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A
SUMMER TRAINING PROJECT REPORT
ON
A Study on Employee Provident Fund and Pension Scheme
With reference
To
Instrumentation Limited, Kota.
PROJECTGUIDE: SUBMITTEDBY:
Miss Reena Gaur Anoop Gautam
Asst.Professor MBA-II(Sem-III)
OKIM&R, Kota OKIM&R, Kota
CERTIFICATE
The Training Project Report has been completed under the guidance of
“Miss Reena Gaur” of OKIMR and is as per norms and guidelines
provided.
Kota
Date:
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
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:
DECLARATION
Submitted By:
Anoop Gautam
MBA-II (Sem-III)
(2007-2009)
OKIM&R, Kota
PREFACE
It has been made possible through the direct and indirect co-operation of
various persons to whom I wish to express my appreciation.
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.
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 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.
CONTENTS
CERTIFICATE I
DECLARATION II
PREFACE III
ACKNOWLEDGEMENT IV
EXECUTIVE SUMMARY V
7. RECOMMENDATIONS 43-44
• BIBLIOGRAPHY
CHAPTER: -1
COMPANY PROFILE
ADMINISTRATIVE OFFICE OF I.L.
INTRODUCTION OF I.L
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.
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
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.
BOARD OF DIRECTORS
CHAIRMAN-CUM-MANAGING DIRECTOR
COMPANY
SECRETARY
EXPORT
DIVISON REIL
BRANCH
OFFICES
CORPORATE
F&A
CORPORATE
P&A
CORPORATE
R&
CHAIRMAN-
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.
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.
CORPORATE GOVERNANCE
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: -
The company has developed very good product mix. Details of main
products being manufactured in different units are given below: -
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
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.
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.
• Documentation
• Research and Development
• Customer Training
• Installation and Commissioning
• Routine Checks and Repairs
• After Sale Services
MAJOR SUPPLIERS
• 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
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
c) REFINERIES
e) PETRO CHEMICALS
f) CHEMICALS
g)FERTILIZERS
1. SPIC, Tuticorn
2. Shriram Fertilizer, Kota
h) CEMENT
1.Chetinad Cements
2.Rasi Cements
i) ATOMIC ENERGY
k) PAPER
l) PHARMACEUTICALS
m) TEXTILES
1.Modipon
2.Grasim Industries
n) SUGAR
o) SPACE
p) RAILWAY SIGNALING
1.Western Railway
2.RITES
q) DEFENCE PRODUCTS
1.ARDE, Pune
2.DRDL, Hyderabad
s) OTHERS
1.BSNL
2.Citi Bank
3.Bank Of Baroda
PRESENT STATUS OF I.L
Conceptual Framework
PROVIDENT FUND
IN INSTRUMENTATION LIMITED:
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
to him in installments according to the convenience of the company without
any interest.
TYPES OF TRUST:
• Uncovered
• Exempted
• Unexpected
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 act extends to the whole of India except the State of Jammu and
Kashmir.
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.
CONTRIBUTIONS
The act lays down that both the employer and employees shall
contribute towards the fund.
EMPLOYER’S CONTRIBUTION
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
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.
1. NON- REFUNDABLE: -
OBJECTIVES OF
THE
STUDY
OBJECTIVES OF I.L.
1) BUSINESS
2) PRODUCTIVITY
3) CUSTOMER
o To achieve & maintain high degree of customer satisfaction
With timely delivery.
o To provide better after sale services.
4) EMPLOYEES
RESEARCH
METHODOLOGY
DEFINITION OF RESEARCH
PROCESS OF RESEARCH
Research Design
(a) Type of Research
(b) Unit Identification
(c) Sampling
Data collection
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:
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.
There are two types of data
• Primary data
• Secondary 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.
1. Observation Method
2. Interview method
3. Questionnaires
4. Schedules etc.
A great of problem
is faced during data collection (secondary) due to the improper record
keeping by the employees of I.L.
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: -
4.RESTRICTED STUDY: -
DATA ANALYSIS
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
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.
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: -
Note: -If an employee leave job without drawing any withdrawal benefit, he
is not entitled to receive pension.
MAXIMUM PENSION: -
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
Year Members
2002-2003 5730
2003-2004 5534
2004-2005 2921
2005-2006 2911
6000
5000
4000
MEMBERS
3000
2000
1000
0
2002- 2003- 2004- 2005-
2003 2004 2005 2006
Year Members
2002-2003 2821
2003-2004 2659
2004-2005 2756
2005-2006 2740
2950
2900
2850
2800
2750
MEMBERS
2700
2650
2600
2550
2500
2002- 2003- 2004- 2005-
2003 2004 2005 2006
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
Year Amount in
pension
scheme
2002-2003 15244052
2003-2004 14066706
2004-2005 14062848
2005-2006 14138149
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: -
Chapter: -6
FINDINGS
AND
CONCLUSION
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:-
RECOMMENDATIONS
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: -
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)
ANNEXURES
QUESTIONARE
High better
Moderate Low
Local Indigenous
Imported All
Excellent Moderate
TATA Siemens
Others
Good Moderate
Poor Cannot say
High Better
Moderate Low
Yes No