INTERNATIONAL INSTITUTE OF PLANNING & MANAGEMENT

NEW DELHI

PROJECT REPORT
IN

ON THE TOPIC OF

PAYMENT MANAGEMENT SYSTEM

IN PARTIAL FULLFILLEMENT
OF
POST GRADUATION PROGRAMM
(SPRING SUMMER 2008-2010)

SUBMITTED BY:-

RAJAT CHOUDHARY

Mail-id- rajatchoudhary_59@yahoo.co.in

Cell no.- +91-93501-33259

 ACKNOWLEDGEMENT

I asseverate my deep sense of gratitude toward:

Mr. Sanjeev Mehta (Sr. manager Admin deptt.), Mr.

Pankaj kalra (finanacial controller), Mr. Samar roy (Sr.
manager finance Deptt).

This Project has been made possible through the direct

and indirect Co-operation of various staff members of
AIRCEL LIMITED. And without those co-operation & help
the completion of this internship was not possible, who
have inspired me at every step suggest alternative
solutions & shared their valuable experience & knowledge
with me.

who always facilitates me in gaining practical knowledge.

In my last line I would like to say thanks to Mr. Vikash

gupta, Mr. Subham jain, Mr. Amir ali (finance deptt.)
who helped me alot in explaining the work process of the
organization & sharing other precious knowledge.
 RAJAT CHOUDHARY
(SS2008/2010)

PREFACE
Practical part is an essential part of management studies as it helps one
to visualize the management practices in the field, the theoretical aspects
of which we have learnt in the classroom.

This study of payment management system is based on on-the-job & off-

the-job research, With the help of past financial data, the roll of other
departments in payment system, budget system, application of SAP in
finance, role of different circles, contracts, vendors payment period. on
all these topics research has done. This training constitutes an integral
part of my master of business administration at INTERNATIONAL
INSTITUTE OF PLANNING & MANAGEMENT (NEW DELHI).

The training period consist of 45 days from January 2nd to 27th January
2009

It was very challenging as well as interesting for me to work on payment

management system. I have leant practical & theoretical aspects which
implemented by company in its structure.
 CONTENTS

1.Preface
2.Acknowledge
3.Organization structure
3.1- History of organization
3.2- Strategic business unit
3.3- About products
3.4- Financial performance
3.5- Organization chart

4. Introduction
4.1-Objective of study
4.2-Payment process
4.3-Type of payments
4.4-Budget
4.5-Involved departments
4.6-Vendors & contracts
4.7-Importance of SAP

5. Research methodologies
5.1 Introduction & objective
5.2 Research Design
5.3 Data collection Instruments
5.4 Research Limitation

6. Bibliography
 7. Abbreviation
8. Conclusion

Company origin
The Aircel Group is a joint venture between Maxis Communications Berhad of
Malaysia and Apollo Hospital Enterprise Ltd of India, with Maxis Communications
holding a majority stake of 74%. Aircel commenced operations in 1999 and became
the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it
launched commercially in Chennai and quickly established itself as a market leader
– a position it has held since. Aircel began its outward expansion in 2005 and met
with unprecedented success in the Eastern frontier circles. It emerged a market
leader in Assam and in the North Eastern provinces within 18 months of operations.
During this period, the company gained a foothold in 9 circles.

Sr. no Circles

1. Chennai

2. Tamilnadu

3. Assam

4. Kolkata

5. Bihar

6. Orrisa

7. Himachal pradesh

8. Jammu & Kashmir

9. North east
The Company has currently gained a momentum in the space of
telecom in India post the allocation of additional spectrum by
the Department of Telecom, Govt. of India for 13 new
circles across India.
These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh,
Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh,
Maharashtra & Goa, Rajasthan, Punjab, UP (West) and
UP (East).

Aircel has won many awards and recognitions. Voice and Data
gave Aircel the highest rating for overall customer satisfaction
and network quality in 2006. Aircel emerged as the top mid-size
utility company in Businessworld’s ‘List of Best Mid-Size
Companies’ in 2007. Additionally, Tele.net recognised Aircel as
the best regional operator in 2008.

With over 15 million customers in the country, Aircel, the

fastest growing telecom company in India, has revved up plans
to become a full-fledged national operator.
 Strategic business unit

HOLDING
COMPANY

DISHNET AIRCEL
AIRCEL BUSINESS
WIRELESS CELLULAR
SOLUTIONS
LIMITED LIMITED
DISHNET WIRELESS LIMITED-This company provides broadband
services in different circles & it is one of the company which uses WI-
MAX technology .

AIRCEL CELLULAR LIMITED-This company provides mobile services

in different circles.

AIRCEL BUSINESS SOLUTIONS-This is the sub part of aircel cellular

limited which executes the ILD, NLD,WIMAX operations for aircel
cellular.

COMPANY OFFERING(PRODUCTS)
Aircel mainly deal in its core business of cellular connection. it
provides variety of products such as.
-Postpaid mobile connections
-Prepaid mobile connections
-Recharge vouchers
-Value added services
-Broadband connections
with the help of these products company operate its business in
the market & company launches other products but they can be
depend on either the competition or customer preference
 Financial performance

Chennai-based Aircel is beginning to play a major role in the

financial performance of Malaysia’s Maxis Communications
ever since it was acquired in March 2006 from C Sivasankaran
of the Sterling Group.
Aircel has substantially increased its contribution in Maxis’
overall revenue as well as in the EBITDA growth, besides the
overall subscriber growth during the first quarter of 2007.
Aircel’s contribution to Maxis overall revenue in the first
quarter has gone up sharply to 15% as against 10% in the
previous quarters, while the contribution to EBITDA went up to
9% as against 7% a few quarters ago, Maxis said in a
communication to investors recently.
In value, Aircel contributed RM 320 million (close to Rs 390
crore) to the group’s turnover of RM 2,157 million (Rs 2,600
crore) in the quarter as against RM 29 million (Rs 38 crore) ie
more than 10 times over the previous quarter.
Similarly, Aircel’s contribution on EBITDA was around RM
102 million (close to Rs 122 crore) as against group’s EBITDA
of RM 1,082 million (Rs 1,300 crore), Maxis pointed out. The
Indian arm was key to this increase in the group’s both revenue
and EBITDA, the company said further.

Profit figures
 East west north

500

400

300

200

100

0
2006 2007 2008

This was possible, as the subscriber base of Aircel has more than
doubled to 5.5 million as of March 2007 as compared to 2.6
million a year back, taking Maxis's total subscriber base
to 14 million during the quarter. Aircel managed to retain its
market share in Chennai and Tamil Nadu with 26% and 29%,
respectively.
In the other five circles, the company's market share rose from
9.3% to 11% in the current quarter . In the last quarter under
review alone Aircel has gained 1 million subscribers, Maxis
said.
Aircel is operational in nine circles with an immediate market
coverage to 350 million people, a quick gain on population from
last quarter's 230 million people from seven circles.
Having earmarked around $1 billion investments in India over a
period of three years, Maxis sees its Indian subsidiary become a
key player in the group’s overall growth in revenue and profits.
 FINANCE DEPARMENT STRUCTURE

FINANCE
DEPTT.

TRESURY REVENUE TAXATION M.I.S PAYBLE

OPEX CAPEX
 ORGANISATION CHART(FINANCE DEPTT.)

M.D
(MAXIS GROUP)

C.F.O C.O.O

FINANCIAL
CONTROLLER OTHERS

BUSINESS
CONTROLER

MANAGER/
Sr. MANAGER

DIVISIONAL
MANAGER/ ASTT.
MANAGER

SENIOR
EXECUTIVE
 OBJECTIVE OF STUDY

This study of payment management system relates with the payment

which made by the company against their expenditures. The main focus of
this study is on the overall payment procedure, expenditures are
different in their nature company pays huge amount against these ongoing
expenditures in term of fortnightly, monthly, quarterly.

Material, Money, Market, Method, Manpower, Management these are 6

important needs for running any business all relates to each other they
cannot work without each other aid. In organization expenditures are as
back cost & the margins are as face cost. Management of overall payment
system, this tasks transparency & efficiency is depend upon the ERP
system (SAP) or the employee. SAP makes work more easy in less times
& employee are the helper who helps to SAP in collecting the correct data
from the sources
 PAYMENT PROCESS

REQUIRED COMMERCIAL
DEPTT.
DEPTT.

SELECT
VENDOR ON
GENERAT THE BASIS OF
PRICES
E P.O

H VENDOR
A
N
D
O
V
E
R

T GOODS RECEIVED BY
O COMMERCIAL DEPTT.

D
E
P MADE GRN
T
T ENTRY

PAYBLE DEPTT.

This is the whole process starts from the required deptt. The needy
department issue demand letter to commercial deptt in which they
specified what they need after getting this letter by commercial deptt.
they analyze this letter carefully & start contacts to their vendors they
take quotations from different vendor after collecting the quotations
they compare the price, quality, delivery, post sales services & other
factor. Than they select a vendor for buying a particular product or
service after all they issue a P.O in which they describe their
requirement by name, type, quantity, a predetermined delivery date.
after

This vendor Sends the required product & service to commercial

deptt. The commercial deptt. Checks the product/services which they
ordered in term of quality, other factors along with p/s vendors send
its invoice or bill commercial deptt. Except the bill & forward that
bill & ordered p/s to the needy deptt. now needy deptt. signe that .
Approval letter receiving from commercial deptt by their
functional head after this commercial /goods received deptt send it
bill to payment deptt. With all the documents such as P.O,
Invoice, P.R. now payable deptt checks the all required
documents & book the expense in SAP & make payment to the
vendor for P/S through the D.D, CHEQUE, (ONLINE)
ELECTRONIC FUND TRANSFER.

TERMINOLOGIES

P.O- (PURCHASE ORDRER)- Issued by the commercial deptt. To the vendors.

P.R-(PURCHASE REQUISITION)-Made by the the department employee for bills which
amount is less than 10,000.
VENDOR- Is the party who sells p/s in the market.
 TYPE OF PAYMENTS

OPEX- This term OPEX stands for operational expenditures, these

kind of expenditure are required for running the business or we can
say these kind of expenditure are operating expenditures which arises
when we operates business. Such as telephone, electricity, advertising
transportations these kind of expenditures consist in this category.

CAPEX-It means capital expenditure which arises when company

purchase new assets or add some new values in the existing assets
these expenses are not uniform in their nature but amount of these
expenses are very huge these are made often not regularly.

BUDGET

WHAT IS BUDGET
Budget is a financial or quantitative statement that prepared
prior to a predefined period of time.

Budgeting is a method of determining the future expenditures at

prior period of time.

Objective of budget

1.Helps in executing the managerial polices.

2.It helps in taking precautions about the future expenditures.
3.Increase the performance of the organization.
4.Increase the revenue /NPAT after executing the budget.
Who makes the budget.
In every organization their a separate budgeting team under the
treasury deptt. they make budget with the help of following
things.

-Forecasting method
-Past data
-Future market conditions
-Analyzing the govt. polices, regulations.

Type of budgets used in the Aircel

1. Sales budget

2. Revenue budget

2. Expenditure budget
-Administration budget
-Advertising & Promotion budget
-Other budgets

3. Capital expenditure budget

 Method of budget

1.Fixed budget – In these type of budgets level of activity is

already fixed & no chance for increase or decrease in their level
of activity.

2.Flexible budget-In these type of budget the level of activity

does not fixed or in other words it varies upon the level of
activity we can increase or decrease the budget amount with the
change in level of activity.

TERMINOLOGIES IN BUDGET

1. Fixed expenditures

2. Variable expenditures

3. Semi-variable expenditure
DEPARTMENT ENVOLVED IN THE PAYMENT SYSTEM

-Needy department

-Commercial department

-Payable department

-Treasury department-This deptt. plays an important role in

finance deptt. the all decision related to

-Fund raising strategies

-Investment plans
-Policies related to finance
-Overall portfolio management

This department is the backbone of the other finance sub parts

because finance is all about money & treasury deptt. work only
& only where they finds new sources of money. They focuses on
overall economic activity of the organization
-Revenue department

-M.I.S department- This department helps finance deptt. in

managing their work. MIS executes different type of work at

Strategi
c
plannin

Managerial level

Operational level

MIS Deptt. explore, collects, analyze data & convert that data to
knowledge. This knowledge is very helpful for the relative
deppt. Which makes their work more & some times this deptt.
is known as knowledge deptt.
 -Taxation department- This department takes care of all the
expenditure on which company will be paid tax. This helps to
evaluating the correct figurers of profit & it also make work
easier of revenue deptt.

Vendors & Contracts

Vendor-The term vendor means the person who sells good/services

in the market. vendor is very important because they are the only
source from which we purchase whatever we want.

Contracts- It means legal agreement in which law is enforced for

the contracts two parties are required one is the company offeree &
another party is (offerer). contract can be made upon any subject
But in aircel contract used for rates.

Like aircel has more than 34,611 vendors from which aircel has
made rate contract with them for particular period of time in that
period of time the vendor does not increase the price of P/S from the
rate mentioned in the LOI but vendor can decrease the price below
than the price mentioned in the LOI.
Objective of contract

1. It eliminates fluctuation in the price of P/S.

2. It makes constant the operating expenditure.

3. Reduce the chances of un availability.

4. Fixed payment period which is beneficial for both parties

IMPORTANCE OF SAP IN FINANCE

WHAT IS SAP:-

SAP stands for system of applications & products. It is the

integration of set of software that makes the work easier, it provides
efficiency, effectiveness, transparency in the business and after
implementation of SAP in business it makes our business more
technological where errors are very less .

SAP provides a comprehensive range of enterprise software

applications and business solutions to empower every aspect of your
business.You gain the visibility to pinpoint inefficiencies – and the
capabilities to transform them into competitive advantage. The
foresight to identify new opportunities – and the agility to respond.
The functionality to optimize your operations – and resources to
extend best practices to your entire value chain.

SAP defines business software as comprising enterprise resource

planning and related applications such as supply chain management,
customer relationship management, product life-cycle management,
and supplier relationship management.
 RESEARCH METHODOLOGIES

5.1:- INTRODUCTION

Research always starts with a question or a problem. Its purpose is

to answer to questions through the application of the scientific
methods. It is a systematic and intensive study directed towards a
more complete knowledge of the subject studies. Once the problem
is defined properly then one can easilychalk out the Objectives for
the research.

Objectives of the Research Project

The subject matter for this research Project is to study the
behavior of the payment system against the expenditure arises in
during the operation.

This project consists of different objectives.

They are as follows:

· To know the payment settlement system.

· To measure what is the major field of expenditure.

· To know how the payment made against the expenditure.

· To understand the link in between different finance deptt.

5.2:-Research Design:

Research Design is the plan, structure and strategy of

investigation conceived so as to obtain answers to research
questions and to control variance.

Descriptive Research

The type of research Design for this Research Project is

Descriptive Research. Under the head of the Descriptive
Research this project is based on the

Cross sectional studies.

The cross sectional studies are of two types:

1. Field studies
2. Surveys

This research is based on the surveys.

The complete research design is formulated with the following

steps:
1. Identify and define the problem
2. Choice of Research Design
3. Determining sources of Data
4. Designing data collection Forms
5. Determining sampling design and sampling size
6. Organizing and conducting the field survey
7. Processing and analyzing the collected data
5.3:- Data collection Instruments

There are two main methods by which primary data can be

collected are:
1. Primary sources
2. Secondary sources
3. Communication
4. Other instruments

Primary sources- These sources are problem in hand sources

Such as- interview

Secondary sources- These sources are those sources in which

we get information from indirect way. ex- magazines, journals

Communication
The communication method, in effect, is the method of
designing questionnaires with a view to collect the requisite
information.

Instruments
From the above both data collection method, Questionnaire
(Communication method) is selected as the instrument for
collecting the data as the respondents are directly interviewed by
the researcher. The same questionnaire is attached as an
annexure to this report.

Questionnaire Design:
From basic aspects of measurement and meaning, we proceed to
their application in designing the instruments for seeking and
recording data. Data may be obtained by either observing or
asking for them, and forms are needed for field used in
observation and interviewing. The accuracy and relevancy of the
data gathered depend heavily on the questionnaire.

Function of questionnaires:

Questionnaire is simply a formalized schedule to obtain and

record specified and relevant information with tolerable
accuracy and completeness. In other words, it directs the
questioning process and promotes clear and proper recording.

5.4:- Research Limitations

One must be aware of these limitations in advance so that one is

clear about what Research can and cannot do:

First, Research is not totally based on correct data because

sources of information are different.
 BIBLIOGRAPHY

Books
• Research Methodology – C. R. Kothari
• Cost & management accounting – Jain, Pareek

Websites:

• http://www.google.com
• http://en.wikipedia.org
• http://www.aircel.com
• Department documents
 ABBREVIATION

1. P/S- Product & service

2. P.O- Purchase order

3. P.R- Purchase requisition

4. N.L.D- National long distance

5. I.L.D- International long distance

6. NPAT- Net profit after tax

 CONCLUSION

The winter internship for partial fulfillment of Post graduate

diploma in management course in training program was a very
good experience for me.This training gives us an exposure to
professional working culture prevailing in industry, which is
very important for a management student. It also provide a mind
set to work hard during the initial phase of career.

I did my training in finance department of a well reputated &

well established company. I am sure that this training helps me a
lot in future career.

I again thanks to everyone who has contributed to make this

experience truly complete & stimulating.

RAJAT CHOUDHARY
I.I.P.M (NEW DELHI)