voice over Internet Protocol) and the nation's first broadband network IP-MPLS (Internet ProtocolMulti Protocol Label Switching) technology based VPN (Virtual Private Network) in ten major cities. The Company has struck a strategic alliance with BSNL for building a VSAT based network in Ku band for IP-based satellite broadband services. The successful implementation of the project to expand Internet Services equipment of MTNL is a significant step. The CDMA-WLL (Wireless in Local Loop) turnkey project that ITI has completed for TCIL (Telecommunications Consultants India Limited) in Afghanistan is a boost to the Company's export business. Secure communications is the Company's forte with a proven record of engineering strategic communication networks for India's Defense forces. Extensive inhouse R&D work is devoted towards specialized areas of Encryption, NMS, IT and Access products to provide complete customized solutions to various customers.
2.5 VISION
To be the leader in the domestic market and an important global player in Voice, Data and Image communications by providing total solutions to customers, To build on core competencies to enter new business areas. ITI will be perceived by their customers as the leading business partner for providing total network solutions.
It will offer innovative solutions using leading technologies
in a cost competitive manner, to help customer achieve their business objectives. It will pursue new opportunities arising form the convergence of Information, Communications and Entertainment businesses. It will enhance shareholder value and will move up the value chain by expanding knowledge-based and service based businesses while simultaneously leveraging over manufacturing business. In this manufacturing business, it will continuously drive down costs. It will leverage our telecom domain knowledge to build a telecom software business in India catering to global requirements. It will apply R&D efforts in focused areas. It target customers will primarily be large organizations (both Government and private sector) in India and overseas markets. For exports, it will primarily target developing markets. It will form strategic alliances with equipment/technology suppliers and service providers to access technology and markets and to help them Provide total solutions. It will build a customer-focused organization and will invest in regular training and development of our manpower for achieving the same.
It will transform ITI into a creative, livewire, entrepreneurial enterprise with a quest for growth and with shared values.
2.6 MISSION: To establish leadership in manufacturing and supply of new technology
telecom products and also to retain status of top turnkey solution provider. To be the leader in the domestic market and an important global players in voice, data and Image communication by providing total solutions to customers, on core competencies to enter new business areas.
2.7 ITIs MOTO We will be perceived by our customers as a reliable business partner for providing total telecom and IT solutions. Our strategic allowances with technology partners will aim at offering solutions using leading technologies in cost competitive manner. Our relationship with technology and business partners will be winning and extend to developing ITI as hub for manufacture, software development and ITI LTD services. Our marketing and R & D efforts shall be revitalized to seize the vast opportunities in various segments in this era of convergence. We shall strive for continuous growth through Effective quality system. Time and cost conscious. Enhanced value addition. Empowered human resources. Teamwork. Innovation.
Continuous improvement, mutual respect, transparency and shared values shall be our guiding philosophy.
2.8 ITIs AIM

Regain states as largest indigenous manufacture of telecom equipment and consolidate in new technologies. Sustain ITI states of top turnkey service provider of the country in Telecommunication. Respect both internal and external customers No liquidated damages. Reducing cycle time from dispatch to realization. Work like a team
2.9 ACHIEVMENTS AND AWARDS 1. Three plants of ITI (Rai Bareli, Palakkad and Bangalore) have won the National Safety Awards for outstanding performance in industrial safety during the year 2004. 2. Energy conservation Award: ITI Mankapur Plant which saved energy to the tone of Rs.384 lakhs during the last 3 years has won the National Energy Conservation Award 2004. 3. ITI has received the prestigious ISO 9001-2000 certificate for its excellence in product quality. 4. ITI has also won `ASCON award which was presented by Shri P.V Narasimha Rao 5. Awards won by ITI quality circle:
6. ITI annual quality circle convention 1966, Bangalore plant won the 1st
prize
7. ITI won the third prize in Fifth annual quality circle convention 1991. 8. Sixth annual quality convention1992, Bangalore won the first prize. Confederation of Indian industry 10 state level quality circle competition awards ITI won first prize in the year 1997-98
2.11 QUALITY POLICY OF ITI ITI is committed to providing products and services of consistent quality that will lead to customer delight. ITI will maintain leadership in the market with competitive prices and Professional excellence through: a) Implementation of sound quality management system.
b) Continuous innovation. c) Continual improvement in every activity.
Involvement of people at all levels internally and externally.
2.12 BOARD OF DIRECTORS Shri S.K. Chatterjee Shri Tejbir Singh Shri K K Khurana Shri B P Gupta Shri Ravi Agarwal - Chairman & Managing Director - Director (Marketing) - Director (Human Resources) - Director (Finance) - Director (Production)
Lt.Gen. S.P. Sree Kumar, AVSM Shri A.K. Srivastava Shri C.K. Koshy Shri K.T.Mayuranathan - Director
- Director
-Special Director - Company Secretary
2.13 OVERVIEW OF ITI
Corporate
head
quarters:
ITI
BHAVAN,
DOORAVANINAGAR,
BANGALORE - 560 016 1. 2. 3. 4. 5.

6.
Manufacturing units Bangalore Naini (near Allahabad-UP) Rae Bareli (UP) Mankapur (UP) Palakkad (Kerala) Srinagar (Jammu & Kashmir)
Network system unit: Bangalore
Regional offices: New Delhi, Bangalore, Kolkata, Lucknow ,
Mumbai, Chennai, Hyderabad, Bhubaneshwar, Bhopal, Ahmadabad, Kochi : supported by 36 Area offices all over the country
Manpower: 13,013 R&D base: Bangalore, Naini, & Mankapur Quality system: ISO 9000 compliant
2.14
INFRASTRUCTURE & FACILITIES PHYSICAL SETUP In-house R & D Network System Unit capable of undertaking turnkey jobs Self contained component evaluation centre Fully automated assembly lines In circuit tester (ICT) PCB manufacturing facilities Modern Chemical, Metallurgical Labs Mechanical fabrication/Machine shops with modern CNC machines Molding & Die casting Full fledged state of the art tool rooms SMT (Surface mount technology) Environmental testing Component approval center approved by Department of
Telecommunications.
ISO 9000 compliant Quality Management Systems 2.15 LOCATION OF MANUFACTURING UNIT, REGIONAL OFFICE
AND CORPORATE OFFICE For the easy and ministration purpose the company classify the offices in to three types are manufacturing unit, regional office and corporate office. The complete details are given in the map 2.1
MAP 2.1 LOCATION OF MANUFACTURING UNIT, REGIONAL OFFICE AND CORPORATE OFFICE
Map 2.2 REGIONAL OFFICES AND AREA OFFICES
2.16 BANGALORE PLANT This is the first Plant of ITI set up in 1948. With its, vertically integrated, state-ofthe-art infrastructure a vast range of telecom products are manufactured. They include digital switches (large, medium, small), Digital Microwave equipment, optic fiber equipments, satellite communication equipment, access products, and terminal equipments. The following picture shows the R&D department of Bangalore unit. PICTURE 2.2 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.
2.17 MAJOR COMPETITORS X-PLOR TELECOM IMCS Software Solutions FIBCOM DVB Sun Microsystems
PRODUCT PROFILE
Product division in Indian telephone Industries Telephone Division

This division undertakes the production of telephones in ITI. The telephone division assembles different modes of telephones. This division manufactures around 5 lakes telephones every year. The sample picture of the telephone is given below PICTURE 2.3
ITI PRODUCT - TELEPHONE
Transmission Division This division undertakes manufacturing of micro wave equipment satellite communication equipment, optical fiber equipment and defense products. Transmission division
produces satellite products. The following picture indicates the satellite.
PICTURE 2.4 ITI PRODUCT - SATELLITE
TERMINAL EQUIPMENTS Telephones Video conferencing
PICTURE 2.5 ITI PRODUCTS- DELTA

DELTA
PULSE/PHONE ALPHA(MODULAR)
SWICTABLE
TELEPHONE
MAGENTO TELEPHONE
DESCRIPTION: This telephone is a state-of-the-art of design to work with magneto exchanges can also be used for point to point communications.
TELEPHONE SET 5C FOR THE DEFENCE DESCRIPTION: The telephone set 5C to ITI code 171CAA 01SL01 is rugged and designed to work as light weight telephone with a combination of 5B and 2A and also as a remote control telephone for simplex radio sets. The telephone set is compatible to work with CB and Magneto Exchanges in addition, telephone set 5C can be used with an automatic exchange with the in-built push button SALIENT FEATURES: Improved speech performance (up to 40kms with WD1 cable) Improved performance ringing sound by using pilzo electric buzzer instead of conventional cell. Modular design for each maintenance Visual indications insertion of calls Hand ringing generator is replaced with a electronic ring generator
(leds are provided) to indicate health and correct
Less weight and ragged mechanical design works on magneto and auto mode.
PICTURE 2.6 ITI PRODUCTDESKTOP VIDEO CONFERNCING TABLE
PICTURE 2.7 PRESIDENT
EXECUTIVE TELEPHONE SYSTEM The telephones are identical and interchangeable
Electric speech circuit with pulse / tone dialing Flash button provided Last number redial Call holding from both secretary and executive without engaging exchange line
Adjustable ringer volume Music on hold LED indication for power on incoming ring and exchange line status In case of power failure the 2 telephones parallel to exchange line
PRODUCTS: SWICTHING TRANSMISSION DEFENCE ACCESS PRODUCTS RURAL TERMINAL/SUBSCRIBER END PRODUCTS INFORMATION TECHONLOGIES MICROELECTRONICS AND SOFT WARE PICTURE 2.8 ITI PRODUCTS [switching]

Large Switches Medium Switches Small Switches
[transmission]

Microwave Satellites
[access]
Wireless in Local Digital Pairgain Loop
Loop (WLL)
Carrier (DLC)
[terminal Sequipment]

Telephones ISDN Products Video
Conferencing
[microelectronics]
Application
Specific
Integrated
Circuits
(ASICs)
[IT products]
Computer Telephony Integration (CTI)
[other products]

Bank Mechanizing Products Fire Alaram
[DEFENCE]

0SCPC VSAT
Military EPABX 128 ports
LIST OF VARIOUS PRODUCTS MANUFACTURED IN ITI LTD SWITCHING A. Large switches B. Medium switches C. Small exchanges
D.EPABX E.CTMX F. Mobile communication G.GSM CTMX: Computerized trunk manual exchange. PABX: Public access board exchange. GSM: ITI getting into providing GSM networks for cellular service. Includes installation and commissioning backbone and other elements of network GSM service offered: 1. Telecommunication services. 2. Bearer services- speech data, Fax. 3. Tele services- Emergency call, short service management. Call waiting service. Operate sub system (OSS) Base station system (BSS) Network switching system(NSS- data base and mobility mgmt) Home location register Visitor location register Standard open register Authentation center
TRANSMISSION A. Microwave B. Fiber optic C. Satellite communication system D.RADIO E. Digital multiplexer (TDMA- time division multiple access) F.MCPC-Multiple channel per carrier (point to point star connectivity)
TERMINAL EQUIPMENTS /SUBSCRIBER END PRODUCTS
A. Basic Telephone models B. Magneto C. Boss secretary phones and ESPT (1+1) D. Multimedia oriented telephones integration (MOTI) E. Wide range of models for user F. Video conferencing equipment latest technology
DEFENCE A. Transportable satellite terminals with DAMA B. Field telephone C. Field auto telephone
D. Military EPABX 128 ports E. Transportable hub and remote F. Secure voice and data- For rural communication, high security voice and data communication ACESS PRODUCTS Digital loop carrier (DLC) High bit rate digital subscriber line (HDSL) WLL (wireless in local loop- cordect) Cable server/digital pair gain
PICTURE 2.9 ACESS PRODUCT DIVISION:

This division undertakes the manufacturing of rural exchanges.
RURAL:
1. TDMA (time duration multiple access) - PMP (digital) 2. 10 channel digital line 3. Single channel radio relay CMR CENTER FOR BUSINESS STUDIES, BANGALORE 31
4. C-DOT RAX2
ITI SERVISES ITI is exploiting the convergence of technologies by having ITI as the nthrust area
ITI PROVIDES Network solutions, integrated network management, E- commerce, voice over IP telephony, call centre solution, information kiosks, CTI and IVRS.
OTHER PRODUCTS Supervisory control and data acquisition (SCADA) Switch mode power supply (SMPS) Network management system (NMS) Solar photo voltaic modules 64KBPS line drivers Digital cross connect 16 APPCM IPX PAD concentrator Wave LAN SCADA: control and analysis of real time data, LAN based control remote terminals, data base management. NMS: supervise, control, and monitor, maintenance telecom networks Computer based- ITIs intelin series.
Decentralized/centralized monitoring WAVE LAN: Flexibility in connection of computers/nodes in LAN, wireless connectivity, overcomes constrains space. PRODUCT RANGE ITIs product range spans the entire spans the entire spectrum of telecommunication equipment and includes: 1. 2.
3.
Telephone instrument of various types public Automatic Exchanges of Stronger and Crossbar types PABXs and PAXs of Stronger and Electronic types Teleprompter Exchanges(TELEX) Long distance carrier equipment for overhead lines, paired and coaxial cables Frequency Modulated Voice Frequency Telegraph Equipment(FMVET) Frequency Modulated speech plus Duplex Equipments(FMS+DX) Pulse Code Modulated Equipment for Earth Station(GCE) Microwave Equipment(MW) Ground control Equipment for Earth Stations(GCE) Transmission Equipment for Defence Equipment for Railway Electrification Electronic Measuring Instruments
4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Telemetry and Telecontrol equipment Automatic Road traffic signals
The companies product range includes all that it required to equip national and international Telecommunication Networks staring with simple telephones to state of the Art Digital Switching satellite communication and optical communications systems. Ninety five percent of the companys products are supplied to the department of telecommunication the other significant customers of the customers
of the company are defense and defense and Railways for who even special turnkey projects has also been executed.
CHAPTER: III ORGANIZATION STRUCTURE

3.1 ORGANIZATION STRUCTURE An organizational structure defines how job tasks are formally divided, grouped and coordinated. The chapter iii deals with the organizational structure; the organization structure is a complete picture about the organization. The structure of an organization plays a significant role in charting out its path to success. An efficient structure facilitates coordination and smooth intertwining of employees and communication systems. The organization adopts different structural pattern at different stages of its lifecycle. 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.
3.2 BASIC ORGANISATIONAL STRUCTURE An organization is a social entity composed of two or more persons who work together towards the attainment of common goals. For the organization to work as a cohesive unit, it is essential that a formal structure of reporting and control be established among the different members of the organization....
CHART 3.1 ORGANIZATION CHART OF BANGALORE PLANT-
CMD
DR-P
AGM-B
DR-F AGM-I&C AGM-TDP AGM-SAD
DGM(IMM)T DP DGM-I&C DGM-TSTDP
DGM-SAP
DGM-PSD
DGMTech
DGM-F
DGM-IT
DGM-F
DGMDGM-TDP DGM-SAP DGM-CS SAP(AMC) DGMBD&Mktg
DGM-QA
DGMHR&V
DGAShipping
CHIEF MANAGERS MANAGERS
DEPUTY MANAGERS ASST.MANAGE R ENGINEERS WORKERS
3.3 TOP LEVEL MANAGEMENT From GRADE 5 OFFICER TO GRADE 10 OFFICER i.e., From Chief Manager to Chairman & Management Director (CMD). 3.4 MIDDLE LEVEL MANAGEMENT From GRADE 1 OFFICER TO GRADE 4 OFFICER i.e., From Executive Engineer to Manager. 3.5 LOW LEVEL MANAGEMENT Below GRADE 1 Officer i.e., all Non Officers. 3.6 HIRERCHIAL LEVEL As the organization is Horizontal in nature so structure shows us that from TOP LEVEL MANAGEMENT to LOW LEVEL MANAGEMENT

All Non Officers has to report to GRADE 1 Officer. Grade 1, Grade 2, & Grade 3 Officers has to report Grade 4 Officer. Grade 5 Officer to Grade 9 Officers has to report Grade 10 Officer.
Chapter: IV
an Overview OF Departments
This chapter contains the information about the various departments in the company. The following of the m are the departments of the company. 1. Production Department 2. Human Resource Department 3. Finance Department 4. Marketing Department 5. Research and Development Department 6. Purchase department
4.1 PRODUCTION DEPARTMENT

Production department performs the function of producing finished goods from the basic raw materials. He manufacturing is headed by a group head whose main objective is to plan, execute, co-ordinate and control all production activities with available resources, inputs, equipment, and facilities. Quality control department is attached with the production department of each division. It keeps check with quality manufactured with that of the standards set up by the customers. It detects the bad items and makes necessary improvements in order to prevent its occurrences in the future. OBJECTIVES
To ensure, direct and co-ordinate the activities. To ensure Quality output. Provide a durable output with least cost Ensure a desirable output as per clients requirement.
FUNCTIONS To prepare detailed production plan in consultation with general Manager which must be consistent with companys production objective To prepare detailed raw materials plans and ensure the incoming Quality standards and their proper usage. Receiving of raw materials and packaging of final products.
Integrated production efforts with proper maintenance to ensure implementation
of production and maintenance schedules and to avoid break downs by helping maintenance under take jobs on time basis etc. the information is given in the chart 4.1 Provide a prompt delivery of finished goods on time to serve customers in a better way. Proper utilization of resources like raw materials, stores materials, machinery & equipments etc Materials should not be wasted in the production house , it may lead to a loss of material & profit also. Provide a least cost products to its customers Continuous improvement of process & people to increase efficiency level.
Chart 4.1 WORK FLOW MODEL (End to end)
4.2 HUMAN RESOURCE MANAGEMENT:Human Resource Management is planning, organizing, directing, and controlling of procurement, development, compensation, integration and maintenance of human resources for the purpose of contributing to the organizational, individual, and social goals. HRM is management functions that helps managers recruit, select, train and develop members for an organization. Obviously HRM is concerned with the peoples dimension in organizations. It ensures that employees are valued more than any asset in the organization. It looks after the employees and ensures that they give out their best at the work place. This department ensures that the right person is selected for the right job. Human resource management is the effective control and use of man power as distinguished from other sources of power. Human resource executive mainly look after employees mainly their problems. This department performs the functions like Recruitment, Selection, Training and Development. ITI, Bangalore has 210 employees.
FUNCTIONS OF HUMAN RESOURCE DEPARTMENT: In ITI HR functions are to provide training and development programs to officers and non-officers and to provide training to all personnel with in the plant to enhance their skills to carry out the assigned job effectively and also develop human resources to achieve organizational objectives HR functions are evaluated through the identification of training needs, while identifying training needs of individuals and functional groups the training programs should by job oriented and relevant to the current trends in appropriate technology besides creating quality awareness and providing necessary motivation for achieving the objectives of the industry.
TRAINING NEEDS ASSESSMENT
Internal and External training Apprenticeship training Human Resource activities based on the need of the organization and employees Time office Promotion Recruitment Transfer Wage and Salary administration Personnel administration Disciplinary actions Grievances Handling Performance appraisal
FIGURE 4.1 FUNCTIONS OF HR MANAGER:
Employee Hiring Performanc e Appraisal Employee Remuneratio n
HR MANAGE R
Employee Motivation
Industrial Relation
Employee Maintenance
HUMAN RESOURCE TRAINING AND DEVELOPMENT IN ITI A separate human resource development was introduced exclusively for the Bangalore plant in 1990, with a view to with stand or to face the threats caused by huge mass of employees facilities concentrated training program, up dated latest technique, methodologies to encourage and train the apprentices and internal employees. Training needs area identified on the basis of organizational analysis, job analysis and manpower analysis. Training programmer, training methods and course content are to be planned on the basis of training needs. The training programmers commonly used in ITI includes both on-the-job training like apprentice training, job instruction, job rotation and in off the job method it includes lecture method, audio visual and programmes instruction. Following which are involved in Human Resource Department Human Relations Department Public Relations Department Legal Department
HUMAN RELATIONS DEPARTMENT This is an important department which deals with the administrative authority benefits bifurcating the whole department into six groups: Terminal benefits Disciplinary action group Medical group
Wage and salary administration group Record section Miscellaneous group TERMINAL BENEFITS This particular group deals with the matters related to
settlement of terminal benefits for resignations, superannuating, death, voluntary retirement service cases scheme for exertion amount and the officers journal audit for employment on medical grounds, refund of security deposits etc., DISCIPLINARY ACTION GROUP This group indicates work related to allied matters, absenteeism, memos referring for medical benefits, misbehavior with superiors and theft cases. MEDICAL GROUP This group concentrates on cases of receiving and processing of medical bills and allied matters, pre auditing of medical bills, verifications of family declaration form and clarification of medical reimbursements bills. WAGE AND SALARY ADMINISTRATION GROUP This department focuses on the matters related to wage administration, payment of wage and salary to employees, fixation of pay on transfer encashment issues of certificates, nomination for gratuity, leave matters, hospitalization and maternity leave, compensation, reimbursement etc., RECORD SECTION This section consists of personal record of the employees as regard theirs age, qualification, experience etc., It also deals with record of employees working at present in the organization and the ex-employees. They maintain the records in two ways manual and computerized.
MISCELLANEOUS This group deals with conveyance allowance, transport allowance, special leave for blood donation, higher education etc.,
PUBLIC RELATION DEPARTMENT:It is only in the 20th century that public relation came to be codified, formalized and practiced as a profession. Actually, it is as old as the human race. Every organization, institution and industrial has public relation whether or not the fact is recognized. As long as there are people living in communities, working together in organization and forming a society, there will be an intricate web of relationships among them. The public relation department is headed by the chief manager and is responsible for the following functions:
FUNCTIONS Advertising and sales promotion. Bringing out house journals Participation in exhibition and display Maintaining and improving media relations. Extending hospitality by making arrangements for VIP (very important
persons) visitors.
LEGAL DEPARTMENT:INTRODUCTION Legal department is responsible for representing the company in legal matters. OBJECTIVES 1. 2. 3. FUNCTIONS The department is to under legal opinion or advice on matters referred from various departments of the company. On subjects varying from purchase, recruitment and serviced matters to contract and commercial transactions. TYPES OF CASES Civil cases Labour cases High court cases Prevention and settlement of industrial disputes. Represent the company in the court of law. File cases against external parties.
A.CIVIL COURT: Civil court deals with civil matters i.e. Public related issues. Civil court again subdivided into: a. Family court: related all family matters.
b. Motor vehicle court: motor vehicle accident(Between supplier and
company)
B. LABOUR COURT: This court deals with all labour related matters. Ex; dismissal from service, disobey, theft, demands by union (salary, reimbursement etc.) I.e. a. dispute between management and labour b. union and union representative Before the labour court the case is handled by the state labour commissioner for the consolation (company management, employee and labour commissioner sit together)
C. HIGH COURT AND SUPREME COURT Any one party is dissatisfied by the judgment of both civil and labour court they can go for the high court for justice. The decision of the Supreme Court will be the last decision. Charges are to be different for different courts. Supreme Court charged high price than any other court.
MAN POWER PLANNING:Man power planning is the process of determining the quantity and quality of manpower required for an organization, and ensuring the supply of the required type of manpower in right quantity at the right place and at the right time for the achievement of the goals of the organization. It is process by which the management of an enterprise ensures that right type of personnel are available in
right numbers at the right place and at the right time for doing the right things for which they are most suitable. 1. 2. Manpower planning is undertaken not only when talent is in scarcity but MPP is intended to ensure the availability of right personnel in right
also when it is in surplus. numbers at the right places and at the right time for the achievement of the organizational goals. 3. MPP is a comprehensive process. It includes all the aspects of
Manpower Management. To be specific, it is concerned with the determination of the manpower requirements of the organization in advance, the analysis of the manpower available between the demand and supply of manpower. 4. MPP includes not only recruitment, selection, training and
Development of personnel but also takes into consideration the environment or conditions under which the personnel work. 5. It is a continuous process.
FUNCTIONS 1. Recording and maintains of vacancies arising out of :- Retirement, death, dismissal, transfer etc., category wise / department wise / division wise in the respective registers. 2. a. Filling up of vacancies arising out of above way of :External recruitment/ Internal recruitment by raising staff Requisition on recruitment section. b. Transfer / redeployment within Bangalore complex and other Units. The above actions involves:-
i.
Diarizing and processing of requests recognized by the divisional heads, obtaining of approval from the management and raising the staff requisition and also releasing orders after receipt of selection papers by recruitment section.
ii. Diarizing and processing of individual and jointly representations/ request of employee in respect of transfers with in Bangalore complex and unit / reg. office and issuing of either transfer or regret memos. iii. iv. Processing of grievances connected with transfers. Processing of transfers individual / bulk on administration grounds due to surplus management decision and also based on periodical manpower analysis by each department/division. v. Following and filling of duty reports in the concerned PFs after effecting transfers. 3. All typing work connected with the above subject and any other additional work given by head of department. Following which is involved in Manpower Planning 1. Manpower statistics 2. Recruitment 3. Transfers 4. Promotions 5. Maintains of records
TABLE 4.1 MANPOWER STATISTICS (as on 1st July of 2009)
UNITS Corporate Office Bangalore Plant R & D, Bangalore Network system unit Raebareli Naini Mankapur Palakkad Srinagar Marketing Total
TOTAL STRENGTH 144 1854 182 479 4002 2125 2229 656 166 636 12473
RECURITMENT PROCEDURE SANCTION FOR CREATION OF POSTS The statement of anticipated personnel requirements of all departments will be prepared in the prescribed form in August / September for each year for budgetary purposes. On approval of funds, the posts will be created on requisition submitted by the various departments in the prescribed form:
SOURCES OF RECRUITMENT Employment Exchange :( All Non officers posts as per the compulsory Notification of vacancies Act) Advertisement Campus Interview Walk-in-Interview : (All Officers) : (All Officers) : (All Officers)
RESERVATION OF POSTS Vertical reservation : SC 15%, ST(Off-7.5% & Non-5%), OBC 27%
Horizontal reservation : PH 3% & Ex- servicemen 27%. PRINCIPLE GOVERNING RECRUITMENT Merit, efficiency and competence will be the only consideration governing recruitment. ABSTRACT 1. Creation of posts 2. Justification from Industrial engineering department 3. Financial concurrence 4. Manpower & Policy 5. Staff Requisition 6. reservation 7. Sources 8. Screening
9. Test / Interview CMR CENTER FOR BUSINESS STUDIES, BANGALORE 52
10. 11. 12.
Medical Examination Offer of appointment Induction / Joining duty Placement Police Verification Previous Employers report Referee report Probationers confirmation report Confirmation.
13. 14. 15. 16. 17.

18.
TRANSFERS The transfers are made between the 1. Department to Department 2. Division to Division 3. Unit to Unit If there is any work in one department and another department will not be having any work then the Head of department will provide an letter about the requirement of employees in that particular department. So, after accepting that letter by the manager then the employees will be transferred to one department to another department. Vice versa in all cases. Apart from these transfers there are some more transfers
1. REQUEST TRANSFERS: It is type of transfer where the employee will provide a request letter to transfer that employee it may be where. 2. ADMIN TRANSFERS: It is another type of transfer where one employee will be transferred from one department to another within admin. 3. MUTUAL TRANSFERS: It is type of transfer where 2 employees agrees to exchange their departments by mutual understanding. 4. REDEPLOYMENT TRANSFERS: It is one of the transfers where the employees are deployed according to the work or due to over load of work.
PROMOTIONS Upward reassignment given to the employee. It is an appraisal given by the company for the service or for the performance rendered by the employee in the organization. Here in this organization the promotions are two types: Officers : career planning
Non-officers : time bound promotion
TABLE 4.2 QUALIFYING SERVICE FOR THE PROMOTION For promotion from Completed year of service in the existing Grade as on 30th June of a year LQ (less qualified) DQ (diploma qualified) GR1 TO GR2 GR4 TO GR5 8 * 6 6 PQ (professional Qualified) 4 4
GR6 and above 3 years of service in existing grade.
PROMOTION SELECTION BASIS 1:3 The annual confidential record will be maintained by the company to check the performance of the employee within the organization. The performance will be checked on the following details : Qualification Attendance Assessment Rating Scale Work Conduct
Potential (for Cat. G & H only) Performance Rating.
Depending upon the above the company will give yearly marks for the promotion Marks required for the promotion General Employees: 74 marks SC and ST : 66 marks
TIME SPAN FOR THE PROMOTION Non- officers are divided by channel wise i.e. 1 to 7 Each channel has separate 5, 6 and 7 years time spans for the promotion. Production for promotion from PA to PH and to GR1 the service period is 5, 6 and 7
years the same duration is followed for the SA to SH and then GR1 officer. (e) DEMOTIONS Downward reassignment to an employee in the organization. If the employee violates the policies, rules and regulations of the company he has demoted. Criteria for the demotions are: Late attendance Sleeping on duty hours Theft of companys property Having alcohol on duty hours Selling goods inside the factory
Demotions are one of the disciplinary actions taken by the company against the employees
WELFARE DEPARTMENT Ever since its establishment in 1948, the Company has been the forerunner among
the Public Sector Enterprises in providing welfare benefits to employees. Among the numerous statutory and Non statutory welfare benefits made available to nearly 2500 employees and over 8000 of their dependents. The following are contributing significantly to employee satisfaction and their relatively higher standard of living.
EMPLOYEES WELFARE Ever since in establishment in 1948, the company has been the forerunner among the public sector enterprises in providing welfare benefits to employees. Among the numerous statutory non statutory welfare benefits made available to nearly 2190 employees and over 8000 of their dependents. The following are contributing significantly to employee satisfaction and their relatively higher standard of living.
SUBSIDISED FOOD WHILE AT WORK:

Canteen runs departmentally to provide wholesome food-breakfast, lunch, milk, tea and coffee to nearly 2190 employees on all working day at highly subsidized rates.
CANTEEN
The food supplied in the canteen is heavily subsidized. The cost of preparation of various food items and the selling price, details of subsidy involved or given in the statement given at annexure enclosed. In a day, an adult industrial worker requires about 2000 calories of energy.The menu in canteen as been standardized by the canteen managing committee to cater to at least 2/3rd calories of requirement of the industrial worker. Thus during CMR CENTER FOR BUSINESS STUDIES, BANGALORE 57
his stay 8 hour in the factory, the food provided in the canteen meets the requirement of the worker. The canteen is well-organized and established which has been meeting the requirement of food admirably, in view of plant and standard input of wholesome raw materials and hygienic preparations. No complaints regarding the function of the employees have made the canteen. Occasional complaints if any is being rectified/corrective action can taken by the canteen administration and the same is being discussed and communicated in the canteen managing committee meetings.
TOWNSHIP
We have well established housing colony called ITI TOWNSHIP. The housing and other facility provided to workers Is as detailed below. NUMBER OF QUARTERS = 1676 A Type 17 B Type 34 C Type 154 D Type 505 E Type 946 Officers Suite - 20 Hostel Rooms 98
Out of the 1656 quarters, 500 are in occupation by the executives/employees of the company. We have also allotted nearly 1000 quarters to non-ITI employees like army institute of fashion design, controller defence accounts, 515 army base workshop, sitar, ASC centre, BESCOM, BMTC, CMC KR PURAM, ITI Vidya Mandir, State Bank Of India, HAL, BSNL officials Karnataka Power Transmission Corporation Limited, police officials and some other state/central government officials on market rent. The market rent charged for non ITI employees furnished below: The following
table shows the and b areas of quarters type and total rent
TABLE 4.3 Rent of different types of quarters in ITI ltd A Area QUARTERS TYPE B C D E TOTAL RENT 8500/3500/2500/2000/B Area TOTAL RENT 4300/2900/2200/-
FACILITIES PROVIDED TO EMPLOYEES 1. HOSPITAL 2. SCHOOL 3. PLAYGROUNDS 4. AUDITORIUM 5. RECREATION CLUB 6. SPORTS CLUB 7. COMMUNITY HALL 8. TEMPLE
9. CO-OPERATIVE SOCIETIES 10. SHOPS 11. GENERAL PARK 12. LIBRARY 13. GUEST HOUSE 14. BANK 15. POST OFFICE. 16. TOWN SHIP 17. CANTEEN
18. QUARTERS
19. SUBSIDIZED TRANSPORTATION 20. SUBSIDIZED EDUCATIONAL FACILITIES 21. . FREE MEDICAL BENEFITS 22. . LEAVE TRAVEL CONCESSION 23. . SUBSIDIZED HOUSING SCHEME 24. . SOCIAL CO-OPERATIVE 25. PERSONAL DEVELOPMENT 26. RECREATIONAL FACILITIES 27. . ACCIDENT BENEFITS 28. . RETIREMENT BENEFITS 29. . SERVICE AWARDS AND SUGGESTIONS SCHEMES 30. . RAFI WELFARE FUND
4.3 FINANCE DEPARTMENT

INTRODUCTION Finance is the life blood of the business, so in any organization the most important department is the finance department. ITI also has an efficient department for accounts and finance headed by finance controller. Finance department is concerned with planning and controlling of the firms financial resources.
OBJECTIVE Preparation of corporate plans, annual plans and budgets. Financial planning cost control and ensuring uniform and correct observation of financial discipline of the company. Monitoring the progress of budget achievements. Providing accounting service to all levels ensuring updating of systems procedures for the same. Advising management on funds utilization and its implementation.
FUNCTIONS The main functions of the finance department are mainly including with financial matters those are given below; To make proper entries in books of accounts and extract reports like trial balance, profit and loss account, balance sheet on a time bound basis. Timely dispersant of salary, wages, perks to employees as per agreement or memorandum of understanding etc.,
To ensure the distribution of funds to various departments to meet their requirements To conduct regular internal audit and hence curb misuse of funds
wage and salary administration payment of gratuity provident fund and loans to
employees all these functions are covered by finance department FINANCE DIVISION Finance as we all know is the life blood of any business, so is the case with ITI. Since ITI is a manufacturing unit it requires cash or capital at every stage of product development. Finance is required for the purchase of raw materials, payment of wages salaries, and purchase of fixed assets and so on. Responsibilities of then finance and accounts organization The finance and accounts organization of the company is responsible for following functions 1. Raising of finances from appropriate sources to meet the short-term and long-term requirements of the company and the control and allocation of such financial resources to different units to ensure their optimum utilization 2. Scrutiny and evaluation of investment and other proposals for expenditure from the financial angle using quantitative techniques relevant to the proposals (discounted cash flows, incremental/differential costs, profitability etc) and ensuring that the proposals and in accordance with the well-recognized canons of financial properly. 3. Financial accounting which is concerned with the maintenance of accounting records and books, production overhead financial statements, procedures for safeguarding the assets of the company etc.
4. Cost and management accounting which is concerned with the production of cost accounts and accounting information for management decision making and control. 5. Preparation of capital and operating budgets and the operation of budgetary control.
6. Internal audit which is concerned with the accuracy and integrity of financial
records, compliance with policies and procedures and independent appraisal of operational areas as a service to management.
ORGANIZATIONAL UNITS FOR ACCOUNTING For the proper discharge of the above functions the company is divided into distinct accounting units, each such unit corresponding to an.. Operating division Central division or an R&D division, Finance department is the major department in ITI comprising of various activities. Share capital Loan from government Public deposit Cash Bank transactions Purchase accounting in land Services and miscellaneous bills payable Purchase accounting foreign Imp rest account and special advances Material accounting stock and stores Accounting of fabricating order Social ancillary orders
Accounting for tools Stock verification Time keeping payroll personnel claim and advances ESI scheme Billing and account receivable Regional office account Contactor account Gratuity Taxation PF account Sales tax Exercise duty Accounting of shipping and clearance of office transaction Finalization of account Budget Computerized accounting Maintenance of records of various department which in accordance with the generally accepted accounting principles Reports to ministry Inventory management Debtors management Budgets maintenance Providing finance to units which are in distress Finance function consists of 8 units, 4 units are located in Bangalore and other units are located outside Bangalore. The finance function is fully centralized. The whole authority is entrusted with the corporate office. The corporate office looks after the financial aspects by following a 5 year plan and every unit of ITI is required to prepare an annual plan specifying its requirements for the year.
Finance function is broadly divided into Internal financing system External financing system
INTERNAL FINANCING It is basically followed through the system of financing through retained earnings. EXTERNAL FINANCING Previously a major portion of finance was contributed by the government (particularly fixed capital). But from 1986-87 government of India has stopped giving assistance as such company was compelled to issue bonds with government guarantee, based on rating of ICRA and CRISIL. These agencies arrange for finance. ITI has raised 5 types of bonds A, B, C, D, E right from 1986 A and B has been rapid. C, D, E are in the ratio of 20, 120, 94 crores repayable in 5 years with a call option of 3 years.
PAY ROLL DEPARTMENT

INTRODUCTION The preparation of monthly pay roll is an important activity of the organization. Since salaries and wages are to be paid on due dates with out fail, it is necessary to lay down strict time schedules for the completion of the different stages of work in the preparation of pay rolls. FUNCTIONS Preparation of monthly pay roll in respect of:
A. Regular employees of the company. B. Casual staff C. Full time apprentices D. Graduate or diploma trainees
Passing of accounting entries for pay and allowances and other payments
PAYMENT CONSISTS OF: BASIC+DA+HRA+CCA+SERVICE WEIGHTAGE+SPECIAL PAY DA - Dearness Allowance depends on prices of the commodities (INFLATION) HRA CCA - House Rent Allowance 30% on basic pay. - City compensation Allowance depends on the city Ex; A, B, C and D. Maximum 6% on basic or Rs.300/-.
SPECIAL PAY - Family Planning (only 2 children) Rs.250/-. Payment based on attendance. Both CTO (Central time office) and PAYROLL are interrelated. They are like LOCK and KEY.
maintenance of employees wise accounts in respect of loans and advance made by the company. Final settlement of accounts payment of gratuity in respect of employees who leave the service of the company. Preparation of balance sheet schedules in respect of salaries and wages payable, advances to employees, unpaid salaries or wages, miscellaneous liabilities etc.,
Table 4.4 PAY SCALES OF OFFICERS / NON- OFFICERS WEF01/01/1997 AND CORE R & D OFFICERS WEF 01/07/2001
OFFICERS GR SCALE 1 2 3 4 5 6 7 8 9 10 655O 8600 200 11350 250 14600
10750 300 16750 13000 350 18250 14500 350 18700 16000 400 20800 17500 400 22300 18500 450 23900 20500 500 26500 23750 600 28550
NON OFFICERS CAT A0 A B C D E F G H SCALE 3000 35 4750 3630 60 -5130 3730 65 4510 70 5420 3875 75 4775 85 - 5880 4040 90 5120 95 6355 4240 105 5500 115 6995 4460 120 5900 125 7525 4700 130 6230 140 8080 5100 155 6960 160 9040
GR
CAT
CORE R & D OFFICERS CMR CENTER FOR BUSINESS STUDIES, BANGALORE 67
DESIGNATION 2-4 5-7 8 A-C D-F G D SCIENTIST C SENIOR SCIENTIST B
SCALE 8600 250 10600 300 13300 350 18200 14500 350 15900 400 22300
PRINCIPAL 18500 450 - 23900
SCIENTIST 9 H A - CHIEF SCIENTIST 20500 500 26500
CENTRAL TIME OFFICE (C.T.O)

INTRODUCTION Central Time Office is meant for maintaining the attendance and leave records of the employees of the company. They will get all the inputs from EDP department who is responsible for maintaining records electronically. LEAVE PATTERN OFFICERS CASUAL LEAVE (CL) : 12 days/year. PAY LEAVES (PL) NON OFFICERS CASUAL LEAVE (CL) : 15 days/year. PAY LEAVES (PL) SICK LEAVE (SL) : 20 days/year. : 5 days/year.
68
: 30 days/year.
CMR CENTER FOR BUSINESS STUDIES, BANGALORE
ATTENDANCE A SHIFT B SHIFT C SHIFT G SHIFT - 6.15am to 2.15pm - 2.15pm to 10.15pm - 10.15pm to 6.15am - 8am to 4pm
MAJOR DIVISIONS The three major divisions which will work in all the shifts are as follows Hospital. Security. Canteen.
Due to the low orders all the employees will work in G Shift i.e. General Shift. The refreshment will be given for the employees who will work in B & C Shift. In B Shift employees will be given Rs.8 per hour. In C Shift employees will be given Rs.10 per hour.
OVER TIME (OT) There are two types of OT facilities given to the employees by the company for their extra time work done by the employees. Payment: The employees who work in the overtime they will be paid for many hours work done by that particular employee. how
Comp Off basis: Here in this case if the employee stays after the shift given to him then the may not provide him any payment but they provide a leave on any other day when ever that employee needed.
CENTRAL FINANCE PERFORMANCE The performance of the ITI is given in the table 1.1 and 1.2. The two tables indicate the growth of the company in the form of sales, production and profit/loss after tax and growth in turnover.
TABLE 4.5 PERFORMANCE OF ITI IN RUPEES
Performance from 2002 to 2007 in Rs. Crores

Year
Sales(Incl. ED) Production Profit /Loss After tax Growth In turnover
2002-03 2003-04 1794.65 1256.57 1689.37 1072.66 (374.87) (705.83) -
2004-05 1389.01 1362.22 (309.82) 10.54%
2005-06 1,749.38 1,607.20 (428.76) 25.94%
2006-07 1,818.33 1,797.05 (405.26) 3.94%
Source:
Source: Annual Reports of ITI
TABLE 4.6
PERFORMANCE OF ITI IN US $
Performance from 2002 to 2007 in US $ Million (with exchange rate of 43.51/$ as on 31-03-2007)
Year
Sales(Incl. ED Production Profit /Loss After tax Growth In turnover
2002-03
2003-04
2004-05
319.24 313.08 (71.21)
2005-06
402.06 369.39 (98.54)
2006-07
417.91 413.02 (93.14) 3.94%
412.47 388.27 (86.16)

-
288.80 246.53 (162.22)
10.54%
25.94%
Source: Annual Reports of ITI
4.4 MARKETING DEPARTMENT

INTRODUCTION:It is one of the important departments of ITI. The corporate marketing department was formed in the year 1995.Before both the functions of marketing and sales were carried out by only one department. The department is not made in charge for undertaking promotional activities such as advertising, creating demand etc., only the corporate body of the ITI will take these actions. The marketing department only looks after some of the functions.
FUNCTIONS
Product, including consideration of packaging and branding Pricing of the product. Physical distribution including distribution channels, warehousing and
transportation. a. To identify target markets and its needs. b. To promote the needs of the products of the company. c. To be a competitor in the world of the telecommunications d. To maintain good marketing for their products But some of the above functions are undertaken by the marketing department on the rules and policies of the corporate body only.
INDIAN CUSTOMER PROFILE:

Department of Telecommunications (DoT),Government of India BSNL Mahanagar Telephone Nigam Ltd Defence Services Paramilitary, Police & Internal Security organizations Power, Steel and Oil sectors Railways Post Offices, Factories, Offices, Bank Corporate 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 1. Nokia 2. Samsung 3. L G 4. Eric son 5. Siemens 6. United Telecom These companies are foreign companies where they have given a major competition to ITI These companies is competition with ITI in pricing issues this company takes orders from other company for fewer prices and has low profit margin and has less overhead cost. From all these reasons they receive the order flow to these companies rather than flowing to ITI. In ITI they cannot cut down the cost because they have high overhead expenses. So company is planning to reduce these expenses by reducing employee by giving those VRS and superannuation of the employee. TECHNICAL COLLABORATIONS/ STRATEGIC ALLIANCES In order to meet the emerging needs of the customers as well as to develop cutting edge capabilities ITI has select strategic alliance with leading companies from around the world. Alcatel CIT, France Tekelec Inc, USA ZTE, China Xalted, India Midas Communications, India Tejas Networks India GSM Infrastructure SSTP CDMA Infrastructure, DWDM STM-64 EDWAS Eqpt (BB corDECT) SDH Optical Transmission Eqpt
VNT, India Aphonic Power Systems, India C-DOT, India Tellabs, Finland Juniper Networks, USA DACS Electro systems, India HBL, India BSNL, India Moby, China Coral Networks, India SAF Technical, Latvia Eltek SGS (India) Ltd Kyocera, Japan Alpine, USA Eltel, India Watch Data, China Aras or Technologies Pvt India Telsima India Swit
Automated Integrated Management System Energy Saving Devices chess, IVRS, HVP Devices MLLN MPLS-IP Router Switch Mode Power Systems Artillery Fuses Ku band VSAT Services Antenna for GSM & CDMA ISDN PABX 15/18 GHZ Microwave Equipment SMPS Burst (Wireless Broadband Equipment) G-PON TWT 700 watt HPA SIM Card IFWT DCME
4.5
INTRODUCTION I.T.I's technological
RESEARCH AND DEVELOPMENT
strength
lies
in
its
vibrant
R&D
Unit.
Products developed by R&D forms a major portion of the company's turnover. The resources include:
An exclusive core R&D manned by highly qualified and talented engineers with
ISO 9001 certification and representation in national and international level quality standard panels
State- of -the- art design aids

o o o o
Modern facilities for complete equipment and system evaluation Comprehensive vendor evaluation facilities Approval and qualification facilities to match international standards. Customized Telecom and IT solution expertise.
Expertise in adapting imported technology/products to the country's requirement. BANGALORE PLANT This is the first Plant of ITI set up in 1948. With its, vertically integrated, stateof-the-art infrastructure a vast range of telecom products are manufactured. They include digital switches (large, medium, small), Digital Microwave equipment, optic fiber equipments, satellite communication equipment, access products, terminal equipments. The main R&D Centre is housed in this Plant. FACILITIES 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 , and molding and die casting shops Full fledged tool room Modern electronic assembly/ testing facilities.
4.6 PURCHASE AND MATERIAL MANAGEMENT

INTRODUCTION The effectiveness of material management function is very critical in the operating system for the success of the company. In the present competitive business environment where the customers has become more demanding on quality delivery and cost. Ensuring availability of balanced inventory at the right time schedules at the most economic cost and optimality utilizing the capacities created, would determine the efficiency of the operations. Integrated material management is a mandatory requirement in the Indian telephone industry plant. The main function of purchase and material management department is as follows: Material planning Purchase function Inward goods management Stores management
Inventory management
CHAPTER: V SWOT ANALYSIS

5.1 INTRODUCTION SWOT analysis measures a business unit, a proposition or idea. A SWOT analysis is a subjective assessment of data which is organized by the SWOT format into a logical order that helps understanding, presenting, discussion & decision-making. The 4 dimension are a useful extension of a basic two heading list of pros and cons. ITI has significantly been able to corner around 3 million lines order on GSM network during the year, the secured projection from the customers have enabled the company to set up a capacity for 1 million lines at Mankapur & another 3 million lines at Rae Bareli in addition to it, the capacity for 1 million lines at Bangalore on CDMA has been planned. These 3 manufacturing facilities would enable the company to achieve a turnover more than Rs.2000 crores. Thus ITI has various strengths to its credit & also opportunities. The strength, weaknesses, opportunities & threats of ITI can be classified as under.
5.2 STRENGTHS: Strengths are attributing of the organization that is helpful to the achievement of the objective. It means determining an organizations strong points. This should be from both internal & external customers. Strength is a resource advantage relative to competitors & the needs of the markets a firm serves or expects to serve. It is a
distinctive competence when it gives the firm a comparative advantage in the marketplace. Strengths arise from the resources & competencies available to the firm. The various strengths of ITI are as follows: Indias 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-locational 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. Large Market share Quick adoption to new & latest technology. One of the best infrastructure and R&D.
5.3 WEAKNESSES: Weaknesses are attributing of the organization that are harmful to the achievement of the objective. This means determining of an organizations weaknesses, not only from its point of view, but also more importantly, from customers. Although it may be difficult for an organization to acknowledge its weaknesses it is best to handle the better reality without procrastination. A weakness is a limitation or deficiency on one or more resource or competencies relative to the competitors that impedes a firms effective performance.
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.
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.
Political interference. No desire for development is killing the company. Worker efficiency is low as compare with other companies , because of age group they are having
5.4 OPPORTUNITIES: Opportunities are external conditions that are helpful to the achievement of the objective. Another major factor is to determine how organization can continue to grow within the market place opportunities are everywhere, such as the changes in technology, government policy, social patters, & so on an opportunity is a major situation in a firms environment. Key trends are one source of opportunities. Identification of a previously overlooked market segment, changes in competitive circumstances, technological changes, & improved buyer or supplier relationship could opportunities for the firm.
OPPORTUNITIES OF ITI:
Introduction of better & improved technology. Can improve the Quality of the products. Training & development strategies. Diversify their products to a new line Huge capital investment is available to introduce a new product which can beat competitors products. New models of telephone can be introduce to grab the market.
5.5THREATS: Threats are external conditions that are harmful to the objective. They are external factors that are out of our control. It is vital to be prepared & face threats even during turbulent times a threat is a major unfavorable situation in a firms environment. Threats are key impediments to the firms current or desired position. The entrance of new competitors, slow market growth, increased bargaining power of key buyers or suppliers, technological changes & new or revised regulations could represent threats to a firms success.
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. There is chance of Huge executive turnover. Promotional opportunities are bleak.
CHAPTER: VI SELECTED PROBLEM FINANCE DEPARTMENT

An Analysis of working capital management
6.1 OBJECTIVE OF THE STUDY The project is mainly consists of two folded objectives i.e., main objective and other objectives. The main objective is to acquire as much knowledge as possible from the industry side. The other objective is to find the one basic problem & give in suggestion to the organization. It deals with the follows points:6. To analyze the problem regarding working capital management through ratio analysis 7. To focus the growth of company in terms of sales, profits etc.
8. To study the trend of their performance, which will be helpful to solve the
problem of working capital management? 9. To analyze the problems of the Finance Department 6.2 METHODOLOGY OF THE STUDY The internship training report executed in the ITI Limited, Bangalore Regional office. The study mainly focuses on the overall operation of the company. The data collected from the respective departments and the discussion with the higher officials of the company. In addition to that the trainee has adopted observation method of collecting information from the ITI Limited.
This project involves the study of cash requirements of Indian Telephone industries limited for the purpose of analysis, the balance sheet and the profit and loss account for the current year has been collected. The data for this purpose of the study was collected from both primary and secondary sources. Primary sources: The primary data was collected from the central finance department of ITI. Secondary sources: The secondary data was obtained through annual reports, manuals and various magazines. The various tools used for the purpose are profit and loss account, balance sheet of the company, cash flow statements and graphs.
WORKING CAPITAL MANAGEMENT: Introduction. Every business needs funds for two purposes-for its establishment & carry out its day to day operations. Long term funds are required to create production facilities through purchase of fixed assets such as Plant & machinery, Land, Building, furniture, etc. Investment in these assets represents that part of firms capital which is blocked on a permanent or fixed basis & is called Fixed capital. Funds are also needed for short -term purposes for the purchase of raw material, payment of wages, & other day-to-day expenses etc. Working capital is the amount of funds necessary to cover the cost of operating the enterprise.
Need for working capital management:The main purpose of working capital management in an organization to meet the short term requirement of capita,(i.e. purchase of raw material , payment of wages & salaries etc).
Purchase of Raw material, components & spares. To pay Wages & salaries Day to day expenses of the company. To meet the selling expenses as packing & advertising cost. Provide credit facilities to customers. To maintain inventories of Raw material ,Work in progress, stores & finished goods.
Importance of Adequate working capital: Solvency of the business. Goodwill. Easy Loan.
Cash discounts. Regular supply of Raw materials. Regular payment of Salaries, wages & other day-today commitments. Exploitation of favorable market conditions. Ability to face crisis. Quick & regular return on investments. High Morale.
Approaches for determining an appropriate working capital mix:
Hedging or matching approaches
Conservative approaches
Aggressive approaches
Conservative approach:This approach suggest that the entire estimated investment in current assets should be financed from long term sources & short term sources be used only for emergency requirements. Hedging or matching approach:According to this approach the maturity of sources of funds should be matched with the nature assets to be financed. This approach suggest that the permanent working capital requirement should be financed with funds from long term sources while the temporary or seasonal capital should be financed with short term funds Aggressive approach:The aggressive approach suggests that the entire working estimation requirement of current assets should be financed from short term sources & even a part of fixed assets investment be financed from short term sources. This approach makes financemix more risky, less costly & more profitable.
WORKING CAPITAL ANALYSIS OR

MEASURING THE WORKING CAPITAL . No business can run successfully without adequate amount of working capital. However, it must also be noted that working capital is a means to run the business smoothly & profitably & not an end. The concept of working capital has its own importance in a going concern. A going concern usually has a positive balance of working capital but sometimes the uses of working capital may be more than the sources resulting into a negative value of working capital. A study of changes in uses & sources of working capital is necessary to evaluate the efficiency with which the working capital is employed in a business. This involves the need of working capital analysis. It can be measure through:
1) Ratio analysis 2) Funds flow analysis 3) budgeting. In this case we are proceeding with the help of Ratio analysis:-
RATIO ANLYSIS:A ratio is a simple arithmetical expression of the relationship of one number to another. The technique of ratio analysis can be employed for measuring short-term liquidity or working capital or position of a firm. The following ratios may be calculated for this purpose: 1. Current ratio 2. Quick ratio 3. Absolute liquidity ratio 4. Inventory turnover ratio 5. Debtors turnover ratio
6. creditors turnover ratio 7. fixed assets turnover ratio 8. cash turnover ratio 9. operating turnover ratio
The above Ratios will be calculated & interpretation is given in the following pages in detail.
1.1 CURRENT RATIO:Current ratio is the ratio, which expresses the relationship between current assets & current liabilities. The formula for calculating the current ratio is given below: Current ratio = current assets /current liabilities (Amount is Rs)
YEAR
CURRENT ASSETS
C.LIABLITIES
CURRENT RATIO
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
4852127907 7064594464 8101139172 7729529625 7340631953
2641319646 5360967564 4744019717 6684001216 6385979581
1.88:1 1.32:1 1.70:1 1.16:1 1.15:1
Interpretation:From the above tables we can see that last five years current ratio of company is not satisfactory. The ideal current ratio is 2:1 most of the years it is not even equal to 1,its current assets are not equal to its current liabilities.
1.2 Quick ratio:It is the ratio which expresses the relationship between liquid assets & liquid liabilities. The liquid assets include all current assets except stock & prepaid expenses. On the other hand a liquid liability includes all current liabilities except bank overdraft & cash credit.
Quick ratio= Quick assets / Quick liabilities
YEAR
Quick assets
Quick liabilities
Quick ratio
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
250606386 7 467409926 8 679280797 2 647279264 9 613888348 9
2641319646 5360967564 4744019717 6684001216 6385979581
0.95:1 0.87:1 1.43:1 0.97:1 Interpretation:0.96:1 From the above tables
we can see that last five years Quick ratio of company is satisfactory. The ideal quick ratio is 1:1 most of the years it is not even equal to 1, even we can see from that the tables in 2005-06 its exceed the quick liabilities.
1.3 Absolute liquidity ratio:It is the ratio, which expresses the relationship between the absolute liquid assets & quick liabilities. Absolute liquid assets include cash in hand, cash at bank, readily marketable securities. On the other hand liquid liabilities include all current liabilities except bank overdraft & cash credit. Ideal ratio is 1:2
Absolute liquid ratio= Absolute liquid assets / quick liabilities

YEAR Absolute liquid assets Quick liabilities Absolute Quick ratio
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
23271374 794212 493184502 61525527 44711725
2641319646 5360967564 4744019717 6684001216 6385979581
0.008:1 0.00014:1 0.1039:1 0.009:1 0.007:1
Interpretation:From the above tables we can see that last five years Absolute Quick ratio of company is not satisfactory. The ideal absolute quick ratio is 1:2 but liquid assets are not even equal to one this case. It is clear that the company do not have liquid cash in hand or at bank to meet its working capital requirement.
1.4 Solvency ratio:This ratio is the ratio between total assets & total liabilities. Higher the solvency ratio stronger will be the financial position of a concern & visa versa.
YEAR
Total assets 5258399487 7412772099 26229486693 24045510928 24609665599
Total liabilities 11015602524 11757146313 29961491136 29449443423 29452891532
Solvency ratio 0.48:1 0.63:1 0.88:1 0.82:1 0.84:1
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Interpretation:From the above tables we can see that last five years solvency ratio of company is not satisfactory. Higher the solvency ratio stronger will be the financial position of a concern & visa versa. It is clear that the companys financial position is not strong since from last few years.
1.5 Inventory turnover ratio:-
Its the ratio, which expresses the number of times the stock is turned over. In other words it is the ratio between the stock & cost of goods sold. A stock turnover of 8 times or more indicate the effectiveness. The formula for calculating Inventory turnover ratio is given as follows:
Inventory turnover ratio=cost of goods sold / average stock

Average stock = opening stock + closing stock /2 YEAR Cost of goods sold Average stock I.T.R(in times)
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
4059084814 6476757638 5620532608 5637757047 3275452473
2346064040 2390495196 1308331200 1256736976 1201748464
1.73 Or 2 times 2.70 Or 3 times 4.29 Or 4 times 4.48 Or 4 times 2.72 Or 3 times
Interpretation:From the above tables we can see that Inventory turnover ratio is not satisfactory. The ideal ratio is 8 times & we can say that companys Inventory turnover ratio or stock turnover ratio is not effective. That means it is not able to convert its inventories to sales effectively.
1.6 Debtors turnover ratio:This ratio indicates the relationship between debtors & sales. It indicates the number of times the debts are collected in a year. Debtor here means the average debtor & bills receivable. Sale here mean net credit sales minus returns.
Debtors turnover ratio = Net credit sales / Average Debtor

YEAR
Net credit sales 1801845025
Average debtor 1945334901
D.T.R(times) 0.92:1
91
2003-2004
2004-2005 2005-2006 2006-2007 2007-2008
4078203758 5030720620 4787987889 2629803939
3755425616 5560566322 5427896573 5241780428
1.08:1 0.90:1 0.88:1 0.50:1
Interpretation:From the above tables we can see that Debtor turnover ratio is not satisfactory. we can say that companys Debtor turnover ratio is not effective. The company is not able collect the money from the debtor on time & not able to cover.
1.7 creditors turnover ratio:This ratio indicates that the relationship between the creditors & purchases. In other words, it indicates the number of times the creditors are paid in a year. A creditor means sundry creditors & bills payable.
Creditors turnover ratio = Net annual credit purchases / average creditors

YEAR Net credit purchases
Average creditors 2417117924 5041902963 4042593243 5954551552 6143121670
C.T.R(times) 0.06:1 0.34:1 0.41:1 0.66:1 0.26:1
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
149202493 1754280774 1690205872 3952537566 1598764886
Interpretation:-
From the above tables we can see that creditors turnover ratio is not satisfactory. We can say that companys creditors turnover ratio is not effective. The company is not able to pay the money to the creditors on time & there is a shortage of funds.
1.8 Operating ratio:This ratio expresses the relationship between operating cost and sales. Operating cost refers to all expenses for operating a business. Lesser the operating cost more will be the profit for the company and vice versa. The formula for operating ratio is given below. Operating ratio= operating cost / net sales *100
YEAR
Operating cost 3628266225 6836851628 4748849878 5843578172 3414027190
Net sales 1801845025 4078203758 5030720620 4787987889 2629803939
Operating ratio 2.01:1 1.67:1 0.94:1 1.22:1 1.29:1
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Interpretation:From the above tables we can see that operating ratio is more compare to the net sales, so therefore we can say that the operating expenses are huge which is not covering the revenue collected by the company. This ratio represents the operating expenses of company as huge amount.
1.9 Current assets turnover ratio:Current assets to turnover ratio, it indicates the ratio between currents assets and sales. A high current assets turnover ratio is an indication of a better utilization of current assets and visa versa. The formula to calculate the ratio is given as follows: Current assets turnover ratio = Net sales /Current assets
YEAR
Net sales
Current assets
Current assets
turnover ratio 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 362826622 5 683685162 8 474884987 8 584357817 2 341402719 0 4852127907 7064594464 8101139172 7729529625 7340631953 0.37:1 0.57:1 0.62:1 0.61:1 0.35:1
Interpretation:From the above table we can say that the current assets turnover ratio is not satisfactory. The company is not operating at its optimum level; therefore it needs to speed up its conversion process so that it can utilize the assets at optimum level.
1.10 Cash turnover ratio:This ratio is the ratio between cash and sales or turnover. Cash means cash in hand and cash at bank and sales means net annual sales minus sales return. This ratio can be calculated from below formula: Cash turnover ratio= net annual sales / cash
YEAR
Net sales
cash
Cash turnover ratio
2003-2004 2004-2005 2005-2006 2006-2007
362826622 5 683685162 8 474884987 8 584357817 2
23271374 794212 493184502 61525527
155:1 8608:1 9.62:1 95:1
2007-2008
341402719 0
44711725
76:1
Interpretation:From the above table we can say that the company is not in good liquidity position to manage its cash sales , we can observe the trend of ratio its
Summary & findings:
The sales of the company is decreased to 262 crores (Bangalore plant) from 478crs due to the decrease in order book of the company.
Growth of sundry debtor of the company has decreased due to reduction in sales & realization of debtors is also low. The company has taken efforts to realize its debts.
Current Liability of the company indicates that there is delay of payments of its debts as realization of debtors is also low. The payment is also delayed & also due to communication gap which has to be reduced.
Inventory management technique is yet to be used to the fuller extent by the organization.
In the year 2005 the liquidity position of the company is improved due to raising of funds from secured loan.
The company sales trend is positive; this is due to the improvement in production & marketing strategy of the company.
CHAPTER: VII SUGGESTION & CONCLUSSION FOR THE SELECTED PROBLEM:-
1. The company should collect the money from the customers promptly and in time.
So that it can improve its liquidity position

2. The company should maintain the debtors velocity period, it will help the
company in speeding up the cash cycle time.

3. The company should go for cost cutting so that it can improve its operating profit
ratio, it will help company in investing in some new projects which is at most requirement of the company
4. The company should ask the credit period relaxed way to the supplier. It Would
help the company in meeting other requirements & can reduce the huge burden of expenses.
5. The company can introduce some software for the maintenance of accounting
records and maintenance; it can help company in reducing the cost & improve the efficiency of work which is very much important.
6. Project planning plays a vital role in any organization. After getting funds from
the sources allocation of funds to those projects which can be profitable & can be executed in a very well manner is important instead of going to the traditional products like, telephone equipment, small electronic equipment etc. 7. Allocation of funds should be done in careful manner for mobility of funds to various departments & different products to minimize the risk.
7.2 CONCLUSION:-
The internship training gives a clear picture about the operations of the company, and
also it focused the working capital management problem of the company. The training analyzed the causes of the working management problem and suggested the solutions for solving the problem. The company started of as Indian Telephone Industries which was concerned with telephone and related products. Late in 1994 changed its name to ITI Ltd. The company is
moved a step ahead into IT world and no more existing as telephone manufacturers only. The convergence of technologies has resulted into evolution of new series at affordable cost. Services, which were primarily hardware driven, are now being catered by equipment which has more software content Communication business has shifted to being equipment driven to customer demanded services. Fixed lines, which till recently formed chunk of ITI turnover have declined considerably and now the growth is in mobile business. ITI with its diverse experience in equipment manufacturing, installation, commissioning development and engineering is well placed for taking up end to end business solution and engineering is well placed for taking up end business solution and has shown the capability by installing GSM network for MTNL and BSNL, satellite network CIVICON project for ministry of home affairs. The companys effort to diversify into IT and IT enabled services have led to in house development of products such as INFOKIOSK, public key infrastructure (PKI), computer telephone integration (CTI), CALL CENTRE and e-commerce platform from R&D and IT group.
CHAPTER: VIII
Over all SUGGESTION & CONCLUSSION

SUGGESTION: After studying all the departments & functional areas of the company we suggest that the company should concentrate on its core business area instead of secondary functions.
We can see that the companys time to execute a project is too long therefore company should execute its projects on time so that it can help in getting huge orders from the same customer again & make them loyal to the company.
The company is not able to utilize its funds in adequate manner (i.e. allocation of resources which can be executed on time & profitable).
The company should go more for its diversification of business instead of going on traditional products& services (like landline telephone) ,GSM, CDMA, WI-FI .VSAT services.
The company is turning towards the IT world as Total IT service provider which is advantages for the company, it can have joint venture with some other private players to gain a market advantage.
ITI is oldest telecom company in the Indian telecom industry; it has a good experience in foreign joint ventures. It can proceed more in this field to get a more cost effective & quality services from across the globe.
There is no Indian company which is manufacturing mobile phone on its own resources, ITI is having that much of infrastructure & can invest huge capital in this field.
CONCLUSSION:The company started of as Indian Telephone Industries which was concerned with telephone and related products. Late in 1994 changed its name to ITI Ltd. The company is moved a step ahead into IT world and no more existing as telephone manufacturers only. The convergence of technologies has resulted into evolution of new series at affordable cost. Services, which were primarily hardware driven, are now being catered by equipment which has more software content Communication business has shifted to being equipment driven to customer demanded services. Fixed lines, which till recently formed
chunk of ITI turnover have declined considerably and now the growth is in mobile business.
ITI with its diverse experience in equipment manufacturing, installation, commissioning development and engineering is well placed for taking up end to end business solution and engineering is well placed for taking up end business solution and has shown the capability by installing GSM network for MTNL and BSNL, satellite network CIVICON project for ministry of home affairs. The companys effort to diversify into IT and IT enabled services have led to in house development of products such as INFOKIOSK, public key infrastructure (PKI), computer telephone integration (CTI), CALL CENTRE and e-commerce platform from R&D and IT group.
ITI is a company with excessive Labour force (approximately 3000 employees).In the awake of this depressed phase of the company wee there is no producduction, there is excessive unproductive labor force. This problem is solved through VRS scheme and OJT programs. Both of these programs have been successful.However,a few employees resented due to age/retirement factor. Due to low phase the company is definitely not in a position to pay the wage and salaries in tie however, the employees do get their salaries even though it is delayed payment.
The companys role as a significant resource provider for building vital infrastructure is underscored by the fact the ITI continues to maintain its leadership by being the largest supplier of switching equipment as well as the SDH fiber optic terminals to the countrys telecom network. The major thrust being placed on speedier implementation of new technologies and faster skill formation in new areas, as part of the total restructuring exercise, would lend ITI a keen competitive edge in convergence market.
BIBLIOGRAPHY
Books Author publication
Marketing Management Finance Management Human Resource Management Production Management Website
PHILIP KOTLAR SHASHI K. GUPTA & ANNUAL REPORT OF ITI 2007-2008 SUBBARAO K.ASHWATHAPPA http. \\www.itiltd.com
Pearsons publishers Kalyani publishers Himalayan publishers TAta McGraw hills --
ANNEXURE
PERFORMANCE
Performance from 2002 to 2007 in Rs. Crores
Year
2002-03 2003-04
200405 1389.0 1 1362.2 2 (309.82 ) 10.54%
2005-06
2006-07
Sales(Incl. ED)
1794.65 1256.57
1,749.38
1,818.33
Production
1689.37 1072.66
1,607.20
1,797.05
Profit /Loss After tax
(374.87) (705.83)
(428.76)
(405.26)
Growth In turnover
25.94%
3.94%
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.03.2008 (With limited review of the results for the quarter ended 31/03/08)
(Rs. In lakhs) SL. NO. PARTICULARS 3 months ended (31/03/08) (unaudited) 38,275 1,869 36,406 2A Transfer from grant-in-aid 35,301 Year to date figures for the current period ended 31/03/08 (unaudited) 123,367 6,788 116,579 35,694
Sales/income from operations Less: excise duty
2B 3 4
Other income Total income (1+2) expenditure a) (increase)/decrease in stocks b) consumption of raw materials c) employee cost d) depreciation e) other expenditure f) total
1,861 73,568
4,309 156,582
1,376 25,866 13,421 676 5,857 47,196 8,314 15,576
254 92,709 37,723 3,407 14,611 148,704 26,837 15,576
5 6
financing expenses exceptional items (prior period adjustment) profit / (loss) from ordinary activities before tax (3-(4+5+6))
2,482
(34,535)
provision for taxation current tax deferred tax fringe benefit tax _ _ 21 2,461 _ _ 76 (34,611)
profit / (loss) from ordinary activities after tax (7-8) extraordinary items
10 11 12
profit / (loss) (9-10) paid-up share capital equity share capital (face value of Rs. 10 each) preference share capital (face value of Rs. 100 each) reserves including grant-in aid and excluding revaluation reserve (as per balance sheet of previous accounting year)
_ 2,461
_ (34,611)
28,800
28,800
30,000
30,000
13
earnings per share a) Basic and diluted EPS before extraordinary items for the period, for the year to date and for the previous year (not to be annualized (in Rs.)) b) Basic and diluted EPS after extraordinary items for the period, for the year to date and for the previous year (not to be annualized (in Rs.)) public shareholding number of shares (equity) percentage of shareholding 0.85 -12.94
14
0.85
-12.94
15 20,219,310 7.02% 20,219,310 7.02%
Note; the above results were approved by the board of directors at their meeting held on 29/04/08
BALANCE SHEET AS AT 31ST MARCH 2008
SCHEDULE NUMBER SOURCES OF FUNDS:Shareholders funds Share capital Reserves and surplus Grant-in-aid Loan funds Secured loans Unsecured loans 2.1 2.2 1334.47 895.42 1.1 1.2 1.3 588.00 2563.04 85.70
AS AT 31ST MARCH 2008
3236.74
2229.89 5466.63
APPLICATION OF FUNDS:Fixed assets Gross block Less: depreciation to date Net block Capital work-in progress and machinery in transit Investments Current assets, loans and advances Inventories Sundry debtors Cash and bank balances 5.1 5.2 5.3 Loans and advances 5.4 Less: current liabilities and provisions Current liabilities Provisions 6.1 6.2 Net current assets 2152.64 153.87 2306.51 239.08 Miscellaneous expenditure to the extent not written-off or adjusted CMR CENTER 7.1 BUSINESS STUDIES, BANGALORE FOR 0.00 Profit and loss account 379.41 1828.92 14.17 2222.50 323.09 2545.59 3.1 3.2 3657.09 987.31 2669.78 1.29 2671.07 8.15 4.0
106
Schedules 1.1 to 10 and accounting policies annexed form an integral part of balance sheet. As per our report of even date PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2008
SCHEDULE NUMBER INCOME Sales Services Total sales and services Less: excise duty Interest earned Other income Transfers from grant-in-aid Total EXPENDITURE Consumption of raw materials and production stores Purchase for direct sales Charges on installation & maintenance of exchanges Salaries, wages and bonus Companys contribution to providend fund and other funds Workmen and staff welfare expenses Voluntary retirement payments Depreciation Less: transfer from revaluation reserve Financing expenses Deferred revenue expenditure written off Manufacturing expenses Administration expenses Selling expenses Total Less: transfer to capital account Accretion/(decretion) to: Work in process Manufactured components Stock-in trade Miscellaneous expenditure not written-off Cost of sales for the year Profit before tax for the year 9.13 9.14 9.15 9.16 (22.32) 1.31 9.12 0.10 9.7 9.8 9.9 9.10 9.11 9.4 9.5 9.6 57.38 28.11 9.2 9.3 9.1 8.2 8.3 8.4 8.1 1041.55 171.76 1213.31 57.69
FOR THE YEAR ENDED 31ST MARCH 2008
1155.62 1.81 64.98 357.20 1579.61
424.93
459.97 59.75
258.48 111.61
12.54 0.32
29.27 282.43 0.00 51.37 67.87 7.36 1765.90

16.69 0.00 (4.22)
108
(Rs. In crores)
Includes expenditure on research & development Rs. 25.65 crores under various heads

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CHAPTER: I INTRODUCTION

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 1

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 3

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 4

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 5

CHAPTER: II A PROFILE OF ITI LIMITED

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 7

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 8

PICTURE 2.1 OVERVIEW

2.3 BASIC INFORMATION ABOUT ITI

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 9

ISO ACCREDITATION COMPANY WEB SITE LOGO

2.4 ITI TODAY

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 10

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 11

It will offer innovative solutions using leading technologies

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 12

2.6 MISSION: To establish leadership in manufacturing and supply of new technology

2.8 ITIs AIM

b) Continuous innovation. c) Continual improvement in every activity.

Involvement of people at all levels internally and externally.

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 15

-Special Director - Company Secretary

2.13 OVERVIEW OF ITI

BANGALORE - 560 016 1. 2. 3. 4. 5.

Network system unit: Bangalore

Regional offices: New Delhi, Bangalore, Kolkata, Lucknow ,

CMR CENTER FOR BUSINESS STUDIES, BANGALORE 18

Map 2.2 REGIONAL OFFICES AND AREA OFFICES

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Product division in Indian telephone Industries Telephone Division

ITI PRODUCT - TELEPHONE

produces satellite products. The following picture indicates the satellite.

PICTURE 2.4 ITI PRODUCT - SATELLITE

TERMINAL EQUIPMENTS Telephones Video conferencing

PICTURE 2.5 ITI PRODUCTS- DELTA

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(leds are provided) to indicate health and correct

PICTURE 2.6 ITI PRODUCTDESKTOP VIDEO CONFERNCING TABLE

PICTURE 2.7 PRESIDENT

EXECUTIVE TELEPHONE SYSTEM The telephones are identical and interchangeable

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Large Switches Medium Switches Small Switches

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Wireless in Local Digital Pairgain Loop

Telephones ISDN Products Video

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Computer Telephony Integration (CTI)

Bank Mechanizing Products Fire Alaram

Military EPABX 128 ports

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TERMINAL EQUIPMENTS /SUBSCRIBER END PRODUCTS

PICTURE 2.9 ACESS PRODUCT DIVISION:

4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Telemetry and Telecontrol equipment Automatic Road traffic signals

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CHAPTER: III ORGANIZATION STRUCTURE

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CHART 3.1 ORGANIZATION CHART OF BANGALORE PLANT-

DR-F AGM-I&C AGM-TDP AGM-SAD

DGM(IMM)T DP DGM-I&C DGM-TSTDP