Summer Internship project

RINGI SYSTEM
&
PROVIDENT FUND

Submitted in partial fulfilment of MBA program

2017-2019
Submitted by

Neha Tripathi

41815103917

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2
 CERTIFICATE

This is to certify that I Neha Tripathi Roll No. 41815103917 have carried out my summer internship in
Maruti Suzuki India Ltd. in the area “RINGI SYSTEM & PROVIDENT FUND”. It is also certified
that the work done by me is original with Due references of sources, and has not been submitted
elsewhere for the award of any diploma or degree.

_____________________
Signature
Neha Tripathi

Date: _________________________
Countersigned by Faculty Mentor

3
ACKNOWLEDGEMENT

I would like to add a few words of appreciation for the people who have been a part of this project
right from its inception. The writing of this project has been one of the significant academic
challenges I have faced and without the support, patience, and guidance of the people involved, this
task would not have been completed.
It gives me immense pleasure in presenting this project report on “RINGI SYSTEM
&PRIVIDENT FUND”. It has been my privilege to have a team of project guide who have
assisted me from the commencement of this project. The success of this project is a result of hard
work, and determination put in by me with the help of my project guide. I hereby take this
opportunity to add a special note of thanks for Mr. Sachin Garg and Mr Mohit Gupta who
undertook to act as my mentor despite their other professional commitments. Their
wisdom, knowledge, and commitment to the highest standards inspired and motivated me. Without
their insight, support, and energy, this project wouldn't have kick-started and neither would have
reached fruitfulness.

The project is dedicated to all those people, who helped me while doing this project.

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TABLE OF CONTENT

S.No. TOPIC PAGE

No.
1. EXECUTIVE SUMMARY 7
2. CH-1: THE AREA OF INTERNSHIP AND LEARNING OBJECTIVES
1.1:- Introduction
1.2:-Study Of Provident Fund
1.3:-Types Of Provident Fund
1.4:- Study On Ringi System
1.5:-Process Of Ringi System In Maruti
1.6:- Research Methodology

CH-2: PROFILE OF THE ORGANIZATION

3. 2.1 Company Profile
2.2:-Company History And Background
2.3:- Organization
2.4:-Vision
2.5:-Mission
2.6:- Vendors Of Maruti Suzuki Pvt Ltd
2.7:-Why Do Customer Likes Maruti?
2.8:-Swot Analysis
2.9:- Major Competitors
2.10:- 4 P’s Of Company

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4. CH-3. CH-3. JOB DESCRIPTION AND FUNCTIONAL PROFILE
3.1:- My job description
3.2:- Tasks assigned to me

5. CH-4. LEARNING EXPERIENCE AND INSIGHTS GAINED

4.1 Provident Fund Introduction
4.2 Scope & Extent
4.3 Who is Applicable For Employee Provident Fund ?
4.4 The EPF Interest Rate
4.5 Withdrawal Before Retirement
4.6 Withdrawal After Retirement.
4.7:-Tax Treatment Of Provident Funds
4.8:- Benefits
4.9:- Ringi System

6. CH-5. RECOMMENDATIONS AND CONCLUSION

7. CH-6 :- BIBLIOGRAPHY

6
EXECUTIVE SUMMARY

Provident fund is a term for pension fund. It provides employee with lump sum payment at the
time of exit from the organisation so it differs from pension fund which have both elements of
lump sum as well monthly pension payments. As far differences from Gratuity fund is
concerned although both involve lump sum payment at employee exit from the organisation
but one is defined contribution fund while other is Defined benefit fund respectively.

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on
4 March 1952. Six industries namely Cigarettes, Electrical, mechanical or general engineering
products, Iron and Steel, Paper and Textiles (made wholly or in part of cotton, wool or jute or
silk, whether natural or artificial) came under implementation of the Act wef 01-Nov-1952 The
organisation is administered by a Central Board of Trustees, composed of representatives of
the Government of India, State governments, Employers and Employees. The board is chaired
by the Union Labour Minister of India. The Chief Executive of the EPFO, the Central
Provident Fund Commissioner, reports to the Union Labour Minister through the Secretary of
Labour and Employment in the ministry. The headquarters of the organisation is in New Delhi.

The Constitution of India under "Directive Principles of State Policy" provides that the State
shall within the limits of its economic capacity make effective provision for securing the right
to work, to education and to public assistance in cases of unemployment, old-age, sickness &
disablement and undeserved want. The EPF & MP Act, 1952 was enacted by the Parliament of
India and came into force with effect from 4 March 1952 as part of a series of legislative
interventions made in this direction. Presently, the following three schemes are in operation
under the Act:

Employees' Provident Fund Scheme, 1952

Employees' Deposit Linked Insurance Scheme, 1976

Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1997

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Ringi:-
The word Ringi in reality consists of two parts, the first being of “Rin” stands for submitting a
proposal to one’s supervisor and receiving their approval, the second “Gi” meaning
deliberations and decisions. The Ringi system is a traditional way of managerial decision-
making in Japan. The system involves circulating proposals to all managers in the firm who are
affected by an impending decision. The Ringi system goes through four stages: a. Proposal, b.
Circulation, c. Approval, d. Record. Proposals are generally initiated by middle managers,
though sometimes they may also come from top executives. In a “Ringi” system the ideas and
plans are discussed, developed, and refined in the informal meetings among the employees.
This activity of informal discussions is a kind of pre-meeting stage which is called as
“Nemawashi”. The key point of “Nemawashi” activity is to explain the details of an idea that is
being proposed to promote for a decision to be made. This “Nemawashi” activity of “Ringi”
system acts as an essential means of knitting together as many people as possible into the vital
function of the decision making process. The procedure of “Ringi” can be described in the
following way: it usually starts at the lower level of management, even if the initiator is a
higher-level manager, however, in almost every case he or she will give the idea to his or her
subordinate(s) and let him (them) propose it. There are at least three good reasons for that.
First, the first-line managers, as it is believed, are closer to the problem, and because of that,
they have more information about it. Second, it has to start at the managerial level because
decision-making is a typical managerial activity. Third, this is the way how the lower level
managers can demonstrate their managerial skills to their superiors.

8
CHAPTER 1
THE AREA OF INTERNSHIP AND LEARNING OBJECTIVES

9
1.1 INTRODUCTION:-

Provident Fund:-

Employee’s Provident Fund is a benefit scheme for salaried individuals for their old age after their
retirement. It is not only tax saving instrument but it also provides security and stability to the
employee and his family as well. This scheme is facilitated in MSIL (Maruti Suzuki India Limited)
for its employees.

Under Employee’s Provident Fund and Miscellaneous provisions or PF act employees are
required to contribute 12% of their salaries towards Provident Fund (PF) with equal
contribution by their employers.

A joint Venture agreement was signed between Suzuki Motor Company of Japan and Maruti Udyog
Limited. As it is collaborated with a Japanese Motor Company it uses some Japanese terms and
one of them is RINGI.

RINGI:-

Ringi is a Japanese term which means “Request for Approval” abbreviated as RFA.

It is the mechanism by which approval related decisions are carried out in Maruti Suzuki India
Limited. The process and mechanism is described further in report.

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 1.2:- STUDY ON PROVIDENT FUND

Employee’s Provident Fund (EPF) is a benefit scheme for salaried individuals for their old age after
their retirement. It is not only tax saving instrument but it also provides security and stability to
the employee and his family as well.

Under Employee’s Provident Fund and Miscellaneous provisions act 1952 or PF act employees are
required to contribute 12% of their salaries towards Provident Fund (PF) with equal
contribution by their employers.

In the case of employee not being International Worker (IW) (foreign employees coming to India or
Indian going abroad for work) subject to conditions, it is mandatory for employer to contribute
towards PF if the number of employees in his firm is 20 or more having salary upto Rs 6,500
monthly. However, employees earning monthly salary more then Rs 6,500 can voluntarily
choose to contribute to the scheme.

✓ Salary for the purpose of PF: Salary for the purpose of PF would include basic wages,
dearness allowance (including cash value for food concession) and retaining allowance.

Basic wages means all emoluments earned by an employee while on duty/ leave/ holiday,
according to the terms of the employment or which are paid or payable in cash. This does not
include house-rent allowance, bonus, overtime allowance, commission or any other such
allowance.
✓ Contribution of employer for PF: Statutory rate of contribution is 12% (10% for spinning
sector and other specific industry) of the salary towards PF and it is tax-free under income
tax act. Out of 12% of the employer’s contribution 8.33% is required to be remitted towards
pension fund and 0.5% towards Employee’s Deposit Linked Insurance Scheme (EDLIS)’
1976.

✓ Contribution of employee towards PF: An employee can claim deduction upto Rs 1 lakh
per annum under section 80C of Income Tax Act 1961, on his contribution towards PF from
his taxable income.
Contribution of employee should be equal to the contribution payable by the employer.
However, the employee may at his option contribute an amount more than 12% subject to
condition that the employer shall not be under an obligation to contribute over and above his
contribution payable under PF act.

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✓Interest on PF: Employees earn interest on both contribution done on his own and
Contribution made by his employer and interest earned up to 9.5% is exempted from tax.

✓Transfer of PF: If employee changes his employment then employee is required to change
his PF balance under new employer’s account. Such transfer does not entail any tax
implication on the employee.

✓Withdrawal of PF: A member of PF will not be taxed on the withdrawal of PF in conditions

such as if he retires after the age of 58 years, if he retires due to permanent and total
incapacity for work due to bodily or mental infirmity, termination of service in the case of
mass or individual retrenchment, after two months of resignation in the case of no
employment.
✓Taxability in the case of premature withdrawal: If employee had rendered less than five
years of continuous service, the employer’s contribution and interest, thereon will be fully
taxable as salary income in the hands of the individual. Employee’s contribution will be
taxable to the extent of deduction claimed under section 80C, if any, under Income Tax Act
1961 and interest earned on employee’s total contribution would be taxable as income from
other sources in the hand of the employee.

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1.3- Types of Provident Fund:-

✓ Statutory provident funds: - Statutory Provident Funds are applicable to government

bodies, universities etc. They are also known as Government Provident Funds. So
employees who work for these institutions would be eligible to subscribe to them.

✓ Recognised provident fund:- Most of individuals working fall under this type of
provident fund. This fund is applicable to an organisation which employs 20 or more employees. It's
important to note that all Recognised Provident Fund Schemes must be approved by The
Commissioner of Income Tax.

✓ Unrecognised Provident Fund:-In an Unrecognised Provident Fund the employer

and employees in an establishment together start the provident fund. However, the
same may not be approved by The Commissioner of Income Tax. Since they are not
recognised, they would have a different tax treatment.

✓ Public Provident Fund:-In a public Provident Fund, individuals are free to contribute
an amount not exceeding Rs 70,000 per year by opening an account at a post office or
banks like ICICI Bank and State Bank of India. PPF can serve as an excellent
retirement planning tool, for those who do not come under any pension scheme. The
PPF offers tax benefit under section 8OC and the interest earned is also exempt from
tax. This has become an extremely popular government controlled scheme, which has
duration of 15 years with certain lock-in procedures to be followed.

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1.4:- STUDY ON RINGI SYSTEM

The traditional decision-making process in Japanese firms is referred to as the “Ringi” system.
The word Ringi in reality consists of two parts, the first being of “Rin” stands for submitting a
proposal to one’s supervisor and receiving their approval, the second “Gi” meaning
deliberations and decisions. The Ringi system is a traditional way of managerial decision-
making in Japan. The system involves circulating proposals to all managers in the firm who are
affected by an impending decision. The Ringi system goes through four stages:

a. Proposal, b. Circulation, c. Approval, d. Record.

Proposals are generally initiated by middle managers, though sometimes they may also come
from top executives.

In a “Ringi” system the ideas and plans are discussed, developed, and refined in the informal
meetings among the employees. This activity of informal discussions is a kind of pre-meeting
stage which is called as “Nemawashi”. The key point of “Nemawashi” activity is to explain the
details of an idea that is being proposed to promote for a decision to be made. This
“Nemawashi” activity of “Ringi” system acts as an essential means of knitting together as
many people as possible into the vital function of the decision making process. The procedure
of “Ringi” can be described in the following way: it usually starts at the lower level of
management, even if the initiator is a higher-level manager, however, in almost every case
he or she will give the idea to his or her subordinate(s) and let him (them) propose it. There are
at least three good reasons for that. First, the first-line managers, as it is believed, are closer to
the problem, and because of that, they have more information about it. Second, it has to start
at the managerial level because decision-making is a typical managerial activity. Third, this
is the way how the lower level managers can demonstrate their managerial skills to their
superiors.

14
1.5:- Process of Ringi System in Maruti:-

1. Purchaser makes a purchase order number in ERP based on proper Ringi Approval.
2. Material received by security at the Gate of MSIL.
3. Security in charge generates gate entry number after physical verification of material
based of invoice no.
4. Purchaser makes receipt in system based on invoice no. and sent it to the manger for
approval.
5. Manager generates a payment advice note.

1.6:- RESEARCH METHODOLOGY:-

Data collection:

The study is based on secondary data and examines the mechanism of Provident fund and
Ringi system.

Secondary data: Secondary data has been collected from various sources such as:

• Books of the company.

• Website
• Company website.

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CHAPTER 2
PROFILE OF THE ORGANIZATION

16
2.1:- COMPANY PROFILE:-

MARUTI SUZUKI INDIA LIMITED (MSIL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the lack of
an efficient public transport system. It was established with the objectives of - modernizing the
Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and
producing indigenous utility cars for the growing needs of the Indian population. A license and
a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983,
by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as
well as Japanese management practices. Suzuki was preferred for the joint venture because of
its track record in manufacturing and selling small cars all over the world. There was an option
in the agreement to raise Suzuki’s equity to 40%, which it exercised in 1987. Five years later,
in 1992, Suzuki further increased its equity to 50% turning Maruti into a non-government
organization managed on the lines of Japanese management practices.

Maruti created history by going into production in a record 13 months. Maruti is the highest
volume car manufacturer in Asia, outside Japan and Korea, having produced over 5 million
vehicles by May 2005. Maruti is one of the most successful automobile joint ventures, and has
made profits every year since inception till 2000-01. In 2000-01, although Maruti generated
operating profits on an income of Rs 92.5 billion, high depreciation on new model launches
resulted in a book loss.

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2.2:-COMPANY HISTORY AND BACKGROUND

The Evolution

Maruti’s history of evolution can be examined in four phases: two phases during pre-
liberalization period (1983-86, 1986-1992) and two phases during post-liberalization period (1992-
97, 1997-2002), followed by the full privatization of Maruti in June 2003 with the launch of an
initial public offering (IPO).The first phase started when Maruti rolled out its first car in December
1983. During the initial years Maruti had 883 employees, a capital of Rs. 607 million and profit of
Rs. 17 million without any tax obligation. From such a modest start the company
in just about a decade (beginning of second phase in 1992) had turned itself into an automobile giant
capturing about 80% of the market share in India. Employees grew to 2000 (end of first phase
1986), 3900 (end of second phase 1992) and 5700 in 1999. The profit after tax increased from Rs
18.67 mn in 1984 to Rs. 6854.54 mn in 1998 but started declining during 1997-2001.

During the pre-liberalization period (1983-1992) a major source of Maruti’s strength was the
wholehearted willingness of the Government of India to subscribe to Suzuki’s technology and the
principles and practices of Japanese management. Large number of Indian managers,
supervisors and workers were regularly sent to the Suzuki plants in Japan for training. Batches of
Japanese personnel came over to Maruti to train, supervise and manage. Maruti’s style of
management was essentially to follow Japanese management practices.

The Path to Success for Maruti was as follows:

(a) Teamwork and recognition that each employee’s future growth and prosperity is totally
dependent on the company’s growth and prosperity (b) strict work discipline for individuals and the
organization (c) constant efforts to increase the productivity of labour and capital (d) steady
improvements in quality and reduction in costs (e) customer orientation (f) long-term objectives
and policies with the confidence to realize the goals (g) respect of law, ethics and human beings.
The “path to success” translated into practices that Maruti’s culture approximated from the
Japanese management practices.

Maruti adopted the norm of wearing a uniform of the same color and quality of the
fabric for all its employees thus giving an identity. All the employees ate in the same
canteen. They commuted in the same buses without any discrimination in seating
arrangements. Employee reported early in shifts so that there were no time loss in-
between shifts. Attendance approximated around 94-95%. The plant had an open

18
office system and practiced on-the-job training, quality circles, kaizen activities,
teamwork and job- rotation. Near-total transparency was introduced in the decision
making process. There were laid-down norms, principles and
procedures for group decision making. These practices were unheard of in other
Indian organizations but they worked well in Maruti. During the pre- liberalization
period the focus was solely on production. Employees were handsomely rewarded with
increasing bonus as Maruti produced more and sold more in a seller’s market
commanding an almost monopoly situation.

2.3:- Organization

• Chairman- Mr. R. C. Bhargava

• Managing Director and CEO- Mr. Shinzo Nakanishi

• Directors- Mr. Manvinder Singh Banga , Mr. Amal Ganguli

• Director and Managing Executive Officer (Production) - Mr. Tsuneo Ohashi

Over more than 24000 employees work under MSIL.

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2.4:- Vision
Visions of any company are those values on which company works. As the MUL is started by
Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on
the other hand Suzuki’s participation ensures not only need of the profit, but of the need of
maximum profit. The only way for this Nora’s dilemma of selecting principals for company’s
working vision ,was to maximize profit and reducing cost by maximizing output and sales
Hence MUL declared its Vision as-
“The Leader in the Indian Automobile Industry, Creating Customer Delight1 and Shareholder's
Wealth2; eventually become a pride of India”
Customer Delight1 is making sure that performance, after sales service and customer support
are best and beyond expectation. Shareholder’s wealth2 is the prime concern for running
business smoothly.MUL knows this and understands “customer is king”, he can change the
fortune of any company, hence goes company’s brand line: COUNT ON US!

2.5:- Mission
Mission is the statement of an organization’s purpose, what it want to accomplish in the larger
environment and its goals which are specific, realistic and motivating. Missions are described
over visions and visions demand certain objectives. The main objectives/Missions of MUL
are:
- Modernization of the Indian Automobile Industry.
- Developing cars faster and selling them for less.
- Production of fuel-efficient vehicles to conserve scarce resources.
- Production of large number of motor vehicles which was necessary for economic growth.
- Market Penetration, Market Development Similarly Product Development and
Diversification.
- Partner relationship management, Value chain, Value delivery network.

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2.6:- VENDORS OF MARUTI SUZUKI PVT LTD

• Maruti Suzuki has 200-odd vendors

•Bimetal Bearings Ltd., Coimbatore - They manufacture Engine Bearings, Bushes
and Thrust Washers.
•Amalgamation Valeo Clutch Ltd., Chennai - Leading manufacturer of Clutch
Assemblies in India for the new generation vehicles.
•I.P. Repco Ltd., Chennai -A member of Amalgamations Group. Manufacturing
Flywheel Ring Gears for entire range of vehicle
•Kalyani Brakes Ltd, Pune -Manufacturers of complete brake systems for
automotive applications
• Lomax Industries Ltd -Biggest Manufacturers of Automotive Lights in India
• Pricol Ltd, Coimbatore -Automotive Instruments & Speedometer Cables In India.
• Fenner India Ltd, Chennai -Largest manufacturer of Belts and Oil Seals in India

2.7:-Why does customer likes Maruti?

➢Maruti ranked highest in customer satisfaction with after-sales service. ✓

True value

✓ Driving school

✓ Authorized service - station

✓ Insurance (2OO2)

✓ Genuine accessories

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2.8:-SWOT ANALYSIS:-

Strengths

• Distributor network brand loyalty, Japan technology and Service distribution

• After sales service

• Cost-effective

• Low maintenance

• Indian middle-class

• Low price,

• High fuel efficiency,

Weaknesses

• Low Resale value

• Low engine capacity.

Opportunity

• High end car segment

• Overseas market

• Improve handling

• Add extra features to small segment cars

• Attracting youth

• Export small cars

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Threats

• Numbers of new Technology driven players and manufactures are in market.

• Govt .reducing support and cutting down the Gas supply quota.
(TOI, New Delhi,11th june,17).
• Fuel price

• Foreign brands

• Price high of raw material

• Small car competition

2.9:- Major Competitors

• Tata Motors
• Hyundai
• Ford
• General Motors
• Honda

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2.10:- 4 P’S OF COMPANY

1. PRODUCT

There are number of products (models) Of Maruti are in the market. Some of the
models are given below:-

M - 800, Zen, Esteem, Omni, Alto, Gypsy, Wagon r, Grand Vitara etc. These products
are divided on the basis of product quality, variety, design, features etc.

They define different factors:

• The quality of product.

• The product variety from different categories.
• The size of the car according to current or future market conditions.
• The car features to the customer
• Like, car looking very good.

2. PRICE

The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti - 800 is the
lowest price car of this company. Alto, Omni, Wagon r, are also the low price car of the
company, Zen & Esteem are the mid price car of the company. But Grand Vitara is the
high price model of the company. The price of car is decided according to its product
Varity, quality, design etc.

3. Place

The place of the car is in the whole world. Maruti Udyog Limited decides its
distribution channels for selling car, like use some time one level or some time two
level marketing channels. They decide areas in which they deal with customers. They
show the permanent location for selling the car. They provide the many useful
inventories. They define the transport facility of the company for company to market and
market to consumers. Many showroom of Maruti Udyog limited is in our India.

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4. Promotion

Main promotion of car is done by the Advertising. The advertising is mainly done in
the form of different T.V. channels, different newspaper, holdings etc. Now days the
main promotion is done by the brand ambassadors such as film stars, celebrities,
sportsmen, etc. And in this case they decide his actual or required sales forces for
selling its car. And they maintain customer relationship. And they do direct marketing.

25
CHAPTER 3
JOB DESCRIPTION AND FUNCTIONAL PROFILE

26
3.1 MY JOB DESCRIPTION AND FUNCTIONAL PROFILE INCLUDE:
• To assist C.A in his work.
• To check the relevant documents related to vendor payment:-
a. Payment advice from ERP.
b. Original invoice copy of vendor.
c. Ringi
d. Gate entry no.
e. PSI ESI clearance from HR for service bills.
• To provide advance payment/ loan to the employees to meet the hospital bills.
• To validate the medical bills in ERP.
• To sent validated medical bills to manger for final approval.
• Work with CFP department.
• To check the relevant documents related to PF withdrawal:-
a. Form 19.
b. Declaration of unemployment for 3 months.
c. Bank proof (copy of passbook)
d. Identity proof (Aadhar card).
e. Relieving letter.

27
1.2Tasks assigned to me:

• To collect the data of temporary workers (T.W) and Permanent Employees.

• For vendor payment:-
a. Proper Ringi approval
b. Type of nature selected (Capital or Revenue )
c. Invoice.
d. Benefit of taxes (Excise, service tax, and vat)
e. Assurance of C form (For CST ) and D1 form(For VAT)
f. Initiate and accounting of payment advice in ERP.
g. Deduction of TDS on service bills.
h. Sent vouchers to manager for final approval.
i. Run the payment batches in ERP for approved voucher
j.Upload batch file at bank website of Maruti for transfer payment to the vendor.
• I checked the medical bills.
• I initiated medical bills of permanent employees and wage payment of temporary
Workers.
• I initiated the bills related to reimburse the employees.
• To collect the data from the doctors related to medical bills.
• I validated and accounting of the bills.
• After accounting of bills i sent them to the manager for final approval.
• I checked the vouchers of day to Day expenses related with the company work like
Stationary.

28
CHAPTER 4
LEARNING EXPERIENCE AND INSIGHTS GAINED

29
 4.1 Employee Provident Fund (EPF):-

Employee Provident Fund (EPF) is one of the main platforms of savings in India for nearly
all people working in Government, Public or Private sector Organizations. It is implemented by
the Employees Provident Fund Organization (EPFO) of India.

It is a mandatory, tax-qualified, defined contribution retrial benefit plan wherein equal

contribution at the specified rate is made by the employer and the employee and the same is
payable in lump sum on retirement.

4.2 SCOPE & EXTENT

• Employees’ Provident Funds Scheme, 1952
• Employees’ Deposit-Linked Insurance Scheme, 1976 (EDLI) and Employees’
Pension Scheme, 1995 (EPS) (Earlier the Employees’ Family Pension Scheme,
1971)

4.3 WHO IS APPLICABLE FOR EMPLOYEE PROVIDENT FUND?

The employee provident fund act 1952 implies to the whole of India except the state of
Jammu & Kashmir (section 2).This act implies (section 3) to:
Every establishment which is a factory engaged in any industry specified in schedule I
& in which 20 or more persons employed; Any establishment employing 20 or more
persons of such establishments which central government may, by notification in the
official gazette specify.

The employee provident fund act 1952 implies to the whole of India except the state of
Jammu & Kashmir (section 2).This act implies (section 3) to:

Every establishment which is a factory engaged in any industry specified in schedule I

& in which 20 or more persons employed;

Any establishment employing 20 or more persons of such establishments which central

government may, by notification in the official gazette specify.

30
 FOR NEW ENTRANTS

✓An employee is eligible for membership from the day he joins the company who has
enrolled for EPF Scheme

✓If an Employer has equal to or more than 20 employees, it is mandatory for him or to
join the Employee Provident Fund Scheme.

✓ If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join
the Scheme(s) with the consent of employer.

✓ Declare previous employment details, if any, in Form No. 11 to the employer.

✓ On becoming a member of the Schemes file details in Form No. 2 (family particulars/
nominations) through the employer.

✓ Rate of contribution payable by a member shall be @ 12% of his emoluments.

✓ A member can contribute statutorily over and above the prescribed rate.

FOR EXISTING ENTRANTS

➢Enrolment:

➢ Any change in the family status, such as, -

✓ Marriage of the member.

✓ Additions /deletion in the family.

✓ Legal adoption of the children.

✓ Change of nominee is to be filed in Form No. 2 through the employer.

✓In the event the member is holding a Scheme Certificate (under EPS, 95), he
should surrender the same to the concerned EPFO office, through his employer.

✓A member is entitled to various benefits & facilities such as withdrawals,

advances, pensions, death insurance etc.

31
 4.4 THE EPF INTEREST RATE

The EPF interest rate of India is decided by the central government with the consultation of
Central Board of trustees. In the past several decades, the interest rate has ranged from 8-12 %
of the balances maintained in the fund. The EPF interest rate notification is available on the
official website of EPF India on an annual basis. The same is communicated through major
dailies in all cities .

4.5 WITHDRAWL BEFORE RETIREMENT

You can withdraw up to 90% of the amount in you EPF account after you attain the age of 54
years, or within one year before actual retirement on superannuation whichever is later. Claim
application in form 19 has to be submitted to the concerned Provident Fund Office.

For other cases such as

✓ Shifting of Jobs:-At such times, the PF balance could be transferred from one employer to
another. The existing balance would continue to stay with fresh contributions made by the
new employer.

✓ Quitting of Job:-PF could be withdrawn, if you quit your job and provide a declaration that
you do not intend to work for the next six month.

4.6WITHDRAWL AFTER RETIREMENT:-

You can withdraw full amount in the fund on retirement from service after 55 years of age.
You can also withdraw the full amount due to any of the following occurrences:

✓ If you have not attained the age of 55 year at the time of termination of service.
✓ If you retired on account of permanent and total bodily or mental disablement
✓ If you migrated from India for permanent settlement abroad or for taking employment
abroad.
✓ In the case of mass or individual retrenchment.

32
4.7:-Tax Treatment of Provident Funds

Employee receives certain retirement’s benefits/termination benefits on the time of retirement

like receipts from provident funds, gratuities, pension, leave encashment etc. However, most of
such receipts have been either wholly or partly exempted from tax under Section 10. In this
article we’ll discuss about the tax treatment of payment to and from provident funds

Section 10(11) and 10(12) of the Act deal with exemption on payments from provident funds,
while section 80C of the act deals with allowance of deductions on contributions to provident
funds. The following are the types of provident funds.

Statutory provident fund

Statutory provident fund is set up under the provisions of the Provident Funds Act, 1925. This
fund is maintained by Government and Semi-Government organizations, local authorities,
railways, universities and recognized educational institutions.

Recognized Provident Fund

Recognised Provident fund is one which is recognized by the commissioner of income -tax is
accordance with the rules contained in Part A of the Fourth Schedule to the Income Tax Act. It
includes a provident fund established under a scheme framed under the Employees Provident
Funds Act, 1952. This fund is maintained by private sector organization.

Unrecognized provident fund

Unrecognized provident fund is the provident fund which is neither a statutory provident fund
nor a recognized fund and which is also a public provident fund.

Public provident fund

Payment from Public Provident Fund is exempt from tax as per notification No. 2430 dated 02-
07-1968). See all about Public Provide Fund article.

33
Summarized table showing tax treatment of provident funds

Diffrencial Statutory Recognised Provident Unrecognised Public

factors Provident Fund Fund Provident Fund Provident
Fund
Employer’s Exempt from tax Exempt up to 12 per Exempt from tax Employer does
contribution to cent of salary. Excess not contribute
provident fund of employer’s
contribution over 12
per cent of salary is
taxable

Deduction u/s Available Available Not available Available

80C employee’s
contribution

Interest credited Exempt from tax Exempt from tax if Exempt from tax Exempt from
to provident fund rate of interest does Tax
not exceed the
notified rate of
interest (i.e. 9.5%).
Excess of interest over
the notified rate is,
however, taxable
Lump sum Exempt from tax Exempt from tax in See Notes No.2 Exempt from
payment at the some cases when not tax
time of exempt total income
retirement or of employee will be
termination of computed as if
service provident fund is an
unrecognized fund
from the beginning

34
 Notes:

1) Salary means basic pay, commission and dearness allowance and excludes all other
allowances and perquisites.

2) Payment received in respect of employee’s own contribution is exempt from tax and interest
on employee’s contribution is taxable under the head ‘Income from other sources. Balance is
taxable under the head salaries. However, relief can be claimed.
3) Under section 10(12), the accumulated balance due to an employee participating in a
recognised provident fund is exempt to the extent indicated under Rule 8 of Part A of the
Fourth Schedule to the Act. This rule specifies that to avail the exemption.

▪ The employee should have rendered continuous service with his employer for 5 years or
more; or
▪ If he has not rendered such service, it should have been terminated by reasons beyond his
control; or
▪ If he has found another employment, the balance due to him should have been transferred
to his account in the recognised provident fund of the new employer.
In so far as the employer’s annual contribution to such a fund is concerned, it shall be deemed to
be income and taxed under the head “salaries” in the hands of the employee.

▪ if it exceeds 10% of the salary; or

▪ If interest paid on the balance to the credit of the employee exceeds the rate notified by the
Central Government. The Government had fixed the rate of interest at 12% w.e.f. 1.4.1986
for the purpose of this provision.

The employee’s own contributions to the extent of one-fifth of salary are eligible for tax relief
u/s 88 with effect from the assessment year 1991-92 without any limit as to the amount of
contribution. For these purposes (both for purposes of the employee’s as well as the employer’s
contribution), the term ‘salary’ includes dearness allowance if the conditions of service so
provide but excludes all other allowances and perquisites.

35
4.8 Benefits of Employee Provident Fund:-

Employees Covered Enjoy A Benefit Of Social Security In The Form Of An Attachable And Un -
withdraw able (Except I Severely Restricted Circumstances Like Buying House, Marriage, Education
Etc.). Financial Nest Egg To Which Employees And Employers Contribute Equally Throughout The
Covered Persons Employment.

This Sum Is Payable Normally On Retirement or Death. Other Benefits Include Employees Pension
Scheme And Employees Deposited Linked Insurance Scheme

4.9 Ringi system:-

1. Terminology:

I. Ringi:
Ringi is a written communication to seek management approval for a decision.

II. Initiating Authority:

An official who initiates the approval note is called the initiating authority.

III. Joint Initiates Authority:

The joint initiating authority is an official of the department other than the
department of the initiating authority who is jointly involved in the
implementation of the decision.

IV. Checking Authority:

The Checking Authority shall check the rationality of the approval note, if
required, can ask for further information, give instructions for re- examination
and return the approval note to the initiating authority.

V. Final approving authority:

Official /s that approve the Ringi / approval note is called the final approving
authority.

36
 VI. Ringi Reference Number:
It is a unique number assigned to a Ringi with which the Ringi can be tracked /
important information of a Ringi can be fetched.

2. Delegation of authority in the organization:

Authority in the organization is delegated at three levels and accordingly the Ringi’s have three
levels as mentioned in the table below:

Level of Final approving authorities

Approval
1st Level MD,MD+JMD

2nd level Corresponding vertical / functional head ( i.e., Director , EQs )

3rd level Corresponding divisional head (I.e., DVM / DDVM).

This table is revised with every change in organization structure.

A rule to remember: there may be some time difference between the change in organization
structure and the revision in table of Ringi approving authority. For other cases where there is a
change in the official (s) designated as final approving authority or change in the structure of a
function , next (higher) level of Ringi needs to be taken till the release of revised table of
approving authority.

37
3 Decision matrixes:

A decision matrix a kind of rule book to select appropriate level of Ringi. It contains the
following information:

• Approval items for all functions

• Level of Ringi required for a particular approval item based on materiality

The decision matrix contains various tables for different nature of activities. The following
table depicts the contents of the decision matrix.

S.No Table Function /nature of activity

1 Table A policy / plan approvals

2 Table B procurement of materials

3 Table C procurement of capital items

4 Table D marketing & sales , spares and service

5 Table E Technical matters ( Engineering & QA)

6 Table F Financial matters

7 Table G Information technology

8 Table H Human resource

9 Table I Miscellaneous and common items

10 Table J Specific to department head

38
4. Ringi Type:- Based on the nature of decision a Ringi is classified as follows,

• Policy
• Implementation

5. Ringi creation:-A Ringi can be created in two ways,

• Manual Ringi.
• Electronic Ringi (system based).

6. Ringi Storage: - A Ringi is a confidential and be used for internal purpose only. If a copy
is required, permission shall be obtained from the initiating authority. Approved Ringi needs to
be stored for future reference.

Ringi storage guidelines are mentioned below:

•1st level approval of special importance : Permanent storage

• Other approvals : 8 years.

39
7. Ringi writing:

The content of the Ringi should be crisp and clear. It should be simple, logical and reasonable.
Too much explanation is not desirable.

Top management desires to have following elements in a Ringi. A Ringi initiator should keep
in mind this aspect while preparing Ringis. Also, the divisional head should see the Ringi’s of
their respective division to have these elements before putting up to top management.

Amount
Executive summary:

Background / what is the necessity of this decision?-

What decision is being taken?

What all possible options considered and why is the option selected the best option?

Decision taken by:

Financial Impact of the decision & business benefit

40
8. General Guidelines:-

8.1 Dos:

• Always adhere to the Ringi rules mentioned in the document provided in the link 3.1
• Follow the format of the Ringi as mentioned.
• The main Ringi note should have all the main highlights (not in the annexure) of the
proposal.

• The highlights should be in numbers and in quantifiable form.

• If space is not enough on first page should be used for mentioning major highlights, so
that the approver can get the complete picture form first two pages.

• A decision is to be implemented only after the necessary approvals. the vendor name to
which the payment to be made must be mentioned in Ringi.

8.2 Don'ts:
• No, overwriting or manual corrections to be made on a Ringi
• No deviation to be made from the set Ringi rules for taking an approval.
• The approval must be sought for the complete activity and shall not be broken in parts
for taking lower of approvals.

• There should not be any mismatch between the amount approved in physical Ringi and
the amount entered in Ringi system.

• Don't misplace the Ringi and it is the responsibility of the initiator / department head to
store the approved Ringi as per the time line mentioned.

41
Approval Table:-

TABLE - 1 : Internal Approval related to manpower, employment &

placement etc.
Approving Authority
APPROVAL ITEM 1st Level 2nd Level 3rd Level
1 Recruitment, placement and Transfer of
0 _ _
Personnel
2 IDPMs to Managers upto L-12
Acceptance of Resignation & Div. including
Termination of Service of Personnel Manager GETs
3 0 _ _
Promotion of Personnel
4
0 _ _
Organization structure / change
5 Increase in manpower through More than Up to Rs. 2
engagement of apprentices, contract or Rs. 2 Million
casual labour [ HR shall be the checking Million _
authority and all such ringis shall be
routed through EO [HR]

42
TABLE - 2 : Internal Approval for Procurement of Capital Items
Approving Authority
APPROVAL ITEM 1st Level 2nd Level 3rd Level
1 Approval of Budget 0 _ _
2* Approval of project / Procurement of More than More than Rs Up to Rs. 0.5
capital items Rs. 2 0.5 Million and Million
Million up to Rs. 2
Million
3** Source Selection and placement of More than More than Rs up to Rs 0.5
Orders. Rs. 2 0.5 Million and Million **
Million up to Rs. 2
Million
4 Re-appropriation of capital budget More than Up to Rs. 2 Up to Rs.
Rs. 2 Million 50,000
Million
5 Re-appropriation from capital budget More than Up to Rs. 0.5
to Revenue budget Rs. 0.5 Million
Million _

43
TABLE -3 : Internal Approval For Procurement of Material - Indingenous
indirect consumables, maintenance spare, tools and miscellaneous items

Approving Authority
1st
APPROVAL ITEM Level 2nd Level 3rd Level
1*

Floating purchase enquiry _ _ 0

2*

Approval for placement of orders Annual Rate Annual Rate

Contract / Contract /
Purchase Purchase value
_
Value more up to Rs. 1.5
than Rs. 1.5 Million
Million

44
3* Approval for price increase- For Purchase
value up to Rs.
0.5 Million

4** Approval for price change due to

statutory duties, taxes and exchange
variation etc. _ _ 0

45
 TABLE - I: Internal Approval of Miscellaneous & Common items

Approving Authority

APPROVAL ITEM 1st Level 2nd Level 3rd Level

1 Revenue Expenses, which are not More than up to Rs. 1
Covered elsewhere in this Rs. 1 Million Million in
Delegation of powers, within the in each case each case
Approved budget and company
Policies

2 Foreign travel including any _ _

Additional contingency allowance.

3 Relaxation in travelling rules

_ _ 0

4 Obtaining insurance policies _ More than Up to Rs. 10

Involving annual premium Rs. 10 Million
Payment of: Million

5 Approval for accepting claim _ More than up to Rs. 1

Settlement lower than amount of Rs. 1 Million Million
Loss (per claim)

46
 Approving Authority
2nd Level 3rd Level
APPROVAL ITEM
1st level

6 Selection, appointment, Upto Rs. 0.5

termination of and payment to More than Million
consultant, legal advisor, Rs. 0.5
professional / consultancy / audit Million and
firms, service providers (including up to Rs. 2
maintenance service, data entry, Million
data communication, facilities
Management, etc.) certification
agencies / institutes, and
outsourcing agencies [ in case the
proposal involves increase in
manpower by engagement of
apprentices, contract ]

7 Payment of Compensation, out of

0 _ _
court settlements etc.

8 Additional requirement of vehicle

0 _ _
for internal use

47
 PROFIT AND LOSS STATEMENT
17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

12 months 12 months 12 months 12 months 12 months

INCOME
Revenue From Operations [Gross] 76,140.80 63,957.70 53,768.50 47,822.80 48,114.70
Less: Excise/Service Tax/Other Levies 9,231.40 7,516.50 5,163.00 5,178.00 5,502.10
Revenue From Operations [Net] 66,909.40 56,441.20 48,605.50 42,644.80 42,612.60
Other Operating Revenues 1,125.40 1,096.90 1,365.10 1,055.80 975.3
Total Operating Revenues 68,034.80 57,538.10 49,970.60 43,700.60 43,587.90
Other Income 2,279.80 1,461.00 831.6 822.9 812.4
Total Revenue 70,314.60 58,999.10 50,802.20 44,523.50 44,400.30
EXPENSES
Cost Of Materials Consumed 42,629.60 35,483.90 32,867.80 28,898.90 30,349.20
Purchase Of Stock-In Trade 4,482.10 3,206.60 2,665.20 2,431.40 2,186.40
Changes In Inventories Of FG,WIP And Stock-In Trade -380.1 6.9 -455.9 18.5 23.4
Employee Benefit Expenses 2,331.00 1,978.80 1,606.60 1,368.10 1,069.60
Finance Costs 89.4 81.5 206 175.9 189.8
Depreciation And Amortisation Expenses 2,602.10 2,820.20 2,470.30 2,084.40 1,861.20
Other Expenses 8,722.80 8,037.70 6,643.10 5,922.10 5,773.50
Less: Inter Unit / Segment / Division Transfer 103.6 60.2 69.1 34.3 43.8
Total Expenses 60,373.30 51,555.40 45,934.00 40,865.00 41,409.30
17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional, Extra Ordinary Items And Tax 9,941.30 7,443.70 4,868.20 3,658.50 2,991.00
Profit/Loss Before Tax 9,941.30 7,443.70 4,868.20 3,658.50 2,991.00
Tax Expenses-Continued Operations
Current Tax 2,331.70 2,041.40 1,302.60 747.9 722.8
Less: MAT Credit Entitlement 0 0 70.4 0 90.4
Deferred Tax 271.9 38 -75.2 127.6 -33.5
Total Tax Expenses 2,603.60 2,079.40 1,157.00 875.5 598.9
Profit/Loss After Tax And Before Extra Ordinary Items 7,337.70 5,364.30 3,711.20 2,783.00 2,392.10
Profit/Loss From Continuing Operations 7,337.70 5,364.30 3,711.20 2,783.00 2,392.10
Profit/Loss For The Period 7,337.70 5,364.30 3,711.20 2,783.00 2,392.10
17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

12 months 12 months 12 months 12 months 12 months

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE
Basic EPS (Rs.) 242.91 177.58 123 92.13 79.19
Diluted EPS (Rs.) 242.91 177.58 123 92.13 79.19
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS
Imported Raw Materials 3,322.10 2,615.80 2,395.30 2,657.10 3,677.60
Indigenous Raw Materials 39,307.50 32,868.10 30,472.50 26,241.80 26,671.60
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 67.2 58.5 51.9 46.5 70.7
Indigenous Stores And Spares 425.6 400 306.6 247.5 287
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 1,057.30 755.2 755.2 362.5 241.7
Tax On Dividend 215.2 153.8 153.8 61.6 41.1
Equity Dividend Rate (%) 1,500.00 500 500 240 160

48
 INCOME STATEMENT
Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

Net Sales/Income from operations 78,104.80 66,909.40 56,441.20 48,605.53 42,644.76

Other Operating Income 1,657.90 1,125.40 1,096.90 1,365.11 1,055.87
Total Income From Operations 79,762.70 68,034.80 57,538.10 49,970.64 43,700.63
EXPENDITURE
Consumption of Raw Materials 44,941.30 42,629.60 35,483.90 32,798.66 28,864.58
Purchase of Traded Goods 9,993.00 4,482.10 3,206.60 2,665.19 2,431.42
Increase/Decrease in Stocks 40.7 -380.1 6.9 -455.86 18.5
Power & Fuel -- -- -- -- --
Employees Cost 2,833.80 2,331.00 1,978.80 1,606.55 1,368.11
Depreciation 2,757.90 2,602.10 2,820.20 2,470.33 2,084.40
Excise Duty -- -- -- -- --
Admin. And Selling Expenses -- -- -- -- --
R & D Expenses -- -- -- -- --
Provisions And Contingencies -- -- -- -- --
Exp. Capitalised -- -- -- -- --
Other Expenses 9,892.40 8,619.20 7,977.50 6,643.13 5,922.11
P/L Before Other Inc. , Int., Excpt. Items & Tax 9,303.60 7,750.90 6,064.20 4,242.64 3,011.51
Other Income 2,045.50 2,279.80 1,461.00 831.58 822.9
P/L Before Int., Excpt. Items & Tax 11,349.10 10,030.70 7,525.20 5,074.22 3,834.41
Interest 345.7 89.4 81.5 206.02 175.85
P/L Before Exceptional Items & Tax 11,003.40 9,941.30 7,443.70 4,868.20 3,658.56
Exceptional Items -- -- -- -- --
P/L Before Tax 11,003.40 9,941.30 7,443.70 4,868.20 3,658.56
Tax 3,281.60 2,603.60 2,079.40 1,156.98 875.51
P/L After Tax from Ordinary Activities 7,721.80 7,337.70 5,364.30 3,711.22 2,783.05
Prior Year Adjustments -- -- -- -- --
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For the Period 7,721.80 7,337.70 5,364.30 3,711.22 2,783.05
Equity Share Capital 151 151 151 151 151
Reserves Excluding Revaluation Reserves 43,741.90 36,020.10 29,733.20 23,553.20 20,827.00
Equity Dividend Rate (%) 1,600.00 1,500.00 700 500 240
EPS Before Extra Ordinary
Basic EPS 255.62 242.91 177.58 122.85 92.13
Diluted EPS 255.62 242.91 177.58 122.85 92.13
EPS After Extra Ordinary
Basic EPS 255.62 242.91 177.58 122.85 92.13
Diluted EPS 255.62 242.91 177.58 122.85 92.13
Public Share Holding
No Of Shares (Crores) -- -- -- 13.23 13.23
Share Holding (%) -- -- -- 43.79 43.79
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of shares (Crores) -- -- -- -- --
- Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- -- -- --
- Per. of shares (as a % of the total Share Cap. of the company) -- -- -- -- --
b) Non-encumbered
- Number of shares (Crores) -- -- -- 16.98 16.98
- Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- -- 100 100
- Per. of shares (as a % of the total Share Cap. of the company) 49 -- -- -- 56.21 56.21
 BALANCE SHEETS
PARAMETERS 17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 151.00 151.00 151.00 151.00 151.00
Total Share Capital 151.00 151.00 151.00 151.00 151.00
Reserves and Surplus 36020.10 29733.20 23553.20 20827.00 18427.90
Total Reserves and Surplus 36020.10 29733.20 23553.20 20827.00 18427.90
Total Shareholders Funds 36171.10 29884.20 23704.20 20978.00 18578.90
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00 144.80 460.40 542.90
Deferred Tax Liabilities [Net] 464.00 194.30 481.00 586.60 408.70
Other Long Term Liabilities 1105.00 807.50 105.40 238.60 250.30
Long Term Provisions 21.90 14.80 292.60 198.00 225.90
Total Non-Current Liabilities 1590.90 1016.60 1023.80 1483.60 1427.80
CURRENT LIABILITIES
Short Term Borrowings 483.60 77.40 35.40 1224.70 846.30
Trade Payables 8367.30 7407.30 5561.40 4897.50 4157.90
Other Current Liabilities 3931.40 3155.60 1865.80 1274.20 1075.10
Short Term Provisions 449.00 398.90 1360.40 677.70 648.20
Total Current Liabilities 13231.30 11039.20 8823.00 8074.10 6727.50
Total Capital And Liabilities 50993.30 41940.00 33551.00 30535.70 26734.20

ASSETS
NON-CURRENT ASSETS
Tangible Assets 12916.20 12163.10 11967.00 10607.70 9576.50
Intangible Assets 373.00 346.90 292.30 182.70 222.70
Capital Work-In-Progress 1252.30 1006.90 1882.80 2621.40 1940.90
Fixed Assets 14541.50 13516.90 14142.10 13411.80 11740.10
Non-Current Investments 26214.70 18875.40 9817.60 1304.80 1873.50
Long Term Loans And Advances 0.30 0.40 1349.30 1638.40 1280.00
Other Non-Current Assets 1626.90 1701.30 44.10 9.00 894.60
Total Non-Current Assets 42383.40 34094.00 25353.10 16364.00 15788.20
CURRENT ASSETS
Current Investments 2013.70 1056.80 2996.40 8813.10 5204.80
Inventories 3262.20 3132.10 2615.00 1705.90 1840.70
Trade Receivables 1199.20 1322.20 1069.80 1413.70 1469.90
Cash And Cash Equivalents 13.10 42.20 18.30 629.70 775.00
Short Term Loans And Advances 2.50 147.80 1172.80 1251.10 1115.30
OtherCurrentAssets 2119.20 2144.90 325.60 358.20 540.30
Total Current Assets 8609.90 7846.00 8197.90 14171.70 10946.00
Total Assets 50993.30 41940.00 33551.00 30535.70 26734.20

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 9640.50 9368.70 9228.60 7210.20 8193.30
CIF VALUE OF IMPORTS
Raw Materials 3725.40 3363.20 3181.80 3095.50 4234.40
Stores, Spares And Loose Tools 115.50 100.00 75.80 68.30 66.30
Trade/Other Goods 20.10 62.90 23.10 41.60 12.80
Capital Goods 1481.80 738.30 1011.20 1731.20 1476.20
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 4110.40 3792.60 3300.30 3087.40 3102.00
REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign Currency 594.30 424.50 203.70 135.80 117.50
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods 5629.10 4735.30 4633.20 4141.70 4560.10
Other Earnings 0.00 57.00 0.00 0.00 0.00
BONUS DETAILS
Bonus Equity Share Capital 0.00 0.00 0.00 0.00 0.00
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value 0.00 583.90 560.50 237.70 147.40
Non-Current Investments Unquoted Book Value 0.00 18404.60 9791.10 1278.30 1867.40
CURRENT INVESTMENTS
Current Investments Quoted Market Value 0.00 0.00 0.00 0.00 0.00
Current Investments Unquoted Book Value 0.00 1056.80 2996.40 8813.10 5229.80

50
CHAPTER- 5

RECOMMENDATIONS AND CONCLUSION

51
6. RECOMMENDATIONS AND CONCLUSION:-

5.1. Provident fund:-

Contribution made to EPF and PPF gets deduction under Section 80C and the interest earned is
tax free. That is both works under EEE (Exempt, Exempt and Exempt) tax regime. However,
PF is better than PPF in two aspects -

✓ In the case of PF, the employer also contributes to the fund. There is no such
contribution in case of PPF.
✓ The rate of interest on PF is also marginally higher (currently 8.50%) than
interest on PPF (8%).

6.1. Ring system:-

The “Ringi” decision making process is democratic in nature, with greater participation of
people, and easy for implementation as formal approval is made with a great involvement of
employees at all levels. For the “Ringi” system to operate effectively, certain conditions must
prevail. it calls for a good organizational culture with harmony among the employees and seeks
for a well organized communication pattern at work place. Much of the discussion, negotiation,
bargaining, and persuasion are performed through mobilization of personal networks. To make
this possible, organizational and physical setting must be such as to encourage regular and
frequent face-to-face interaction. Another basic condition to make the “Ringi” system effective
is a strong sense of shared understanding and values among participants. The “Ringi” system
receives criticism for its long process for consensus, and is perceived as a problematic one in a
cross cultural context as decision making procedures vary from culture to culture in the
international business. Even though the “Ringi” process is viewed as time consuming, it still
ranks high in appreciation for its nature of participatory management with collective decision
making procedure in an organization.

52
BIBLIOGRAPHY

file:///C:/Users/user/Downloads/SSRN-id2597083%20(1).pdf

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2597083

http://www.epfochennai.tn.nic.in/pdf/Excemptionsrevised.pdf

https://en.wikipedia.org/wiki/Ringi

https://www.slideshare.net/neolani/provident-fund-ppt

www.surfindia.com\marketingstartgies\automobileindustries.html
www.goi.gov\disinvestments.pdf
www.suzukicopration.com\marutiudyog.ppt

http://samaritanonline.blogspot.in/2007/07/marutivisionmission-and-swot-analysis.html

www.pitstop.com

https://en.wikipedia.org/wiki/Provident_Fund

53