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-2007-2009
PROJECTGUIDE: SUBMITTEDBY:
Miss Reena Gaur Anoop Gautam
Asst.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)
CERTIFICATE
This is to certify that Mr.Anoop Gautam a student of MBA II Year (Sem-
III) at Om Kothari Institute of Management and Research has completed
Training Project Report entitled “A Study on Provident Fund & Pension
Scheme with reference to Instrumentation Ltd., Kota.” The project has
been completed after studying for one year in MBA course and for partially
fulfilling the requirements for award of degree of Master of Business
Administration 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 guidelines
provided.
Dr.K.C.Shringi Miss Reena Gaur
Director Academic Guide
Kota
Date:
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)
CERTIFICATE
This is to certify that Mr.Anoop Gautam a student of MBA II Year (Sem-
III) at Om Kothari Institute of Management and Research has Submitted
Training Project Report entitled “A Study on Provident Fund & Pension
Scheme with reference to Instrumentation Ltd., Kota.” The project has
been completed after studying for one year in MBA course and for partially
fulfilling the requirements for award of degree of Master of Business
Administration of Rajasthan Technical University, Kota.
The training Project Report has been evaluated and viva-voce conducted by
the undersigned panel of examiners. The project has been found satisfactory
and is recommended for acceptance.
Prof. Prof.
Internal Examiner External Examiner
Kota
Date:
5. DECLARATION
I hereby declare the present report entitled “A Study on Provident
Fund and Pension Scheme with reference to Instrumentation
Limited, Kota” is based on my original work and indebtedness to other
work/publication has been duly acknowledged at relevant places.
Submitted By:
Anoop Gautam
MBA-II (Sem-III)
(2007-2009)
OKIM&R, Kota
6. PREFACE
Management is a tool, which shapes our efforts in a systematic way to
facilitate the achievement of certain pre-determined goals.
In respect to this upcoming Management Concern, Master of Business
Administration (MBA) may be considered as stepping-stone and summer
training is an integral part of MBA Curriculum.
Realizing that practical experience is an important part of the course
curriculum for Master Degree in Business Administration, the student has to
undergo practical training for 8 weeks.
The major objective of training is to make students familiar with the
organization culture and practical work environment. Moreover it also
provides in- depth knowledge of the topic assigned.
Project Report enable the student to undertake a theoretical project in order
to study, interpret and report on one or more management problems and
situation.
As being management student I also had to undergo training project. My
Summer training at Instrumentation Limited, Kota was a memorable
experience as it allowed me to learn a lot of things in a programmatic
manner.
I have much pleasure in submitting the project report on “A Study on
Employees Provident Fund and Pension Scheme with reference to
Instrumentation Limited, Kota”
7. ACKNOWLEDGEMENT
It gives me a great pleasure in submitting this Training Project Report titled
“ A Study on Employees Provident Fund and Pension Scheme with
reference to Instrumentation Limited, Kota”
It has been made possible through the direct and indirect co-operation of
various persons to whom I wish to express my appreciation.
I express my deep gratitude to Mr.S.N.Khatri (DGM, HRD) who provided
me an insight into the working that enhanced my knowledge and with their
support and co-operation this report has taken a presentable form. I am
gratified to Mr. N.N. Pareek (DGM, F&A) who guided me and provided the
opportunity to get acquainted with the organization culture and also
supported to know the various operations of the organization.
I am indebted to my project supervisor Mr. Nitin Godha (Senior Accounts
Officer, Books and Records, F&A, Kota Unit) & Mr. L.N.Verma for
undertaking & co-ordinating this project through all its phases.
It is indeed the great pleasure to acknowledge my gratitude to My guide
Miss Reena Gaur (Faculty) for guide and support helped me through the
project preparation. This dissertation will not be complete and I to will be
failing in my work if I do not work place in the record my gratitude to our
madam who in their respective capacities as lecturer guide in my work. She
gave 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 and
encouragement.
8. EXECUTIVE SUMMARY
The Researcher has conducted his research entitled,” Study of Provident
Fund and Pension Scheme with reference to I.L., Kota.”I.L.was established
in 1964 and the commercial production started in the year 1964.The
researcher has selected this topic because He was keenly interested in
knowing and understanding the Social Security Schemes especially
Provident Fund and Pension Scheme.
I.L.is a Government of India enterprise with an annual turnover for the year
2006-2007 is Rs.21998.32 lakhs and today it is offering cutting-edge
technologies based on turnkey solutions.
It is set-up with the prime objective of attaining self-reliance in the field of
control and automation for process industry. Today IL is offering turnkey
solutions based on cutting- edge technologies and unparalleled domain
expertise 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 Facilities
accredited with ISO 9002 series quality system certification are located at
Kota 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’s
operations and practices confirm to ISO 9002.
IL Limited believes and practice commitment towards achieving excellence
in Quality, Export and Consumer Satisfaction. With vast and rich experience
in Project Management and expertise in installation & commissioning IL
also entered in the area of EPC contracts for Offshore/Marine
Instrumentation jobs. IL also entered in the area of Networking, ERP, IT
Software Solutions and E-Governance related jobs.
IL has successfully executed offshore instrumentation jobs received from
ONGC and is currently executing a number of such ONGC jobs. IL, after
establishing itself as an undisputed leader has crossed the Indian borders to
supply equipment on turnkey basis in international markets.
9. Provident Fund and Pension Schemes are Social Security Schemes. Social
Security means anything done for the comfort and improvement, intellectual
and social well being of the employees over and above the wages paid.
Provident Fund involves contribution of both employer and employee and in
I.L. Employees who are the members of the Provident Fund are also
members of pension scheme. These measures enable employees and his
family to lead a comfortable life and face financial hardships.
Provident Fund and Pension Schemes are Social Security Measures
undertaken keeping in view the footer of industrial workers after their
retirement or for their dependants in case of death in early age.
Provident Fund is a Social Security Scheme in which compulsory
contribution of both the employer and employee is necessary. The objective
behind this scheme was to provide some relief and benefits either to the
employee after their retirement or to his dependants in case of his death.
In IL 12% contribution of employer is necessary and employee can
contribute upto 80%
I.L has its own trust named “Instrumentation Limited Provident Trust”.
It is recognized by Provident Fund commissioner of Rajasthan and also by
commissioner of Income Tax.
The Regional Commissioner centrally controls this trust.
Government of India gave authority to IL to make its own fund, make
investments to that fund, action loan to their employees etc but according to
the rules and regulations laid down by central government.
A part of salary is paid to the employees and remaining is paid in
installments as per convenience of the company.
The Trust also sanction loan to the employees of IL out of he amount of
Provident Fund contribution collected from the employees and that amount
is totally non-refundable i.e. loan taken from the employees is not taken
back and that is deducted from the amount of Provident Fund received from
employees and the interest is payable on the balance amount remaining in
the 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 a
couple of years of decade service, the accumulation in the provident fund at
the credit of such employee would be too meager and the family would be
deriving little benefit from the fund.
The Government gave the matter a serious thinking to find out the ways and
means by which the future interests of a family in distress can be
safeguarded after the earning member makes an exit before he reaches the
age of retirement.
An Employee’s Pension Fund has been created for this purpose by diverting
a portion of the employer’s contributions to the Provident Fund.
11. CONTENTS
CERTIFICATE I
DECLARATION II
PREFACE III
ACKNOWLEDGEMENT IV
EXECUTIVE SUMMARY V
CHAPTERS: - 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
14. INTRODUCTION OF I.L
Instrumentation Limited (I.L.) is a Government of India Enterprise
established in the year 1964,for the purpose of entering to the requirement of
process 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 system
certification are located at Kota & Palakkad (Kerala). Two units, namely,
Marketing and Projects look after sales and projects through a network of
branch and regional offices spread all over the country. Rajasthan
Electronics & Instruments Ltd. (REIL), Jaipur is a subsidiary of IL & its
manufacturing & suppling allied Dairy Equipments,Non-Conventional
Energy Devices and Electronic Energy Meters.Reil’s operations and
practices confirm to ISO 9002 standards.
Kota plant was set up in technical and financial collaboration with the USSR
and it commenced commercial production in the year 1968.As a part of its
continued efforts for modernization & standards, the company has
internationally renewed manufacturers process control instruments.
The second unit of the company was established in Palghat for the
manufacture of control valves & allied items for which technology are
provided by a leading Japanese Firm viz. Yamatake Honeywell Co. Ltd.the
unit commenced production in December 1975 & has significantly
contributed 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 has
mastered all complexities of control system requirements and can lead you
right through your project, from system design, detailed engineering,
manufacturing, testing, system, integration, installation, final commissioning
to after sales services and customer training.
I.L. has supplied instruments on turnkey basis for 2 Thermal Power Stations
in Malaysia, established a service center at Kufa complex in Iraq, supplied
15. instruments to Ethiopia Petroleum Company of Euthopia… Like this the list
goes on.
I.L.quality policy is to ensure satisfaction to customers by providing quality
products and services of national/international quality standards.
In order to keep pace with advancements in modern technology particularly
in the field of instrumentation where the obsolescence rate is high & quick
& to indigence’s the manufacture of spares, components & total system, the
company has from its inception been giving due importance to Research &
Development activities.
Today, the corporate R&D center of the company is an independent wing
like other units of the company with its own proto-type development shops,
various labs. & Other amenities, manned by well-qualified technical
personnel & headed by Addl. General Manager.
BOARD OF DIRECTORS OF I.L.
Sh.Ramanand Chairman Cum Managing Director
Sh.Gopal Singh Director
Sh. Amitabh Mandloi Director
Dr. 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
UNIT
MARKETING
UNIT REGIONAL &
SITE OFFICES
EXPORT
DIVISON REIL
BRANCH
OFFICES
CORPORATE
F&A
CORPORATE
P&A
CORPORATE
R&
CHAIRMAN-
17. PERFORMANCE HIGHLIGHTS
During the year 2006-2007,the company made all efforts for improvement of
performance. With continued support of the government and all other
stakeholders, the company has achieved highest ever turnover of Rs.21998
lakhs, as compared to turnover of Rs.17585 lakhs in 2005-2006.
The company has been successful in achieving multifold increase in
operating profit. in the year 2006-2007 the company has an operating profit
of Rs.1305 lakhs as compared to operating profit of Rs.1092 lakhs only in
the previous year.
Net loss for the year 2006-2007 was Rs.2451 lakhs as compared to loss of
Rs.1698 lakhs in the last financial year.
EXPORTS
During the year under review the company achieved an export tunover of
Rs. 312.77 lakhs including deemed exports. The company’s physical exports
during the year 2006-07 have been worth Rs.21.92 lakhs to countries like
Uganda, 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, Voluntary
Retirement Scheme was reintroduced in the company during 2006-2007. A
total of 9 employees have taken VRS during 2006-07 and total number of
employees who have sought VRS upto 31st March 2007 stood at 2276.
CORPORATE GOVERNANCE
I.L. believes that good Corporate Governance is essential to achieve long-
term corporate goals and to enhance stakeholder’s value. Models of
Corporate Governance code are many and different environments will need
specific solutions to meet the demands of legal compliances and regulations.
However, there is a universal principle, which percolates through the
elements of governance, this calls for the affairs of the company to be
regulated in the manner that is transparent, ethical and accountable.
In this pursuit, your company is committed to transparency in all it’s dealing
with its shareholders and others and others and to provide high quality
products and services to its customers and places uncompromising emphasis
on integrity and regulatory compliances. The basic philosophy of your
company has been to achieve business excellence, to enhance shareholders
value, 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 SERVICES
The company has achieved a turnover of Rs. 21998 lakhs during the
previous year 2004-2005. The unit-wise contribution towards the company’s
turnover 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 2171.48
Note: - The entire amount in the above table is in lakhs.
20. PRODUCT OF I.L
The company has developed very good product mix. Details of main
products 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 LIMITED
The I.L. has its own servicing department where faults of instruments
manufactured by the company are removed. For this purpose customer
training courses are designed to meet the needs of instruments.
A company’s future depends upon the customers; in today’s world customer
is the king. Its very important for the companies too not only provides them
with what they want but also to assist them time-to-time.
Each and every branch of I.L. has its own service departments, heads by
service engineers and also supported by central service department at the
head quarters.
When I.L. takes up a project, it is not just the schemes and systems of the
instrumentation but rendering of all updated technology, innovative thinking
and 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 Limited
e) 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 Works
g)FERTILIZERS
1. SPIC, Tuticorn
2. Shriram Fertilizer, Kota
h) CEMENT
1.Chetinad Cements
2.Rasi Cements
i) ATOMIC ENERGY
1.Khammam Chemicals Refinery
2.Deptt. Of Atomic Energy (Dae)
j) MINERALS AND METALS
1.Graphite India Ltd.
2.Hindustan Zinc Limited
k) PAPER
1.Andhra Paper Mills (A.P.)
2.Mysore Paper Mills
l) PHARMACEUTICALS
1.Hindustan Antibiotics Ltd
2.Indian Drugs And Pharmaceuticals Ltd.Rishikesh
m) TEXTILES
1.Modipon
26. 2.Grasim Industries
n) 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, Trivandrum
p) RAILWAY SIGNALING
1.Western Railway
2.RITES
q) DEFENCE PRODUCTS
1.ARDE, Pune
2.DRDL, Hyderabad
r) TELECOM EXCHANGES AND ACCESSORIES
1.Haryana Telecom Circle
2.Orissa Telecom Circle
s) OTHERS
1.BSNL
2.Citi Bank
3.Bank Of Baroda
27. PRESENT STATUS OF I.L
Due to delay in implementation of section Revival Scheme, I.L. has incurred
additional cash losses and suffered badly interims of business due to acute
shortage of working capital.
The company has therefore, submitted a proposal for consideration to the
administrative ministry. The administrative ministry, that is, department of
heavy 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 its
manufacturing capacity, infractrutre, manpower, and over-come the working
shortage.
Funds for V.R.S. will ensure realization of manpower. Reimbursement of
additional cash losses will enable the company in meeting out the working
capital 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.
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 FUND
According to Provident Fund Act, 1952, presently,
Contribution of Employer is 12% of Basic Pay + Dearness Allowance
Contribution of Employee is also 12% of Basic Pay + Dearness Allowance
IN INSTRUMENTATION LIMITED:
Contribution of Employer is 12% of Basic pay + Dearness Allowance
Contribution of employee (voluntary)
Upto 80% of Basic Pay + Dearness Allowance
Minimum: -12% of Basic Pay + Dearness Allowance
But in I.L. all the members to the Provident Fund (whether on
contact/regular/casual, even peon) contributes to the Provident Fund.
The reason behind this type of contribution by employees in I.L.is they are
not paid full monthly salary because it is a sick unit
FOR EXAMPLE: -
Suppose salary of an employee is Rs.20000 per month. But he will be paid
Rs.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 without
any interest.
Therefore, the employees of I.L.prefer to contribute upto 80% of their Basic
Pay + Dearness Allowance towards Provident Fund at an interest rate or
8.5% per month keeping in mind the concept of present value, according to
which the present value of a rupee to be received in future is less than one or
the worth of a rupee tomorrow will be more than what it is today. This is
because the money has alternative uses. The rupee available at present can
be invested either in other projects or it can be deposited in a bank at certain
rate of interest.
EMPLOYEES PROVIDENT FUND OF
INSTRUMENTATION LIMITED
I.L has its own trust named “Instrumentation Limited Employees
Provident Fund Trust”. It is recognized by Provident Fund Commissioner
of Rajasthan and also by Commissioner of Income Tax.
The Regional Commissioner centrally controls this trust.
TYPES OF TRUST:
• Uncovered
• Exempted
• Unexpected
TRUST OF I.L. IS EXEMPTED:
Government of India gave authority to IL to make its own fund, make
investments to that fund, action loan to their employees etc but according to
the 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. Peon
These Board of Trustees are concerned with all the task
Related to Employee’s Provident Fund and Pension Scheme of I.L.
According to section 7(q) of the Provident Fund Act 1952,the trust is
entitled to charge interest @ of 12% per day from the company in case of
delay 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
establishment
EXTENT 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. CONTRIBUTIONS
The act lays down that both the employer and employees shall
contribute towards the fund.
EMPLOYER’S CONTRIBUTION
The 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 Allowance
A part of contribution is remitted to the Pension Fund and the
remaining balance continues to remain in Provident Fund Account.
Where, the pay of an employee exceeds Rs 6500 p.m.the contribution
payable to pension fund shall be limited to the amount payable on his
pay of Rs 6500 only. However, the employees may voluntarily opt for
the employer’s share of contributions on wages beyond the limit
Rs.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 the
nearest 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 Concession
allowed 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 EMPLOYEES
Another advantage made available to the employees of I.L. is that they can
take 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 slip
Loan For purchase of plot
24 months basic salary + dearness allowance
Formalities: -
• 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 employee
should have completed a tenure of 5 years in service for the sanction of
house loan.
In other organization the legal formalities involved with the sectioning of
the loan are much more than what is in I.L.
In I.L. Negligible formalities are required to be fulfilled by the
employees for sanctioning loan to them.
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) CUSTOMER
o 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 STUDY
1. 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.
45. DEFINITION OF RESEARCH
Research in common parlance refers to a search for knowledge. It is a
scientific 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 RESEARCH
There 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 used
as a guide in collecting and analyzing the data. It is blueprint that is followed
in 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 COLLECTION
The task of data collection beings after a research problem has been defined
and research design/ plan chalked out. While deciding about the method of
data collection to be used for study, the researcher should keep in mind two
types 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 also
may 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 the
brochures of I.L.
LIMITATIONS OF THE STUDY:-
1. DIFFICULTY IN DATA COLLECTION: -
A great of problem
is faced during data collection (secondary) due to the improper record
keeping 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.
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 a
couple of years of decade service, the accumulation in the provident fund at
the credit of such employee would be too meager and the family would be
deriving little benefit from the fund.
The Government gave the matter a serious thinking to find out the ways and
means by which the future interests of a family in distress can be
safeguarded after the earning member makes an exit before he reaches the
age of retirement.
51. Thus in order to make an adequate provision for the future of an industrial
worker after he retires or for his dependants in case of his premature death, a
scheme was under active consideration of the government for many years.
During the course of study of the issue it was found that some industrially
advanced countries already had similar schemes to look after the destitute
families in absence of the earning member
A scheme to provide long-term financial security and protection to the
dependants of the workers in the event of their untimely death was required
in the country. By passing legislation in the shape of Employee’s Pension
Scheme Government has taken a praise-worthy step, which will be a
landmark in the history of industrial workers welfare.
An Employee’s Pension Fund has been created for this purpose by diverting
a 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.1200
Pension @ 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 which
interest @ 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, he
is 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.1400
In case of death of an employee – Rs.2021
APPOINTMENT OF NOMINEE IN CASE OF DEATH
In case of death, the Nominee Appointed by the deceased employee
becomes 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 25
years become entitled to receive pension.
In case of death
½ of the pension to remaining
2 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 2006
Interpretation: -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 year2004-2005
there has been major decline due to increased frequency of
VRS,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 2006
Interpretation: -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 6
Interpretation:-Although Membership in Provident Fund has declined
during previous years yet contribution towards Provident Fund has increased
from year 2004 onwards due to the increase in Provident Fund Contribution
Rate.
d) PENSION SCHEME IN I.L.
56. Year Amount in
pension
scheme
2002-2003 15244052
2003-2004 14066706
2004-2005 14062848
2005-2006 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 2006
Interpretation:-
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 Pension
Fund of the Employees.
57. From year 2005-2006 onwards 8.33% of 6500 is transferred to
Pension Fund of Employees.
Therefore, there has been increase in Pension Contribution of Employees as
compared to previous year due to the increase in amount from 5000 to 6500.
Chapter: -6
FINDINGS
AND
CONCLUSION
58. FINIDINGS
As I.L. is having its own Fund and so they have their own procedure of
making payment of Provident Fund and Pension Scheme. Based on this, the
findings 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. CONCLUSION
1) 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.
61. RECOMMENDATIONS
The Employees Provident Fund And Pension Scheme is the Schemes for
the benefit of the industrial workers, under social Security Measures. It is
expected that under these schemes the industrial workers and the dependant
family members should sufficiently benefited at the time of financial
hardship. But because of certain drawbacks in the implementation of the Act
the following measures are suggested to the Government for the
improvement 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.
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)
65. QUESTIONARE
1. 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 Low
6. What is the source of material purchased for production?
Local Indigenous
Imported All
7. Which mode of payment is used for purchase/ sale?
66. Letter of credit Advance
Sight payment All
8. What are the major products made by I.L.?
Electronics Gas Analyser
Telecom exchange others
9. How much demand is there in the market for our product?
Excellent Moderate
Less Very Less
10.Who is the major Competitors in India for our product?
TATA Siemens
Others
11.What is our product’s market position?
Good Moderate
67. Poor Cannot say
12.What type of quality of material is used in production?
High Better
Moderate Low
13.Can you comment on the procurement policy adopted in I.L.?
Yes No
