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Introduction to Engineering Industry in India

The Engineering sector is the largest in the overall industrial sectors in India. It is a diverse industry with a number of segments, and can be broadly categorised into two segments, namely, heavy engineering and light engineering. The engineering sector is relatively less fragmented at the top, as the competencies required are high, while it is highly fragmented at the lower end (e.g. unbranded transformers for the retail segment) and is dominated by smaller players.

The engineering industry in India manufactures a wide range of products, with heavy engineering goods accounting for bulk of the production. Most of the leading players are engaged in the production of heavy engineering goods and mainly produces high-value products using high-end technology. Requirement of high level of capital investment poses as a major entry barrier. Consequently, the small and unorganised firms have a small market presence.

The light engineering goods segment, on the other hand, uses medium to low-end technology. Entry barrier is low on account of the comparatively lower requirement of capital and technology. This segment is characterised by the dominance of small and unorganised players which manufacture low-value added products. However, there are few medium and large scale firms which manufacture high-value added products. This segment is also characterised by small capacities and high level of competition among the players.

User Segments

The major end-user industries for heavy engineering goods are power, infrastructure, steel, cement, petrochemicals, oil & gas, refineries, fertilisers, mining, railways, automobiles, textiles, etc. Light engineering goods are essentially used as inputs by the heavy engineering industry.

Key Growth Drivers of Indian Engineering Sector

The engineering sector in India has been growing on the back of growth in the user industries and several new projects being undertaken in various core industries such as railways, power, infrastructure, etc. Capacity creation in sectors such as infrastructure, oil & gas, power, mining, automobiles, auto components, steel, refinery, consumer durables, etc, is driving growth of the engineering industry.

Growth of the key user-industries

Government’s thrust on the power and construction industries

India being preferred by global companies as an outsourcing destination as it enjoys lower labour cost and better designing capabilities

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Heavy Engineering Sector

The heavy engineering sector can be classified into two broad segments – capital goods/machinery (which is further classified as electrical machinery/equipment and non-electrical machinery/equipment), and equipment segments.

Electrical machinery includes the following: power generation, transmission and distribution equipments such as generators and motors, transformers and switchgears. Non-electrical machinery includes machines/equipments used in various sectors such as material handling equipments (earth moving machinery, excavators, cranes, etc), boilers, etc.

Heavy Electrical Industry

The fortunes of the heavy electrical industry have been closely linked to the development of the power sector in India. The heavy electrical industry has under its purview power generation, transmission, distribution and utilisation equipments. These include turbo generators, boilers, turbines, transformers, switchgears and other allied items. These electrical equipments (transformers, switchgears, etc) are used by almost all the sectors. Some of the major areas where these are used include power generation projects, petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units, etc.

The existing installed capacity of the India heavy electrical industry is 4,500 MW of thermal, 1,345 MW of hydro and about 250 MW of gas-based power generation equipment per annum. The industry has the capability to manufacture transmission and distribution equipment upto 400 KV AC and high voltage DC.

The Heavy Electrical Industry can be classified into the following product categories:

1. Turbines and Generator Sets

The Indian industry has established a manufacturing capacity of various kinds of turbines of more than 7,000 MW per annum. The PSE Bharat Heavy Electricals Ltd (BHEL) has the largest installed capacity. There are units in the private sector also which manufacture steam and hydro turbines for power generation and industrial use. Domestic manufacturers of AC generators are capable of manufacturing AC generator from 0.5 KVA to 25,000 KVA and above.

2. Boilers

The Indian boilers industry has the capability to manufacture boilers with super critical parameters upto 1,000 MW unit size. BHEL is the largest manufacturer of boilers in the country, with a market share of over 60%. It has the capability to manufacture boilers for super thermal power plants, apart from utility boilers and industrial boilers.

3. Transformers3

The domestic transformer industry has the capability to manufacture the whole range of

power and distribution transformers. Special types of transformers required for furnaces, rectifiers, electric tract, etc, and series and shunt reactors as well as HVDC transmission upto 500 KV are also being manufactured in India.The Indian transformer industry exports to over 50 countries including the US, Europe, South Africa, Cyprus, Syria, Iraq, and Far East countries. During FY05, exports of transformers rose by 15.4% to Rs 8,983 mn, which came on top of the sharp 39% jump in exports during the preceding year.

4. Switchgear and Control Gear

The switchgear and control gear industry in India is a fully developed one, producing and supplying a wide variety of switchgear and control gear items required by the industrial and power sectors. The entire range of circuit breakers from bulk oil, minimum oil, air blast, vacuum to SF6 are manufactured to standard specification. The range of products produced cover the entire voltage range for 240V to 800KV, switchgear and control gear, MCBs, air circuit breakers, switches, rewireable fuses and HRC fuses with their respective fuse bases, holders and starters.

5. Electrical Furnaces

Electrical furnaces are used in Metallurgical and engineering industries such as forging and foundry, machine tools, automobiles, etc.

6. Shunting Locomotives

Shunting locomotives for internal transport facilities are essentially used in railways, steel plants, thermal power plants, etc.

Most items produced compare functionally with those manufactured elsewhere in the world, but lag behind as far as finish is concerned

Focus/investment in branding and marketing and customer orientation is low

Classification of the Heavy Engineering and Machine Tool Industry as per the Department of Heavy Industries and Public Enterprises:

1. Textile Machinery Industry

The textile machinery industry in India manufactures machinery needed for sorting, cording, processing of yarns/ fabrics and weaving, along with the components, spares and accessories. As per the Ministry of Heavy Industries, there are over 600 units engaged in the manufacture of machinery and spares, and out of these, about 100 units are manufacturing complete machinery.With the buoyant outlook on textile exports, the Indian textile machinery industry is gearing itself to take advantage of the vast opportunities of supplying machines required to cater to export target of garment manufacturers, post the Multi Fibre Arrangement.

2. Cement Machinery Industry

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The Indian cement machinery industry manufactures complete cement plants, based on dry

processing and pre-calcination technology, for capacities upto 7500 TPD. The existing installed capacity of the industry is estimated to be Rs 6 bn/annum. According to the Ministry of Heavy Industries, presently there are 18 units in the organised sector for the manufacture of complete cement plant machinery.

3. Sugar Machinery Industry

As per the estimates of the Ministry of Heavy Industries, there are presently 27 units in the organised sector for the manufacture of complete sugar plants and components. The industry’s installed capacity is estimated to be Rs 200 crores. The industry can manufacture sugar plants for a capacity upto 10,000 TCD (tonnes crushing per day). India is a net exporter of sugar machinery. The following table shows the growing exports during FY03-FY05:

4. Rubber Machinery Industry

The rubber machinery industry in India manufactures inters-mixer, tyre curing presses, tyre moulds, tyre building machines, turnet servicer, bias cutters, rubber injection moulding machine, bead wires, etc. According to the Ministry of Heavy Industries, currently there are 19 units in the organised sector for the manufacture of rubber machinery mainly required for tyre/tube industry.

5. Material Handling Equipment Industry

The Indian material handling equipment industry manufactures a range of equipments including crushing and screening plants, coal/ore/ash handling plant and associated equipment such as stackers, reclaimers, ship loaders/unloaders, wagon tipplers, feeders, etc. The industry caters to the requirement of a host of core industries such as coal, cement, power, port, mining, fertilizers and steel plants. The Ministry of Heavy Industries estimates the presence of 50 units in the organised sector for the manufacture of material handling equipments. Apart from the organised players, there are a number of units present in the small scale sector.

6. Oil Field Equipment Industry

The oil field equipment manufacturing industry manufactures drilling rigs for on-shore drilling. Offshore drilling equipments like jack-up rigs, etc are not manufactured indigenously. The industry however manufactures offshore platforms and certain other technological structures domestically. Bharat Heavy

7. Metallurgical Industry

According to the Ministry of Heavy Industries, currently there are 39 units in the organised sector which are engaged in the manufacture of metallurgical machinery. Metallurgical machinery includes equipments for mineral beneficiation, ore dressing, size reduction, steel plant equipments, foundry equipments and furnaces.There being a technological gap in the basic design and engineering for plants and equipments in the ferrous and non-ferrous sector, the domestic manufacturers depend on imported technological know-how.

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8. Mining Machinery Industry

The various type of mining equipments include Long wall mining equipments, road header, side dischargers loader, haulage winder, ventilation fan, load haul dumper, coal cutter, conveyors, battery locos, pumps, friction prop, etc. The Ministry of Heavy Industries estimates the presence of 32 manufacturers of mining machinery both in the public and private sector for underground and surface mining equipments. Out of these, 17 units manufacture underground mining equipments. Exports of mining machinery were observed to be negligible, as compared to their imports.

9. Dairy Machinery Industry

The Indian dairy machinery manufacturers produce a range of equipments including stainless steel dairy equipments, evaporators, milk refrigerators and storage tanks, milk and cream deodorizers, centrifuges, clarifiers, agitators, homogenisers, spray dryers and heat exchangers (tubular and plate type), etc. As per the Ministry of Heavy Industries, presently there are 16 units manufacturing dairy machinery and equipment in the organised sector, both in private and public sector.

10. Machine Tool Industry

The machine tool industry is regarded as the backbone of the entire industrial engineering industry. The Indian machine tool industry manufactures almost the entire range of metal-cutting and metal-forming machine tools. Apart from conventional machine tools and Computer Numerically Controlled (CNC) machines, the Indian industry also offers other variants such as special purpose machines, robotics, handling systems, and TPM-friendly machines.

Leading Players in Machine Tools Industry

Light Engineering Industry

The Indian light engineering industry is highly diversified, comprising of a number of distinctive sectors and sub-sectors. The product range in this industry varies from highly sophisticated microprocessor based process control equipment and diagnostic medical instruments to low-tech items such as castings, forgings, and fasteners, among others. The sector also includes products such as bearings, steel pipes and tubes, etc. Most of the products in the light engineering industry serve as inputs for the capital goods industry. The health of the light engineering industry is therefore dictated by the demand for capital goods.

The major sub-segments within this industry are:

1. Medical and Surgical Instruments

The medical and surgical instruments segment includes a wide array of equipments and apparatuses. These include medical and surgical instruments, dental equipment, electro-medical apparatus, orthopaedic appliances, physiotherapy equipments, X-ray machines,

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among others. These instruments find application in diagnosis, therapy, and patient monitoring and thus play a crucial role in the healthcare delivery system.Output of the Indian medical and surgical instruments industry, which is around four decades old, was very small until a few years back. In recent years, liberalisation and growing health awareness has accelerated the growth of the domestic industry and also led to a rise in imports of medical and surgical instruments into India. Domestic production comprises of wide range of medical equipment including Electro-Cardiograph (ECG) machines, X-ray machines, electro-surgical instruments, blood chemistry analysers, among others. The domestic industry meets around 40% of the demand for medical equipment, while the rest is met through imports. Demand for sophisticated instruments such as nuclear magnetic resonance (NMR) scanners, multi channel monitors, among others are met through imports. Majority of the end-users prefer to deal with foreign companies, as Indian manufacturers who are concentrated in the small-scale sector are not able to provide after sales service. Exports and imports of medical and surgical instruments were Rs 14.3 bn and Rs 28.7 bn respectively.

2. Process Control Instruments

Process control instruments and systems are instruments and systems used for measurement and control of process variables. Process variables are physical or chemical parameters, the variations of which can affect the operation of a manufacturing process. These variables include humidity, pressure, temperature, liquid level, flow, vacuum, vibration, specific gravity, and chemical composition including pH, among others. Use of process control instruments and systems is highly significant in large and sophisticated process industries such as fertilisers, power plant, steel, cement plants, petroleum refineries, and petrochemical industries, among others.

The industry is delicensed and 100% FDI is permitted in this sector. There are 26 units in the organised sector engaged in the manufacture of process control instruments and systems. Seven of these 26 units are capable of implementing the entire instrumentation system including software required by the process industries. The domestic manufacturers meet around two-thirds of India’s demand for process control instruments and systems.

Transfer of technology has been the major cornerstone for the development of the domestic process control instruments and system industry. There exists a gap between technology adopted in India and contemporary international technology. Technology presently used in the Indian industry is microprocessor based centralised control system. The Indian industry is capable of handling open control systems and smart control devices; however, latest developments such as total integrated management and control approach, which are currently being adopted in the developed countries, are yet to be adopted in the country.

3. Antifriction roller bearing

Roller bearings are components used to reduce or eliminate friction between moving parts and thus reduce wear & tear of machines. They help improve machine performance and are thus a critical component of any equipment that rotates. It finds varied application, ranging from simple electric fans to complex space rockets. Depending on its usage, a bearing may have to withstand prolonged use, high-speed rotation, varied temperatures, or a corrosive environment. Bearings are available in two distinctive shapes, ball, and roller. There are four

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different types of roller bearings – cylindrical roller bearings, needle roller bearings, tapered roller bearings and spherical roller bearings.

The Indian bearing industry has recorded good growth in the past few years. The Indian manufacturers are able to meet around 70% of the demand for general purpose bearings. The Indian bearing industry’s product range comprises of around 500 types of bearings. Indian manufacturers do not produce special purpose bearings as demand for the same is low and investments required are huge as bearings is a capital intensive industry,. Special purpose bearings are therefore imported.

The bearings industry is highly fragmented. There are around 20 units in the organised sector engaged in the manufacture of ball and roller bearings. The organised sector caters to both the original equipment manufacturers and replacement market. The unorganised sector, which manufacturers low quality small bearings caters to the replacement market. The manufacturing activity of a few small-scale units is restricted to assembly of imported components.

4. Industrial Fasteners

Industrial fasteners cover a wide range of products such as nuts, screws, bolts, studs, rivets, nails, washers, etc. Fasteners can be broadly classified into two groups, high tensile strength fasteners, and mild steel fasteners depending on their tensile strength. Manufacturer of high tensile fasteners requires superior technology and are mainly manufactured in the organised sector, while, manufacturing of mild steel fasteners is concentrated in the unorganised sector. In fact, manufacture of all types of fasteners except high tensile fasteners and special purpose fasteners are reserved for the SSI sector. Fasteners are used in the assembly of engineering systems.

The automobile industry is the largest consumer of fasteners. The other major user-segments are textile machinery, railway locomotives, construction, computer hardware and general engineering. There exists huge export potential for Indian industrial fasteners; however, poor product standardisation, relatively higher raw material costs, and low labour productivity make Indian fasteners less competitive in the global market.

5. Ferrous Castings

Ferrous castings constitute essential intermediates for automobiles, industrial machines, power plants, chemicals & fertiliser plants and cement plants, among others. They are therefore vital for the growth and development of the engineering industry. The domestic industry is well established. Being a highly polluting industry, many of the developed countries are withdrawing from this industry. This gives rise to a huge export potential for Indian manufacturers. To capitalise on this export demand, leading manufacturers have undertaken modernisation and up gradation of their manufacturing facilities to improve productivity and product quality and also economise on production costs. Given the wide spread usage of castings across industries and huge export potential, there exists considerable scope for establishing additional capacity in this area.

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6. Steel Forgings

The forging industry has emerged as one of the major contributors to the manufacturing sector of the Indian economy. Depending on the scale of operations, the industry can be categorised as large, medium, small, and tiny. SMEs comprise a major portion of this industry. The industry consists of around 330 odd units, of which there are around 100 units in the medium and small sector, and only around 9-10 units are present in the large scale. There are huge numbers of units functioning in the tiny sector.

Increasing globalisation has led to sharp rise in investments in the sector. This has led to the industry becoming capital intensive from being labour intensive. Total investment in the large and medium sectors of the forging industry is estimated to be around US $ 600 mn. To expand their markets and have a global reach, the small-scale units are also increasing their capital investments. The small-scale units have upgraded their facilities in terms of technology and quality and a number of them are now suppliers to Original Equipment Manufacturers (OEMs) in the automobile sector. The automotive industry is the major end-user of the forging industry. The other user industries include industrial machines, railways, oil & gas, power plants, and chemical plants, among others.

7. Seamless Steel Pipes & Tubes

Seamless steel pipes & tubes find widespread usage in the hydrocarbon industries, processing & general engineering industries. Boiler pipes, as the name suggests are used in boilers, heat exchangers, super heaters, among others, while casing & tubing are used for drilling of oil and gas. Seamless pipes find application in industries where strength, resistance to corrosion and long shelf life are critical. The industry is delicensed and 100% FDI is permitted in the sector under the automatic route.

The oil sector is the major end-user segment of seamless pipes & tubes. The other user segments include boilers, ball bearings, automobiles, chemical plants, fertilisers, petrochemical plants, industrial machinery, among others. The oil sector accounts for around 60% of total demand, while, the bearings, automobiles, and boiler sector account for around 30% of total demand. There could be a significant shift in the demand pattern for seamless pipes and tubes due to the robust growth expected in the power and automobile sectors.

8. Electrical Resistance Welded (ERW) Steel Pipes & Tubes

ERW steel pipes & tubes find widespread usage across industries and fields. In addition to various engineering industries, they are used for water, oil and gas distribution, line pipes, fencing, scaffolding, etc. They are also used for agricultural purposes, drinking water supply, thermal power, for hand pumps for deep boring wells and also as protection for cables (telecom), among others. Depending on the requirement of the end user industry, ERW steel pipes & tubes are available in various wall thicknesses, diameters, and qualities. The different types include line precision pipes, tubular poles, electric poles, lightweight galvanised pipes for sprinkler irrigation, among others. The industry has sufficient capacity to manufacture the different types of pipes & tubes. High performance ERW steel pipes & tubes possess high strength, toughness and are corrosion resistant.

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In the manufacturing process of ERW steel pipes & tubes, the edges to be welded are mechanically pressed together and electric resistance or electric induction is used to generate the heat required for welding. With the adoption of better welding technology, ERW pipes & tubes are now widely used in the oil & gas sector. A number of ERW steel pipes & tubes production units are in the SSI sector. Higher demand from the oil & gas industry, infrastructure, and automobile industries has led to a healthy increase in production of ERW steel pipes.

9. Submerged-Arc Welded (SAW) Pipes

SAW pipes are mainly used for oil & gas transportation and water distribution. SAW pipes are of two major types, longitudinal and helical welded SAW pipes. The later are used for low-pressure application, while longitudinal SAW pipes are preferred for high-pressure application such as gas pipes. Longitudinal SAW pipes are more than 25 mm in thickness. In terms of production costs, it costs less to manufacture helical SAW pipes as compared to longitudinal SAW pipes. In the manufacturing process of submerged-arc welded pipes, the heat necessary to melt the edges of metal to be joined together is generated with the help of a concealed arc with no pressure between the two sides of the weld..

10. Typewriters

Computers have largely replaced typewriters. In line with the falling demand, production of typewriters has declined in the last few years. The manufacturers in the organised sector are capable of manufacturing the entire range of typewriters including electronic typewriters. Domestic producers are able to meet the demand for typewriters in the country. There exists a huge potential for exports of typewriters to the developing countries. During FY05, imports and exports of typewriters stood at Rs 3.2 mn and Rs 77 mn respectively.

11. Bicycle Industry

The Indian bicycle industry can be categorised into two segments, those manufacturing bicycle parts, and those manufacturing complete bicycles. Majority of bicycle parts and components are manufactured in the small-scale sector, since most of the components other than free wheels and single piece hubs are reserved for the small-scale sector. Large units are permitted to manufacture bicycle frames, chains, rims, and that too only for captive consumption. Complete bicycles are manufactured in the organised sector. Four companies account for over 90% of total bicycle production in the country.

12. Sewing Machines

In India, the manufacture of conventional hand operated sewing machines is reserved for the small-scale sector. Domestic demand for these is fully met by the Indian manufacturers. There exists a huge potential for exports of sewing machines to developing countries.

13 . Plain Paper Copier

Plain paper copier, a device used for reproducing copies of documents, typescripts, photographs, among others has become a very important office automation device. At

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present, there are only 12 units in the country manufacturing this device and most of them have technical collaboration with foreign companies. The introduction of the low priced personal copier has altered the demand pattern for plain paper copiers. The personal copiers are more user friendly and come with customer replaceable toner cartridge and plate receptor drums.

Outlook

We expect demand in the engineering sector to remain healthy primarily on account of the Government’s increased thrust on infrastructure development. The continuing growth of the manufacturing sector and favourable regulatory policies would provide further boost to the sector’s growth. Fresh investments in the power equipment, metals, oil & gas, and petrochemicals industries, coupled with robust industrial activity is expected to drive the growth momentum in the capital goods industry in the near term.

Investment projects worth Rs 218.6 bn were outstanding, as at the end of January 2007, in the electrical and non-electrical machinery industry. The sharp increase in investments (announced/ proposed/under implementation) witnessed during the last 1 year or so, indicates the buoyant demand outlook on the user-industry, and thereby on the future prospects of the machinery industry.

 

 

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INTRODUCTON TO WINDSOR MACHINES

LIMITED

The company set up operations at Thane (near Mumbai) in 1964, under collaboration from R. H. Windsor of U.K. In 1984, it became a part of worldwide operations of Klockner-Werke, Germany and renamed as Klockner Windsor India Limited. Subsequent to the disinvestment of equity by Klockner to Mr. Dilip G. Piramal in 1994, the Company was named as DGP Windsor India limited.  Since 2005, the company has been rechristened as WINDSOR MACHINES LIMITED.

In 2008, the company underwent a major transformation when Kundalias took over the reins to revive the company and restore it to its rightful position.  Under the visionary leadership of Mr. Prakash Kundalia, the company rose like a phoenix with a new sense of purpose, urgency and hitherto unknown vitality.   The company turned around in the very first year, becoming profitable and set out to fulfil its destiny of being the leader in the plastic processing machinery industry.  In the year 2009-2010 we crossed a turnover of Rs. 200 crores with more than 100% growth and are poised to maintain the pace.

Our continued association with Kuhne GmbH (Germany) and the new relationship established with Italtech (Italy) has enabled us to move rapidly and bridge the technology gap. Clear vision, focus, direction and leadership from the new management have given us the thrust to launch into a new orbit. Investments in up-gradation of infrastructure, machinery, technology, human resources, research and development are the key areas of focus today.

Our philosophy of working for customers' profits and being a machinery supplier with lowest running cost (per kilo of polymer processed) have resulted in wide acceptance by the industry. Today, we have an installed global base exceeding 15,000 machines.  

PIPE EXTRUSION

Veterans in the industry would definitely recollect our first generation models like RC100, TSC65 and TSC80. We are proud to say that these lines are still running successfully even after four decades. In the 90's, came the KTS series of PVC pipe plants with higher L/D ratios and relatively higher outputs. These were the second generation models with 18-22 L/D ratios. Further in the new millennium, our third generation extruders with L/D ratios going upto 28:1 are introduced. We have introduced usage of European gear boxes in the higher models. These extruders are competing with the global brands in terms of reliability, aesthetics, power optimization and rigidity.

In polyethylene segment (PE), we have taken a lead by developing the first 1200 kg/hr extruder in India. Currently we offer a complete range of machines, catering to the varied needs of the industry.

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Windsor is known for its traditional expertise in Dies – both PVC and PE. Today, we have mastered the "Multiple Die" concept, which ensures highest possible outputs in smallest sizes.

Windsor has recently entered into a technical collaboration with KUAG, Austria to manufacture post extrusion equipment. With Recent developments in the area of specialised pipe applications like CPVC, PVDF & ABS the company has joined a premier league of suppliers.

BLOWN FILM EXTRUSION

Windsor's leadership in blown film line is endorsed since 1992 when we got the collaboration license from KUHNE GmbH. This association gave us the technological edge and become the first choice.

Like any other industry; maintaining the pinnacle position called for continued innovations. We successfully executed several premium projects, offering the best value and performance. We can offer Total Solutions to our customers from product sourcing, designing to training. Today, we are known as a "Solution provider" with latest knowledge rather than an equipment supplier.

Our present product programme enables us to offer lines up to 3 meters width and an output of 800 kg/hr with full automation. We have reinvented the machines, optimizing the operational costs and thus, resulting in higher returns for our customers.

INJECTION MOULDING

Windsor's leadership in Injection Molding line is endorsed since its inception in 1964, when we started the company in collaboration with R.H.Windsor, UK.

In 1997, we entered into a Technical Collaboration agreement with "Sumitomo", Japan and upgraded our entire range of injection moulding machines. Our product range was categorized into Toggle type machines (50 – 350 Tons) and Hydro-mechanical machines (100 – 1300 Tons).

In 2010, we have obtained from "Italtech" (Italy) – a reputed European injection moulding machinery manufacturer, the technology for higher tonnage machines.

Today, our Injection molding division offers a complete range of products, starting from 100 Tons to 2000 Tons with hydro-mechanical and toggle clamping technology. Our hydraulic technology encompasses the range from Variable delivery pump to the latest Servo motor technology. We cater to a wide segment of industries spanning across Houseware, Furniture, Packaging, Automobiles, Electrical / Electronics and Fittings (RPVC and CPVC) with focus on energy efficiency.  

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VISION

To be a Market leader in plastic processing machinery industry – thinking innovatively and providing measurable solutions to our customers.

To be a global organization – having holistic concern for its employees, stakeholders, and society; striving to generate optimum value for all by adopting the best global practices.

To be an institution with a conscience and horizon – working in harmony with nature to reduce the carbon footprint.

Mission

Continuously excel to achieve and maintain leadership position in the chosen businesses; and

delight all stakeholders by making economic values in all corporate functions.

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MILESTONES

1964 – Commenced operation at Thane (near Mumbai) in collaborations with RH Windsor of UK.

1984 – Klockner Werke of Germany takes over and renames as Klockner Windsor India Limited.

1985 – Extrusion business started at Vatva (Ahmedabad).

1988 – Second plant for Injection Molding machinery started at Chhatral (Ahmedabad).

1994 – Klockner Disinvests equity to Mr.Dilip Piramal and company was renamed as DGP Windsor India Limited.

2005 – Renamed as Windsor Machines Limited.

2008 – Mr.Prakash Kundalia comes on board and sets the course for the future with a new vision and dynamic leadership.

2009 – Participation at Plast India 2009, Delhi.

2010-11 – Poised for exponential growth

-Technology Transfer Agreement signed with Italtech (Italy) for higher tonnage machines. -Relationship with Kuhne strengthened, with manufacturing of first Hybrid machine. -Participation in K- show 2010, Dusseldorf, Germany.

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PRODUCTS OF WINDSOR MACHINES LIMITED

BLOWN FILM LINES

CROWN Series - Monolayer Blown Film Plant

Crown Monolayer Blown Film Plant gives high output up to 280 kg/hr with thickness ranging from 8 microns to 150 microns and a maximum film width of 2500 mm.

General Applications

» Shopping bags, Grocery bags, T-shirt bags ect.» Liners & lamination film for aluminium foil, jute paper and board» Liner for woven sacks, Cans and other industrial needs» Refuse bags, diaper films, packaging of diary products» Green house films, packaging of frozen foods» Bags and Pouches for fruits, Vegetables, Groceries, Refuse bags ect» Wrappers for food products, Laundry ect.» Heat sealed sterilized packages for surgical instruments» Health Care packaging» Garment bags and fresh producing packaging» Courier bags

DUKE Series (Non IBC) - Three Layer Blown Film Co-Extrusion Lines

Duke was the first model of Multilayer co-extrusion Blown Film Plant manufactured in India with German technology way back in 1994. This non IBC three layer line works with effective “layer ratio concept.” The maximum

output is 250 kg/hr with a film width of 2100 mm. Extruder range: 50 mm, 55 mm & 60 mm. Winder capacity 800 mm dia x 400 kg weight of the film roll.

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General Applications

» Milk film» Tea packaging» Rice packaging» Tomato catch up packaging» Liquid packaging» Oil film» Lamination film» Stretch cling film

REX Series (IBC) - Three Layer Blown Film Co-Extrusion Lines

REX is the first of its kind Multilayer Co-extrusion Blown Film Plant manufactured in India in technical collaboration with Kuhne GmbH in 1997. This IBC three layer co-extrusion blown film line works with effective Layer Ratio Concept with output of maximum 650 kg/hr & with maximum film width of 2700mm. Fully automatic winder with auto change over of rolls, capacity 1000mm dia x 1000 kg weight of the film roll & maximum line speed of 150. Range of Extruders: 55mm, 60mm, 75mm, 90mm & 120mm

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General Applications

» Milk film» Tea packaging» Rice packaging» Tomato catch up packaging» Liquid packaging» Oil film» Lamination film» Stretch cling film

BARON Series (Non IBC / IBC) - Five Layer Blown Film Co-Extrusion Lines

An excellent Five Layer co-extrusion Blown Film Plant with optional IBC and non IBC made in technical collaboration with Kuhne GmbH which is capable of processing Nylon & EVOH. Change over from five layer to three layer film with minimum wastage output ranging from 150 to 300 kg/hr on five layer film, 150 to 350 kg/hr on three layer film.

General Applications

» Frozen meat and fish packaging» Edible oil packaging» Coffee packaging» Almond oil packaging» Pickle packaging» Ghee packaging» Hair oil packaging

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PIPE EXTRUSION LINES

KTS Series - Twin Screw Pipe Extrusion Lines for PVC

PVC being a heat sensitive material necessitates a very controlled temperature during processing. This is best possible with closely intermeshing twin screw extruder with relatively less power as compared to single screw. Windsor twin screw extruders are known for the power optimisation and are offered in the range from 110 kg/hr up to 900 kg/hr.

General Applications PVC

» Supplying potable water for rural and urban places» Casing and column pipes for bore well» City sewage Pipes» Domestic plumbing» Effluent discharge lines» Electrical conduits» Sprinkler irrigation system» Inside housing telecom connections

Downstream for Twin Screw Extruder for PVC

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Die Head PVC Processing

Multiple Pipe Die Head with Single Downstream Equipment

 Cooling Tank for Single Downstream Equipment

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Cooling Tank for Dual Downstream

Traction Unit for Single Downstream

Traction Unit for Dual Downstream

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Cutting Unit for Single Downstream

Cutting Unit for Dual Downstream

Planetary Cutting Unit (PCU)

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LX Series - Single Screw Pipe Extrusion Lines for PE/PPR/ABS

PPR Pipe Extrusion Line

Downstream for Single Screw Extruder for PE/PPR/ABS

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Die Heads Polyolefin Processing

 Cooling Tank for Single Downstream Equipment

Traction Unit for Single Downstream

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Cutting Unit for Single Downstream

Tube Cutting Unit (TCU):

Planetary Cutting Unit (PCU)

Coiling Unit

 

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BLOW MOULDING

KBM Series - Blow Moulding

General Applications

» Edible oil packaging» Lubricants packaging» Packaging of drinking water» Pharmaceuticals packaging» Chemicals packaging» Pesticides and insecticides packaging » Automobile components» Toys

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ORGANIZATIONAL STRUCTURE

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Business Head

DGM[Sales & Mktg]

Manager

Asst.Manager

Executive

Sr.Officer

Officer

DGM[Spares]

Manager

Asst.Manager

Executive

Sr.Officer

Officer

DGM[Design]

Manager

Asst.Manager

Executive

Sr.Officer

Officer

DGM[Mfg.]

Manager

Asst.Manager

Executivw

Sr.Officer

Officer

DGM[Finiance]

Manager

Asst.Manager

Executive

Sr.Officer

Officer

29

Basics of Human Resources Management

Definition of Human Resource Management (HRM)

Some of the important definitions of ‘Human Resource Management’ made by eminent management thinkers are given below:

a)“Human Resource Management is basically concerned with the task of procuring, developing, maintaining, and utilizing the manpower resource effectively, so that the objectives of the enterprise can be realized”.

b)”HRM is that part of management process which is primarly concerned with the human constituents of an organization” – E.FL.Brech.

Scope/Goals of Human Resorce Management

The scope of Human Resource Mnagement is vast. It covers all the activities in the working life of an employee.The activities that come under the purview of Human Resource Management are:

a) Human Resource Planning : This element involves determining the organizations human resource needs, strategies and philosophies. It involves analysis of the internal and external factors like skills needed, number of vacancies, trends in the labour market etc.

b) Recruitment and Selection : Recruitment is concerned with developing a pool of candidates in line with the human resource plan.

Selection is the process of matching people and their career needs and capabilities with the jobs and career paths. It ends with the ultimate hiring of a candidate.

c) Training and Development: This involves identification of individual potentialities and helping in the development of key competencies through planned learning process. The competencies are to be developed to enable individuals to perform current as well as future jobs.

d) Organizational Development: This element assures healthy inter and intraunit relationships. It helps work groups in initiating and managing change.

e) Career Development: It is assuring an alignment of the management. It is a process of achieving an optional match of individual and managing change.

f) Job design: This element defines the tasks, authority and system of a job. It is a process of achieving an optional match of individual and organizational needs.

g) Performance Management Systems: The performance management system ensures linkages between individual and organizational goals. It aims at ensuring that every individual’s efforts and actions support the goals of the organization.

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h) Compensation and Benefits: This element focuses on a fair, consistent and equitable compensation and benefits to the work force.

i) Employee Assistance: The focus of this element is to provide problem solving / counselling to individual employees. The purpose is to help employees in overcoming personal and job-related problems.

j) Labour Relation: This variable assures healthy union-organization relationship. It aims at creating an environment of industrial peace and harmony.

k) HR Research and Information Systems and Audit: This elements ensures a reliable and proof HR information base. It not only evaluates personnel policies and programmes but also highlights the need and areas of change.

Nature of Human Resource Management

a) It is universally relevant: Effective management of HR should be performed right from the household level to a government. This point is proved by the fact that the Government of India has created a separate ministry called the ‘Ministry of HRD’.

b) It is Goal –oriented: The goal of HRM is to make the best use of available manpower resources of the organization. Only then, it will be possible to achieve the ultimate goal of the organization, that is, the targeted level of profits in case of a business organization.

c) It adopts a systematic approach in handling the manpower resource: HRM follows a systematic approach to manage the HR of an organization. This

is done by the performance of two sets of functions; namely managerial functions and operative functions, as discussed earlier.

d) It is pervasive in nature: Management of HR is a task performed at different levels. In a business concern, the need for effective management of the manpower resources is felt in all functional areas, i.e. production, marketing, finance and research.

e) It is an ongoing activity: It is a continuous activity. As long as the manpower resources are needed in any place the importance of its management will be felt.

f) It is a dynamic field of activity: Management of HR is perhaps the most challenging task of every manager. This is because, HR has certain peculiar characteristics. People have feelings and therefore they cannot be handled in the way inanimate things such as machines are handled.

g) It focuses on the development of manpower resource: HRD is a part of HRM. Development of the manpower resource through training programmes is as important as its procurement. In an organization, only the HR can be trained to acquire greater skills.

h) It is a science as well as an art: The subject HRM is both; a science and an art. As a social science it relies on experiments and observations for making conclusions. As an art, it

31

requires the managers to have certain special skills for effective handling of the manpower resources.

i) It is interdisciplinary: HRM makes the use of the concepts of subjects such as sociology, psychology and economics. Hence, it is interdisciplinary in nature.

j) It is relatively news: HRM is a new subject. It was popularly known by the name personnel management. After it became HRM its scope widened.

Importance of human Resource Management

Right kind of person, right job, right number at right time.

It helps the organization to identify its manpower needs correctly.

It ensures that the organization does not suffer from either surplus or shortage of manpower.

It facilities the selection of right man for the right job.

It focuses attention on the development of the extra qualities of individual to make them upto date.

It recognizes the need for performance appraisal of the employees.

It considers the need to provide incentives to the employees, who perform well.

It gives the highest importance for securing a favourable employee attitude.

It emphasizes the need for good human relation in every work place, conflicts are unavoidable but such conflicts should not be used to damage the interpersonal relationships.

It provides the scope for collective bargaining. The employee should encourage the employees to form a can get the benefits of collective bargaining.

Functions of Human Resource Management

The Functions of Human Resource Management can be classified as:

1. Managerial functions

2. Operative functions

Managerial Functions32

The managerial functions of Human Resource Management are as follows:

a) Planning: Planning means deciding in advance what should be done. It helps to work in a systematic manner and should be done. It helps to work in a systematic manner and eliminates the need of working at random. Planning involves determining the need of working at random, strategies, programmes, and budgets. In the context of Human Resource Management, planning is necessary to determine the manpower needs of the enterprise. This ensures that

at any given point of time, right numbers of individuals are employed in the different departments of the enterprise. It also ensures that there is no problem of either surplus or shortage of labour. Human Resource planning is also vital to formulate suitable personnel policies and programmers.

b) Organizing: Organizing involves the performance of the following tasks:

I. Division of work among employees (assignment of duties)II. Delegation of authority ( transfer of official rights by a superior to his subordinate)

III. Creation of accountability (the subordinate, to whom the work has been assigned and authority has been delegated, is questioned for the progress of work).

c) Directing: Directing the Human Resource does not mean the process of issuing mere orders and instructions to the subordinates’ staff. It is the process of supervising, guiding, and motivating the employees to get the best out of them. By performing the directing function, the human resource manager will also be able to get total support and co-operation of all the subordinate staff. This helps in effective attainment of the enterprise objective.

d) Controlling: If planning is looking ahead, controlling is looking back. The objective of the control function is to ensure that whatever has been planned is successfully achieved. Planning without control is useless, and control without planning is meaningless. The process of control involves the following stages:

i. Establishing the standardsii. Measuring the actual performance

iii. Comparing the actual performance with the standardsiv. Measuring the deviationsv. Taking correct actions

In the context of Human Resources Management, controlling is performed by supervision, reports, records, and audit.

Operative Functions

The operative functions of Human Resource management consist of the following:

a) Procurement

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b) Compensation

c) Maintenance

The scope of each of these operative functions is given in brief as follows.

a) Procurement: Procurement of Human Resource is concerned with the following:

i. Job analysisii. Human Resource planning

iii. Recruitmentiv. Selectionv. Placement

vi. Transfervii. Promotion

viii. Development

Development of human resource is concerned with the following:

i. Performance appraisalii. Training

iii. Executive developmentiv. Career planning and developmentv. Organizational Development (OD)

b) Compensation: It deals with the following:

i. Job evaluationii. Incentives

iii. Frindge benefitsiv. Integration

It is concerned with the performance of all those activities, which bring about reconciliation between individual interest and that of the organization. These include:

i. Motivating the employees to work betterii. Wage and salary

iii. Bonusiv. Social security schemesv. Boosting the morale of the staff

vi. Ensuring effective communicationvii. Enhancing the leadership qualities

viii. Providing the scope for collective bargainingix. Redressing the grievancex. Managing the conflicts

xi. Handling the disciplinary casesxii. Providing counselling to get rid of stress

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xiii. Improving the quality of work life of the employees

c) Maintenance: This function deals with the following:

i. Promoting job satisfaction among the employeesii. Handling the problem of labour turnover

iii. Human Resource accounting, audit, and research

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36

WINDSOR MACHINES LIMITED

PURPOSE OF HR MANUAL

The HR manual is an integral part of the organizations’ system which addressees & broadly documents the HR policies and procedures. It constitutes a reference that is revised and updated to keep in tune with the organizational needs and changes. The HR Manual is documented in the following 2 broad segments:

OUR STRATEGIC FOCUSOUR POLICIES

We feel that dissemination of information and awareness is necessary for a responsive and vibrant organization. This HR Manual attempts to bridge the above need. It aims to enhance employee understanding with regards to policies and work practices.

The manual charts the services that WML can offer to its employees.It also provides a platform for establishing clear communication networks amongst employees a regards HR practices. Above all, the Manual makes an attempt to address the HR needs of WML with respect to our TODAY and our TOMORROW.

It is our earnest request to the users of this manual to administer the policies in a consistent and impartial manner. In case of any queries, may we request you to get in touch with HR Department so that, the spirit behind this manual is safeguarded.

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GUIDING PRINCIPLES OF HR

An intrinsic belief in the capabilities and potential of employees.

Retention and nourishment of talent and potential.

Creating and fostering learning environment and a development climate.

Nurturing a healthy respect towards ideas & suggestions of employees.

Meritocracy to be recognized and rewarded at all levels.

Integrity of employees is of paramount importance.

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HR VISION

Developing and enhancing bonds of trust and respect for each other.

Act as a catalyst in nurturing talent and competencies and fostering

excellence in performance at all levels.

Develop systems and mechanisms to identify potential and assist

employees in career advancement avenues.

Synergise team contributions to build a cogent organization.

HR MISSION

To recruit and develop talented employees.

To internalize Company Values amongst employees.

To empower people to take decision at operating levels.

To provide Career growth opportunities through developmental inputs and

multi functional exposure.

To recognize and reward high quality work and integrity.

To encourage creativity in the form of process / system improvements to

Constantly find better and newer ways of doing things.

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RECRUITMENT AND SELECTION POLICY

PREAMBLE: The Recruitment policy has been framed in order to standardize the recruitment procedure, and to ensure that the procedure aligned to the organization’s policy for recruiting the right person for the right job.

APPLICABILITY: The policy applies to all potential employees of the organization.

SYSTEM: In respect of every vacancy (permanent or temporary) the “MANPOWER REQUISITION FORM” has to be duly completed by the Indenting department in consultation with the Divisional Head and has thereafter to be approved by The Executive Director, before the recruitment process is commenced. Any vacancy which needs to be advised in National / Local Newspapers, periodicals and Magazines, would have to be approved by the Divisional Head and Executive Director.

Temporary recruitment will be resorted in case of work which is purely of temporary nature created on account of changes in system, procedures etc. Temporary vacancy could also be a short term placement for an employee who has proceeded on maternity leave and / or has been confined to bed on account of prolonged sickness. All temporary vacancies should be necessarily approved by the Executives Director in the above prescribed format before initiating the process of recruitment. The maximum duration of temporary vacancy will be for a period of six months and under no circumstance would extension be allowed. No replacement would be allowed for a temporary vacancy beyond a period of six months

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SELECTION PROCEDURE

The following stages are to be followed during the selection process:

Approval of said vacancy in MRF form and source of recruitment to be decided.

Short listed candidate to be called for an interview.

Preliminary interviews to be conducted at the respective location by a panel which has to be constituted in consultation with the Divisional Head. It is to be ensured that there is at least one Senior member in the panel from a cross-functional department Short listed candidates to meet the Divisional Head.

APPLICATION FOR EMPLOYMENT form to be given to short listed candidates who should be directed to meet Divisional Head or Executive Director for the final interview.

Unit HR Head to ensure that all relevant papers pertaining to the short-listed candidates are sent to Divisional Head which Should contain the tentative offer proposal to be made to the short-listed candidate.

Pre-employment Medical check up should be arranged by the Unit HR Head/ Regional manager as the case may be.

On selection, Appointment Letter will be issued by the executive Director / CFO / Divisional Head as the case may be.

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PRE-EMPLOYMENT MEDICAL CHECK UP

PURPOSE: To ascertain the medical fitness of a potential candidate against prescribed medical stands.

SYSTEM: It would be mandatory for all selected candidates to undergo a PRE- EMPLOYMENT MEDICAL CHECK UP which would be organized by the Unit HR Head / Regional Head, before the selected candidate joins. The pre-employment medical check up would have to be organized immediately after the offer letter has been issued to the candidate by Unit HR Head. Pre-Employment Medical Reports are to be apart of the personal file of the selected candidate.

The Following tests are standardized as a part of the Pre-employment Medical check-up:

PATHOLOGICAL TESTS:

Routine blood test with blood group

Routine Urine

Chest X-Ray P.A.

ECG ( only for candidates above 35 years of age and / or advised by the CMO / Panel Doctor)

PHYSICAL EXAMINATION:

By CMO / Panel Doctor

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TRAVEL REIMBURSEMENT FOR OUTSTANDING

CANDIDATES CALLED FOR INTERVIEWS

In order to recruit the best talent, the organization will reimburse travel related expenses respect of out station candidates on producing tickets, so that they are not convenience. The object of this policy is to set a system for regulating such reimbursements.

The reimbursements will be as follows:

Top to Managers: To and Fro IInd A.C. Train Fare

Junior Managers & above: To and Fro Air-Fare Economy Class/ 1st AC Train Fare.

43

REIMBURSEMENT OF EXPENSES INCURRED FOR

RELOCATION / TRANSPORTATION OF PERSONAL

EFFECTS

Reimbursement is towards assisting prospective employee who would be joining us as employees to meet expenses incurred by them for packing and moving of personal effects from their residence to their place of posting.

Employees will have to submit the quotation to the Unit HR Head pertaining among and transportation of their personal effects. This would be approved by the Regional Head or CFO and payment would be made accordingly.

Reimbursements are given below:

(Actuals subject to Maximum limits (Rs.)

OFFICE Jr.Officer/ Sr.Officer

Executive / Asst.Manager

Manager/ Sr. Manager

DGM/ GM VP

100 5000 6000 6500 7000 Actuals101-500 7000 7500 8500 9500 Actuals501-1000 9500 11000 12000 14000 Actuals1001-1500 14000 15000 16500 18000 Actuals1500 above 17500 19000 21500 25000 Actuals

Reimbursements limits are maximum limits and reimbursement would be based on expenses incurred subject to the above maximum limited.

From the above laid maximum limits, approval from the Executive Director should be obtained.

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REIMBURSEMENT OF TRAVELLING EXPENSES

INCURRED ON JOINING

PURPOSE: In order to assist outstation candidates to join at their place of location, the company shall reimburse travel – related expenses to the employee and his family members subject to the grade of the employee and the maximum permissible limits laid down in the grade.

SYSTEM: The Unit HR Head should inform the selected candidate prior to his/her joining regarding his entitlement and necessary approval should be given to selected person to avoid any confusion and misunderstanding later. The joining expenses will normally not be given as an advance as it is a reimbursement. The expenses incurred for travelling will be a one time expense which will be reimbursed by the company. The said expense should be claimed by the new employee within one month from the date of joining. It is to be noted that travelling expenses will only be reimbursed against production of tickets, receipt and bills which be considered as sufficient proof of having travelled.

Reimbursements will be made as per the guideline given below:

GRADE MODE OF TRAVEL FAMILY MEMBERS COVERED FOR REIMBURSEMENT

Jr.Off. – Sr.Off. II nd AC – Train Immediate family members comprising of self, Spouse, Dependent children & Dependent parents staying with the employee

Executive – Asst.Mgr II nd AC – Train - Do -

Mgr II nd AC – Train - Do -

Sr.Mgr I st AC / Economy Air Fare - Do -

DGM & Above I st AC / Economy Air Fare - Do -

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POLICY ON TERMS AND CONDITION OF

EMPLOYMENT

PREAMBLE & SYSTEM: This policy attempts to standardize the terms and conditions will be a part of the Appointment Letter which will have to be acknowledged by a new joinee as a token of his/ her acceptance to the same on joining.

The NOTICE PERIOD for an employee who resigns from the services of the Organisation will be as follows:-

Category / Grade Notice PeriodDET/GET/PGET/MT 24 hoursJr. Officer and above 1 month

In case an employee who has submitted his / her resignation and wishes to be relieved at an earlier date, prior to the end of his / her Notice Period, the short fall in the Notice Period will then be adjusted against the balance Privilege leave to the credit of the employee. In case the shortfall is still not met, the said amount will be proportionately deducted from his full and final settlement dues. In exceptional cases, the Divisional Head / CFO / Executive Director is empowered to waive the shortfall in the Notice Period.

46

INDUCTION POLICY

PREAMBLE: In order to ensure a proper integration of the new joinee in the organization values, systems etc., it is essential to impart a structured induction to the new joinee.

SYSTEM: Unit HR Head in consultation with Departmental Head (of new joinees) and Division Head should chalk out an Induction Programme taking into consideration the function and grade of the new joinee. This Induction Module Should be structured and Customized to the requirements of the department / division.

It is suggested that the Unit HR Head and the Divisional Head have a separate session with the new joinee on completion of the said Induction Module. This would enable the Management Team to get a feedback on whether the Induction has achieved its desired objectives.

As a healthy practice, it is suggested that the Unit HR Head formally inter-acts with a new joinee at least once a month up to the confirmation of the said employee. This would to a great extent ensure integration of the new joinee to the organization as well as valuable feedback could be obtained from the new joinee which would help the Division / Organization.

Induction modules can vary in duration depending on the function and grade of the new joinee. Generally, a weeks’ induction at the location where the employee joins is suggested for new joinees (up to the Asst. Manager grade). For Departmental Heads & above an orientation at the Divisions can be worked out.

DETs, GETs, PGETs, and MTs would have to be given an in-depth extensive functional training which should be monitored by the Unit HR Head in consultation with Divisional Head.

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PROBATION & CONFIRMATION POLICY

PREAMBLE: It attempts to set a system which would be uniformly implemented across the organization in respect of confirmation of new joinee.

SYSTEM: A Probation period of 6 months for evaluating the performance / potential of a new joinee would be applicable to all grades.

In order to assess the performance of the new joinee, I reviews, ( At the end of 5.1/2 months) should be undertaken by the Departmental Head in the prescribed format. A copy of the review should be forwarded to Divisional Head by the concerned Department Head.

It is suggested that the departmental Head discuss the performance fedback with the new joinee with an objective of fine tuning performance wherever required.

The Unit HR Head should ensure that the Review forms are sent to the Departmental Head well in advance and that these forms are duly completed and performance feed back is given to the concerned joinee.

A new joinee would normally be confirmed at the end of his / her 6 months probation. Confirmation letter to this effect would be issued by Divisional Head / CFO / Executive Director. The Unit HR Heads are requested to ensure that the review forms are sent to Division Head / CFO / Executive Director well in advance for preparation of confirmation letter.

In case the performance of a new joinee is not found to be satisfactory at the end of his / her 6 months probation, the probation period can be extended for a maximum PERIOD OF 2 MONTHS. No further extension would be permissible and a decision would have to be taken regarding the new joinee at the end of this extended period. A letter of extension of probation will have to be issued either by Divisional Head or CFO ( as the case may be) immediately on completion of 6 months probation. 2 monthly reviews would have to be undertaken in the extended probation period.

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CONFIRMATION FITMENT POLICY

PREAMBLE: It streamlines the fitment of a Trainee / Probationer on confirmation.

SYSTEM: As a normal practice no merit increments / salary rise are considered on confirmation. In case of special recommendation for the above, a detailed proposal approved by the Divisional Head will have to be sent for the approval of CFO / Executive Director.

All DETs, GETs, PGETs & MTs would be on training for a period of one year. Periodical assessments at every 3 months would be carried out for them.In case a Trainee has demonstrated exceptional abilities and skills during his / her Training period, a recommendation from the Divisional head, containing a propsal for reducing the training period and early confirmation should be sent for Executive Director’s approval.

The confirmation Fitment for Trainee is as under:

All DETs will be confirmed as Engineers in the officer grade.

All GETs and PGETs (non – IITians) will be confirmed as Senior Engineers in the Senior Officer grade.

All GETs and PGETs (IITians) & MTs will be confirmed as Executive in the Executive grade.

49

CLASSIFICATION OF MANAGEMENT STRUCTURE

Management staff are classified in the following grades and designed in the Grade as mentioned hereunder. In each grade an employee could either be a Permanent empployee (Confirmed) or probationary employee ( on probation).

GRADE DESIGNATION M9 Vice president M8 General Manager M7 Division Head / Dy. General Manager M6 Senior Manager / Zonal Manager M5 Manager/Branch Manager/Regional Manager M4 Assistant Manager M3 Executive M2 Sr.Officer / Sr.Engineer M1 Officer / Engineer M0 Jr.Officer / Jr.Engineer MT Management Trainee PGET Post Graduate Engineer Trainee GET Graduate Engineer Trainee DET Diploma Engineer Trainee

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POLICY ON TRANSFER ENTITLEMENTS

PREAMBLE: This policy specifies the entitlementsthat would be applicable to employees transferred from their Quarter Location to the new Head Quarter Location.

SYSTEM: The travel related expenses would be reimbursed for self and immediate family members staying with self on the following basis:

GRADE MODE OF TRAVELJr. Officer – Manager II nd AC/ Ist class Train fareSr. Managers & Above II nd AC/ Ist AC/ Economy Air Fare

Reimbursement of cost of transportation of personal effects will be on the same lines a specified in the policy on “Reimbursement of expenses Incurred for Shifting / Relocation / Transportation of Personal Effects”.

RESETTLEMENT ALLOWANCE : Equivalent to 15 days basic salary ( as on date of transfer) would be paid to the transferred employee by the Head Quarter Location to which he / she is transferred.

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TRAVEL POLICY

PREAMBLE: In order to ensure a comfortable journey and stay for our employees when theyare required to travel on official purposes, the company undertakes to provide reasonable benefits / facilities in terms of boardiing, loading and other travel related reimbursements.

The policy aims to set a system and establish a procedure for granting these benefits to employees in Management Cadre while on tour.

SALIENT FEATURES

Definition and Duration of Tour

Tour Advances

Consolidated Boarding and Lodging Expense Limits

Flat Daily Allowance

Miscellaneous Expenses

Same – Day – Return Tours

Lunch Reimbursement Limits

Town Categorization

We request employees to adhere to the spirit of the Travel Policy. In the rare event of compelling circumstances necessitating a deviation in any part of this policy, the Divisional Head would be the sanctioning authority for the said deviation. A justification note in this regard is required to be sent by the Divisional Head to CFO for his approval.

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DEFINATION & DURATION OF TOUR

For the purpose of this policy, any tour is defined as an authorized journey undertaken for official work to a destination outside the Headquarter town either involving overnight stay or same day return.

The beginninf of the tour will be calculated from the date and time on which an employee leaves his / her residence / office for a tour and the ending of the tour will be the date and time of return to his / her residence / office. The total duration of a tour includes the time taken for travel.

Reimbursement limits will be applicable to the duration of a tour worked out in terms of multiple of full days of 24 hrs, each and on pro-rata basis for the balance number of hours on the last day.

MODE OF TRAVEL

GRADE MODE OF INTER TOWN TRAVEL

MODE OF LOCAL CONVEYANCE

Jr.Off – Sr.Off. I Class / II AC / Bus Actuals by AutoExecutive – Asst. Manager

I Class / II AC / Bus Actuals by Auto / Metred Taxi

Manager Economy Air Fare / I Class / II AC / Shared Taxi

Actuals by Auto / Metred Taxi

Sr. Manager Economy Air Fare / I Class / II AC / Taxi

Actuals by Metred Taxi

DGM & Above Economy Air Fare / I AC / Taxi Actuals by Metred Taxi / Private taxi

NOTES :

In grades Jr. Officer to asst. Manager, Air travel may be permitted on grounds of Exigencies taking into consideration surface distance and travel time involved. The Divisional Head will have to approve Air travel in such cases.

In cases where autos are not allowed to be plied by the Regional Transport Authorities and where there are no suburban trains, Metered Taxi would be the permissible mode of conveyance.

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TOUR ADVANCE

Tour advances will normally be given 2-3 days before the commencement of the tour. The quantum of the tour advance will not be more than the estimated expenses i.e. it will have a bearing on the number of tour days and the eligibility limits.

The eligibility limits are as follows:

(Rs. per day)

Grade Metros A Class B Class C ClassJunior Officer/ Officer / Sr. Officer

2500 2000 1500 1200

Executive / Asst. Manager 3000 2500 2000 1500Manager 4000 3000 2500 2000Senior Manager 5500 4000 3000 2500Dy.G.M. and above 7500 5500 4000 3500

(The categorization of Town has been annexed separately).

Request for tour advance should be approved by the departmental head of the respective employee. In case of employees located at branches, the request should be approved by the Regional Heads.

All Tour advances should positively be settled within 3 days of return from the tour. The Travel Expense Statement (TES) in the prescribed format should be completed and submitted within 3 days of return from the tour. This statement should be authorized by the competent authority and then sent to Accounts / Commercial department for verification. No fresh tour advance will be given till all overdue tour advances are settled. In case an employee default the timely settlement of tour advances 3 times, no further tour advance will be given to such employee.

All claims should be supported with necessary documents of proof of expenses incurred such as travel documents, cash memos and receipts etc.

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CONSOLIDATED BOARDING & LODGING EXPENSE LIMITS

(Rs. per day)

Grade Metros A Class B Class C ClassJunior Officer/ Officer / Sr. Officer

2000 1500 1200 1000

Executive / Asst. Manager 2500 2000 1500 1200Manager 3000 2500 2000 1500Senior Manager 4500 3000 2500 2000Dy.G.M. and above 6000 4500 3000 3000

The above limits are inclusive of all taxes, surcharge, levies etc. Please note above limits are the maximum daily limits and where lodging and boarding expenses incurred are less than the above limits, the same would be taken into consideration.

It is also to be ensured that the total boarding during a tour involving overnight stay normally not exceed 1/3 rd of the combined boarding & lodging expenses incurred.

At location where Transit House / Guest House facility of the company is available, employee shall stay in the same. Only when such accommodation is not available, employees should stay in hotels.

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FLAT DAILY ALLOWANCE

When employee chooses to make his / her own arrangement for boarding & lodging on a tour which would have necessitated hotel stay, then such an employee will be eligible to give a Flat Daily Allowance, without any supporting towards his / her hoarding, Lodging & Miscellaneous expenses.

When Flat Daily Allowance is claimed, no other meal / miscellaneous expenses shall be permissible.

Flat Daily Allowance will only be payable for tours involving over-night stay and will not be payable for same day return trips.

These allowances along with the conveyance expenses shall not exceed 50% of the “Consolidated Lodging & Boarding Expenses limit”.

Allowance Junior Officer/ Officer / Senior Officer

Executive/ Asst. Manager

Manager Senior Manager

DGMs & above

Flat Daily Allowance

500 600 700 800 1000

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MISCELLANEOUS EXPENSES

Miscellaneous expenses without supporting vouches which are incurred by employees on travel for small eats. Drinks, tips, porterage, laundry etc. will be reimbursed by the company subject to the following limits:

Grade Misc. Expenses per day(Rs.)Junior Officer /

Officer/Senior Officer75

Executive / Asst. Manager

100

Manager 125Senior Manager 150DGM & above Actuals

Notes:

1. The above limits are for a 24 hrs, period or part thereof beyond 12 hrs. which is taken as equivalent to a day. Miscellaneous expenses incurred for a period up to 12 hrs. would be paid at 50% of the above limit.

2. Details pertaining to miscellaneous expenses incurred should be submitted while claiming reimbursements, though no supporting is required.

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SAME DAY – RETURN TOURS

Employee will be considered to have proceeded on same day – Return Tour when he / she are sent out of his / her Headquarters town on official work to a place at least 80 kms. from the normal place of work or residence and the employee stay has been donned.

Encourage employees to take an early start and have maximum amount of time for meeting the work assigned and yet return on the same day without an over- night stay at destination, reimbursement limits for Boarding and miscellaneous expenses subject to deduction of necessary proof in the terms of bills, receipts etc; will be as under:

GRADE Between 10 and 12 hours (Rs.)

Above 12 hours (Rs.)

Junior Officer / Officer/Senior Officer

150 300

Executive / Asst. Manager 175 350Manager 225 400

Senior Manager 250 500DGM & above Actuals Actuals

Employee commences his / her tour at 4.00 P.M. and the tour ends at 6.00 P.M. on the same day and does not involve any over-night stay, it will be treated as a same day tour and the reimbursements will be as follows:

- Between 10-12 Hrs. Rate applicable as per Grade- Above 12 Hrs. Rate applicable as per grade

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LUNCH REIMBURSEMENT LIMITS

Employees whose normal duties are not outdoor and who cannot return to their normal place of work during the lunch interval may claim reimbursement of lunch expenses actually incurred by them subject to the maximum daily limits given below:

Grade

Lunch Reimbursement Limit with Bills (Rs.)

Flat Lunch Reimbursemant limit without Bills (Rs.)

Junior Officer/ Officer / Sr. Officer

80 50

Executive / Asst. Manager 100 60Manager 120 75

Senior Manager 150 100DGM & above Actuals N.A.

Employees whose normal duties are outdoor, may claim reimbursement of lunch expenses as per the above limits, but they should submit their vouchers only once a week. Such employees are expected to be in the field for at least 75% of their working hours, on the days when they make the lunch claims.

FLATMEAL ALLOWANCE DURING JOURNEY

Flat Meal Allowance is basically a journey allowance intended to meet expenses on small eats, soft drinks, lunch etc. while in journey. Employees will be entitled to claim Flat Meal Allowance on journeys involving over-night stay tours. This allowance will be paid when employees do not avail of the Flat Daily Allowance i.e. when employees are on tour for which actual reimbursementis being claimed for consolidated lodging & boarding expenses subject to the overall limits as mentioned earlier.

Period of Journey Flat Meal Allowance (Rs.)6 hrs. to 12 hrs. 10012 hrs. to 24 hrs. 17524 hrs. to 36 hrs. 225

36 hrs. plus 300

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TOWN CATEGORISATION

Based on an estimate of expenditure incurred in different towns, the following categorization of town has been made to ensure congruence of amonts reimbursed with the cost of living in the towns.

Metros Bombay, Delhi, Banglore, Hyderabad, Calcutta, Chennai, Ahmedabad.

‘A’ Class Towns ‘B’ Class Towns ‘C’ Class TownsSurat, Chandigarh, Pune, Goa, Baroda, Nagpur, Kochi, Patna.

Agra,Srinagar, Guwahati, Coimbatore,Bhopal, Vishakhapatnam, Amritsar, Bhubaneshwar, Ooty, Cuttack, Rourekela, Allahabad, Ludhiana, Aurangabad, Indore, Jallandar, Jammu, Kanpur, Lucknow, Mysore, Mangalore, Madurai, Nashik, Shillong, Srinagar, Varanasi

All other Towns not included in this Categorization

Note:

In case any Town is not included in the appropriate class please revert back to HR with bills of that town, to indicate which class would be appropriate for that town.

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LOCAL CONVEYANCE – OUTDOOR DUTY

Employees having their own vehicles i.e. two wheelers or cars ( For Manager & above only) would be entitled for reimbursement of fuel expenses incurred by them while on official out duty; provided they use own their own vehicles in lieu of Public Transport for Company work.

The overall reimbursement limits are:

For use of Two Wheelers @ Rs. 3.50 per km

For use of cars @ Rs. 6.00 per km.

A Form to this effect has to be filled in the concerned employee on every occasion involving use of his / her own vehicle for official purpose and approval has to be obtained from his / her immediate Superioir. Monthly reimbursement would then be made by the Accounts Department to the concerned employee at the start of the subsequent month.

DGMs and above who have been provide Company should make use of them for all purpose within city limits and use of Cabs / Autos for official work would not be entertained.

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FOREIGN TRAVEL POLICY

PREAMBLE: This policy establishes a system in respect of Overseas travel undertaken by our employees for official purpose.

SYSTEM: The entitlements for Foreign Travel will be as follows:

Country GMs & above

Asst.Mgrs – DGMs

Jr.Off – Executive

Japan 260$ 240$ 220$Singapore / Malaysia / Rest of S.E.Asia / China / Taiwan & CIS

200$ 180$ 170$

Entire Middle East , Gulf, & Pakistan (including Saudi Arabia & Kuwait)

200$ 180$ 170$

Srilanka,Bangladesh & Nepal 140$ 120$ 100$Africa (Excluding Nigeria & South Africa) 200$ 180$ 160$Nigeria,South Africa 260$ 200$ 160$U.K. 120 GBP 110 GBP 100 GBPEurope (excluding France, Germany, Switzerland)

220 EURO 200 EURO 160 EURO

France, Germany, Switzerland 240 EURO 220 EURO 180 EUROThe Netherlands, Austria, Rest of Europe Excluding CIS

220 EURO 200 EURO 180 EURO

USA / Canada / South America, Australia,New Zealand, Mexico

220$ 200$ 170$

The above daily travel allowance limits include expenses incurred for Telephone / Fax , Conveyance, Laundry, Entertainment Expenses etc.

All Airport / Departure taxes will have to be borne out of the above daily travel allowance limits only.

Personnel who are deputed abroad to attend to sevices calls will be entitled for allowance of US$18 ( on a 24 Hr. basis) as Miscellaneous expenses subject to their boarding and lodging expenses being borne by the customers themselves. The allowance can stretch up to a maximum of US$750 max. per trip. No seperate claim for reimbursement of any other expense would be entertained.

For Bangladesh and Nepal, the Above entitlement will be 10 US$ per day.

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GENERAL GUIDLINES

Producing passes are to be accompanied with expense voucher.

Allowance shall be claimed only for number of NIGHT STAYS in foreign country.

Tangible expense but for the allowance MUST be supported by necessary bills.

It can be claimed while abroad.

Foreign Tour proposal shall be authorised by DIVISIONAL HEAD only.

If extended beyond proposed day shall be approved by DIVISIONAL HEAD only.

If stay beyond two weeks to be approved DIVISIONAL HEAD only.

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TRAVEL POLICY

GENERAL GUIDELINES

For reimbursement under this policy will be made only on the basis of expenses actually incurred within specified limits, towards boarding, conveyance and miscellaneous expenses.

Telephone Calls made while on tour will be reimbursed by the company.

Expenses incurred on Cigarettes, Alcohol will not be reimbursable.

If an employee take any type of leave, cannot be entitled to claim reimbursement of expenses for the period of leave.

Employers should be settled within 3 days of resuming the duty.

Employees of the organization are worthy of trust and will take steps so that vouchers are filled correctly and authentically. Any Breach of this trust employee to strict disciplinary disciplinary action.

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ANNUAL REIMBURSEMENT

TRAVEL ALLOWANCE

L.T.A. entitlement will be calculated on a yearly basis i.e. from 1st april to 31st march.

L.T.A., an employee must take minimum 5 days privilege leave in a finiancial year.

Income Tax Act, exemption of L.T.A. for tax purpose will be given twice during a year.

If an employee cease to be in service for any reason, pro-rata L.T.A. will be given at the time of separation, which will be subject to necessary tax treatment.

The advance wil be paid only a week prior to proceeding on leave. The person concerned should submit the necessary declaration in the prescribed form from leave so that, Tax computation can accordingly be done.

Permanent employee will be eligible for claiming his first L.T.A. only on the basis of one year of his / her employment with the company, Pro-rata L.T.A. for the finanacial year worked will be payable to such an employee.

L.T.A. payable to an employee would be calculated on the BASIC PAY that the employee is drawing at the time of claiming the allowance.

L.T.A. in a financial year will not stand lapsed and can be carried forward of two years only.

It can only be paid for the period of service completed in a Financial year.

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DOMICILIARY MEDICAL REIMBURSEMENT

Reimbursement is intended to meet expenses incurred by an employee on his / her immediate family members pertaining to Domiciliary treatment for sickness.

SYSTEM: Medical bills will be reimbursed during the year as follows:

STARTERS REIMBURSEMENT WEEK

April – 30th June 2nd week of June

July – 30th September 1st week of October

October – 31st December 1st week of January

January – 31st March 2nd week of March

Medical bills for expenses incurred in a quarter should be submitted to Unit Personnel Department / Commercial officer, (as the case may be) in the respective reimbursement week shown above. This will not only be an administrative ease but bill also ensure uniformity across locations.

Medical reimbursement would be done on a pro-rata basis during the Financial year.The first quarter employees would be entitled to claim an amount up to ¼ th of their total annual entitlement. Similarly, for the next quarter the entitlement would be of their total entitlement, then ¼ th in the next quarter and finally the entire amount of the last quarter. The unavailed quantum of the entire amount of the last quarter. The unavailed quantum of the Domiciliary limit will not be carried forward to the next year and will stand lapsed as per IT rules.

Reimbursement should be claimed in the prescribed format. Bills and other supportings in the form of prescriptions etc. should be attached to this form. Bills pertaining to cosmetic treatement, beauty enhances, general tonics (unless prescribed a physician), cosmetic densitry, convalescing foods (unless prescribed a physician), will not be reimbursed by the company under thr above policy.

The Unit HR Head should scrutinize the medical reimbursement form and its supportings before forwarding it to Accounts Department for payment.

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TELEPHONE / MOBILE PHONE REIMBURSEMENT

In order to enable employees in the Middle Managerial Cadre and above to keep in touch with customers, clients, business associates in connection with the company’s business; telephone / mobile Phone incurred will be reimbursed.

Eligibility: Employees in the Asst.Manager grade and above having a telephone connection at the their residence are eligible for reimbursement of telephone expenses.

SYSTEM:

Reimbursement would be include rentals as well as call billings. Reimbursement would be made against production of residential telephone / Mobile

telephone bills. Original bill would have to be attached to the payment voucher for claiming reimbursement.

The grade-wise monthly reimbursement limits of Residence Phone are as follows:

GRADE MONTHLY REIMBURSEMENT OF RESIDENTAL PHONE(Rs.)

ASST. MANAGER 500/-MANAGER 600/-SENIOR MANAGER 1000/-DGM 1500/-GM – VP 2000/-

The grade-wise monthly reimbursement limits of Mobile Telephone are as follows:

SALES CATEGORY

GRADE MONTHLY REIMBURSEMENT OF MOBILE PHONE(Rs.)

JR.ENGINEER / ENGINEER 800/-SR.ENGINEER 1000/-EXECUTIVE 1250/-ASST. MANAGER 1500/-MANAGER & SR.MANAGER 1750/-DGM & ABOVE Actual

Regional Head will get additional Rs.500/- in his Limit by Designation.

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TELEPHONE / MOBILE PHONE REIMBURSEMENT

SERVICE CATEGORY

GRADE MONTHLY REIMBURSEMENT OF MOBILE PHONE(Rs.)

JR.ENGINEER / ENGINEER 500/-SR.ENGINEER 600/-EXECUTIVE 750/-ASST. MANAGER 1000/-MANAGER & SR.MANAGER 1250/-DGM & ABOVE Actual

The above limits are maximum monthly limits and reimbursement would be made on the basis of actual bills. Balance quantum cannot be carried forward to the next reimbursement cycle nor can annual balance quantum be carried forward to the next accounting year. This is purely a reimbursement of actual expenses incurred on mobile subject to overall limits.

Eligibility will be based on function subject to approval of CFO / Divisional Head. No reimbursement will be given for mobile instrument.

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LOANS & BENEFITS

SYSTEM: The company would extend Financial assistance in the form of Loans to employees in Management grades for the purchase of two wheelers and four wheelers.

The above loans would be sanctioned at the sole discretion of the Divisional Head / CFO and the Executive Director. Meritocracy i.e. recognition of good performance would be the sole criteria while considering sanctionong of such loans.

PROCEDURE:

Two wheelers the maximum loan amount would be Rs.40,000/- or 70% of the cost of the vehicle whichever is less.

Cars the maximum loan amount would be Rs.2.50 lacs or 70% of the cost of the vehicle whichever is less.

The quantum of loan to be sanctioned would be decided by the Divisional Head / CFO / Executive Director.

Re-financing of vehicles owned by the employee would not be done.

The loan amount would carry 7% interest and would be recovered in 48 equal monthly instalments.

A maximum of two vehicle loan can be sanctioned by a division in a month.

On sanctioning a vehicle loan, the employee will have to sign a loan agreement, submit a copy of the registration book to the company and hypothecate the vehicle of the company. A Demand Promissory Note will have to be signed by the Employee.

In the event of seperation of an employee before full repayment of the loan, the balance quantum would have to be paid in full before the last working day.

Request for loans should be in writing to the Divisional head through the unit HR Head.

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HOUSING LOAN

SYSTEM: The Company would extend financial assistance in the form of Loans to employees in Management grades for the purchase of residential accommodation.

The above loans would be sanctioned at the sole discretion of Executive Director & would have to be recommended by the Divisional Head. Meritocracy i.e. recognition of good performance would be the sole criteria while considering sanctioning of such loans.

PROCEDURE:

The quantum of loan to be sanctioned would be decided by the Executive Director with consultation with the Divisional Head.

Finance for purchase of land will not be considered.

The loan quantum would carry 8.5% interest and would be recovered in 84 equal monthly instalments.

On sanctioning the loan, the employee will have to execute a loan agreement, and will sign a demand Promissory Note. The original papers will have to be submitted to the company for recreation for charge creation.

In the event of separation of an employee before full repayment of the loan, the balance quantum would have to be paid in full before the last working day.

Request for loans should be in writing to the Executive Director through the Regional head.

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SOFT EMERGENCY LOAN

SYSTEM: The Company would extend Financial assistance in the form of Loans to employees in Management grades to meet medical emergencies.

The above loans would be sanctioned at the sole discretion of the Divisional Head / CFO.

These being towards meeting exigencies will be interest free and will be recovered in 10 equal monthly installments.

The maximum quantum of loan that can be sanctioned would be Rs.25,000/- only.

In the event of seperation of an employee before full repayment of the loan, the balance quantum would have to be paid in full before the last working day.

Request for loans should be in writing to the Divisional head through the unit HR Head.

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CREDIT CARD FACILITY

INDIVIDUAL CREDIT CARD

Senior Managers & DGMs would be entitled to one credit card in their name and an amount of Rs.1500/- as Entrance fees would be reimbursed by the company. The Annual Renewal fees subject to actuals will reimbursed by the company.

CORPORATE CREDIT CARD

It would be entitled to one Diners Corporate Credit Card. The Conveniance fees as well as the Annual Renewal fees would be paid by the company

.

FOREIGNEXCHANGE CREDIT CARD

Corporate American Express (Foreign Exchange) Credit Card would be given only to Managers and above working in Export Sales function.

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LEAVE POLICY

ELIGIBILITY:

It applies to all employees in the Management Cadre.

The policy will be discussed under the following heads:

Privilege leave

Contingency leave

Compensatory Offs.

PRIVILEGE LEAVE :

All permanent employees will be entitled to 30 days PL in a Financial Year.

The leave earned in the previous financial year will be credited to the employees account on 1st of April every year.

A new employee will be entitled to PL on a prorata basis from the date of joining on completion of one year service. This leave will be credited to his / her account on completion of one year’s in the organization.

All application for PL should be made at least 10 days in advance and the intimation along with approval should be forwarded to the HRD/Personnel department.

Weekly off can either be prefixed or suffixed with PL but not both. In cae of weekly Offs being both prefixed and suffixed to PL, one of them shall be treated as PL.

PL can be accumulated up to a maximum limit of 240 days. PL beyond this limit, if not encashed would stand lapsed.

The minimum quantum of PL that can be availed at a time is 5 days. An employee can avail PL for a maximum of three times in a financial year.

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PRIVILEGE LEAVE

Employees proceeding on leave can be paid an advance against his / her salary if his / her leave extends beyond the normal date of payment of salary. This will however, be at the discretion of the management.

The employee will not be allowed to proceed on leave during the period of allowance which is to be given in the event of his / her resignation. In case he / she proceeds on PL, it will be treated as leave without pay & the final element will be with held.

ENCASHMENT OF PRIVILEGE LEAVE

Employee is allowed to encash his accumulated PL subject to retaining a credit balance of at least 30 days PL is his / her account after encashment. An application for leave encashment has to be made in the prescribed format. This application should be given to the accounts Department through Unit HR Department at least 10 days prior to the preparation of salary for the month.

PL can be encashed only Twice during a financial year.

The minimum quantum of PL that can be encashed at a time will be 5 days and the maximum quantum would be 30 days.

The permanent employees who resign / retire from the service of the company will be entitled to encashment of accumulated P/L as on the date of resignation and also on a pro-rata basis for the services rendered in the said financial year.

The encashment of PL for all employees (in service, retired / resigned) will be made on the basis of the employee’s last drawn BASIC SALARY only.

Incase of employees who have submitted their resignation and have not fully worked during the Notice period, the short fall in the notice period will be adjusted against the P/L balance.

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CONTINGENCY LEAVE

All management staff will be entitled to 19 days of Contingency leave in a financial year. The said leave will be credited to the employee’s leave account on a pro-rata basis, on his / her date of joining and thereafter on 1st of April every year.

Contingency Leave is meant to be taken for planned as well as unforeseen state of affairs To the extent practicable, prior approval should be obtained. In case of unforeseen situation, the approval should be obtained from the superior immediately on availing leave.

No employee can avail contingency leave for more than 4 days a stretch, except on grounds of personal sickness which should be supported by a fitness certificate from the attending doctor.

This leave cannot bbe granted in combination with PL; neither can it be prefixed & suffixed both to weekly offs. This leave can either be prefixed or suffixed to a Weekly off.

Unavailed Contingency Leave at the end of the financial year will be credited to the privilege leave account of an employee subject ti the overall PL accumulation limit of 240 days.

Application for leave has to be filled in Leave card which will be updated every year in 1st luly.

Unavailed casual Leave & Sick Leave for the year ending 31 st March would be merged and accumulated to the P/L balance of the employee.

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COMPENSATORY OFFs

Compensatory Offs would be granted to Technical Management staff up to the Asst. Managers’ grade working at the Factories / Branch offices.

Management staff who are required to continue working beyond their normal working hours on account of certain work exigencies and continue working for a full shifts (8hrs.) beyond their regular shift would be entitled for one Compensatory Off.

Compensatory off would also be granted for working on a weekly off / paid holiday. The Departmental Head of the concerned employee who becomes eligible for a

Compensatory off has to approve the same in the prescribed form. As a general guideline, Compensatory off would have to ba availed within a period of 10

days from the date on which extra work was carried out. Compensatory Offs cannot be accumulated, cannot be encashed and will not be converted

& merged into PL. Prior approval from the departmental head is necessary for availing a Compensatory Off

and Unit HR Head will have to be intimated of the same. The maximum limit of accumulation of Compensatory Offs at any given point of time is

9 days.

It is to be noted that no employee should be requested to work at a stretch for more than 10 days, without availing a Weekly off.

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MEDICLAIM POLICY

PREAMBLE: In order to mitigate expenses incurred on hospitalization, the compensation has covered all its employees and family members of staff in certain grades for comprehensive policy called the Mediclaim Policy. The same covers reimbursement of hospitalization expenses for certain illness / diseases.

SYSTEM: The said policy is an Annual Policy and the premium is paid by the company.The nature and extent coverage depends upon the grade and the age of the person covered. The tabulated chart below details the nature and extent of coverage:

Grades Extent of Coverage Amount Insured(Rs.)Junior Officer/ Officer / Sr.

OfficerSelf Only 75000/-

Executive / Asst. Manager Self Only 1,00,000/-Manager / senior Manager Self + Spouse 1,25.,000/-General Manager & Above Self + Spouse + 2 Dependent

Children1,50,000/-

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SOCIAL SECURITY BENEFITS TO EMPLOYEES

I. INTRODUCTION:-

It is said that ninety percent of the world’s population does not have the social protection. The statement however true does not concern us much as we are sometimes least worried about the problems of the neighbour at least not to speak of the town we live in, but the problem for our policy makers is not that of the world but of our own population and to be more nearer to the issue it is not even the population but the working population in the country. Therefore, the statement goes that the ninety percent of the working population in our country do not have any kind of social protection excepting that they take their own case. Particularly the people in the informal sector are not covered by any type of social security protection, i.e. either by a contribution based insurance scheme or by any social assistance scheme. If one takes the number of covered persons as a percentage of number of persons working, it is estimated that in India, roughly 90 percent of the working population do not have any formal arrangements for social security coverage.

Traditionally the ILO and ministries of labour world over believed that all workers would eventually end up in large enterprises, or at least in the formal sector. However, the experience in the developing countries and recently in the developed countries this has been proved otherwise. On the contrary, voluntary retirement schemes, out sourcing the employment and casualization have become the key words of the corporate world these days. So the extension of formal social security programs cannot be the simple answer to satisfying the social protection needs of increasing number of workers and their families outside the formal sector. The most vulnerable groups outside the formal labour force are the labour force in the informal sector and disabled and old people who cannot count on their family support, who cannot be reached by other social policies and who have not been able to make provisions for their own pension due to meager or no income. New institutions and forms of social security will have to be developed to meet the specific security needs of these various groups. It is therefore attempted in this paper to suggest some kind of social protection to these groups and administrative arrangements there for.

II. What is Social Security?

Many authors have defined social security by many ways. For ourunderstanding, we consider the social security as the continuous economic support to a human being for his or her social well being- at least in the evening years of his/her life. It is therefore necessary to link up traditional social security policies and economic policies in general. Getubig for instance defines social security for the developing countries as “any kind of collective measure or activities designed to ensure that members of the society meet their basic needs. As well as being protected from contingencies to enable them to maintain a standard of living consistent with social norms” Dreze and Sen distinguish two aspects of social security, which they define as the use of social means to prevent deprivation and vulnerability to deprivation. The focus of the social security is to enhance and protect people’s capabilities to be adequately nourished, to be comfortably clothed, to avoid

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escapable morbidity and preventable mortality. The average experience of poorer populations understates the precarious nature of their existence, since a certain proportion of them undergo severe and often sudden dispossession, and the threat of such a thing happening is ever present in the lives of many more. The decline may result from changes in personal circumstances or from fluctuations in the social surroundings. Therefore, we may understand the social security as “the provision of benefits to households and individuals through public or collective arrangements to protect against low or declining standard of living arising from a number of basic risks and needs. For clearer understanding we may enlist the social security measures or programmes for income sustenance income maintenance end for medical as:

(1) Provident Funds/Gratuity,(2) Oldage, survivor, widow and disability pension,(3) Medical care of all sorts and(4) Protection from all kinds of risks life and non life affecting the social existence of individual.

It is proposed in this paper therefore to suggest the social security technique that is more appropriate for the target population keeping in view the economic constraints both of contributor and the Government.

India, being a welfare State, has taken upon itself the responsibilities of extending various benefits of Social Security and Social Assistance to its citizens. The social security legislations in India derive their strength and spirit from the sDirective Principles of the State Policy as contained in the Constitution of India.

Although the Constitution of India is yet to recognise Social Security as a fundamental right it does require that the State should strive to promote the welfare of the people by securing and protecting, as effectively as it may, a social order in which justice social, economic and political shall inform all the institutions of national life. Specially, Article 41 of the Constitution requires that the State should within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in case of unemployment, old age, sickness and disablement. Article 42 requires that the State should make provision for securing just and humane conditions of work and for maternity relief. Article 47 requires that the State should raise the level of nutrition and the standard of living of its people and improvement of public health as among its primary duties. The obligations cast on the State in the above Articles constitute Social Security. In India, out of an estimated work force of about 397 million, around 28 million workers are having the benefit of formal social security protection. Rest of the workers are in the unorganised sector. Several and successive attempts have been made in the past to address the multifarious problems faced by the workers in the unorganised sector through legislative as well as programme oriented measures. Even though these measures have not succeeded in achieving the desired object partly on account of the ignorance, illiteracy and lack of unionisation of workers on the one hand and the resource constraints of the State on the other, some of the programmes have provided a good setting through which the hopes and expectation of the workers in the unorganised sector have been considerably aroused.

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A gigantic task of this nature would require a multi-dimensional, multilevel well integrated and efficiently delivered structural response would include legislation, its enforcement, enhancement of social awareness, involvement of voluntary organizations and committed individuals, while simultaneously improving the mobility, capability for better supervision and effectiveness of the enforcement machinery and of the schemes meant for the welfare of the unorganised labour.

In the initial years of development planning, it was believed that with the process of development, more and more workers would join the organized sector and eventually get covered by formal social security arrangements. However, experience has belied this hope. The opening up of the economy, under the regime of economic reforms, has only exacerbated the problem. There is now almost a stagnation of employment in the organized sector with the resultant increase in the inflow of workers into the informal economy.

The well designed social security system for the workers in the unorganised sector will help in improving productivity, contribute to the harmonious labour relations and thus to socio and economic development. It will encourage and propagate the social peace by reducing the frequency of industrial conflicts, increase the willingness to work, make it easier to meet delivery commitments and lead to improved quality product, a better investment climate and thereby enhancing the competitiveness of the economy.

The working group noted that the Second National Commission on Labour has been constituted by the Government to suggest rationalisation of existing laws relating to labour in the organised sector and suggest an umbrella legislation for ensuring a minimum level of protection to the workers in the un-organised sector.

Effective enforcement of Social Security Acts through institutional Mechanisms would impact on the level of trust and confidence of the working class. There is a felt need to look at the delivery mechanism in implementation of the Acts like EPF & MP Act, the ESI Act, Minimum Wages Act, Maternity Act, Workmen Compensation Act and the Payment of Gratuity Act.

The wage policy for the unorganised sector secured mainly through the Minimum Wages Act, 1948 is oriented towards providing a ‘Need-based Minimum Wages’. In the unorganised sector, the wages are fixed under the Minimum Wages Act, 1948. The fundamental objective of minimum wage fixation is to improve the standard of living of those sections of the working population in the sweated sector whose wages are very low and whose living and working conditions leave much scope for improvement. Under the Act both the State and the Central Governments are appropriate Governments for fixation/revision of minimum rates of wages in the scheduled employments falling in their respective jurisdiction.In the context of preparation of the Tenth Five Year Plan, the Planning Commission had set up a Working Group on Social Security under the Chairmanship of Secretary, Ministry of Labour, Government of India vide their Order No. M-13015/9/2000-LEM/LP dated 27.4.2001.

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Composition of the Working Group:-1. Secretary (Labour) ChairmanGovernment of India,2. Secretary,Ministry of Social Justice & MemberEmpowerment or his nominee3. Director General, MemberEmployees State Insurance Corporation4. Central Provident Fund Commissioner Member5. Secretary (Labour) Kerala Member6. Secretary (Labour) Uttar Pradesh Member7. Secretary (Labour) Punjab Member8. Secretary (Labour), Karnataka Member9. Secretary (Labour) Uttaranchal Member10. Shri Sharad Pathak MemberEmployers Federation of India11. Joint Secretary (Social Security) Convener

The terms of reference of the Working Group:a. To suggest an accepted definition of social security and the minimum acceptable services to be covered under itb. To assess the existing social security measures, both in organised and unorganised sectorsc. To suggest ways to extend the coverage of social security to a wider segment of work forced. To suggest division of responsibility for implementation of a wider social security system among Centre, State and Workerse. To review the implementation of Minimum Wages Act at the State level and recommend institutional mechanism and legislative measures that enable the minimum income to the most of the wage employed.F .To examine the functioning of the relevant Acts, which seek to extend social security to the workers, such as those concerning welfare of the workers, provident fund, workmen compensation, insurance against accident in the occupation, etc.g. To examine the feasibility of using existing institutions such as ESIC, EPFO,Welfare Boards, etc. to extend social security to bulk of the non-agricultural work force.h. To examine and recommend the measures to extend social security to agricultural workers.i. The Chairman of the Working Group may include additional terms (s) of reference in consultation with Member (LEM), Planning Commission, and the Chairman of the Steering Committee on Labour and Employment.

The Working Group met under the Chairmanship of Shri Vinod Vaish, Secretary (Labour) on 3rd July, 2001. After the preliminary discussion on the various terms of reference, it was decided to constitute four sub-working groups as indicated below :i. Organised Sectorii. Unorganised Sector,iii. Implementation of Social Security Actsiv. Gender concerns in implementation of different Schemes both in the organised and unorganised sectors.

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The minutes of the meeting of the working group is at Annexure-I. The composition of the sub-working group may be seen at Annexure-II.Subsequently, it was decided with approval of the Chairman that the sub working group on gender concerns need not submit a separate report. The gender concerns will be taken care of in the recommendations of the working group cutting across all the sectors as social security is gender neutral.

The terms of reference of the sub-working groups were the same as that of the working group mentioned earlier. The sub-working groups had several meetings, deliberated on the concerned issues and submitted their Report to the Chairman of the working group between August-September, 2001. A draft report was prepared on the basis of the recommendations/ observations of the subworking groups. The Working Group under the Chairmanship of Secretary(Labour) met on 26th September,2001 and finalised the report after detailed discussion.

AN OVERVIEW OF INDIA’S SOCIAL SECURITY SYSTEM

India has a complex social security system. It can be broadly divided into the following five components.

1. The Employees Provident Fund Organization (EPFO) schemes: The EPFO was set up in 1952 and its schemes are designed for the private sector

workers in organizations with more than 20 employees in 177 categories of industries. In 1999-2000, 326.5 thousand establishments, and 24.5 million individuals were members of the EPFO (Singh, 2003,p.137). The data concerning actual contributors in a given period as compared to members are not available.The EPFO however has not yet instituted full-fledged individual accounts for its members, relying instead on registering the employers, who in turn provide the details of contributions of their employees to the EPFO on an annual basis (Karunarathne and Goswami, 2002). The accounts therefore are not, in practice, portable across employers and therefore across the country. This practice has not only increased the workload of the EPFO as those changing jobs and unemployed are permitted to withdraw all of their balances. This practice also has negative implications for retirement security and labour mobility. The EPFO does not come under the purview of an overall regulator, but there are three sources through which provident and pension funds in India re regulated (Hinz and Rao, 2002). These are: Income Tax Act of 1961, EPF Act of 1952 and Indian Trusts Act, 1882.As on March 31, 2001, total balances with the EPFO were Rs.1,126.9 billion (5.84 percent of GDP). The EPFO has a fairly restrictive investment regime, with nearly all of the funds invested in public sector bonds and securities, and none invested in equities. The EPFO does not have any investment expertise as it has for the past 50 years contracted out the investment function to the state-owned banks. The average annual compound rate of return for the 1986-2000 period was 2.7 percent (11.7 percent nominal return less 9 percent annual inflation rate). Even this was made possible generous administered rate of interest paid by the Central government to the EPFO.

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EPFO’s investment guidelines are not consistent with the guidelines for the pension funds of the insurance companies established by the Insurance Regulatory Development Authority (IRDA). These guidelines permit equity investments, and term loans. The EPFO guidelines are also not consistent with the shift in India’s economic paradigm from the stateled to a more market-oriented approach.The EPFO is an unusual national provident fund because it administers both a defined contribution (DC) scheme called Employees’ Provident Fund (EPF), and a defined benefit (DB) pension scheme called Employees’ Pensions Scheme (EPS). The EPFO is also unusual in that it not only administers the schemes, but also decides which organizations can be exempted from the EPF scheme, and then regulates and supervises the exempted establishments, generally fairly large companies. This puts EPFO in a conflict of interest situation. It is therefore essential that its role as regulator should be separated from its role as a service-provider for the various schemes. The EPF scheme provides for fairly extensive pre-retirement withdrawals. The withdrawal at retirement however is of a lump-sum nature. The EPS aims to provide a replacement rate at retirement of 50 percent, but without any formal inflation indexation.The EPS permits commutation of pensions up to one-third of pension benefits at retirement. Even then, the EPS scheme is widely believed to be under-funded (Palacios, 2001). The EPFO has been reluctant to make the actuarial calculations underlying the EPS scheme public. This lack of transparency and resulting lack of accountability is inconsistent with good governance practices.The EPFO also administers a life-insurance scheme called Employees’ Deposit Linked Insurance (EDLI) scheme. The total contribution rate for the three schemes combined is 25.66 percent. In addition, the EPFO collects from the employer 1.11 percent as an administrative charge. The challenge for the EPFO therefore is to provide services to its members and to ensure overall economic benefits to the society which are commensurate with such high contribution rates.

2. Civil service schemes of the Central and State Governments: In 1998, there were 4.6 million employees at the central government level and 7.6 million employees in the States; while the number of pensioners were 3.6 million for the central government (dependency ratio of 78 percent) and 3.7 million for the state governments (dependency ratio of 49 percent). Thus, in 1998, there were 7.3 million civil service pensioners in India (IMF, 2001).In 1998, the average pension to average wage for the civil service was 45.1 percent; and the pension outlays accounted for about a third of the wage bill at the Centre and 22 percent at the State-level (IMF,2001). Even though not mandated, the retirement benefits at the Centre and in States are very similar in their structure, though not in all details.The main social security benefits for the civil servants are non-contributory,unfunded DB pension which is indexed for both prices and wages, and has fairly generous commutation provisions (upto 40 percent of the pension benefits can be taken in as a lump sum ), and survivors’ benefits (called Family Pensions). A civil servant is also entitled to a contributory General Provident Fund (GPF); Lump-sum Gratuity (with a ceiling); Life-Insurance Scheme; and fairly generous Leave Encashment Benefits. For those civil servants who are non-pensionable, there is Contributory Provident Fund (CPF) Scheme.

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The DB pension scheme provides a maximum replacement rate of 50 percent of the average salary during last 10 months of service, subject to minimum and maximum pension amounts. The employees at the Centre are divided into four major sectors (Railways, Telecommunication, Defense, Others) and pension administration is decentralized according to these sectors.The civil service pension system was set up when the average salary was relatively low. But revision of civil service salaries in 1998, in accordance with the recommendations of the Fifth Pay Commission, has considerably increased the fiscal costs of the pensions at the Centre and especially in the States. This in turn has had an adverse impact on fiscal consolidation and flexibility of the fiscal system to redirect expenditure towards more urgent needs (Asher, 2002a). Automatic and complete linking of the contributions of the GPF and the CPF to finance fiscal deficits has weakened the fiscal discipline considerably. The non-contributory nature of the DB scheme has therefore become unsustainable.

3. Public Sector Enterprises: These include insurance companies, Reserve Bank of India, public sector banks, electricity boards, oil companies such as ONGC, industrial entities, etc. which have their own pension schemes, managed by them with little supervision. The details of the schemes of public sector enterprises are not known, and neither is their actuarial soundness. The way pension liabilities of these enterprises are treated in their financial statements is also not transparent. The trustees of the pension funds of these enterprises also do not appear to be accountable to the members. The above suggests an obvious need to regulate them to make them transparent and accountable, with emphasis on fiduciary responsibility, particularly as most of these enterprises are now required to be commercially viable.

4. Voluntary tax advantaged savings schemes: These comprise Post Office Savings Bank Schemes (constituting nearly 10 percent of GDP); Public Provident Fund (PPF); individual and group annuities of life insurance companies (these are currently regulated by the IRDA). Except for the annuities, the other savings schemes have enjoyed administered rate of returns, and some such as the PPF are essentially tax-shelter devices for the high income groups. India has been liberalizing its financial sector since 1991, and as a consequence interest rates have progressively become more market-determined. This is also being gradually applied to the provident and pension funds and to small savings schemes.

5. Public Assistance and other schemes for the life time poor at the Centre and in the States: These schemes are financed from the government budgets and therefore depend critically on the fiscal health of the governments. As the first four components cover at best about one-sixth of the labour force, with the remaining labour force not being covered by any formal social security schemes. The public assistance and other such schemes are therefore the primary source of income support for the elderly poor who do not belong to any formal schemes.At the Central government level, the two major public assistance schemes are: National Social Assistance Scheme (NSAS) introduced in 1995 and the Annapurna Scheme introduced in 1999 (Rajan, 2002). The 29 states and 6 union territories also have a variety of schemes to assist the elderly. The coverage of the two central schemes is relatively low, and the amount per beneficiary is also low. Indeed, as of October 2000, eighteen months after the introduction of the Annapurna Scheme, half the states and union territories have not even

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introduced the scheme (Rajan, 2002). The transaction costs of these schemes at both the Central and State levels are also quite high; and the targeting of the beneficiaries is poor.

III. REFORM DIRECTIONSThe main characteristics of India’s social security system are evident from the overview provided in the previous section. First, India’s social security system is overwhelmingly welfare-oriented. Therefore, various trade-offs that are needed between needs for social security on one hand and the fiscal and economic implications of the current arrangements on the other, have not been sufficiently stressed. India’s need for fiscal consolidation and fiscal flexibility, and its need to substantially increase the employment generation, particularly in the formal sector, has added urgency of explicitly examining the trade-offs. Secondly, the welfare-orientation and relative neglect of administrative and civil service reform in India has meant that there is substantial room for much greater professionalism in the design, governance and organizational structures, and administration of social security schemes under various components. This requires renewed emphasis on efficiency and minimization of transactions costs.Thirdly, there has been a marked dualism in the provision of social security benefits. This dualism is most evident in the relatively secure and generous retirement benefits of the civil servants without any contributions by them to the DB pension scheme on the one hand, and meager funds for public assistance schemes for the elderly poor on the other. In between are the private sector employees who are covered by the EPFO schemes.Fourthly, each component of India’s social security system has developed separately, without any agency responsible for a system-wide perspective. Thus, there no overall pensions regulator in India.The above four characteristics strongly suggest urgent need for reforming India’s social security system. The direction for such reform is also fairly clear. It is to increase professionalism, including benchmarking against best national and international practices; mitigating dualism to reflect changing roles of public and private sectors, financial sustainability, and for equity reasons; to expand coverage, particularly through public assistance schemes for the elderly poor financed through the budget; to make India’s social security system consistent with national objectives through a system-wide perspective. There has been increasing recognition of the need for reform by governmental and non-governmental organizations, broadly along the lines outlined above. The social security reform in any country is politically and socially quite sensitive. It is therefore not surprising the pension and provident fund reforms in India are only beginning, more than a decade after financial sector reforms were initiated with reasonable success. The provident and pension fund reform is now very much on the public policy agenda. It is essential however to design an implement these reforms with professional level attention to detail as much of the devil in the reforms in this area is in the details. The remaining discussion in this section focuses on the civil service pension reform, on a new voluntary scheme called the Varishtha Pension Bima Yojana (VPBY), and on the EPFO.

Civil Service Pension Reform: The 2001-02 budget had accepted the principle of prefunding for pensions of the Central government employees. The Bhattacharya Committee was subsequently appointed in June 2001 to examine this issue. It submitted its report in February 2002. The report however has not been made public. Subsequently, the government announced reforms of the civil service pensions in the 2003-04 budget. The measures may be summarized as follows:

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New entrants to Central government (except Armed Forces) on portable DC scheme, with equal contributions from the employer and the employee (the implementation date has not been announced).Pension Fund Regulatory and Development Authority (PFRDA) to be set up. Initially, it will be under the overall umbrella of the Ministry of Finance. The contributors will have individual accounts; and specialized pension funds will offer a basket of choices.Non-Central government employees may join, but the Central government will not contribute or legally guarantee the returns. Implicit moral liability for those who join voluntarily however will still be on the Central government. The expected date of operation is end of 2003 or early 2004. The above features suggest that the new entrants to civil service at the Central government level will entirely depend on defined contribution scheme. International experience suggests that a 20 percent contribution rate should be sufficient to provide a replacement rate at retirement of close to 50 percent. However, the announcement does not indicate how the inflation and longevity protection during retirement, and survivors’ benefits will be provided. The exclusive reliance on the DC scheme may also lead to much greater variability in the replacement rates among different cohorts of civil servants. Consideration may therefore need to be given to the provision of a floor (for example, 30 percent replacement rate based on last 10 year’s wages, protected for inflation and longevity).The emphasis is on the accumulation stage, with the resultant emphasis on the investment function and the minimization of the administration and investment management costs. It is also not clear whether the civil servants will be required to buy annuities at the time of retirement (or deferred annuities), and if so, how might these be regulated. As the contingent liability of the civil servants is clearly on the central government, there will be a need to separate the funds of the civil servants from those who join voluntarily. There are many design details, such as the number of pension fund providers, their eligibility criteria, investment guidelines, qualifications of the intermediaries, etc. which are yet to be decided. A meticulous planning and attention to detail, as well as a consensus based approach is to be preferred rather than meeting any arbitrarily-set deadline. The governance structure and the staffing of the proposed PFRDA also need to be clarified. The word ‘development’ in the proposed regulator is appropriate given substantial scope for developing financial and pension economics literacy and financial and capital markets. There will also be a need for close coordination between the PFRDA which will be primarily involved in the accumulation phase and the IRDA which already regulates the pension products of the insurance companies which are involved in the payout or the decumulation phase. The greater use of financial and capital markets in accordance with the modern investment principles will also require close coordination with Securities and Exchange Board of India (SEBI). It would be useful to gradually expand the mandate of the proposed PFRDA to include the DC schemes of the public sector enterprises (component 3); and the DC schemes for the civil servants (both for new entrants and the current GPF) at all levels of government. It may be useful if a separate fund and accounting framework is considered for each state for the sake of ease of administration, transparency and accountability. Once the PFRDA is fairly well established, consideration should also be given to confer powers to regulate the EPFO schemes. The EPFO then would become purely a customer focused service-provider. This suggests that the EPF scheme of the exempted organization, and voluntary occupational pension schemes should also come under the PFRDA. Once such integration is completed, it would be feasible to address one of the major gaps of the current system, i.e. lack of system-wide perspective (Asher, 2002b). Such integration will also ensure consistent level of professionalism across various components and schemes (Asher, 2002b).

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It is important to recognize that the approach in the 2003-04 budget of bringing only the new civil servants under the DC scheme implies a slow pace of fiscal consolidation and flexibility. Indeed, the DC approach will increase the government’s cash outlay in the initial period (more so, if the sinking fund concept is also simultaneously adopted for funding existing pension liabilities). There is however several parametric reforms which are feasible and desirable involving existing civil servants. These include the commutation provision, indexation provisions, leave encashment benefits, sharing of life insurance and group insurance costs, detailed provision of family pensions, compassionate pension, etc. The parametric reforms therefore should not be neglected at both the central and state government levels as the rationalization will result not only in fiscal savings but also provide clearer signals of the changing role of government in India (Asher, 2002a). The initial steps in the civil service pension reform have thus been taken. But as the above discussion suggest, much more remain to be done. If the Centre is able to implement a new scheme (with appropriate modifications) smoothly and successfully, more and more states are likely to join.

The Varishtha Pension Bima Yojana (VPBY): This scheme proposed in the 2003-04 budget is to be administered by the Life Insurance Corporation of India (LIC). Its main features are summarized below:Under VPBY, any citizen above 55 years of age, could pay a lump-sum, and get a monthly return in the form of a pension for life. The minimum and maximumpensions are pegged at Rs.250 and Rs. 2000 per month respectively. These amounts are not indexed to inflation. There is a guaranteed return of 9 percent per annum for this scheme. The difference between the actual yield earned by the LIC under this scheme and the 9 percent will be made up by the central government.The subsidy therefore is explicit. However, it would have been better to have pegged the guaranteed rate at a small premium to the market rate, rather than at an absolute level.

The EPFO: Many of the reforms needed for the EPFO such as improving service quality, minimizing administration costs, improving compliance, establishing genuine individual lbased accounts, and ensuring that its design details and rules are consistent with international good practices in key areas such as benefit and contribution formulae, actuarial studies, portability and vesting, and investment policies and management, and the need to separate its role as a provident and pension fund administrator from that of a regulator are evident from the discussion in the previous sections. The EPFO’s governance structure also needs to be modernized. Thus, independent experts must be invited on its governing board, just as the Companies Act has strengthened the role of independent directors. The EPFO as an organization needs to invest considerably more in information technology and staff training and development. The role of Labour Minister in its functioning needs to be rationalized; and the organizational functioning needs to be made more transparent and accountable. As noted earlier, the challenge for the EPFO is to convince all the stakeholders that the high mandatory contribution rates are commensurate with the quality of services provided and with the positive economic impacts on saving investment intermediation, greater economic security, and work incentives. The EPFO leadership is aware of the challenges and has initiated organizational reforms. But given that it has had 50 years of existence, it will be judged only on the basis of results and services delivered to its stakeholders and members.Matters relating to Social Security are listed in the Directive Principles of State Policy and the subjects in the Concurrent List. The following social security issues are mentioned in the Concurrent List (List III in the Seventh Schedule of the Constitution of India).

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Item No. 23: Social Security and insurance, employment and unemployment.

Item No. 24: Welfare of Labour including conditions of work, provident funds, employers’ liability, workmen’s compensation, invalidity and old age pension and maternity benefits.

Directive Principles of State PolicyArticle 41 Right to work, to education and to public assistance in certain cases The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.

Article 42 Provision for just and humane conditions of work and maternity relief The State shall make provision for securing just and humane conditions of work and for maternity relief.

OVERVIEW

WHY DO WE NEED SOCIAL SECURITY

Social Security protects not just the subscriber but also his/her entire family by giving benefit packages in financial security and health care. Social Security schemes are designed to guarantee at least long-term sustenance to families when the earning member retires, dies or suffers a disability. Thus the main strength of the Social Security system is that it acts as a facilitator - it helps people to plan their own future through insurance and assistance. The success of Social Security schemes however requires the active support and involvement of employees and employers.

As a worker/employee, you are a source of Social Security protection for yourself and your family. As an employer you are responsible for providing adequate social security coverage to all your workers.

Background information on Social Security India has always had a Joint Family system that took care of the social security needs of all the members provided it had access/ownership of material assets like land. In keeping with its cultural traditions, family members and relatives have always discharged a sense of shared responsibility towards one another. To the extent that the family has resources to draw upon, this is often the best relief for the special needs and care required by the aged and those in poor health.

However with increasing migration, urbanization and demographic changes there has been a decrease in large family units. This is where the formal system of social security gains importance. However, information and awareness are the vital factors in widening the coverage of Social Security schemes.

Social Security Benefits in India are Need-based i.e. the component of social assistance is more important in the publicly-managed schemes-

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In the Indian context, Social Security is a comprehensive approach designed to prevent deprivation, assure the individual of a basic minimum income for himself and his dependents and to protect the individual from any uncertainties.

The State bears the primary responsibility for developing appropriate system for providing protection and assistance to its workforce. Social Security is increasingly viewed as an integral part of the development process. It helps to create a more positive attitude to the challenge of globalization and the consequent structural and technological changes.

WORKFORCE IN INDIA The dimensions and complexities of the problem in India can be better appreciated by taking into consideration the extent of the labour force in the organized and unorganized sectors. The latest NSSO survey of 1999-2000 has brought out the vast dichotomy between these two sectors into sharp focus. While as per the 1991 census, the total workforce was about 314 million and the organized sector accounted for only 27 million out of this workforce, the NSSO’s survey of 1999-2000 has estimated that the workforce may have increased to about 397 million out of which only 28 million were in the organized sector. Thus, it can be concluded from these findings that there has been a growth of only about one million in the organized sector in comparison the growth of about 55 million in the unorganized sector.

Organized and Unorganized Sectors The organized sector includes primarily those establishments which are covered by the Factories Act, 1948, the Shops and Commercial Establishments Acts of State Governments, the Industrial Employment Standing Orders Act, 1946 etc. This sector already has a structure through which social security benefits are extended to workers covered under these legislations.

The unorganized sector on the other hand, is characterized by the lack of labour law coverage, seasonal and temporary nature of occupations, high labour mobility, dispersed functioning of operations, casualization of labour, lack of organizational support, low bargaining power, etc. all of which make it vulnerable to socio-economic hardships. The nature of work in the unorganized sector varies between regions and also between the rural areas and the urban areas, which may include the remote rural areas as well as sometimes the most inhospitable urban concentrations. In the rural areas it comprises of landless agricultural labourers, small and marginal farmers, share croppers, persons engaged in animal husbandry, fishing, horticulture, bee-keeping, toddy tapping, forest workers, rural artisans, etc. where as in the urban areas, it comprises

mainly of manual labourers in construction, carpentry, trade, transport, communication etc. and also includes street vendors, hawkers, head load workers, cobblers, tin smiths, garment makers, etc.

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SYNOPSIS OF SOCIAL SECURITY LAWS

The principal social security laws enacted in India are the following:

(i) The Employees’ State Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10 or more employees and provides for comprehensive medical care to the employees and their families as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement.

(ii) The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for the workers in the coal mines and tea plantations.

(iii) The Workmen’s Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or his family in cases of employment related injuries resulting in death or disability.

(iv) The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies. (v) The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages for each year of service to employees who have worked for five years or more in establishments having a minimum of 10 workers. Separate Provident fund legislation exists for workers employed in Coal Mines and Tea Plantations in the State of Assam and for seamen.

Measures being undertaken at present –

• The various Central Acts on Social Security are being examined in the light of the

recommendations of the 2nd

National Commission on Labour. Relevant amendments are proposed in the EPF and MP Act as also the ESI Act. The consultation process is on with reference to the amendment suggestions received in case of the Maternity Benefit Act and the Workmen’s Compensation Act. • Innovative measures are proposed in the running of the Social Security Schemes of EPFO and ESIC. This includes flexible benefit schemes tailored to the specific requirements of different segments of the population.

SUMMARY OF PRESENT INITIATIVES IN WORKING OF EPFO & ESIC

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The profiles of the Employees’ Provident Fund Organization and the Employees’ State Insurance Corporation are being changed towards greater accessibility and client satisfaction. The EPFO extends to the entire country covering over 393824 establishments. At present, over 3.9 crore EPF Members and their families get benefits under the social security schemes administered by the EPFO. The total corpus of the EPF Scheme 1952, EDLI Scheme, 1976 and Employees Pension Scheme 1995 together amounts to about Rs.1,39,000 crores. Over the years, the volume of service rendered to subscribers as well as investments made, etc. by EPFO have grown manifold. With a view to provide better services to subscribers and employers, the organization has launched the Project RE-INVENTING EPF, INDIA since June, 2001. The prime objectives of this Project are to provide the subscribers better and efficient services, to help the employers by reducing the cost of compliance and to benefit the organization to register geometric growth in all fields. An important part of this Project is the allotment of the UNIQUE IDENTIFICATION NUMBER-the SOCIAL SECURITY NUMBER to the EPF subscribers, issuing of BUSINESS NUMBERS to the employers and Business Process Re-engineering.The strategy for implementation has been evolved and the allotment of the Social Security Number has begun with the entire activity being carried out in smaller phases for effective data collection. The criteria considered for the allotment of SSN include the centralized control of Uniqueness, ensuring the least manual intervention during allotment and near 100% Uniqueness accuracy levels. The Social Security Number in a nutshell is a big effort towards solving the problem of providing social protection to migrant labour and to make the data base of EPFO adaptable to the present trend of high job mobility among workers.

The Employees State Insurance Scheme provides need based social security benefits to insured workers in the organized sector. As in the case of the EPFO, the ESIC has also taken up the daunting task of tailoring different benefit schemes for the needs of different worker groups. The scheme, which was first introduced at two centers in 1952 with an initial coverage of 1.20 lakh workers, today covers 71.59 lakh workers in about 678 centers in the country. It benefits about 310. 54 lakh beneficiaries including the family workers of the insured persons, across the country. The scheme is being gradually to cover new centers and steps are being taken for creation of requisite infrastructure for providing medical care to a larger number of insured persons and their families. While the cash benefits under the scheme are administered through a network of about 850 local offices and pay offices, medical care is provided through 141 ESI Hospitals, 43 ESI Annexes, 1451 ESI Dispensaries and 2789 Clinics of Insurance Medical Practitioners. The total number of medical officers under the Scheme is about 10,480. There have been a number of new developments in the ESIS during the past five years. Each year, it is extended to new areas to cover additional employees. The new employees covered varied from 30,500 in 1998, 89030 in 2000 to 46430 till Jan., 2003. Low paid workers in receipt of daily wages up to Rs. 40/- have been exempted from payment of their share of contribution. Earlier this limit was Rs. 25/-. This measure has benefited about six lakh insured workers across the country. In order to provide relief to insured persons suffering from chronic and long term diseases, the list of diseases for which Sickness Benefit is available for an extended period up to two years at an enhanced rate of 70% of daily wages,

was enlarged by adding four new diseases, keeping in view the international classification of disease profiles and the quantum of malignancies of some diseases which had come to light over the last few years. The contributory conditions for this benefit were also reduced from 183 days to 156 days in the two-year period preceding the diagnosis.

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The ESIC has made plans to commission Model hospitals in each State. Thirteen States/ UTs have so far agreed, in principle, to hand over one hospital each to the ESIC for setting up of Model hospital. Two Hospitals have been earmarked for being developed for superspeciality medical care in cardiology, i.e., Rohini at Delhi and Chinchwad in Maharashtra.

In order to improve the standard of medical care in the States, the amount reimbursable to the State Governments for running the medical care scheme has been increased to 87.5 % of Rs. 700 per capita with effect from 1.4.2003. The ESIC has formulated action plans for improving medical services under the ESI scheme with focus on modernization of hospitals by upgrading their emergency and diagnostic facilities, development of departments as per disease profiles, waste management, provision of intensive care services, revamping of grievance handling services, continuing education programme, computerization and upgradation of laboratories etc. The action plans have been in operation since 1998. The ESIC has also taken certain new initiatives to promote and popularize Indian Systems of Medicines (ISM) along with Yoga and have drawn up programmes for establishing these facilities in ESI hospitals and dispensaries in a phased manner.

SOCIAL SECURITY TO THE WORKERS IN THE ORGANIZED SECTOR

Social Security to the workers in the Organized Sector is provided through five Central Acts, namely, the ESI Act, the EPF & MP Act, the Workmens’ Compensation Act, the Maternity Benefit Act, and the Payment of Gratuity Act. In addition, there are a large number of welfare funds for certain specified segments of workers such as beedi workers, cine workers, construction workers etc.

SOCIAL SECURITY AND ILO/ISSA

Government of India has accepted the international commitment that arises from the ratification of the Covenant of Social, Economic and Cultural Rights of the United Nations. This Covenant, inter alia recognises the right of everyone to social security including social insurance. India has also ratified some Conventions of the ILO including Workmen’s Compensation, (Occupational Diseases) – (No. 18 and revised Convention No. 42 of 1934); Equality of Treatment (Accident Compensation) – No. 19 of 1925; and Equality of Treatment (Social Security) – No. 1 & 8 of 1962.

ILO CONVENTION 102 has however not been ratified by India.

The following nine benefits are laid down in the ILO Convention No.102 of 1952 namely, sickness benefit, medical benefit, maternity benefit, employment injury benefit, old-age benefit, invalidity benefit, survivors benefit, unemployment benefit and family benefit.

SOCIAL SECURITY COVERAGE IN INDIA

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Most social security systems in developed countries are linked to wage employment. In India our situation is entirely different from that obtaining in developed countries. The key differences are:

i) We do not have an existing universal social security system

ii) We do not face the problem of exit rate from the workplace being higher than the replacement rate. Rather on the contrary lack of employment opportunities is the key concern,

iii) 92% of the workforce is in the informal sector which is largely unrecorded and the system of pay roll deduction is difficult to apply.

Even today 1/8th

of the world’s older people live in India. The overwhelming majority of these depend on transfers from their children. Addressing social security concerns with particular reference to retirement income for workers within the coverage gap has been exercising policy makers across the world. In India the coverage gap i.e. workers who do not have access to any formal scheme for old-age income provisioning constitute about 92% of the estimated workforce of 400 million people. Hence the global debate and evaluation of options for closing the coverage gap is of special significance to India. The gradual breakdown of the family system has only underscored the urgency to evolve an appropriate policy that would help current participants in the labour force to build up a minimum retirement income for themselves.

4. The coverage gap in India is broadly categorized under the following groups: a) Agricultural sector = 180 million. b) Contract, services, construction = 60 million. c) Trade, Commerce, transport, storage & Communications = 100 million. d) Others = 30 million.

___________ Total = 370 million

HOWEVER ONE IMPORTANT FACTOR TO BE KEPT IN MIND ON THE COVERAGE ISSUE IS THAT THIS CLASSIFICATION DOES NOT INCLUDE THE VARIOUS SOCIAL SECURITY SCHEMES RUN BY OTHER MINISTRIES FOR DIFFERENT TARGET GROUPS. WE HAVE ALSO NOT INCLUDED INDIRECT FUNDING THROUGH SUBSIDIES, PDS, SOCIAL ASSISTANCE PROGRAMMES, FOOD-FOR-WORK PROGRAMMES, TAX CONCESSIONS ETC.

EXTENSION OF COVERAGE

Currently, social security policy makers and administrators are engaged in a wide-ranging debate to redress the problems in providing social security in the country. This debate has

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thrown up various arguments on the efficacy of publicly managed social security schemes as opposed to privately managed schemes. There is no standard model that can be adopted on this issue. In the Indian context the privately managed schemes can at best be considered as supplementary schemes after the mandatory schemes managed publicly. It is only the publicly managed scheme, which will extend to all the sectors of the workforce. The challenge of closing the coverage gap in social security provisions has to be developed at two levels. The first level involves the re-engineering of the institutional arrangements to increase efficiency. The second level is to create an appropriate legislative and administrative framework for significant increase in the social security coverage especially in the unorganized sector.

In India currently only about 35 million out of a workforce of 400 million have access to formal social security in the form of old-age income protection. This includes private sector workers, civil servants, military personnel & employees of State Public Sector Undertakings. Out of these 35 million, 26 million workers are members of the Employees’ Provident Fund Organization. As such the current publicly managed system in India is more or less entirely anchored by the Employees’ Provident Fund Organisation. It may be noted that in the last 50 years, the Employees’ Provident Fund Organisation has been in existence, there has been no instance of any scam or a situation where the Fund has been exposed to speculation and risk. Another important contribution of EPF is now proposed to extend to the critical life benefit of providing shelter. The Shramik A was Yojana aims at providing a cost effective Housing Scheme specific for EPF numbers. This involves cooperation between organizations such as HUDCO, Housing Agencies, State Governments, Employers and EPF Members with the EPFO playing the role of facilitator. The investments are directed into the prescribed securities and portfolios as per the pattern laid down by the Finance Ministry.

FUNCTIONS OF SOCIAL SECURITY DIVISIONList of subjects– 1. Matters concerning framing of social security policy especially for the organized sector of workers.

2. Administration of Employees’ State Insurance Act, 1948.3. Administration of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 and three schemes framed there under, namely:- i. The Employees’ Provident Fund Scheme, 1952 ii. The Employees’ Pension scheme, 1995 iii. The Employees’ Deposit linked Insurance Scheme, 1976. 4. Workmen’s Compensation Act, 1923. 5. Maternity Benefits Act, 1961. 6. Payment of Gratuity, Act, 1972 7. Establishment matters relating to the Employees’ State Insurance Corporation– Constitution of ESI Corporation, Standing Committee and Medical Benefit Council ofESIC as also Regional Board.

8. Administrative matters of ESI Corporation including implementation of ESI Scheme in New Geographical Areas, opening of Sub-Regional Offices of ESIC and up-gradation of Medical facilities. 9. Annual report, Budget and accounts, and matters connected with auditing of accounts of the ESIC and EPFO

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10. Issues relating to International Social Security Association (ISSA); and other international Social Security organizations. Processing of ILOConventions relating to Social Security. 11. All Parliamentary matters and MP/VIP References in relation to the above as also legislative matters/ amendment in respect of the aforesaid Acts.

12. Vigilance matters/ Disciplinary proceedings relating to officers of EPFO and ESIC.13. Representations from employees of ESIC and EPFO, and general public grievances on ESIC/ EPFO/Social Security measures in India. 14. All matters relating to setting up of EPF Appellate Tribunal – Establishmentmatters and appointment of Staff. 15. Constitution of the Central Board of Trustees and Regional Committees, EPFO. 16. All matters relating to: i. Pattern of investment of provident fund money; ii. Declaration of rate of interest on the provident fund; iii. Enhancement of the rate of provident fund contributions; iv. Budget of the EDLI Scheme and EPS; v. Payment of Central Government contribution and administrative charges for Family Pension Scheme, Deposit Linked Insurance under the EPF Act as well as the Assam Tea Plantation Provident Fund Act. vi. References relating to recovery of EPF/ESI dues / Exemptions and Exclusions from the EPF&MP Act and also the ESI Act.

EPFO PROGRAMS AT GLANCE

Program Name Program Type Financing CoverageEmployees

Provident Fund (EPF)

• Mandatory • Employer: 1.67-3.67%

• Employee:10-12%

• Government: None

• Firms with + 20 employees

Employees Pension Scheme ( EPS)

• Mandatory • Employer: 8.33%

• Employee: None

• Government: 1.16%

• Firms with + 20 employees

Employees Deposit Linked Insurance

Scheme

• Mandatory • Employer: 0.5% • Firms with + 20 employees

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• Employees: None

• Government: None

ESI Contribution Rates

• Employees- 1.75% of wages

• Employers- 4.75% of wages

• State Govts.-1/8th share of expenditure

A few examples of other retirement programs giving social security

(Information on extent of coverage of the labour force under these programs is not available)

Program Name Program Type Financing CoverageCivil Service Pension

Scheme Mandatory State or Central

Government Civil servants at state and central government level

Government Provident Fund

Mandatory Employee contributions

Civil servants at state and central government level

Special Provident Funds

Mandatory Employer and employee contributions

Applies to Workers in particular sectors: Coal, Mines, Tea Plantation, Jammu and Kashmir Seamen, etc.

Public Provident Fund

Voluntary Contributions All individuals are eligible to apply

VRS plans Voluntary Contributions Employees as decided by respective establishments

Personal Pension Voluntary Purchase of annuity type products

All individuals

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State level social assistance

Government sponsored social assistance

State Government Varies by State and type of Scheme

National Old Age Pension Scheme

Government sponsored social assistance

Central Government Poor persons above age 65

NEW INITIATIVE IN SOCIAL SECURITY

Varishtha Pension Bima Yojana (VPBY):

This scheme proposed in the 2003-04 budget by the Ministry of Finance is to be administered by the Life Insurance Corporation of India (LIC). Its main features are summarized below:

• Under VPBY, any citizen above 55 years of age, could pay a lump-sum, and get a monthly pensions are pegged at Rs. 250 and Rs. 2000 per month respectively. These amounts are not indexed to inflation. • There is a guaranteed return of 9 percent per annum for this scheme. • The difference between the actual yield earned by the LIC under this scheme and the 9 percent will be made up by the Central Government.• The EPF & MP ACT is proposed to be amended suitably to allow EPF subscribers to invest in the VBPY.

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SOCIAL SECURITIES BENEFITS PROVIDED TO THE EMPLOYEES OF WINDSOR MACHINES LIMITED

Social security laws enacted in Windsor Machines Limited are the following:First of all “Employee Code” is needed for new joining.

P.F. number. Make file & documents of employee. Then do the punching by taking their finger prints. Generate data. Then reason if the employees leave the job.

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From employee code P.F. number is generated. (i) The Employees’ State Insurance Act, 1948 (ESI Act) ESI is applicable to those whose workers salary is Below Rs.15,000.

Enrol code

Employees Name

ESI No. ESI Base ESI amt(1.75%) (4.75%)New PF FPF Service

1. Xyz xx Xx xxxx xxxx

Statement of ESI No. 37-14265-67 for month of August – 2011Category No. Of

insured employees

ESI Salary Employees contribution 1.75%

Employers contribution 4.75%

Total

Workmen 0 0 Xxxxx xxxxx -Staff Xx xxx 0 0 -Adjustment 0 0 Xxxx xxxx XxxxxTotal Xx xxx Xxxx xxxx Xxxxx

The Account Dept.

Kindly arrange to issue a cheque for Rs. Xxxxx/- in favour of SBI a/c ESI for the month of August – 2011.

Prepared By. Approved by.

ESI should be paid within 7 days.For ESI half yearly “Form No.5” is required. April to Sept & Oct to March twice to be filled & submitted within 45 days.

(ii) The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act).For P.F. “Form No.23” is required.

For P.F. transfer from one company to another company “Form No.13”.

P.F. should be paid within 30 days. In a year 2 forms are to be sent of P.F. “Form No. 3A” & “Form No. 6A”

Srl. # Empl. Code

Employee’s Name

P.F. No.

P.F. Base

< - P.F. Amt - >Empl. Co.

<-Pension->

1. 101 Mr. Xyz 022 14,828 1779 1238 541

Statement of P.F. and F.P.F No. GJ/ 14071 for month of August – 2011. Amount

Category Total PF Employees Employers Adm. Adm.

100

Employees Salary Contribution 12%

Contribution Charges on P.F.

Charges on EDLI

PF PENSION 1.10% 0.01%Workmen Xx xxxx Xxxx Xxxx Xxxx XxxBrg. Staff Xx xxxx Xxxx Xxxx Xxxx xx Mgmt.Staff

Xx xxxx Xxxx Xxxx Xxxx Xxx

Total Xx xxxx Xxxx Xxxx Xxxx Xxx

Emp. Cont. to PF

xxxx xxxx

Co. Cont. to PF xxxx xxxxCo. Cont. to Pension xxxx xxxxAdm. Charges to PF xxxx xxxx

Emp. Cont. to EDLIS xxxx xxxx

xxxxxx

Less:- Emp. Contribution Add:- xxxx xxx0 00 0 Total xxx

The Accounts Dept.: Kindly arrange to issue a cheque for xxxx/- favour of SBI a/c. P.F. for the month of August 2011.

Prepared By. Approved By.

If the workers dies in an accident they will get Rs.3,00,000.

(iii) The Workmen’s Compensation Act, 1923 (WC Act). All workmen’s mediclaim, Rs.50,000 is given at the time of treatment, for that the workmen and bargainable staff has to be admitted for 24 hours.If anyone loses his finger, hand or dies may be compensated with more than Rs. 3 lacs.For Management staff:-Mediclaim is as per their grade from 1 lacs , engineer gets 1lacs and above it.Accident policy as per grade Rs. 3 lacs to 5 lacs

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Account – 1 Xxxx Account – 10 XxxxAccount – 2 XxxxAccount – 22 Xxxx

Total Xxxx

(iv) The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies. (v) The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages for each year of service to employees who have worked for five years or more in establishments. For Gratuity 4.81 % is deducted from basic salary. Formula = Basic salary/26*No. of years.

12% Employee pays. That is divided into two parts:8.33% pension3.67% Employee

.

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0RGANISED AND UNORGANISED SECTOR Organised Sector

1. The delivery of services under the social security instruments in ProvidentFund and ESIS should be improved by adopting information and communication technology in the overall interest of the workers.2. The medical care system under ESIS would need drastic improvement. New strategies would be adopted to cover workers in the unorganised sector.

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3. The Provident Fund and Employees State Insurance Scheme need to be extended to the unorganised sector in a big way.4. Major restructuring of Employees State Insurance Scheme and Provident Fund Scheme should await the recommendations of the Second National Commission on Labour which has been asked to examine the recommendations of the Wadhawan Committee.5. Establishment of a common nationally unique Social Security number toeach worker.

Unorganised Sector

1. Social Security cover for the unorganised sector which can take care of medical care, accident benefits and old age pension should receive priority attention. This Sector Comprises of near 92% work force of the country. It is essential to enhance the coverage under national social assistance programmes providing old age pension, maternity and other benefits to the workers in the unorganised sector.

2. A separate Pension Scheme, with state support may be formulated during the Tenth Five Year Plan, At present only the members of the provident fund are included in the Employees Pension Scheme, 1995. The Pension Scheme may be delinked from the Provident Fund Scheme as this would encourage workers in the unorganised sector to subscribe to Pension Scheme for old age security. Other new approaches would be necessary to put in place pension schemes for the unorganised sector.

3. Medical care could be extended to the workers in the unorganised sector by charging a lump sum amount. ESIC may be entrusted with the responsibilityto formulate scheme in this regard.

4. Convergence of social security programmes to cater to the social security needs of the workers in the unorganised sector in an integrated manner would be emphasised.5. Community based and location specific social security measures will be encouraged through Self Help Groups, voluntary organizations, etc.

6. New Welfare Boards in the unorganised sector such as fish processing, taddytapper, salt worker etc. should be considered.

7. State Governments like Kerala, Tamil Nadu, West Bengal have introduced social security schemes providing insurance and other benefits to the certain occupational groups in the unorganised sector. Other states could be motivated and encouraged to formulate and

implement such schemes and programmes as per their requirements.

8. Effective implementation of Social Security Acts would go a long way in providing social security cover to the workers. For these purpose, the enforcement machineries in the Central and State Governments should be strengthened. The overlapping benefits in the Acts would need to be rationalised.

9. The State can shape the social security systems and influence their effectiveness by adopting suitable fiscal policy. As investment in social security impacts on human resource

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development, it would be desirable to make a paradigm shift in funding the social security schemes from non-plan to plan.

10. The government has launched the Scheme Krishi Shramik Samajik Yojana 2001 with effect from 1st July, 2001. Under the scheme the workers will get pension ranging Rs.100 to Rs.1900 per month depending upon the age of entry to the scheme on attaining the age of 60 years. The financial liabilities to cover one million agricultural workers over a span of three years in 50 districts in the country will be about Rs. 76 crore per annum. The extension of the scheme toother districts to cover 10 million agricultural labourers out of 74.6 million total landless agricultural labourers in the country may involve financial implication of Rs. 850 crore per annum. Depending upon the success of the scheme and extend in coverage, the plan support would be required.

Unorganised Sector

Magnitude of Workforce in the Unorganised Sector

As per the survey carried out by National Sample Survey Organisation in the year 1999-2000, the total employment in both organized and unorganised sector in the country was of the order of 397 million. Out of this, about 28 million were in the organised sector and the balance 369 million in the unorganised sector. A similar survey carried out by the NSSO in the year 1993- 94 had shown that the total employment in both the organized and unorganised sector was 335 million out of which around 27 million were in the organised sector and the balance 308 million in the unorganised sector. These estimates reveal that there has been almost no increase in the workforce in the organised sector but substantial increase in the unorganised sector has taken place over the period. The problem is further compounded due to the huge gap in coverage andlack of institutional frame work to implement the social security programmes in this sector.

Characteristic of Unorganized Sector

The unorganised workforce is characterised by scattered and fragmented areas of employment, seasonality of employment, lack of job security, low legislative protection because of their scattered and dispersed nature, lack of awareness and high unemployment levels, perceived mis-match between the training requirements and the training facilities available, low literacy levels, outmoded social customs like child marriage, excessive spending on ceremonial festivities leading to indebtedness and bondage, etc., primitive production technologies and feudal production relations are further impediments not

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facilitating these workers to imbibe and assimilate higher technologies and better production relations.

The unorganised Labour can be categorised broadly into four categories as follows:-a) Occupation: Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry ,in beedi rolling beedi labelling and beedi packing workers in building and construction, etc.

b) Nature of Employment: Attached agricultural labourers, bonded labourers migrant workers, contract and casual labourers come under this category.c) Specially distressed categories: Toddy tappers, scavengers, carriers of head loads, drivers of animal driven vehicles, loaders and unloaders belong to this category.

d) Service categories: Midwives, domestic workers, fishermen and women, barbers, vegetable and fruit vendors, newspaper vendors etc. come under this category.

Need for Social Security

The unorganised nature of the workforce, dispersed nature of operational processes and lack of institutional back up reduces their bargaining power and their ability to take full benefits from the Acts and legislations enacted for their benefits. Further, low skill levels of this workforce provides little scope for them to move vertically in the occupational ladder to improve their financial situation. The growth of informal, unprotected work with shrinking formal employment compels the workers to bear an increasing direct burden of financing social needs, with adverse effects on their quality of life. That burden may also undermine the capacity of enterprises to compete with global economy.Social Security in the Unorganised SectorThe existing social security arrangements in the unorganised sector can be broadly classified into four groups as follows:i) Centrally funded social assistance programmes;ii) Social insurance schemes;iii) Social assistance through welfare funds of Central and StateGovernments; andiv) Public initiatives.

Centrally Funded Social Assistance ProgrammesThe centrally funded social assisted programmes include schemes for both rural and urban areas under the National Social Assistance Programme (NSAP), which has three components viz., National Old Age Pension Scheme (NOAPS),National Family Benefit Scheme (NFBS) & National Maternity Benefit Scheme (NMBS). Under NOAPS, the destitute old age persons having little or no regular means of subsistence from his/her own source of income or through financial support from the family members or other sources is eligible to get old age pension @Rs.75 per month. In case of natural or accidental death of a primary bread winner member of the household qualifying to be below poverty line and contributing substantially to the total household income between the age group of 18 to 65, a sum of Rs.10,000/- is paid to the family of the deceased under NFBS.

Under the NMBS, cash assistance of Rs.500 is provided to the women of household below poverty line and 19 years of age and above, upto the first two live births. During 1999-2000,

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financial assistance of Rs.608.81 crore has been released under the National Social Assistance Programme to cover 65.41 lakh persons under different components of the programme.In addition to NSAP, other important scheme implemented by the Govt. To ensure creation of adequate employment opportunities to provide social security to the people in the unorganised sector are:

(i) Employment Assurance Scheme (EAS)

The Employment Assurance Scheme (EAS) launched on October, 1993 in some parts of the country was extended to all rural Panchayat Samities in 1997- 98. It envisages to create additional wage employment opportunities at the time 38 of acute shortage of wage employment through manual work undertaken for creation of infrastructure by the rural poor living below the poverty line. It is a centrally sponsored scheme run on cost sharing basis between the centre and states in the ratio of 75:25. Under Employment Assurance Scheme, a sum of Rs.3357.8 crore was made available to the state governments during 1998-99 and it generated 4279.36 lakh wage days during the same period.

(ii) Swaran Jayanti Gram Swarojgar Yojana (SGSY)

SGSY was launched on 1.4.99 by amalgamating erstwhile, IRDP, DWCRA, TRYSEM, SITRA, GKY and MWS primarily to improve the family income of the rural poor. It covers all aspects of self employment and beneficiaries assisted through credit-cum-subsidy programme.During the year 1999-2000, a total of Rs.959.86 crores was utilized by the States out of the allocations made by the Central Government (Rs.1105.0 crores) and State Governments (Rs.367.33 crores). A total of Rs.1056.46 crores was mobilized through credit under the scheme. The total number of swarozgaris assisted under the programme during the same period were 933868 of which 44.32% were SCs/STs, 44.62% women and 0.91% disabled.

(iii) Jawahar Gram Smridhi Yojana (JGSY)

JGSY was launched on 1.4.99 by restructuring the earlier JRY to ensure employment of rural infrastructure and generate wage employment for unemployed rural poor. During the year 1999-2000, out of the total financial assistance of Rs.2243.16 crores released by the Centre and the State Governments, 2683.08 lakh mandays were created with an expenditure of Rs.2035.27 crore. In addition to these programmes implemented through the Ministry of Rural Development & the Ministry of Urban Employment & Poverty Alleviation, the Ministry of Textiles also implements certain social security schemes for workers in the Handloom & Power loom sector.

Schemes for Handloom weavers and artisans

The office of Development Commissioner for Handlooms, Ministry of Textiles extends financial assistance under a central plan scheme, the workshed cum- housing scheme which is having subsidy, loan and beneficiaries contribution components. The unit cost of Rs.35,000 of rural house-cum-workshed consist of subsidy of Rs.18,000, loan from HUDCO/financial institutions Rs.14,000 and weavers’ contribution Rs.3000 whereas unit cost of urban house-cum-workshed Rs.45,000 consist of subsidy Rs.20,000, loan from HUDCO Rs.20,000 and

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weavers contribution of Rs.5000. During 1997-98 to 2000-01, financial assistance of Rs.53.05 crore was provided for construction of over 60,000 workshed-cum-housing units to the handloom weavers.

As a welfare measure, a centrally sponsored Thrift Fund Scheme is in operation for the benefit of handloom weavers. The member contributes 8 paise per rupee of wage earned and the Central and the State governments contribute 4paise each to the fund. The benefits include temporary advance, partial and final withdrawals. The scheme is implemented through the Weavers’ Cooperative Societies/Corporations etc. during 1997-98 to 2000-01, a sum of Rs.13.91 crore was provided to cover 6.9 lakh weavers under the Thrift Fund Scheme. The Health Package Scheme intends to ameliorate some of the health problems related to the profession of handloom weaving providing assistance for reimbursement of cost of medicine and treatment of diseases like T.B., Asthma, cost of testing of eyes and spectacles, supply of drinking water, maternity benefits and infrastructure for primary health care is in operation. A sum of Rs.14.26 crores to cover 2.37 lakh weavers under Health Package Scheme has been provided during the last four years. Two insurance schemes are in operation for the handloom weavers. The first one is a New Insurance Scheme implemented through United India Insurance Company for the benefit of handloom weavers wherein an annual premium of Rs.120 is shared by the central government, state government and the handloom weavers @ Rs.60, Rs.40 and Rs.20 respectively. The benefits include Rs.10,000 in case of loss dwelling due to natural calamities or fire, Rs. 1.00 lakh in case of accidental death, reimbursement of hospitalisation charges upto Rs. 2000/- and maternity benefits.. The second one is a Group Insurance Scheme wherein an annual premium of Rs.120 is shared equally by the central, state 40 government and the beneficiary and the sum assured is Rs 10,000/- only.. A sum of Rs.3.67 crore to cover 8.27 lakh handloom weavers has been provided to the state governments under both the insurance schemes during 1997-98 to 2000-01. Similarly, the Office of Development Commissioner for Handicrafts also implements Workshed-cum-Housing, Health Package and Group Insurance Scheme for Artisans. It also has a plan scheme to provide pension of Rs.1000/- per month at present to Master Crafts Persons unable to work due to old age. There is an insurance scheme for powerloom weavers also to cover the workers in the age group of 18 to 60 years, and earning Rs.700 per month. The annual premium of Rs.120 is equally shared by the central and state government. The insurance cover is Rs.10,000/- in case of natural death, Rs.20,000/- on accidental death in addition to the accumulated amount in the member’s running account payable with the interest @ 11% per annum.

Social Insurance Schemes

The Social Insurance Schemes available to the unorganised sector are operated through the LIC such as Social Security Group Insurance Scheme- All persons in the age group of 18 to 60 years belonging to the 24 approved occupation groups i.e. Beedi Workers, Brick-Kiln Workers, Carpenters, Cobblers, Fishermen, Hamals, Handicraft Artisans, Handloom Weavers, Handloom & Khadi Weavers, Lady Tailors, Leather & Tannery Workers, Papad Workers attached to SEWA, Physically Handicapped Self-employed persons, Primary Milk .Producers, Rickshaw Pullers/Auto Drivers, Safai Karmacharis, Salt Growers, Tendu Leaf Collectors, Urban Poor, Forest Workers, Sericulture, Toddy Tappers, Powerloom Workers, Women in Remote Rural Hilly Areas.

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The premium under the Social Security Group Insurance Scheme is Rs.10 per thousand sum assured, of which 50% is paid out of Social Security Fund and rest 50% is paid by the beneficiaries or the nodal agency. The benefits available include payment of Rs.25,000 in case of death or permanent total disability or loss of limbs and Rs.12,500 in case of loss of one eye or one limb in an accident. During 1998-99, 1.28 lakh new lives were covered and renewed 47.72 lakh lives covered earlier under the Social Security Group Insurance Scheme.

(i) Janshree Bima Yojana

The most important and comprehensive scheme that has been launched recently, is the Janashree Bima Yojana providing insurance cover of Rs.20,000 in case of natural death; Rs.50,000 in case of death or total permanent disability due to an accident and Rs.25,000 in case of partial disability. The premium for these benefits is Rs.200/- per beneficiary of which 50% of the premium i.e., Rs.100 is contributed from the “Social Security Fund” and 50% contributed by the beneficiary/state government/nodal agency.Janashree Bima Yojana is available to persons in the age group of 18 to 60 years and living below or marginally above the poverty line. The scheme is extended to a group of 25 members or more. During 2000-01, the scheme covered 2.16 lakh persons. It has been observed that coverage under the scheme is very slow. Lack of awareness, problems in constituting workers into group to take advantage of the scheme, non-availability of incentives to the agencies at the grass root level to organise the workers etc. are some of the reasons of low coverage under the scheme.

(ii) Krishi Shramik Samajik Suraksha Yojana-2001

Ministry of Labour in consultation with Ministry of Finance launched a Krishi Shramik Samajik Suraksha Yojana – 2001 through the Life Insurance Corporation of India w.e.f. 1.7.2001. The scheme envisages to cover 20,000 agricultural labourers from each of the selected 50 blocks/districts, taking at l st one from each state over a period of three years during the first phase. The agricultural labourers in the age group of 18 to 50 years are eligible to participate in the scheme. The beneficiary will contribute Rs.365/- per annum whereas the central government will provide Rs.730/- per annum per beneficiary from the ‘Social Security Fund’ for the year 2001-2002. The benefit available under the Scheme includes life-cum-accident insurance, money-back and the superannuation benefits. In case of natural death or permanent partial disability before the age of 60, beneficiary will get Rs.20,000/- and Rs.25,000/- respectively and Rs.50,000 in case of accidental death and permanent total disability. The 42 member will get pension ranging from Rs.100 to Rs.1900 per month depending upon the age of entry to the scheme on attaining the age of 60 years.The financial implication to cover one million agricultural labourers over a span of three years in 50 districts is roughly Rs.76 crore per annum. The extension of the scheme to other districts to cover 10 million agricultural labourers out of 74.6 million total landless agricultural labourers in the country may involve financial implication of Rs.850 crore per annum. During the 10th Five Year Plan, possibility of extension of the scheme to other districts of the country would be explored in the light of experience of the first phase of the scheme and availability of funds.

National Policy for Older Persons

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The Government has been increasingly concerned with the issues of ageing, health and income security during old age as well as its close links to the mental and emotional well being. The Poverty Alleviation Programmes directed at the aged alone cannot provide a solution to the income and social security problems of the elderly. Faced with such large numbers, it is imperative that the problem will have to be addressed through thrift and self-help, where people prepare for old age by saving accumulating through their decades in the labour force. The role that the Government can play in this enterprise is to create the necessary institutional infrastructure to enable and encourage each citizen to undertake this task. As a culmination of this growing concern the Ministry of Social Justice and Empowerment commissioned the National Project titled “OASIS” (acronym for Old Age Social and Income Security) and nominated an 8 member Expert Committee headed by Dr. S.A.Dave, former Chairman of Unit Trust of India, to examine policy questions connected with old age income security in India.

As per the Report, a person will open a single Individual Retirement Account (IRA) with the pension system at as early a point in his life as possible. The account will provide the individual with a unique IRA number that will stay with the individual through life. The individual would save and accumulate assets into this account in his working life, subject to a minimum of Rs.100 per 43 contribution and Rs.500 in total accretions per year. Individuals would be free to decide the frequency of accretions into their accounts; there will be no pressure to make a fixed monthly contribution. The account would stay with the individual across job changes, spells of unemployment, and can be accessed at any location in India. The individual would always have access to an account balance statement showing his assets. Also, the individual would be empowered in having control of how his pension assets should be managed. Finally, upon retirement, the individual would be able to use his pension assets to buy annuities from annuity providers and obtain a monthly pension.

At age 60, an individual would be able to derive benefits from his retirement account. The pension system would require that the first Rs.2,00,000 of accumulations be used for buying an annuity and thus obtaining a monthly inflation-indexed pension of roughly Rs.1500- which is well above the poverty line. Beyond that, an individual would be free to decide how his assets should be deployed. This minimum mandatory annutisation level (of Rs.2,00,000) should be periodically revised to keep pace with inflation. Premature cessation of accumulation (e.g. owing to retirement before age 60) would be possible only if 100% of the assets are annuitised. Other benefits include integration of a micro credit facility into the pension system whereby individuals can have access to the Funds in the form of a loan

against their pension savings. The bank branches can disburse these loans upto Rs.5,000 provided the individual pension account has a balance in excess of Rs.10,000. The premature withdrawal would be permitted once an individual accumulate Rs.2 lakh in the Individual Retirement Account (IRA). Such withdrawals to a maximum of 30% of the accumulated balance above Rs.2 lakh shall be permitted for housing, medical, expenses for serious illness or other grounds specified by the Regulating Authority. However, the recommendations of the Report are still under examination.

A very fundamental handicap in the matter of registration and coverage of eligible categories of workers under social security schemes, whether being run by Central Government agencies or State Government agencies is the lack of a national enumeration for the workforce. Even amongst the workers who are covered by different schemes in operation

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under control of Central Government or State government, no nationally unique number is prevalent or available. Each 44 agency that registers such workers and delivers benefit allots its own separate number, none of which are nationally unique.

Given the context of the level of mobility in the country’s work force of close to 400 million workers, it is critical that a worker must have a nationally unique number which is potable i.e. the worker carries the number permanently across locations, across work and across employment, whether in the formal or in the informal sector. Such number must have the appropriate algorithm and technical structure which will be able to detect a duplicate or identify a worker who files for registration a second time as a worker though he already has a social security number.

None of the Organizations that delivers social security benefit have a numbering system or a design structure that is even remotely adequate to meet the requirements of registering the workforce with a nationally unique number. The registering of the workforce is a key concern and a key pre-requisite for any social security or social assistance program where accounts have to be maintained, workers identified and benefits delivered to the appropriate person.

The EPF, which has the largest coverage, is faced with the problem of the same worker having multiple numbers resulting from change in employment. Workers withdraw accumulated benefits entirely at the time of change in employment which defeats the very purpose of social security in the form of old-age income protection.

There is an even greater need to establish a nationally unique number for the informal sector where job changes and migration are far more frequent. The basic reason for lower participation and buy-in into the EPF programs from the migrant labour, the casual labour, the construction labour and other service sector labour in the lack of a nationally unique number and a single constant account for such member which is not linked to location or employment. Even the proposals proposed under the OASIS report presume the allotment of a nationally unique number to the worker before the commencement of even the first contribution from him.

Given the above ground situation, the Working Group is of the opinion that, as part of the Tenth Plan a key focus area should be to establish a single national enumeration in the form of a social security number for the workforce. This number should be used by all agencies of

the Central and State Governments in the matter of delivery of social security benefits to workers. Apart from the direct benefits at the operational level in the matter of collection, accumulation and accounting of contributions and distribution of benefits, valuable strategic data will be generated indicating information relating to the mobility of the workforce, gender issues, seasonal movement in relation work, family status, income levels etc. in the work force which can be the basis for any future policy formulation at the strategic level.

Welfare Funds

The Central Government through the Ministry of Labour also operates at present Five Welfare Funds for Beedi workers, Limestone & Dolomite Mine workers, Iron ore, Chrome ore & Manganese ore Mine workers, Mica Mine workers & Cine workers. Source of funding of these Funds is collection through cess on mica export, export of iron ore, internal

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consumption of iron ore, manganese ore and chrome ore as well as limestone and dolomite. The welfare fund for beedi workers is being financed by levy of cess @ Rs..2 per thousandmanufactured beedis. Income under the Funds has reached the level of Rs.97.78 crore in 2000-01. Out of total collection of cess in 200-2001, share of cess collection on beedi has been 58%. These Funds are utilised to provide various kinds of welfare amenities to the workers in the field of health care, housing, educational assistance for children, drinking water supply etc. The medical assistance provided under the welfare fund includes purchase of spectacles to mine and beedi workers, reservation of beds in T.B. hospitals, treatment andsubsistence allowance in case of tuberculosis, reimbursement of expenditure upto Rs.1.0 lakh for heart disease and kidney transplant, maternity benefits @ Rs.500/- for delivery to a female beedi worker for first two deliveries and assistance for family welfare.

Group Insurance Scheme for Beedi Workers

There are 45 million beedi workers in the country. The beedi workers are covered under Group Insurance Scheme providing Rs.3,000/- in case of natural death, Rs.25,000/- due to accidental death or total permanent disability and Rs.12,500 in case of partial permanent disability. The premium of Rs.18 per worker per annum is equally shared by the Beedi Worker Welfare Fund (BWWF) and ‘Social Security Fund’ of the Central Government. Integrated Housing Scheme for beedi and mine workers. An Integrated Housing Scheme for Beedi / Iron ore/Manganese ore/Chrome ore workers, Limestone and Dolomite mine workers is in operation wherein subsidy of Rs.20,000 per worker or 50% of the actual cost of construction whichever is less is provided.

Welfare Fund for Building and Other Construction Workers

There is Building and Other Construction Workers Act, 1996 enacted by the Central Govt. Most of the state governments are in the process of constituting Welfare Funds, framing the rules etc. The Act has provision of levying a cess and to implement the Scheme through the welfare fund for the benefit and welfare of building and other construction workers. The implementation of this Act and Constitution of welfare fund in the long run will take care of social security needs of the workers engaged in construction activities in the unorganised sector. Further, Govt. is also examining the possibility of having a National Policy on Home Based Workers, which may provide broad framework to safeguard the interests of this

category of workers in the unorganised sector.

Thrust AreasAn important thrust area identified by the Ministry of Labour, Government of India, is the social security of workers in the fish processing industry. These workers constitute an extremely vulnerable and exploited category and are located in about 400 fish processing units in 9 coastal states of the country. The vast majority of these workers are migrant women in the age group of 16 to 35 years. A Task Force of the Ministry of Labour earlier investigated into their living and working conditions has recommended that steps may be taken for constituting a welfare fund for their benefit. This welfare fund would be used for providing various kinds of social security and welfare amenities to such workers. Similar welfare funds could be constituted for the workers for the Salt, Tendu, Taddytappers during the 10th Five Year Plan.

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Experience of the States

In addition to the Central Government, a number of State Governments have also set up welfare funds for various categories of workers. The Govt. Of Kerala have set up about 35 Welfare funds for different categories of occupations and sectors. These welfare funds cater to the needs of agricultural workers, auto rickshaw workers, cashew workers, coir workers, construction workers, fishermen and women, khadi workers, handloom workers etc. The Govt. of Assam has set up a statutory fund under Assam Plantation Employees Welfare Fund Act, 1959 for the benefit of the plantation workers. Similar funds have also been set up in Gujarat and Maharashtra under Bombay Labour Welfare Fund Act, 1953 and in Karnataka under Mysore (Karnataka) Labour Welfare Act, 1965 and in Punjab under the Labour Welfare Act, 1965. The State Governments of Andhra Pradesh and Uttar Pradesh have also set up Welfare Funds for various categories of workers. All these welfare funds however, cater to a very small segment of the total workforce.

In view of the change in the perception of the social security i.e. an essential input to the productivity rather than burden on exchequer, some state governments are making concerted efforts to extend social security to the workers in the unorganised sector. For instance, the Govt. of Karnataka is going to set up a Social Security Authority of Karnataka and create a Welfare Board to cater to the needs of the 66 identified occupational groups shortly. Further, occupational groups can be added to it as and when the need be. The Welfare Fund will be created by levying a cess from transport vehicles, employers contribution, workers and the state government when there is no employer. The Fund created therein will be utilised to implement schemes and programmes covering pension, health, housing, insurance in case of death and disability aspects for the benefit of workers.

Recently, the Government of West Bengal introduced State Assisted Scheme of Provident Fund for Unorganised Workers (SASPFUW). The scheme covers all wage employed and self employed workers between the age of 18 to 55 years in the unorganised sector having an average family income of not more than Rs.3500 per month. Each subscriber worker contribute a sum of Rs.20 per month and equal matching amount contributed by the state government. The interest on the balance at credit of subscriber is also paid by the state

government annually at the rate declared by the State Government. Total contribution along with interest has to be refunded to the worker on attainment of the age of 55 years. The scheme will have provision for loans and withdrawals from the fund as prescribed by the State government. The government of West Bengal had identified 50 industries in the unorganised sector and 16 self employed occupations, of which 13 unorganised industries and 7 self employed occupations are being covered in the first phase. These industries include tailoring shops, establishments having less than 20 workers, bakery, handloom, construction, earthen pottery, stone crushing, auto repairing, etc. The self employed occupations include cycle rickshaw, head load workers, railway/street hawkers, auto rickshaw operators, mason and cobblers.

The Department of Agriculture (Mandi Branch), Govt. of Punjab implements a scheme financed from the funds available with marketing Committees/Boards to provide financial assistance to the farmers and labourers. In case of death or injury by operating the agricultural

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machinery/implements and undertaking other operations both at the level of farm or mandi since 1984. The scope of the scheme includesa) Death or disablement to any farmer or labourer (Farm and Mandi) working in the agricultural machinery implements or arising out of the use of the said machinery implements in the state of Punjab.b) Death or disablement to any farmer or labourer arising out of digging of tubewell in the state of Punjab or electric current while operating tubewell in the farm.c) Death or disablement to any farmer or labourer while using the insecticides or pesticides in the State of Punjab or due to snake biting while working in Mandi/Field or watering the field.d) Death or disablement to labourer employed in Mandi arising out of use of agricultural machinery implements. Mandi means principal and sub-yard including purchase centre declared by Punjab Govt. Through Food & Supply Dept., PUNSUP, MRKFED or F.C.I. within the State of Punjab.The financial assistance provided under the scheme includes payment of Rs.75,000/- in case of death, Rs.30,000/- in case of partial disability such as loss of one leg, eye, arm or serious injury, Rs.45,000/- in case a farmer or labour lost both eyes, arms, leg, etc. Rs.7,500/- to Rs.22,500/- in case of loss of fingers andRs.30,000/- in case of loss of four fingers which is treated as loss of one arm.The Group was apprised of the free medical check up camps being organised by the Government of Punjab. Workers working in hazardous and dangerous process industries come in contact with various toxic substances and other chemicals from which they are likely to contact with occupational diseases. The Government of Punjab has decided to carry out free medical check up of such workers. Till date 165 medical check up camps have been organised in which 50,000 workers have been examined and medicines worth Rs. 18 lakhs were spent in these camps by the employers which generated a lot of goodwill. 3500 workers were referred to the ESI Hospitals for their blood test, chest X-rays, surgical operations, skin diseases, leprosy etc. This is a very welcome step in the right direction as it demonstrates the willingness of the State to share the burden in delivery of health services.

The Government of Tamil Nadu introduced Tamil Nadu Social Security and Welfare Scheme-2001. These schemes cover manual worker, Auto Rickshaws and Taxi Drivers, Washer-men, Hair-dressers, Tailoring workers, Handicraft workers and Palm tree workers. The State government is planning to formulate scheme for handlooms and handloom silk-

weaving workers, footwear and leather goods manufacturing and tannery workers and artists. State government has set up the goal and social security and welfare fund for the respective workers. Every worker registered under the scheme for two years initially has to pay a sum of Rs.100 and every employer 3% of the wages payable by him to the worker employed to the social security and welfare board. The fees for renewing the registration is Rs.10. The funds are to be utilised for paying premium towards insurance coverage having provision of compensation of Rs. One lakh in case of death or loss of both hands, feet, Rs.50,000 in case of loss of one hand or one foot and Rs.25,000 in case of permanent total disablement from injuries other than loss of limbs or death. The financial assistance is extended to the tune of Rs.10,000 to the nominee of the deceased worker in case of natural death and Rs.2,000 to meet the funeral expenses. Assistance of Rs.1,000 for the education of the son or daughters of the workers passing 10th Standard examination, Rs.1500 for passing plus two examination and studying in regular bachelor degree course and Rs.2,000 in case of post graduate course or professional course for every academic year is provided through the fund. A sum of Rs.2,000 is extended to the applicant or his son or daughter for marriage. Further, assistance

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is also extended for delivery or the miscarriage or pregnancy or the termination of pregnancy by a registered female worker to the extent of Rs.2,000.

Public Initiatives

In addition to Governmental efforts, several public institutions and agencies are also providing various kinds of social security benefits to selected groups of workers. Two of the outstanding examples are those of Self-Employed Women’s Association (SEWA) and the Mathadi Workers Boards in Maharashtra. The social security experiments of SEWA started in 1975 with a demand from members for a maternal protection scheme followed by health care and child care. This was followed by starting of an insurance programme in collaboration with insurance companies. The insurance scheme started by the SEWA Bank was based on a realistic estimate of the capacity of the members to pay the premium. An Integrated Insurance Scheme introduced by SEWA for its members, offers 51 several benefits for a consolidated premium of Rs.45/- per annum. While SEWA itself provides some of the benefits, it works as a nodal agency to get cover under various policies separately for specific benefits from different insurance companies. The risk covered includes health costs upto Rs.1000/-, maternity benefit of Rs.300/- and payment of varying amounts upto Rs.10,000/- in case of natural or accidental death including disablement of the member or her husband. The insurance scheme has turned out to be both popular and financially viable. The total coverage of SEWA social security scheme is about 50,000 women. The experience of SEWA reveals that in order to become effective, the social security scheme for the unorganised sector should be locally managed and controlled .Further, only such schemes will become viable which is need based and integrated with the economic activities of the local people. If poor people are supported through capacity building and necessary linkages are provided with their own economic activities the chances of success of social security efforts increased significantly. Further, it has demonstrated that, it is not only necessary to search new social security programmes but new social security organizations to run them.

A mathadi is a worker who carries a load on his head, back, neck or shoulders. Normally his work consists of loading, unloading, carrying, shifting, weighing, tapping, banding and stacking goods. In the State of Maharashtra, the Mathadi Labour Market is regulated by

Mathadi Tripartite Boards set up since 1969. There are about 50,000 registered employers and 1,50,000 workers registered under 30 different Boards in the State. Each Board is headed by a Chairman appointed by the Government of Maharashtra and there are equal number of representatives from the unions and the employers associations.

The Mathadi Workers Boards, besides settling disputes between unions and employers, are actively involved in imparting social security benefits to their members by setting up of hospitals and dispensaries. At present there are two hospitals with an annual budget of Rs.2 crores which are run by six Mathadi Boards. In addition to this, there are 12 dispensaries. Each of the six Boards contributes 2% of their levy and each worker contributes Rs.20 per month. These hospitals provide diagnostic services such as radiology, pathology and sonography for around 40,000 workers and their families. During the last few years, some of the Mathadi Boards have been able to get the workers registered with them insured against accident, injuries and death.

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For example, Mathadi Boards in Pune are paying Rs.152/- per annum as premium out of the Board’s administrative account to cover workers for a benefit of Rs.25,000/- in case of injury and Rs.2,00,000 in case of death to each worker.This scheme has been worked out by the Mathadi Board with the General Insurance Corporation. Organisations like Co-operative Development Foundation (CDF), SAMAKHYA, Trivandrum District Fishermen Federation (TDFF), the Association of Sarwa Sewa Farms (ASSF), the Society for Promotion of AreaResources Centre (SPARC), Voluntary Health Services (VHS) in Tamil Nadu and the Working Women’s forum have experimented for providing social security to small groups of people. The VHS in Chennai, the SAMAKHYA in Andhra Pradesh and the Association for Health Welfare in Nilgiris (ASHWINI) in the tribal areas of Gudalur in Tamil Nadu have made efforts to provide medical care to very specific target groups. The approach of these agencies is based on collecting of contribution from the beneficiaries themselves for their future contingencies in line with the insurance principles.

Unorganised Sector

Social Security cover for the unorganised sector which can take care of medical care, accident benefits and old age pension should receive priority attention. This Sector Comprises of near 92% work force of the country. It is essential to enhance the coverage under national social assistance programmes providing old age pension, maternity and other benefits to the workers in the unorganised sector.

A separate Pension Scheme, with State support may be formulated during the Tenth Five Year Plan. At present only the members of the provident fund are included in the Employees Pension Scheme, 1995. The Pension Scheme may be delinked from the Provident Fund Scheme as this would encourage workers in the unorganised sector to subscribe to Pension Scheme for old age security. Other new approaches would be necessary to put in place pension schemes for the unorganised sector.Medical care facilities may be provided to the workers in the unorganized sector following a simple procedure. A lump sum amount may be charged from a compact group of workers who would be persuaded to form cooperative societies for this purpose.Innovative schemes under the ESIS should be launched on experimental basis targeting groups like rickshaw pullers.With a view to have a visible impact of social security measures taken through various schemes and programmes implemented by the central and state governments, the convergence of these programmes to cater to the social security needs of the workers in the unorganised sector in an integrated manner would need to be emphasised.The requirements of the working population and resources that can be pooled from the workers, the employers and the state or national level institutions differ from place to place. Therefore, community based and location specific social security measures will be encouraged through Self Help Groups, voluntary organisations, etc.The welfare board has been set up for beedi, mine and cine workers.Efforts should be made to constitute welfare boards for other segment of workers in the unorganised sector such as fish processing, taddytapper, salt worker, etc.

State Governments like Kerala, Tamil Nadu, and West Bengal have introduced social security schemes providing insurance and other benefits to the certainoccupational groups in the

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unorganised sector. Other states should be motivated and encouraged to formulate and implement such schemes and programmes as per their requirements.Concerted efforts should be made to enhance the coverage under national social assistance programmes providing old age pension, maternity and other benefits to the workers in the unorganised sector.It is crucial to build up awareness as compulsory measure to prevent exploitation of workers in the unorganised sector. Steps need to be initiated for inviting active participation from the voluntary organizations, trade unions and other committed individuals to build up such social awareness with the object of empowering workers who are currently vulnerable to exploitation Plan support should be continued for the Krishi Shramik Samajik Yojana which has been launched from 1st July, 2001. The extension of the scheme to cover 10 million agricultural labourers would require substantial expenditure during the Tenth Five Year Plan.

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RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research method as technique but also the methodology. Thus, “when we talk at research methodology we not only talk of the research method but also consider the logic behind the methods we use in the contest of our research study and explain why we are using a particular method or technique and why we are not using other so that research results are capable of being evaluated either by the researcher himself or by other”.

OBJECTIVES

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The main aim of research is to find out the truth which is hidden and which has not been discarded as yet. Through each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad grouping.

1) To gain formality with a phenomenon or to achieve new insight into it.

2) To portray accurately the characteristic of a particular individual, situation or a group.

3) To determine the frequency with which something occur or with which it is associated with something else.

4) To develop my understanding of the subject.

o Social Security Benefits is implemented in various Organizations and it varies according to the need and suitability. Through my research, I havetried to study the kind of benefits provided in the Organization and thevarious pros and cons of this type of system.

5) To conduct a study on social behavior.

o Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for socialdevelopment.

6) To enhance the welfare of employees.

o The Social Security system is conceived by the Management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in the Organization. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Social Security Benefits.

7) To exercise social control and predict changes in behavior.

o The ultimate object of my research is to make it possible to predict the behavior of individuals by studying the factors that govern and guide them.

8) To know what i did, why, and the interpretation of the results.

9) To demonstrate an understanding of research methodology.

10) To demonstrate critical and analytic argument in the interpretation of my findings and those of others.

11) The quality of my report is the main determinant of the mark for the unit.

12) To know the types of facilities and welfare activities for the employee’s benefit.

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13) To know the customer satisfaction level for competitors products. .

14) To find out the various factors leading to employee morale in the organization.

15) To know the level of satisfaction of the employees towards the company.

RESEARCH DESIGN

This study was descriptive design with the aim of complete study of “Windsor Machines Limited”.

SAMPLE

This study is done during the year 2011.i.e (from 15 th June 2011 to 15th August 2011). Time period for the research was 2 months. This research has identified at the unit.i.e. “Windsor Machines Limited” for the purpose of study and data collection. The researcher has taken a sample of 40 employees from a unit.

Sampling Procedure

The collected data is analysed and tabulated with the help of statistical technique like percentage. Tabulated and analysed is separated for comparison with different groups accordingly and the observations will be prepared for meaningful conclusion and suggestion.

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DATA ANALYSIS AND INTERPRETATION

Q. 1) How many facilities provided by the company to you?

SL.No. Particulars No. of Respondents Percentage1. Canteen 10 25%

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2. Housing 10 25%3. Education 10 25%4. Medical 10 25%

Total 40 100%

The above data base structure shows that 25% of the employees convey that they are provided with canteen facilities, 25% of the employees convey that they are provided with housing facilities, 25% of the employees convey that they are provided with Education facilities for their children and 25% of the employees convey that they are provided with medical facilities..

We can represent the following data with help of below visual pie-diagram!

25%

25%25%

25%

Canteen Housing

Education Medical

Q.2 Are you satisfied with the ESI that you avail from the company?

SL.No. Particulars No. of Respondents Percentage1. Satisfied 25 62%2. Highly Satisfied 12 30%3. Not Satisfied 3 8%

Total 40 100

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The above data base structure shows that 62% of the employees are satisfied with the ESI avail from the company, 12% of the employees are Highly satisfied with the ESI avail from the company, 3% of the employees are Not satisfied with the ESI avail from the company.

We can represent the following data with help of below visual pie-diagram!

62%

30%

8%

Satisfied

Highly Satisfied

Not Satisfied

Q.3) Are you satisfied with your availing of Workmen Compensation Fund as per the requirement?

SL.No. Particulars No. of Respondents Percentage1. Satisfied 24 60%2. Highly Satisfied 10 25%3. Not Satisfied 6 15%

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Total 40 100%

The above data base structure shows that 60% of the employees are satisfied with the WCF avail from the company, 10% of the employees are Highly satisfied with the WCF avail from the company,6% of the employees are Not satisfied with the WCF avail from the company.

We can represent the following data with help of below visual pie-diagram!

Q.4) How many facilities are provided for education of children to employees?

SL.No. Particulars No. of Respondents Percentage1. Bus Facility 14 35%2. School Facility 10 25%3. Education Loan Facility 16 40%

Total 40 100%

The above data base structure shows that 35% of the employees are satisfied with the Bus Facility provided for children of employees from the company, 25% of the employees are Highly satisfied with the School Facility provided for children of employees from the

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60%25%

15%

Satisfied

Highly Satisfied

Not Satisfied

company, 40% of the employees are Not satisfied with the Education Loan Facility provided for children of employees from the company.

We can represent the following data with help of below visual pie-diagram!

35%

25%

40%

Bus facility

School facility

Education loan facility

Q.5) Are you getting wages as per basic minimum criteria allotted by government?

SL.No. Particulars No. of Respondents Percentage1. Yes 30 75%2. No 8 20%3. No suggestions 2 5%

Total 40 100%

The above data base structure shows that 75% of the employees says yes that the wages provided to them is as per basic mnimum criteria alloted by the government, 20% of the employees says no that the wages provided to them is not as per basic mnimum criteria alloted by the government, 5% of the employees says no suggestions that the wages provided to them is as per basic mnimum criteria alloted by the government..

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We can represent the following data with help of below visual pie-diagram!

75%

20%

5%

Yes No No Suggestions

Q.6) How much time it will take for sanctioning security benefits?

SL.No. Particulars No. of Respondents Percentage1. 1 week 4 10%2. 2 to 3 week 20 50%3. 3 to 4 week 16 40%

Total 40 100%

The above data base structure shows that 10% of the employees says that it takes 1 week for sanctioning security benefits, 50% of the employees says that it takes 2 to 3 week for sanctioning security benefits, 40% of the employees says that it takes 3 to 4 week for sanctioning security benefits.

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We can represent the following data with help of below visual pie-diagram!

10%

50%

40% 1 week

2 to 3 week

3 to 4 week

Q.7) Is there suitable ventilation and good environment in the work place?

SL.No. Particulars No. of Respondents Percentage1. Yes 26 65%2. No 8 20%3. No Suggestions 6 15%

Total 40 100%

The above data base structure shows that 65% of the employees says yes that the have suitable ventilation and good environment in the work place, 20% of the employees says no that they do not have suitable ventilation and good environment in the work place, 15% of the employees says no suggestions about the suitable ventilation and good environment in the work place.

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We can represent the following data with help of below visual pie-diagram!

65%

20%

15%

Yes No

No Suggestions

Q.8) Do you have freedom to change your shift for your convenience?

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YES NO0

10

20

30

40

50

60

70

80

90

The above data base structure shows that 85% of the employees says yes that they have freedom to change their shift according to their convenience, 15% of the employees says no that they do not have freedom to change their shift according to their convenience.

Q.9) Are you satisfied with your compensation at the time of your leave?

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SL.No. Particulars No. of Respondents Percentage1. Highly Satisfied 12 30%2. Satisfied 24 60%3. Partly Satisfied 2 5%4. Not Satisfied 2 5%

Total 40 100%

The above data base structure shows that 30% of the employees are Highly satisfied with the compensation given by the company at the time of leaving company, 60% of the employees are satisfied with the compensation given by the company at the time of leaving company,5% of the employees are partly satisfied with the compensation given by the company at the time of leaving company, 5% of the employees are not satisfied with the compensation given by the company at the time of leaving company.

We can represent the following data with help of below visual pie-diagram!

30%

60%

5%5%

highly satisfied

satisfied

partly satisfied

not satisfied

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Q.10) How do you feel about your facilities provided by the company?

SL.No. Particulars No. of Respondents Percentage1. Highly Satisfied 25 62%2. Satisfied 11 28%3. Partly Satisfied 2 6%4. Not Satisfied 1 4%

Total 40 100%

The above data base structure shows that 62% of the employees are Highly satisfied with the facilities provided by the company, 28% of the employees are satisfied with the facilities provided by the company, 6% of the employees are partly satisfied with the facilities provided by the company, 4% of the employees are not satisfied with the facilities provided by the company.

We can represent the following data with help of below visual pie-diagram!

62%

28%

6%4%

highly satisfied satisfied

partly satisfied not satisfied

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Q.11) Kindly suggest the methods of improving or adding social benefits?

SL.No. Particulars No. of Respondents Percentage1. No improvement 7 17%2. Early action should be taken 30 75%3. Proper time should be taken 3 8%

Total 40 100%

The above data base structure shows that 17% of the employees says that no improvement, 75% of the employees says early action should be taken, 8% of the employees says that proper time should be taken.

We can represent the following data with help of below visual pie-diagram!

17%

75%

8%

No improvement

early action should be taken

proper time should be taken

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Q.12) Does social benefits provided by the organization plays as a motivational factor?

SL.No. Particulars No. of Respondents Percentage1. Highly Agree 21 53%2. Agree 18 45%3. Disagree 1 2%

Total 40 100%

The above data base structure shows that 53% of the employees Highly agree that the social benefits provided by the organization plays as a motivational factor, 45% of the employees agree that the social benefits provided by the organization plays as a motivational factor, 2% of the employees disagree that the social benefits provided by the organization plays as a motivational factor.

We can represent the following data with help of below visual pie-diagram!

53%45%

2%

highly agree agree

disagree

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Q.13) Do you get medical reimbursement on time?

SL.No. Particulars No. of Respondents

Percentage

1. Yes and with full reimbursement 21 53%2. Yes but with reduced reimbursement 12 30%3. No 1 2%4. Not applicable 6 15%

Total 40 100

The above data base structure shows that 53% of the employees says yes and with full reimbursement, 30% of the employees says yes but with reduced reimbursement, 2% of the employees says no that they do not get reimbursement, 15% of the employees says that it is not applicable to them.

We can represent the following data with help of below visual pie-diagram!

53%30%

2% 15%yes and with full re-imbursement

yes but with reduced re-imbursement

No

Not applicable

.

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Q.14) Briefly explain the procedure availing for gratuity in points?

SL.No. Particulars No. of Respondents Percentage1. Lengthy process 30 75%2. Not availed 2 5%3. Apply take approval & show proof 8 20%

Total 40 100%

The above data base structure shows that 5% of the employees of organization says that they had not yet availed gratutiy, 75% says that the procedure is apply the approval and show proof and the other 20% says that the procedure is too lengthy process.

We can represent the following data with help of below visual pie-diagram!

75%

5%

20%lengthy process

not availed

apply take approval n show proof

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Q. 15) Briefly explain procedure for availing the Provident Fund ?

SL.No. Particulars No. of Respondents Percentage1. Make an application submit proof

& sanction it.4 10%

2. Length Process 36 90%Total 40 100%

The above data base structure shows that 90% employees says that they have to just apply, submit proof & take approval of higher authority and only 10% employees says that the procedure is lengthy.

We can represent the following data with help of below visual pie-diagram!

90%

10%

Make an application submit proof & sanction it

Length process

.

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FINDINGS, SUGGESTIONS AND CONCLUSION

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FINDINGS

Strategic analysis of Windsor Windsor is well situated strategically, with very good growth opportunities. Capitalizing the opportunities posed using its strengths has to be the focus for Windsor.

Competitive analysis of WindsorMajor competitors of Windsor Machines in Engineering Sector are are: Kilbum Engineering Ltd., UB Engineering Ltd.,Kabra Extrusions Technik Ltd.,etc which are consistently striving to be the best in terms of technology, unique offerings, better customer service and ultimately to own more market share. Windsor must benchmark its business process with international Companies.

Engineering Market research Indian Engineering sector is booming. Many of the segments are untouched, so Windsor should take this as an opportunity.

Employees satisfaction survey

25% of the employees convey that they are provided with canteen facilities, 25% of the employees convey that they are provided with housing facilities, 25% of the employees convey that they are provided with Education facilities for their children and 25% of the employees convey that they are provided with medical facilities.

62% of the employees are satisfied with the ESI avail from the company, 12% of the employees are highly satisfied with the ESI avail from the company, 3% of the employees are Not satisfied with the ESI avail from the company.

60% of the employees are satisfied with the WCF avail from the company, 10% of the employees are Highly satisfied with the WCF avail from the company,6% of the employees are Not satisfied with the WCF avail from the company.

35% of the employees are satisfied with the Bus Facility provided for children of employees from the company, 25% of the employees are Highly satisfied with the School Facility provided for children of employees from the company, 40% of the employees are Not satisfied with the Education Loan Facility provided for children of employees from the company.

75% of the employees says yes that the wages provided to them is as per basic mnimum criteria alloted by the government, 20% of the employees says no that the wages provided to them is not as per basic mnimum criteria alloted by the government, 5% of the employees says no suggestions that the wages provided to them is as per basic mnimum criteria alloted by the government.

10% of the employees says that it takes 1 week for sanctioning security benefits, 50% of the employees says that it takes 2 to 3 week for sanctioning security benefits, 40% of the employees says that it takes 3 to 4 week for sanctioning security benefits.

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65% of the employees says yes that the have suitable ventilation and good environment in the work place, 20% of the employees says no that they do not have suitable ventilation and good environment in the work place, 15% of the employees says no suggestions about the suitable ventilation and good environment in the work place.

85% of the employees says yes that they have freedom to change their shift according to their convenience, 15% of the employees says no that they do not have freedom to change their shift according to their convenience.

30% of the employees are Highly satisfied with the compensation given by the company at the time of leaving company, 60% of the employees are satisfied with the compensation given by the company at the time of leaving company,5% of the employees are partly satisfied with the compensation given by the company at the time of leaving company, 5% of the employees are not satisfied with the compensation given by the company at the time of leaving company.

62% of the employees are highly satisfied with the facilities provided by the company , 28% of the employees are satisfied with the facilities provided by the company, 6% of the employees are partly satisfied with the facilities provided by the company, 4% of the employees are not satisfied with the facilities provided by the company.

17% of the employees says that no improvement, 75% of the employees says early action should be taken, 8% of the employees says that proper time should be taken.

53% of the employees says yes and with full reimbursement, 30% of the employees says yes but with reduced reimbursement, 2% of the employees says no that they do not get reimbursement, 15% of the employees says that it is not applicable to them.

53% of the employees Highly agree that the social benefits provided by the organization plays as a motivational factor, 45% of the employees agree that the social benefits provided by the organization plays as a motivational factor, 2% of the employees disagree that the social benefits provided by the organization plays as a motivational factor.

5% of the employees of organization says that they had not yet availed gratutiy, 75% says that the procedure is apply the approval and show proof and the other 20% says that the procedure is too lengthy process.

90% employees says that they have to just apply, submit proof & take approval of higher authority and only 10% employees says that the procedure is length

There was found to be a timely well-structured and well-administered organizational culture in Windsor Machines Limited.

The wages and salaries structure of the company was found to be strictly in accordance with the law.

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A duly and timely filing of all returns in relation to wages and salary administration was carried out.

The awareness level among the employees regarding the various leaves and facilities being provided by the company were found to good.

There was a general satisfaction amongst the people with regards to their salaries in relation to their merits

It was found that company did not provide any educational facilities to the employees.

There was a general satisfaction amongst people with regards to canteen and other facilities. Also they are not completely satisfied by the welfare activities of company.

There was found to be very low job security amongst employees.

The salary of most of the people could satisfy either their basic needs only, or their needs as well as reserve requirements

Most of the people employed at Windsor felt that their colleges possessing approximately equal qualifications and experiences working in other firms were drawing more salary than them

Frequent biases can be witnessed in the plant.

There is a lack of technical knowledge among the workers of the company.

A majority of the employees working at Windsor are satisfied with the leaves they are provided.

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SUGGESTIONS

With all the theoretical knowledge and practical experience I posses, I would like to suggest

the following-:

1) Sanctioning time of social benefits should be reduced.

2) New benefits should be added to the existing ones by early action taken by management.

3) Medical reimbursement should also be continued after the retirement.

4) To increase the awareness level of employees working at Windsor with regards to various

things like number of earned leaves.

5) To improve upon their Grievance redresser programme should be conducted.

6) To bring a sense of job security among the employees.

7) They should be provided with welfare activities in absolute terms.

8) Trainings and development program should be conducted more seriously.

9) Rules and regulations of the enterprise or that of the plant should be made clearer to

every employee working in Windsor and it should be insured that they abide to the same.

10) Management should reduce the work load of the employees.

11) It will be more effective if the management take the steps to introduce suggestion scheme

system for the employees.

12) The management should pay reasonable wage and allowance to the employees.

13) It is better the management should recognize the needs of employees and encourages

employees special talents.

14) It will be better if the management provides incentives to employees so it will boost in

their morale and productivity.

15) Supervisors should maintain coordinal relationship with workers and offers recognitions

of the employee efforts and provide needed guidance to workers.

16) It will be better if management provide performance and potential appraisal in regularly.

17) The management should provide opportunities for career development.

18) It will better if management given performance awards to employees.

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CONCLUSION

Windsor is emerging as one of the good Enginnering company in India. Already it has served

more than 15,000 clients globally starting from individual entrepreneurs, small and medium

scale enterprises to M/s Kuhne Gmbh Germany, KUAG Austria etc. and others MNC. Still,

it‘s a long way to go for Windsor.

In the present situation, Windsor must expand its business operation by getting financing

from Venture capitalists or from Banks. Company should strengthen its competitive position

by Research & Development to have unique selling proposition.

This project gave me business acumen about the Engineering industry and the responsibilities

I have given made me industry ready by providing me an opportunity to handle HR activities

like client presentations, interactions with clients, etc.

This project has helped me understand the importance and significance of employees

satisfaction and has given me exposure to the practical side of Enginneering industry and at

the same time enhanced my knowledge by applying theory learnt in class to practice..

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BIBLIOGRAPHY

WEBSITES:-

www.windsormachines.com

www.blogspot.com

mppasher@nus.edu.sg

E - Books

Government of India, Ministry of Social Justice and Empowerment, 2000 , The Project OASIS Report, New Delhi.

Social Security in India by “Wilbur J. Cohen”

Search Engine:-www.google.com

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ANNEXURE - QUESTIONNAIRE

QUESTIONNAIRE PLEASE TICK THE ANSWER OF FOLLOWING

PLEASE TICK

Dear Respondent,I would be grateful if you could spare some of your time to respond to the following questions. Your response will be treated as confidential and would only be used for the purpose of study.

Part-APersonal Details:-

1. Name :2 Age :3 Marital Status:4 Qualification: 5 Department: 6 Year of Experience:

Part-B

1) How many facilities provided by the company to you?

a) Canteen b) Housing

c) Education d) Medical

2) Are you satisfied with the ESI that you avail from the company?

a) Satisfied b) Highly satisfied c) Not satisfied

3) Are you satisfied with your availing of Workmen Compensation Fund as per the

requirement?

a) Satisfied b) Highly satisfied c) Not satisfied

4) How many facilities are provided for education of children to employees?

a) Bus Facilities144

b) School Facilities

c) Educational loan facilities

5) Are you getting wages as per basic minimum criteria allotted by Government?

a) Yes b) No c) No Suggestions

6) How much time it will take for sanctioning social benefits?

a) 1-2 week b) 2-3 week c) 3-4 week

7) Is there suitable ventilation and good environment in the work place?

a) Yes b) No c) No Suggestions

8) Do you have freedom to change your shift for your convenience?

a) Yes b) No

9) Are you satisfied with your compensation at the time of your leave?

a) Highly satisfied

b) Satisfied

c) Partly satisfied

d) Not satisfied

10) How do you feel about your facilities provided by the company?

a) Highly satisfied

b) Satisfied

c) Partly satisfied

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d) Not satisfied

11) Kindly suggest the methods of improving or adding social benefits?

a) No improvement

b) Early action should be taken

c) Proper time should be taken

12) Does welfare benefits provided by the organization plays as a

Motivational factor?

a) Highly agree

b) Agree

c) Do not agree

13) Do you get medical reimbursement on time?

a) Yes and with full reimbursement

b) Yes but with reduced reimbursement

c) No reimbursement

d) Not applicable

14) Briefly explain the procedure availing for gratuity and Provident fund in points?

a) Lengthy process

b) Not availed

c) Apply take approval and show proof.

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15) Does the company helps in your personal problem?

a) In some cases b) Often c) Not at all

16) Rate the factors below according to the satisfaction level….

Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

WORKLOADWORKING

HOURSMANAGEMENT

POLICYWORKING

ENVIRONMENTRELATIONSHIP

WITH SUPERVISORS

17) What type facilities do you except from the management to reduce absenteeism?

a) Medical facilities b) Transport facilities c) Others, please

specify____

18) Your comment and suggestion

………………………………………………………

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