A

PROJECT REPORT
ON
THE EFFECT OF TRANING AND
DEVELOPMENT ACTIVITIES
Conduct at
BALLARPUR INDUSTRIES LTD.
(Yamuna Nagar)
SUBMITTED TO:
KURUKSHETRA UNIVERSITY, KURUKSHETRA
In the partial fulfillment of the requirement of Bachelor of
Business Administration (BBA)

2011-2013
1

SUBMITTED TO:

SUBMITTED BY:

Mr. Ravish Kumar

Vijay Kumar

Lecturer of BBA

BBA Vth sem

(JIMT)

(JIMT)

Jankiji Institute of Management & Technology,

Vill. Marwakalan (Distt. Yamuna Nagar)
[Approved by AICTE& Affiliated to
Kurukshetra University Kurukshetra]

Acknowledgement

I would like to express my deepest gratitude to all the people who were a part of
my Summer Internship Program and helped me make it learning and a rewarding
experience. This would not have been possible without the help of Mr. Rakesh
Chawla (DGM-F&A), Mr.S.L.Arora(Dy.Mgr.-F&A) and
Mr.Rajeev Mehta (A/Cs Officer & my guide) who have given me this wonderful
opportunity to be able to study and observe the whole system. He helped me in
coordinating and getting information from various associates & personnel.

I also thank Mr.Kumar Raju (Dy.Mgr.-Costing) & Mr. Anurag Prashar (AOA/Cs) who supported me with their invaluable insights and suggestions. My

project and the tremendous work exposure I had in this Unit would have been
incomplete if I had not had his cooperation.

Preface
The success of any organization depends upon the people and the systems
prevailing in the organization. The people in any organization are treated as an
asset like any other productive asset. Accounting bodies (CIMA, CPA, CIE&W)
advocate for their valuation & incorporation in the books of accounts. Both the
organizations & people have desire for stability & growth to avoid any switching
& related costs. Finance plays an important motivating factor for the long-term
partnership between the two entities viz. organization & the people.
The relationship between an organization & its people is not only of give and
take rather to be long-term partners in a family building & setting examples of
perfection in the industrial context. Together they contribute to the nation
building & increasing the nations productivity.
Employee payments being the major cost to an organization require deep
study & analysis of the whole system pertaining to the same to remove the
weaknesses of the same.

CONTENTS
1.Acknowledgement
2.Preface
3. Company profile
Introduction
4

 Organization structure of the company

Organization structure of the unit BILT
4. Introduction of the study (synopsis)
5.Objective of the study
6. Research Methodology
7. Research Design
Scope of study
Area of study
Time Schedule
8. Data Collection
Methods of data collection
Data Collection Techniques
Data Collection Instruments
9. Sampling Design
Sampling Unit
Sample Size
Sampling Techniques
10. Analysis & Interpretation
11. Findings
12. Constraints of study (Limitations)
13. Suggestions
5

14.Conclusions
15. References

Industry Scenario
Indian paper industry is the 15th largest in the world and provides employment to
1.3mn people in the country contributing Rs25bn to the Government. The
industry has recorded a volume growth of CAGR of 5.47% over the last 3 years.
In 2005-06, it recorded a volume growth of 6%, in line with the GDP growth.
Indian paper industry has a 1:1 correlation with the economy. With the expected
GDP growth of 7-8% for FY06 as per RBI, the paper sector is expected to record
a similar growth rate.
The domestic per capita consumption is the lowest at 6kg compared to the South
Asian and the world average of 11kgs and 53kgs respectively. The Indian paper
industry has an installed capacity of 6.7mn tons while, the effective capacity is
estimated to be lower at 6.15mn tons. The industry produced 5.26mn tons of
paper in 2003-04. Newsprint capacity in India is estimated at 1.12mn tons
however, domestic production is only 0.59mn tons, while consumption of
newsprint is 1.1mn tons.
Paper Prices on an Uptrend
The Paper cycle has been on a global uptrend since early 2003. However,
progressive custom duty cuts and an appreciating rupee kept domestic price
increases under check. With the rupee starting to depreciate since the beginning
of the year, domestic prices have also started firming up in line with international
trend. The prices are expected to sustain at high levels for a year at least, as
capacity utilization, has peaked and proposed expansions will not keep pace with
demand growth in the short term.
7

International pulp prices increased sharply in 2004 on account of increased

demand from US and China resulting in an increase of about 5% on an average in
the domestic paper prices in India. While, internationally pulp (soft wood) prices
have increased by 7% in the last year. The pulp prices for domestic manufacturers
are expected to decline with the international trend. However, due to buoyant
demand for paper, the paper prices are likely to remain firm.
Orient Paper & Industries Ltd has increased its paper prices by Rs500-1,000 per
ton in February, on account of increase in raw material prices. BILT has also
increased prices of its uncoated paper segment by Rs1,000 per MT with effect
from March 10, 2005. Other paper companies are likely to follow suit.

Favorable demand - supply scenario to keep prices firm

The demand for paper is influenced by various macro-economic factors like
national economic growth, industrial production, promotional expenditure,
population growth and the Governments allocation for the educational sector.
Domestic demand for paper is expected to grow at a CAGR of 6-7%. Indias
paper demand is expected to touch 8mn tpa by 2010. A leading global paper
industry consultant projects a shortage of about 0.7mn tpa by 2010. Major
developments are
Presently, paper prices are firm in both global markets as well as in India
also. Prices are expected to remain firm in the future as well. Previously,
the cycles were very sharp, there used to be 15 to 20% change in peak &
trump, but now the gaps have narrowed & only 3 to 5% gap between peaks
& trump is there. So now the cycles are smooth. Although global prices
8

may start declining by 2006, however India will be relatively insulated

because India is a growing economy & demand for paper is growing.
Typically, there is a demand growth by 6% & supply is growing only 2 to
3% so there will be demand-supply gap. However, this gap will be in some
segments only. In the copier segment, expect a growth of about 17-18%, in
coated about 15%. So this trend is going to continue and one can expect
paper prices to remain firm.
Threat of Imports - In coated paper, there are imports, however Indian
coated paper is still selling at a premium to landed prices. That is because;
firstly India is a very small market, i.e. 220,000 tons. Secondly, the
domestic importers have order sizes of 500 kgs, so most of the
international players are not capable of handling such small order sizes,
hence quality & delivery becomes critical. Most of the importers are not
able to manage such small orders. For a global player to enter into the
Indian market without any distribution network is very difficult. Foreign
companies for e.g. Sinarmass tried to come to India & thought that they
could succeed in the commodity market without distribution, but
unfortunately they have failed.
Proposed capacity expansions - Capacity expansions (which cost 50% less
than new capacities) have been announced by most players, but
Would take 1-2 years to be operational. The 7 large players in the sector
have announced capacity expansions of over 600,000 tons.

 Rising paper exports - Paper exports have risen at a CAGR of 14% pa from
105,000 tons in FY00 to 176,000 tons in FY04. Most of the organized
players are planning to expand their reach to the international markets by
trying to adhere to the global standards and improving the quality of paper
manufactured.
The industry is highly fragmented and has an annual installed capacity of
nearly 6 mn tones.
The industry has been facing competition from cheap imports, and capacity
utilization is less than 80%.
The high cost for creating capacity implies that any new capacity will
largely be set up by existing players.
Companies with larger capacities will have to look at consolidation
through mergers and acquisitions, rather than immediate capacity
expansions.
In a changing competitive environment, a shakeout in the industry is
inevitable. Large mills are expanding, driven by the need for greater
economies of scale and lower costs.
Prospects of paper industry in term of domestic and export market - The
total capacity of the paper industry is about 1.5 million tonne and it is
growing at the rate of six per cent. Here again there is a big gap between
demand and supply. Demand is growing at six per cent and supply at three
to four per cent. We do not see any surplus capacities being created as it
was created in 1995-96, which tilted the industry. There might be a fall
10

because of fall in global prices. Its more of a psychological fall than a

demand-supply mismatch. Its sure that demand will soon outstrip supply.
Lot of consolidation maybe happening in this industry in form of
acquisitions.
In India the supply and demand is quite flexible. Whatever the demand is,
the supply has to adjust accordingly. But if you talk about installed
capacity as against demand, the installed capacity could be little bit more
than the demand. Basically, paper is a cyclical industry but now more or
less this cycle has been evened out. It is no more as cyclical as it used to be
some four to five years back. Now even the prices have firmed up in the
last six months and it is to stay like this for some more time to come.
In India the maximum growth in writing and printing has come from
copier paper the reason being the increase in photocopying. We are also
witnessing growth from coated papers. The ratio between coated and
uncoated paper is highly skewed toward uncoated in relation to the
developed countries. The reason is uncoated paper is the cheapest.
But with the development of the economy, more and more coated paper is
consumed. In India industrial paper is quite stable. The prices have grown
in one direction.
The market share of BILT on an average is about 14 per cent and will grow
upto 20 per cent in a year or so. In the coated paper segment, their share is
65 per cent, bond paper 40 per cent, copier paper 15 per cent, which will
again grow to 20 per cent in a year or two. Going forward, they are
working towards concentrating their capacity in copier paper.
11

Business Profile
BILT is India's largest paper company and the only Indian company to rank
amongst top 200 paper companies in the world.
BILT is the undisputed leader in the Indian paper industry. It is also India's largest
manufacturer and exporter of paper, with a strong presence in all segments of the
usage spectrum that includes Writing & Printing Paper, Industrial Paper and
Specialty Paper. Complementing this is a diversified production infrastructure
with six manufacturing units spread across the country.
In recent years, BILT has evolved as a more dynamic, knowledge driven
organization focused towards creation of stakeholder value. In the process, it has
also transformed the paper industry from its traditional 'commodity market'
mindset to a branded one. A concerted program of innovation and technological
excellence helps it proactively respond to the needs of each individual segment.
Today, BILT not only has the range, but also a well-entrenched distribution
network that enables it to reach customers, any time, any place.
As the industry leader, BILT is committed to developing its business towards
ecological, social and economic sustainability. Community development and
upliftment of the marginalized class have been identified as focus areas. BILT has
joined hands with Parham, an NGO that runs primary education programs all
over the country. A key initiative in environmental accountability is the BILT
Farm forestry program that has covered more than 7500 farmers since 2001.

12

Company History
Ballarpur Industries Ltd.(BILT) promoted by LM Thapar, is the leader in Indian
paper industry with five manufacturing facilities produces ordinary and superior
varieties of writing, printing and specialty papers etc. The company is also
backwardly integrated with its Caustic soda/Chlorine manufacturing facility,
which is a vital material consumed in the production process of paper.
BILT which is originally incorporated in 1945 as Ballarpur Straw Board Mills has
changed its name in March 1946 to Ballarpur Paper and Straw Board Mills and
again it was changed to the present name in Oct. 1975. Since then the company
has grown to be a leader in paper industry by continuous expansion and
modernization of its capacity, plant and strategic acquisitions. In 1969 the
company has merged Shree Gopal Paper Mills with itself and the company which
has acquired the Sinar Mas Pulp and Paper(India) Ltd.(now BILT Graphic Papers
Ltd[BGPL]) which has state of the art 115000 tpa paper plant and a market leader
in the high end coated art paper and art paper board segment in India. Further the
company has merged BGPL with itself during the year 2002-03.
Bilt Tree Tech Ltd and The Paperbase Company Ltd are subsidiaries of the
company.
The company which was one of the most diversified companies in the preliberalization era of industrial licensing with interests in Paper, Chemicals
(Phosphoric Acid, STPP, Chlor Alkalies), Vanaspati & Edible oils and Glass has
decided to focus on its core competence that is in paper and exit from its noncore businesses. First major steps on these lines was initiated in the year 1994-95
with hiving off the glass business. Thereafter the company sold its vanaspati and
13

edible oils business in 1996-97. And in 1998, the chemical division of the
company with its plant at Karwar, Karnataka and which has interests in
Phosphates, Chlor Alkali and Bromine and Bromine Chemicals was spun of into
a separate company i.e. Ballarpur Chemicals Ltd(now Solaris ChemTech Ltd). To
further rationalize its focus the company exited from Janpath Investments &
Holdings Ltd and brought APR Packaging Ltd partially under its control. It has
also shut down the Unit Choudwar (a paper plant in Orissa) in 2002-03 due to
scarcity of Raw material.
To complement its restructuring and to enable it to emerge as a stronger and
more competitive organization, the company has implemented a project involving
modernization and expansion of capacity at its Units in Shree gopal, Ballarpur
and Sewa by 105000 TPA. The Project was implemented in two phases. In the
first phase, the capacity expansion of 35000 TPA and 28000 TPA was planned
over a two-year period from 2000-01 to 2002-03 for Units Sewa and Shree
Gopal. In the second phase 42000 TPA of capacity was expected to come on
stream at Unit Ballarpur by 2003-04. During the year 2001-02, the company has
completed the up gradation of pulp mill at unit Sewa resulting in increase in
capacity by 37 tonnes from the earlier 125 tonnes of unbleached pulp per day.

The company has also completed the installation of a 2.4 metre wide blade coater
at Unit Shree Gopal in FY2001-02.BILT entered into strategic alliance with
Hansol of South Korea to provide world class blade coated paper to the Indian
customer. It is the first company in the world to commercially exploit the
fractionation of bamboo and has applied for the world patent for this process. It

14

has also entered into direct retail distribution with the launch of A4 size, 100
sheet pack of Royal Executive Bond.
The company has increased its installed capacity of paper including Wrapper and
Coated Paper by 20000 MT and with expansion the total installed capacity of
paper including wrapper and coated paper has increased to 406568 MT during
2004-05.
BILT has acquired the integrated pulp and paper facility of Sabah Forest
Industries-a Malaysian based firm- along with J P Morgan for 261 million US
dollars in June 2006.The two companies have acquired 97.8% equity stake in the
Malaysian firm, of which 20% will be taken by J P Morgan and the rest by BILT.

15

Vision
To become a leading creator of Shareholder Value in the Paper Industry. To
achieve this, they will use the energy of their people, develop and implement
leading edge technologies and draw on both to deliver effective world-class
solutions to their customers

To consistently outperform expectations and deliver superior value to both

the Customers and Stakeholders. To achieve this, they will Energize their
people, with a positive culture that rewards Innovation, breeds Initiatives and
encourages Intelligent risk taking.

16

Core Values
Honesty: To be principled, straight-forward and fair in all dealings.
Integrity: Maintaining the highest standards of professionalism.
Flexibility: Adapting ourselves to always stay a step ahead of change.
Respect for Individual: Giving each person room to contribute and grow.
17

 Respect for Knowledge: To acquire and apply leading edge expertise in

all aspects of our business.
Team Performance: The team comes first; none of us is as good as all of
us!

18

Strategic Intent
BILT, in the recent years has evolved as a more dynamic, knowledge-driven
organization with a singular focus on creating stakeholder value. Aimed at
making the organization more market-oriented and customer-centric, the
following initiatives are to drive BILT forward in the rapidly changing business
environment:
Consolidation: A Continuous streamlining of capacities and products in
their core business area.
Brand Building: Increasing brand involvement for the products amongst
customers to reduce market fragmentation and attain generic brand status
via strategic building.
De-Commodisation and Service Orientation: Redefining the paper
industry with customer at the center stage.
Wider Product Range: Adding high value-added products to BILT's
portfolio expanding it to cover the widest range of basic to high-end usage
paper products.
19

 Product-mix Rationalization: Maintaining an intelligent product-mix

based on value and demand curves to maximize returns.
Exploring Global Markets: Reaching out to international markets with
world-class products while maintaining leadership in India.
Operational Improvements & Cost-competitiveness: To attain higher
efficiency levels and world-class quality in production processes.
Increasing Capacities: Expansion of manufacturing and processing
capabilities across product range, in line with market dynamics.
Sound Investments: Accelerate growth by way of investments into
focused, synergetic acquisitions.

Captive Market Share: Sustaining and strengthening BILT's leadership

position in its market segments way ahead of competitors.
Extending 'Touch-Points': Building a wider and 'intelligent' distribution
network that enables BILT to serve its markets in a customized and
localized manner and attain higher penetration, without losing the
economies of scale.

20

Work Ethos

21

Some of the key elements that we are critical in nurturing this knowledge capital
are:
A collaborative work environment that enables the people to work in sync
towards common individual, team and organizational goals.
A Learning Strategy to create a pervasive Knowledge culture and a Quality
mind-set within the organization.
A Performance Management System that links individual performance
with the organizations goals and which has rapidly brought in a
performing culture within BILT. This is supported by an Economic Value
Add (EVA) based incentive system in line with global norms.
Cutting through traditional hierarchies to create a well bonded work place
for our people. This is supported by an organization wide policy of open
and transparent communication, which stems from their belief that their
people

have

the

first

right

About the Chairman

22

to

information.

Mr L M Thapar
An eminent industrialist, Mr Lalit Mohan Thapar heads the L M Thapar Group, a
large corporate conglomerate in India. Born on 27th October, 1930, Mr Thapar
graduated in engineering from the University of Southern California, USA. He is
also a fellow member of the Indian National Academy of Engineering.
Mr L M Thapar took over the stewardship of the Group in 1962 and since then,
has played a significant role in steering several Group companies through the
changing Indian business environment. Mr Thapar is the Chairman of Ballarpur
Industries Limited, the flagship company of the Group and has played a pivotal
role in its pre-eminent stature on the Indian Business Scenario.
Over the years, Mr L M Thapar has also made significant contribution in the
economic affairs of the country as well as external economic relations. A past
president of PHD Chamber of Commerce & Industry, Mr Thapar became the first
President of restructured new ASSOCHAM, one of the apex chambers of the
country in 1988. He has also been the Chairman of the Indo-Canada, Indo-USSR
and Indo-US Joint Business Councils. Mr L M Thapar has been on the Executive
Board of the International Chambers of Commerce and is also a member of the
UN Commission on Transnational Corporations. He is patron member of the ICC
India. Mr Thapar has also been the Chairman, Board of Governors of Indian
Institute of Technology, Kharagpur and Kanpur.
He is also the President of the Board of Governors and Chairman of the Council
of Thapar Institute of Engineering & Technology, Chairman of the General Body
and the Governing Body of Thapar Center for Industrial Research &
Development, Patiala, Chairman of the Board of Trustees for Patial Technical
23

Education Trust and Member of the Managing Committee of Associate Chambers

of Commerce & Industries.
The details of his directorships on the Boards of various companies are as under:
Ballarpur Industries Limited, Bilt Paper Holdings Limited, Orient Engineering
and Commercial Company Limited, The Pioneer Limited, Sohna Stud Farm Pvt
Limited, TT & G Trading Pvt Limited, iBilt Technologies Limited, Bilt Middle
East Pvt Limited, Himalayan Hideaways Pvt Limited, Karam Chand Thapar &
Bros Limited, Lavasa Corporation Limited and KCT Papers Limited.

About the Vice Chairman & Managing Director

Mr Gautam Thapar
A visionary leader and an eminent industrialist, Mr. Gautam Thapar has been
associated with the L M Thapar Group for over 18 years. Born on 7th December,
1960, Mr. Thapar graduated in Chemical Engineering from the Pratt University,
USA. He marked his entry into the business in the year 1988 with the turnaround
of a loss making pulp unit. Since then, he has successfully led the Company
through a complex restructuring process, driving its position towards being the
countrys largest Paper Manufacturing Company today.
Mr Thapar was appointed the Managing Director of Ballarpur Industries Limited
on 16th April, 1999 and was subsequently designated as Vice Chairman &
Managing Director of the Company effective 20th April, 2001. Mr Gautam
Thapar is also the Chairman of Crompton Greaves Limited, Salient Business
Solutions Limited and the Managing Director of Bilt Paper Holdings Limited. He
was also the Chairman for the Northern Region of Confederation of Indian
24

Industry
The

details

Indias
of

his

largest

apex

other

Industries

directorships

are

association.
as

under:

Asahi India Glass Limited, Compass Limited, CG Capital & Investments

Limited, Greaves Cotton Limited, Global Green Company Limited, KCT Papers
Limited, KCT Chemicals & Electricals Limited, Solaris Chemtech Limited,
Osians Connoisseurs of Art Pvt Limited and Paratham India Education Initiative.
He is also the Vice Chairman of the Governing Body & of the General Body of
Thapar Center for Industrial Research & Development, Patiala, Member of the
Board of Trustees for Patiala Technical Education Trust, Member of the Board of
Governors and Member of the Council of Thapar Institute of Engineering &
Technology, Member of the Managing Committee of Associate Chambers of
Commerce & Industries, Member of the National Council & Chairman (National
Committee of bio-Technology) of Confederation of Indian Industry and Trustee
of Aspen India.

Business Segments
BILT services its customers' needs for quality Paper - both in India as well as
overseas. Their paper touches the customers' lives everyday. In more ways than
they even know. Stationery, playing cards, high quality coated paper for
brochures and magazines, currency notes, copier paper They service these
25

everyday instances across the length and breadth of the nation with our wide
product portfolio ranging from basic to high-end specialty paper.
Coated Wood Free Paper
Uncoated Hi Bright Paper
Business Stationary
Copy Paper
Specialty & Fine Paper
While these indicate their broad product segments, BILT also continuously
focuses on serving customers with customized, value-added products to suit
specific applications. With the acquisition of Sinar Mas' Indian operations
(BGPL), BILT has acquired world-class coated paper capacities that find
widespread application in the high end of the Indian usage market as well as
developed overseas markets.

Products and Brands

Segments

BILT Brands
BILT Emperor Art Paper C1S

Chromo

BILT Royal Art Paper C1S

26

Sunshine Art Paper C1S

Easy Print
Creamwove

Sunshine Maplitho NSS

BILT Copy Power

Copiers

BILT Image Copier

Royal Executive Bond,

Bonds

Sunlit Bond
Royal Executive Bond (Coloured Bonds in
laid finish) Moonbeam, Aquas, Camelle
BILT Emperor Art Board

Art Board

BILT Royal Art Board

Sunshine Art Board Plus
Sunlit Coated Art Board
Sunshine Super Printing

Hi Bright

TA Maplitho NSD premium

BILT Royal Print Plus
BILT Emperor Art Paper C2S

Art Paper

BILT Royal Art Paper C2S

Sunshine Art Paper C2S

27

Distribution Network
With the customer at the center of the business activities, they have pioneered the
transition of the traditional 'transaction-based' model to a 'relationship-based
model' in the Indian paper industry. This relationship is built by constantly
leveraging the physical proximity to the markets, further enhanced by intelligent
28

systems offering a strong emotional proximity to their customers even at a microlevel.

Their distribution network and understanding of local requirements is unmatched
in the Indian paper industry. Over the decades, BILT has transitioned from the
'metro' concept to cross country distribution. While their five manufacturing
facilities for paper and pulp are strategically spread across the country, they have
assiduously brought their products within physical proximity of the customers.
Their network of 126 dealers - the largest within the industry in India - is present
across the principal consuming centers of the country and is the key fulcrum to
this proximity.
Strategically implemented Enterprise Resource Planning (ERP) System, real-time
logistics and Just-in-Time (JIT) inventory solutions enable highly effective and
efficient distribution of localized BILT products across urban, semi-urban and
rural consumption centers nation-wide. A direct marketing initiative by the
company to establish a two-way interaction with customers is another step
forward in this direction.
BILT has five Paper & Pulp Manufacturing Units in the country located at the
following places
1. Ballarpur Unit, Distt. Chandrapur, Maharastra.
2. Shree Gopal, Yamuna Nagar, Haryana.
3. Ashti, Maharastra.
4. Bhigwan, Maharashtra
5. Sewa, Orissa
29

CSR Policy

BILT Social Responsibility Policy

"While BILT is responsible to continuously enhance shareholder wealth, it is also
committed to its stakeholders to conduct its business in a responsible manner that
creates a sustained positive impact".
For Bilt being a responsible Corporate will mean:
Using environment friendly and safe processes in production.
30

 Making sustained effort in preserving the environment.

Promoting the well being and development of employees and their families
through an inspiring corporate culture that engenders good values.
Building active and long term partnerships with the communities in which
we operate to significantly improve condition of the most disadvantaged
amongst them.
Observe good business practices with other stakeholders i.e business
partners: customers, distributors, suppliers and contractors
Environmental Policy
BILT

believes

accountability.

in
All

synergising
manufacturing

business
units

interests
follow

with
stringent

environmental
environment

management systems and are moving towards ISO 14001 certification.

Furthering its drive towards protecting the environment and reducing pollution,
the Company has in place the following guidelines:
Set and periodically review sound environmental objectives and targets for
each manufacturing unit
Install, maintain and operate facilities to comply with all applicable
environmental laws and other regulations pertaining to the Unit
Conserve natural resources and energy by through consistently reducing
consumption and wastage
Promote farm forestry for sustainable availability of fibrous raw material
Introduce cleaner and energy efficient processes in a phased manner
Develop an environmental conscious approach amongst all employees
31

Sustainability Initiatives
Over the years, we have refined our processes to not just enhance the quality of
our paper, but also leveraged responsible practices to protect the quality of the
environment.
Some of the initiatives that the Company has actively embarked upon, as part of a
sustained environment programme include:
An Institutionalised 3R (reduce, recycle and reuse) Program in line with
International benchmarks. This is delivered by an optimal use of raw
material resources, and a responsible waste management program. We
continue to test this integrated environment management systems through
rigorous internal audits. We also continue to benchmark various practices
across our facilities in line with the demanding requirements of
international certifications.
BILT is driving this initiative through one of the largest investments of its
kind in India, These investments are being made in process technologies,
ligning reduction initiatives, augmentation of effluent treatment, superior
gas evacuation processes and various in-the-pipe and end-of-pipe
processes and technologies.
Their subsidiary BILT Tech Tree Ltd. is engaged in a concerted program
with marginal farmers to develop a sustainable raw-material base on
wastelands. It is a win-win partnership that goes beyond statutory
requirements and which protects collective interests through assured buyback arrangements, while accelerating the conversation of degraded
32

marginal lands into a rich, productive forestry resource for the country.
This collaborative farm forestry scheme is now an industry model for the
following reasons:
Community Initiatives
BILT recently launched an Employee Volunteer Programme (EVP) - BILT
Cares. This programme covers employees at all levels and is an extension of the
Companys sustained involvement with the communities at its various locations.
BILT Cares will concentrate its efforts on volunteerism, allowing employees to
participate in the process of social change.

Primary Education
On the corporate level, BILT has committed itself to the cause of universal
primary education and has joined hands with Pratham, an NGO that runs primary
education programs all over the country. BILT, in partnership with respective
local governments and Pratham mainstreams children into formal education
system via 205 bridge classes in eight cities, reaching out to over 28,000 students.
Community Development
It is also engages its teams at various units to catalyze community development
programs in surrounding villages. For example, over 11 villages around our Sewa
33

unit are today benefiting from BILTs CSR initiatives in collaboration with
Harsha

Trust,

an

NGO

engaged

in

socio-economic

development

of

underprivileged areas.
Forestry Operations
Pulp and paper industry in India, during the last 14-15 years has been involved in
encouraging small land holders to adopt to growing short rotation, pulpwood
species on their marginal or unproductive lands under buy back assurance and
shift its dependence for fibrous raw materials to non forest sources. The main
species used in agro and farm forestry programmes are Subabool, Eucalyptus,
Acacia, Casuarina and Bamboo.
Under farm forestry model unproductive land is planted only with fast growing
species. This model also provides for growing trees along with cash crops such as
pulses, cotton, soyabean and turmeric etc. for the first two years. The farmers are
supplied good quality plants and are assured buyback of the wood produce by
industry.
Farm Forestry Benefits
The success of farm forestry programme is yielding benefits to all the
stakeholders, which can be briefly summarized as follows:
Benefits to Farming Community;
Productivity improvement
Additional Income
34

 Fuel Wood
Financial Assistance through banks
Employment
Environmental Benefits
Additional fuel wood generation
Reduced dependency on natural forest
Soil and water conservation
Wasteland reclamation
Green cover creation
BILT Forestry Initiatives
BILT has been developing Farm Forestry since 1990 through its subsidiary
company BILT Tree Tech Ltd. (BTTL). Since its inception in 1989, BTTL has
concentrated on developing core competency in forestry and is manned by
experienced forestry professionals.
BILT has taken a special care to target marginal land belonging to farmers below
poverty line. Farmers covered under this scheme are assured purchase of their
pulpwood produce by BILT at declared support price or market price which ever
may be higher. Tailor-made bank loans on long-term basis are made available to
the needy farmers.
Ongoing Research & Development activities aimed at tree improvement and
35

clonal development are already contributing to increased returns to farmers

through improved productivity. BTTL has initiated site-specific forestry research
projects to identify and produce high yielding clones of pulpwood species like
Eucalyptus, Casuarina and Leucaena leucocephala. Plantations raised with high
yielding clones of Eucalyptus have achieved substantial increase in yield giving
significantly higher returns to farmers. The company plans to progressively
increase usage of high yielding clones in the farm forestry programme by
adopting tissue culture route. BILT Tree Tech Ltd has also established high
quality seed orchards of above species to improve availability of good quality
seed and ensure better productivity of its farm forestry programme.
The programme is being implemented in six states of India namely, Maharashtra,
Andhra Pradesh, Orissa, Chhattishgarh, Haryana, and Tamil Nadu, through a
network of central and decentralized nurseries. The three central nurseries located
in Orissa, Andhra Pradesh and Haryana have state-of-the-art technology and are
capable of producing root trainer and clonal plants with a total capacity of 5/6
million plants. Till date 80 million plants have been distributed covering
approximately 16,000 hectares land belonging to 13,300 farmers. Long-term
target is to progressively increase this farmer base to 60, 000 farmers and annual
planting to more than 50 million plants by year 2007-08.

36

The Papermaking Process

The Process Model The following is the basic model of paper
manufacturing process. Various companies have their own methods which have
some differences but follow this method basically.

37

Step 1: Forestry
Typically, trees used for papermaking are specifically grown and harvested like a
crop for that purpose. To meet tomorrow's demand, forest products companies
and private landowners plant millions of new seedlings every year.

38

Step 2: Debarking, Chipping and/or Recycling

To begin the process, logs are passed through a debarker, where the bark is
removed, and through chippers, where spinning blades cut the wood into smaller
pieces. Those wood chips are then pressure-cooked with a mixture of water and
chemicals in a digester.

39

Used paper is another important source of paper fiber. Thanks to curbside

recycling programs in many communities lot of paper is recoverable. The paper is
shredded and mixed with water.

Step 3: Pulp Preparation

The pulp is washed, refined, cleaned and sometimes bleached, then turned to
slush in the beater. Color dyes, coatings and other additives are mixed in, and the
pulp slush is pumped onto a moving wire screen.

Computerized sensors and state-of-the-art control equipment monitor each stage

of the process.

Step 4: Paper Formation

40

As the pulp travels down the screen, water is drained away and recycled.

The

resulting crude paper sheet, or web, is squeezed between large rollers to remove
most of the remaining water and ensure smoothness and uniform thickness. The
semidry web is then run through heated dryer rollers to remove the remaining
water.

41

Waste water is carefully cleaned and purified before its release or reuse. Fiber
particles and chemicals are filtered out and burned to provide additional power
for the mill.

Papermakers
carefully

test

for such things

as

uniformity

of color and surface, water resistance, and ink holding ability.

Step 5: Paper Finishing

The finished paper is then wound into large rolls, which can be 30 feet wide and
weigh close to 25 tons. A slitter cuts the paper into smaller, more manageable
rolls, and the paper is ready for use.

42

Papermaking is one of the most capital intensive industries in the nation,

investing over $100,000 in equipment for each employee.

The largest

papermaking machines are over 32 feet wide, 550 feet long and can produce over
1,000 miles of paper a day.

43

Properties of Paper
1) Basis Weight (GSM) - The weight or substance per unit area is
obviously fundamental in paper and paper board products. The Basis
weight of paper is the weight per unit area. This can be expressed as the
weight in grams per square meter (GSM or g/M2), pounds per 1000 sq. ft.
or weight in kgs or pounds per ream (500 sheets) of a specific size. REAM
44

WEIGHT is a common term to signify the weight of a lot or batch of paper.

Control of basis weight is important as all other properties are affected.
Variations in moisture content in paper affect the grammage.
2) Brightness, Whiteness and Colour - Brightness is defined as the
percentage reflectance of blue light only at a wavelength of 457 nm.
Whiteness refers to the extent that paper diffusely reflects light of all wave
lengths throughout the visible spectrum. Whiteness is an appearance term.
Colour is an aesthetic value. Colour may appear different when viewed
under a different light source. Brightness is an arbitrarily defined, but
carefully standardized, blue reflectance that is used throughout the pulp and
paper industry for the control of mill processes and in certain types of
research and development programs. Brightness is not whiteness. However,
the brightness values of the pulps and pigments going into the paper
provide an excellent measure of the maximum whiteness that can be
achieved with proper tinting. The Colour of paper, like of other materials,
depends in a complicated way on the characteristics of the observer and a
number of physical factors such as the spectral energy distribution of the
illuminant, the geometry of illuminating and viewing, the nature and extent
of the surround and the optical characteristics of the paper itself.
3) Bulk - Bulk is a term used to indicate volume or thickness in relation to
weight. It is the reciprocal of density (weight per unit volume). It is
calculated from caliper and basis weight. Sheet bulk relates to all other
sheet properties. Decrease the bulk or in other words increase the density,
and the sheet gets smoother, glossier, less opaque, darker, lower in strength
etc.
4) Dimensional Stability - An important consequence of the absorption
and de-absorption of moisture by paper is the change in dimension that
45

usually accompanies changes in moisture content. Such changes in

dimension may seriously affect register in printing processes and interfere
with the use of such items as tabulating cards. Uneven dimensional changes
cause undesirable cockling and curling. Dimensional changes in paper
originate in the swelling and contraction of the individual fibres. It has been
observed that cellulose fibres swell in diameter from 15 to 20% in passing
from the dry condition to the fibre saturation point. It is impossible to be
precise about the degree of this swelling because paper-making fibres differ
considerably in this property, and because the irregular cross-section of
fibres creates difficulty in defining diameter. Change that occurs in the
dimensions of paper with variation in the moisture content is an important
consideration in the use of paper. All papers expand with increased
moisture content and contract with decreased moisture content, but the rate
and

extent

of

changes

vary

with

different

papers.

5) Folding Endurance (Double Folds) - Folding endurance is the

paper's capability of withstanding multiple folds before it breaks. It is
defined as the number of double folds that a strip of 15 mm wide and 100
mm length can withstand under a specified load before it breaks. It is
important for printing grades where the paper is subjected to multiple folds
like in books, maps, or pamphlets. Fold test is also important for carton,
box boards, ammonia print paper, and cover paper etc. Folding endurance is
a requirement in Bond, Ledger, Currency, Map, Blue Print and Record
Papers.
6) Formation - Formation is an indicator of how the fibres and fillers are
distributed in the sheet. Formation plays an important role as most of the
paper properties depend on it. Paper that is poorly formed will have weak,
46

thin spots and thick spots. These will affect properties like caliper, opacity,
strength etc. Paper formation also affects the coating capabilities and
printing characteristics of the paper.
7) Gloss - It is the secularly and diffusely reflected light component
measurement against a known standard. Gloss is important for printing such
things as magazine advertisements. The level of gloss desired is very
8) dependent on the end use of the paper. Gloss and smoothness are different
properties and are not dependent on each other.
9) Machine and Cross Direction - Paper has a definite grain direction
due to greater orientation of fibres in the direction of travel of the paper
machine. This grain direction is known as machine direction. The cross
direction is the direction of paper at right angles to the machine direction.
Some of the properties vary with the MD and CD and hence the values are
reported in both the directions. While sheeting the paper, machine and cross
direction are to be kept in mind and the sheet cutting to be done to suit the
end use requirements. Examples: 1. All printing papers are to be cut in long
grain (The biggest dimension in the grain direction). 2. Book papers fold
better and the book stays open better if the sheets are out so that the
machine direction runs up and down the pages. 3. Wrap around labels for
metal cans and bottles are to be cut with the machine direction vertical to
obtain greater flexibility about the can. Long grain and Short grain : The
sheet is in long grain if the larger dimension is parallel to grain (MD)
direction. The sheet is said to be in short grain if the larger dimension is
parallel to cross direction (CD).
10)

Moisture - Most physical properties of paper undergo change as a

result of variations in moisture content. Water has the effect of plasticizing

the cellulose fibre and of relaxing and weakening the interfibre bonding.
47

The electrical resistance and the dielectric constant of paper both vary with
moisture content. The absorption and reflectance of certain bands of
infrared and microwave radiation by paper are affected by its moisture
content. The amount of water present in a sheet of paper is usually
expressed as a percent. The amount of water plays an important role in
calendaring, printing and converting process. Moisture control is also
significant to the economic aspect of paper making. Poor moisture control
can adversely affect many paper properties.
10) Opacity - Opacity is the measure of how much light is kept away from
passing through a sheet. A perfectly opaque paper is the one that is
absolutely impervious to the passage of all visible light. It is the ratio of
diffused reflectance and the reflectance of single sheet backed by a black
body. Opacity is important in Printing Papers, Book Papers, etc.

11) Smoothness - Smoothness is concerned with the surface contour of

paper. It is the flatness of the surface under testing conditions which
considers roughness, liveliness, and compressibility. In most of the uses of
paper, the character of the surface is of great importance. It is common to
say that paper has a "smooth" or a "rough" texture. The terms "finish" and
"pattern" are frequently used in describing the contour or appearance of
paper surfaces. Smoothness in important for writing, where it affects the
ease of travel of the pen over the paper surface. Finish is important in bag
paper as it is related to the tendency of the bag to slide when stacked.
Smoothness of the paper will often determine whether or not it can be

48

successfully printed. Smoothness also gives eye appeal as a rough paper is

unattractive.

Employment Details
On Roll

1. Management Staff

190

2. Clerical Staff

128

3. Permanent

1235

4. Casual Worker

744

5. Contractor

728

Total

3025

Various people are there to regulate the relations like:

49

Grievance Procedure: Stepladder procedure is defined by the company to

redress the grievances of the workers from the immediate superior to higher
authority, there is also a grievance committee is this context.
Collective Bargaining: Wages agreements between union and management
are done through collective bargaining process, beside this other issues are
also settled by collective bargaining where equal number of representative of
both management and union negotiate on concerned issues
Workers Participation in Management: Through suggestion schemes and
quality circles.
Disciplinary Procedures: there is also defined procedure for any misconduct
or any indiscipline, domestic enquires are been conducted against any charge
and then necessary steps are taken.
Time Office
Its main function is concern with:
To maintain attendance, leave, overtime duty, records of all employees,
consolidating the working days at the end of the month and advise
accounts department for payment of salary.
Deployment of casual labor.
Comply with statutory requirement under the Act.

50

Attendance Rule 9 min grace period is allowed to both clerical and

management staff at the start of the shift and also during shift breaks. If a
person is late by more than 9 min, he has to submit a short leave, which is
allowed for 2hrs after that day absent is worked.
SHIFTS: 3
12 p.m to 8 a.m
8 a.m to 4 p.m
4 p.m to 12 a.m
General 7.30a.m to 4.30p.m
Lunch break 12a.m to 1p.m
Overtime Double the actual amount paid after 8hrs of work to worker and
clerical staffs.
Overtime is allowed against Absentee
Vacancies
Shut
Casual
New job
Paid holiday

Leave Rules: For clerical staffs Leave year 1st Jan to 31st deck.

PL
51

FSL

Clerical staff

CL

H
U

Entitlement

2
4.5

BL

23.

24

56

10

Accumulation

3
2

5
2

40
40
0
On prorate (after 365 days of service) from

Eligibility

date of joining.

For management staffs Leave year 1st April to 31st march

Management
staff
Entitlement
Accumulation
Eligibility

CL

PL

SL

10
-

30

11
180 DAYS

180

DAYS
On prorate (after 365 days service) from date
of joining.

Unavailed leaves can be encashed at the end of the year with minimum no. Of
10 days in a year.
Procedure for Payroll
52

1. Computation of working days, leaves, rest, absent. W/O.

2. Attendance data keying into computer by CSD according to the advice
given by the time office.
3. Receipt of attendance sheet from CDS.Advising correction data to CDS in
case of less or excess paid.
Wages and Salary Administration:
Wages of the workers are determined by the agreement between management
and union, so different slabs are defined for skilled, unskilled and clerical
workers, which are revised from time to time.
Salaries of management staffs are determined according to prevailing industry
rate, job responsibility, position in the hierarchy, knowledge, experience,
qualifications, and fixed during the appointment of the concerned person with
pre determined fixed allowances, which include basic and perks.
There is an increment every year on salary and wages on 1st April for clerical
staffs and 1st July for management staffs, which is performance related.
Deductions are also there from salaries and wages as for PF which is 12%
both the employee and employer contributes, employee family pension 8.33%,
ESI contribution 1.75% by the employee and employer contributes 4.75% of
gross wages includes basic and allowances.

53

Establishment:
This department basically deals with employee personal records, saving
schemes, insurance schemes, and social security schemes and after retirement
schemes and etc.
Personal Records: This record is maintained for every employee of the unit
from management staff to worker. It includes all the information regarding the
employee from personal to professional and its gets updated from his day of
joining till to his retirement or end of his association with the company. The
age of retirement followed by the co. is 60 years as per govt rules. It basically
include Application form
Appointment letter
Medical certificate
Salary status
Memorandums, circulars related to his issued during his service.
Record if any disciplinary action taken against him, domestic enquiry, details
of chare sheet, seeking explanation, action taken.
Particulars of increments.
Details of promotions, etc
Various saving and insurance schemes include:
ESI EMPLOYEE STATE INSURANCE: 54

Under ESI Act, Employees entitled under this scheme whose gross wages is
up to RS 6500 above this they are treated as non-ESI members.
Gross wages include = Basic + VDA + HRA +Educational allowance
+productivity gain + production bonus +Incentive amount + OT
Both employee and employer make contribution
Benefits:
Group insurance
Employee entitled under this those who are entitled to PF. (from LIC)
Employee deposit link insurance
From LIC
On death LIC of RS62000 makes payment.
This scheme is bone by the employer, so quarterly premium is paid by the co.
with calendar year 1st Jan.

Social security schemes

LEVEL
L-1 TO

CATEGORY
(B)

BENEFIT AMOUNT

MEMBERS

240/MEMBER/YEAR

COVERED
TILL
4

L-4

PERSONS
(EMPLOYEE,
WIFE AND 2
55

L-5 TO
7
GM AND

(A)
SPECIAL

285/MEMBER/YEAR
1125/MEMBER/YEAR

CHILDREN)
- DO -

DO

ABOVE
For management staffs Group medical expenses are paid by the co./year.

Group personal accident scheme

Officers are entitled
Accident benefits are given for any time anywhere it occurred.
Benefit = Hospital expenses +Salary on leave.
Group term insurance
In case of death maximum claim is up to RS 1,00,000, bone by the co. (but it
is not in operations as death rate is low and premium rate is high
comparatively)

Estate and Securities:

It includes

Housekeeping
Which is broadly categorized into two namely Housekeeping of plant and
Housekeeping of colony.
Plant: It includes looking after nomads land, roads, up keeping of the
premises in the work areas. Dustbins are maintained at sutabile locations both
in plant and colony.
56

Colony: Maintenance jobs are carried out in the houses of the workers. Also
the responsibility of the guesthouses, staff houses, cleaning and general
maintenance.
Security Setup:
The security setup is looked after by the security DGM, who is assisted by
three security officers. Around 15 guards/shift are posted around various
locations in the mill. The security looks after the fire safety along with the
usual responsibilities.
Labour Welfare:
The welfare officer is looking after labour welfare.
Various activities include:
Canteen: A canteen is being run in the unit as per statutory requirements,
where the employees are being provided facilities of food and snacks at
subsidized rates. A 6- member committee is running its operation; with 3
members of each union, which is being chaired by DGM-PDC.Approximately,
it serves 300 lunches and 150 dinners/day. Employees are being charged at a
very nominal rate of RS 1.50/meal. Administration of quality control and rate
is under the welfare sections.
There is a constant checking system in canteen and officer from PDC department visit
the canteen during the lunch and dinner times to check the quality of food, service,
hygine stsndards, as well as housekeeping maintained in the canteen.
Games, Sports and Cultural Programs: These are being conducted and
organized by the co. in the colony.
57

Cycle Loan: RS 1700 is paid to the permanent employees who have been in
the continuous service of 2 years, which is to be paid back in34 equal
installment without interest.
Hospital: for management staff only well equipped qualified Doctors is
running hospital
Family Planning Incentive: It is given to the workmen who go for
vasectomy and tubectomy, RS 500 given unto 2 children and RS 400 for
above 2 children. Workman is given a leave of 3 days if his wife goes for an
operation and 6 days leave if he himself goes for an operation.
Blood Donation: Mill pays RS 300 and one day leave to mill employee who
donates blood to any employee.

Common Fund: A fund is generated by the mutual contribution of employee

and employer, loan of a maximum RS 1200 is given for ill health, marrying
children, revocable in 8 equal monthly installment. Funeral help of RS 1550 to
the dependent of employee.
Workers Children Scholorship Scheme: Children of all permanent workers
and clerks are eligible. Scholarships are being paid on merit, min eligibility
being 75% for 5th and 8th and 70% for 10th and 12th. There are 24 scholarships
for 5th standard students and 12 each for rest of the classes. The amount of
scholarship for these classes is respectively RS 50, 75, 100, 125/month.
BILT Professional Scholarships: Two scholarships / year are awarded to
children of employees who have taken admission in Btec and MBBS. The
eligibility is 65% marks in 10+2 and amount of scholarships 600 p.a.
58

CONSTRAINTS

The limitations of the study are many. Some are due to the human nature and some due to the
scarcity of resources. My project was restricted due to the following major limitations;

1) Time Constraints
The major limitation is of time. Though I have 60days to complete my project even
then its quite difficult to gather whole information regarding such a big organization.
I tried my level best to utilize to utilize maximum of it.

2) Respondents Non-Preparedness
The other major point is that the employees of BILT are so busy in performing their
duties that it is very difficult for them to give us time with readiness. It caused great
inconvenience to me but I tried my level best to catch maximum of their attention & interest.
I succeeded to a great level.

59

3) Secrecy limitations
As BILT is the market leader they have to keep their data & things secret to avoid
any kind of exploitation against competitors. I also faced the problem in collecting the
information due to this reason. Some officers refused to provide such information.

RESEARCH METHODOLOGY

Methodology is the method followed while conducting the study of a particular project.
Through this methodology a systematic study is conducted on the basis of which the
hypothesis is produced. In this project my methodology includes following things:
1.) To study the various ingredients of salary viz.Basic , DA, allowances etc as well as the
System & procedures of the same.
2.) To study the taxation aspect of individuals @ BILT, like initial undertaking of savings
from the employees, TDS,e-TDS and other statutory liabilities/deductions
3.) To meet the various people concerned in finance department & establishment section
to know the authorization for various heads of accounts codes.
4.)To observe & work with the employees of the concerned section (establishment) to
learn & check the accuracy of the things told to us or which are found in theory.
60

TIME SCHEDULE

As BILT is a very big organization its very difficult to study the whole system in just few
weeks. So, as per my limitations I divided the whole topic into small different modules and
decided to study each of them separately so that in depth knowledge is achieved. For this I
prepared the following the time schedule for myself.

WEEK

1ST
2ND
3RD
4TH

JOB
Becoming familiar with the working environment of BILT and
concered managerial staff & collecting basic information of the
organization
Knowing the existing system of the managing the payrolls &
taxation of employees.
Going through all the manuals,circulars concerned &
other miscllaneous allowances.
Visiting all the departments concerned and collecting all the
relevant data from the concerned departments.
Seeing that whether the information provided to me match

61

5TH
6TH
7TH
8TH

with things in practical.

Learned the various aspects of my project by practically
working with the staff & Statutory Auditors (PWC).
Processing the data & making analysis of the findings &
making corrections.
Interpreting the results & drawing out the conclusions thereof.

DATA COLLECTION METHOD

1.) Collection of primary data

a) Personal interview method
b) Observation method
a) Personal interview method:
This sort of interview may be in the form of direct personal investigation or it
may be an indirect oral investigation. I practiced both the methods as according to
my convenience. Generally, I followed personal investigation method. It helped me
to get personal consideration of the officers & they also felt free to help in the
study. It was mostly carried out in unstructured form & I asked them queries
regarding different aspects of the study & it was a good learning experience.
For Example;
Like the no. of employees in the different department, the structure of the
department there working system, the problems they are facing & their working
environment.
b) Observation method:
62

Under this method the information is sought by way of investigators own direct
observation without asking from the respondents. The main advantage is that the
biasness is eliminated, if observation is done accurately. To check the relevancy
of the information provided by the officers, this method proved to be useful in this
field .While observing the whole system it helps a lot to understand the things as it
is without any interference of any third party.
2.) Collection of secondary data
Secondary data means data that are already available i.e. they refers to the data
which has already been collected and analyzed by someone else. In todays modern
world the best way to get this data through internet. In case of BILT the whole
organization profile is obtained through its own website(www.bilt.com.). This is the
most convenient place to get the necessary data.
DATA COLLECTION INSTRUMENTS
In this study general data is collected through personal interaction with the officers. This
does not require preparing sophisticated questionnaires or any kind of schedule etc. I have
given preference to personal interaction and asking the questions in unstructured manner.
As according to the convenience of the respondents. As the study covers a wide area covering
the payrolls system, statutory deductions and taxation part of the organization. Thats why
many relevant & different questions are asked from the different concerned personnel.

63

SAMPLING DESIGN
As my project is not the one based on the research rather it was more of learning by observing
and practically working out the things. It was more of procedure oriented and rules based.
Over here at BILT I was working as a Trainee only so I could get the opportunity to do the
voluminous jobs of all kinds within such a short span of weeks.
Still I tried my best to learn the things by selecting their random samples as listed below;
(A) Establishment Part
a)Loans and advances;
64

i) Against P.F- viz. daughter marriage loan, house construction, higher education
loan or Medical Treatment- 15 cases.
ii) Others-viz. vehicle loans 15 cases.
b) Salaries & allied parts- 25 cases

c) Manual, circulars & agreements(establishment related)Manual

-100%

Circulars

-100%(current & latest)

d) P.F. Registers & filling of challans- for the 3 months (May, June & July)

e) EOJ (End of the jobs)& Reconciliation Statements for the month of (May, June &
July)
B) Taxation of employees at BILT;
a) Savings Undertakings/Tentative Savings -5 Cases
b) TDS-from salaries (on the basis of undertaking@(a))
c) Filing of e-TDS- for the month of June07 & July07
d) Assessment at the year end (06-07)- 50 Cases

65

Payrolls & Ingredients Thereof

Pay slip for the month of June'07

Name
Designation
Mr.Damodar
Operator
A/C NO.
Grade Regn.No. Duty
25ABS
0PF
E156 *Gross 11681
Net Pay
04
0663
Rest
5LWP
0FP
6109 *T.Ded.
3897
7790
BAL
ESI
1356825
Basic
2354DA
4236HRA
151Edu.All 1669SWH
130.1HM/HKAL 293.33
OT-D
879PDG
50P.BNS
1941N/S All
84Hlth.All.
38
DEDNS.
HWF
1PF
791I.T
416LIC
555RD
100Adv.Rec.
333
S.G.Club
11C.F.Rec.
9C.F.Loan 250Adv.rec.
50Cop.Thr. 1330DRLF
40
Med.Fund.
12.5
Ytd.Tax.
Leave Bal.

671
CL

5.5PL

82.5SL

5.5
Sign.

Pay slip for the month of June'07

Name
Designation
Mr.S.S.SODHI
Dy.Manager
Grade Regn.No. Duty
23.5ABS
03
3257Rest
4LWP
FPL
2.5BAL
Basic
16310SPL.ALL 2500HRA
DEDNS.
off club
270PF
1957I.T
S.G.Club
11C.F.Rec.
9
Ytd.Tax.
2203
Leave Bal.
CL
3.5PL

A/C NO.
0PF
6784*Gross
22357
Net Pay
0FP
5615 *T.Ded.
4613
17740
ESI
Edu.All
300superann. 2447conv.all
800
LIC
Misc.Rec.
57SL

858RD
178

100Elect.rec
DRLF

31
Sign.

66

1190
40

Pay slip for the month of June'07

Name
Designation
Mr.HARI KHOSLA MANAGER
A/C NO.
Grade Regn.No. Duty
26ABS
0PF
5942*Gross
26338
Net Pay
02
01306
Rest
4LWP
0FP
2917 *T.Ded.
9755
16580
BAL
ESI
Basic
17903SPL.MGT. 5750HRA
Edu.All
superann. 2685conv.all
DEDNS.
VPF
2000PF
2148I.T
3906LIC
RD
100Elect.rec
1173
S.G.Club
11C.F.Rec.
9OFFclub 368Misc.Rec.
DRLF
40
Ytd.Tax.
8825
Leave Bal.
CL
7.5PL
54SL
47
Sign.

Pay slip for the month of June'07

Name
Designation
Mr.AVATAR SINGH OFFIC ASST.
A/C NO.
Grade Regn.No. Duty
26ABS
0PF
5032*Gross 14450
Net Pay
01
01077
Rest
4LWP
0FP
1105 *T.Ded.
3279
11170
BAL
ESI
922569
Basic
5355DA
4236HRA
Edu.All 1669SWH
HM/HKAL 293.3
PDG
50P.BNS 2846N/S All
Hlth.All.
DEDNS.
HWF
1PF
1151I.T
LIC
77.2RD
200Adv.Rec.
333
S.G.Club
11C.F.Rec.
9
Cop.Thr. 1440DRLF
40
Med.Fund.
12.5
Ytd.Tax.
Leave Bal.

2052
CL

10PL

250SL

3.5
Sign.

67

Pay slip for the month of June'07

Name
Designation
Mr.SATYA RAM
CHARGEMAN
A/C NO.
Grade Regn.No. Duty
20ABS
0PF
6495*Gross
08
06420
Rest
4LWP
0FP
3815 *T.Ded.
FPL
6BAL
ESI
1356825
Basic
400.32DA
4236HRA
151Per Pay. 2945Edu.All
OT-D
900PDG
50HM/HKAL 293P.BNS
2313
DEDNS.
HWF
1PF
910PF ADV. 1500ADV REC. 333LIC
S.G.Club
11C.F.Rec.
9ELECT
208C.F.Loan
200B.Adv.
Med.Fund.
12.5DRLF
40
Ytd.Tax.
Leave Bal.

0
CL

10PL

74SL

12995
5372
1669Adhoc
Hlth.All.
541RD
50Cop.Thr.

Net Pay
7670
1409
38
500
1460

50
Sign.

Pay slip for the month of June'07

Name
Designation
Mr.Damodar
Operator
A/C NO.
Grade Regn.No. Duty
25ABS
0PF
E156 *Gross 11681
Net Pay
04
0663
Rest
5LWP
0FP
6109 *T.Ded.
3897
7790
BAL
ESI
1356825
Basic
2354DA
4236HRA
151Edu.All 1669SWH
130.1HM/HKAL 293.3
OT-D
879PDG
50P.BNS
1941N/S All
84Hlth.All.
38
DEDNS.
HWF
1PF
791I.T
416LIC
555RD
100Adv.Rec.
333
S.G.Club
11C.F.Rec.
9C.F.Loan 250Adv.rec.
50Cop.Thr. 1330DRLF
40
Med.Fund.
12.5
Ytd.Tax.
Leave Bal.

671
CL

5.5PL

82.5SL

5.5
Sign.

Pay slip for the month of June'07

Name
Designation
KAWAL DEV
FINISHER
Grade Regn.No. Duty
21ABS

A/C NO.
0PF
5302*Gross 15436

68

Net Pay

05

05142

Rest
FPL

Basic
OT-D
DEDNS.
HWF
S.G.Club
Med.Fund.

2625DA
PDG

Ytd.Tax.
Leave Bal.

1302
CL

4LWP
5BAL
4236SPL.ALL
50

0FP
ESI

*T.Ded.
917095

185Per Pay. 818Edu.All

P.BNS
2648N/S All

1PF
1090PF ADV. 1000I.T
11C.F.Rec.
9ELECT 208.3C.F.Loan
12.5

0.5PL

0LIC
200B.Adv.

8SL

5319

1669Adhoc
1485Hlth.All.

10140

1409HM/HKAL 293
38

1114RD
100Misc.Adv. 333
50Cop.Thr. 1150DRLF
40

6
Sign.

? Mr.Ram Mohan Chopra In Question

Previous YR.2006-2007
Assessment Year 2007-2008

Particulars
Gross Salary Income
Less:
Ded.U/S 80C (GPF)
Taxable Income
Tax Thereon
Add:Surcharge
Add:Edu.Cess @3%
Total Tax Payable

Rs.
Rs.
Rs.
(i)
(ii)
(iii)
200,000.00 500,000.00 1,000,000.00
20,000.00 50,000.00
180,000.00 450,000.00
11,000.00 85,000.00
330.00
2,550.00
11,330.00 87,550.00

100,000.00
900,000.00
220,000.00
6,600.00
226,600.00

Note: Surcharge is applicable @10% only if the total income exceeds Rs.10,00,000/-

69

Previous Year

2006-2007
Computation of tax

Assesment Year 2007-2008

Pariculars
Gross Salary
Less:Deduction U/S 80DD(restricted to Rs.50,000/-)
Taxable Income
Less:Deduction u/s 80 C;
GPF
LIP
Total Deduction U/S 80 C
Total Income
Income Tax Thereon
Add:Surcharge
Add:Education Cess @3%
Total Tax Payable

Amount(Rs.) Amount(Rs.)
320,000.00
50,000.00
270,000.00

Previous Year

Assesment Year 2007-2008

2006-2007
Computation of tax

25,000.00
10,000.00
35,000.00
235,000.00
22,000.00
0
660.00
22,660.00

Pariculars
Amount(Rs.) Amount(Rs.)
Gross Salary
300,000.00
Add:Perquisites in respect of reimbursement of medical
expenses in excess of Rs.15,000/- in view of U/S 17(2)(V)
15,000.00
Taxable Income
315,000.00
Less:Deduction u/s 80 C;
GPF
20,000.00
LIP
20,000.00
Repayment of HBA
25,000.00
Tution fees
30,000.00
Investment in Bonds
20,000.00
Total deductionU/S 80C( ceiling Rs.1,00,000/-)
115,000.00
100,000.00
Total Income
Income Tax Thereon
Add:Surcharge
Add:Education Cess @3%
Total Tax Payable

Previous Year

215,000.00
18,000.00
540.00
18,540.00

2006-2007
Computation of tax

Pariculars
Gross Salary

Assesment Year 2007-2008

Amount(Rs.) Amount(Rs.)
308,000.00

70

(BASIC+DA+HRA+SPL DUTIES ALL)

Less:Exemption of HRA U/S 10(13A)-least of the following;
a) Actual amount of HRA
36,000.00
b) Rent in excess(paid) of 10% of the salary (D.A.)
10,000.00
c) 50% of the salary( including D.A)
130,000.00
Taxable Income
Less:Deduction u/s 80 C;
GPF
15,000.00
LIP
18,000.00
Repayment of HBA
25,000.00
Tution fees
35,450.00
Investment in Bonds(NSC)
25,000.00
Total deductionU/S 80C( ceiling Rs.1,00,000/-)
118,450.00
Total Income
Income Tax Thereon
Add:Surcharge
Add:Education Cess @3%
Total Tax Payable

10,000.00
298,000.00

100,000.00
198,000.00
14,600.00
438.00
15,038.00

*D.A is assumed for the retirement benefits

71

Previous Year

2006-2007
Computation of tax

Assesment Year 2007-2008

Pariculars
Amount(Rs.) Amount(Rs.)
1.) Salary Income
450,750.00
2.) Income from House Property
NIL
Annual Value;
Interest payable on loan u/s 24 (Principle=Rs.1,00,000/-) 30,000.00
(30,000.00)
Gross Total Income
420,750.00
Less:Deduction u/s 80 G;
Donation to CRY(50% of 5500/-)
3,250.00
3,250.00
Less:Deduction u/s 80 C;
GPF
15,060.00
LIP
18,000.00
Investment in Bonds(NSC)
25,000.00
Total deductionU/S 80C( ceiling Rs.1,00,000/-)
58,060.00
58,060.00
Total Income
Income Tax Thereon
Add:Surcharge
Add:Education Cess @3%
Total Tax Payable

359,440.00
57,832.00
1,734.96
59,566.96

*D.A is assumed for the retirement benefits

72

CONCLUSION
In the light of the analysis made and the findings, I can say that the entire establishment
section displays a good blend of manual & modern system
of employee payment & TDS of all sorts viz. contractors, income tax (on
salaries),updating & fillings of various statutory payables etc.
In fact its very hard to run with branch operations dispersed over a the various
parts of the country to account for various kinds of payables and at the same time
to take on manual system with the ERP, thus setting a good example of the well
synchronized system in a complex network of people, equipments & various
govt.machineries.
But still there are some areas to improve upon like unions
resistance to adopt full computerization, adoption of counseling centers for
uneducated workers .Full computerization for example will reduce the work
load and time there on to a great extent.

73

Establishment as a culture should be treated as a service center & the employees itself
are its customers .This section is a supportive to all other sections. So, the employees
in this section must be quiet considerate &
easy going to all other people in the organization. Taking care of these few facts the
SGU can do better .Indeed it needs a great effort to do this.
* Manual is maintained parallel to ERP.
*Employees at establishment are to an extent cordial to visitors/aggrieved
employees/complainants.
* Taxation of individuals is done with 100% accuracy.
*Statutory payables are maintained with full promptness & with 100%
accuracy.
*All employees are pre informed for any new compliance w.r.t.
pays, perks, fillings etc.

74