Viru project

“A study on employee’s wages and compensation” in Kissan Mouldings Ltd., in Tumkur

Department of PG Studies in Commerce, SSCASC, Tumkur. 1

CHAPTER 1

INTRODUCTION

Human resource is the most vital resource of an organization as it handles all the physical

resources therein and takes the responsibility of decision making, work done and

achievement of results etc. So, to carry on these heavy responsibilities, employees should

be motivated by providing the best remuneration and compensation package as per the

industry standards. Lucrative compensation is a means of attracting and retaining the best

talents in an organization.

A wage is the remuneration paid for the service of labour in periodically to an employee

or worker. So payment made to labour is generally referred to as wages. Wages also refer

to the hourly rate paid to such groups as production and maintenance. Salary normally

refers to the periodically rates paid to clerical, Administrative and professional

employees. So money paid periodically to person whose output cannot be measured is

generally referred as salary.

Wage and salary are paid as per contract of employment. Wages include basic wage or

salary allowances. Allowances are paid in addition to basic wage to maintain the value of

basic wage over a period of time. In India, different acts include different item under

wages. Though all the lets includes basic wages and dearness allowance under the item

wages example under the Workmen’s Compensation Act, 1923, Section 2(m) wages for

leave period, holiday, overtime pay, bonus form part of wages and under the payment of

wages act, 1936 section 2(vi) any reward of settlement and production bonus, if paid

constitutes wages.

Wage and salary administration is establishment and implementation of sound policies

and practices of employee compensations. Wage polices of different organizations very



somewhat. Some organizations pay minimum necessary to attract the required number

and kind of labor, while some organizations pay well above the going rates in the labor

market. Various factors influence wage and salary structure and administration like

government legislation and public policy, organization ability to pay, labor supply and

demand, going wages and salaries, cost of living, productivity, trade union’s bargaining

power, job requirement, management attitude about wage to be paid etc.

Compensation is an integrality of human resource management. It is the remuneration

received by an employee in return to his or her contribution for the organization. A good

compensation system evolves a balanced work-employee relationship by providing

monetary and non-monetary benefits to the employees. In this way, it acts as a motivating

factor to the employees and increases the organizational effectiveness.

Today’s compensation systems have evolved over a long time. Worker’s needs and

compensation systems have been changing along with the changes in organizational

structures. This results in a participative organization from the bureaucratic one, where

the employees have started asking for their rights and appropriate compensations. Higher

education standards and higher the skills required for the jobs, have forced the

organizations to provide the competitive compensations to their employees.

Compensation strategy is derived from the business strategy and hence the human

resource strategies are aligned with the business goals and objectives of an organization.

Then the compensation committee or the concerned authority formulates the

compensation strategy considering both the internal and external factors as well as the

life cycle of an organization.



Concept of Wages

‘Wage and Salary Administration’ refers to the establishment and implementation of

sound policies and practices of employee compensation. The basic purpose of wage and

salary administration is to establish and maintain an equitable wage and salary structure.

Wages and salaries are often one of the largest components of cost of production and

such have serious implications for growth and profitability of the company. On the other

hand, they are the only source of workers’ income.

After the independence and particularly after 1948, some new terms relating to wages

began to be used.

These are: -

1. Statutory Minimum Wages

2. Basic Minimum Wages

3. Minimum Wages

4. Fair Wages

5. Living Wages

6. Need Based Wages

1. Statutory Minimum Wages

By it we mean the minimum amount of wages which should essentially be given to the

workers as per provisions of the Minimum Wages Act, 1948.

2. Basic Minimum Wages

This minimum wage is fixed through judicial pronouncement, awards, industrial tribunals

and labor. The employers are essentially to give this minimum wage to the workers.



3. Minimum Wages

The concept of minimum wages has developed due to different standards in different

countries. In Indian context, minimum wage means the minimum amount which an

employer thinks necessary for the sustenance of life and preservation of the efficiency of

the worker. According to Fair Wage Committee, the minimum wages must also provide

for some measures of education-medical requirements and amenities.

4. Fair Wages

In order to bring about improved relations between labor and management an effort has

been made in modern times that the labor gets a fair deal at the hands of owners and

managers of industries. Various proposals were undertaken at the Industries Conference

in 1947 and a resolution known as the Industrial Truce Resolution was passed. It is

provided for the payment of fair wages to labor. The government of India appointed a

Fair Wages Committee in 1948 to determine the principles on which fair wages should be

based and to suggest the lines on which those principles should be applied. According to

the report on this Committee, Fair Wages is that wages which the labourer gets for his

work just near to minimum wages and living wages. Generally, the current rates of wages

being paid in the enterprise are known as fair wages.

5. Living Wages

According to Fair Wage Committee Report, “The living wage should enable the male

earner to provide for himself and his family not merely the bare essentials of food,

clothing and shelter, but also a measure of frugal comfort including education for

children, protection against ill health, requirements of essential social needs and a

measure of insurance against the more important misfortunes including old age.”

According to the Committee on Fair Wages, the living wages represent the highest level

of the wages and include all amenities which a citizen living in a modern civilized society

is to expect when the economy of the country is sufficiently advanced and the employer



is able to meet the expanding aspirations of his workers. The Living Wage should be

fixed keeping in view the National Income and the capacity of the industry to pay.

6. Need Based Wages

The Indian Labor Conference at its 15th session held at New Delhi in July 1957 suggested

that minimum wage fixation should be need based.

Following are the important points of the Resolution of the Conference: -

a) The standard working class family should include three consumption units for the

one earner.

b) Calculation of minimum food requirements should be made on the basis of the

recommendation of Dr. Aykoroyed i.e. 27000 calories for an average Indian adult.

c) Calculation of cloth should be made @ 18 yards annually for one member. As

such, a family consisting of four members will require 72 yards of cloth.

d) The workers should get minimum rent as per guidelines fixed by the government

in the industrial housing policy.

e) Expenses for fuel, light and so on should be equal to 20% of the entire minimum

wages.

Theories of Wages

1. Subsistence Theory

This theory was propounded by David Richardo. Richardo states that “The laborers are

paid to enable them to subsist and perpetuate the race without increase or diminution.”

This theory is also known as “Iron Law of Wages”. According to this theory, if the wages

fall below the subsistence level, the number of workers would decrease as many of them

would die of hunger, disease, malnutrition etc. This would make the wage rates go up as

labor will become scarce. However, if the workers are paid more than the subsistence



wages, they would marry and procreate. This would increase their number and bring

down the rate of wages.

2. Wage Fund Theory

This was propounded by Adam Smith. He assumed that wealthy persons have funds of

surplus wealth, as a result of their savings wages are paid out of these funds. This fund

could be utilized for employing laborers for work. If the fund was large, wages would be

high if it was small, wages would be low, just enough for the subsistence. Thus, the size

of the fund determined the demand for labor and the wages that could be paid.

3. Residual Claimant Theory

This theory was propounded by Francis. A. Walker. According to Walker, there are four

factors of production namely land, labor, capital and organization. Wages represent the

amount of value created in the production which remains after payment of the other three

factors of production namely land, capital and organization.

4. Surplus Value Theory of Money

This theory was propounded by Karl Marx. According to Marx, labor was to be treated as

an article of commerce, which could be purchased on payment of subsistence price. The

price of any product was determined by the labor time needed for producing it. The

laborers were not paid in proportion to the time spent on job, but much less. The surplus,

thus created, was utilized for paying other expenses.

5. Marginal Productivity Theory

This theory was propounded by Wick Steed and Clark. According to this theory wages

depend upon the demand for and supply of labor. Wages are based upon the

entrepreneur’s estimate of the value that will probably be produced by the last or

marginal worker. Workers are paid only what they are economically worth. As long as



additional worker contributes more to the total value than the cost in wages, it pays the

employer to continue hiring. The result is that the employer has a larger share in profits

as he doesn’t have to pay to non-marginal workers.

6. Bargaining Theory of Wages

This theory was propounded by John Davidson. According to him, wages are determined

by the relative bargaining power of workers or trade unions and of employers. When a

trade union is involved, monetary benefits, incentives, job differentials etc. tend to be

determined by the relative strength of the organization and the trade union.

Wage Determination Process

Wage determination is a complex process.

However, wage determination process consists of the following steps; -

1. Job Analysis

Job analysis describes the duties, responsibilities, working conditions and inter-

relationships between the job as it is and the other jobs with which it is associated. It

attempts to record and analyze details concerning the training, skills, required efforts,

qualifications, abilities, experience and responsibilities expected of an employee. After

determining the job specifications, the actual process of grading, rating or evaluating the

job occurs. A job is rated in order to determine its value relative to all the other jobs in

the organization which are subject to evaluation. The next step is that of providing the job

with a price. This involves converting the relative job values into specific monetary

values or translating the job classes into rate ranges.

2. Wage Survey

In determining the wages for a specific job it is very necessary to work as to what wages

are being given for the same job in other enterprises. If, on the basis of utility, the wages

for a specific job are determined below the wages for the same job on other enterprises.



Following will be its disadvantages : -

1. Good persons and persons of merit will not be available.

2. If such people are at all obtained for employment, they will shift to another

enterprise after some time.

It is, therefore, necessary to keep in mind the following in wage-survey: -

i) Term of survey (weekly or monthly)

ii) The whole wage-payment-knowledge of daily working hours or monthly

payment.

iii) Definition of jobs.

iv) Appropriate questionnaire for collecting information.

v) Scientific technique of collecting the data.

3. Group Similar Jobs into Pay Grades

After the results of job analysis and salary surveys have been received, the committee can

turn to the task of assigning pay rates to each job, but it will usually want to first group

jobs into pay grades. A pay grade is comprises the jobs of approximately equal difficulty

or importance as determined by job evaluation. Pay grading is essential for pay purposes

because instead of having to deal with hundreds of pay rates, the committee might only

have to focus on a few.

4. Price Each Pay Grade

The next step is to assign pay rates to pay grades. Assigning pay rates to each pay grade

is usually accomplished with a wage curve. The wage curve depicts graphically the pay

rates currently being paid for jobs in each pay grade, relative to the points or ranking

assigned to each job or grade by the job evaluation.

The purpose of wage curve is to show the relationship between: -

(i) The value of the job as determined by one of the job evaluation methods and

(ii) The current average pay rates for the grades.



5. Fine-Tune Pay Rates

Fine tuning involves correcting out of line rates and developing rate ranges: -

(i) Correcting out of Line Rates

The average current pay for a job may be too high or too low, relative to other jobs in the

firm. If a rate falls well below the line, a pay rise for that job may be required. If the rate

falls well above the wage line, pay cuts or a pay freeze may be required.

(ii) Developing Rate Ranges

Most employers do not pay just one rate for all jobs in a particular pay grade. Instead,

they develop rate ranges for each grade so that there might be different levels and

corresponding pay rates within each pay grade. The rate is usually built around the wage

line or curve. One alternative is to arbitrarily decide on a maximum and minimum rate for

each grade. As an alternative, some employers allow the rate for each grade to become

wider for the higher pay ranges reflecting the greater demands and performance

variability inherent in these more complex jobs.

6. Wage Administration Rules

The development of rules of wage administration has to be done in the next step. It is

considered advisable in the interests of the concern and the employees that the

information about average salaries and ranges in the salaries of group should be made

known to the employees concerned; for secrecy in this matter may create dissatisfaction

and it may also vitiate the potential motivating effects of disclosure. Finally, the

employee is appraised and the wage is fixed for the grade he is found fit.



Wage Payment Procedure

Normally wages are always to be paid in cash. However there may be a system of paying

a worker in kind as well as in cash. Moreover as per the Act of wage payment, the salary

of a person has to be paid either daily, weekly, fortnightly or monthly. Besides there

should be proper records of payment of wages and no deduction except what is

permissible is to be allowed against payment of wages.

Types of Wages

Determination of reasonable wages is a difficult task for the management and so they

should give adequate attention to this area.

However, different types of wage payment can be divided into three parts: -

1. Time Wage

2. Piece Wage

3. Wage Incentive Plan

1. Time Wage

In this type the worker is given remuneration according to time. This type of

remuneration may be per hour, per day or per month or per year. There exists no

relationship between the quantum of work and the wage. This type is in operation in all

industries in India. This plan is very simple to understand. The worker works after due

thinking and with convenience. However it encourages the tendency of prolonging or

delaying the work unnecessarily. Moreover, it is very difficult to measure the

productivity of the workers under this type of plan.

2. Piece Rate System

In this type of plan, a worker gets remuneration according to his output irrespective of the

time he takes in finishing his job. Here, the payment of remuneration is related to work

and not to time. Under this type, the workers are encouraged to earn more and more. The



more the output is, the more the remuneration is. The workers are also at liberty for their

job with interest and they need not be supervised. However, this type of wage payment is

not suitable for commodities of artistic taste. Moreover, the quality of goods goes down.

3. Wage Incentive Plan

This type of wage payment is the combination of two types the above referred. Efforts

have been made here to obtain the advantages of both these types while avoiding their

disadvantages.

This includes: -

a) Halsey Premium Scheme

Under this scheme if a worker gives an output more than the fixed standard job, he is

given about 33% to 50% of the remuneration for that job as bonus. Here a standard of

output is fixed and a standard of time is also fixed for the completion of that job

beforehand. If the job of fixed standard is completed with the standard time fixed for the

purpose, the worker gets his fixed wages. But, if he completes the job before the fixed

standard time and thereby, saves some time, he gets a fixed percentage of his wages for

the time so saved as bonus.

b) Rowan Premium Scheme

This plan is an improvement upon Halsey Plan. Under this plan, premium is that

proportion of the wages for the time taken which the time saved bears to the standard

time. The credit of this incentive premium method goes to Rowan of Scotland. The

worker is paid wages at normal rates for the duration he has worked and is paid extra

money in the form of premium on the basis of the time he has saved. Under this scheme,

the standard work and the standard time both are fixed. The wages for the time saved will

increase in the same percentage that is equal to the proportion the time saved bears to



standard time. The premium for the time saved cannot be more than the total standard

wages. Thus, a worker cannot get cleverly wages more than needed.

c) Taylor’s Plan

Taylor plan is based on wages per unit. In other words, a worker is paid wages in

accordance with his output. Higher price rate is fixed for the workers who give

production over and above the standard workload fixed. The lower rate is fixed for the

workers who give production below the standard workload fixed.

d) Merrick Plan

This plan is somewhat a modified form of Taylor’s plan. This plan offers three grade

piece rates than the two offered in the Taylor’s plan.

I. First limit is for new workers and is very low.

II. Second limit is for workers with average efficiency.

III. Third limit is for very efficient workers.

e) Gantt Plan

This is also a modified form of Taylor plan. In it, wages are fixed on the basis of time. On

the other hand, the efficient workers are given wages per unit. Thus, the workers who

give more output get their wages at enhanced rates.

f) Emerson Plan

This plan is a combination of Taylor, Merrick and Gantt plans. However, a slight

modification in these plans has been made and different rates of bonus have been fixed

under this plan. The amount of bonus increases with the increase in efficiency.

These percentages are as under: -

1% bonus on 67.5 efficiency.

10% bonus on 90% efficiency.



20% bonus on 100% efficiency.

20% + 30% extra on bonus on efficiency more than 100%.

g) Profit-Sharing Scheme

Under this scheme, workers are given a certain percentage of profits as bonus. But it

suffers from one defect. Suppose, there is no profit in a particular year. Workers will also

not be given the bonus for that very year. The workers think that they have been deceived

by the employers and therefore, clash with them on this very issue. This assumes the

form of worker-management unrest and has its bad effect on the production. This scheme

is undoubtedly a new and better scheme. But, the trade unions misuse the scheme.

h) Scalan Plan

Under this scheme, the workers are paid bonus equal to the percentage of profits earned

more than the profits earned last year by the organization. 15% of the bonus is deducted

and this deduction is deposited in the fund which is distributed among the workers in the

year to come.

Wage Differentials

Wage differentials mean differences or disparities in wages. Wages differ in different

employments or occupations, industries and localities and also between persons in the

same employment or grade. One therefore comes across such terms as occupational wage

differentials, inter-industry, inter-firm, inter-area or geographical differentials and

personal differentials.

In other words, wage differentials may be as follows: -

i) Occupational Differentials

The reasons for occupational wage differentials can be varying requirements of skill,

knowledge, demand supply situation, degree of responsibilities etc. In countries adopting



a course of planned economic development, skill differentials play an important role in

manpower and employment programmers, for they considerably help in bringing about

an adequate supply of labor with skills corresponding to the requirements of product

plans.

ii) Inter-firm Differentials

Inter-firm differentials reflect the relative wage levels of workers in different plants in the

same area and occupation. Differences in technological advancement, managerial

efficiency, financial capability, age and size of them, relative advantages and

disadvantages of supply of raw materials, power and availability of transport facilities -

those are also accounted for considerable disparities in inter-firm wage rates. Lack of co-

ordination among adjudication authorities too, is responsible for such anomalies.

iii) Inter-area or Regional Differentials

Such differentials arise when workers in the same industry and the same occupational

group, but living in different geographical areas, are paid different wages. Regional wage

differentials may be conceived in two senses. In the first sense, they are merely a part of

inter-industry differentials in a particular region. In the second sense, they may represent

real geographical differentials, resulting in the payment of different rates for the same

type of work. In both cases, regional differentials affect the supply of manpower for

various plants in different regions.

iv) Inter-industry Differentials

These differentials arise when workers in the same occupation and the same area but in

different industries are paid different wages. Inter-industry differentials reflect skill

differentials. The industries paying higher wages have mostly been industries with a large

number of skilled workers, while those paying less have been industries with a large

proportion of unskilled and semi-skilled workers. Other factors influencing inter-industry



differentials are the extent of unionization, the structure of product markets, the ability to

pay, labour-capital ratio and the stage of development of an industry.

v) Inter-Personal Wage Differentials

These differentials are between workers in the same plant and the same occupation.

These may be due to differentials in sex, skills, age, knowledge or experience.

Compensation is the remuneration which an employee receives in return for his/her

contribution to the organization.

Employee compensation reefers to all forms of pay or rewards going to employees and

arising from their employments and have two main components.

1. Direct financial payments (in the form of wages, salaries, incentives, commissions

and bonuses) and

2. Indirect payments (in the form of non-financial benefits like employer paid

insurance and vacations)

Compensation may be defined as “money received in performance of work plus many

kinds of services and benefits that organization provides to their employees. Money is

included under direct compensation (popularly known as wages i.e. gross pay) which

benefits comes under indirect compensation and may consists of life accident and health

insurance, the employer’s contribution to retirement, pay for vacations or illness and

employer’s required payments for employee welfare as social security.

Compensation may be defined as “all forms of financial returns, tangible services and

benefits that employees receive as part of their employment relationship”.



IMPORTANCE OF COMPENSATION MANAGEMENT

Compensation and Reward system plays vital role in a business organization. Since,

among four Ms. i.e. Men, Material, Machine and Money. Men have been most important

factor, it is impossible to imagine a business process without Men. Every factor

contributes to the process of production/business. It expects return from the business

process such as rent is the return expected by the landlord, capitalist expects interest and

organizer i.e. entrepreneur expects profits. Similarly the labor expects wages from the

process.

Labor plays vital role in bringing about the process of production/business in motion. The

other factors being human, has expectations, emotions, ambitions and egos. Labour

therefore expects to have fair share in the business/production process. Therefore a fair

compensation system is a must for every business organization.

The fair compensation system will help in the following: -

An ideal compensation system will have positive impact on the efficiency and

results produced by employees. It will encourage the employees to perform better

and achieve the standards fixed.

It will enhance the process of job evaluation. It will also help in setting up an

ideal job evaluation and the set standards would be more realistic and achievable.

Such a system should be well defined and uniform. It will be apply to all the

levels of the organization as a general system.

The system should be simple and flexible so that every employee would be able to

compute his own compensation receivable.

It should be easy to implement, should not result in exploitation of workers.

It will raise the morale, efficiency and cooperation among the workers. It, being

just and fair would provide satisfaction to the workers.

Such system would help management in complying with the various labor acts.



Such system should also solve disputes between the employee union and

management.

The system should follow the management principle of equal pay.

It should motivate and encouragement those who perform better and should

provide opportunities for those who wish to excel.

Sound Compensation/Reward System brings peace in the relationship of

employer and employees.

It aims at creating a healthy competition among them and encourages employees

to work hard and efficiently.

The system provides growth and advancement opportunities to the deserving

employees.

The perfect compensation system provides platform for happy and satisfied

workforce. This minimizes the labor turnover. The organization enjoys the

stability.

The organization is able to retain the best talent by providing them adequate

compensation thereby stopping them from switching over to another job.

The business organization can think of expansion and growth if it has the support

of skillful, talented and happy workforce.

The sound compensation system is hallmark of organization’s success and

prosperity. The success and stability of organization is measured with pay-

package it provides to its employees.

Types of Compensation

A compensation package constitutes all the rewards and allowances provided to the

employees including their salary (only a part of the compensation system) in return of

their contribution to the organization. However, these benefits are provided in the form of

either monetary or non-monetary value to the employees.



Thus, it is seen that there are two types of compensation provided to the employees in the

organization and these are: -

[i] Direct compensation

[ii] Indirect compensation

Direct Compensation

Direct compensation refers to monetary benefits offered and provided to employees in

return of the services they provide to the organization. The monetary benefits include

basic salary, house rent allowance, conveyance, leave travel allowance, medical

reimbursements, special allowances, bonus, PF/Gratuity etc. They are given at a regular

interval at a definite time.

House Rent Allowance

Some organizations have the provision of quarters to accommodate their employees,

while the others offer housing rent allowances to them. This provides social security to

the employees and builds up a sense of co-operation among them.

Basic Salary

Salary is the amount received by the employee in lieu of the work done by him/her for a

certain period say a day, a week, a month etc. It is the money an employee receives from

his/her employer by rendering his/her services. Organizations either provide

accommodations to its employees who are from different state or country or they provide

house rent allowances to its employees. This is done to provide them social security and

motivate them to work.

Conveyance

Organizations provide for cab facilities to their employees. Few organizations also

provide vehicles and petrol allowances to their employees to motivate them.



Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The

employees are given allowances to visit any place they wish with their families. The

allowances are scaled as per the position of employee in the organization.

Direct Compensation

MedicalReimbursements

Special Allowances

Bonus

Leave Travel AllowancesConveyance

House Rent Allowances

Basic Salary



Medical Reimbursement

Organizations also look after the health conditions of their employees. The employees are

provided with medi-claims for them and their family members. These medi-claims

include health-insurances and treatment bills reimbursements.

Bonus

Bonus is paid to the employees during festive seasons to motivate them and provide them

the social security. The bonus amount usually amounts to one month’s salary of the

employees.

Special Allowance

Special allowance such as overtime, mobile allowances, meals, commissions, travel

expenses, reduced interest loans; insurance, club memberships etc are provided to

employees to provide them social security and motivate them which improve the

organizational productivity.

Indirect Compensation

Indirect compensation refers to non-monetary benefits offered and provided to employees

in lieu of the services provided by them to the organization. They include Leave Policy,

Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits,

Retirement Benefits, Holiday Homes.

Leave Policy

It is the right of employee to get adequate number of leave while working with the

organization. The organizations provide for paid leaves such as, casual leaves, medical

leaves (sick leave) and maternity leaves, statutory pay etc.



Overtime Policy

Employees should be provided with the adequate allowances and facilities during their

overtime, if they happened to do so, such as transport facilities, overtime pay etc.

Hospitalization

The employees should be provided allowances to get their regular check-ups, say at an

interval of one year. Even their dependents should be eligible for the medi-claims that

provide them emotional and social security.



Insurance

Organizations also provide for accidental insurance and life insurance for employees.

This gives them the emotional security and they feel themselves valued in the

organization.

Indirect Compensation

Overtime Policy

Hospitalization

Insurance

Leave Travel

Retirement Benefits

Holiday Homes

Flexible Timings

Leave Policy



Leave Travel

The employees are provided with leaves and travel allowances to go for holiday with

their families. Some organizations arrange for a tour for the employees of the

organization. This is usually done to make the employees stress free.

Evolution of Strategic Compensation

Today’s compensation systems have come from a long way. With the changing

organizational structures workers’ need and compensation systems have also been

changing. From the bureaucratic organizations to the participative organizations,

employees have started asking for their rights and appropriate compensations. The higher

education derived from the business strategy. The business goals and objectives are

aligned with the HR strategies. Then the compensation committee or the concerned

authority formulates the compensation strategy. It depends on both internal and external

factors as well as the life cycle of an organization standard and higher skills required for

the jobs have made the organizations provide competitive compensations to their

employees.

Compensation strategy is

Traditional Compensation Systems

In the traditional organizational structures, employees were expected to work hard and

obey the bosses’ orders. In return they were provided with job security, salary increments

and promotions annually. The salary was determined on the basis of the job work and the

years of experience the employee is holding. Some of the organizations provided for

Modern

Compensation Systems

Traditional Compensation

Systems

Change in Compensation Systems



retirement benefits such as pension plans, for the employees. It was assumed that humans

work for money, there was no space for other psychological and social needs of workers.

Change in Compensation Systems

With the behavioral science theories and evolution of labor and trade unions, employees

started asking for their rights. Maslow brought in the need hierarchy for the rights of the

employees. He stated that employees do not work only for money but there are other

needs too which they want to satisfy from their job i.e., social needs, psychological

needs, safety needs, self-actualization etc. Now the employees were being treated as

human resource.

Their performance was being measured and appraised based on the organizational and

individual performance. Competition among employees existed. Employees were

expected to work hard to have the job security. The compensation system was designed

on the basis of job work and related proficiency of the employee.

Self-Actualization

Esteem

Social Needs

Safety Needs

Psychological Needs



Maslow’s Need Hierarchy

Today’s Modern Compensation Systems

Today the compensation systems are designed aligned to the business goals and

strategies. The employees are expected to work and take their own decisions. Authority is

being delegated. Employees feel secured and valued in the organization. Organizations

offer monetary and non-monetary benefits to attract and retain the best talents in the

competitive environment. Some of the benefits are special allowances like mobile,

company’s vehicle; House rent allowances; statutory leaves etc.

COMPONENTS OF COMPENSATION

Basic Wages/Salaries

These refer to the cash component of the wage structure based on which other elements

of compensation may be structured. It is normally a fixed amount which is subject to

changes based on annual increments or subject to periodical pay hikes. It is structured

based on the position of an individual in the organization and differs from grades to

grades.

Dearness allowance

The payment of dearness allowance facilitates employees and workers to face the price

increase or inflation of prices of goods and services consumed by him. The onslaught of

price increase has a major bearing on the living conditions of the labor. The increasing

prices reduce the compensation to nothing and the money’s worth is coming down based

on the level of inflation.

The payment of dearness allowance, which may be a fixed percentage on the basic wage,

enables the employees to face the increasing prices.



Bonus

The bonus can be paid in different ways. It can be fixed percentage on the basic wage

paid annually or in proportion to the profitability. The Government also prescribes a

minimum statutory bonus for all employees and workers.

There is also a bonus plan which compensates the managers and employees based on the

sales revenue or profit margin achieved. Bonus plans can also be based on piece wages

but depends upon the productivity of labor.

Commissions

Commission to Managers and employees may be based on the sales revenue or profits of

the company. It is always a fixed percentage on the target achieved. For taxation

purposes, commission is again a taxable component of compensation.

The payment of commission as a component of commission is practiced heavily on target

based sales. Depending upon the targets achieved, companies may pay a commission on a

monthly or periodical basis.

Mixed Plans

Companies may also pay employees and others a combination of pay as well as

commissions. This plan is called combination or mixed plan. Apart from the salaries paid,

the employees may be eligible for a fixed percentage of commission upon achievement of

fixed target of sales or profits or performance objectives.

Nowadays, most of the corporate sector is following this practice. This is also termed as

variable component of compensation.



Piece Rate Wages

Piece rate wages are prevalent in the manufacturing wages. The laborers are paid wages

for each of the quantity produced by them. The gross earnings of the labor would be

equivalent to number of goods produced by them.

Piece rate wages improves productivity and is an absolute measurement of productivity to

wage structure. The fairness of compensation is totally based on the productivity and not

by other qualitative factors.

The GANTT productivity planning and Taylor’s plan of wages are examples of piece rate

wages and the related consequences.

Sign on Bonuses

The latest trend in the compensation planning is the lump sum bonus for the incoming

employee. A person, who accepts the offer, is paid a lump sum as a bonus.

Even though this practice is not prevalent in most of the industries, equity research and

investment banking companies are paying this to attract the scarce talent.

Profit Sharing Payments

Profit sharing is again a novel concept nowadays. This can be paid through payment of

cash or through ESOPS. The structuring of wages may be done in such a way that, it

attracts competitiveness and improved productivity.

Profit sharing can also be in the form of deferred compensation at the time of retirement.

At the time of retirement the employees may be paid a lump sum or retrial benefits.

Fringe Benefits

The provision of fringe benefits does not attract any explanation. These includes: -

a) Company cars

b) Paid vacations



c) Membership of social/cultural clubs

d) Entertainment tickets/allowances

e) Discounted travel tickets

f) Family vacation packages

Reimbursements

Employees, depending upon their gradations in the organization may get reimbursements

based on the expenses incurred and substantiated. Certain expenses are also paid based on

expenses incurred during the course of business.

In many cases, employers provide advances to the employees for incurring certain

expenses that are incurred during the course of the business.

Some examples are: -

a) Travel expenses.

b) Entertainment expenses

c) Out of pocket expenses

d) Refreshments expenses during office routine outside office premises

Sickness Benefits/Pregnancy

The increasing social consciousness of corporate had resulted in the payment of sickness

benefit to the employees of companies. This also includes payments during pregnancy of

women employees.

The expenses incurred due to injury or illness are compensated or reimbursed to the

employees. In certain companies, the death of an employee is compensated financially.

Companies are also providing supporting financial benefits to the family of the bereaved

employees. However, companies covering these costs through appropriate insurance

policies like Medical and Life Insurance.

Incentives

In today’s strategic compensation systems, incentives forms an integral part of the

performance based compensation packages. It is a challenge for organizations to



formulate strategies to maintain the internal equity and external equity and provide the

most competitive compensation packages to attract and retain the talented workforce. For

the purpose effective incentives programs are undertaken. Employees are involved in the

process so as to deliver un-biased packages to all the employees.

Incentives Plans

Organizations can opt for an effective incentive plans from the various alternatives

available. The organizations usually opt for that incentive plans which suits its

requirement the most. As incentives covers the financial matters, organizations need to be

very focused in choosing the best alternative that is in alignment to the business goals and

objectives.

Piece Rate

Piece rate incentive is given to the employees based on the number of units produced.

This plan is practiced in the sectors dealing with manufacturing of products such as

engineering, automobile, telecommunication, FMCG etc.

Commissions

Commission is a variable component of compensation package. It is given on the basis of

business generated by the employee. Commission is a pre fixed component say 5% of the

total sales done by the employee. It is practiced in the retail, FMCG and other sectors in

the marketing and sales segment.

Bonuses

Bonuses are given to employees on a pre-established goal or criteria. The organizations

set policies regarding the bonuses. Usually bonuses are provided during the festive

season



Merit Raises

Merit raises are given on the basis of predetermined policies. The employees are given

raise on the basis of their performance. The performance standards are set by the

organizations much in advance.

Standard Hour Pay

Standard hour plan provides incentives to employees based on the time saved by them

during the job course. Employees’ productivity and quality is evaluated with respect to

the set standards.

Maturity Curves

Maturity curve incentive plan considers the experience and performance of an employee

for giving out the incentives. It is practiced in all the industries. Experience is always

given a weight-age as experienced people can produce better quality results.

Gain Sharing

Gain sharing incentive plans undertake those employees who give outstanding

performances and provide for cost saving measures. Organizations believe in sharing the

profits with the employees who are responsible for producing those results.

Profit Sharing

Profit sharing incentive plans are practiced in retail and FMCG sectors. Other sectors to

implement the plan based on organizational policies. It refers to giving out the share of

profits the organization earned to all the employees. Indirectly all the organizations

follow the plan by giving out the dividends.



CHAPTER – 2

RESEARCH DESIGN

Introduction to the Topic

Wage and salary administration affect level of employee’s commitment to the

organization. Howsoever, fascinating the individual’s job assignment maybe, the

employee must be paid. Pay affects the way people work-how much and how well. A

large part of the compensation that people receive from work is monetary. Although

managers are expected to conserve money and distribute it wisely, salaries and many

employees feel that they should get more of it for what they do. Wages, salaries and

many employee benefits and services are different forms of compensation.

Contemporary employment reward systems attach great prominence to wages and

salaries. In the evolution of economies, the role of financial rewards has grown. The

sophistication of wage and salary administration has increased as industrialized

economies have become more complex.

“Wage and Salary” is a practical study performance of a company practically adopted.

Among the four most important Ms, Men play a dominate role. The only way by which

men can be gained, retained and satisfied is through wages and salaries. This study is

made to know how the employees are graded and how they are paid by hourly or daily,

whereas salaries are paid by monthly basis.

Wage and Salaries for a particular employee or employer depends upon the various

factors like his grade, position, qualifications, place (urban, rural etc), inflation, type of

organization, industry etc. Per-capita income of a country is calculated upon the wage or

salaries of individuals.



Wage is the compensation an employee receives in return for his or her contribution to

the organization. Wage occupies an important place in the life of an employee. His or her

standard of living, status in the society, motivation, loyalty and productivity depended

upon the wage he or she receives. For the employee too, employee wage is significant

because of its contribution to the cost of production. Besides, many battles (in the form of

strikes and lockouts) are fought the employer and the employees on issues relating to

wages of bonus. For human resource management too, employee wage is a major

function. The human resource specialist has a difficult task of fixing wages and wage

differentials acceptable to employees and their leaders. Since employee wage is such an

important subject, considerable space is devoted in books and periodicals discussion of

wage-related and salary-related problems. This book is not in exception. This study helps

to know how to compensate the work done by individuals in an organization.

Review of Literature

The dire economic conditions that arose in the aftermath of the 2008 financial crisis have

stimulated a heated debate about the compensation of public employees. The issue has

received particular attention because of the severe budgetary constraints facing

governments at all levels. For example, commenting on the disturbances in the state of

Wisconsin during February of 2011, Governor Mitch Daniels of Indiana argued: “The

people who are doing the demonstrating and their allies... spent that state broke... These

folks have really ruled the roost in Wisconsin and other places” [Haberman, 2011].

Daniels continued along this vein in another interview, “We have a new privileged class

in America... We used to think of government workers as underpaid public servants. Now

they are better paid than the people who pay their salaries... Who serves whom here? Is

the public sector - as some of us have always thought - there to serve the rest of society?

Or is it the other way around?” [Garofalo, 2010].



At the same time, some public employees maintain that they are underpaid. A seventh-

grade English teacher demonstrating against Wisconsin Governor Scott Walker’s plan to

reduce public sector benefits told the Huffington Post, “I can’t get a home loan. I set my

thermostat at 62, No cable at my house, no internet... I’m also $36,000 in debt from

becoming a teacher” [Delaney, 2011]. Confronted with the charge of being overpaid, a

paramedic at the same rally remarked, “I drove my Ford Focus [to the capitol building in

Madison]. I live in a 950-square-foot condominium!” [Delaney, 2011]. Others say that

the uproar over public sector compensation simply stems from envy of government

employees’ rightful compensation: “We had the promise of stable retirement [...] People

hate to see someone doing better than they are” [Delaney, 2011]. Martinez, president of

the Service Employees International Union Local 1107, saw public sector compensation

as an arbitrary target for budget cuts: “Why does it have to be on the backs of our

employees?... We need to hold the line and maintain what we have” [Cook, 2011].

Title of the Study

“A Study on Employee’s Wages and Compensation” in Kissan Mouldings Ltd in

Tumkur.

Statement of the Problem

Study of wage and compensation of an organization is very important because it helps to

know whether the employees are rightly compensated for their work.

The study consist with the following problems: -

How employees are satisfied with their wages and compensation?

It is also important to know whether the company is following the right pay scale.

To know various allowances, like washing allowance, stitching allowances, city

compensatory allowances, perks allowance?

How a company works and studies the wage and compensation in daily and

weekly payment of wages in all workers of Kissan Mouldings Ltd in Tumkur.



Objectives of the Study

To study organization structure of Kissan Mouldings Ltd.

To study the wage and compensation of employee in Kissan Mouldings Ltd.

To study growth and development of Kissan Mouldings Ltd enable an

organization to have the quantity and quality of staff it required.

To motivate employees for good performance for further improvement in

performance of Kissan Mouldings Ltd.

Maintain equity and fairness in compensation for similar jobs.

Scope of Study

Today’s compensation systems have evolved over a long time. Worker’s needs and

compensation systems have been changing along with the changes in organizational

structures. This results in a participative organization from the bureaucratic one, where

the employees have started asking for their rights and appropriate compensations. Higher

education standards and higher the skills required for the jobs, have forced the

organizations to provide the competitive compensations to their employees. The area of

study is limited to Kissan Mouldings Ltd Tumkur unit only.

Need and significance of the study

Compensation and Reward system plays vital role in a business organization. Since,

among four Ms. i.e. Men, Material, Machine and Money. Men have been most important

factor, it is impossible to imagine a business process without Men. Every factor

contributes to the process of production/business. It expects return from the business

process such as rent is the return expected by the landlord, capitalist expects interest and

organizer i.e. entrepreneur expects profits. Similarly the labor expects wages from the

process.



Method of research

My study is based on survey method using questionnaire.

Period of the study

Period of my study is one year i.e., during 2013-14 based on collection of data using

primary data as questionnaire and secondary data.

Methodology of Data Collection

1. Primary Data

Primary data has been collected from HR manager and through direct interviews and

questionnaires.

2. Secondary Data

Secondary data was collected by referring to SEA news circular, various books and from

internet using different websites.

Sampling

The process of extracting sample from a population is called sampling. An integral

component of the research design is the sampling plan which consists of three decisions.

Sampling Size

In Kissan Mouldings Ltd total population of employees is 800. Out of total population I

have taken 50 employees as sample size based on permission given by company.



Limitation of the Study

The present study concentrates only on Kissan Mouldings Ltd Tumkur. As the time given

was limited detailed information regarding the strategy of the Kissan Mouldings Ltd.

Tumkur was not able to be collected.

This project report is prepared on the basis of the information provided by the company.

• Information so collected may be biased.

• Company manager is not that much co-operative.

• The suggestions are based on data

CHAPTER SCHEME

The project work is organized into the following chapters.

Chapter 1: Introduction

This chapter deals with introductory part of in wages and compensation, brief concept of wage and compensation, meaning, definition and objective of wage and compensation.

Chapter 2: Research Design and Methodology

This chapter deals with the research design of the study, nothing but the blue print of the research

Chapter 3: Company profile

This chapter deals with the industry and company profile.

Chapter 4: Analysis and interpretation

This chapter deals with the analysis and interpretation of data collected from the questionnaire.



Chapter 5: Summary of Findings and Conclusions

This chapter deals with the summary of findings and conclusions.

Chapter 6: Suggestion

This chapter deals with the summary of suggestions.



CHAPTER – 3

INDUSTRY PROFILE

History

Plastic is a word that originally meant “pliable and easily shaped.” It only recently

became a name for a category of materials called polymers. The word polymer means “of

many parts”, and polymers are made of long chains of molecules. Polymers abound in

nature. Cellulose, the material that makes up the cell walls of plants, is a very common

natural polymer.

Over the last century and a half humans have learned how to make synthetic polymers,

sometimes using natural substances like cellulose, but more often using the plentiful

carbon atoms provided by petroleum and other fossil fuels. Synthetic polymers are made

up of long chains of atoms, arranged in repeating units, often much longer than those

found in nature. It is the length of these chains and the patterns in which they are arrayed,

that make polymers strong, lightweight and flexible. In other words, it’s what makes

them so plastic.

These properties make synthetic polymers exceptionally useful, and since we learned

how to create and manipulate them, polymers have become an essential part of our lives.

Especially over the last 50 years plastics have saturated our world and changed the way

that we live.

The First Synthetic Plastic

The first synthetic polymer was invented in 1869 by John Wesley Hyatt, who was

inspired by a New York firm’s offer of $10,000 for anyone who could provide a

substitute for ivory. The growing popularity of billiards had put a strain on the supply of

natural ivory, obtained through the slaughter of wild elephants. By treating cellulose,



derived from cotton fiber, with camphor, Hyatt discovered a plastic that could be crafted

into a variety of shapes and made to imitate natural substances like tortoiseshell, horn,

linen and ivory.

This discovery was revolutionary. For the first time human manufacturing was not

constrained by the limits of nature. Nature only supplied so much wood, metal, stone,

bone, tusk and horn. But now humans could create new materials. This development

helped not only people but also the environment. Advertisements praised celluloid as the

savior of the elephant and the tortoise. Plastics could protect the natural world from the

destructive forces of human need.

The creation of new materials also helped free people from the social and economic

constraints imposed by the scarcity of natural resources. Inexpensive celluloid made

material wealth more widespread and obtainable. And the plastics revolution was only

getting started.

The Development of New Plastics

In 1907 Leo Baekeland invented Bakelite, the first fully synthetic plastic, meaning it

contained no molecules found in nature. Baekeland had been searching for a synthetic

substitute for shellac, a natural electrical insulator, to meet the needs of the rapidly

electrifying United States.

Bakelite was not only a good insulator; it was also durable, heat resistant and unlike

celluloid, ideally suited for mechanical mass production. Marketed as “the material of a

thousand uses,” Bakelite could be shaped or molded into almost anything, providing

endless possibilities.



Hyatt’s and Baekeland’s successes led major chemical companies to invest in the

research and development of new polymers and new plastics soon joined celluloid and

Bakelite. While Hyatt and Baekeland had been searching for materials with specific

properties, the new research programs sought new plastics for their own sake and worried

about finding uses for them later.

Plastics Come of Age

World War II necessitated a great expansion of the plastics industry in the United States,

as industrial might prove as important to victory as military success. The need to preserve

scarce natural resources made the production of synthetic alternatives a priority. Plastics

provided those substitutes. Nylon, invented by Wallace Carothers in 1935 as a synthetic

silk, was used during the war for parachutes, ropes, body armor, helmet liners and more.

Plexiglas provided an alternative to glass for aircraft windows. A Time magazine article

noted that because of the war, “plastics have been turned to new uses and the adaptability

of plastics demonstrated all over again.”1 During World War II plastic production in the

United States increased by 300%.

The surge in plastic production continued after the war ended. After experiencing the

Great Depression and then World War II, Americans were ready to spend again, and

much of what they bought was made of plastic. According to author Susan Freinkel, “In

product after product, market after market, plastics challenged traditional materials and

won, taking the place of steel in cars, paper and glass in packaging and wood in

furniture.”2 The possibilities of plastics gave some observers an almost utopian vision of

a future with abundant material wealth thanks to an inexpensive, safe, sanitary substance

that could be shaped by humans to their every whim.



Growing Concerns about Plastics

The unblemished optimism about plastics didn’t last. In the postwar years there was a

shift in American perceptions as plastics were no longer seen as unambiguously positive.

Plastic debris in the oceans was first observed in the 1960s, a decade in which Americans

became increasingly aware of environmental problems. Rachel Carson’s 1962 book,

Silent Spring, exposed the dangers of chemical pesticides. In 1969 a major oil spill

occurred off the California coast and the polluted Cuyahoga River in Ohio caught fire,

raising concerns about pollution. As awareness about environmental issues spread, the

persistence of plastic waste began to trouble observers.

Plastic also gradually became a word used to describe that which was cheap, flimsy or

fake. In The Graduate, one of the top movies of 1968, Dustin Hoffman’s character was

urged by an older acquaintance to make a career in plastics. Audiences cringed along

with Hoffman at what they saw as misplaced enthusiasm for an industry that, rather than

being full of possibilities, was a symbol of cheap conformity and superficiality.

Plastic Problems: Waste and Health

Plastic’s reputation fell further in the 1970s and 1980s as anxiety about waste increased.

Plastic became a special target because, while so many plastic products are disposable,

plastic lasts forever in the environment. It was the plastics industry that offered recycling

as a solution. In the 1980s the plastics industry led an influential drive encouraging

municipalities to collect and process recyclable materials as part of their waste-

management systems. However, recycling is far from perfect, and most plastics still end

up in landfills or in the environment. Grocery-store plastic bags have become a target for

activists looking to ban one-use, disposable plastics and several American cities have

already passed bag bans. The ultimate symbol of the problem of plastic waste is the Great

Pacific Garbage Patch, which has often been described as a swirl of plastic garbage the

size of Texas floating in the Pacific Ocean.



The reputation of plastics has suffered further thanks to a growing concern about the

potential threat they pose to human health. These concerns focus on the additives (such as

the much - Discussed Bisphenol A [BPA] and a class of chemicals called phthalates) that

go into plastics during the manufacturing process, making them more flexible, durable

and transparent. Some scientists and members of the public are concerned about evidence

that these chemicals leach out of plastics and into our food, water and bodies. In very

high doses these chemicals can disrupt the endocrine (or hormonal) system. Researchers

worry particularly about the effects of these chemicals on children and what continued

accumulation means for future generations.

The Future of Plastics

Despite growing mistrust, plastics are critical to modern life. Plastics made possible the

development of computers, cell phones and most of the lifesaving advances of modern

medicine. Lightweight and good for insulation, plastics help save fossil fuels used in

heating and in transportation. Perhaps most important, inexpensive plastics raised the

standard of living and made material abundance more readily available. Without plastics

many possessions that we take for granted might be out of reach for all but the richest

Americans. Replacing natural materials with plastic has made many of our possessions

cheaper, lighter, safer and stronger.

Since it’s clear that plastics have a valuable place in our lives, some scientists are

attempting to make plastics safer and more sustainable. Some innovators are developing

bioplastics, which are made from plant crops instead of fossil fuels, to create substances

that are more environmentally friendly than conventional plastics. Others are working to

make plastics that are truly biodegradable. Some innovators are searching for ways to

make recycling more efficient, and they even hope to perfect a process that converts

plastics back into the fossil fuels from which they were derived. All of these innovators



recognize that plastics are not perfect but that they are an important and necessary part of

our future.

A plastics timeline

1712 John O’Brisset moulds snuff boxes from horn.

1823 Macintosh uses rubber gum to waterproof cotton and the ‘mac’ is born.

1839 First deliberate chemical modification of a natural polymer produces

vulcanised rubber.

1851 Gutta percha used to insulate submarine telegraph cables between England

and France.

1854 Shellac mixed with wood flour patented in USA as moulding material for

making ‘union cases’, protective frames for daguerreotypes and

ambrotypes - early forms of photographs on glass.

1855 Soccer ball with vulcanised rubber panels, glued at the seams, designed

and produced by Charles Goodyear.

1861-67 Queen Victoria’s mourning for the Prince Consort fuels the production of

imitation jet mourning jewellery in such materials as cellulose nitrate, hard

rubber and horn.

1862 A range of toiletry and household objects, some imitating the appearance

of tortoiseshell and ivory, made of an early form of cellulose nitrate, is

displayed at the International Exhibition in London. The material was

called Parkesine after its inventor Alexander Parkes. Ultimately Parkesine

fails as a commercial venture.

1870 In USA Hyatt brothers in search of substitute material for ivory billiard

balls turn cellulose nitrate into a commercially viable 1870 material.

Dental palates are one of their good sellers. They register the name

‘Celluloid’ for their material in 1873.

1884 Cellulose nitrate modified to make artificial silk, called Chardonnet silk.



1889 Dunlop Rubber Company founded and motor industry revolutionised.

1888 First commercially successful celluloid (cellulose nitrate) photographic

film introduced by George Eastman Kodak.

1890 Thermoforming introduced and used to make babies’ rattles from cellulose

nitrate.

1892 Cellulose acetate modified to make a form of artificial silk, called viscose.

By 1904 this was known as rayon.

1898 Beginning of mass-production of 78 rpm gramophone records from

shellac, for which it remains the most common material until the 1940s.

1899 Casein formaldehyde patented as Galalith in Germany.

1905 Laminated safety glass, first with gelatine but then with cellulose nitrate

inter-layer introduced.

1907 First synthetic (lab made) plastic, phenol formaldehyde, better known as

Bakelite, later known as ‘the material of a 1000 uses’ introduced.

1910 Viscose stockings begin to be manufactured.

1913 Formica invented.

1915 Queen Mary orders casein jewellery at the British Industries Fair.

1916 Rolls Royce boasts about use of phenol formaldehyde in its car interiors.

1920 Hermann Staudinger publishes his realisation that plastics are made tip of

polymers. Only in 1953 was the value of his work properly recognised

when he was awarded the Nobel Prize for Chemistry.

1926 Harrods, the London store, mounts a display of Beetle products, made

from a form of thiourea-urea formaldehyde. It is a huge success.

National Grid for electricity is established, fuelling the desire for

consumer goods that plug in and switch on, often with plastic housings.

1929 Bakelite Ltd receives its largest ever order of phenol formaldehyde for the

manufacture of the casing of the Siemens Neophone Number 162

telephone.



1933 The British Plastics Federation, the oldest national organization in the

world with plastics in its name, is set up.

1935 Couturier, Elsa Schiaparelli, begins to use zips made of cellulose nitrate

and cellulose acetate in her garments.

1936 Acrylic (polymethyl methacrylate) canopies used in Spitfire fighter planes.

From 1940 it becomes the most widely used material for aircraft glazing.

1938 First toothbrush with plastic tufts manufactured. The tufts were made of

nylon (polyamide).

Introduction of plastic contact lenses. The lenses were made of acrylic

(polymethyl methacrylate).

1939 First polythene factory opens in Britain. Polythene plays a crucial role in

the insulation of British radar cables during World War II. The entire

production is for military use.

Plastic Man, a fictional comic-book hero, first appears.

1945 The end of the war releases a range of plastics developed to support the

war effort on the commercial market looking for uses.

1947 First acrylic (polymethyl methacrylate) paint (dissolved in turpentine)

becomes available. Appreciated by artists such as Roy Lichtenstein for its

intensity and rapid drying properties.

Tupperware, with flexible seals made possible by the invention of

polythene, patented in the USA.

1948 Introduction of long playing vinyl copolymer gramophone records.

1949 Charles and Ray Eames glass reinforced plastic shell chair showed that

plastic could be more than a furniture covering or veneering material.

First Airfix self-assembly model produced. It was made of polystyrene.

Kartell, the Italian firm associated with plastic objects of desire for the

home, founded.

1950 Silly Putty, made from silicon, launched at the New York Toy Fair.



Early 1950s the ubiquitous polythene bag makes its first appearance.

1951 First polythene bottle made by Sqezy.

1953 Commercialization of polyester fibre introduces the concept of ‘wash and

wear’ for fabrics.

Chevrolet Corvette, the first mass-produced car with a glass reinforced

plastic chassis, begins manufacture.

1954 Synthesis of polypropylene.

1956 Reliant Regal 111, first commercially successful all glass reinforced

plastic bodied car, goes on sale.

Eero Saarinen’s Tulip chair, the seat consisting of a glass reinforced

plastic moulded shell, launched.

1958 Invention of the silicon chip.

American Express launches first plastic credit card in US.

Lego decides to concentrate exclusively on plastic toys and patents its

stud-and-block coupling system. Originally made of cellulose acetate, it

has been made of ABS (acrylonitrile-butadiene-styrene) since l963.

1959 Birth of the Barbie doll, made mainly of PVC (polyvinyl chloride) and the

Lycra (copolymer of polyurethane) bra.

Early 1960s Acrylic (polymethyl methacrylate) paint (diluted with water)

comes on market and is soon widely used by artists such as Warhol,

Rauschenberg and Hockney.

1963 Mary Quant launches her “Wet Collection” made of plasticised PVC

(polyvinyl chloride). It had taken two years to work out how to bond the

seams successfully.

Robin Day polypropylene one-piece injection moulded chair shell begins

manufacture.

1967 Inflatable PVC (polyvinyl chloride) ‘Blow’ chair designed by DePas,

D’Urbino, Lomazzi and Scolari for Zanotta SpA, launched.



1969 Neil Armstrong plants a nylon (polyamide) flag on the moon.

1969 Beatles’ song ‘Polythene Pam’, the kind of a girl that makes the News of

the World released on Abbey Road album.

1970 Verner Panton’s cantilevered stackable chair, the first whole chair to be

made out of a single piece of injection-moulded plastic becomes a reality.

He had been working on the design since 1960. The first pilot production

models were made of glass-reinforced polyester resin in 1967. It has since

been made of polyester integral foam, polyurethane, styrene acrylonitrile

(SAN) and polypropylene.

1976 Plastic, in its great variety of types, said to be the material with the most

uses in the world.

Concorde with its nose cone of purpose-made plastic goes into service.

1977 PET (Polyethylene terephthalate) drinks bottle introduced.

1978 PolyStyrene, lead singer of the Punk band X-Ray Spex, bursts on the

scene with ‘the day the world turned day glow’.

1980 During this decade ICI and Bayer launch PEEK, PES and PPS as the new

engineering thermoplastics, Costs are enormous but specialist applications

make a lasting market even after ICI retreats from the plastics market.

1982 First artificial heart made mainly of polyurethane implanted in a human.

2000 Issues relating to sustainability and the creation of plastics from renewable

sources start gathering momentum.

2005 Naas explores the advantages of a polythene-based material, RXF1, for the

space-ship that will send man to Mars.

2007 Tate Britain’s Christmas tree decorated with plastic Airfix planes



COMPANY PROFILE

NAME OF THE COMPANY: KISSAN MOULDINGS LTD.

ADDRESS OF THE COMPANY:

Kissan Mouldings Ltd.

Plot No.172-B &173-A. Zone- 3

Vasantanarasapura industrial area,

Kora Post

Tumkur – 572138.

LOGO & TAGLINE



OBJECTIVES The present main objects of the company as set out of its memorandum of association

and as approved by company law board bench, Western region, Bombay vide its order

dated 18.11. 1983 and as set out in object clause ‘ C ’ vide sub- clause 98&99 are as

follows;

1. To carry on the business of all types of plastics and polymers moldings,

manufacturing moldings producing, fabricating processing, converting, refining,

preparing, importing, exporting, selling, distributing, communication agency and

dealers in all types of sewerage fittings, tubes, pipes, hoses, wrapping, trucks and

house – hold goods.

2. To carry on the business as manufactures of and dealers in all types of plastics,

synthetics resin, synthetic rubbers and elastomers, lattices and formulations there of

including reclaimed rubber and all kinds of plastic and rubber products goods and by

products here to.

BUSINESS PHILOSOPHY Our foundation ; the trust built up over the years.

Our inspiration ; our valued customers

Our mission ; Creating products enhance living.

Our vision ; To be a global player and household name in “water

Management solutions’’ through constant innovation and

Shareholders satisfaction.



ABOUT KISSAN MOULDINGS LTD.

Kissan Mouldings Ltd engages in the manufacture and sale of plastic molded fittings and

furniture in India. It offers building and construction products that include UPVC SWR

pipes and fittings, molded agriculture fittings, UPVC conduit pipes and fittings, rainwater

harvesting systems, PE – AL – PE composite pipes and fittings, cisterns and PVC ball

values and foot valves. The company also offers water management and irrigation

products consisting of UPVC pipes, HDPE pipes, PPR pipes and fittings, Drip irrigation

systems and Sprinkler systems, In addition Kissan Moldings Ltd offers furniture products

comprising chairs, baby chairs, relax chairs, multipurpose trolleys, center tables, storage

drums, dining tables and stools. The company offers its semi urban products under the

brand name of Kissan and Molded furniture under the brand name of crest. It exports its

products to Madagascar, Mauritius, Sri lanka, Dubai, Nigeria, Kenya, Tanzania, DRC,

Sudan, Uganda and Ethiopia.

FOLLOWING IS THE LIST OF QUALITY CERTIFICATION; 1. Rigid PVC pipes; IS 4985 – 2000

2. Firmseal pipes ( Elastromeric pipes ); IS 4985 – 2000

3. HDPE pipes; IS 4984

4. Threded Blue plumbing pipes; ASTM – D – 1785

5. Casing pipes ; IS 12818

6. Sprinkler System; IS 14151 – part ½

7. SWR Pipes; IS 41592

8. SWR Fittings: IS 14735

9. Agri Fittings; IS 7834

10. Solvent Cement; IS 14812.



PRODUCTS





COMPITATORS 1. AML STEEL LTD. ( AMLSTE )

2. ASTROL POLY TECHNIK LTD, ( ASTPOL )

3. GWALIOR POLYPIPES LTD. ( GWAPOL )

4. TEXMO PIPES & PRODUCTS LTD. ( TEXPIP )



The essence of Corporate Governance lies in its transparency and its efficiency lies in its

ability to protect the stakeholder’s interest. The Company’s governance process and

practice has been framed and designed to achieve a transparency and professionalism in

action as well as the implementation of policies and procedures to ensure high ethical

standards as well as responsible management. The governance process is such as to

ensure proper utilization of resources in a manner intended to meet the expectations of all

the Stakeholders. The Company believes in meeting the obligations of all the

stakeholders, including amongst others, shareholders, customers, employees and the

community in which it operates.

Good Corporate Governance contributes to sustainable development by enhancing the

performance of Companies. Better Corporate Governance allows Companies to recognize

and act to fulfill their environmental and social responsibilities. According, it contributes

to long-term, sustainable growth.

The Company’s corporate governance policies and practices for 2011-2012 are as under:

The Company has following tiers of the Governance Pyramid: -

• Shareholders

• Board of Directors

• Committees of the Board

• Executive Management

Each of the tiers operates within the given parameter as per prevailing laws and

regulations or the practices prevalent in the industry.



Board of Directors

Board Composition

The Company recognizes the need and importance of having a strong and broad based

board and hence has maintained an optimum combination of Executive and Non-

Executive Directors. The Composition of the Board is in accordance with the

requirements of the Corporate Governance Code of the listing agreement with the. Stock

Exchanges. The Board of Directors comprises of majority of Non-Executive Directors,

having rich and varied experience and imparts the desired level of independence to the

board. Therefore, the Board of Directors of the Company consists of optimal combination

of Executive, Non-Executive and Independent Directors. As on March 31st 2012 the

Board of Directors has Three (3) Executive Directors and Eight (8) Non-Executive

Directors of which Five (5) are Independent Directors. The Chairman of the Board is

Non-executive

Director.

The day-to-day management of the Company is conducted by the Executive Directors

subject to the supervision and control of the Board of Directors. The Managing Director

of the Company is assisted by other functional Directors.

The constitution of the board and other relevant details relating to Directors as on March

31st 2012 are as under:



Name of Director

Category Number other

Directorships#

Committee Membership $

Committee Chairmanship $

Shri. Ramesh J. Aggarwal

Chairman and Non-Executive

1 - -

Shri. Satish J. Aggarwal

Managing Director Executive

1 - -

Shri Sanjeev A. Aggarwal

Joint Managing Director Executive

1 - -

Shri. Vijay J. Aggarwal

Vice Chairman – 1 & Whole time Director

1 - -

Shri. Ashok J. Aggarwal

Vice Chairman – 2 Non-Executive

1 - -

Shri Sunil Goyal Non-Executive Independent

2 1 -

Shri R.D. Suvarna

Non-Executive Independent

- - -

Shri S.K. Jain Non-Executive Independent

- - -

Shri T.B. Subramaniam


2 - 3

Shri Kunal R. Aggarwal


- - -

Shri Swaminathan Sunderajan Mittur*


8 - -

Shri S.S. Gupta**


- - -

1 - -



* Appointed as Additional Director since 14th February 2012.

*͙ Resigned as Director we’ve 17th June, 2011.

# Other Directorship excludes Directorships held in Private Limited Companies,

Foreign Companies and Section 25 Companies.

$ Committee of Directors includes Audit Committee and Shareholders’/Investors’

Grievance Committee of Directors only.

Board Meetings and Attendance of Directors

The Board meets at least once in a quarter to consider amongst other businesses the

performance of the Company and quarterly financial results. Additional Board Meetings

are held as and when necessary. The board meetings are generally held at the Registered

Office of the company at Mumbai. Agenda for each meeting along with explanatory

notes are drafted are distributed well in advance to the Directors. Every board member is

free to suggest the inclusion of items on the agenda.

During the financial year ended March 31st 2012, the board met five times i.e., on May

30th 2011 (which was adjourned on June 17th 2011), June 17th 2011, November 12th 2011

and February 14th 2012.

The details of attendance of Directors of Board Meetings held during the Financial Year

2011-12 and the last Annual General Meeting are as under:



Name of Directors’ Number of

Board Meetings Held

Number of Board Meetings Attended

Whether Attended last

AGM Shri. Ramesh J. Aggarwal

5 1 No

Shri. Satish J. Aggarwal 5 5 Yes Shri. Vijay J. Aggarwal 5 2 Yes Shri R.D. Suvarna 5 4 Yes Shri S.K. Jain 5 5 Yes Shri T.B. Subramaniam 5 4 Yes Shri Sanjeev A. Aggarwal

5 4 Yes

Shri. Ashok J. Aggarwal 5 5 Yes Shri Sunil Goyal 5 2 Yes Shri Kunal R. Aggarwal 5 1 No Shri Swaminathan Sunderajan Mittur*

1 - No

Shri S.S. Gupta** 1 - No Smt. Monika Seth** 1 - No

* Appointed as Additional Director of the Company since 14th February 2012.

** Resigned as Director of the Company we’ve. 17th June 2011.

Board Committees

Currently, Four committees have been constituted by the board viz.,

I. Audit Committee

II. Remuneration Committee

III. Shareholders’/Investors’ Grievance Committee

IV. Performance Review Committee



Three of these committees are chaired by Non-Executive/Independent Directors and one

Committee by Executive Director. As on date, the Audit Committee comprises of all

Four Non-Executive Independent Directors. The Remuneration Committee comprises of

three Non-Executive Independent Directors. The Shareholders’/Investors’ Grievance

Committee comprises of two Non-Executive Independent Directors, one Non-Executive

Director and one Executive Director. The Performance Review Committee comprises of

four Directors, of which two are Executive Director and two are Non-Executive

Independent Directors. The Board is responsible for the constituting, assigning, co-opting

and fixing the terms of reference for said Committee(s). Recommendations of the

Committees are submitted to the Board for approval.

The quorum for committee meeting is either two members or one-third of the total

number of members of the committee, whichever is higher. Draft minutes of the

committee meetings is circulated to the members of that committee for their comments

and thereafter, confirmed in its next meeting. The board of directors also takes note of the

minutes of the meetings of the committees, at their board meeting.

Audit Committee

Terms of Reference and Scope

Terms of reference and scope of Audit Committee is wide enough covering all the

matters specified for Audit Committee under Clause 49 of the Listing Agreement. The

terms of reference of the Audit Committee inter alia include following:

1. Provide an open avenue of communication between the independent

auditor and the Board of Directors (“BOD”).

2. Recommending the appointment and removal of statutory auditors,

fixation of audit fees and also to approve the payment for other services.



3. Meet four times a year or more frequently as circumstances require. The

Audit Committee may ask members of management or others to attend

meetings and provide pertinent information as necessary.

4. Confirm and assure the independence of the external Auditor.

5. Review with independent auditor the co-ordination of audit efforts to

assure completeness of coverage, reduction of redundant efforts and the

effective use of all audit resources.

6. Consider and review with the independent auditor the adequacy of internal

controls including the computerized information system controls and

security.

7. Reviewing with the management, the quarterly financial statements before

submission to the Board for approval.

8. Reviewing with the management the annual financial statements before

submission to the Board, focusing primarily on:

(a) Any changes in the accounting policies and practices

(b) The going concern assumption

(c) Compliance with accounting standards

(d) Compliance with stock exchange and legal requirements

concerning financial statements

(e) Significant adjustment arising out of audit

9. Consider and review with the management and the Independent Auditor:

(a) Significant findings during the year, including the status of

previous audit recommendations,

(b) Any difficulties encountered in the course of audit work including

any restrictions on the scope of activities or access to required

information.

10. Review of the following information:



(a) Management discussion and analysis of financial condition and

results of operations;

(b) Statement of significant related party transactions submitted by the

management;

(c) Management letters/letters of internal control weaknesses issued

by the Statutory Auditors;

11. Any other terms of references as may be included from time to time in

accordance Clause 49 of the Listing Agreement with the Stock Exchanges.

Primary Objectives of the Audit Committee

As required under Section 292A of the Companies Act, 1956 read with the provisions of

Clause 49 of the Listing Agreement with the Stock Exchanges, the Board has constituted

an Audit Committee. This Committee acts as a link between the Statutory Auditors and

the Board of Directors. It addresses itself to matters pertaining to adequacy of internal

controls, reliability of financial statements and other management information and

adequacy of provisions of liabilities. The primary objective of the Audit Committee is to

monitor and provide effective supervision of the Management’s financial reporting

process with a view to ensure accurate, timely and proper disclosures and the

transparency, integrity and quality of financial reporting.

Composition of the Audit Committee as on March 31st 2012

The Audit Committee is constituted in accordance with the Corporate Governance Code

of the Listing Agreement and the provisions of Section 292A of the Companies Act, 1956

and comprises of all Non-Executive Independent Directors. Shri T.B. Subramaniam, a

Non-Executive Independent Director acts as the Chairman of the Audit Committee. All

the Members of the Audit Committee are financially literate.



The Statutory Auditors are invited to the Audit Committee Meetings whenever required.

The quorum for the Audit Committee Meeting is two members.

The Audit Committee currently comprises of the following Members:

1. Shri T.B. Subramaniam - Chairman (Non-executive Independent Director)

2. Shri Sunil Goyal - Member (Non-executive Independent Director)

3. Shri S.K. Jain - Member (Non-executive Independent Director)

4. Shri R.D. Suvarna - Member (Non-executive Independent Director)

Audit Committee Meetings and Attendance during the financial year ended March 31st

2012:

During the financial year ended March 31st 2012, Five Audit Committee Meetings were

held on May 30th 2011, June 17th 2011, August 12th 2011, November 12th 2011 and

February 14th 2012.

The table hereunder gives the attendance record of Members of the Audit Committee.

Name of the Members No. of Meetings Held No. of Meetings Attended

Shri T.B. Subramaniam 5 4

Shri Sunil Goyal 5 2

Shri S. K. Jain 5 5

Shri R.D. Suvarna 5 4

The Committee has recommended to the Board the appointment of M/s. Mittal &

Associates, Chartered Accountants, as the Statutory and Independent Auditors of the

Company for the Financial Year 2012-13.



Remuneration Committee

The Broad terms of reference of the Remuneration Committee is to ensure that the

remuneration practices of the Company in respect of the Senior Executives including the

Executive Directors are competitive keeping in view prevalent compensation packages so

as to recruit and retain suitable individual(s) in such capacity.

The Committee comprises of the following members: -

1. Shri S.K.Jain - Chairman (Non-executive Independent Director)

2. Shri R. D. Suvarna - Member (Non-executive Independent Director)

3. Shri Sunil Goyal - Member (Non-executive Independent Director)

During the Financial year, 2011-12, no remuneration Committee Meetings was held.

Remuneration Policy

The Company’s remuneration policy is driven by success and performance of the

individual employee/Executive Directors and the Company through its compensation

policy, endeavors to attract, retain, develop and motivate a high performance workforce.

The remuneration structure of the Executive Directors comprises of Salary.

Perquisites and Allowances as decided from time to time subject to all the requisite

approvals. The Non-executive Directors of the Company are paid sitting fees for

attending the meetings of the Board of Directors, Audit Committee and Remuneration

Committee.

The sitting fees for the Board Meeting is Rs. 5000/- and for attending a Committee

Meetings is Rs. 2,500/-

Details of Remuneration/Sitting Fees paid to the Directors for the Financial Year ended

March 31st 2012 is as under:



Name of the Directors Sitting Fees Paid for

Salary & Perks Board Meetings Committee Meetings

Shri Ramesh J. Aggarwal - - - Shri Satish J. Aggarwal - - 26,40,000 Shri Vijay J. Aggarwal - - 26,40,000 Shri R.D. Suvarna 20,000 10,000 - Shri S.K. Jain 25,000 12,500 - Shri T.B. Subramaniam 20,000 10,000 - Shri Sanjeev A. Aggarwal - - 24,00,000 Shri Ashok J. Aggarwal 25,000 - - Shri Sunil Goyal 10,000 5,000 - Shri Kunal R. Aggarwal - - - Shri S.S. Gupta * - - Smt. Monika Seth* - - - Shri Swaminathan Sundararajan Mittur**

- - -

Shares held by Non-Executive Director

Name of the Non-Executive Director Equity Shares held (No.) Shri Ramesh J. Aggarwal 182749 Shri R.D. Suvarna 5000 Shri S.K. Jain 2500 Shri T.B. Subramaniam 2500 Shri Ashok J. Aggarwal 184079 Shri Sunil Goyal - Shri Kunal R. Aggarwal 92914 Shri Swaminathan Sundararajan Mittur** - Smt. Monika Seth* - Shri S.S. Gupta* -

Shareholders’/Investors’ Grievance Committee

Composition



The Shareholders’/Investors’ Grievance Committee currently comprises of the following

Members:

1. Shri S. K. Jain* - Chairman

2. Shri T.B. Subramaniam - Member

3. Shri Vijay J. Aggarwal - Member

4. Shri Ashok J. Aggarwal - Member

Note:

Shareholders’/Investors’ Grievance Committee was reconstituted on induction of Shri S.

K. Jain as a Member and Chairman of the Committee we’ve June 17th 2011 in place of

Shri S. S. Gupta.

Scope of the Shareholders’/investors’ Grievance Committee

The said Committee inter-alia deals with various matters relating to redressal of

Shareholders and Investors complaints like transfer/transmission of shares, non-receipt of

balance sheet, non-receipt of dividends, etc and also recommends measures to improve

the performance of investor services.

Meetings and Attendance

During the year ended March 31st 2012, the Committee met Five times on May 30th 2011,

June 17th 2011, August 12th 2011, November 12th 2011 and February 14th 2012 to take on

record and ratify the Transfer of Shares.



The Attendance record of Members is given in the table here under:

Name of the Shareholders/Investor Grievance Committee members

No. of Meetings attended out of the 5 Meetings held

Shri Vijay J. Aggarwal 5 Shri T.B. Subramaniam 4 Shri Ashok J. Aggarwal 4 Shri S.K. Jain* 3 Shri S.S. Gupta** -

The Committee expresses satisfaction with the Company’s performance in dealing with

investors’ grievances and its share transfer system.

As per the revised Clause 49 of the Listing Agreement and to expedite the process of

share transfers, the Board has delegated the powers of share transfers and related matters

to Shri Ashok Aggarwal and Shri Vijay J. Aggarwal, Members of the committee who

attend to share transfer formalities at least once in a fortnight.

Pursuant to Clause 5A(g) of the Listing Agreement entered into between the Company

and the Stock Exchanges, there are no undelivered/unclaimed shares lying with the

Company.



Details of Shareholders’ complaints received, solved and pending during the Financial

Year ended March 31st 2012:

The total number of complaints received and replied to the satisfaction of the

shareholders during the year ended March 31st 2012 was 1; there were no

pending/unattended complaints as on March 31st 2012.

Nature of Complaint Pending as on 01-04-2011

Received during the year

Received during the year

Pending as on 31-03-2012

Stock Exchanges - Non Receipt of Annual Report

Nil 1 1 Nil

Securities Exchange Board of India

Nil Nil Nil Nil

Others Nil Nil Nil Nil

Performance Review Committee

Composition

The Company has also set up a Performance Review Committee for periodic review of

operations and formulation of short-term/long-term business strategy.

The said Committee comprises of the following members: -

a. Shri Satish J. Aggarwal - Chairman (Executive Director)

b. Shri Sanjeev A. Aggarwal - Member (Executive Director)

c. Shri Sunil Goyal - Member (Non-Executive Independent Director)

d. Shri T.B. Subramaniam - Member (Non-Executive Independent Director)

Scope of the Performance Review Committee

The said Committee inter-alia, deals with various matters relating to performance of the

Company like operations, future expansion plans etc.

Meetings and Attendance



During the year ended March 31st 2012, no meetings of the said Committee were held.

Annual General Meetings

Details of last three Annual General Meetings are given here under:

Year Date Venue Time

2011 24/09/2011 Mirage Hotel, International Airport Approach Road, Marol, Andheri (East), Mumbai - 400 059

11.30 A.M.

2010 27/09/2010 Mirage Hotel, International Airport Approach Road, Marol, Andheri (East), Mumbai - 400 059

11.30 A.M.

2009 21/09/2009 Hotel Suba Galaxy, N.S. Phadke Road, Off Western Express Highway, Near Andheri East-West Flyover, Andheri (East), Mumbai - 400 069

11.00 A.M.

Special Resolution

1. At the Annual General Meeting which was held on 24th September 2011, No

Special Resolution was passed.

2. At the Annual General Meeting which was held on 27th September 2010, Special

Resolutions were passed for:

i. Re-appointment of Shri Satish J. Aggarwal as the Managing Director of

the Company for a period of three years with effect from 1st October 2010.

ii. Re-appointment of Shri Sanjeev A. Aggarwal as the Joint Managing

Director of the Company for a period of three years with effect from 1st

October 2010.

iii. Appointment of Shri Vijay J. Aggarwal as the Vice Chairman - 1 and

Whole Time Director of the Company for a period of three years with

effect from 1st January 2010.

iv. Issue and allotment of 26, 00,000 (Twenty Six Lacks) Optionally Fully

Convertible Warrants on preferential basis in accordance with the

Companies Act, 1956 read with SEBI (Issue of capital and Disclosure

requirements) Regulations, 2009.



v. Issue and allotment of Securities to the Employees and the Directors of the

Company, excluding promoter-Directors under the “Employee Stock

Option Plan - 2010 in accordance with the Companies Act, 1956 read with

SEBI (Employees Stock Option Scheme and Employees Stock Purchase

Scheme) Guidelines, 1999.

3. At the Annual General Meeting which was held on 21st September 2009, Special

Resolutions was passed for:

i. Increase in number of Directors from 12 to 15 pursuant to the provisions

of Section 259 of the Companies Act 1956, subject to the approval of the

Central Government.

ii. Alteration of the Articles of Association of the Company pursuant to the

provisions of Section 31 of the Companies Act 1956.

Disclosures

(i) Related Party Transactions

There are no transactions of material nature with Directors/Promoters or any related

entity, which will have any potential conflict with the interests of the Company at large.

(ii) Compliances by the Company

There is no non-compliance by the Company or any penalties, strictures imposed by the

Stock Exchange, SEBI or any other statutory authority on any matter related to capital

markets, during the last three years.

(iii) Whistle Blower Policy and Access of personnel to the Audit Committee

The Company has not established the non-mandatory requirement of Whistle Blower

Policy. However, the Company’s personnel have access to the Chairman of the Audit

Committee in cases such as concerns about unethical behavior, frauds and other



grievances. No employees of the Company have been denied access to the Audit

Committee.

(iv) Compliance with the Mandatory requirements and Implementation of the Non-

mandatory requirements

The Company has complied with the mandatory requirements of the Corporate

Governance Clause of Listing Agreement. The Company has not implemented the non-

mandatory requirements enlisted by way of annexure to Clause 49 of the listing

agreement except the constitution of Remuneration Committee.

Means of Communication

(i) The quarterly results of the Company are published in two newspapers in

compliance with the provisions of Clause 41 of the listing agreement.

Generally, the same are published in Business Standard (English) and

Mumbai Lakshdweep (Marathi language). As the results of the Company

are published in the newspapers, half-yearly reports are not sent to each

shareholder. The quarterly results as well as the proceedings of the Annual

General Meeting are submitted with the Bombay Stock Exchange Limited

immediately after the conclusion of the respective meeting.

(ii) No presentations were made to the institutional investors or to analysts

during the year under review.

(iii) The Management Discussion and Analysis Report form a part of this

Annual Report.

(iv) Code of Conduct declaration

In accordance with the terms of Clause 49 I(D)(II) of the Listing Agreement entered into

by the Company with the Stock Exchanges, all the Board Members and the Senior

management of the Company has affirmed to the Code and a declaration to that extent

has been signed by Shri Satish J. Aggarwal, Managing Director of the Company.



Certificate on Corporate Governance

As required by Clause 49 of the Listing Agreement, a certificate issued by Mr. Jayesh

Shah, Partner of M/s Rathi & Associates, Company Secretaries, Mumbai regarding

compliance of conditions of Corporate Governance is given as an annexure to this

Report.

CEO & CFO Certification

As required by Clause 49 of the Listing Agreement, the CEO i.e. the Managing Director

and CFO’s certification is provided as an annexure to this Report.

(I) General Shareholders’ Information

(1) Date, time and venue of Annual General Meeting of Shareholders

Saturday 29th September 2012 at Mirage Hotel, International Airport Approach Road, Marol, Andheri (East), Mumbai -400 059

(ii) Financial (tentative and subject to change)

Calendar Financial reporting for quarter ended June 30th 2012 : By August 14th 2012 September 30th 2012 : By November 14th 2012 December 31st 2012 : By February 14th 2013 March 31st 2013 : By May 30th 2013 AGM for year ended : By September 30th 2013 March 31st 2013

(iii Dates of Book Closures

27th September 2012 to 29th September 2012

(iv) Dividend Payment

By 28th October 2012

(v) Registered Office

Tex Centre, ‘K’ Wing, 3rd Floor, 26 ‘A’ Chandivali Road, Near HDFC Bank, Off. Saki Vihar Road, Andheri (East), Mumbai - 400 072. Tel. No.: 022 - 2847 8505, 2847 8549/50/52. Fax No.: 022 - 2847 8508. Email: [email protected]

mailto:[email protected]



Website: www.kisangroup.com (vi) Listing on

Stock Exchange & fees for 2012-13 ISIN

The Equity Shares of the Company are listed on the Bombay Stock Exchange Limited and the Madhya Pradesh Stock Exchange Limited. Annual Listing Fees as prescribed has been paid for the Financial year 2012-2013. INE017C01012

(vii) Stock Exchange Code (BSE)

530145

(viii Disclosures regarding appointment/re-appointment of Directors

Pursuant to the provisions of Sections 255 & 256 of the Companies Act, 1956

Shri T.B. Subramaniam, Shri S. K Jain and Ashok J Aggarwal shall retire by

rotation at the forthcoming Annual General Meeting.

The Board has recommended to the shareholders, the re-appointments of Shri

T.B. Subramaniam, Shri S. K Jain and Ashok J Aggarwal as Directors. The

detailed resume of the aforesaid three Directors is provided in the notice of the

Annual General Meeting.

Pursuant to Section 257 of the Companies Act 1956, Notices have been

received from the Shareholders of the Company, proposing candidature of

Additional Directors, Shri. Swaminathan Sunderajan Mittur for his

appointment as Director in the forthcoming Annual General Meeting. The

Detailed resume of Additional Directors to be appointed as Director is

provided in the notice of the Annual General Meeting.

(ix) Stock Market price data:

http://www.kisangroup.com/



Monthly high and low at the Bombay Stock Exchange Limited for financial year ended

March 31st 2012:

Month Kisan Mouldings Limited BSE High (Rs) Low (Rs) Sensex (High) Sensex (Low)

April 2011 46.15 32.45 19811.14 18976.19 May 2011 40.70 34.55 19253.87 17786.13 June 2011 38.60 32.50 18873.39 17314.38 July 2011 34.00 29.80 19131.70 18131.86 August 2011 30.70 19.65 18440.07 15765.53 September 2011 28.00 21.05 17211.80 15801.01 October 2011 26.95 23.15 17908.13 15745.43 November 2011 27.60 20.05 17702.26 15478.69 December 2011 26.00 18.80 17003.71 15135.86 January 2012 23.35 18.90 17258.97 15358.02 February 2012 24.90 20.25 18523.78 17061.55 March 2012 22.75 19.60 18040.69 16920.61

(x) Performance in comparison to BSE Sensex

(xi) Registrar and Share Transfer Agents

For both Physical and Demat (Common Registry)

Sharex Dynamic (India) Private Limited

Unit - 1, Luthra Industrial Premises, Safed Pool, Andheri Kurla Road,

Andheri (East), Mumbai - 400 072

Tel. No.: 022 - 2851 5506, 2851 5644.

Fax No.: 022 - 2851 2885.

Email: [email protected]

(xii) Share Transfer System

Shares sent for physical transfer are generally registered and returned within a

period of 30 days from the date of receipt, if the documents are clear in all respects. The

Shareholders’/Investors’ Grievance Committee meets as often as required. As per the

mailto:[email protected]



revised Clause 49 of the Listing Agreement and to expedite the process of share transfers,

the Board has delegated the powers of share transfers and related matters to Shri Ashok

Aggarwal and Shri Vijay J. Aggarwal, members of the Shareholders’/Investors’

Grievance Committee who shall attend to share transfer formalities as per the

requirement.

The total numbers of shares transferred in physical form during the year 2011-12 were

5700 Equity shares.

(xiii) Distribution of Shareholding as on March 31st 2012

No. of Equity Shares Held

Shareholders Shares No. of

shareholders % of

shareholders Total share

% of total capital

1 – 100 4421 58.69 344581 2.53 101 – 200 1098 14.58 202570 1.49 201 – 500 1024 13.59 385851 2.83 501 – 1000 463 6.15 372819 2.73 1001 -5000 371 4.92 846780 6.21 5001 – 10000 52 0.69 381527 2.80 10001 – 100000 75 1.00 2849120 20.89 100001& ABOVE

29 0.38 8254932 60.53

TOTAL 7533 100.00 13638180 100.00



CHAPTER- 4

DATA ANALYSIS AND INTERPRETATION

Table - 4.1: Age wise distribution of respondents.

Age group No of Respondents Percentage [%]

Below 20 02 4%

21 – 30 04 8%

31 – 40 11 22%

Above 40 33 66%

Total 50 100%

Sources; Questionnaire

Analysis

The above table shows that the organization is having 66% of the employees are above

40 years and 22% of employees are below 40%. The table reveals that 66% of employees

are under the age above 40, 22% of employees are under the age of 31- 40, 8% of

employees are of 21- 30 age & only 4% of employees of under below 20.



Graph – 4.1: Age wise distribution of respondents.

Interpretation:

Majority of the respondents are of the age above 40, so the company have more number

of experienced employees and more employees are working for many years as they are

satisfied with wages and compensation given by the company.

0

10

20

30

40

50

60

70

Bellow 20 21 – 30 31 – 40 Above 40

4% 8%22%

66%

Perc

enta

ge

Age group



Table - 4.2: Distribution of respondents based on sex

Particulars No of Respondents Percentage[%]

Male 38 76%

Female 12 24%

Total 50 100%

Sources: Questionnaire

Analysis

From the above table it can be inferred that 76% of respondents are male employees and

only 24% of respondents are female employees working in the organization.



Graph – 4.2 - Distribution of respondent’s based on sex

Interpretation:

With the above analysis it can be concluded that the majority of employees are male and

company prefer more male employee than female as the work in company is more

suitable to male.

38

76%

12

24%

0

10

20

30

40

50

60

70

80

No of Respondents Percentage[%]

Male

Female



Table- 4.3 – Division of respondents based on qualification


Analysis

The table shows that 18% of respondents out of total respondents have done SSLC, 30%

respondents have done PUC, 40% respondents have graduation and only 12% of

respondents have completed their post graduation.

PARTICULARS NO OF RESPONDENTS PERCENTAGE[%]

SSLC 09 18%

PUC 15 30%

DEGREE 20 40%

POST GRADUATE 06 12%

TOTAL 50 100%



Graph – 4.3 – Division of respondents based on qualification

Interpretation

As the majority of employees are degree holders, so they have a good knowledge about

the wage and compensation.

9

15

20

6

18%

30%

40%

12%

0

5

10

15

20

25

30

35

40

45

SSLC PUC DEGREE POST GRADUATE

NO OF RESPONDENTS

PERCENTAGE[%]



Table – 4.4 – Division of respondents based on how long working in Kissan

Mouldings Ltd.

PARTICULARS

NO OF RESPONDENTS

PERCENTAGE [%]

Below 5 Years

10

20%

5 -10 Years

20

40%

10-15 Years

15

30%

15 Years and Above

5

10%

TOTAL

50

100%


Analysis

The above table exhibits the number of respondents & percentage of employees towards

the duration since which they are working in the organization. Majority of the

respondents i.e., 40% have 5-10 years of experience and 20% of the respondents have

below 5 years of experience and 30% of respondents have 10-15 years of experience and

only 10% of the respondents have 15 years and above experience.



Graph -4.4 – Showing division of respondents based how long working in Kissan

Mouldings Ltd.

Interpretation

From the above analysis it can be concluded that the majority of respondents have

experience more than 5 years which is a good thing about the company as they are able to

make employees work for longer period of time.

0

5

10

15

20

25

30

35

40

Below 5 Years

5 -10 Years

10-15 Years

15 Years and Above

10

20

15

5

20%

40%

30%

10%

NO OF RESPONDENTS

PERCENTAGE [%]



Table – 4.5: Prior work experience of employees before joining the job

Particulars No of Respondents Percentage [%]

Experienced 30 60%

Not Experienced 20 40%

Total 50 100%


Analysis:

The above table is indicating that 60% of respondents have experienced before the job

and 40% of respondents don’t have any experienced before joining the job.



Graph – 4.5: Prior work experience of employees before joining the job

Interpretation:

With the above analysis it can be concluded that majority of respondents have

experience before joining the job and it shows that they have quit their earlier job and

join this company this shows that company have good working environment.

Experienced

Not Experienced02468

101214161820

No of Respondents Percentage

[%]

2

4%

20

40%

Experienced

Not Experienced



Table - 4.6 – Nature of employees work


Machinery 15 30%

Manual 10 20%

Computerized 25 50%

Any Other 00 00%

Total 50 100%


Analysis Above table shows that 30% of respondents are working with machineries and 20% of

respondents are working manually and 50% of respondents are working with computers.



Graph – 4.6 – Nature of employees work

Interpretation:

With the above analysis it can be concluded that 50% employees are working with

computer which shows importance of work with computer in the company.

15%

10%

25%

0%

No of Respondents

Machinery

Manual

Computerized

Any Other



Table - 4.7: Employees pay back


Below – 5000 10 20%

5000 – 10000 20 40%

10000 – 15000 10 20%

15000 – Above 10 20%

Total 50 100%


Analysis

Above table indicate that out of 50 respondent, 10[20%] respondents pay back is below

5000, 20[40%] of respondents pay back is 5000 – 10000 and 10[20%] and respondent

pay back is 10000 – 15000 and 10[20%] respondents pay back is 15000 and above.



Graph - 4.7: Employees pay back

Interpretation:

With the above analysis it can be concluded that majority of respondents pay back comes

between 5000 – 10000, which shows a less pay back received by the majority of the

employees.

10%

20%

10%

10% Below – 5000

5000 – 10000

10000 – 15000

15000 – Above



Table - 4.8 - Work satisfaction of employees


Analysis

Above table shows that out of 50 respondents 35[70%] respondents have satisfaction with

their work &15[30%] of respondents don’t have satisfaction with work.


Satisfied 35 70%

Un Satisfied 15 30%

Total 50 100%



Graph - 4.8: Work satisfaction of employees

Interpretation:

With the above analysis it can be concluded that majority of respondents are satisfied

with their work and which shows that company is able to provide a good working

environment.

35

70%

15

30%

0

10

20

30

40

50

60

70

80


Satisfied

Un Satisfied



Table - 4.9: Satisfaction of employees with their wages and salaries in an

organization.


Satisfied 20 40%

Un Satisfied 30 60%

Total 50 100%


Analysis

From the above table it can be inferred that 20 [40%] respondents have satisfaction with

their wages and salary and 30 [60%] respondents have dissatisfaction with their wage and

salary given in the organization.



Graph – 4.9: Satisfaction of employees with their wages and salary in an

organization.

Interpretation:

With the above analysis it can be concluded that majority of respondents have shown

their dissatisfaction towards wages given by the company. So company should think for

the enhancement in wages.

20 40%

30 60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Un Satisfied

Satisfied



Table – 4.10: Base of the salary


Automatic Progression 5 10%

Renewal 30 60%

Length of Service 15 30%

Total 50 100%


Analysis

From the above table it can be inferred that 5 [10%] respondents are having automatic

progression on the base of salary and 30 [60%] respondents are having renewal and 15

[30%] respondents are having length of service as base of salary.



Graph – 4.10: Base of the salary

Interpretation:

With above analysis it can be concluded that majority of employees having the salary

based on renewal.

0

10

20

30

40

50

60

70

Automatic Progression

Renewal Length of Service

No of Respondents

Percentage[%]



Table – 4.11: Division of respondents based on the salary


Analysis From the above table, 24 respondents prefer compensation in the form of money, 9

respondents prefer in the form of recognition, 10 respondents in form of promotion &

remaining 7 respondents prefer any other form/kind of recognition.

PARTICULARS

NO OF RESPONDENTS

PERCENTAGE[%]

MONEY

24

48%

RECOGNITION

9

18%

PROMOTION

10

20%

ANY OTHER KIND

7

14%

TOTAL

50

100%



Graph – 4.11- Division of respondents based on the salary

Interpretation

Majority of respondents prefer recognition in the form of money, which shows that

majority of respondents give preference to money rather than any other recognition as

money become a primary need for them.

0

24

0 09

010

07

0

48%

0 0

18%

0

20%

0

14%

0

10

20

30

40

50

60

70

80

MONEY RECOGNITIONPROMOTION ANY OTHER KIND

PERCENTAGE[%]

NO OF RESPONDENTS



Table - 4.12: Selection method adopted by the organization for the job.


Analysis

From the above table it can be inferred that the 25 [50%] respondents have been given

written examination at the time of their selection and 15 [30%] respondents have been

selected by having personal interview and 10 [20%] respondents have been selected

having psychological test.


Written Examination 25 50%

Personal Interviews 15 30%

Psychological Test 10 20%

Other - -

Total 50 100%



Graph – 4.12: Selection method adopted by the organization for the job

Interpretation:

With the above analysis, it can be concluded that most of the employee have been

selected by giving written examination, which shows the importance of written exam

while selecting candidates for work.

50%

30%

20%

0

10

20

30

40

50

60

Written Examination

Personal Interviews

Psychological Test

No of Respondents

Percentage[%]



Table – 4.13: Employees reason for joining the Kissan Mouldings Ltd.


Job Security 23 46%

Better Facilities 10 20%

Better Salary 10 20%

Other 7 14%

Total 50 100%


Analysis

From the above table it can be inferred that 23(46%) respondents have given job security

as reason to join the Kissan Mouldings Ltd and likewise 10(20%) and 7(14%) have given

better facilities, better salary and few have given other reason for joining this

organization.



Graph – 4.13: Employees reason for joining the Kissan Mouldings Ltd.

Interpretation:

With the above analysis it can be concluded that majority of respondents joined Kissan

Mouldings Ltd. because they think that their job is very much secure in this organization.

23%

10%

10%

7%

No of Respondents

Job Security

Better Facilities

Better Salary

Other



Table – 4.14: Percentage of employees receiving benefits allowance

PARTICULARS

NO OF RESPONDENTS

PERCENTAGE[%]

YES

34

68%

NO

16

32%

TOTAL

50

100%


Analysis

The percentage of the above table reveals employees receiving benefits allowances. It

implies that 68% of respondents receive the benefits allowance and 32% do not receive.



Graph - 4.14: Percentage of employees receiving benefits allowance

Interpretation

From the above analysis it can be interpreted that the majority of the respondents (68%)

receive the benefits allowance and are happy with that.

34%

16%

NO OF RESPONDENTS

YES

NO



Table – 4.15: Satisfaction with the medical facility provided to employees at Kissan

Mouldings Ltd.


Excellent 05 10%

Good 40 80%

Average 05 10%

Bad 00 00

Total 50 100%


Analysis

The above table indicates that 10% of respondents feel that medical facilities provided by the

company is excellent, 80% respondents feels that medical facilities provided by the company is

good, 10% respondents feels that medical facilities provided by the company is average level and

no employees feels that medical facilities provided by the company is bad.



Graph – 4.15: Satisfaction with the medical facility provided do you at Kissan

Mouldings Ltd.

Interpretation:

With the above analysis it can be interpret that medical facilities provided by the company is

good as no respondents shows their dissatisfaction and the level of satisfaction is in terms of good

but more as excellent.

5

40

5 0%

10%

80%

10%

00

20

40

60

80

100

120

140

Excellent Good Average Bad

Percentage[%]

No of Respondents



Table – 4.16: Employees satisfaction with the over time allowance provided by the

company.


Highly Satisfied 15 30%

Satisfied 20 40%

Dissatisfied 15 30%

Highly Dissatisfied 00 00

Total 50 100%


Analysis

Above table shows that 30% of respondents are highly satisfied with over time

allowance, 40% of respondents are satisfied with the over time allowance, 30% of

respondents are dissatisfied with over time allowance given by the company.



Graph - 4.16: Employees satisfaction with the over time allowances provided by the

company

Interpretation:

With the above analysis it can be concluded that majority of respondents are only

satisfied with the over time allowances given by the company and there are respondents

who have shown their dissatisfaction towards over time allowances for which company

has to think.

15

20

15

0

30%

40%

30%

0%0

5

10

15

20

25

30

35

40

45

Highly Satisfied

Satisfied Dissatisfied Highly Dissatisfied

No of Respondents

Percentage[%]



Table – 4.17: Percentage of respondents expecting further career opportunities

PARTICULARS

NO OF

RESPONDENTS

PERCENTAGE[%]

YES

32

64%

NO

18

36%

TOTAL

50

100%


Analysis

The above table shows that 32% of the respondents are in the expectation of further

career opportunities in their organization 30% of respondents are not expecting to have

further career opportunities.



Graph – 4.17: Percentage of respondents excepting further career opportunities

Interpretation

From the above analysis it can be interpreted that the majority of the respondents have

expectation to have further career opportunities in their organization that make them to

work enthusiastic but there are few respondents who don’t want any further opportunity

which shows their negative attitude towards work.

0

32%

18%

0

64

36 PARTICULARS

YES

NO



Table-4.18: Percentage of respondents receiving benefits at the time of retirement

PARTICULARS

NO OF

RESPONDENTS

PERCENTAGE[%]

YES

29

58%

NO

21

42%

TOTAL

50

100%


Analysis

The above table shows that 58% of the respondents are thinking that they will be

benefited at the time of retirement and 42% are thinking that they will not be benefited at

the time of retirement.



Graph – 4.18: Percentage of respondents receiving benefits at the time of retirement

Interpretation

From the above analysis it can be interpreted that majority of the respondents are thinking

that they will be benefited at the time of retirement but few respondents have thinking

that are not going to be benefited at the time of retirement which shows a negative

approach towards their company.

0 10 20 30 40 50 60

PARTICULARS

YES

NO

0

29

21

0

58%

42%



Table – 4.19: The level of satisfaction about the infra-structure facilities in the company.


Analysis

Above table shows that 14% respondents are highly satisfied with the infra-structure

facility, 60% of respondents are satisfied with the infra-structure facilities 26% neither

satisfied nor dissatisfied with the infra-structure facilities.


Highly Satisfied 07 14%

Satisfied 30 60%

To some Extent Satisfied 13 26%

Dissatisfied 00 00

Total 50 100%



Graph – 4.19: The level of satisfaction about the infra-structure facilities in the

company

Interpretation:

With the above analysis, it can be concluded that there are only satisfaction by the

majority of respondents about the infrastructure facilities which are there in the company

but the good thing is that no respondents shows their dissatisfaction towards company’s

infrastructure and it is a good thing for company but still company has to improve their

infrastructure.

7

30

13

0

14%

60%

26%

0%0

10

20

30

40

50

60

70

Highly Satisfied

Satisfied To some Extent

Satisfied

Dissatisfied

No of Respondents

Percentage[%]



Table – 4.20: Relationship between colleagues


Excellent 05 10%

Good 30 60%

Average 10 20%

Bad 05 10%

Total 50 100%


Analysis

The above table reveals that 10% of respondents have excellent relationship with their

colleagues & 60% of the respondents are in good relationship & 30% of respondents are

having average relationship & 10% of respondents are having bad relationship with their

colleagues.



Graph – 4.20: Relationship between colleagues.

Interpretation

From the above analysis it can be interpreted that majority of the respondents have good

relationship with their colleagues and few respondents have bad relationship with their colleagues

who should be improved.

5

30

10

5

10% 60% 20% 10%0

5

10

15

20

25

30

35

Excellent Good Average Bad

No of Respondents

Percentage[%]



Table – 4.21: The percentage of risks covered in the life insurance program

PARTICULARS

NO OF

RESPONDENTS

PERCENTAGE[%]

ACCIDENTAL DEATH

23

46%

TRAVEL ACCIDENT

17

34%

INSURANCE

CONTINUANCE BEYOND

RETIREMENT

10

20%

TOTAL

50

100%


Analysis

The above table shows that 46% of respondent’s life covered as accidental death, 34% of

respondent’s life covered as travel accident and 10% of respondents life covered as

continuance beyond retirement under life insurance program.



Graph -4.21: The percentage of risks covered in the life insurance program.

Interpretation

From the above analysis it can be conclude that life insurance of employees is covered

maximum as accidental death which more than any other coverage, which shows that

respondents think that the working nature is so risky in the company.

0

23

17

10

0

46%

34%

20%

ACCIDENTAL DEATH A

DISMEMBERMENT

TRAVEL ACCIDENT

INSURANCE CONTINUANCE BEYOND RETIREMENT



CHAPTER:5

SUMMARY OF FINDINGS AND CONCLUSTION

FINDINGS

1. With the study it reveals that the numbers of male employees are more in the organization.

2. The study found that more number of employees in the organization having qualification of

degree. It shows that the numbers of educated employees are more in lower level of

management

3. With the analysis it reveals that majority of the employees in the organization are not having

experience before joining this company.

4. The study shows that majority of the employees are working with the use of computers

which shows the adoption of the technology in the organization is good.

5. With the study it found that 30% of the employees are not satisfied with their work in the

company.

6. The study shows that majority of the employees are not satisfied towards their wages and

salaries as they think is so less.

7. With the study it reveals that majority of employees prefer money, in the form of incentive

rather than the recognition of promotion.

8. It found that 50% of employees are selected by giving them written examination and only a

part of employees are selected through personal interviews and psychological test.

9. Majority of employees are joined to the Kissan Mouldings Ltd. With an intention of security

for their jobs.

10. The study shows majority of the employees responses about the satisfaction with the

medical facility provide by the company is good.

11. The analysis shows the parts of the employees are not satisfied with the overtime allowances

provide by the company.

12. It found that majority of employees are expecting further career opportunity in future but few

of them don’t have any expectation with the further career opportunity in future in the

company.

13. The study shows that a part of the employees are not feeling good about their relationship

with the colleague more over maximum of them have good relationship between them.



CONCLUSION

Compensation is an integrality of human resource management. It is the remuneration

received by an employee in return to his or her contribution for the organization. A good

compensation system evolves a balanced work-employee relationship by providing

monetary and non-monetary benefits to the employees. In my study regarding wages and

compensation I have tried to make understand the importance of wages and compensation

for employees which will boost up the confidence of the employees towards their work in

the company. The more importance given by the company for wages and compensation

will result in better performance and good positive relationship between the employees

and company.

Finally I suggest this company for having the best case about the employees by giving them all

the facilities which are needed time to time.



CHAPTER: 6

SUGGESTIONS

1. Company should recruit young people as they are dynamic and are very creative in thinking.

2. Recruitment of female should be given more priority in future days by the company.

3. As the graduate employees are more, the company can provide a place for them to go for further studies and take up their post graduation.

4. As company employing fresher, they should provide proper training for their work.

5. As most of the employees are not satisfied with wage and salaries provided in organization. It is suggested to review and revise their wage and salary policy.

6. Company is suggested that not only depend on written examination for the selection method and also consider different other recruitment methods of different jobs.

7. The company should provide better facilities and better salary also along with more job security.

8. The company should provide more and more medical facilities in order to secure the employer welfare.

9. The company has to increase its overtime allowances in order to increases the productivity of employees.

10. The company has to provide the retirement benefits to all the employees who are permanent compulsory.

11. The company should provide more infra- structure facilities to employees in order to increase their job satisfaction.

12. The employees should maintain the excellent relationship with their colleagues to have better co- ordinations within the organization.

13. It is advisable to the company to cover all the risk equally to protect employees from the uncertainties.

Documents

Viru project