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  • 1. Instrumentation Limited
  • 2. A SUMMER TRAINING PROJECT REPORT ON A Study on Employee Provident Fund and Pension Scheme With reference To Instrumentation Limited, Kota. Submitted in partial fulfillment of the requirement for the award of the Of Master of Business Administration From Rajasthan Technical University, Kota (Raj.) Academic Session-2007-2009PROJECTGUIDE: SUBMITTEDBY:Miss Reena Gaur Anoop GautamAsst.Professor MBA-II(Sem-III)OKIM&R, Kota OKIM&R, Kota A-1, Special I.P.I.A. Jhalawar Road, Kota-324005 (: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.com
  • 3. OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH (Affiliated to Rajasthan Technical University, Kota, Approved by All India Council for Technical Education-Government of India and Sponsored by Om Kothari Foundation, Kota) CERTIFICATEThis is to certify that Mr.Anoop Gautam a student of MBA II Year (Sem-III) at Om Kothari Institute of Management and Research has completedTraining Project Report entitled “A Study on Provident Fund & PensionScheme with reference to Instrumentation Ltd., Kota.” The project hasbeen completed after studying for one year in MBA course and for partiallyfulfilling the requirements for award of degree of Master of BusinessAdministration of Rajasthan Technical University, Kota.The Training Project Report has been completed under the guidance of“Miss Reena Gaur” of OKIMR and is as per norms and guidelinesprovided.Dr.K.C.Shringi Miss Reena GaurDirector Academic GuideKotaDate:
  • 4. OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH (Affiliated to Rajasthan Technical University, Kota, Approved by All India Council for Technical Education-Government of India and Sponsored by Om Kothari Foundation, Kota) CERTIFICATEThis is to certify that Mr.Anoop Gautam a student of MBA II Year (Sem-III) at Om Kothari Institute of Management and Research has SubmittedTraining Project Report entitled “A Study on Provident Fund & PensionScheme with reference to Instrumentation Ltd., Kota.” The project hasbeen completed after studying for one year in MBA course and for partiallyfulfilling the requirements for award of degree of Master of BusinessAdministration of Rajasthan Technical University, Kota.The training Project Report has been evaluated and viva-voce conducted bythe undersigned panel of examiners. The project has been found satisfactoryand is recommended for acceptance.Prof. Prof.Internal Examiner External ExaminerKotaDate:
  • 5. DECLARATIONI hereby declare the present report entitled “A Study on ProvidentFund and Pension Scheme with reference to InstrumentationLimited, Kota” is based on my original work and indebtedness to otherwork/publication has been duly acknowledged at relevant places. Submitted By: Anoop Gautam MBA-II (Sem-III) (2007-2009) OKIM&R, Kota
  • 6. PREFACEManagement is a tool, which shapes our efforts in a systematic way tofacilitate the achievement of certain pre-determined goals.In respect to this upcoming Management Concern, Master of BusinessAdministration (MBA) may be considered as stepping-stone and summertraining is an integral part of MBA Curriculum.Realizing that practical experience is an important part of the coursecurriculum for Master Degree in Business Administration, the student has toundergo practical training for 8 weeks.The major objective of training is to make students familiar with theorganization culture and practical work environment. Moreover it alsoprovides in- depth knowledge of the topic assigned.Project Report enable the student to undertake a theoretical project in orderto study, interpret and report on one or more management problems andsituation.As being management student I also had to undergo training project. MySummer training at Instrumentation Limited, Kota was a memorableexperience as it allowed me to learn a lot of things in a programmaticmanner.I have much pleasure in submitting the project report on “A Study onEmployees Provident Fund and Pension Scheme with reference toInstrumentation Limited, Kota”
  • 7. ACKNOWLEDGEMENTIt gives me a great pleasure in submitting this Training Project Report titled“ A Study on Employees Provident Fund and Pension Scheme withreference to Instrumentation Limited, Kota”It has been made possible through the direct and indirect co-operation ofvarious persons to whom I wish to express my appreciation.I express my deep gratitude to Mr.S.N.Khatri (DGM, HRD) who providedme an insight into the working that enhanced my knowledge and with theirsupport and co-operation this report has taken a presentable form. I amgratified to Mr. N.N. Pareek (DGM, F&A) who guided me and provided theopportunity to get acquainted with the organization culture and alsosupported to know the various operations of the organization.I am indebted to my project supervisor Mr. Nitin Godha (Senior AccountsOfficer, Books and Records, F&A, Kota Unit) & Mr. L.N.Verma forundertaking & co-ordinating this project through all its phases.It is indeed the great pleasure to acknowledge my gratitude to My guideMiss Reena Gaur (Faculty) for guide and support helped me through theproject preparation. This dissertation will not be complete and I to will befailing in my work if I do not work place in the record my gratitude to ourmadam who in their respective capacities as lecturer guide in my work. Shegave me invaluable suggestion and timely advice.Sincerest thanks to our Director Sir Mr. K.C. Shringi (Director,OKIM&R) who has provided us with invaluable direction andencouragement.
  • 8. EXECUTIVE SUMMARYThe Researcher has conducted his research entitled,” Study of ProvidentFund and Pension Scheme with reference to I.L., Kota.”I.L.was establishedin 1964 and the commercial production started in the year 1964.Theresearcher has selected this topic because He was keenly interested inknowing and understanding the Social Security Schemes especiallyProvident Fund and Pension Scheme.I.L.is a Government of India enterprise with an annual turnover for the year2006-2007 is Rs.21998.32 lakhs and today it is offering cutting-edgetechnologies based on turnkey solutions.It is set-up with the prime objective of attaining self-reliance in the field ofcontrol and automation for process industry. Today IL is offering turnkeysolutions based on cutting- edge technologies and unparalleled domainexpertise for control & automation of various sectors of the industry viz.Power, Cement, Steel, Nuclear, Fertilizer, Chemical, Petrochemical,Refineries, Textile, Space, Oil and Gas.I.L.has its registered and corporate office at Kota. Manufacturing Facilitiesaccredited with ISO 9002 series quality system certification are located atKota and Palakkad (Kerala). Rajasthan Electronic and Instruments Limited(REIL) Jaipur, is a subsidiary of IL and is supplying allied dairy equipment,non-conventional energy devices and electronic energy meters. REIL’soperations and practices confirm to ISO 9002.IL Limited believes and practice commitment towards achieving excellencein Quality, Export and Consumer Satisfaction. With vast and rich experiencein Project Management and expertise in installation & commissioning ILalso entered in the area of EPC contracts for Offshore/MarineInstrumentation jobs. IL also entered in the area of Networking, ERP, ITSoftware Solutions and E-Governance related jobs.IL has successfully executed offshore instrumentation jobs received fromONGC and is currently executing a number of such ONGC jobs. IL, afterestablishing itself as an undisputed leader has crossed the Indian borders tosupply equipment on turnkey basis in international markets.
  • 9. Provident Fund and Pension Schemes are Social Security Schemes. SocialSecurity means anything done for the comfort and improvement, intellectualand social well being of the employees over and above the wages paid.Provident Fund involves contribution of both employer and employee and inI.L. Employees who are the members of the Provident Fund are alsomembers of pension scheme. These measures enable employees and hisfamily to lead a comfortable life and face financial hardships.Provident Fund and Pension Schemes are Social Security Measuresundertaken keeping in view the footer of industrial workers after theirretirement or for their dependants in case of death in early age.Provident Fund is a Social Security Scheme in which compulsorycontribution of both the employer and employee is necessary. The objectivebehind this scheme was to provide some relief and benefits either to theemployee after their retirement or to his dependants in case of his death.In IL 12% contribution of employer is necessary and employee cancontribute upto 80%I.L has its own trust named “Instrumentation Limited Provident Trust”.It is recognized by Provident Fund commissioner of Rajasthan and also bycommissioner of Income Tax.The Regional Commissioner centrally controls this trust.Government of India gave authority to IL to make its own fund, makeinvestments to that fund, action loan to their employees etc but according tothe rules and regulations laid down by central government.A part of salary is paid to the employees and remaining is paid ininstallments as per convenience of the company.The Trust also sanction loan to the employees of IL out of he amount ofProvident Fund contribution collected from the employees and that amountis totally non-refundable i.e. loan taken from the employees is not takenback and that is deducted from the amount of Provident Fund received fromemployees and the interest is payable on the balance amount remaining inthe provident fund account.
  • 10. Although Provident Fund is an effective Old Age and Survivorship Benefit,but in a case where death of employee is at early age, say after putting in acouple of years of decade service, the accumulation in the provident fund atthe credit of such employee would be too meager and the family would bederiving little benefit from the fund.The Government gave the matter a serious thinking to find out the ways andmeans by which the future interests of a family in distress can besafeguarded after the earning member makes an exit before he reaches theage of retirement.An Employee’s Pension Fund has been created for this purpose by divertinga portion of the employer’s contributions to the Provident Fund.
  • 11. CONTENTSCERTIFICATE IDECLARATION IIPREFACE IIIACKNOWLEDGEMENT IVEXECUTIVE SUMMARY VCHAPTERS: - PAGE NO. 1. COMPANY PROFILE 1-16 2. CONCEPTUAL FRAMEWORK 17-27 3. OBJECTIVES OF THE STUDY 28-29 4. RESEARCH METHODOLOGY 30-33 5. DATA ANALYSIS 34-41 6. FINDINGS &CONCLUSION 42-43 7. RECOMMENDATIONS 43-44 • BIBLIOGRAPHY
  • 12. CHAPTER: -1COMPANY PROFILE
  • 13. ADMINISTRATIVE OFFICE OF I.L.
  • 14. INTRODUCTION OF I.LInstrumentation Limited (I.L.) is a Government of India Enterpriseestablished in the year 1964,for the purpose of entering to the requirement ofprocess control Instrumentation in Thermal Power Station, Steel Plants,Nuclear, Fertilizer, Chemical, Textile, Paper, Space, Cement, Refineries,Oil & Gas etc.I.L.has its Registered and Corporate Office at Kota (Rajasthan).Manufacturing facilities accredited with ISO 9000 series quality systemcertification are located at Kota & Palakkad (Kerala). Two units, namely,Marketing and Projects look after sales and projects through a network ofbranch and regional offices spread all over the country. RajasthanElectronics & Instruments Ltd. (REIL), Jaipur is a subsidiary of IL & itsmanufacturing & suppling allied Dairy Equipments,Non-ConventionalEnergy Devices and Electronic Energy Meters.Reil’s operations andpractices confirm to ISO 9002 standards.Kota plant was set up in technical and financial collaboration with the USSRand it commenced commercial production in the year 1968.As a part of itscontinued efforts for modernization & standards, the company hasinternationally renewed manufacturers process control instruments.The second unit of the company was established in Palghat for themanufacture of control valves & allied items for which technology areprovided by a leading Japanese Firm viz. Yamatake Honeywell Co. Ltd.theunit commenced production in December 1975 & has significantlycontributed to overall growth of the company’s financial results, its well-established mechanical shops & other manufactures.With nearly 4 decades of experience & a dedicated workforce, I.L hasmastered all complexities of control system requirements and can lead youright through your project, from system design, detailed engineering,manufacturing, testing, system, integration, installation, final commissioningto after sales services and customer training.I.L. has supplied instruments on turnkey basis for 2 Thermal Power Stationsin Malaysia, established a service center at Kufa complex in Iraq, supplied
  • 15. instruments to Ethiopia Petroleum Company of Euthopia… Like this the listgoes on.I.L.quality policy is to ensure satisfaction to customers by providing qualityproducts and services of national/international quality standards.In order to keep pace with advancements in modern technology particularlyin the field of instrumentation where the obsolescence rate is high & quick& to indigence’s the manufacture of spares, components & total system, thecompany has from its inception been giving due importance to Research &Development activities.Today, the corporate R&D center of the company is an independent winglike other units of the company with its own proto-type development shops,various labs. & Other amenities, manned by well-qualified technicalpersonnel & headed by Addl. General Manager. BOARD OF DIRECTORS OF I.L.Sh.Ramanand Chairman Cum Managing DirectorSh.Gopal Singh DirectorSh. Amitabh Mandloi DirectorDr. Vinay Mohan Director (Finance)Sh. V.S. Ranka Director (Production)Sh. A.K. Shringi Company Secretary & Addl. General Manager (F&A)Auditors: M/s C M Birla & Company (Statutory Auditors) M/s Mahadevan & Sivaranjan, CAS, Palakkad (Branch Auditors)Bankers: State Bank of Bikaner & Jaipur State Bank of India State Bank of Travancore The Bank of Rajasthan Ltd.Registered Office: Jhalawar Road, Kota 324005(Rajasthan)
  • 16. ORGANIZATION STRUCTURE OF I.L. BOARD OF DIRECTORS CHAIRMAN-CUM-MANAGING DIRECTOR COMPANY SECRETARY BUSINESS ACQUISITION PROCUREMENT MANUFACTURING GROUP FACILITIES PROJECTS CUSTOMER CP KOTA PALAKKAD DDC UNIT SERVICES & UNIT UNIT IT SUBSIDIARY UNITMARKETING UNIT REGIONAL & SITE OFFICES EXPORT DIVISON REILBRANCHOFFICES CORPORATE F&A CORPORATE P&A CORPORATE R& CHAIRMAN-
  • 17. PERFORMANCE HIGHLIGHTSDuring the year 2006-2007,the company made all efforts for improvement ofperformance. With continued support of the government and all otherstakeholders, the company has achieved highest ever turnover of Rs.21998lakhs, as compared to turnover of Rs.17585 lakhs in 2005-2006.The company has been successful in achieving multifold increase inoperating profit. in the year 2006-2007 the company has an operating profitof Rs.1305 lakhs as compared to operating profit of Rs.1092 lakhs only inthe previous year.Net loss for the year 2006-2007 was Rs.2451 lakhs as compared to loss ofRs.1698 lakhs in the last financial year. EXPORTSDuring the year under review the company achieved an export tunover ofRs. 312.77 lakhs including deemed exports. The company’s physical exportsduring the year 2006-07 have been worth Rs.21.92 lakhs to countries likeUganda, Sri-Lanka, Taiwan, Indonesia, and Malaysia etc. MAJOR ORDERS EXECUTED DURING THE YEAR a) Supply of 3573 telecom systems to various circles of BSNL amounting to over Rs.34 crores. b) Supplies to Chandrapur Tps(R&M of unit no.2) have been completed. c) Supplies to Ropar-I Tps of Pseb completed. d) Supplies to Coal Injection Project Of Durgapur Steel Plant completed e) Supplies to coal dust injection project of Bhilai Steel Plant.
  • 18. f) First solid interlocking system commissioned at Samalaya Rly Station, Vadodara Divn. g) Executed higher size Butterfly Valves worth Rs.2 crores for Giral project of Rvunl. VOLUNTARY RETIREMENT SCHEME (VRS)Based on the department of public enterprise’s guidelines, VoluntaryRetirement Scheme was reintroduced in the company during 2006-2007. Atotal of 9 employees have taken VRS during 2006-07 and total number ofemployees who have sought VRS upto 31st March 2007 stood at 2276. CORPORATE GOVERNANCEI.L. believes that good Corporate Governance is essential to achieve long-term corporate goals and to enhance stakeholder’s value. Models ofCorporate Governance code are many and different environments will needspecific solutions to meet the demands of legal compliances and regulations.However, there is a universal principle, which percolates through theelements of governance, this calls for the affairs of the company to beregulated in the manner that is transparent, ethical and accountable.In this pursuit, your company is committed to transparency in all it’s dealingwith its shareholders and others and others and to provide high qualityproducts and services to its customers and places uncompromising emphasison integrity and regulatory compliances. The basic philosophy of yourcompany has been to achieve business excellence, to enhance shareholdersvalue, keeping in view the needs and interest of shareholders.
  • 19. OPERATING RESULT S.No. Particulars 2006-2007 2005-2006 1.) A) Turnover 21998.3 17585.20 B) Other 2 1694.26 Revenue 1655.90 2.) Expenditure on 13533.3 9985.52 material 7 6.) Depriciation,interest& 3333.60 2457.45 social obligations etc 7.) Profit/(loss) before tax (2028.68) (1365.71) 8.) Provision for taxation - - 9.) Prove. For fringe 55.0 - benefit tax 10.) Profit/(loss) after tax (2083.68) (1365.71) 11.) Prior period, deferred (367.17) (332.10) revenue & other adjustment net credit/ (debit) 12.) Net profit/(loss) (2450.84) (1697.81)Note: - The entire amount in the above table is in lakhs. SALES AND SERVICESThe company has achieved a turnover of Rs. 21998 lakhs during theprevious year 2004-2005. The unit-wise contribution towards the company’sturnover is indicated below: - S.No. Unit 2006-07 2005-06 1.) Kota unit 4539.54 4494.90 2.) P-DDC unit 9093.01 5956.04 3.) Palakkad unit 5974.50 4962.78 4.) Marketing unit 2391.27 2171.48Note: - The entire amount in the above table is in lakhs.
  • 20. PRODUCT OF I.LThe company has developed very good product mix. Details of mainproducts being manufactured in different units are given below: - PRODUCT FROM KOTA UNIT This is the oldest unit. Main products from this main unit are; - 1. Annunciators 2. Gas Analysis and Pollution Monitoring Instruments 3. Microprocessor Based Controller and Recorder 4. Electronic Transmittor 5. Telecom Circuits 6. Pneumatic Instruments and Transmittor Panel 7. Railway Signaling System 8. Modern Distributed Digital Control System 9. Power and Process Simulator PRODUCT FROM JAIPUR UNIT 1. Electronic Milk Tester 2. Uninterruptible Power Supply System 3. Digital Electronic Switching System PRODUCT FROM PHALGHAT UNIT 1. Tank Level Gauging System 2. Control Valves 3. Valve Stand for Steel Melting Shop 4. Low Noise Valves
  • 21. 5. Pneumatic Control Drives 6. Control Valves for High Pressure Drop 7. Special Below Sealed valves for Nuclear Service 8. Safety Relief Valves 9. Electrical Actuator 10.Large Size Soft Seated Butterfly Valves SERVICES OF INSTRUMENTATION LIMITEDThe I.L. has its own servicing department where faults of instrumentsmanufactured by the company are removed. For this purpose customertraining courses are designed to meet the needs of instruments.A company’s future depends upon the customers; in today’s world customeris the king. Its very important for the companies too not only provides themwith what they want but also to assist them time-to-time.Each and every branch of I.L. has its own service departments, heads byservice engineers and also supported by central service department at thehead quarters.When I.L. takes up a project, it is not just the schemes and systems of theinstrumentation but rendering of all updated technology, innovative thinkingand professional experience.I.L. provides the following services to his customers: - • Documentation • Research and Development • Customer Training • Installation and Commissioning • Routine Checks and Repairs • After Sale Services
  • 22. MAJOR SUPPLIERS • Exide India (Calcutta) • Fuji (Japan) • R.S. Components (Mumbai) • Taylor India • Andhra Paper Mills • ABB (Bangalore) • Jema (Spain) • Gamatronic (Israel) • Vinit Implex (Mumbai) • Automatic Electric (Mumbai) • Havells India (Noida) • Finolex Cables (Mumbai) IMPORTANT MILESTONES ACHIEVED• 1964-Established With Registered Office At Kota• 1968-C & I Production Commenced• 1975-Control Valves Production Commenced at Palghat• 1982-Special Temperature Sensor For Nuclear Plant• 1985-Railway Signaling• 1987-Digital Electronics Production Commenced• 1988-Major Diversification In Tele-Communication• 1991-Diversification In Ups Power Electronics• 1995-Diversificaton In Water Treatment Automation• 1998-Diversification In Defence Products• 1999-Productin Of Nose Fuse (Defence Order)• 2000-Production Of Firing Device (Defence Order)• 2002-Production Of Large Size Telephone Exchanges• 2003-Production Of Special Solenoid Valves For NuclearApplication (Defence Order)
  • 23. SOME OTHER ACHIEVEMENTS AND AWARDS• I.L. is An ISO-9002 Company Certified• Development Of Sophisticated Noise Fuse For Defense Project Which Required Very High Mechanical Engineering Skill• Secured Telecom Orders In The Year 2004 Worth Rs.56 Cores In Comparison To Rs. 30 Crores During Previous Year.• International Export Award• Top Export Award• National Safety Award• Pollution Control Award LICENSERS AND BUSINESS ASSOCIATES OF I.L• Segault, France• Fuji electric co., Japan• Yamatake corporation, Japan• ABB utilities, gmbh, Germany• Hf controls corpn, USA• Gamatronics ind.ltd,. Israel• C-Dot, India• Matzo Automation, USA• Jema, Spain• Nuovo Pignone, Italy• L.Bernard.,France• Ifs, Sweden• Kiekens Bv., Holland• Rockwell Automation India Ltd.• Kyosan Electric Co., Japan
  • 24. CUSTOMERS OF INSTRUMENTATION LIMITED a) POWER 1. National Electricity Board (Neb), Malaysia 2. Bharat Heavy Electrical Limited (BHEL) 3. Damodar Valley Corporations (DVC) 4. Delhi Electricity Supply Undertaking (DESU) b) STEEL 1. Esfahan Steel Plant, Iran 2. Steel Authority Of India Limited, Alloy Steel Plant, Durgapur 3. Steel Authority Of India Limited, Bokaro Steel Plant 4. Steel Authority Of India Limited, Durgapur Steel Plant c) REFINERIES 1. Madras Refineries Limited 2. Cochin Refineries Limited 3. Bharat Petroleum Corporation Limited, Mumbai 4. Hindustan Petroleum Corporation Limited, Vishakhapatnam d) OIL AND NATURAL GAS 1. Oil And Natural Gas Commission 2. Gas Authority Of India Limitede) PETRO CHEMICALS 1. Indian Petro Chemicals Corporation Limited 2. Bath Heavy Electricals Limited, Trichy f) CHEMICALS 1. Gujarat Alkalis And Chemicals Limited, Baroda
  • 25. 2. King Chemicals 3. Tata Chemicals 4. DCM Chemicals Worksg)FERTILIZERS 1. SPIC, Tuticorn 2. Shriram Fertilizer, Kotah) CEMENT 1.Chetinad Cements 2.Rasi Cementsi) ATOMIC ENERGY 1.Khammam Chemicals Refinery 2.Deptt. Of Atomic Energy (Dae)j) MINERALS AND METALS 1.Graphite India Ltd. 2.Hindustan Zinc Limitedk) PAPER 1.Andhra Paper Mills (A.P.) 2.Mysore Paper Millsl) PHARMACEUTICALS 1.Hindustan Antibiotics Ltd 2.Indian Drugs And Pharmaceuticals Ltd.Rishikeshm) TEXTILES 1.Modipon
  • 26. 2.Grasim Industriesn) SUGAR 1.Gangavati Sugar Ltd. 2.Daurala Sugar Works (U.P)o) SPACE 1.Indian Space Research Organization, SHAR Center, Sriharikota (A.P) 2.Vikram Sarabhai Space Center, Trivandrump) RAILWAY SIGNALING 1.Western Railway 2.RITESq) DEFENCE PRODUCTS 1.ARDE, Pune 2.DRDL, Hyderabadr) TELECOM EXCHANGES AND ACCESSORIES 1.Haryana Telecom Circle 2.Orissa Telecom Circles) OTHERS 1.BSNL 2.Citi Bank 3.Bank Of Baroda
  • 27. PRESENT STATUS OF I.LDue to delay in implementation of section Revival Scheme, I.L. has incurredadditional cash losses and suffered badly interims of business due to acuteshortage of working capital.The company has therefore, submitted a proposal for consideration to theadministrative ministry. The administrative ministry, that is, department ofheavy industry, has been kind enough to consider the proposal for: - 1. Reservation of order by UPRVUNL (Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd.) 2. Government guarantees for raising funds from banks/financial institution for reimbursement of additional cash losses. 3. For VRS.The committee of ministers has recommended for consideration by cabinet.The cabinet approval for the proposal will enable the company to utilize itsmanufacturing capacity, infractrutre, manpower, and over-come the workingshortage.Funds for V.R.S. will ensure realization of manpower. Reimbursement ofadditional cash losses will enable the company in meeting out the workingcapital deficit.
  • 28. FUTURE OF I.L.The future vision of the company has better in years to come. 1. The sanction of Revival Scheme is in its third year of implementation. Joint venture formation of Palghat unit is at advance stage. Qualified interested parties have completed due diligence activity. Integration of Jaipur unit at Kota unit has taken place successfully. 2. The sanctioning of Revival Schemes envisages liquidation of substantial portion of liabilities out of the proceeds as loan from sale of surplus land has taken place successfully. 3. The company has also undertaken various measures for further improvement in its working such as reduction in cost, reduction in salary and wages through right sizing of manpower, closure of unviable sites, sale of land & building etc. At Sitapura & Malviya Nagar at Jaipur. 4. Improvement in working capital management. 5. The company is also pursuing actively the plans for introduction of new products to ensure optimum utilization of existing facilities. 6. With the implementation of Revival Package & Restructuring Business of the company with assured from BSNL,NTPC,BHELetc. In next few years we can hope that the company can come back to high profitability.
  • 29. Chapter: -2Conceptual Framework
  • 30. PROVIDENT FUND It is a non-security fund and it is the form of saving. There are mainly four types of provident fund- statutory provident fund, recognized provident fund, unrecognized provident fund and public provident fund.1. STATUTORY PROVIDENT FUND: - Statutory provident fund was set up in 1925. Government, semi-Government organizations, Local authorities, railways, Universities and Educational Institutions, maintain this fund. In statutory provident fund, contribution from the employer is exempt from tax. Deduction under section 80C of employee’s contribution is available to the interest credited to the provident fund which is exempt from tax and the lump sum amount which is paid at the time of retirement is also exempt from tax.2. RECOGNISED PROVIDENT FUND: - Recognized provident fund is referred in this manner because it is recognized by the Commissioner of Income Tax according to the rules of the Income Tax Act. When the commissioner of Income Tax recognizes this fund, it becomes recognized also by the provident fund commissioner. Recognized provident fund is also contributed to in the same way as statutory provident fund, i.e. both by the employer and the employee. Contribution of employer & employee & interest are also exempt but upto a certain limit.3. UNRECOGNISED PROVIDENT FUND: - Unrecognized provident fund is Taxable when the employer contributes to it but relief under section 80 is not available to the investor. The interest which is credited to this account is, however, Taxable and the payment which is received in respect of the employee’s own contribution at the time of retirement is also taxable.
  • 31. 4. PUBLIC PROVIDENT FUND:- In public provident fund ,the employer does not contributes amount. It is a fund provided for non- salaried people to mobilize personal savings. Any person from the public, whether salaried or self-employed, can open a public provident fund Account at any branch of the state bank of India. In this fund the employer does not contribute, but relief under section 80 is available and the interest credited to this fund is exempt from tax. The amount received at the timed termination of this contract is also exempt from tax. CONTRIBUTION OF EMPLOYER’S AND EMPLOYEE’S TOWARDS PROVIDENT FUNDAccording to Provident Fund Act, 1952, presently,Contribution of Employer is 12% of Basic Pay + Dearness AllowanceContribution of Employee is also 12% of Basic Pay + Dearness AllowanceIN INSTRUMENTATION LIMITED:Contribution of Employer is 12% of Basic pay + Dearness AllowanceContribution of employee (voluntary)Upto 80% of Basic Pay + Dearness AllowanceMinimum: -12% of Basic Pay + Dearness AllowanceBut in I.L. all the members to the Provident Fund (whether oncontact/regular/casual, even peon) contributes to the Provident Fund.The reason behind this type of contribution by employees in I.L.is they arenot paid full monthly salary because it is a sick unitFOR EXAMPLE: -Suppose salary of an employee is Rs.20000 per month. But he will be paidRs.5000 in that month to the maximum extent and the balance will be paid
  • 32. to him in installments according to the convenience of the company withoutany interest.Therefore, the employees of I.L.prefer to contribute upto 80% of their BasicPay + Dearness Allowance towards Provident Fund at an interest rate or8.5% per month keeping in mind the concept of present value, according towhich the present value of a rupee to be received in future is less than one orthe worth of a rupee tomorrow will be more than what it is today. This isbecause the money has alternative uses. The rupee available at present canbe invested either in other projects or it can be deposited in a bank at certainrate of interest. EMPLOYEES PROVIDENT FUND OF INSTRUMENTATION LIMITEDI.L has its own trust named “Instrumentation Limited EmployeesProvident Fund Trust”. It is recognized by Provident Fund Commissionerof Rajasthan and also by Commissioner of Income Tax.The Regional Commissioner centrally controls this trust.TYPES OF TRUST: • Uncovered • Exempted • UnexpectedTRUST OF I.L. IS EXEMPTED: Government of India gave authority to IL to make its own fund, makeinvestments to that fund, action loan to their employees etc but according tothe rules and regulations laid down by Central Government.
  • 33. BOARD OF TRUSTEES OF I.L. Board of Trustees, having a term, of five years, manages this trust  Board of Trustees of I.L includes 12 members in all.  6 members are from Management Side, which includes: - 1. Chairman Mr.V.S. Ranka Director 2. Secretary Mr.L.N. Verma Sr.PersonnelOfficer(ss cell) 3. Member Mr. Rajeev Bhel D.G.M (F&A) 4. Member Mr. Rajeev Kumar D.G.M. (P-DDC) 5. Member Mr.S.N. Gupta DGM (Tech) 6. Member Mr.Ashutosh Saxena Senior Personnel Officer  6 members are from Labour Union Side, which includes: - • 4 members of Worker’s Union • 2 members of Supervisor Association 1. Member Mr. Sharma Foreman (e) 2. Member Mr.Harish Sharma Senior foreman (e) 3. Member Mr.Jagdish Suman IH (fitting) 4. Member Mr.Rasool Ahmed IH (carp.) 5. Member Mr.Banku Mandal IH (welding) 6. Member Mr.Rafique Mohd. PeonThese Board of Trustees are concerned with all the taskRelated to Employee’s Provident Fund and Pension Scheme of I.L.According to section 7(q) of the Provident Fund Act 1952,the trust isentitled to charge interest @ of 12% per day from the company in case ofdelay in payment of Provident Fund made by the company.
  • 34. HISTORY AND OBJECTS OF PROVIDENT FUND AND PENSION SCHEME The Employee’s Provident Fund & Miscellaneous Provisions Act, 1952 instituted a Compulsory Contributory Fund for the future of the employee after his retirement or for his dependents in case of his early death. In Welfare State like India the responsibility lies upon the state to provide for some legislation whereby the workers working in factories or other establishments may get some financial assistance in old age. Such measures are common features in industrially advanced countries. But due to various difficulties particularly financial and administrative, the state could not enact a law, which could provide some measure of financial security to workers in his old age, or their families or dependents after death. A way out was found and a Contributory Provident Fund Scheme was conceived in which both employer and employee would contribute and the funds so raised could be depended upon to held the worker in old age. The first legislative measure in India to cover industrial workers was the Coal Mines Provident Fund & Bonus Act, 1984.the legislation was designed to make adequate provisions for the future of labor in coal mines, to inculcate in them a habit of thrift and to stabilize the labor force in the coal mining industry. As a result of the experience gained out of working of the coal mines Provident Fund Schemes and because of the persistent demand made of the central government for extending similar benefits to workers employed in other industries the employees Provident Fund Act was passed in 1952. The object of the act is to provide for the institution of Provident Fund & Family Pension And Deposit Linked Insurance Scheme for employees in factories and other establishments. The provisions have been made for the better future of the industrial workers on
  • 35. his retirement and for dependents in case of his death while in establishmentEXTENT AND APPLICATION OF PROVIDENT FUND AND PENSION SCHEME The act extends to the whole of India except the State of Jammu and Kashmir. Subject to the provisions of sec 16,the act applies to: - Every Establishment which is a factory engaged in any industry manufacturing: -cement, cigarattes, electricals or general engineering products iron and steel, paper, textile, mathes, edible oils, fats, sugar, rubber, electricity, tea, painting, glass, stonewares, pipes, sanitary wares, electrical porcelain, insulators, tiles, heavy and fine chemicals, indigo, lac, non-edible vegetables and animal oils and fats, mica, plywood, fruits, & vegetable preservation, confectionary etc. 1. Every Establishment, which has 20 or more persons employed in it. 2. Any other Establishments employing 20 or more persons, which the Central Government may by notification in the Official Gazette, specify in this behalf. However, the Central Government may after giving not less than two months notice of his intention so to do, by notification in the Official Gazette, apply the provisions of this act to any establishment employing less than 20 persons.
  • 36. CONTRIBUTIONSThe act lays down that both the employer and employees shallcontribute towards the fund. EMPLOYER’S CONTRIBUTIONThe employer is required to contribute tee following amounts: - 1) Towards Employee’s Provident Fund and Pension Fund In case of establishments employing less than 20 persons or a sick unit or any establishment in the Jute, Beedi, Coir or Gum Industry 10% of the basic pay, Dearness Allowance in case of all other establishments employing 20 or more persons 12% of wages and Dearness AllowanceA part of contribution is remitted to the Pension Fund and theremaining balance continues to remain in Provident Fund Account.Where, the pay of an employee exceeds Rs 6500 p.m.the contributionpayable to pension fund shall be limited to the amount payable on hispay of Rs 6500 only. However, the employees may voluntarily opt forthe employer’s share of contributions on wages beyond the limitRs.6500 to be credited to the Pension Fund.Where the amount of any contribution involves a fraction of a rupee,the scheme may provide for the rounding off of such fractions to thenearest rupee, half of a rupee, quarter of a rupee.For the purposes of the contribution to Provident Fund u/s 6,Dearness Allowance shall include cash value of any Food Concessionallowed to the employer of any factory of other establishment during
  • 37. any period,in which the establishment is not working,for retaining his service. The contribution in respect of employer and employees is to be paid in first instance by the employer. The employer is under a duty to pay both his & the employees share of the contribution irrespective of whether a demand has been made on him or not. The employer shall, in turn deduct the employee’s share from wages due to him. It is thus the employer who has to bear the ultimate liability of contributions. EMPLOYEES PENSION SCHEME Under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 an Employees Family Pension Scheme, 1971 has been drafted. This scheme applies to employees of all factories and other establishments to which the act applies and came into force on 1st March 1971. This scheme applies to every employee who becomes a member of employees provident fund on or after 1st march 1979 and continues to be a member until he becomes entitled to withdraw the benefits to which he is entitled under the scheme or dies whichever is earlier. The Central Government may, by notification in the official gazette, frame a scheme to be called employees pension scheme for the purpose of providing for: - Superannuating Pension, Retiring Pension, Or Permanent Total Disablement Pension to the employees of any establishment or class of establishment to which this act applies; and Widow or Widower’s Pension, Children Pension Or Orphan Pension payable to the beneficiaries of such employees
  • 38. CONTRIBUTION TOWARDS PENSION  Such sum from employee’s contribution u/s 6,not exceeding 8.33% of basic pay, dearness allowance, retaining allowance if any, of concerned employee, as may be specified in pension scheme. On establishment of Pension Fund, the Family Pension shall cease to operate & all assets of ceased scheme shall vest in and shall stand transferred to, and all liabilities under the ceased scheme, shall be enforceable against the pension fund. The beneficiaries under the ceased scheme shall be entitled to draw the benefits, not less than benefits they were entitled to under the ceased scheme, from Pension Fund. The Pension Fund shall vest in and be administered by the Central Board in such manner as may be specified in Pension Scheme. LOAN SANCTIONED TO THE EMPLOYEESAnother advantage made available to the employees of I.L. is that they cantake loans from Provident Fund Trust of the company. Types of loans Refundable Non-Refundable
  • 39. 1. REFUNDABLE: - The refundable loan involves re-payment of the whole amount of the loan sanctioned to the employees in installments with interest @ 1% higher then the interest rate paid to the employees on the amount of Provident Fund. 2. NON- REFUNDABLE: - The amount withdrawn by the employees is deducted from the balance remaining to the Provident Fund account of the Employees. Presently in I.L. Procedure of Non-Refundable Loan is followed and reduction in the balance of provident fund encouraged the employees to contribute 70%-80% towards provident fund. In a financial year, trust is entitled to sanction loan for 3 times to the members. 1) 2 times for social obligation (marriage, engagement, birth, any other occasion)Amount of loan sanctioned for social obligation =9 months basic salary +dearness allowance Formalities: - Submission of loan application In case of Marriage of a dependant child; 18 months basic pay =dearness allowance Formalities: -submission of loan application with marriage card attached to it. Note: -Loan is sanctioned out of employee’s contribution only. 2) 1 time for purchase of house/plot/construction of house. For purchase of house/construction of house 36 months basic salary + dearness allowance
  • 40. Formalities: - • Title/ownership deed • Blue Print • Estimate • Copy of salary slipLoan For purchase of plot24 months basic salary + dearness allowanceFormalities: - • Agreement copy of purchase of house/proof of advance submitted to the seller • Proof of ownership of seller.Note: -Loan is granted out of employer and employee’s contribution.Condition: -Time lag between 2 loans is 90 days and also employeeshould have completed a tenure of 5 years in service for the sanction ofhouse loan.In other organization the legal formalities involved with the sectioning ofthe loan are much more than what is in I.L.In I.L. Negligible formalities are required to be fulfilled by theemployees for sanctioning loan to them.
  • 41. Chapter: -3OBJECTIVES OF THE STUDY
  • 42. OBJECTIVES OF I.L. 1) BUSINESS♦ To re-evaluate the corporate plan for higher growth & dividend objective♦ To further increase its contribution in the company’s value of production & profitability.♦ To maintain 10% annual growth in the turnover of the company excluding the bought out items.♦ To undertake financial restructuring of the company to be more competitive.♦ To endeavor to achieve reasonable return on investments. 2) PRODUCTIVITY Higher capacity utilization & generation of internal recourses♦ To realize greater operational efficiency improved productivity.♦ To ensure optimum utilization of all the facilities in manufacturing division.♦ To ensure optimum utilization of all the facilities♦ Created for manufacture of railway signaling System 3) CUSTOMERo To achieve & maintain high degree of customer satisfaction With timely delivery.o To provide better after sale services. 4) EMPLOYEES  To achieve level of safety standards.  To achieve continuous increase in value addition per employee.
  • 43. OBJECTIVES OF THE STUDY1. To study the pattern of membership in Provident Fund and Pension Scheme in I.L.2. To study the contribution made by employer as well as employee towards Provident Fund And Pension in I.L.3. To find out the benefits of P.F. and Pension derived by employees in I.L.4. To find out the weaknesses in implementation of Pension Scheme in I.L.5. To study the requirement of other Social Security Schemes in I.L.
  • 44. Chapter: -4 RESEARCHMETHODOLOGY
  • 45. DEFINITION OF RESEARCHResearch in common parlance refers to a search for knowledge. It is ascientific and systematic search for pertinent information on a specific topic.“Research may be defined as a systematized effort to gain new knowledge.” -Redman and Moray PROCESS OF RESEARCH Problem Identification and definition Research Design (a) Type of Research (b) Unit Identification (c) Sampling Data collection Data Analysis and representation Interpretation of the result Suggestation
  • 46. TYPES OF RESEARCHThere are various types of research like: - 1) Descriptive v/s analytical 2) Applied v/s fundamental 3) Quantitative v/s qualitative 4) Conceptual v/s empirical RESEARCH DESIGN “A research design is simply the framework or plan for a study that is usedas a guide in collecting and analyzing the data. It is blueprint that is followedin completing a study.”TYPES OF RESEARCH: • Descriptive Research: Descriptive studies, as their name implies, are designed to describe something- for example, the characteristics of users of a given product; the degree to which product use varies with income, age or other characteristics. DATA COLLECTIONThe task of data collection beings after a research problem has been defined and research design/ plan chalked out. While deciding about the method ofdata collection to be used for study, the researcher should keep in mind twotypes of data.
  • 47. There are two types of data • Primary data • Secondary data COLLECTION OF PRIMARY DATA It is collected afresh and for the first time, thus happen to be original in character. Primary data is collection of data through questionnaire, interview method, observation method, etc. In my research I opted for questionnaire method. Questionnaire was filled by Finance Department and Procurement Division. WAY OF PRIMARY DATA COLLECTION: 1. Observation Method 2. Interview method 3. Questionnaires 4. Schedules etc. COLLECTION OF SECONDARY DATA These are those data which have been already collected by someone else and which have already been passed through the statistical process. When the researcher utilizes secondary data, than he has to look into various sources from where they can obtain them. Secondary data may either be published data or unpublished data. Published data are available – 1. Newspapers and Journals 2. Market Reports 3. Government Publications 4. Book Magazines 5. International Publications etc.
  • 48. Un Published data are available –Dairies, letters, unpublished biographies and autobiographies and alsomay be available with scholars and research workers, trade associations,labour bureaus and other public/ private individuals and organizations. Secondary data was collected through annual reports and thebrochures of I.L.LIMITATIONS OF THE STUDY:-1. DIFFICULTY IN DATA COLLECTION: - A great of problemis faced during data collection (secondary) due to the improper recordkeeping by the employees of I.L.2.LACK OF CO-OPERATION OF EMPLOYEES: - General co-operation of the employee is to be achieved in the organization is one of the major limitations of the project.3.TIME CONSTRAINT: - The most glaring of any constraints is the short time from within which a certain objective has to be achieved.4.RESTRICTED STUDY: - Research is based on the study of data restricted from year 2002 to 2006.
  • 49. Chapter: -5DATA ANALYSIS
  • 50. INVESTMENTS OF THE AMOUNT OF PROVIDENT FUND % of investment Securities 1) central government 25% securities 30% 2) state government securities 15% 3) bonds of 30% public sector bank 4)investment in any of the above securities EMPLOYEE’S PENSION SCHEME IN I.L.Although Provident Fund is an effective old age and survivorship benefit,but in a case where death of employee is at early age, say after putting in acouple of years of decade service, the accumulation in the provident fund atthe credit of such employee would be too meager and the family would bederiving little benefit from the fund.The Government gave the matter a serious thinking to find out the ways andmeans by which the future interests of a family in distress can besafeguarded after the earning member makes an exit before he reaches theage of retirement.
  • 51. Thus in order to make an adequate provision for the future of an industrialworker after he retires or for his dependants in case of his premature death, ascheme was under active consideration of the government for many years.During the course of study of the issue it was found that some industriallyadvanced countries already had similar schemes to look after the destitutefamilies in absence of the earning memberA scheme to provide long-term financial security and protection to thedependants of the workers in the event of their untimely death was requiredin the country. By passing legislation in the shape of Employee’s PensionScheme Government has taken a praise-worthy step, which will be alandmark in the history of industrial workers welfare.An Employee’s Pension Fund has been created for this purpose by divertinga portion of the employer’s contributions to the provident fund.For example: -Suppose the salary of an employee is Rs.10000 per month.Employer’s contribution @ 12% of Rs.10000 i.e. Rs.1200Pension @ 8.33% is charged on maximum limit of rs.6500 i.e. Rs.541.Rs.541 are transferred to employee’s pension fund and remaining 659(1200-541) remains in the employee’s provident fund account on whichinterest @ 8.5% per month is payable to employees. RULES GOVERNING PENSION IN I.L.  In the other Central Government & State Government Organizations it is necessary for an employee to remain in service for 10-15 years in order to become eligible to receive Pension but in I.L. no such condition applies. As soon as an employee (casual, contract or regular) becomes member of Employees Provident Fund he also becomes member of employees Pension Fund and is entitled to receive Pension even if die after rendering 1 month service.  An employee becomes entitld to receive pension only after rendering 10 years service or on attaining 58 years age, whichever is earlier.
  • 52.  If an employee dies even after rendering 1 month service is entitled to receive pension. Here no clause of rendering 10 years service and attaining 58 years age applies.  If an employee dies after rendering 10 years service without drawing any withdrawal benefit, he is entitled to receive pension with the consent of employer.Note: -If an employee leave job without drawing any withdrawal benefit, heis not entitled to receive pension.MAXIMUM PENSION: -Pension limit is decided on the basis of 2 criteria’s:-On attaining he age of 58 years -- Rs.1400In case of death of an employee – Rs.2021 APPOINTMENT OF NOMINEE IN CASE OF DEATHIn case of death, the Nominee Appointed by the deceased employeebecomes entitled to receive pension.If an employee is unmarried then parents are appointed as nominee.If an employee is married then his wife and 2 children upto the age of 25years become entitled to receive pension. In case of death½ of the pension to remaining2 children (upto 25 years age) ½ of the pension
  • 53. DATA ANALYSIS AND INTERPRETATION (a) MEMBERSHIP OF EMPLOYEES PROVIDENT FUND IN I.L. Year Members 2002-2003 5730 2003-2004 5534 2004-2005 2921 2005-2006 2911 MEMBERSHIP OF EMPLOYEES PROVIDENT FUND IN I.L. 7000 6000 5000 4000 MEMBERS 3000 2000 1000 0 2002- 2003- 2004- 2005- 2003 2004 2005 2006Interpretation: -Pattern of decline in membership in comparison to previous year is as follows: - 2003.2004--- 3.4% 2004.2005--- 47.22% 2005.2006--- .34%There has been continuous decline in membership. But in the year2004-2005there has been major decline due to increased frequency ofVRS,Resignations,Retirement & Death b) MEMBERSHIP OF EMPLOYEES PENSION SCHEME
  • 54. IN I.L. Year Members 2002-2003 2821 2003-2004 2659 2004-2005 2756 2005-2006 2740 MEMBERSHIP OF EMPLOYEES PENSION SCHEME 2950 2900 2850 2800 2750 MEMBERS 2700 2650 2600 2550 2500 2002- 2003- 2004- 2005- 2003 2004 2005 2006Interpretation: -Membership of employees as compared to previous year: declined in 2003-2004 by 8.02% Slightly increased in 2004-2005 by 3.65% Negligibly declined in 2005-2006 by .58%.
  • 55. c) CONTRIBUTION TO EMPLOYEES PROVIDENT FUND Year Employee’s Employer’s Total Contribution contribution 2002-2003 369556952 174021568 543578520 2003-2004 353803846 156383944 510187790 2004-2005 395199747 162436185 557635932 2005-2006 439992792 176363909 616356701 CONTRIBUTION TO EMOLPYEES PROVIDENT FUND 500000000 450000000 400000000 350000000 YEAR 300000000 2002-2003 250000000 2003-2004 200000000 2004-2005 150000000 2005-2006 100000000 50000000 0 1 2 3 4 5 6Interpretation:-Although Membership in Provident Fund has declinedduring previous years yet contribution towards Provident Fund has increasedfrom year 2004 onwards due to the increase in Provident Fund ContributionRate. d) PENSION SCHEME IN I.L.
  • 56. Year Amount in pension scheme2002-2003 152440522003-2004 140667062004-2005 140628482005-2006 14138149 AMOUNT IN PENSION SCHEME IN I.L. 18000000 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 YEAR 2002- 2003- 2004- 2005- 2003 2004 2005 2006Interpretation:- In the year 2002-2003 amount of Pensions is more because no.of employees is more. Then there has been continuous decline in pension amount as compared to previous year in the following way: - In year 2003-2004 --- by 7.72% In year 2004-2005 --- by .027% In year 2005-2006 --- by .54% (increase) Up to year 2004-2005 8.33% of 5000 was transferred to PensionFund of the Employees.
  • 57. From year 2005-2006 onwards 8.33% of 6500 is transferred toPension Fund of Employees.Therefore, there has been increase in Pension Contribution of Employees ascompared to previous year due to the increase in amount from 5000 to 6500. Chapter: -6FINDINGS AND CONCLUSION
  • 58. FINIDINGSAs I.L. is having its own Fund and so they have their own procedure ofmaking payment of Provident Fund and Pension Scheme. Based on this, thefindings are as follows:- 1. The Membership of Employees in Provident Fund in I.L. has continuously declined due to the Voluntary Retirement Scheme (VRS.) adopted by employees of I.L 2. The Membership in Employees Pension Scheme has declined in the recent years in comparison to year 2002-2003 due to the V.R.S. adopted by employees of I.L 3. The contribution of members have reduced in the year 2003-2004 as compared to year 2002-2003 but increased in years viz. 2004-2005 and 2005-2006 inspite of the reduction in membership due to the increased % of contribution by members. 4. Amount in Pension Scheme has shown a decreasing trend due to the reduction in number of employees due to VRS
  • 59. CONCLUSION1) Employees Provident Fund and Pension Scheme are much more helpful for the industrial workers at the time when his source of income is stopped, simultaneously the scheme provides monetary benefits to the nominee/heirs of an employee in the event of his death while in service.2) Legal Formalities are involved at the time of joining of membership in Provident Fund And Pension Scheme with regard to the appointment of nominee who would be entitled to receive the amount of pension at the time of the death of the earning member of the family.3) After independence, the Government has introduced a number of schemes in this regard but proper implementation is not done due to lack of funds.4) Apart from the Employees Provident Fund And Pension Scheme, other Welfare Measures have been introduced by the Government but they are not properly implemented due to lack of adequate funds with I.L.
  • 60. Chapter-7RECOMMENDATIONS
  • 61. RECOMMENDATIONS The Employees Provident Fund And Pension Scheme is the Schemes forthe benefit of the industrial workers, under social Security Measures. It isexpected that under these schemes the industrial workers and the dependantfamily members should sufficiently benefited at the time of financialhardship. But because of certain drawbacks in the implementation of the Actthe following measures are suggested to the Government for theimprovement in the working of the scheme: - 1. Looking at the inflationary pressure, the Employer’s Contribution to the Provident Fund should be increased. 2. The Employees/Workers should be made aware of the nomination forms to be filled at the time joining the organization. 3. Super-Annuation Scheme should also be made compulsory for all industrial workers to supplement the monetary benefits at the time of retirement of an employee. 4. Old Age Pension Scheme may be introduced so that the employees may not face any financial hardship, at the time when his source of income is stopped. 5. The difference in the opinion prevailing in the mind of Central Government regarding interest paid to the employees in Provident Fund should be resolved.
  • 62. BIBLIOGRAPHY
  • 63. BIBLIOGRAPHY• C.R. Kothari (Research Methodology, Methods And Techniques)• K.D.Shrivastava (Provident Fund And Miscellaneous Act, 1952)• I I M B Management Review (For Literature Review)• Secondary Data (Provided By Company)
  • 64. ANNEXURES
  • 65. QUESTIONARE1. Name of the employee : …………………………2. Name of the organization : …………………………3. Address of the employee : …………………………4. Designation : …………………………5. What about the price level of the material procured? High better Moderate Low6. What is the source of material purchased for production? Local Indigenous Imported All7. Which mode of payment is used for purchase/ sale?
  • 66. Letter of credit Advance Sight payment All8. What are the major products made by I.L.? Electronics Gas Analyser Telecom exchange others9. How much demand is there in the market for our product? Excellent Moderate Less Very Less10.Who is the major Competitors in India for our product? TATA Siemens Others11.What is our product’s market position? Good Moderate
  • 67. Poor Cannot say12.What type of quality of material is used in production? High Better Moderate Low13.Can you comment on the procurement policy adopted in I.L.? Yes No