A

PROJECT REPORT

ON

PROVIDENT FUND

CONTROL SYSTEM

AT

BALLARPUR INDUSTRIES LTD.

YAMUNA NAGAR

SUBMITTED TO:KURUKSHETRA UNIVERSITY, KURUKSHETRA

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OFB.Com. I [COMPUTER APPLICATION]

2006-2007

UNDER GUIDENCE OF: SUBMITTED BY:Mr. Sanjay Bhardwaj AmandeepH.O.D. Computer Deptt. ROLL No: -

B.Com -I [Comp. App.]

DEPT. OF COMPUTER APPLICATION

D.A.V. College For GirlsYamuna Nagar

ACKNOWLEDGEMENT

ACKNOWLEDGEMENT

It is matter of great pleasure to submit this report on

coating plant system. First I was not having any idea of this

project but when I asked about this project in Ballarpur

Industries Ltd., they guided me in this project. I was very

happy after their guidance. This was a new exposure for

me.

I would like to convey my sincere thanks to Mr. Vishal

Dingra, Head HRD at BILT and our teachers of Computer

Department in our college for their kind co-operation and

knowledge assistance in giving shape to this project. I

would belief that without their guidance the successful

completion of this project was not possible.

I also want to give regards to all the employees of the

department of People Development and Communication

and my friends for their help during study and report

preparation. My friends provided me moral support and

valuable help in completion the project report.

My heartiest debts to my parents for their

encouragement and understanding which has been a

timely factor in the completion of this project.

Amandeep

INDEX

Topic Page No.

Certificate from College

Certificate from Company

Acknowledgement

Preface

Introduction to Organisation

Introduction to Problem Area

Existing System

Output and Reports

Conclusion

PREFACE

PREFACE

It is the widening modern world, the present system to

education is facing new challenges. It is well known fact that

today is the age of computer, the major achievements and science

and technology. Now are days every body is realizing the

importance of computers which the achievements of modern 5 th

generation of computers.

In modern area of science and technology, as power nation

have their super computer. Although, india today among one of

the progressive nation still we are lagging behind the most

advanced countries in the field of science. We can overcome this

problem only when the youth of India of the present generation

gives its full cooperation in rising India as a powerful nation.

So realizing this fact according to time demand when

computers are necessary and important achievements. I have

chosen B.Com I with computer application at my esteemed

Institution D.A.V. College for Girls, Yamuna Nagar.

This degree course aims at providing the student knowledge

about the various applications of computers. So it is necessary to

jump in practical field. Hence, I was assigned this project which

is a part of my subject.

Now I have completed my project report. It has helped in

increasing my knowledge. I have to keep in the line with the out

side world realize the need of quality maintenance factor.

INTRODUCTION

TO

ORGANISATION

INTRODUCTION TO ORGANISATION

BALLARPUR INDUSTRIES LIMITED, popularly

known as BILT is efficiently managed, ‘financially sound’, and

‘self sufficient’ and ‘self made company’ is The Thapar Group

is one of the leading business houses in India. It has a turn over

of Rest 5000 crores; BILT is one of the leading companies with

in the Thapar Group.

The Thapar Group has a wide range of activities like

paper, engineering, electronics, textiles, chemicals, glass

telecommunications, biotechnology leather etc.

There are 54 companies and 84 plants under this group.

Some of the main companies under this group are Crompton

Greaves, K.C.L Bros. JCT Limited, BILT.

Ballarpur Industries Ltd. (BILT) promoted by Mr. L M

Thapar, is the leader in Indian Paper Industry with an annual

production capacity of 460000 MT spread over in five

manufacturing facilities produces ordinary and superior varieties

of writing, printing and specialty papers etc. The company is also

backwardly integrated with its Caustic soda Chlorine

manufacturing facility, which is a vital material consumed in the

production process of paper.

BILT, which is originally incorporated in 1945 as Ballarpur

Straw Board Mills, has changed its name in March 1946 to

Ballarpur Paper and Straw Board Mills and again it was changed

to the present name in October 1975. Since then the company

has grown to be a leader in paper industry by continuous

expansion and modernization of its capacity and plant and

strategic acquisitions. In 1969 the company has merged Shree

Gopal Paper Mills with itself and the company that has acquired

the Sinar Mass Pulp and Paper (India) Ltd. (Now BILT

Graphic Papers Ltd. (BGPL) which has state of the art 115000

TPA paper plant and a market leader in the high end coated art

paper and art paper board segment in India is planning to bring

the paper unit of BGPL into its fold and consolidating its paper

operation under one umbrella.

The company which was one of the most diversified

companies in the pre-liberalization era of industrial licensing with

interests in Paper, Chemicals (Phosphoric Acid, STPP, Chlor, and

Alkalies), Vanaspati & Edible oils and Glass has decided to focus

on its core competence that is in paper and exit from its non-core

business. First major steps on these lines were initiated in the

year 1994-95 with hiving off the glass business. Thereafter the

company sold its vanaspati and edible oils business in 1996-97.

And in 1998, the chemical division of the company with its plant

at Karwar, Karnataka and which has interests in Phosphates,

Chlor, Alkali and Bromine and Bromine Chemicals was spun of

into a separate company i.e. Ballarpur Chemicals Ltd. (now

Solaries Chem. Tech. Ltd.). To complement its Restructuring and

to enable it to emerge as a stronger and more competitive

organization, the company is implementing a project involving

modernization and expansion of capacity at its Units in Shree

Gopal, Ballarpur and Sewa by 105000 TPA. The Project will

be implemented in two phases.

In the first phase, the capacity expansion of 35000 TPA and

28000 TPA is planned over a two-year period from 2000-01 to

2002-03 for Units Sewa and Shree Gopal. In the second phase

42000 TPA of capacity is expected to come on stream at Unit

Ballarpur by 2003-04. During the year 201-02, the company has

completed the up gradation of Pulp Mill at Unit Sewa resulting in

increasing in capacity by 37 tones from the earlier 125 tones of

unbleached pulp per day. The company has also completed

installation of a 2.4 meter wide blade coater at Unit Shree

Gopal in FY 2001-02 BILT entered into strategic alliance with

IIansol of South Korea to provide world class blade coated paper

to the Indian customer. It is the first company in the world to

commercially exploit the fractionation of bamboo and has applied

for the world patent for this process. It has also entered into

direct retail distribution with the launch of A4 size 100-sheet

pack of Royal Executive Bond.

Mr. Gautam Thapar, Managing Director of BILT, has

been associated with BILT since 1986 when joined the company

as Shop Floor Management Apprentice-Paper Mills and was

instrumental in turning around BILT in the late 1990s.

BILT consists of Five Units:

1. Ballarpur Unit, Distt. Chandrapur, Maharashtra.

2. Shree Gopal, Yamuna Nagar, Haryana.

3. Ashti, Maharashtra.

4. Bhigwan, Maharashtra

5. Sewa, Orissa

COMPANY PROFILE

Founder - Late Lala Karam Chand Thapar (1900-1962).

Consists of major industries such as paper, chemicals, glass, pulp,

china clay, electronics etc.

Lala Karam Chand acquired Shree Gopal Paper Mill in 1936 as

he already established himself as a coal king.

Shree Gopal Paper Mill earlier known as M/s. Panjab Pulp and

Paper Company which was initially promoted by Foundation

Company England, the mill was laid shut for 6 months and was

ultimately auctioned.

This unit consists of:

Six Paper Machines

Two Coating Plants

Three Finishing Houses

Two Power Houses

One Caustic Soda Plant

New Pulp Mill

CHSR

At present Unit - Shree Gopal is producing around 250 TPD

of paper.

Total area - 206 acres

Factory area - 155 acres

Colony area - 51 acres

Turnover - Rs. 24-26 Crores / month

Manpower

Managerial staff - 230

Permanent Workers - 1560

Casual workers - 740

Clerical - 1460

DEPARTMENTS

The departments are categorized as:

Administrative Department:

PDC - People development and communication.

Accounts Department

Material Department

Sales Department

Raw material Department

Traffic Department

Process Department

Pulp Mill

Machine House

Coating Plant

Soda Recovery Plant

CSCP

Engineering Department:

Electrical Engineering

Mechanical Engineering

Civil Engineering

Instrumentation Engineering

Power House

TOP ORGANISATION STRUCTURE

C.G.M.

HEAD PR SECRETARY

Head Res.& Dev

Head Paper Prod

Head Pro Chem

Head Engg

Head Medical

Head Commercial

Head Human

Resources

ORGANISATION STRUCTURE

V.P. and M.D.

Group II Head

Chief General Manager

People Development Commercial andRaw Material

Research Paper Engg. MedicalDevelopment Production Service

SOFTWARE AND HARDWARE

SPECIFICATION

SOFTWARE AND HARDWARE

SPECIFICATION

There is a wide range of computers that are used in BILT - Unit

Shree Gopal. This unit has well defined I.T. (Information Technology)

Department to serve the purpose of providing computers and various

software to various Departments of this unit. Maximum P4 Computers are

used in BILT:

HARDWARE SPECIFICATIONS:

It includes more than 250 computers.

All the computers are installed by IBM.

* 1 ORG System

* 2 AS/400 Mini Computer activity as served.

VARIOUS LINE PRINTER (LIPI)

Printers include Deskjet, Laser, DMP. Every computer is linked to each

other by internet through windows sharing systems.

Software - operating system for ORG system.

- OS/ 400 for mini comp.

MOST POPULAR USED PACKAGE ARE

MS Office

Fox Pro

Visual Basic

OPTIVISION :

An ERP Software is loaded on computer for various processing tasks.

INTRODUCTION TO THE

PROBLEM AREA

WHAT IS PROVIDENT FUND?

Provident fund account is maintained through the contribution from the

employee along with the matching contribution from the employer, every

month. Employees drawing the wages beyond Rs. 6500/- on the date of

joining the establishment can be the member of Provident Fund.

The Rate of Contribution and payable under the three schemes are as

under:

Name of the Scheme Employee's scheme Employer's Share

Employees Provident

Fund Scheme 1952

12% 3.67%

(Amount is excess of

8.33%) i.e. 12% -

8.33%)

Employee's Pension

scheme 1995

Nil 8.33%

(No separate recovery)

Employee's Deposit

linked Insurance

Scheme 1976

Nil 0.5%

CRITERIA TO BECOME A P F MEMBER?

All the employees employed in an enterprise employees employed

through contractors, daily rated, piece rated, temporary, casual.

Employees drawing wages beyond Rs. 6500/- can also become a

member of the fund, if the employer and employee gives a joint

declaration to the Regional Provident fund commissioner.

Excluded employees need not to be enrolled as PF member.

An employee at the time of joining an establishment should declare

his previous provident fund account number/ membership details to

his present employer for communication to the commissioner.

All the employees should be enrolled as a provident fund member

from the date of joining the establishment/ factory.

BENEFITS TO MEMBERS

Every employee is required to pay contribution to the provident fund

@ 12% / 10% of the basic wages and dearness allowance.

The employer will also pay an equal amount of contribution.

While contributing to employees Provident Fund, the member is

eligible for Income tax rebate.

The Provident fund accumulations of the member will earn

compound interest, calculated on monthly running balances.

The Provident Fund members can avail advances/ partial

withdrawals for housing, marriage, illness, closure of establishment

etc.

On retirement or an leaving service, the Provident fund

accumulations can be withdrawn in full by submitting application.

In case of premature death, the provident fund is payable to

nominee/ family members.

A members of provident fund also acquires membership under

pension scheme.

BENEFIT OF PENSION SCHEME

Pension is based on age, wage and service of an employee at the

time of his leaving service.

The payment of pension is guaranteed and assured even in cases

where the employer fails to deposits the pension contributions.

Every year, the pension quantum may increase.

On death of a pensioner the pension is automatically payable to the

spouse (Widow/ Widower)

When there is no valid nomination, the family pension is payable to

dependent father followed by dependent mother.

The pension can be drawn any where in India.

On behalf of minor children the pension is payable to guardian.

The contribution to pension fund can be made beyond the ceiling

limit of Rs. 6500/- on the Joint request of the employee and the

employer so as to get more benefit.

BENEFIT UNDER EMPLOYEES DEPOSIT

LINKED INSURANCE SCHEME, 1976

A member of Provident Fund is also a member of employees

Deposits linked Insurance Scheme.

In case of death of an employee while in service, Insurance benefit

upto Rs. 60,000/- is payable to the nominee/ family members.

No contribution is required to be paid by the employees for the

insurance benefit. On behalf of the employee, the employer is

required to pay the contribution.

EXISTING SYSTEM

Provident Fund Account is maintained through the contribution from the

employee along with the matching contribution from the employer, every

month.

The rate of contributions, payable under the three schemes are as under:

Name of the Scheme Employee's Share Employer's Share

Employees Provident

Fund, Scheme 1952

12% 3.67%

Employees Provident

Fund Scheme 1952

Nil 8.33

Employees Deposit

linked Insurance

Scheme 1976

Nil 0.5%

METHOD OF CALCULATING PROVIDENT FUND CONTRIBUTION

FROM THE MONTHLY SALARY IN BILT

Employees Salary :

Basic DA HRA City Conveyance TotalWages Allowance

4000 2000 500 100 200 6900

Attracts P Federation PF not to be deducted

i.e. Rs. 6000/- @ 12% = 720

Matching share payableby Employer.

720 – out of this 8.33% of

Wages is diverted to pension

fund i.e. Rs. 500/- Balance

Rs. 220/- will go to

employer's share of Provident

Fund.

PRACTICAL EXERCISE ON PF/EDLI CLAIM SETTLEMENT

EXAMPLE:

Calculate the amount of Provident Fund accumulations payable to a

member of the Employee's Provident Fund Scheme, 1952 in the following

case:

1) Date of leaving (Age 58 years) 162002

2) PF contribution per month 250

3) Closing balance of Provident fund accumulations as

on 1.4.2002:

Member's share 20000

Employer's share 27000

4) Withdrawl under Para 68K of the EPF scheme

1952 in May 2002 6000

5) Withdrawal under para 68B of the EPF scheme

1952 in June 2002 11000

6) Date of submission claim in form 19 on 25.7.2002

Date of claim authorized on 12.8.2002

7) Rate of interest for the year 9.5% p.a.

i) Interest is to be credited to the member's account for the period upto

31.7.2002

i.e. upto end of the month proceeding the date of authorisation of payment

ii) Interest calculation sheet on monthly Balance.

(Period 1.4.2002 to 31./7.2002)

Month Op. Balance

(Both share)

Contribution Withdrawal

April 2002 47000 500 -

May 2002 47500 500 6000

June 2002 42000 - -

Total 168000 - 17000

Less Withdrawal 17000 -

Total of Col 4

Interest Bearing Balance : 151000 (IBB)

Interest : 151000 x 19__________ = 1195.42 or Rs. 1195/-12x100x2

iii) Calculation of Net Amount Payable:

After calculating interest payable the same will be postal in the

Ledger card in the Total Column of interest. The net amount payable will

be worked out as under:

Year 2002-2003

Employer's

Share

Employee's

share

Total

Opening Bal 20000 27000 47000

Interest - - 1195

Current Contribution 750 750 1500

Total credit 20750 27750 49695

Withdrawls 6000 - 17000

11000 -

Closing balance 32695

Net amount payable Rs. 32695/- (Rs. Thirty two thousand six hundred and

ninty five only)

DEFAULT IN PAYMENT OF DUES BY EMPLOYER

CONSEQUENCES

Penal damages upto 37% per annum and interest at the rate of 12%

payable on defaulted deposits.

Attachment of Bank Accounts

Realization of dues from Debtors.

Attachment of movable and immovable properties.

Arrest and detention.

Action under section 406/409 of Indian Penal Code.

Action under section 110 criminal procedure code.

Prosecution under section 14 of the EPF and MP Act. 1952.

PROVIDENT FUND ADVANCES/

WITHDRAWALS IN BILT

A member of the EPF can avail the advance/ withdrawal during the period

of his membership, whether in employment or not, for the following

purposes:

For financing insurance Policy.

For Housing (purchase of site, house, flat, and construction,

addition/ alteration of house and repayment of housing loans)

Financial assistance on dismissal, discharge, retrenchment and

closure/ lock out

For illness of the member/ family member.

For marriage and post matriculation education.

To meet the loss of property due to natural calamity.

Loss in wages due to power cut.

Purchase of equipment for physically handicapped.

To withdraw the provident fund one year before retirement.

HOW TO WITHDRAW PROFIDENT FUND AND

OTHER BENEFIT IN BILT

On Leaving an Employment:

A member of EPF on his leaving employment on resignation etc, if

he is not securing any employment in a PF covered establishment, may

claim his PF accumulations by himself. For this purpose the member is

required to submit the prescribed application in Form 19. This form is

required to be submitted to the regional Provident Fund commissioner after

completion of 2 months from the date of leaving service. In case, the

member secures another employment before submitting his application the

account is required to be transferred.

In the following cases a member may submit the application

immediately, without waiting for a period of 2 months.

1) On retirement from service after attaining the age of 55 years.

2) On retirement on account of total and permanent in capacity due to

bodily or mental infirmity.

3) Migration from India for permanent settlement abroad, or for taking

employment abroad.

4) Individual/ Mass retrenchment

5) Termination of service on V.R.S.

6) A female member who left the service on account of her marriage.

ON DEATH OF A MEMBER:

On death of a member, the Provident Fund amount is payable

immediately to the nominee/s.

If there is no valid nomination the Provident Fund amount is payable

equally to all the eligible members of his family.

If both nominee and 'family' members are not applicable the legal

heir is eligible to claim the Provident Fund dues of the deceased

members.

WHO CAN CLAIM THE BENEFITS UNDER THE

EMPLOYEES PENSION SCHEME 1995?

A provident fund member who is eligible to withdraw his employees

Provident Fund dues can therefore avail the benefit due under the pension

scheme also. It is not necessary to avail the pension benefit alongwith

Provident Fund. A member who had attained the age of 58 years can avail

the benefit under the pension scheme.

A member of the pension scheme is eligible for the following

benefits:

Withdrawal benefit

Scheme certificate

Monthly pension

On the death of an employee while in service, the family (spouse and

children) is eligible to receive monthly family pension i.e. for the widow/

widower and also to children below 25 years.

CLAIMING WITHDRAWAL BENEFITS

A member who is eligible to draw the withdrawal benefit is required

to submit the application in form IOC, through the employer.

In case a member who has not rendered 10 years service, he is

eligible to avail the withdrawal benefit or he may avail the scheme

certificate, at his option.

Claiming of Scheme Certificate:

A member who is required to avail the scheme certificate

compulsorily and the option for scheme certificate should be specifically

mentioned in the application form.

In case of death of the member, the family can surrender the scheme

certificate and avail the family pension as admissible under the scheme.

CLAIMING OF PENSION

A member can claim pension through the application in Form IOD

in the following cases.

On total and permanent in capacity (100% disablement) (without

any restriction of ser ice period)

On attaining the age of 58 years with eligible service of 10 years.

After rendering 10 years service and on leaving the service between

50-57 years (Reduced Pension can be opted)

In case of death of a member while in service or away from service,

the family (Dependent parents are eligible for family pension)

The Form IOD should be forwarded only through the employer

(except in the case of closed establishment) alongwith the

documents mentioned. The age of the children should be supported

by the school certificate or any valid document.

To claim the family pension, the widow/ widower may submit only

one application on his/ her behalf and on behalf of two children.

TRANSFER OF PROFIDENT FUND ACCOUNT

A Provident Fund Member, on leaving an establishment and joining

another establishment, can seek transfer of his Provident fund balances to

his new provident fund account opened in the transferee establishment.

This application should be submitted through the present employer to the

Regional Provident Fund Commissioner concerned for effecting the

transfer. The regional provident fund commissioner is required to effect

the transfer with in 30 days. A copy of the transfer certificate will be sent

to the member concerned. The member should also ensure that the amount

transferred to his present account number is included in the provident fund

annual statement of account of the year in which transfer was effected.

Any delay in transfer of Provident Fund Accounts should be brought

to the notice of the Regional Provident Fund commissioner concerned.

NOMINEE FOR PROVIDENT FUND

A member having a family viz. Husband/ Wife, children and

dependent parents is required to nominate one or more persons belonging

to his family only. If the member has no family member, he can nominate

any person /s; but if the member acquires a family such nomination is

deemed as invalid. The member should make a fresh nomination.

NOMINEE FOR PENSION:

In case of nomination for pension it may be noted that the family

pension is automatically payable to the family i.e. widow or widower

along with two children (below 25 years). As such as long as the family

member service as on the date of death of the member the pension is

payable to them only and the nomination will have no effect. The

dependent parents will be eligible for pension only where there is no

eligible family member or nominee.

SUPPLY OF ANNUAL PROVIDENT FUND STATEMENT

OF ACCOUNTS

The Regional Provident Fund Commissioner shall send the

individual members EPF Annual Statement of Accounts slips pertaining to

every financial year to the employer before 30th of September of the

following year for delivery to every EPF member of the establishment.

The employer shall distribute the same to the respective members,

get acknowledgements for the same from each member and keep the

acknowledgement with him, duly intimating the position to the Regional

provident fund commissioner.

Members should satisfy themselves to correctness of the details

indicated inform – 23 slips and any error should be brought to the notice of

the commissioner through the employer with in 6months of the receipt of

the statement.

The Provident Fund Annual statement of account will reflect only

the EPF contributions recovered at the rate of 12% or 10% of wages under

employee's share in full and 3.67%/ 1.67% of wages under the employer's

share (i.e. 12% - 8.33% diverted to pension fund)

Whenever the employer has failed to deposit the employees

Provident Fund dues, the same will not be included in the statement of

Account.

MODE OF PAYMENT OF BENEFIT

The benefits payable to the EPF members towards Advances /

withdrawals final payments are normally paid through savings bank

account in a Bank / Post office.

Payment by money order will be made where the amount due for

payment is only upto Rs. 2000/-.

Beyond this the payment will be made by cheque and sent direct to

the bank in which the members account is kept.

If payment is upto Rs. 500 than payment will be made by money

order,

PAYMENT OF PENSION:

The monthly pension is payable through the designated bank

selected for this purpose.

Region-wise Name of the Disbursement Agencies

S.N. Name of the Region Name of the Designated

Bank

Post Office

1. Delhi Punjab National Bank

State Bank of India

Bank of India

HDFC

ICICI

UTI

Post Office

2. Haryana Punjab National Bank

State Bank of India

HDFC

ICICI

UTI

Post Office

3. Himachal Pradesh Punjab National Bank

State Bank of India

HDFC

ICICI

UTI

Post Office

4. Punjab Punjab National Bank

State Bank of India

HDFC

ICICI

UTI

Post Office

5. Uttar Pradesh Punjab National Bank

State Bank of India

HDFC

ICICI

UTI

Post Office

6. Uttranchal Punjab National Bank

State Bank of India

HDFC

Post Office

In addition to the Nationalized Banks mentioned above, the Head

Post Office is also disbursing the pension. The scheduled banks such as

HDFC, UTI, ICICI banks are also included as the disbursing agency for

payment of pension. The pensioners may opt. anyone of the disbursing

bank for drawal of monthly pension regularly.

CONCLUSION

CONCLUSION

I studied the running system of Ballarpur Industries at

Yamuna Nagar during the training of my project (Provident Fund

Control System).

The Process of Provident Fund Control System is totally

attach by computer all the process and information are stored in

computer. So computer system is more faster than manual

system. Due to large memory of computer large number of

record can be stored and analysed.

ADVANTAGES

OF

COMPUTERIZATION SYSTEM

ADVANTAGES OF COMPUTERIZED

SYSTEM

1. The major advantage is the speed. Computer can perform number of

operations and calculations with in a few seconds.

2. Computer can hold large amount of Data so no problem of Data

storage with the help of powerfull storage media like floppy disk.

3. Computer can perform all the jobs related to calculations and

operations efficiently and accurately.

4. In computerized system a lot of manual work and time is saved.

5. In computerized system, at one glance we can see all the records in

reports.

6. Chances of duplicacy are minimum in case of computerized system.

7. Multiple copies can be generated, which saves time.