Capital Expenditure Model and Analysis on Commission Payout

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BY

ANKUR JAIN-10BSP0073

ANKIT CHANDAK-10BSP0069

AN !DEA CAN CHANGE UR LIFE !!

CAPITAL EXPENDITURE MODEL AND ANALYSIS ON

COMMISSION PAYOUT POLICY OF IDEA CELLULAR

LTD.



INTRODUCTIONINTRODUCTION

y IDEA Cellular is a publicly listed company, having listed on

the Bombay Stock Exchange (BSE) and the National Stock

Exchange (NSE) in March 2007.

y IDEA is the 3rd largest mobile services operator in India, inrevenue terms, and recorded a subscriber base of over 78

million as on end November '10

y

The Group has also been rated 'The Best Employer in Indiaand among the Top 20 in Asia' by the Hewitt-Economic

Times and Wall Street Journal Study 2007.



PROJECT PROPOSEDPROJECT PROPOSED

y PART 1:- PRE-PAID

y PART 2:- AGEING SCHEDULE

y PART 3:- POST-PAID

y PART 4:- ROAMING



PROJECT OBJECTIVEPROJECT OBJECTIVE

y PART 1:- To analyze cost of acquiring each prepaid

customers of organization across each zone and finally

calculating which zone is doing well.

y PART 2:- To analyze that the inventory which is in

company¶s warehouse and order which are in process (OP) issufficient according to organizations need and ageing

schedule for (active, passive, core) items to know the status.

y PART 3:- To analyze cost of acquiring each postpaid

customers of Idea Cellular Limited and finally calculating

which DST¶S is doing well.

y PART 4:- To get aware of hand on process of

accounting module of oracle and rectify and clear the

accounts of roaming process in idea for last 5 yrs



PROJECT METHODOLOGYPROJECT METHODOLOGY

y Data resources

y Research technique

y Research tool

y Method used



PART 1:PART 1:-- PREPAIDPREPAID

y BRIEF:-

IDEA had become a pan India operator by 2009.The total

subscriber base of idea as on 31st Dec 2009 were 57,611,872.

y PROJECT:-

To calculate the total commission paid by organization to its

distributors and retailers and number of activation done by

them



LAYOUT OF THE PROJECT



CALCULATION DONE

ZONE BEL

BLR

1

BLR

2

CN

T

GL

B MLR

MY

S

NR

T ROB

AVE

RAG

E

COST PER

ACTIVATI

ON JAN-11 66 55 83 85 65 69 89 68 84 72

COST PER

ACTIVATI

ON DEC-10 91 69 63 74 86 83 84 61 87 65

COST PER

ACTIVATI

ON NOV-10 68 70 91 86 89 72 70 68 68 72



RESULT /ANALYSIS

y Average Cost of activation for all zones?

y Zone having highest cost of activation?

y Zone having lowest cost of activation?

y Trend seen?



PART 2 :PART 2 :-- AGEINGAGEING

y BRIEF

The CAPEX and OPEX department in IDEA deals with

capital and operating expenditure of IDEA cellular.

y PROJECT

The third part of our project is to calculate ageing schedule

of (active, passive and core items) used by Idea Cellular

Limited



LAYOUT OF THE PROJECT



RESULT/ANALYSIS

y ACTIVE?

y PASSIVE?

y CORE?

Documents

Capital Expenditure Model and Analysis on Commission Payout