summer training project report

A

SUMMER TRAINING PROJECT REPORTON

A Study on Employee Provident Fund and Pension Scheme

Project Report

Submitted in partial fulfillment of the requirements for

Bachelor of Business Administration (BBA)

SUBMITTED BY

ISHAN AGGARWAL

B.B.A SEMESTER 4- ROLL No. 104512463224

ACADEMIC YEAR: 2010-2013

UNDER THE GUIDELINE OF

Mrs. RITA RAI

SUBMITTED

TO

GIAN JYOTI INSTITUTE OF MANAGEMENT & TECHNOLOGY

Sector-54, MOHALI

July 2012

ACKNOWLEDGEMENT

IT GIVES ME PLEASURE IN BRINGING OUT THIS PROJECT “THE

EMPLOYEES PROVIDENT FUND ANNUAL RETURN”

FIRSTLY I WOULD LIKE TO THANK MY TEACHER AND GUIDE

PROF Mrs. RITA RAI WHO GAVE ME HER VALUABLE SUGGESTIONS

AND IDEAS WHEN I WAS IN NEED OF THEM. SHE ENCOUREGED ME

TO WORK ON THIS PROJECT.

I AM ALSO GRATEFUL TO MY COLLEGE FOR GIVING ME THE

OPPORTUNITY TO WORK ON THIS PROJECT THEM AND PROVIDING

ME THE NECESSARY RESOURCES FOR THE PROJECT

I WOULD ALSO THANK TO THE MWIL STAFF WHO HELPED ME TO

COMPLETE THIS PROJECT.

I AM IMMENSELY GRATEFULL TO ALL INVOLVED IN THIS PROJECT

AS WITHOUT THEIR HELP AND VALUABLE SUGGESTIONS IT WOULD

NOT HAVE BEEN POSSIBLE TO DEVELOP THE PROJECT WITHIN THE

PRESCRIBED TIME.

Signature

ISHAN AGGARWAL

Date ………………………..

CERTIFICATE OF ORIGINALITY

I Ishan Aggarwal Roll No. 104512463224 of batch 2011-2013, am a full time

bonafide student of first year of Bachelor of Business Administration (BBA)

Programme of Gian Jyoti Institute of Management & Technology, Mohali.

I hereby certify that I have undergone summer training at MAHARAJA

WHITELINE INDUSTRIES LTD from 10 may, 2012 to 25 June, 2012 and the

project report titled “THE EMPLOYEES PROVIDENT FUND ANNUAL

RETURN” submitted in partial fulfillment of the requirements of the BBA

programme is an original work of mine under the guidance of the industry

mentor Mr. RISHIKESH KUMAR SINGH and faculty mentor Mrs. RITA RAI,

and is not based on or reproduced from any existing work of any other person.

Further, the project report is not based on or reproduced from any earlier work

undertaken at any other time or for any other purpose, and has not been

submitted anywhere else at any time.

(Student's Signature) (Faculty

Signature)

Student Name: Faculty Name:

ISHAN AGGARWAL Mrs. RITA

RAI

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, Bachelor of Business

Administration (BBA) may be considered as stepping-stone and summer training is an

integral part of BBA Curriculum.

Realizing that practical experience is an important part of the course curriculum for

Bachelor Degree in Business Administration, the student has to undergo practical

training for 4 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 enables 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 Maharaja whiteline industries ltd, baddi 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”

EXECUTIVE SUMMARY

The Researcher has conducted his research entitled, “Study of Provident Fund and

Pension Scheme” MWIL started its foray into home appliances in 1976.

MWIL is a Government of India enterprise with an annual turnover is Rs. 100-400

Crore Approx.

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 MWIL.

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 MWIL 12% contribution of employer is necessary and employee can contribute

upto 80%

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.

CONTENTS

CERTIFICATE 1

ACKNOWLEDGEMENT 2

PREFACE 3

EXECUTIVE SUMMARY 4

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

CHAPTER: -1

COMPANY PROFILE

1.1 INTRODUCTION

In this project I had done the field work on MAHARAJA WHITELINE

INDUSTRIES LIMITED just to understand the working condition of an organization

at MWIL there were three departments one was of the production department,

marketing department &HR department... In this project I have done my training on

HR department .My main aim is to learn trends and technique .Human resources is

one of important part for the growth of industrial organization.

For growth of industry .Industry must take care of human aspect .HR plays a vital role

in controlling the human aspect.

MAHARAJA WHITELINE INDUSTRIES

LIMITED

NALAGARH ROAD,

BADDI-173205

HIMACHAL PRADESH (India)ISO-9001-2008

Maharaja Whiteline, India’s most trusted family brand is back with its new range of

products. Whiteline started its foray into home appliances in 1976. The company

commenced its venture as a one product company. Today Maharaja dominates a share

of about 22% in home appliances with a product range of over 60 products in 18

product categories. The company has already sold off billions of kitchen appliances in

the past 3 decades. Behind this successful story is vision of Mr. Harish Kumar,

Managing Director, Maharaja Whiteline Group, a dynamic and a self motivated first

generation entrepreneur.

Maharaja Whiteline started its operations in 1976 and now the company enjoys the

undisputed leadership position in Indian Appliance industry. In addition to this, today

the ‘Maharaja’ employs over 1000 qualified & professional work force, ready to take

up the challenges of the new millennium and build the company into a global

appliance leader. The company has a huge Manufacturing infrastructure base with a

plant in Baddi (HP).

Recently, Maharaja has acquired Gem and Beltek, and has diversified its range into

the consumer durable industry the company is soon launching a range of ceiling fans

and office accessories. In near future, Maharaja Whiteline plans to export its

products in the SAARC countries.

Year of

Establishment

: 1976

Legal Status of Firm : Limited Liability/Corporation (Privately Held)

Nature of Business : Manufacturer, Wholesaler, Retailer, Trader

Turnover : US$ 25-100 Million (or Rs. 100-400 Crore

Approx.)

1.2 Product Range

The products offered by Maharaja Whiteline are many and diverse. It includes

products like Food Processors, Mixer Grinders, Hand Blenders, Electric Kettles, Hand

Blenders and many more. This gives ample of variety to its customers.

Juicer Mixer Grinder Mixer Grinder Wet Grinder Oven Toaster Griller

Food Processor Electric Iron Emergency Light Electric Kettle

Toaster Rice Cooker Juice Extractor Halogen Heater

http://www.maharajawhiteline.com/juicermixergrinder.html

http://www.maharajawhiteline.com/mixergrinders.html

http://www.maharajawhiteline.com/wetgrinders.html

http://www.maharajawhiteline.com/otg.html

http://www.maharajawhiteline.com/foodprocessor.html

http://www.maharajawhiteline.com/irons.html

http://www.maharajawhiteline.com/emergency_light.html

http://www.maharajawhiteline.com/kettles.html

http://www.maharajawhiteline.com/toasters.html

http://www.maharajawhiteline.com/ricecookers.html

http://www.maharajawhiteline.com/juiceextractor.html

http://www.maharajawhiteline.com/halogenheaters.html

1.3 PRODUCT DETAIL

SMOOTHIE MAKER

JUICER MIXER GRINDER

MX - 113

REAL


JX – 207

ULTIMATE


JX - 205

- Convienient stir stick

- High Low pulse &

- Switch off button

- Stainless steel blades

- Spout to dispense

smoothie

- Detachable jar

- Shock proof ABS body

- 450 W heavy duty motor

- 2 jars

- 1 See through blender jar

- 1 stainless steel chutney

jar


- Overload preventation

mechanism


- 4 jars

- Online juicer jar

- See through blender jar



mechanism

- 30 minutes rating

- Thermal overload

protection

- 1. 8Itr. capacity larger PC

smoothie jar

- 600 W powerful motor

- Circuit breaker

- 30 minutes rating

- 2 Speed piano switch with

pulser

NOVA


JX - 204

MARK - I


JX – 201


- 3 jars

- Online pulp remover



- Overload preventation mechanism

- 30 minutes rating

- With full apple insertion in single

time.


- 2 jars



- Overload preventation mechanism

- 30 minutes rating

- 1 stainless steel chutney jar.

BONUS

MIXER GRINDER

MX - 108

CHAMPION

MX - 107

PERFECT MIX

MX - 112

- 500 W motor

- Incredible range of

12000 -

18000 RPM

- 30 minutes nonstop

rating


- 3 speed with pulse

- Overload prevention

mechanism

- 500 W motor


12000 - 18000 RPM

- 3 jars


mechanism

- 60 minutes rating




12000 - 18000 RPM

- 500 W motor

- 3 jars



mechanism

- 60 minutes rating


- Chopper, grating,

slicer , attachment

MASTER CHEF

MX - 115

TURBO

MX - 105

SMART CHEF

MX - 111

- With FRUIT FILTER


12000 -

18000 RPM

- 600 W motor

- 4 jars


- 60 minutes rating



mechanism

- 550 W motor


12000 - 18000 RPM

- 3 jars



mechanism

- 60 minutes rating


- 750 W heavy duty

motor


12000 - 18000 RPM

- 3 jars 5 blades



mechanism

- 60 minutes rating


POPULAR

MIXER GRINDER

MX - 106

SUPER TURBO PLUS

MIXER GRINDER

MX - 103

NANO


12000 -

- 500 W motor



12000 -

18000 RPM

- 500 W motor

- 3 jars



mechanism

- 60 minutes rating


- ISI mark

12000 - 18000 RPM

- 3 jars



mechanism

- 60 minutes rating


- Chopper, grating, slicer

attachment

18000 RPM

- 500 W motor


- 3 jars


- 30 minutes rating

PRIMO DLX

MX-117Dlx

SMART CHEF

(WITHOUT CHOPPER)

SMART CHEF

- 600 W motor


12000 -

18000 RPM


- Overload protection

mechanism

- 60 minutes rating

- 3 speed with incher

- 3 jars

- 750 W motor


12000 -

18000 RPM



mechanism

- 60 minutes rating


- 3 jars 5 blades

- 750 W motor


12000 -

18000 RPM



mechanism

- 60 minutes rating


- 3 jars 5 blades

- With special chopper

attachement

(Chopper,Slicer, Shredder

and Grator )

STAR TILTING

WET GRINDER

WG – 504

- 500 W motor

- Incredible range of 12000

-

18000 RPM



mechanism

- 30 minutes rating


- 3 jars

- Tilting and space saving design

- Detachable stainless steel

grinding drum

- Unique atta kneader for soft and

tasty roties (optional)

- Detachable attachment for easy

cleaning

- Special coconut scrapper

(optional)

- Heavy duty 100 W motor

- 2 liters capacity


DRY IRON

DI-611

STEAM IRON

DI-410

Dry IRON

DI-601

- Flexible cord protector

- Pilot Light

- Adjustable temperature

control

- Ceramic coated base

- Safety fuse

- 1000 W

- Elegant look

- Variable steam control

- Pilot light

- Powerful sprayer

- Adjustable temperature

control

- Ceramic coated base

- Safety fuse

- 1600W

- Transparent water tank

- Flexible cord protector

- Pilot light

- Powerful sprayer

- Adjustable tempture

control

- Teflon coated base

- Aditional thermal fuse

- 1000W

DRY IRON

624

DRY IRON

625

- Variable temperature control

- Power on indicator lamp

- Stable heel rest

- Erogonomic design handles is

comfortable for hand hold

- Flexible cord

- Iron with teflon coating soleplate

- Variable temperature control

- Power on indicator lamp

- Stable heel rest

- Erogonomic design handles is

comfortable for hand hold

- Flexible cord

- Iron with teflon coating soleplate

BRAVOBRAVO DLX ICE BERG

-Large 65 Ltr. water tank

capacity

-Auto Louviers for

uniform distribution of

air.

-Aroma Stick for

Fragrance

-Base mounted powerful

fan for noiseless

performance

-Latest state-of-the-art

design

-Rust proof all ABS body

-Four way air deflection

system

-Multiple speed control

-Special Wood wool

evaporative pads

-Water level indicator


capacity

-Unique Rotary grill

Design for all round air

Deflection

-Aroma Stick for

Fragrance


fan for noiseless

performance


design

-Sleek and all new ultra

modern looks

-Uniform water

distribution



-Special Wood wool

evaporative pads


-Overflow pipe

-High Cooling

-Sturdy design

-Three speed blower

control


-Easily removable wood

wools pads


system

-Rust proof all ABS

Body

-Low Noise


design


modern looks

-Uniform water

distribution

-Rust proof all ABS Body

-Auto louvier for uniform

distribution of air

-Special Wood wool

evaporative pads


-Overflow pipe


capacity

-3 side easy to open side

grill



capacity

-Auto Louviers for

uniform distribution of

air

-Aroma Stick for

Fragrance


fan for noiseless

performance


design



system


-Special Wood wool

evaporative pads



system


capacity

-Unique Rotary grill

Design for all round air

Deflection

-Aroma Stick for

Fragrance

-Base mounted

powerful fan for

noiseless performance


design


modern looks

-Uniform water

distribution



-Special Wood wool

evaporative pads


MACHO RAMBO RAMBO DLX

-Overflow pipe

ARROW POLO DLX POLO

-Large 20Ltr. water tank

capacity.

-Sturdy design

-3 Speed blower control


-Optional wood wool

evaporative pads

/Honey comb pad

-Castor Wheel

-Rust Proof ABS Body

-Easy Pad replacement

-Cooling capacity : 20

Sq.Mtrs

-Product Dimension :

515 X 518 X 425 (MM)


capacity

-Unique rotary grill

design for all round air

deflection.

-Aroma Stick for

Fragrance


fan for noiseless

performance


design


modern looks

-Uniform water

distribution

-Optional wood wool

evaporative pads

/Honey comb pad



capacity

-Louver movement

horizontal-manually &

vertical motorised

-Aroma Stick for

Fragrance

-Base mounted

powerful fan for

noiseless performance


design


modern looks

-Uniform water

distribution

-Optional wood wool

evaporative pads

/Honey comb pad


-Water level indicator &

overflow pipe

-3 Speed fan control

-Castor Wheels

-Largest Cooling capacity

: 70 Sq.Mtrs


665 X 500 X 1065 (MM)


overflow pipe

-3 Speed fan control

-Castor Wheels

-Largest Cooling capacity

: 70 Sq.Mtrs


665 X 500 X 1065 (MM)

SLIM SMART

-Large 50Ltr. water tank

capacity.

-Louver movement


vertical motorised


design


modern looks

-Uniform water distribution

-Rust proof all ABS Body

-3 Speed blower control

-Special Honey

comb pads

-Large 22Ltr. water

tank capacity.

-Louver movement


vertical motorised

-Latest state-of-the-

art design

-Sleek and all new

ultra modern looks

-3 Speed blower

control

-Special Honey

comb pads



overflow pipe


-Castor Wheel


Sq.Mtrs


365 X 325 X 1240 (MM)

& overflow pipe

-Uniform water

distribution

-Easy Pad

replacement

-Castor Wheel


Sq.Mtrs


365 X 325 X 925 (MM)

COZY (15 25 35 50) COZY DLX(10 15 25)

-Storage type Water heater

-High on energy Saving

-High pressure with stand

-ISI approved thermostat

-Long life heating element

-Dual light indication for Power and Heating

-Multiple Safety system

-2 Years Product & 5 Years Tank Warranty

-Storage type Water heater

-High on energy Saving

-Shock proof , plastic end covers



-Dual light indication for Power

and Heating


-2 Years Product & 5 Years Tank

Warranty

INSTA

-Instant type Water heater

-Compact Elegant design

-Rust free, ABs plastic body

-Thermal reset button




-2 Years Product & 5 Years Tank Warrant

1.4 QUALITY POLICY

Quality policy of the Organization is:-

“To make MAHARAJA WHITELINE INDUSTRIES LIMITED synonymous

with quality by building quality into manufacturing process through continual

improvement in Man, Machine and Material by continuously striving to supply

product and service of high quality and achieving customer satisfaction.”

Within the framework of Quality Policy, Quality objectives are established at relevant

functions and levels within the organization.

Quality Policy is communicated and understood within the organization through

display boards and training.

The Quality policy is reviewed for continuing suitability once in a year in the

Management review meeting

Maharaja whiteline’s History

Maharaja Whiteline started its operations in 1976 and now the

company enjoys the undisputed leadership position in Indian Appliance industry. In

addition to this, today the ‘Maharaja’ employs over 1000 qualified & professional

work force, ready to take up the challenges of the new millennium and build the

company into a global appliance leader. The company has a huge Manufacturing

infrastructure base with a plant in Baddi (HP).

Recently, Maharaja has acquired Gem and Beltek, and has diversified its range into

the consumer durable industry the company is soon launching a range of sealing fans

and office accessories. In near future, Maharaja Whiteline plans to export its

products in the SAARC countries.

Chapter: -2

CONCEPTUAL FRAMEWORK

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. Recognized 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. Unrecognized 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.

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 MWIL:-

Contribution of Employer is 12% of Basic pay + Dearness Allowance

Contribution of employee (voluntary)

Upto 50% of Basic Pay + Dearness Allowance

Minimum: -12% of Basic Pay + Dearness Allowance

But in MWIL 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 MWIL is they are not

paid full monthly salary

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.

Therefore, the employees of MWIL prefer to contribute upto 50% 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.

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 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.

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

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 and

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

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 MWIL. is that they can take

loans from Provident Fund Trust of the company.

Types of loans

Refundable Non-Refundable

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 MWIL. 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

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 MWIL.

In MWIL. Negligible formalities are required to be fulfilled by the employees for

sanctioning loan to them.

CHAPTER: -3

OBJECTIVES OF

THE

STUDY

OBJECTIVES OF MWIL

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.

OBJECTIVES OF THE STUDY

1. To study the pattern of membership in Provident Fund and Pension Scheme in

MWIL.

2. To study the contribution made by employer as well as employee towards

Provident Fund and Pension in MWIL.

3. To find out the benefits of P.F. and Pension derived by employees in MWIL.

4. To find out the weaknesses in implementation of Pension Scheme in MWIL.

Chapter: -4

RESEARCH METHODOLOGY

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

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.

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.

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 MWIL.

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 MWIL.

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 2008 to 2012.

Chapter: -5

DATA ANALYSIS

INVESTMENTS OF THE AMOUNT OF PROVIDENT

FUND

EMPLOYEE’S PENSION SCHEME IN MWIL

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.

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 MWIL

In the other 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 MWIL.

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.

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

DATA ANALYSIS AND INTERPRETATION

(a) Membership of employee’s provident fund in MWIL.

Year Members

2008-2009 573

2009-20010 553

2010-2011 292

2011-2012 291

Interpretation: -Pattern of decline in membership in comparison

to previous year is as follows: -

2008-2009--- 3.4%

2009-2010--- 47.22%

2010-2011--- .34%

There has been continuous decline in membership. But in the year2009-2010 there

has been major decline due to increased frequency of VRS,Resignations,Retirement

& Death

b) MEMBERSHIP OF EMPLOYEES PENSION SCHEME

IN MWIL.

Year Members

2008-2009 282

2009-2010 265

2010-2011 275

2011-2012 274

Interpretation: -Membership of employees as compared to previous year:

declined in 2009-2010 by 8.02%

Slightly increased in 2010-2011 by 3.65%

Negligibly declined in 2011-2012 by .58%.

c) CONTRIBUTION TO EMPLOYEES PROVIDENT

FUND

Year Employee’s

Contribution

Employer’s

contribution

Total

2008-2009 3695569 1740215 5435784

2009-2010 3538038 1563839 5101877

2010-2011 3951997 1624361 5576359

2011-2012 4399927 1763639 6163567

Interpretation:-Although Membership in Provident Fund has declined during

previous years yet contribution towards Provident Fund has increased from year

2010 onwards due to the increase in Provident Fund Contribution Rate.

d) PENSION SCHEME IN MWIL.

Interpretation:-

In the year 2008-2009 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: -

Year Amount in

pension

scheme

2008-2009 152440

2009-2010 140667

2010-2011 140628

2011-2012 141381

In year 2009-2010 --- by 7.72%

In year 2010-2011 --- by .027%

In year 2011-2012 --- by .54% (increase)

Up to year 2010-2011 8.33% of 500 was transferred to Pension Fund of

the Employees.

From year 2011-2012 onwards 8.33% of 650 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 500 to 650.

Chapter: -6

FINDINGS AND CONCLUSION

FINIDINGS

As MWIL. 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 MWIL. has continuously

declined due to the Voluntary Retirement Scheme (VRS.) adopted by employees of

MWIL

2. The Membership in Employees Pension Scheme has declined in the recent years

in comparison to year 2008-2009 due to the V.R.S. adopted by employees of MWIL

3. The contribution of members have reduced in the year 2009-2010 as compared to

year 2008-2009 but increased in years viz. 2010-2011 and 2011-2012 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

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.

Chapter-7

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: -

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.

BIBLIOGRAPHY

BIBLIOGRAPHY

C.R. Kothari

(Research Methodology, Methods And Techniques)

K.D.Shrivastava

(Provident Fund And Miscellaneous Act, 1952)

www.maharajawhiteline.com

(About company)

Secondary Data

(Provided By Company)

ANNEXURES

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?

Letter of credit Advance

Sight payment All

8. What are the major products made by MWIL.?

Electronics Appliances

Home care 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?

USHA kaff

Others

11. What is our product’s market position?

Good Moderate

Poor Cannot say

RECRUTMENT AND SELECTION

12. Does your organization plan recruitment policy?

Yes No

13. What do you suggest be the basis of forecasting?

Total cost of project

Past experiences

Different phases of project

All of the above

14. Do you think the present recruitment policy is helpful in achieving

the goal of the company?

Yes No to some extent

15.Through which source your organization recruit the employees?

Internally externally both

16.Which of the following external sources you chose for the

recruitment of the employees?

(a) Employees exchanges consultants

(b)Private employee agencies

(c) Campus requirements

(d)Advertisements

(e) Internet

(f) Any other

17.Is there any provision for evolution and control of recruitment and

selection process?

Yes No

(a) Does the procedure adoted for recruitment and selection of

employees enables to give right person at the right job?

Yes No To some extent

summer training project report

Documents

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