A PROJECT REPORT

ON

PROVIDENT FUND CONTROL SYSTEM

AT

BALLARPUR INDUSTRIES LTD.

YAMUNA NAGAR
SUBMITTED TO:
KURUKSHETRA UNIVERSITY, KURUKSHETRA
IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

B.Com. I [COMPUTER APPLICATION]

2006-2007
UNDER GUIDENCE OF:

Mr. Sanjay Bhardwaj H.O.D. Computer Deptt.

SUBMITTED BY:

Amandeep ROLL No: -

B.Com -I [Comp. App.]

DEPT. OF COMPUTER APPLICATION

D.A.V. College For Girls Yamuna Nagar

ACKNOWLEDGEMENT

ACKNOWLEDGEMENT

It is matter of great pleasure to submit this report on coating plant system. First I was not having any idea of this project but when I asked about this project in Ballarpur Industries Ltd., they guided me in this project. I was very happy after their guidance. This was a new exposure for me.

I would like to convey my sincere thanks to Mr. Vishal Dingra, Head HRD at BILT and our teachers of Computer Department in our college for their kind co-operation and knowledge assistance in giving shape to this project. I

would belief that without their guidance the successful completion of this project was not possible.

I also want to give regards to all the employees of the department of People Development and Communication and my friends for their help during study and report preparation.

My friends provided me moral support and valuable help in completion the project report.

My

heartiest

debts

to

my

parents

for

their

encouragement and understanding which has been a timely factor in the completion of this project.

Amandeep

INDEX
Topic Certificate from College Certificate from Company Acknowledgement Preface Introduction to Organisation Introduction to Problem Area Existing System Output and Reports Conclusion Page No.

PREFACE

PREFACE

It is the widening modern world, the present system to education is facing new challenges. It is well known fact that today is the age of computer, the major achievements and science and technology. Now are days every body is realizing the importance of computers which the achievements of modern 5th generation of computers.

In modern area of science and technology, as power nation have their super computer. Although, india today among one of the progressive nation still we are lagging behind the most advanced countries in the field of science. We can overcome this problem only when the youth of India of the present generation gives its full cooperation in rising India as a powerful nation.

So realizing this fact according to time demand when computers are necessary and important achievements. I have

chosen B.Com I with computer application at my esteemed Institution D.A.V. College for Girls, Yamuna Nagar.

This degree course aims at providing the student knowledge about the various applications of computers. So it is necessary to jump in practical field. Hence, I was assigned this project which is a part of my subject.

Now I have completed my project report. It has helped in increasing my knowledge. I have to keep in the line with the out side world realize the need of quality maintenance factor.

INTRODUCTION TO ORGANISATION

INTRODUCTION TO ORGANISATION

BALLARPUR

INDUSTRIES

LIMITED,

popularly

known as BILT is efficiently managed, financially sound, and self sufficient and self made company is The Thapar Group is one of the leading business houses in India. It has a turn over of Rest 5000 crores; BILT is one of the leading companies with in the Thapar Group.

The Thapar Group has a wide range of activities like paper, engineering, electronics, textiles, chemicals, glass

telecommunications, biotechnology leather etc.

There are 54 companies and 84 plants under this group. Some of the main companies under this group are Crompton Greaves, K.C.L Bros. JCT Limited, BILT.

Ballarpur Industries Ltd. (BILT) promoted by Mr. L M Thapar, is the leader in Indian Paper Industry with an annual

production capacity of 460000 MT spread over in five manufacturing facilities produces ordinary and superior varieties of writing, printing and specialty papers etc. The company is also backwardly integrated with its Caustic soda Chlorine

manufacturing facility, which is a vital material consumed in the production process of paper.

BILT, which is originally incorporated in 1945 as Ballarpur Straw Board Mills, has changed its name in March 1946 to Ballarpur Paper and Straw Board Mills and again it was changed to the present name in October 1975. Since then the company has grown to be a leader in paper industry by continuous expansion and modernization of its capacity and plant and strategic acquisitions. In 1969 the company has merged Shree Gopal

Paper Mills with itself and the company that has acquired the Sinar Mass Pulp and Paper (India) Ltd. (Now BILT Graphic Papers Ltd. (BGPL) which has state of the art 115000 TPA paper plant and a market leader in the high end coated art paper and art paper board segment in India is planning to bring the paper unit of

BGPL into its fold and consolidating its paper operation under one umbrella.

The company which was one of the most diversified companies in the pre-liberalization era of industrial licensing with interests in Paper, Chemicals (Phosphoric Acid, STPP, Chlor, and Alkalies), Vanaspati & Edible oils and Glass has decided to focus on its core competence that is in paper and exit from its non-core business. First major steps on these lines were initiated in the year 1994-95 with hiving off the glass business. Thereafter the

company sold its vanaspati and edible oils business in 1996-97. And in 1998, the chemical division of the company with its plant at Karwar, Karnataka and which has interests in Phosphates, Chlor, Alkali and Bromine and Bromine Chemicals was spun of into a separate company i.e. Ballarpur Chemicals Ltd. (now Solaries Chem. Tech. Ltd.). To complement its Restructuring and to enable it to emerge as a stronger and more competitive organization, the company is implementing a project involving modernization and expansion of capacity at its Units in Shree Gopal, Ballarpur and

Sewa by 105000 TPA. The Project will be implemented in two phases.

In the first phase, the capacity expansion of 35000 TPA and 28000 TPA is planned over a two-year period from 2000-01 to 2002-03 for Units Sewa and Shree Gopal. In the second phase 42000 TPA of capacity is expected to come on stream at Unit Ballarpur by 2003-04. During the year 201-02, the company has completed the up gradation of Pulp Mill at Unit Sewa resulting in increasing in capacity by 37 tones from the earlier 125 tones of unbleached pulp per day. The company has also completed

installation of a 2.4 meter wide blade coater at Unit Shree Gopal in FY 2001-02 BILT entered into strategic alliance with IIansol of South Korea to provide world class blade coated paper to the Indian customer. It is the first company in the world to commercially exploit the fractionation of bamboo and has applied for the world patent for this process. It has also entered into direct retail distribution with the launch of A4 size 100-sheet pack of Royal Executive Bond.

Mr. Gautam Thapar, Managing Director of BILT, has been associated with BILT since 1986 when joined the company as Shop Floor Management Apprentice-Paper Mills and was instrumental in turning around BILT in the late 1990s.

BILT consists of Five Units: 1. 2. 3. 4. 5. Ballarpur Unit, Distt. Chandrapur, Maharashtra. Shree Gopal, Yamuna Nagar, Haryana. Ashti, Maharashtra. Bhigwan, Maharashtra Sewa, Orissa

COMPANY PROFILE

Founder - Late Lala Karam Chand Thapar (1900-1962). Consists of major industries such as paper, chemicals, glass, pulp, china clay, electronics etc.

Lala Karam Chand acquired Shree Gopal Paper Mill in 1936 as he already established himself as a coal king.

Shree Gopal Paper Mill earlier known as M/s. Panjab Pulp and Paper Company which was initially promoted by Foundation Company England, the mill was laid shut for 6 months and was ultimately auctioned.

This unit consists of: Six Paper Machines Two Coating Plants Three Finishing Houses Two Power Houses

One Caustic Soda Plant New Pulp Mill CHSR

At present Unit - Shree Gopal is producing around 250 TPD of paper. Total area - 206 acres Factory area - 155 acres Colony area - 51 acres Turnover - Rs. 24-26 Crores / month Manpower Managerial staff - 230 Permanent Workers - 1560 Casual workers - 740 Clerical - 1460

DEPARTMENTS
The departments are categorized as: Administrative Department: PDC - People development and communication. Accounts Department Material Department Sales Department Raw material Department Traffic Department Process Department

Pulp Mill

Machine House Coating Plant Soda Recovery Plant CSCP Engineering Department: Electrical Engineering Mechanical Engineering

 Civil Engineering Instrumentation Engineering Power House

TOP ORGANISATION STRUCTURE

C.G.M.

HEAD PR

SECRETARY

Head Res.& Dev

Head Paper Prod

Head Pro Chem

Head Engg

Head Medical

Head Commercial

Head Human Resources

ORGANISATION STRUCTURE
V.P. and M.D. Group II Head Chief General Manager

People Development

Commercial and Raw Material

Research

Paper Development

Engg. Production

Medical Service

SOFTWARE AND HARDWARE SPECIFICATION

SOFTWARE AND HARDWARE SPECIFICATION

There is a wide range of computers that are used in BILT - Unit Shree Gopal. This unit has well defined I.T. (Information Technology) Department to serve the purpose of providing computers and various software to various Departments of this unit. Maximum P4 Computers are used in BILT:

HARDWARE SPECIFICATIONS: It includes more than 250 computers. All the computers are installed by IBM. * * 1 ORG System 2 AS/400 Mini Computer activity as served.

VARIOUS LINE PRINTER (LIPI) Printers include Deskjet, Laser, DMP. Every computer is linked to each other by internet through windows sharing systems. Software - operating system for ORG system. - OS/ 400 for mini comp.

MOST POPULAR USED PACKAGE ARE MS Office Fox Pro Visual Basic OPTIVISION : An ERP Software is loaded on computer for various processing tasks.

INTRODUCTION TO THE PROBLEM AREA

WHAT IS PROVIDENT FUND? Provident fund account is maintained through the contribution from the employee along with the matching contribution from the employer, every month. Employees drawing the wages beyond Rs. 6500/- on the date of joining the establishment can be the member of Provident Fund.

The Rate of Contribution and payable under the three schemes are as under: Name of the Scheme Employees Provident Fund Scheme 1952 Employee's scheme 12% Employer's Share 3.67% (Amount is excess of 8.33%) i.e. 12% Employee's scheme 1995 Employee's linked Scheme 1976 Pension Deposit Insurance Nil Nil 8.33%) 8.33% (No separate recovery) 0.5%

CRITERIA TO BECOME A P F MEMBER? All the employees employed in an enterprise employees employed through contractors, daily rated, piece rated, temporary, casual. Employees drawing wages beyond Rs. 6500/- can also become a member of the fund, if the employer and employee gives a joint declaration to the Regional Provident fund commissioner. Excluded employees need not to be enrolled as PF member. An employee at the time of joining an establishment should declare his previous provident fund account number/ membership details to his present employer for communication to the commissioner. All the employees should be enrolled as a provident fund member from the date of joining the establishment/ factory.

BENEFITS TO MEMBERS
Every employee is required to pay contribution to the provident fund @ 12% / 10% of the basic wages and dearness allowance. The employer will also pay an equal amount of contribution. While contributing to employees Provident Fund, the member is eligible for Income tax rebate. The Provident fund accumulations of the member will earn compound interest, calculated on monthly running balances. The Provident Fund members can avail advances/ partial

withdrawals for housing, marriage, illness, closure of establishment etc. On retirement or an leaving service, the Provident fund accumulations can be withdrawn in full by submitting application. In case of premature death, the provident fund is payable to nominee/ family members. A members of provident fund also acquires membership under pension scheme.

BENEFIT OF PENSION SCHEME

Pension is based on age, wage and service of an employee at the time of his leaving service. The payment of pension is guaranteed and assured even in cases where the employer fails to deposits the pension contributions. Every year, the pension quantum may increase. On death of a pensioner the pension is automatically payable to the spouse (Widow/ Widower) When there is no valid nomination, the family pension is payable to dependent father followed by dependent mother. The pension can be drawn any where in India. On behalf of minor children the pension is payable to guardian. The contribution to pension fund can be made beyond the ceiling limit of Rs. 6500/- on the Joint request of the employee and the employer so as to get more benefit.

BENEFIT UNDER EMPLOYEES DEPOSIT

LINKED INSURANCE SCHEME, 1976

A member of Provident Fund is also a member of employees Deposits linked Insurance Scheme. In case of death of an employee while in service, Insurance benefit upto Rs. 60,000/- is payable to the nominee/ family members. No contribution is required to be paid by the employees for the insurance benefit. On behalf of the employee, the employer is required to pay the contribution.

EXISTING SYSTEM

Provident Fund Account is maintained through the contribution from the employee along with the matching contribution from the employer, every month.

The rate of contributions, payable under the three schemes are as under: Name of the Scheme Employees Provident Fund, Scheme 1952 Employees Provident Fund Scheme 1952 Employees Deposit linked Insurance Scheme 1976 Employee's Share 12% Nil Nil Employer's Share 3.67% 8.33 0.5%

METHOD OF CALCULATING PROVIDENT FUND CONTRIBUTION FROM THE MONTHLY SALARY IN BILT

Employees Salary : Basic Wages 4000 DA HRA City Conveyance Allowance 100 200 PF not to be deducted Total

2000

500

6900

Attracts P Federation i.e. Rs. 6000/- @ 12% = 720 Matching share payable by Employer.

720 out of this 8.33% of Wages is diverted to pension fund i.e. Rs. 500/- Balance Rs. 220/- will go to employer's share of Provident Fund.

PRACTICAL EXERCISE ON PF/EDLI CLAIM SETTLEMENT EXAMPLE: Calculate the amount of Provident Fund accumulations payable to a member of the Employee's Provident Fund Scheme, 1952 in the following case: 1) 2) 3) Date of leaving (Age 58 years) PF contribution per month Closing balance of Provident fund accumulations as on 1.4.2002: Member's share Employer's share 4) 5) 6) 7) i) Withdrawl under Para 68K of the EPF scheme 1952 in May 2002 Withdrawal under para 68B of the EPF scheme 1952 in June 2002 Date of submission claim in form 19 on Date of claim authorized on Rate of interest for the year 11000 25.7.2002 12.8.2002 9.5% p.a. 6000 20000 27000 162002 250

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

31.7.2002 i.e. upto end of the month proceeding the date of authorisation of payment ii) Interest calculation sheet on monthly Balance. (Period 1.4.2002 to 31./7.2002) Month April 2002 May 2002 June 2002 Op. Balance Contribution 500 500 Withdrawal 6000 (Both share) 47000 47500 42000

Total 168000 Less Withdrawal 17000 Total of Col 4

17000

Interest Bearing Balance : 151000 (IBB) Interest : 151000 x 19 __________ = 1195.42 or Rs. 1195/12x100x2

iii)

Calculation of Net Amount Payable: After calculating interest payable the same will be postal in the

Ledger card in the Total Column of interest. The net amount payable will be worked out as under: Year 2002-2003 Employer's Opening Bal Interest Current Contribution Total credit Withdrawls Closing balance Share 20000 750 20750 6000 11000 Employee's share 27000 750 27750 Total 47000 1195 1500 49695 17000 32695

Net amount payable Rs. 32695/- (Rs. Thirty two thousand six hundred and ninty five only) DEFAULT IN PAYMENT OF DUES BY EMPLOYER CONSEQUENCES Penal damages upto 37% per annum and interest at the rate of 12% payable on defaulted deposits. Attachment of Bank Accounts

 Realization of dues from Debtors. Attachment of movable and immovable properties. Arrest and detention. Action under section 406/409 of Indian Penal Code. Action under section 110 criminal procedure code. Prosecution under section 14 of the EPF and MP Act. 1952.

PROVIDENT FUND ADVANCES/ WITHDRAWALS IN BILT

A member of the EPF can avail the advance/ withdrawal during the period of his membership, whether in employment or not, for the following purposes: For financing insurance Policy. For Housing (purchase of site, house, flat, and construction, addition/ alteration of house and repayment of housing loans) Financial assistance on dismissal, discharge, retrenchment and closure/ lock out For illness of the member/ family member. For marriage and post matriculation education. To meet the loss of property due to natural calamity. Loss in wages due to power cut. Purchase of equipment for physically handicapped. To withdraw the provident fund one year before retirement.

HOW TO WITHDRAW PROFIDENT FUND AND OTHER BENEFIT IN BILT

On Leaving an Employment: A member of EPF on his leaving employment on resignation etc, if he is not securing any employment in a PF covered establishment, may claim his PF accumulations by himself. For this purpose the member is required to submit the prescribed application in Form 19. This form is required to be submitted to the regional Provident Fund commissioner after completion of 2 months from the date of leaving service. In case, the member secures another employment before submitting his application the account is required to be transferred. In the following cases a member may submit the application immediately, without waiting for a period of 2 months. 1) 2) On retirement from service after attaining the age of 55 years. On retirement on account of total and permanent in capacity due to bodily or mental infirmity. 3) Migration from India for permanent settlement abroad, or for taking employment abroad. 4) 5) 6) Individual/ Mass retrenchment Termination of service on V.R.S. A female member who left the service on account of her marriage.

ON DEATH OF A MEMBER: On death of a member, the Provident Fund amount is payable immediately to the nominee/s. If there is no valid nomination the Provident Fund amount is payable equally to all the eligible members of his family. If both nominee and 'family' members are not applicable the legal heir is eligible to claim the Provident Fund dues of the deceased members.

WHO CAN CLAIM THE BENEFITS UNDER THE EMPLOYEES PENSION SCHEME 1995?
A provident fund member who is eligible to withdraw his employees Provident Fund dues can therefore avail the benefit due under the pension scheme also. It is not necessary to avail the pension benefit alongwith Provident Fund. A member who had attained the age of 58 years can avail the benefit under the pension scheme. A member of the pension scheme is eligible for the following benefits: Withdrawal benefit Scheme certificate Monthly pension

On the death of an employee while in service, the family (spouse and children) is eligible to receive monthly family pension i.e. for the widow/ widower and also to children below 25 years.

CLAIMING WITHDRAWAL BENEFITS

A member who is eligible to draw the withdrawal benefit is required to submit the application in form IOC, through the employer. In case a member who has not rendered 10 years service, he is eligible to avail the withdrawal benefit or he may avail the scheme certificate, at his option.

Claiming of Scheme Certificate: A member who is required to avail the scheme certificate compulsorily and the option for scheme certificate should be specifically mentioned in the application form. In case of death of the member, the family can surrender the scheme certificate and avail the family pension as admissible under the scheme.

CLAIMING OF PENSION
A member can claim pension through the application in Form IOD in the following cases. On total and permanent in capacity (100% disablement) (without any restriction of ser ice period) On attaining the age of 58 years with eligible service of 10 years. After rendering 10 years service and on leaving the service between 50-57 years (Reduced Pension can be opted) In case of death of a member while in service or away from service, the family (Dependent parents are eligible for family pension) The Form IOD should be forwarded only through the employer (except in the case of closed establishment) alongwith the documents mentioned. The age of the children should be supported by the school certificate or any valid document. To claim the family pension, the widow/ widower may submit only one application on his/ her behalf and on behalf of two children.

TRANSFER OF PROFIDENT FUND ACCOUNT

A Provident Fund Member, on leaving an establishment and joining another establishment, can seek transfer of his Provident fund balances to his new provident fund account opened in the transferee establishment. This application should be submitted through the present employer to the Regional Provident Fund Commissioner concerned for effecting the transfer. The regional provident fund commissioner is required to effect the transfer with in 30 days. A copy of the transfer certificate will be sent to the member concerned. The member should also ensure that the amount transferred to his present account number is included in the provident fund annual statement of account of the year in which transfer was effected.

Any delay in transfer of Provident Fund Accounts should be brought to the notice of the Regional Provident Fund commissioner concerned.

NOMINEE FOR PROVIDENT FUND

A member having a family viz. Husband/ Wife, children and dependent parents is required to nominate one or more persons belonging to his family only. If the member has no family member, he can nominate any person /s; but if the member acquires a family such nomination is deemed as invalid. The member should make a fresh nomination.

NOMINEE FOR PENSION: In case of nomination for pension it may be noted that the family pension is automatically payable to the family i.e. widow or widower along with two children (below 25 years). As such as long as the family member service as on the date of death of the member the pension is payable to them only and the nomination will have no effect. The

dependent parents will be eligible for pension only where there is no eligible family member or nominee.

SUPPLY OF ANNUAL PROVIDENT FUND STATEMENT OF ACCOUNTS

The Regional Provident Fund Commissioner shall send the individual members EPF Annual Statement of Accounts slips pertaining to every financial year to the employer before 30th of September of the following year for delivery to every EPF member of the establishment.

The employer shall distribute the same to the respective members, get acknowledgements for the same from each member and keep the acknowledgement with him, duly intimating the position to the Regional provident fund commissioner.

Members should satisfy themselves to correctness of the details indicated inform 23 slips and any error should be brought to the notice of the commissioner through the employer with in 6months of the receipt of the statement.

The Provident Fund Annual statement of account will reflect only the EPF contributions recovered at the rate of 12% or 10% of wages under

employee's share in full and 3.67%/ 1.67% of wages under the employer's share (i.e. 12% - 8.33% diverted to pension fund)

Whenever the employer has failed to deposit the employees Provident Fund dues, the same will not be included in the statement of Account.

MODE OF PAYMENT OF BENEFIT

The benefits payable to the EPF members towards Advances / withdrawals final payments are normally paid through savings bank account in a Bank / Post office.

Payment by money order will be made where the amount due for payment is only upto Rs. 2000/-. Beyond this the payment will be made by cheque and sent direct to the bank in which the members account is kept. If payment is upto Rs. 500 than payment will be made by money order,

PAYMENT OF PENSION:
The monthly pension is payable through the designated bank selected for this purpose. Region-wise Name of the Disbursement Agencies S.N. 1. Name of the Region Name of the Designated Delhi Bank Punjab National Bank State Bank of India Bank of India HDFC ICICI 2. Haryana UTI Punjab National Bank State Bank of India HDFC ICICI 3. Himachal Pradesh UTI Punjab National Bank State Bank of India HDFC ICICI 4. Punjab UTI Punjab National Bank State Bank of India HDFC ICICI UTI Post Office Post Office Post Office Post Office Post Office

5.

Uttar Pradesh

Punjab National Bank State Bank of India HDFC ICICI UTI Punjab National Bank State Bank of India HDFC

Post Office

6.

Uttranchal

Post Office

In addition to the Nationalized Banks mentioned above, the Head Post Office is also disbursing the pension. The scheduled banks such as HDFC, UTI, ICICI banks are also included as the disbursing agency for payment of pension. The pensioners may opt. anyone of the disbursing bank for drawal of monthly pension regularly.

CONCLUSION

CONCLUSION

I studied the running system of Ballarpur Industries at Yamuna Nagar during the training of my project (Provident Fund Control System).

The Process of Provident Fund Control System is totally attach by computer all the process and information are stored in computer. So computer system is more faster than manual system. Due to large memory of computer large number of record can be stored and analysed.

ADVANTAGES OF COMPUTERIZATION SYSTEM

ADVANTAGES OF COMPUTERIZED SYSTEM

1.

The major advantage is the speed. Computer can perform number of operations and calculations with in a few seconds.

2.

Computer can hold large amount of Data so no problem of Data storage with the help of powerfull storage media like floppy disk.

3.

Computer can perform all the jobs related to calculations and operations efficiently and accurately.

4. 5.

In computerized system a lot of manual work and time is saved. In computerized system, at one glance we can see all the records in reports.

6. 7.

Chances of duplicacy are minimum in case of computerized system. Multiple copies can be generated, which saves time.