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INDUSTRY INTERNSHIP

PROJECT (IIP)
2018
In
Ruptub Solutions Pvt. Ltd. (Treebo Hotels)

Vishakha Agrawal

PGDM 2016-18

Under the

Guidance of

Dr. Sangita Dutta

Gupta
PROJECT REPORT

ON

“MAINTAINING OF FIXED ASSET REGISTER (FAR) TO CONDUCT PHYSICAL


VERIFICATION OF ASSET IN ORDER TO KEEP TRACK OF DETAILS OF EACH
FIXED ASSET, ENSURING CONTROL AND PREVENTING
MISAPPROPRIATION OF ASSETS.”

SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT OF

“Post Graduate Diploma in Management”


IFIM BUSINESS SCHOOL

BY

VISHAKHA AGRAWAL

UNDER THE GUIDANCE OF

EXTERNAL GUIDE INTERNAL GUIDE

Mr. Sanjay Bhadani Dr. Sangita Dutta Gupta

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CERTIFICATE

This is to certify that Ms. Vishakha Agarwal of PGDM of this


institution, has undergone a “Industry Internship Programme”
(IIP) at “Treebo Hotels” Bangalore on the topic “MAINTAINING
OF FIXED ASSET REGISTER (FAR) TO CONDUCT PHYSICAL
VERIFICATION OF ASSET IN ORDER TO KEEP TRACK OF
DETAILS OF EACH FIXED ASSET, ENSURING CONTROL AND
PREVENTING MISAPPROPRIATION OF ASSETS.” under the
guidance of Mr. Sanjay Bhadani & Dr. Sangita Dutta Gupta
towards the partial fulfillment of the award of the Post Graduate
Diploma in Management during the academic year 2016-18.

Dean - Academics
IFIM Business School

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Opposite Infosys Gate No.4, #8P & 9P, KIADB Industrial Area,
Electronic City, Phase I, Bangalore 560 100
Tel: 91-80-4143288 Fax:91-80-41432844 www.ifimbschoolcom

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Certificate from the Internal Faculty

This is to certify that “Ms. Vishakha Agrawal” of PGDM, 2016-


2018 Batch has worked under my supervision on the project
titled “Fixed Assets Register” completing it to my total
satisfaction.

Dr. Sangita Dutta Gupta


IFIM B-School, Bangalore

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Acknowledgement

It is my duty to record my sincere thanks and deep sense of


gratitude to my respected faculty Dr. Sangita Dutta Gupta for
her valuable guidance, interest and constant encouragement for
the fulfillment of this project. I would also like to thank my
internal guide Mr. Sanjay Bhadani (Finance Manager) who
helped me to complete my project on time.

I am also highly obliged to Prof. Priya Angle at IFIM B-School


who provided the required guidance/assistance to help me
complete the project on time.

Vishakha Agrawal

PGDM, 2016-18 Batch

IFIM B-School, Bangalore

www.ifimbschool.com
DECLARATION

I, Vishakha Agrawal hereby declare that the project report


entitled “MAINTAINING OF FIXED ASSET REGISTER (FAR) TO
CONDUCT PHYSICAL VERIFICATION OF ASSET IN ORDER TO
KEEP TRACK OF DETAILS OF EACH FIXED ASSET, ENSURING
CONTROL AND PREVENTING MISAPPROPRIATION OF ASSETS.”
under the guidance of Dr. Sangita Dutta Gupta submitted in
partial fulfillment of the requirements of Post Graduate Diploma
in Management (2016-18).

The project or any part of it has not been previously submitted


for any degree in this Institute or anywhere else.

Vishakha Agrawal
PGDM (2016-18)

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Contents
A-1 Description of the Internship: ........................................................................................................ 10
Title of the IIP Study: ..................................................................................................................... 10
Company ....................................................................................................................................... 10
Location......................................................................................................................................... 10
Department ................................................................................................................................... 10
Industry Mentor Details ................................................................................................................ 10
Address: ........................................................................................................................................ 10
A-2 COMPANY PROFILE ......................................................................................................................... 11
 Company Name:.................................................................................................................... 11
• Location:................................................................................................................................ 11
• Industry: ................................................................................................................................ 11
• Department:.......................................................................................................................... 11
About Treebo hotels: .................................................................................................................... 11
Key statistics about the company ................................................................................................. 12
History of model followed by the company.................................................................................. 12
Key Management Proposal: .......................................................................................................... 14
Industry: ........................................................................................................................................ 15
Annual Revenue: ........................................................................................................................... 15
No of Employees: .......................................................................................................................... 15
Why Treebo? ................................................................................................................................. 15
Swot Analysis: ............................................................................................................................... 16
Stages in transformation:.............................................................................................................. 18
Journey till date: ........................................................................................................................... 18
IIP Project Proposal ............................................................................................................................... 22
Title of the project: ....................................................................................................................... 22
About the project: ......................................................................................................................... 22
Scope of the project: ..................................................................................................................... 23
KRAs: ............................................................................................................................................. 23
Fixed Asset Register to Fixed Asset Issue Register: ...................................................................... 25
Physical Verification of Assets....................................................................................................... 26
Tagging and Labelling of Asset ...................................................................................................... 26
Objectives: .................................................................................................................................... 27

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Project Deliverables: ..................................................................................................................... 27
INVOICES ....................................................................................................................................... 27
FIXED ASSET REGISTER .................................................................................................................. 28
FIXED ASSET ISSUE REGISTER ........................................................................................................ 28
PHYSICAL VERIFICATION OF ASSETS ............................................................................................. 28
Project Impact: .............................................................................................................................. 29
Project Goals: ................................................................................................................................ 29
Problems identified: ...................................................................................................................... 29
Possible Solutions: ........................................................................................................................ 30
Challenges faced during the project: ............................................................................................ 30
My Learnings: ................................................................................................................................ 30
Experience:.................................................................................................................................... 31
References: ........................................................................................................................................... 32

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Part A — Company Profile

A-1 Description of the Internship:

Title of the IIP Study:

“MAINTAINING OF FIXED ASSET REGISTER (FAR) TO CONDUCT PHYSICAL

VERIFICATION OF ASSET IN ORDER TO KEEP TRACK OF DETAILS OF EACH

FIXED ASSET, ENSURING CONTROL AND PREVENTING MISAPPROPRIATION

OF ASSETS.”

Name of the Student: Vishakha Agrawal

Company: Ruptub Solutions Pvt. Ltd. (Treebo Hotels)

Location: Bangalore

Department: Finance

Industry Mentor Details:

 Name: CA Sanjay Bhadani

 Position in the company: Finance manager

 Mail Id: sanjay.bhadani@treebohotels.com

 Contact Number: +91 7003970560

Address: AMR Tech Park, Block 1, First Floor, 23 & 24, Hosur Main Road, Bommanahalli,

Bengaluru, Karnataka 560068

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A-2 COMPANY PROFILE

 Company Name: Ruptub Solutions Pvt. Ltd. (Treebo Hotels)

• Location: AMR Tech Park, Block 1, Bommanahalli, Bengaluru, 560068

• Industry: Hospitality industry

• Department: Finance

About Treebo hotels:

Treebo Hotels is a India's third largest hotel chain and operates in the budget segment of

the hospitality industry, which is estimated to be around $20B in size. Treebo operates on a

franchise model and emphasizes tight quality control. As of January 2018, Treebo Hotels

operates 285+ hotels in 66 Indian cities.

Treebo was founded in February 2015 by former Myntra executives Sidharth Gupta and Rahul

Chaudhary along MakeMyTrip’s Kadam Jeet Jain with the aim of providing high-quality

hospitality in the unorganized and fragmented budget segment of this industry. It is

headquartered in Bengaluru, India.

Treebo is an online marketplace for consumers to select some of the best hotels in the city of

their choice. Treebo acts as a mediator for customers who expect a certain quality and

experience. They do so by matching customer expectations with the hotel that best meets

their needs. Treebo assures clean and fresh rooms, 30 mins service promise and Assured

Essential such as free Wi-fi and breakfast on the house.

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The company offers budget hotels rooms to travelers in the Rs 1,000-3,000 price range, with

average booking rate at Rs 2,000. It currently has a network of 3,000 rooms, where it is able

to drive around a 75% occupancy rate on an average.

OYO, Fab hotel,Zo hotel are the biggest competitor of the Treebo Hotel.

Key statistics about the company

It has raised Rs 112 crore in a new funding round led by Bertelsmann India Investments

(BII) with participation of existing investors, SAIF Partners and Matrix Partners India.

Treebo, which competes with budget hotel room aggregator OYO Rooms, which is backed

by Softbank Corp and Sequoia Capital , will use the capital to quadruple its network to

12,000 rooms across 450 properties in the next 12 months.

History of model followed by the company

A combination of these factors leads to a broken experience for the guest.

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The Treebo Solution

While several players have tried various approaches to solving this problem, it was Treebo
who truly pioneered the asset light, full-inventory model in India using the trifecta of
Technology, Training and Audit. The slides below lucidly explain what Treebo does.

These online budget hotel startups swear by the full inventory model .

In a full inventory model,the operations of entire hotels are taken care by the online aggregator

which trains the entire staffs and manages the operations. investors too are falling in love with

the new business model that works on taking full control of a hotel, standardising all rooms

and services, controlling the operations and, yes, sharing a hefty slice of revenue with the

property owner as high as 40%.

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OYO and Treebo differ is that the latter works with a hotel only when it can sell full inventory

of hotel rooms while the former owns only a part of the inventory. Branded budget stay players

like OYO and Treebo aggregate smaller hotels which 10-50 rooms and put standard amenities

in rooms, like TV, air-conditioning, complimentary breakfast and WiFi.

Key Management Proposal:

Key Executives:

 Sidharth Gupta

 Rahul Chaudhary

 Kadam Jeet Jain

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Industry: Hospitality industry

 The hospitality industry is a broad category of fields within the service

industry that includes lodging, event planning, theme

parks, transportation, cruise line, and additional fields within the tourism

industry A hospitality unit such as a restaurant, hotel, or an amusement park

consists of multiple groups such as facility maintenance and direct operations

(servers, housekeepers, porters, kitchen workers, bartenders, management,

marketing, and human resources etc.).

Annual Revenue: $ $20B

No of Employees: 600+ employees

Why Treebo?

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Swot Analysis:

1. Strength: Provide a variety of hotels covering mid-market to upscale market Financial

transaction through electronic fund transfer is fast Can be started with very low investment

more affordable advertising

2. Weaknesses: Reluctance in customers to use internet for financial transactions like booking

tickets online. No direct customer-seller interaction due to this sometimes fraud data can

place in websites.

3. Opportunities: Increasing demand for budget hotels in India due to frequent travels of

officials. Utilization of internet to exploit their product, offer visibility, presence, marketing

and distribution. Affordable hotels are an ideal option for a weekend stay. Internet users

rapidly increasing. More are feeling comfortable buying through Internet exclusively

4. Threats: High competition can increase the wages of staff. Online budget hotels are forced

to give all the facilities with low prices. Hospitality experience cannot match to the existent

market leaders. Dishonest online businesses damage consumers’ confidence and faith in the

entire enterprise of Internet marketing.

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Stages in transformation:

Journey till date:

The first to implement a quality guarantee across its inventory of 7000 Rooms, 300 Hotels, and

65 cities, Treebo Hotels continues to scale greater heights by creating quality benchmarks for

partners to take note of. Treebo has once again hit a home-run by launching its latest offering

for budget customers – Treebo Select. The first of its kind in the hospitality industry, Treebo

Select will offer guests with an array of premium services and facilities falling within the price

range of INR 2,500 – INR 5,000.Presently available in Mumbai, Chennai, and Bangalore, this

offering is scheduled for a pan India launch in the near future.

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It plans to have 40-50 properties under the new umbrella over the next 12 months, said a top

official at Bengaluru-based RupTub Solutions, which owns and operates the Treebo brand.

RupTub cofounder Sidharth Gupta said the company’s big theme for 2018 is to drive a step

change in what it does to improve customer experience. “One of the very concrete parts of

that strategy is the launch of the midscale brand Treebo

Select,”

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Treebo Select is an extension of our product to offer the experience, hospitality, and services

of a 4 star, adding to the overall travel experience. We already have 10 properties under the

Select brand, some have been already launched and the rest will go live soon.” According to

Siddharth, the company aims to include about 40 properties (in top 20 Indian cities) in the

premium segment by the end of 2018.At the ‘Select’ Treebo properties, amenities such as

embellished rooms, convenient access, 24×7 room service, guest laundry service, mini fridge

etc. will be provided in addition to Treebo essentials such as air-conditioning, free WIFI,

complimentary breakfast, television (with DTH/cable connection) and branded toiletries.

Treebo is targeting the North East as their key market for business and leisure travelers travel

ling to the east, because the east for now is our highest productive circuit where occupancy is

never below 80%.

We are trying to provide branded options to travelers who look for quality at a budget, to suit

their pocket. The expansions will thus widen the scope of branded budget rooms in the country .

Treebo plans to concentrate more on social media marketing, while continuing to work closely

with Online Travel Agencies (OTAs) as and when they expand in the next two years.

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IIP Project Proposal
Title of the project:

“MAINTAINING OF FIXED ASSET REGISTER (FAR) TO CONDUCT PHYSICAL

VERIFICATION OF ASSET IN ORDER TO KEEP TRACK OF DETAILS OF EACH FIXED

ASSET, ENSURING CONTROL AND PREVENTING MISAPPROPRIATION OF ASSETS.”

About the project:

After joining the company, I was assigned to work with the FAM (Fixed Asset Management)

team of Treebo hotels, Bengaluru. I have to support the FAM team in maintaining FAR of all

the three consecutive years of Treebo Hotels. All the invoices of the last three years were to be

cross verified with the FAR maintained that if there are any discrepancies need to be resolved.

Accordingly, total number of assets is to note and need to be further physically verified so that

the tagging of the assets can be a reliable process.

Most of my work includes supporting the FAM team including IT team in maintaining FAR of

all the three consecutive years of Treebo Hotels. All the invoices of the last three years are

cross verified with the FAR maintained that if there are any discrepancies need to be resolved.

Accordingly, total number of assets is to note and need to be further physically verified so that

the tagging of the assets can be a reliable process. Treebo hotels wants to keep track of the

correct value of assets, which allows for computation of depreciation and for tax and insurance

purposes. A FAR will allow a company to keep track of fixed assets that are not under simple,

direct control of the company. This means owned and leased assets, assets under construction,

and imported assets. I assisted the Fixed Asset Management and IT team to prepare verified

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FAR and resolving the discrepancies in fixed asset issue register (FAIR) of fixed assets for the

reliable tagging of the assets.

Scope of the project:

Treebo hotels wants to keep track of the correct value of assets, which allows for

computation of depreciation and for tax and insurance purposes. The FAR will generate

accurate, complete, and customized reports that suits the needs of management. The register

shows the value of assets, date of acquisition and other details necessary to compute for

depreciation and tax purposes. Fixed assets include land, buildings, machineries and other

items used in the business and are not for sale in the ordinary course of operations. A FAR will

allow a company to keep track of fixed assets that are not under simple, direct control of the

company. This means owned and leased assets, assets under construction, and imported

assets. Any failure to maintain these records as required by the statute may entail penalty,

which may extend to imprisonment in some cases and Enterprises need to follow the AS-10

Accounting for Fixed Assets & AS-6 Depreciation Accounting.

KRAs:

INVOICES:

 Updating all the fixed assets invoices of the last three financial year in the excel sheet. I

have been executing around 60-70 invoices on the daily basis.

 Keeping records of all the invoices and updating according to the FAM team.

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 Data pulling from invoices according to the nature, quantity, category, serial number and

location.

FIXED ASSET REGISTER:

 I was supposed to classify all the assets in terms of Model, quantity, rate, value, supplier,

receipts, issues, balance, location ,serial number etc.

 Updating the date of receipt of the asset & the payment voucher reference and ensuring

that each class of assets will have a separate page in the FAR

 Finding out the invoices which are not registered as a fixed assets and capitalized.

 Follow up with the IT team for all the update regarding each assets.

 To register or correct those assets which have been missed out from previous FAR or

wrongly serialized.

FIXED ASSET ISSUE REGISTER:

 There is one folio for each staff member who has custody of an asset. I was supposed

to work with IT team and make sure of it.

 To locate the assets which are missing from FAIR according to FAR.

 To calculate the difference between the quantity registered in FAR and FAIR.

 To resolve the issue which has been located in FAR.

PHYSICAL VERIFICATION OF ASSETS:

 Conducted by an inter departmental team i.e IT team and FAM team.

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 To verify existence, condition & custody of assets.

 Physical balances compared with book balances if Variances reported have to be adjusted

in financial records before the auditor visit.

Fixed Asset Register to Fixed Asset Issue Register:

The format / details to be provided in a FAR generally depends upon the following factors:

 Nature of assets

 Moveable assets or Immoveable assets

 Cost of assets & etc.

 Location of fixed assets

Data typically captured in FAR includes:

 An asset tracking number, which is a unique identification number. The physical asset

is often marked with this identification number, either directly or with an asset tag.

 An asset description.

 The quantity of each asset .

 The manufacturer of the asset (if required) .

 The asset's serial number, which is the identification number assigned to the asset by

its manufacturer .

 Warranty coverage, which can be a simple yes/no indicator or a hyperlink to the

warranty contract.

 The asset's acquisition date.

 The acquisition cost of the asset .

 The date the asset was placed into service .

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 The asset's salvage value , useful life, which is the period over which the asset will be

depreciated , depreciation method and the current book value .

 The asset's physical location .

While the FAR is maintained according to class of assets, the FAIR is maintained according

to the staff member who holds the asset. There will be one folio for each staff member who

has custody of an asset . It will record the date of issue & return of each asset . It will bear

the signatures of the employee when he receives the asset & that of the storekeeper the

asset is returned . The register has to be periodically reconciled with the FAR. All issues in

the FAR should be reflected in the FAIR .The register helps in locating assets at the time

of physical inventory verification.

Physical Verification of Assets

It is basically conducted by an inter departmental team to verify existence, condition & custody

of assets. Physical balances are compared with book balances as per maintained in FAR and

FAIR. If any variances reported have to be adjusted in financial records after due authorisation.

It should be undertaken under the supervision of external/ internal auditors at reasonable

intervals. Surplus & shortage are equally serious & need further investigation. Should be signed

by all members of the verification team. Preferably, it should be counter signed by the auditors.

Tagging and Labelling of Asset

The process of numbering fixed assets is called tagging. An identification number (combination

of alphabets, and numbers) is written on the asset. A tag verifies the existence of assets and

their location, aids in maintenance, provides a common ground for communication between

the Accounts Department and the end-users and recording the net book value of asset in case

of sale or scrapping. Assets are labelled or tagged so that they can be easily identified & their

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ownership established. Cross referencing of financial & fixed asset records – done to avoid

payment to supplier before assets are recorded in the FAR. For internal control purposes it is

vital to reconcile the financial accounting records with fixed asset records.

Objectives:

 Resolving all the discrepancies occurred in FAR.

 Cross verifying of all the assets quantity, category, serial number from the invoices.

 Data pulling from Invoices and recorded FAR.

 Tagging and labelling all the assets.

 Keeping in track of all the assets.

Project Deliverables:

INVOICES

 Updating all the fixed assets invoices of the last three financial year in the excel sheet. I

have been executing around 60-70 invoices on the daily basis.

 Keeping records of all the invoices and updating according to the FAM team.

 Data pulling from invoices according to the nature, quantity, category, serial number and

location.

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FIXED ASSET REGISTER

 I was supposed to classify all the assets in terms of Model, quantity, rate, value, supplier,

receipts, issues, balance, location ,serial number etc.

 Updating the date of receipt of the asset & the payment voucher reference and ensuring

that each class of assets will have a separate page in the FAR

 Finding out the invoices which are not registered as a fixed assets and capitalized.

 Follow up with the IT team for all the update regarding each assets.

 To register or correct those assets which have been missed out from previous FAR or

wrongly serialized.

FIXED ASSET ISSUE REGISTER

 There is one folio for each staff member who has custody of an asset. I was supposed

to work with IT team and make sure of it.

 To locate the assets which are missing from FAIR according to FAR.

 To calculate the difference between the quantity registered in FAR and FAIR.

 To resolve the issue which has been located in FAR.

PHYSICAL VERIFICATION OF ASSETS

 Conducted by an inter departmental team i.e IT team and FAM team.

 To verify existence, condition & custody of assets .

 Physical balances compared with book balances if Variances reported have to be adjusted

in financial records before the auditor visit.

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Project Impact:

 . It will keep track of the correct value of assets, which allows for computation of

depreciation and for tax and insurance purposes.

 A FAR will allow a company to keep track of fixed assets that are not under simple,

direct control of the company. This means owned and leased assets, assets under

construction, and imported assets.

Project Goals:

 Maintenance of FAR of all the invoices till date from the date of the acquisition of the

organization.

 Resolving all the discrepancies highlighted on the registered FAR.

 Physical verification of fixed assets according to the nature, quantity, category, serial

number and location.

 Engraving the identification number on all the fixed assets i.e tagging of the assets.

 Keeping records of all the invoices and updating according to the FAM team .

Problems identified:

 Asset category column is wrongly categorized.

 Serial number error is found together with number of items.

 Many of the invoices are missing in registered FAR.

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Possible Solutions:

 Ensuring all the invoices are registered in FAR.

 Tagging of items from the very first day.

 Updating items with serial number on day to day basis.

 Avoiding re-works as much as possible.

Challenges faced during the project:

 Difficulty in adjusting to the new work life. In starting I felt a bit hard as I need to work by

moving from my comfort zone.

 The data consists of very high-Volume data.

 Needs to be an expert on multitasking

 Dealing with too many queries is difficult

 It is also lot of time consuming

My Learnings:

 Helped me in achieving my potential – Starting my career with Treebo Hotels is the first

step towards achieving my potential. It provided me with the skills, knowledge, and

confidence.

 I also learned how to work in a collaborative environment and helped me in understanding

the steps how to be carried out for the future as well.

 Learned new commands & shortcuts in MS-excel .

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 I also got to know how to work in the corporate world.

 I came to know various tools that company uses to do their work easily.

 Working in a team developed my team building strength and learned to work as a one team.

Experience:

 Young & Fun: Treebo hotel hires a lot of fresh out of college people.

That means very likely to be working with a team of 10-somethings.

People here are so smart and also easily approachable. There are team

lunches and events that take place. So although you work a lot, you can

have fun doing it.

 Comedy Trips:

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 Work-life balance: It is something which is very subjective and depends

on your priorities. But rest assured, if you deliver, your work is valued and

acknowledged. You may be physically drained and mentally frustrated but

at the end of the day, you will feel accomplished!

References:

https://www.treebo.com

https://en.wikipedia.org/wiki/Treebo_Hotels

https://www.owler.com/company/treebohotels

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