A

SUMMER TRAINING PROJECT REPORT

ON

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) Signature) Student Name: ISHAN AGGARWAL

(Faculty

Faculty Name: 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 Employees Pension Fund has been created for this purpose by diverting a portion of the employers contributions to the Provident Fund.

CONTENTS

CERTIFICATE ACKNOWLEDGEMENT

1 2

PREFACE
EXECUTIVE SUMMARY 4

CHAPTERS: NO.
1. COMPANY PROFILE

PAGE

1-16 17-27 28-29 30-33 34-41

2. CONCEPTUAL FRAMEWORK 3. OBJECTIVES OF THE STUDY 4. RESEARCH METHODOLOGY 5. DATA ANALYSIS

6. FINDINGS &CONCLUSION 7. RECOMMENDATIONS BIBLIOGRAPHY

42-43 43-44

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, Indias 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

1.3 PRODUCT DETAIL

SMOOTHIE MAKER JUICER MIXER GRINDER MX - 113 - Convienient stir stick - High Low pulse & - Switch off button - Stainless steel blades - Spout to dispense smoothie - Detachable jar - Shock proof ABS body - Thermal overload protection smoothie jar - 600 W powerful motor - Circuit breaker

REAL JUICER MIXER GRINDER JX 207 - 450 W heavy duty motor - 2 jars - 1 See through blender jar - 1 stainless steel chutney jar - Shock proof ABS body - Overload preventation mechanism - 30 minutes rating - 2 Speed piano switch with

ULTIMATE JUICER MIXER GRINDER JX - 205 - 450 W heavy duty motor - 4 jars - Online juicer jar - See through blender jar - Shock proof ABS body - Overload preventation mechanism - 30 minutes rating

- 1. 8Itr. capacity larger PC pulser

NOVA JUICER MIXER GRINDER JX - 204

MARK - I JUICER MIXER GRINDER JX 201

- 450 W heavy duty motor - 3 jars - Online pulp remover - See through blender jar - Shock proof ABS body - Overload preventation mechanism - 30 minutes rating - With full apple insertion in single time.

- 450 W heavy duty motor - 2 jars - See through blender jar - Shock proof ABS body - 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 - Shock proof ABS body - 3 speed with pulse - Overload prevention mechanism

- 500 W motor - Incredible range of 12000 - 3 jars - Overload preventation mechanism - 60 minutes rating - 3 speed with pulse - Shock proof ABS body 18000 RPM

- Incredible range of 12000 - 3 jars - Shock proof ABS body - Overload preventation mechanism - 60 minutes rating - 3 speed with pulse - Chopper, grating, slicer , attachment 18000 RPM - 500 W motor

MASTER CHEF MX - 115

TURBO MX - 105

SMART CHEF MX - 111

- With FRUIT FILTER - Incredible range of 12000 18000 RPM - 600 W motor - 4 jars - Shock proof ABS body - 60 minutes rating - 3 speed with pulse - Overload preventation mechanism

- 550 W motor - Incredible range of 12000 - 3 jars - Shock proof ABS body - Overload preventation mechanism - 60 minutes rating - 3 speed with pulse 18000 RPM

- 750 W heavy duty motor - Incredible range of 12000 18000 RPM - 3 jars 5 blades - Shock proof ABS body - Overload preventation mechanism - 60 minutes rating - 3 speed with pulse

POPULAR MIXER GRINDER MX - 106

SUPER TURBO PLUS MIXER GRINDER MX - 103

NANO

- Incredible range of 12000 18000 RPM - 500 W motor - 3 jars - Shock proof ABS body - Overload preventation mechanism - 60 minutes rating - 3 speed with pulse - ISI mark

- 500 W motor - Incredible range of 12000 - 3 jars - Shock proof ABS body - Overload preventation mechanism - 60 minutes rating - 3 speed with pulse - Chopper, grating, slicer attachment 18000 RPM

- Incredible range of 12000 18000 RPM - 500 W motor - Shock proof ABS body - 3 jars - 3 speed with pulse - 30 minutes rating

PRIMO DLX MX-117Dlx

SMART CHEF (WITHOUT CHOPPER)

SMART CHEF

- 600 W motor - Incredible range of 12000 18000 RPM - Overload protection mechanism - 60 minutes rating - 3 speed with incher - 3 jars

- 750 W motor 12000 18000 RPM

- 750 W motor - Incredible range of 12000 18000 RPM - Overload protection mechanism - 60 minutes rating - 3 speed with pulse - 3 jars 5 blades - With special chopper attachement (Chopper,Slicer, Shredder and Grator )

- Incredible range of

- Shock proof ABS body - Shock proof ABS body - Shock proof ABS body - Overload protection mechanism - 60 minutes rating - 3 speed with pulse - 3 jars 5 blades

STAR

TILTING WET GRINDER WG 504 - Tilting and space saving design

- 500 W motor

- Incredible range of 12000 18000 RPM - Shock proof ABS body - Overload protection mechanism - 30 minutes rating - 3 speed with pulse - 3 jars

- 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 - Shock proof ABS body

DRY IRON DI-611

STEAM IRON DI-410

Dry IRON DI-601

- Flexible cord protector - Pilot Light

- Variable steam control - Pilot light

- Flexible cord protector - Pilot light - Powerful sprayer - Adjustable tempture control - Teflon coated base - Aditional thermal fuse - 1000W

- Adjustable temperature - Powerful sprayer - Adjustable temperature control - Ceramic coated base - Safety fuse - 1000 W - Elegant look control - Ceramic coated base - Safety fuse - 1600W - Transparent water tank

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

BRAVO

BRAVO DLX

ICE BERG

-Large 65 Ltr. water tank -Large 65 Ltr. water tank -High Cooling capacity -Auto Louviers for uniform air. -Aroma Stick for Fragrance -Base mounted powerful fan for noiseless performance -Latest state-of-the-art design distribution of capacity -Unique Rotary grill Design for all Deflection -Aroma Stick for Fragrance fan for noiseless -Sturdy design -Three speed blower -Water level indicator -Easily removable wood wools system -Rust proof all ABS pads round air control

-Base mounted powerful -Four way air deflection performance design

-Latest state-of-the-art Body

-Rust proof all ABS body system -Multiple speed control -Special Wood wool evaporative pads -Water level indicator

-Sleek and all new ultra looks -Uniform water distribution -Rust proof all ABS body -Multiple speed control -Special Wood wool evaporative pads -Water level indicator -Overflow pipe

-Four way air deflection modern

MACHO

RAMBO

RAMBO DLX

-Low Noise -Latest state-of-the-art design modern looks

-Large 65 Ltr. water tank -Large 65 Ltr. water tank capacity -Auto Louviers for air -Aroma Stick for Fragrance noiseless capacity -Unique Rotary grill round air Deflection -Aroma Stick for Fragrance fan for noiseless distribution of Design for all

-Sleek and all new ultra uniform -Uniform water distribution -Rust proof all ABS Body

-Base mounted powerful -Base mounted powerful

-Auto louvier for uniform fan for

distribution of air -Special Wood wool evaporative pads -Water level indicator -Overflow pipe capacity -3 side easy to open side grill -Multiple speed control

performance -Latest state-of-the-art design

performance -Latest state-of-the-art design looks

-Rust proof all ABS body -Sleek and all new ultra -Four way air deflection modern -Uniform water -Rust proof all ABS body -Multiple speed control -Special Wood wool evaporative pads -Water level indicator -Overflow pipe

-Large 45 Ltr. water tank system -Special Wood wool evaporative pads -Water level indicator -Four way air deflection system

-Multiple speed control distribution

ARROW

POLO DLX

POLO

-Large 20Ltr. water tank capacity. -Sturdy design -Water level indicator -Optional wood wool evaporative pads

-Large 55 Ltr. water tank -Large 55 Ltr. water tank capacity -Unique rotary grill deflection. -Aroma Stick for Fragrance capacity -Louver movement horizontal-manually & vertical motorised -Aroma Stick for Fragrance

-3 Speed blower control design for all round air

/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)

-Base mounted powerful -Base mounted powerful fan for noiseless fan for noiseless performance -Latest state-of-the-art design -Sleek and all new ultra modern looks -Uniform water distribution -Optional wood wool evaporative pads /Honey comb pad -Easy Pad replacement -Water level indicator & overflow pipe -3 Speed fan control -Castor Wheels -Largest Cooling capacity : 70 Sq.Mtrs -Product Dimension : 665 X 500 X 1065 (MM) performance -Latest state-of-the-art design -Sleek and all new ultra modern looks -Uniform water distribution -Optional wood wool evaporative pads /Honey comb pad -Easy Pad replacement -Water level indicator & overflow pipe -3 Speed fan control -Castor Wheels -Largest Cooling capacity : 70 Sq.Mtrs -Product Dimension : 665 X 500 X 1065 (MM)

SLIM -Large 50Ltr. water tank

SMART -Large 22Ltr. water

capacity. -Louver movement horizontal-manually & vertical motorised -Latest state-of-the-art design -Sleek and all new ultra modern looks -Rust proof all ABS Body -3 Speed blower control -Special Honey comb pads -Water level indicator & overflow pipe -Easy Pad replacement -Castor Wheel -Cooling capacity : 28 Sq.Mtrs -Product Dimension : 365 X 325 X 1240 (MM)

tank capacity. -Louver movement horizontal-manually & vertical motorised -Latest state-of-theart design -Sleek and all new ultra modern looks control -Special Honey comb pads -Water level indicator & overflow pipe -Uniform water distribution -Easy Pad replacement -Castor Wheel -Cooling capacity : 22 Sq.Mtrs -Product Dimension : 365 X 325 X 925 (MM)

-Uniform water distribution -3 Speed blower

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 -ISI approved thermostat -Long life heating element -Dual light indication for Power and Heating -Multiple Safety system -2 Years Product & 5 Years Tank Warranty

INSTA -Instant type Water heater -Compact Elegant design -Rust free, ABs plastic body -Thermal reset button -ISI approved thermostat -Long life heating element -Multiple Safety system -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 whitelines 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 employees 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 employees 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 EMPLOYERS AND EMPLOYEES 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 Employees 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. 2. Every Establishment, which has 20 or more persons employed in it. 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.

EMPLOYERS CONTRIBUTION

The employer is required to contribute tee following amounts: 1) Towards Employees 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 employers 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 employees 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 Widowers Pension, Children Pension Or Orphan Pension payable to

the beneficiaries of such employees

CONTRIBUTION TOWARDS PENSION

Such sum from employees 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

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: -

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) occasion)

2 times for social obligation (marriage, engagement, birth, any other dearness

Amount of loan sanctioned for social obligation =9 months basic salary + 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 employees 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: seller Proof of ownership of seller. Agreement copy of purchase of house/proof of advance submitted to the

Note: -Loan is granted out of employer and employees 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
objective competitive. To endeavor to achieve reasonable return on investments. To further increase its contribution in the companys value of production To maintain 10% annual growth in the turnover of the company To undertake financial restructuring of the company to be more & profitability. excluding the bought out items. To re-evaluate the corporate plan for higher growth & dividend

2) Productivity

Higher capacity utilization & generation of internal recourses division. System To ensure optimum utilization of all the facilities Created for manufacture of railway signaling To realize greater operational efficiency improved productivity. To ensure optimum utilization of all the facilities in manufacturing

3) Customer
o o To achieve & maintain high degree of customer satisfaction with timely delivery. 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) (b) (c) Type of Research Unit Identification Sampling

Data collection

Data Analysis and representation

Interpretation of the result

Suggestation

TYPES OF RESEARCH

There are various types of research like: 1) 2) 3) 4) Descriptive v/s analytical Applied v/s fundamental Quantitative v/s qualitative 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. 2. 3. 4.

Observation Method Interview method Questionnaires 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. 2. 3. 4. 5. Newspapers and Journals Market Reports Government Publications Book Magazines 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

% of investment

Securities

30%

25%

1) central government securities 2) state government securities

15% 30%

3) bonds of public sector bank 4)investment in any of the above securities

EMPLOYEES 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 Employees Pension Scheme Government has taken a praise-worthy step, which will be a landmark in the history of industrial workers welfare. An Employees Pension Fund has been created for this purpose by diverting a portion of the employers contributions to the provident fund.

For example: Suppose the salary of an employee is Rs.10000 per month. Employers 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 employees pension fund and remaining 659 (1200-541) remains in the employees 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.

applies.

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

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 criterias: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

 of the pension to 2 children (upto 25 years age)

remaining of the pension

DATA ANALYSIS AND INTERPRETATION

(a) Membership of employees provident fund in MWIL.
Year Members

2008-2009 2009-20010 2010-2011 2011-2012

573 553 292 291

MEMBERSHIP OF EMPLOYEES PROVIDENT FUND IN MWIL 700 600 500 400 300 200 100 0 20082009 20092010 20102011 20112012
MEMBERS

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 2008-2009 2009-2010 2010-2011 2011-2012

Members 282 265 275 274

MEMBERSHIP OF EMPLOYEES PENSION SCHEME 295 290 285 280 275 270 265 260 255 250 20082009 20092010 20102011 20112012

MEMBERS

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 2008-2009 2009-2010 2010-2011 2011-2012

Employees Contribution 3695569 3538038 3951997 4399927

Employers contribution 1740215 1563839 1624361 1763639

Total 5435784 5101877 5576359 6163567

CONTRIBUTION TO EMOLPYEES PROVIDENT FUND

20000000 18000000 16000000 14000000 12000000 10000000 80000000 60000000 40000000 20000000 0 1 2 3 4 5 6
YEAR 2008-2009 2009-2010 2010-2011 2011-2012

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.

Year

Amount in pension scheme 152440 140667 140628 141381

2008-2009 2009-2010 2010-2011 2011-2012

AMOUNT IN PENSION SCHEME IN MWIL

180000 160000 140000 120000 100000 80000 60000 40000 20000 0 YEAR 20082009 20092010 20102011 20112012

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: 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 Employers 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. 2. 3. 4.

Name of the employee Name of the organization Address of the employee 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 products 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