1. SUMMER TRAINING REPORT
ON
PAYMNENT EFFICIENCY & DATABASE ON VENDOR MASTER
AT
ITC LIMITED, MUNGER
Project submitted in partial fulfillment of the requirement of the award
of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
Under the guidance of:- Submitted By:-
ANKIT KUMAR
(BBA/3022/10)
DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY
MESRA, RANCHI
2012
Prof. Nidhi Tiwari
2. OBJECTIVE OF THE PROJECT
To prepare vendor master, which helps in to know about all the
data of the vendors.
Checking, monitoring pending bills regularly & sorting out
issues.
To developed better interface between other functions to reduce
delays.
Previous data has to be analyzed for better understanding the
problem in delay in payment.
Designing of a score card for better control over payment
efficiency.
To reduce the time gap & make payment to vendor on time.
3. INTRODUCTION OF COMPANY
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively Indianised, the
name of the Company was changed from Imperial Tobacco Company of India
Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in
1974. In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses –
Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery
and Personal Care - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Personal Care, Stationery, Safety
Matches and other FMCG products. While ITC is an outstanding market leader in
its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and
Agri-Exports, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery.
4. RESEARCH TOPIC
My project is on payment efficiency of Purchase Order based
vendor with agreed payment terms.
Standard payment term of ITC MUNGER:-
Payment will be made either by cheque / demand draft
or any other appropriate banking instrument /
mechanism normally within one month of submission
of bills, unless otherwise agreed, subject to vendor
complying with the terms & conditions.
5. RESEARCH METHODOLOGY
Primary data:-
As per my research primary data is collected
through questionnaire which is filled by
vendors.
Secondary data:-
Secondary data is collected by the help of
various PVR’S (Personal vouchers) and
through various documents provided to me
by ITC.
6. DATA TABULATION
The universe size was to cover the whole vendors. The
view of vendors is taken into account. Data is also
collected from various vendors of ITC LTD. MUNGER for
comparison and tabulation.
Out of 96 vendors sample of 56 was
taken in the project and efforts have been made to get
the maximum information. And method used for
sampling is convenience sampling.
7. PAYMENT EFFICIENCY SCORE CARD
Payment from due date Point scored (-5 to 10)
Up to +/- 3 days (27 to 33 days) 10
Up to +/- 4 days (on 26 or 34 day) 9
Up to +/-7 days (23-25 or 35-37) 8
Up to +/- 10 days (20-22 or 38-40) 6
Up to +/- 13 days (17-19 or 41-43) 3
+/- 13 days (<=16 days or >=44 days) 0
> 30 days -5
Payment Efficiency
= (Total point availed) x 100
Max. Point
10. 64%
0%
36%
Fullfilling relationship Starting relationship Get better with more business
Question: How do you fell about business relationship
that ITC has created over the years?
13. 72%
28%
0%
0%
Very good Good Satisfactory Dissatisfactory
Question: What type of grade you want to give to ITC for
its performance regarding payment efficiency?
14. SUGGESTIONS GIVEN BY VENDORS FOR
IMPROVING OF PAYMENT EFFICIENCY
It will be more helpful if ITC attach the deduction or short
payment details with cheque , if any.
Some of the vendors are asking for e-payment in place of
payment through cheque.
Make an acknowledgement of bill & generate a unique no.
regarding bill so that a vendor can easily get queries
related to its bill.
If there is any problem regarding bill or good’s then
immediately inform it to vendors so that vendors can
quickly correct its mistake & no delay is made in his
payment.
Can try RTGS (Real time gross settlement) facility of banks
for making payment fast.
15. CONCLUSION
Almost all vendors want long term relationship with ITC,
MUNGER.
All the vendors are aware of ITC vendors term & policies .
Some vendors think that relationship can get better with more
business & some vendors that its fulfilling relationship.
Almost all the vendors are satisfied with payment
methodology adopted by ITC, MUNGER.
Vendors want their payment in 15 to 45 days period.
None of the vendors think that ITC, MUNGER have ever made
any wrong deduction from their bill amount.
Most of vendors gave very good grade to ITC & some vendors
thinks good about the overall performance of ITC, MUNGER
regarding payment efficiency.
16. RECOMMENDATIONS
During my observation I found that in some cases bill is sent by the
vendors on time but engineering department doesn’t submit it to
commercial dept. on time that’s why delay is made so it have to be sorted
out.
Develop better interface between other functions to reduce delays.
Make an acknowledgement of the bill to the vendors when it is received.
A bill tracking register is to be made to know about the current status of
the bill.
Monthly reconciliation of document so that outstanding bills can easily
identify.
Make a separate column in score card system for those bills which is
early made on request of vendors to find out exact score.
17. VENDOR’S PAYMENT EFFICIENCY QUESTIONNAIRE
Name/Code of the vendor: ______________________________
Phone number: ______________________________ (optional)
Address: ________________________________________________________
Q1: What kind of business relationship do you intend to develop with ITC MUNGER?
a) Short term b) Long term
Q2. Have you gone through ITC organization’s brochure & vendor term & policy ?
a) yes b) No
Q3. How do you feel about the business relationship that ITC have created over the years?
a) It is a fulfilling relationship
b) It is a straining relationship
c) The relationship can get better with more business
Q4. You are providing to ITC ?
a) Good’s b) Service’s c) Both
Q5. By which method ITC pay’s your bill ?
a) Cash b) Demand Draft
c) Cheque d) Any Other
Q6. Are you satisfied with the payment methodology adopted by the ITC Ltd.?
a) Yes b) No
18. Q7. How many day’s credit period you are providing to ITC ?
a) 00-15 day’s b) 16-30 day’s
c) 31-45 day’s d) 46 and above
Q8. Do u think that ITC made your payment during your given credit period ?
a) Yes b) No
Q9. Do u think that ITC made any wrong deduction from the bill amount ?
a) Yes b) No
Q10. Do u think that ITC made any delay in making payment if all the invoice’s / good’s are correct in
number/amount ?
a) Yes b) No
Q11.Which type of grade you want to give to ITC for its performance regarding payment efficiency ?
a) Very Good b) Good
c) Satisfactory d) Dissatisfactory
Q12. Do you have any suggestions for improvement in performance of ITC regarding payment efficiency ?
If yes please specify below!
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I am thankful to you for your important suggestions and feedback .
Thanking You
.
Ankit kumar
