SUMMER TRAINING REPORT ON EMPLOYEE WELFARE IN Escorts Ltd.

SUBMITTED TO M.D UNIVERSITY, ROHTAK IN THE PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

B .B .A(CAM)
(BACHELOR OF BUSINESS ADMINISTRATION, COMPUTER AIDED MANAGEMENT)

Session 2009-10
TRAINING MANAGER: (MR.RAJESH GOEL) [ HEAD OF HR DEPT.] Faculty guide: . [B. B. A(CAM)Co-ordinator] SUBMITTED BY: MANPREET KAUR B. B. A(CAM)5th Sem. Roll No.

D.A.V INSTITUTE OF MANAGEMENT Faridabad

I hereby declare that, the project entitled

Employee Welfare In escorts ltd..

assigned to me for the partial fulfillment of B. B. A. 5th Sem. degree from M. D. UNIVERSITY, Rohtak. It s the original work done by me and the information provided in the study is authentic to the best of my knowledge. This study has not been submitted to any other institute or university for the award of any other degree.

[.]

ACKNOWLEDGEMENT
This project report prepared by me is a result of the joint effort of several helping hands of the Personnel Department of Escorts Ltd., Construction Division, Faridabad. The knowledge of our theoretical studies is absolutely incomplete without its proper implementation and application in the diversified corporate world of today. I have been really opportunistic to be a part of the Escort Group during my summer training, which is one of the leading business houses in todays scenario. Any accomplishment requires the effort of many people and this work is no different. It has been my proud privileges to be attached to do research on such a topic which gave me the chance to get connected with some great people who are thoroughly professional i.e., staff of Escorts Ltd. highly professional company with modern outlook. With due respect I express my indebt-ness to the management of the company. For accommodating me to have a look into their systems and providing me with all information I needed to complete my research work. I am deeply indebted to Mr. Anand Kishore (Chief Manager , HRD) for allowing me to conduct an in depth study of Employee Welfare in the esteemed organization like Escorts (Agri Machinery Group, Plant-1, Faridabad). I would like to express my heart gratitude to Mr. Rajesh Goel and Mr. Amod Thakur (Personnel Department ) who extended his full cooperation and support , subverted his expert guidance wherever necessary which was of paramount importance to me.

[]

TABLE OF CONTENTS

Chapter 1: Introduction Need of the study Objective of the study Research problem Research methodology Research design Sample design Sources of data collection

Chapter 2: Review of literature Chapter 3: The Company Chapter 4: Data Analysis and Presentation Chapter 5: Conclusions and Recommendations Bibliography Appendices

INTRODUCTION OF STUDY

INTRODUCTION NEED OF THE STUDY

Only theoretical knowledge is not enough in any study, one also has to look after its practical aspect if he wants to know real situation and to know what the problems in implementing theory in to practice are. Lecture given in classroom help us to understand the fundamental concept of management. As an essential part of our B.B.A(cam). program I got a chance to have the training with Escorts (AMG, plant-1 Faridabad) The project assigned to me during my summer training at escorts (AMG) was the employee welfare policies of the company There are three plant in Faridabad i.e. plant-1, plant-2, plant-3. For the purpose of my study, I personally met the employees of various plants; all of them provided me with the necessary information related to the project. First of all I have collected the various welfare policies from induction manual, from welfare notice board , internet and with direct interaction with the employees of the company. From this study I came to know the various facilities that are provided by company to their employees. For this study a questionnaire was prepared to collect the information on the employees preference regarding the welfare policies provided by the company. From the study I came to know the preference of employees regarding various

facilities provided by the company.

OBJECTIVES OF THE STUDY

company. company to the employees. necessary amendment in the welfare policies of the company. To know how employees are availing the welfare schemes. To know the formalities fulfilled before availing the welfare schemes. To check the role of management while providing welfare schemes. The study aims at providing relevant information for marking the To study the information regarding the welfare policies provided by the To know employees preferences regarding welfare facilities provided by the

Research Problem
A researcher experiences some difficulty either in a theoretical and practical situation and wants to obtain a solution. Major components of a research problem: If someone goes for a research then there should be a problem for which he go and solved it. The problem should be helpful for achievement of objective. There are alternative means to achieve objectives, and the researcher must know about the favorable and unfavorable means of the objective. There is a doubt in the mind of the researcher, so that researcher can achieve his objective. The environment should be problem pertaining so that he can found the problem and for solving it he can do research.

RESEARCH METHODOLOGY
Research
For understanding our study very firstly we should understand that what are the various methods which are generally being used to do a research work, and then we will relate our research with the one type which is of its kind.

But before relating the research and understanding it we should have little knowledge of Research indeed. Research in common meaning refers to a search for knowledge. If we define research properly then it would be like It is a scientific and systematic search for pertinent information on a specific topic. Still some people consider research as a Movement, the movement from known to unknown. All of us posses some amount of inquisitiveness in our self, and it is this inquisitiveness that make all of us to get known with the things which are unknown to us. Research is an academic activity, which help us to get familiar with the basic things of the findings and spread the knowledge so that all can be benefited from it. In short, the search for knowledge through objectives and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also Research.

OBJECTIVES OF RESEARCH:
The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings:

1 2

To gain familiarity with a phenomenon or to achieve new insights into it. To portray accurately the characteristics of a particular individual, situation or a group.

To determine the frequency with which something occurs or with which it is associated with something else.

To test a hypothesis of a casual relationship between variables.

However this is not an exhaustive list of factors motivating people to undertake research studies. Many more factors such as directives of government, employment conditions, curiosity about new things, desire to understand casual relationships, social thinking and awakening, and the like may as well motivate people to perform research operations. Now as we know that what are the various objectives behind the research work we should also understand that what the type of research work is, that is being done by us and categories our lies in which category.

METHODOLOGY OF PROJECT
Firstly i choose the topic which was of my interest and I knew it will increase my view in working of the organization. After I visited companys office and met with the executives over there. Thirdly I made them understood what I am trying and in what prospect I wanted their help. After this they told me what methods they are using for the performance appraisal, it was the rough idea they provided me as their company rules dont allow them to reveal their policies. After that I came in contact with some people working for the organization and going through those appraisals. I saw the forms which they are supposed to fill during the appraisal process. On the basis of the information got and gathered I made the project report.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design used in my study is basically descriptive in nature.

i)

Descriptive research:

-- the research design in my study is

descriptive. Its studies are concern with describing the characteristics of a particular group or individual. Studies concerned with specific prediction with narration of facts and characteristics concerning individual, group or situations are examples of descriptive research .it is also known as social research.

SAMPLE DESIGN:
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample i.e. the size of the sample. Stratified sample method is adopted to select the sample. SAMPLE UNIT: Sample is made on the basis of the stratified sampling, in this type of sampling simple random and sub sample are drawn from different data which are equal o some characteristics . the first step in stratified sampling choosing a strata on the basis of existing information. SAMPLE SIZE: Hundred GEOGRAPHICAL AREA: Plant-1, plant2, plant-3.

SOURCES OF DATA COLLECTION :-1. Formal Information Sources These are the sources of information
which are authentic and reliable, obtained through a proper channel in the organization by adhering to a systematic and structured procedure.

For Example: Through company manuals, journals, brochures and any other published material like balance sheets, annual reports, articles etc. . Questionnaire Personal Interview and Mails etc Through the Company Person

2. Informal Information Sources

employees of the company. For Example: Employees of the same department.

These are the sources of

information which are obtained through our interpersonal relationships with the

External stakeholders involved in the Company like Existing Clients

3. Primary Data

Data which is collected for the first time for a specific

purpose is generally known as Primary data.

For Example: Questionnaire Personal Interview E- mail Telephone Enquiry Feedback Form

4. Secondary Data
Secondary data. For Examples:

Data which is collected for some other purpose but

which can be used either partially or fully for the present study is known as

Published Articles Annual reports of company like annual sales report, annual finance report and annual marketing report Reports of different types of Governmental and non- governmental agencies Internet

These four types of sources helped us to gather information about the company and its competitors. We can use formal information sources only for the information about the company. Informal sources will be great help to get information about the company also. Secondary data will be used for the competitors information. Internet will be used for the information about the company and its competitors. Competitors home web site will be great help to us to get knowledge about the lacking in ours and need of growth in our presentation.

REVIEW OF LITERATURE
Employee:-An employee generally includes any individual who performs services if the relationship between the individual and the person for whom the services are performed is the legal relationship of employer and employee. This includes an individual who receives a supplement unemployment pay benefits that is treated as wages. But does not include a person who, in the boards opinion, (a) (b) labour relations or Personnel. Performs the functions of a manager or superintendent ,or Is employed in a confidential capacity in matters relating to

Employer:An employer generally is that person who appoints the employees and workers. Employer is a major part of a business organization. In the organization, Business owners who want their business to continue to grow and expand its capacities will eventually have to consider taking on employees. Employing people is a complex, but not impossible task, provided that you are well-informed about your rights, your legal obligations and your responsibilities. This section provides information about various aspects involved in being an employer. There are various authorities who enforce the employer to create a healthy environment in the organisation.

About industrial relations or employees relationships:-The relationship between employer and employee is called employee relationship. Here the victorian government say about workplace relations. And it passed an act also.this is as follows:In 1996 the Victorian Government referred most of its industrial relations powers to the Commonwealth Government. This allowed for the establishment of a single framework of laws regulating industrial matters in Victoria through the Workplace Relations Act. While Victoria no longer has a state-based Industrial Relations (IR) system, except for some specialist legislation, the Victorian Government is committed to fostering fair, co-operative and innovative workplaces. To achieve this, the State Government has called for changes to the Workplace Relations Act to generate more harmonious IR outcomes, passed specific legislation to improve fairness and security for various employees, and developed a number of programs to promote cooperative, high-performance workplaces.

Basic meaning of industrial relationship:-The term industrial relations in practice has come to mean primarily the relations between the management and the union (s) in an industrial enterprise. It ought to include employee relations irrespectively of whether a union exists in a particular unit or not. We all know that unions come into being because for age the individual employee

has been exploited by the employer. To be sure, most of us Indians are even today, partners in this process of exploitation. The reference here is to the working conditions and facilities that we provide to our domestic servants, whether we look at their wages, at their working houses, or at their health care. The some is by and large true for labour employed on construction projects or in firms. It must therefore be accepted that the trade unions did serve a social purpose through the practice of collective bargaining.

The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL, industrial relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform. In fact, industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are below: Institution: It includes government, employers, trade unions, union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems. Characters: It aims to study the role of workers unions and employers federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc. Methods: Methods focus on collective bargaining, workers participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules,

regulations, policies, procedures, hearing of labor courts, tribunals etc. Contents: It includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers participation in management, collective bargaining, etc.

Labour welfare:-Labor welfare refers to all the facilities provided to labor in order to improve their working conditions, provide social security and raise their standard of living. Majority of labor force in India is working in unorganized sector. In order to provide social security to such workers, Government has introduced Labor Welfare Fund to ensure assistance to unorganized labors. Five different welfare funds, which are governed by different legislations, are administered by Ministry of Labor. The purpose of these welfare funds is to provide housing, medical care, educational and recreational facilities to workers employed in beedi industry and non-coal mines and cine workers. Here is a protection group for the safety of employees and labors which tells about what services are to be provided to employees and shop floor workers.

Employee Welfare Protection Group - Employment Lawyer

Established in 2006, Employee Welfare Protection Group has over 15 years experience in the employee welfare protection profession, with the focus on providing income, injury and legal protection to the employee throughout the local area. The company is located in Lowestoft, East Anglia. With a 24 / 7 emergency contact centre and fully qualified staff, the company is able

to offer a professional advise service to all employee status. The service is intended to be cost effective, enabling members to become financially secure. The organisation supplies reliable welfare benefits, featuring easy, manageable premiums. Tailored to the employee's requirements, the products are essential for every day needs and can prevent financial difficulties. The product is available from the website at a reduced cost. With a staff body of 10 fully qualified tradesmen and women, Employee Welfare Protection Group has a professional team, qualified in employee rights. Employee Welfare Protection Group has a satisfied network of members, located through out East Anglia, including many who are part time employed. The organization is managed by a board of directors who have been involved in the Employee and Employment Welfare industry for many years. They are well trained to oversee the organisation, having previously trained in Employment Law.

The five legislations governing welfare funds are as follows:

The Mica Mines Labor Welfare Fund Act, 1946 The Limestone and Dolomite Mines Labor Welfare Fund Act, 1972 The Iron Ore, Manganese Ore and Chrome Ore Mines Labor Welfare Fund Act, 1976

The Cine Workers Welfare Fund Act, 1981 Schemes under welfare funds provide assistance with respective to the following:

Public health and sanitation Housing

Recreational (including standard of living) Social security Educational facilities Water supply Transportation Medical facilities (prevention of diseases) Social security Group Insurance Schemes for Beedi and Cine workers.

Workers Welfare Cess Act, 1976 provides for levy of cess by way of excise duty on manufactured beedis from Re.1/- to Rs.5/- per thousand manufactured beedis. This is presently Rs 2 per 1000 beedis with effect from 28th June 2000.

The Cine Workers Welfare Cess Act, 1981 provides for duty of cess, at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees, on every feature film submitted to the Chairman, Central Board of Film Certification. This is Rs 20000 per feature film of Hindi and English and for regional films it is Rs 10000 per film with effect from 20th April 2000.

The Iron Ore, Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act,

1976 provides for levy and collection of cess on Iron Ore, Manganese Ore & Chrome Ore between 50p to Re.1/-, Re.1/- to Rs.6/- and Rs.3/- to Rs.6/- respectively.

The Limestone and Mines Labor Welfare Fund Act, 1972 provides for the levy

and collection of cess on Limestone and Dolomite as a duty of excise at such rate not exceeding one rupee per metric tone of limestone & dolomite. The rate of cess on Limestone and Dolomite is Re.1/- with effect from 27th December 2000.

Mica Mines Labor Welfare Fund Act, 1946, provides for levy and collection of

cess on all mica exported as duty of Customs not exceeding 6.25% ad valorem. This is 4.5% ad valorem on export with effect from 1st November 1990.

What is Employee Welfare?

Employee welfare in general, these are the benefits that an employee must receive from his/her company, like allowances, housing for those companies who provides, transportation, medical, insurances, food and some other way where the employee has rights to demand. At escorts, we care for our employees and consider each and every one a part of the escorts family. Various Welfare Schemes are in place in keeping with this spirit Bonuses, 13 month pay, sick leave, maternity leave and vacation are also part of this and even holidays for other companies. EMPLOYEE WELFARE FACILITIES you must provide "adequate and appropriate" welfare facilities for your employees. these must be provided unless they are unreasonable in terms of time, cost and physical difficulty. Welfare facilities include toilets, washing facilities, rest and changing facilities, personal security arrangements (e.g. lockers) and refreshment. There must be a sufficient number of toilets and washing facilities so that people should not have to queue for long periods to use them. these should be separate for male and female, unless you have a very small number of staff. the facilities must be clean, and provided with toilet paper, soap, drying facilities, and hot and cold running water. they must be well lit, and ventilated to the external air. sometimes a shower may be necessary.

FACILITIES FOR WOMEN

Number of People Toilets 1-5 6 - 25 26 - 50 51 - 75 76 - 100 1 2 3 4 5

Washbasins 1 2 3 4 5

Facilities for Men Number of People 1 15 16 30 31 45 46 60 61 75 76 90 91 100

Toilets 1 2 2 3 3 4 4

Urinals 1 1 2 2 3 3 4

Washbasins 1 2 2 3 3 4 4

You must provide a supply of clean and wholesome drinking water, which is easily accessible to all employees. cups should be provided and the taps clearly labelled. you must consider whether suitable facilities are available to staff working off-site or on temporary sites. if not, temporary arrangements must be provided. some workers may need to be provided with portable facilities for hand washing. if the work activity requires employees to change into specialist clothing, you must provide changing rooms and facilities for secure storage of personal belongings. you may need to consider separate storage for clean and dirty clothing, or the provision of laundry facilities. there should be a suitable seating area for use during breaks. this must be clean and provided with washing facilities nearby and a means of heating water for hot drinks.

EMPLOYEE BENEFITS AND SERVICES:It includes any benefits that the employee receives in addition to direct remuneration. The synonyms used are fringe, service programmes, employee benefits and hidden payroll.

FUNCTIONS OF EMPLOYEE WELFARE:--

Conditions at work place

Employees health service A)Factory Health Service B) Recreation C) Workers Education D) Economic Services E) Housing for Employees And Community Services. F) Study of the Working Of The Welfare Acts. G) Social Work in Industrial Setting.

Working conditions Factory Sanitation & Cleanliness Welfare Amenities

Conditions At Workplace:-WORKING CONDITIONS:It include many kinds working conditions for employees which are helpful for employee in doing work these are like: temperature, ventilation, lighting, noise, dust, smoke, fuels, gasses, humidity.

FACTORY SANITATION AND CLEANLINESS:-It is related to cleanliness of the factory, it include provisions for Urinals in factory provisions for the disposable f waste and rubbish; Provision for water and proper bathing and washing facilities, and facilities of whitewashing and repair of buildings care and maintenance of gardens, roads and etc. WELFARE AMENITIES:It include care of drinking water, canteen service, lunch, restroom, and other amenities.

Employee Health Services:-FACTORY HEALTH SERVICES:-This includes medical examination of employees, factory dispensary and clinic treatment, first aid and ambulance room and treatment of any incidents and other kind of health service. RECREATION:-It is related to maintain our body fit and fine for this purpose, construct a playground for playing games. And organize various types of programs like social

and cultural activities and physical games for recreation. OTHER SERVICES:-It includes various facilities like:- Education to improve skills, earning capacity and lecture programs and audio Economic services like; housing cooperatives, grain shops and fair price shops, Social works in industrial settings like: family planning and employee counseling. But now these services are counted in statutory provisions and non-statutory visual educations. study of the working of welfare acts.

provisions. These are explain further. Escorts believe that satisfied employees contribute to the development and growth of the organization. Escorts apart from providing statutory benefits offers various voluntary benefits to its employees. These are offered in the form of various allowances, perks and advances as given below:

Types of welfare schemes:-i. Statutory schemes ii. Non- statutory schemes.

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions: Drinking Water: At all the working places safe hygienic drinking water should be provided. Facilities for sitting: In every organization, especially factories, suitable seating

arrangements are to be provided. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following schemes: Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

Welfare items for workmen

S. No. 1.

Item

Eligibility

Duration /frequency/ quantity

Remarks

Uniform (terricot)

All regular workmen

2 sets of uniform every year to be given in April -June Additional pair of safety shoes to be given once in the period of three years. the first pair of safety shoes Will be given in the year 2008 in NovemberDecember. One jacket matching to uniform to be given in alternate year in the month of October/November. One raincoat to be given once in the period of 3 years commencing may-july. from 2007 in the month of

as per the existing practice

2.

Safety shoes

All regular workmen

Additional branded safety shoes will be provided to all regular workmen.

3.

Jacket

All regular workmen

Matching jacket will be provided.

4.

Raincoat

All regular workmen

As per the existing practice.

5.

Soap

All regular workmen working at

Two cake every month.

As per the existing practice.

6.

Excursion trip

workshop. Only permanent One excursion trip in workmen & their family members. year regular All workmen. Selected players of a year in the month of April or

As per the existing practice.

7. 8.

New

August. Sweet and tea on new per the As year day. Sports kit will be provided to the existing practice. Teams of kabbadi & volley ball will be

celebration Sports(kabbadi/ volley ball)

SAFETY ITEMS FOR WORKMEN

S. no. 1.

Item

Eligibility

Duration/ Frquency/ Quantity Once in a year and there after only replacement will be provided.

Remarks

Safety goggles

All regular workmen (except welders) actually working on machine & areas specified by safety officers.

Only colorlessindustrial safety goggles with side shield, compulsory to wear safety goggles on the shop/area while

2.

Goggles for welders

Welders

Working. Once in a year and Proper welding there after only goggles will be Procured. replacement

3.

Reinol cream (hand washing cream) Karodex barrier cream

All regular workmen actually working on shop floor. Workmen actually working in the oily conditions where there is a chance of any skin problem. Workmen working in power house, engine testing, air blowing stage in paint shop level exceeds 9o decibels. gas Workmen working as determined by safety officer.

will be provided. One pack of 200 per existing As gram per month. Practice. Need based (one pack of 100 month) Once in a year. gram Advice of the companys medical per officer will be taken in the Market. As and when required to be replaced.

4.

5.

Ear muffs/ ear plugs

6.

Respirators/

in Need based.

As and when required to be replaced.

mask/ cloth mask hazardous operatios

LONG SICKNESS BENEFITS

Long sickness benefits is payable to permanent workmen to cover up the loss of

wages incurred due to absence caused by long sickness. Long sickness benefit is extended when the workmen is suffering from Kidney transplant Renal failure requiring long- term dialysis Cerebral or vascular strokes Coronary artery diseases or a coronary bypass surgery. Open heart surgery, valve replacement. All kinds of cancer To including pulmonary TB. Brain hemorrhage incapacitating the workmen for a minimum period of any of

the diseases mentioned below:

one month. Serious accident resulting in the compound fracture or a fractured is incapacitating the workman to work for a minimum period of 30 days. Incapacitation of a workman from work should be for 30 days or more so as become eligible to receive this benefit. To release the benefits under the scheme it is necessary to get the claim certified from ESIC or by the companys medical officer as the case may be. Full payment of HRA is made during the period of long sickness. The maximum period for which sickness benefit are payable is 365 days.

FINANCIAL ASSISTANCE ON COMPASSIONATE GROUNDS

A lump-sum assistance of rs. 2 lac is given to the legal heir / dependents of the workman dying during employment.

WELFARE SERVICE FOR MEDICAL PURPOSE

Medical Insurance Hospitalization Scheme: Eligibility : All regular employees not covered under ESI. Limit: As per hospital bills subject to entitlement under the medical insurance hospitalization scheme. Procedure: The company has tie up with RAKSHA TPA for cashless treatment facilities for employees and their wards in different networking hospital and claims are directly lodged by hospital to RTPA. Employees taking treatment in non-networking hospital have to inform RAKSHA

TPA office 3 days advance in case of emergency have to dial 2250000 and completed set of papers shall be submitted in personnel department for settlement of claim. Coverage: Premium : self, spouse, legitimate dependent, children up to the age of 25 yrs or it is paid by company except for parents whose premium is borne by up to their marriage or employed which ever is earlier. the employee. Sum insured(annual) for each member of the family Workmen For minor aliment For major aliment 2, 00,000) Maternity benefits: Maximum benefits allowable will be rs 40000 applicable only if the members do not have more than children. Group personnel accident insurance (gapi) policy Eligibility: All regular employees covered under corporate medi claim policy. RS. 40,000 RS. 2, 00,000(family floater)

(For major aliment, claim will be entertained up to, max, limit i.e. up to

Minimum 3 days of incapacitation is must for getting claims. Policy renewal: 1st July of every year. Coverage: The accident risk covers both inside and outside the factory

irrespective of being present on duty or off duty provided the employee has met with an accident. This benefit is for self only. Claims: The employee will submit a claim from duty attested by medical officer

along with the supporting documents like medical certificate, x-ray film, fitness certificate, copy of x-ray report and bills related to medical treatment and certificate of absence from the duty.

Insured amount: Basic *60(minimum of rs.75, 000 &maximum of rs. 2, 25,000) Cash benefits: temporary disablement -1% of sum assured per week as per scale of compensation

Permanent partial Disablement:

Permanent disablement: 100% of the sum assured. Upon death: 100% of the sum assured to the legal heir.

LOAN FACILITIES TO ITS MEMBERS Escorts employees welfare society

ELIGIBLITY: All confirmed employees, who are members of society. To submit application form.

Membership Procedure

Fixed monthly contribution: Min rs. 300 and max RS.500 per month Loan Distribution: Interest payable On loan: 10% p.a. on reducing balance. Every Tuesday through ICICI bank.

Interest payable on contribution:

9% p.a.

Calculation of loan amount: (Total contribution of employees * 3)+ (500*no. of yrs of completed service) or RS. 85000 which ever is less. Presently members can take a loan up to a maximum of rs. 70000 from the escorts employees welfare society and rs. 50000 from escorts(farmtrac division) employees welfare society.

Escorts employees welfare trust Eligibility: All regular employees with minimum 5 yrs of

Confirmed service. Process: The forms are processed as per budgetary provision

on seniority and need basis. Purpose: To purchase utility items like T.V., fridge, motor cycle or marriage (self, daughter, son). Interest: 10% p.a. on reducing balance.

Recovery 3 years. period:

Maximum limit of loan amount is rs. 45000 (20% down payment) in case of marriage Rs. 36,000.

TRANSPORT FACILITIES FOR THE EMPLOYEES

The company provided bus facility to the employees coming from Delhi, palwal, hodal, and mohana area on subsidized rate. As per company policy the management will bear 70% of the total cost and 30% of the total cost will be borne by the employees. The rate applicable presently of bus fare (recoverable from employees) are as under:

Category

Delhi

Hodal

Mohana/ alawalpur

Palwal

Workmen

502

689

636

447

LEAVE RULE AND ENTITLEMENT

Type of leave Casual leave maximum leave can be availed at stretch Sick leave accumulation limit no. of SL can be availed at a stretch without medical certificate. SL can be availed at a stretch with medical certificate.

Workmen 07 02 07 84 02

Apprentices (apprenticeship act) 12 02 15 02

any balance

any balance

Earned leave accumulation be availed in a calendar year. Minimum no. of EL that can be availed at time.

21 03

Nil

limit no. of times for which EL can 126

03

RETIRAL BENEFITS TO EMPLOYEES

GRATUITY

Applicability: All employees who have rendered continuous service for not

less than 5 yrs.in case of service will not be applicable disablement condition of 5 yrs of service will not be applicable.

Permanent gratuity: on registration /retirement amount of gratuity

(basic+d.a.)* Years of service * 15/26. On death , gratuity to nominee will be given as under:

Service up to 5 yrs Service above 5 yrs but less than 10 yrs. Service above 10 yrs but less than 20 yrs. Service above 20 yrs.

Amount equivalent to 5 months salary (basic +D.A.). Amount equivalent to 10 months salary (basic+D.A.). Amount equivalent to 15 months salary (basic+D.A.). Normal gratuity plus additional 50% gratuity calculated.

PROVIDENT FUND AND EMPLOYEES PENSION SCHEME

Applicability:--ALL employees except apprentices under apprenticeship act are enrolled under the provident fund act and employees pension scheme 1995. Contribution Employees 12 %( Basic+d.a. +personal pay) 8.33%-employees pension scheme. 3.57% p.f. Up to rs. 6,500/- salary Contribution above rs. 6,500 salaries are added in p.f. a/c of employee. Employers 12% (basic+d.a. +p.p.)

Interest: 8.5% interest p.a. for the year 2007-08 accrued on balance Amount of p.f. a/c. Normally retirement pension starts from the age of 58 yrs. The amount of Pension is calculated as under: (Pension able salary * pension able service)/70

Pension able salary is average of monthly salary for 2 months proceeding the

date of exit.

Pension able service is the service rendered by the members for which

contribution has been made in EPS.

Pension from jeevan dhara policy for workmen Guaranteed pension

Rs. 450/- per month or 1% of policy amount whichever is higher D.A. :-D.A. neutralization @ rs. 2 .40 per point AICPI from 1.8.2006.

CANTEEN SERVICE
The canteen services in plant/divisions are run by the management through contractors at subsidized rates. The contractor supplies food, tea and snacks as approved by the management in the contract. Tea and meal breaks in the different shifts are as under: Shifts First shift Second shift Third shift Tea break 9.30a.m to9.40 a.m. 2.30p.m. to 2.40p.m. 6.30 p.m. to 6.40 p.m. 10.30 p.m. to 10.40 p.m. 2.30 a.m. to 2.40a.m. 6 a.m. to 6.10 a.m. In third shift only tea and snacks are provided during meal break. CANTEEN MANAGEMENT COMMITEE A canteen management committee nominated for a period of one year consisting of equal numbers of workmen and management representative is constituted. The committee meets once in a month to review and suggest improvements in the Meal break 12.00 noon to 12.30 8.30 p.m. to 9.p.m. 5.00 a.m. to 5.30 a.m.

functioning of the canteen. The grievance of the workmen with regard to quality of food, cleanliness of the canteen and service are discussed and action plans are worked out for implementation.

COMPANY S PROFILE

Companys Profile
ABOUT ESCORTS :-

Escorts Corporate Centre The Escorts Group, is among Indias leading engineering conglomerates operating in the high growth sectors of agri-machinery, construction & material handling equipment, railway equipment and auto components.

Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the agricultural growth of India for over five decades. One of the leading tractor manufacturers of the country, Escorts offers a comprehensive range of tractors, more than 45 variants starting from 25 to 80 HP. Escort, Farmtrac and Powertrac are the widely accepted and preferred brands of tractors from the house of Escorts.

A leading material handling and construction equipment manufacturer, we manufacture and market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts. Escorts today is the worlds largest Pick n Carry Hydraulic Mobile Crane

manufacturer. Escorts has been a major player in the railway equipment business in India for nearly five decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening systems, composite brake blocks and vulcanized rubber parts. In the auto components segment, Escorts is a leading manufacturer of auto suspension products including shock absorbers and telescopic front forks. Over the years, with continuous development and improvement in manufacturing technology and design, new reliable products have been introduced. The Escort Group has also been operating in the ITES and financial services sectors. Throughout the evolution of Escorts, technology has always been its greatest ally for growth. In the over six decades of our inception, Escorts has been much more than just being one of Indias largest engineering companies. It has been a harbinger of new technology, a prime mover on the industrial front, at every stage introducing products and technologies that helped take the country forward in key growth areas. Over a million tractors and over 16,000 construction and material handling equipment that have rolled out from the facilities of Escorts, complemented by a highly satisfied customer base, are testimony to the manufacturing excellence of Escorts. Following the globally accepted best manufacturing practices with relentless focus on research and development, Escorts is today in the league of premier corporate entities in India.

Technological and business collaboration with world leaders over the years, Globally competitive indigenous engineering capabilities, over 1600 sales and service outlets and footprints in over 40 countries have been instrumental in making Escorts the Indian multinational. At a time when the world is looking at India as an outsourcing destination, Escorts is rightly placed to be the dependable outsourcing partner of worlds leading engineering corporations looking at outsourcing manufacture of engines, transmissions, gears, hydraulics, implements and attachments to tractors, and shock absorbers for heavy trailers and armored tanks.

In todays Global Market Place, Escorts is fast on the path of an internal transformation, which will help it to be a key driver of manufacturing excellence in the global arena. For this we are going beyond just adhering to prevailing norms, we are setting our own standards and relentlessly pursuing them to achieve our desired benchmarks of excellence.

Logo of Escorts

Logo

rationale

:-

A hexagonal nut (in red) representing a geometric perfection. The nut has been a functional device that has stayed at the core of mankinds engineering adventures. In spite of modern technologies coming in, it still remains unarguably a symbol of technology and all that holds it together. Locked into the nut is a spanner (in white), the turning force for the symbol of technology. The two pictorial elements are configured together to form an E, a pneumonic for Escorts.

A doctrine of corporate and engineering openness, the Escorts logo allows an aisle, a pathway through which new ideas can walk in any time freely, giving Escorts the character to listen and absorb new and fresh thoughts.

The symbol with its three meanings makes a rebus or visual pun and is rendered in red, the color of energy and dynamism. Every time it is used, it represents the Escorts seal of quality and excellence.

The Founding Philosophy

Over six decades back two young men set out on a journey together armed with little beyond intelligence, business acumen and determination and dreams aplenty. They believed that India could only achieve total freedom with a breakthrough in the field of agriculture and mechanization would have to rule the fields. Their youthful enthusiasm had kindled the hope that one day they would make a mark of their own. They were in fact writing the first chapter of what has come to be widely 48ulcanized as one of the greatest success stories in Indian industry.

Escorts came into being with a vision. A vision that eschewed easy paths to profitability, and sought instead for ways to make a contribution. A vision that led two young brothers, Yudi and Hari Nanda, to branch out of their familys prospering transport business and institute ventures that were to become the foundations of Escorts Limited. On 17th October 1944, Escorts Agents Limited was born at Lahore (now in Pakistan) with Mr. Yudi Nanda as Managing Director and Mr. Hari Nanda as Chairman. It was a trendsetting marketing house driven by the same business philosophy, which had given their family enterprise an unrivalled reputation: customer concern. Not long afterwards, this driving ambition to go beyond the expected led Hari Nanda to the first of his many successful

business insights the discovery of the great business potential that lay in Indias villages. This led to the launch, in 1948, of Escorts (Agriculture and Machines) Ltd., with Yudi Nanda as Director. Though separate business entities then, both companies had two great strengths in common: the dynamic Nanda brothers and the unifying force of the name they gave their companies; Escorts, literally escorting their products and services to the customer while most other businessmen were just selling.

Tragically, Mr. Yudi Nanda died in an accident in 1952 but his spirit remained embedded in the foundations of the company. Mr. H P Nanda then took on the mantle to 49ulcani the dreams which he had always seen with his brother. Escorts (Agents) Ltd., and Escorts (Agriculture and Machines) Ltd. merged in 1953 to create a single entity Escorts Agents Pvt Ltd. Having initially started with a franchise for Westinghouse domestic appliances, by this time the Company had already expanded its marketing and service operations, representing internationally known German and American 49ulcanized49on such as MAN, AEG, Haniel & Leug, Knorr Bremse, MIAG and BMA for sophisticated electrical and mechanical engineering equipment and Minneapolis Moline and Wisconsin for agricultural tractors, implements and engines. Escorts made a major thrust into the agricultural arena by taking on the marketing and service franchise for Massey Ferguson tractors in Northern India, which soon comprised 75% of MFs all-India sales a signal tribute to Escorts inherent strengths. Its first industrial venture came up in 1954, in partnership with Goetzewerke of Germany for the manufacture of piston rings and cylinder liners followed by production of pistons in collaboration with MAHLE, also of Germany, in 1960. The companys incorporation in its present name, Escorts Limited, was effected on 18th January, 1960. Escorts next major industrial activity was the assembly of tractors in 1961 in technical cooperation with URSUS of Poland. Subsequently this led to the manufacture of the countrys first indigenous tractors under Escorts own brand name, which were to play a pivotal role in the Green Revolution. This went on to lay the foundations that even today are the Companys core strengths relevant, world-standard technology through strategic international alliances; a broadbased marketing and service network yet unrivalled;

powerful symbiotic relationships with suppliers and dealers; and above all, the crusade to make a difference.

Beyond the growth of the 50ulcanized50o, these principles have ensured that Mr. H. P. Nandas contribution to the cause of industry and the consumer will endure. He pioneered the revolutionary concept of interdependence between ancillary and large industries, 50ulcanized50on50zing vendor development and in the process building Faridabad and the entire belt of townships in the region. He introduced the discipline of service going before marketing, reassuring the customer that Escorts would stay with them, that they were here for the long run. He built lasting alliances with an array of the worlds most respected names in tractors, industrial equipment, two-wheelers, construction equipment and telecommunications. Going further, he created institutions devoted to value engineering and training, not only as investments in the companys future but also as catalysts for the enhancement of Indian industry as a whole the Escorts R&D Centre and the unique Escorts Institute of Farm Mechanisation. His concern extended to the society in which he worked, and he manifested it by establishing the Escorts Medical Centre at Faridabad, Escorts Heart Institute and Research Centre at New Delhi, as well as numerous village development programmes. And above all, he imbued the corporation with his own pioneering, entrepreneurial spirit, instilling both a conscience and a vision of leadership.

Escorts is testimony to the valour, vision and values of its Founder Mr. H P Nanda. He remains the inspiration for our courage, spirit of adventure and ability to Think Big. These qualities are his enduring legacy and have inspired and encouraged us down the decades and will continue doing so in all our endeavors.

Management

Mr. Rajan Nanda Chairman

An alumnus of Doon School, Dehradun, Mr. Rajan Nanda took over as Chairman of Escorts Group in the year 1994. That was the time when the Indian economy had begun to burgeon as a result of liberalization. The task before him was to prepare Escorts Group for the emerging competitive, globalised business environment and steer it to greater heights. Displaying vision and leadership qualities, Mr. Nanda undertook a major restructuring programme to give sharper focus to the Group's businesses. Under his stewardship the Escorts Group today is moving ahead in the high growth areas of agri machinery, construction equipment, railway equipment and auto components.

Mr. Nanda is an active member of several apex trade and industry bodies. As member of the CII National Council he has served as Chairman of its Agriculture Committee in the past years. He played a pivotal role in promoting the cause of Indian agriculture and his endeavours resulted in the Government announcing the long-awaited National Agriculture policy.

Mr. Nikhil Nanda Joint Managing Director

Mr. Nikhil Nanda is an alumnus of Wharton Business School, Philadelphia. Having graduated in Business Administration in 1995, he majored in Management and Marketing, before undergoing professional training with JC Bamford Excavators Ltd., U.K.

He is a member on the Board of most Group companies since 1997 and has the overall responsibility for managing the Group's agri, construction and engineering businesses. Combining contemporary management techniques with real life practical approach, Mr. Nikhil Nanda has been responsible for driving the business growth initiatives of the Group to strategically position it in the global arena.

Mr. Nanda is also among the five Indians selected as the Global Leaders of Tomorrow for the year 2001 by the World Economic Forum, Geneva.

Mr. Rohtash Mal Executive Director and Chief Executive Officer Agri Machinery Group

An alumnus of Indian Institute of Management Calcutta and Indian Institute of Technology - Delhi, Mr. Mal has over 27 years of rich and varied experience. In his last assignment as the Chief Executive he was responsible for the entire operations of Bharti Fieldfresh Ltd. Having started his career with Ballarpur Industries Ltd., in his stint of 17 years stint of 17 years he went on to become the Vice President (Sales & Marketing) of its paper division. Later at Maruti Udyog Ltd. as its Chief General Manager (Sales & Marketing) for 3 years, he was highly successful in sales and marketing of its passenger cars. In addition, spread over 6 years and three assignments, Mr. Mal had been with Bharti Airtel Ltd. in its mobility and broadband / telecom services business verticals as the Chief Executive.

With rich experience in successfully driving business growth in sectors like paper, automobiles, telecom and retail, Mr. Mal is now driving Escorts to significantly improve its competitive advantage and attain an even dominant position in the Agri Machinery sector.

Mr. Manoj Jha Excutive Vice President of Engineering Division

Mr. Jha has an experience of over 25 years with prestigious companies like Tata Motors, Eicher and the Minda Group. Prior to joining Escorts, he was the Managing Director at Minda Sai Ltd.

Mr. Jha brings with him a wide range of skills and expertise in business re-engineering turnaround, conceptualization and execution of strategic initiatives and handling turnkey projects. At Escorts, as the head of business operations of the Engineering Division, Mr. Jha will focus on building a strategic approach to move up the

revenue

chain

and

create

value.

Mr.

Kamal Bali CEO Escorts Construction Equipment Limited (ECEL)

A mechanical engineer from IIT Roorkee, Mr. Bali has over 25 years' of experience. Having started his career with Eicher Limited, till recently he was the Managing Director and CEO of the Italian tractor manufacturing company Same DeutzFahr, India. Mr. Bali has also been associated with the Escorts Group earlier and was looking after all India sales for the Agri Machinery Group. With his strong business orientation and leadership capabilities Mr. Kamal Bali is spearheading ECEL to that of a dominant player in the Construction Equipment segment at a time when the infrastructure Industry is witnessing spiralling growth.

Mr. G.B. Mathur Vice President - Law & Company Secretary

Has considerable experience in Secretarial and Legal matters. Having joined Escorts in 1993, Mr. Mathur is responsible for all Company law related matters and is also the custodian of the shareholder related matters. Prior to joining Escorts he was the Company Secretary at Chambal Fertilizers & Chemicals Ltd.

Mr.

Rakesh Kumar Budhiraja Group Chief Financial Officer

A Chartered Accountant by profession and also an LLB, MBA (Finance) and a Company Secretary. Has over of 27 years of rich and varied experience in all facets of Finance, strategic planning, Restructuring of Businesses, Treasury Management, and Secretarial functions. Prior to joining Escorts, he worked for more than 5years as Vice President (Finance) with JK Tyres & Industries Ltd. Earlier he was Chief Financial Officer & Company Secretary with Kajaria Ceramics Ltd. He has worked for tyre, ceramics, fertilizer & Chemicals, textiles and export house companies during his tenure of service. As the Group CFO he aims to substantially improve the economic performance, shareholder value and enhance financial discipline within the organization & bring high standards of Business focus.

Mr. Partha Dasgupta Group Vice President Human Resources and Relations

Employee

Mr. Dasgupta has over 30 years of experience spanning all facets of HR and ER.He has worked with leading companies like the Times of India, ICI India ,Vedanta PLC / Sterlite industries amongst various others in senior level assignments. Prior to joining Escorts, he worked with Raymonds on HR branding initiatives including work culture transformation, performance and talent management, and productivity improvement. At Escorts, Mr.Dasgupta will focus on strategic HR and Employee Relations

Chairmans

message

:-

The Indian economy during the year has grown in all sectors and there has been a supporting growth in consumption that has given the country a GDP growth of 8% in real terms. Ironically however, the farm sector was confronted with many adversities that have reduced its growth to mere 3% and was expected to decline further. Whilst the country had a normal monsoon and harvested a good standing crop, the support price given by the Government to the farmers was unattractive in fact it was lower than the cost at which India was proposing to import wheat. This has upset the agriculture market very extensively. The lapse of this crop income limited the farmers from raising fresh loans for buying equipment and for some farmers they had to repay old loans. There has been higher NPA from farm loans and hence lower lending by banks.

The above vicious cycle is proposed to be corrected a year later in the next wheat crop to be harvested in March-April 08. The Food and Agriculture Ministry has already fixed the support price and the standing crop is assessed to be good. The farmers cash flow will thus become positive and business will begin to grow again.

AGRI

MACHINERY

Your company with a long term view has been consistently improving its fundamentals. Towards this end, we have expanded our product offering and technologically advanced the tractors to become more competitive for specific products like Lighter axle rice plantation tractor for South India Orchard & Vineyard tractors Heavy duty large tractors in the range of 70-80 hp for four wheel drive suitable for heavy duty haulage and use in hilly terrain.

We have established our brand Farmtrac which carries a strong reputation of quality products and we will build on this brand further. Our manufacturing quality has become consistent and the manufacturing processes have been refined. All these will help us gain market share and give incremental growth beyond the countrys industry volume growth.

In the past year we lost substantially on our export volumes because of weakening of the Dollar by 12-14% which has eroded our entire working margin of sale for export destinations. As a result we had to withhold exports to the Dollar markets mostly to USA where we have our own company and organisation to distribute, service and sell. We have attractive margins and growing volume sales in export markets of Africa, Europe and South East Asia that will continue to bring good export volumes for the company. We have transformed the management leadership of our farm equipment and tractor business by bringing in a new CEO who will cultivate a strong marketing culture in our company, as well as make strong focused efforts to unleash a cost sensitive management culture and monetise the enormous value creation opportunities that this business is sitting on. All of us at Escorts are very optimistic about showing significant gains and growth in our farm machinery business by growing in volumes and concurrently reducing the cost of operations and achieving significant profitability from Agribusiness. The companys market network of dealers has intensified and we are aggressively targeting market share gains through new products for niche markets. This will strengthen our brand appeal and grow our business volumes over the next 2 years to reach 75,000 - 80,000 tractors. Tractor engines are being sold for industrial stationary use for which there is a very attractive market opportunity, the market size at present being around Rs. 2,500 3000 crs. annually. In our efforts to add more revenue from the existing investments, we have geared up to gain a sizeable share of this engine market. Your company is bringing in technology for farm implements from European companies to add more productivity to tractors and assist the farmer to improve his horticulture yields to meet the retail activity started by private sectors. Additionally, for water management we are going to be distributing and selling laser land levelling equipment. Escorts with the knowledge of customer market and farmer opportunity is now packaging a holistic offering to the farmer specific for improving his present yields and ultimately

his

income

from

farming.

In summary as our fortunes linked with the performance of the agriculture sector rise with government interventions and policies, the excitement within this business at Escorts is in unlocking its true wealth potential.

CONSTRUCTION

MACHINERY

ECEL

Our subsidiary company Escorts Construction Equipment Limited is in an equally exciting mode of business opportunity and demand growth. We have experienced extraordinary growth in demand and actual execution despite having limited manufacturing infrastructure till we move to our new premises in April 08. The results are excellent as you would see from the comparative in-depth analysis of top line, bottom line and volume line that is reproduced below: Actuals 31.3.2007 31.3.2008 3064 Equipment Sales Volume (Units) 2547 315.67 408.21 Gross Sales Turnover (Rs. Crs.) Net Sales Turnover (Rs. Crs.) Profit Before Tax (Rs. Crs.) 279.27 26.76 364.56 26.58 Estimated 31.3.2009 4350 585 520 40 Growth over Previous Year 42% 43% 43% 50%

ECEL has wisely well invested in a very intelligent and modern manufacturing plant capable of handling an annual volume of 14,000 machines per annum. The major products to be built at this plant would be:

Compaction Road Rollers Pick and Carry Cranes Forklift trucks Loaders & Excavators Slew Cranes

All the above machines would be in serial production at the new plant location from May-June 08. The retained earnings of this company are going to get stronger as the products which now have a growing demand are more profitable than the Pick and Carry Cranes. The road programmes of India are now becoming major activities and that generates a large demand for the products we manufacture. ECEL has a mature well manned product designing department to design and develop improvements on our present machines so that the products offered to the markets are always comparative with the international branded products marketed. We also have exclusive Distribution Rights for India for some heavy machines that sell very well in major worksites in India such as:

Crawler Cranes up to 280 tonnes Heavy duty and special purpose forklift trucks Road paving machines Motor graders Tower Cranes Equipment for Power and Telecom Utilities

For each of these products we have chosen a very competitive design from a reputed manufacturer who would give us the supply support to meet the demands of our markets. These arrangements can be converted to licensed manufacturing programmes at a later date if the demand of volumes from the market warrants local production initiatives. ECEL will always be a high performance and high growth company because Construction Industry and business in India is a high growing area.

AUTO SHOCK ABSORBERS AND RAILWAY EQUIPMENT ASP & RED Escorts also has a component business of Auto Shock Absorbers and Railway Equipment. The railways have growing opportunities with traffic loads for both freight and passengers which warrants modernisation for which we have the products and are also looking at relationships and synergies with international companies for a two way exchange of technology products so that we have a bigger canvas to grow in the context of our future. Our plant in Rudrapur has also given us good economic savings of tax and business growth. Likewise in Auto Shock Absorbers, we are refreshing our entire manufacturing facilities to primarily export the majority of our production that progressively will be actualised in the year 2007-08. We have acquired excellent human skills at all the key function areas of the company and their collective efforts will transform Escorts into a high performance company with strengths of marketing and financial controls. This change will be progressive and will be reported by the management on a quarterly basis with the year ending in September 08. These results will also be reflected in the price quotation in the Stock Exchange of our listing because we hope to have good growth on top line and bottom line. The fitness of the company is better than it has ever been and we owe this all to the

collective intellectual minds that now serve the organisation to whom I am very grateful for their commitment to the company and to their profession. I also want to place on record the cooperation we have had from the labour union who had a very constructive and progressive approach with the management to help the company grow and with that growth help the employees grow too. I would also like to place on record the great help and advice I have had from the Board of Directors who have been very supportive in this transition period till we actually reinvented ourselves.

Businesses Agri Machinery :Background In 1960, Escorts set up the strategic Agri Machinery Group (AMG) to venture into tractors. In 1965, we rolled out our first batch of tractors under the brand name of Escort. In 1969 a separate company, Escorts Tractors Ltd., was established with equity participation of Ford Motor Co., Basildon, UK for the manufacture of Ford agricultural tractors in India. In the year 1996 Escorts Tractors Ltd. formally merged with the parent company, Escorts Ltd. Since inception, we have manufactured over 1 million tractors. Technologies Escorts AMG has three recognized and well-accepted tractor brands, which are on distinct and separate technology platforms. Farmtrac: World Class Premium tractors, with single reduction and epicyclic reduction transmissions from 34 to 75 HP. Powertrac: Utility and Value-for-money tractors, offering straight-axle and hubreduction tractors from 34 to 55 HP. Indias No.1 economy range engineered to give spectacular diesel economy. Escort: Economy tractors having hub-reduction transmission and twin-cylinder

engines from 27 to 35 HP. Pioneering brand of tractors introduced by Escorts with unbeatable advantages. International Subsidiaries Escorts AMG has two international subsidiaries. Farmtrac North America LLC in the U.S.A Farmtrac Tractors Europe Sp.z o.o.in Poland. We now cater to 41 countries. Fuctional Excellence Manufacturing Quality Assurance Materials Management Sales & Marketing Knowledge Management Finance Human Resources Information Technology Beyond manufacture, Escorts has made substantial investments towards the 63ulcanized63on of farm technology. The Escorts Institute of Farm Mechanisation (EIFM) at Bangalore is a unique center where training is imparted in operation, maintenance and repair of farm machinery. It is among the few institutions of its kind in the world. Its programs are aimed at encouraging customers, dealers, engineers, mechanics as well as the field staff of Escorts, towards meeting its objective of enhancing agricultural productivity and improving quality of life in rural India.

Knowledge Management
The Escorts Agri-Machinery Group Knowledge Management Centre, set up in 1976, has a history of over twenty-nine years. It is spread over 100000 Sq M (23 acre) area. It is equipped with modern facilities set up with an investment of over US $ 7.5 million. It designs the entire tractor, defined as engine, transmission plus hydraulic systems and

Vehicle design consisting of sheet metal (including styling) plus controls and accessories.

Virtual prototypes of components and aggregate assemblies are made and assembled on computer workstations using 3D technology. The performance is checked on computers using simulation techniques thus saving a lot of time for the end-user as well as lowering development costs. The KMC uses advanced 3D-modeling, analysis and simulation software for engines, transmissions and vehicles. Physical prototypes are then extensively tested for performance, durability and reliability.

The facilities include a high-technology engine laboratory featuring fully computerized test beds with online control, data acquisition and analysis. We can test engine emissions for meeting the Bharat TREM norms, US Environmental Protection Agency (EPA) norms and European (Euro) norms. Additional capabilities of the engine lab are engine performance, durability, reliability, tribology and fluid dynamics studies. An advanced vehicle testing laboratory includes fatigue testing, dynamometer testing for chassis and power-take-off, and smooth as sell as torture test tracks. Other facilities include Noise Vibration and Harshness (NVH) Lab., Metrology Lab., and Materials Engineering Lab. Product styling is carried out in a computerized virtual environment, which is supported by a model-making shop for physical prototypes.

In addition to multi purpose tractors ranges, a variety of special-purpose tractors have been developed for industrial applications as also non-agricultural applications like Haulage, Airport, potato and vineyard cultivation.

Construction Equipment
Escorts manufacturers and markets a diverse range of construction and material handling equipment like cranes, loaders, vibratory rollers and forklifts. The company was a pioneer in introducing the concept of Pick n Carry hydraulic mobile cranes in the 70s in India and continues to be the worlds largest manufacturer of these cranes.

A nationwide network of 16 Sales Offices, 50 dealership locations, over 300 company trained dealers service engineers, gives it the best market reach in India for the Sales & Service of material handling and construction equipment.

With over 30 years experience in Construction Equipment Industry, Escorts has a proven track record in : Hydraulic Mobile Cranes Loaders Forklifts Vibratory Compactors

Today, it not only continues to be the largest mobile crane manufacturer in the country, but also the largest Pick n Carry Hydraulic Mobile Crane manufacturer in the world. While recording a rapid growth in Crane Industry weve also been able to steadily increase our presence in the field of Vibratory, Soil & Tandem Compactors. Escorts was the first to bring the concept of Vibratory Compactors in India in a big way, back in 80s. Subsequently more models in Tandem Vibratory Compactors and heavy duty Soil Compactor range were added in technical collaboration with HAMM Germany. Recently, weve further strengthened the range with a 3T Shoulder Compactor. Today our range of compaction equipments is one of the most preferred in the market, and is being viewed as the most efficient and effective compaction solutions available in the country. Along with Cranes and Compactors, we also manufacture Frontend loaders with payload capacity of 700kgs. Suitable for narrow lanes and confined spaces, these loaders are compact in design and are ideal for garbage handling, handing of chemicals, sands, small chips, etc.

Escorts also offers other material handing solutions like Forklifts from Daewoo Doosan Infracore Ltd., Korea and Articulated boom cranes from Fassi, Italy. In LPG Forklift

category,

the

company

enjoys

market

share

in

excess

of

85%.

This single-minded pursuit of precision and customer satisfaction has made us the 3rd largest in terms of Construction Equipment Sales unit per annum

Railway Equipment
Escorts is a leading manufacturer of critical railway components since the last 40 years. It is one of the oldest and most trusted partners of Indian Railways, the largest rail network in the world. Having played a significant role in the growth and modernization of Indian Railways, today it is a multi-product, multi-technology business at Escorts.

Broad Product Portfolio: Shock Absorbers Couplers Brake systems Brake Blocks An ISO: 9001-20000 certified company, Escorts manufactures products as per international standards specified by UIC, AAR and Indian Railways. The products are exported to over 15 countries worldwide.

For railway equipment, the initial source of technology has come from some of world leaders in the arena like: Schaku of Germany for couplers Knorr Bremse of Germany for air brakes General & Railway Suppliers Pty Limited of Australia for rail fastening systems ICER of Spain for composite brake blocks

Vulcanite of Australia for 67ulcanized rubber parts A state of the art manufacturing facility located at Faridabad, near New Delhi has facilities for advanced product development, design, testing and validation. The in-house Research & Development has played a critical role in bringing about a high level of customer satisfaction, reliability and safety the key drivers of business. Escorts engineering experts have trained over 8000 railway personnel of various countries. As Asias largest manufacturer of air brake systems, the conversion of vacuum brake stocks to air brakes and installation and commissioning of complete brake systems on new builds are also undertaken by Escorts.

Auto Component
The Auto Suspension Products Division (ASPD) under the Engineering Division of Escorts Ltd. is the leading manufacturer of auto suspension products including shock absorbers, struts and telescopic front forks. Escorts was the pioneer in Automotive Shock Absorber manufacturing in India in 1966 in Technical Collaboration with Fichtel & Sachs, Germany. Over the years the technology obtained from Fichtel & Sachs of Germany has been continuously upgraded and new reliable products have been introduced. Another step forward in this direction is a comprehensive technical collaboration with world leaders Kayaba of Japan. A strong in-house design and development infrastructure of the Division enables introduction of new applications as per specifications of customers.

PRODUCTS

TRACTORS

Most powerful tractor in its range with excellent productivity in terms of output

Most fuel efficient and tractor Reliable and trustworthy with which has best value for a powerful feel. Low money maintenance cost

ENGINES

Excellent in Performance Designed for 100% continuous operation and longer service intervals Highly fuel efficient / Low operating cost Class A1 governing with 4% regulation for stable operation in fluctuating load condition Low Noise and Vibration Compact size Cooling system designed for extreme weather conditions Equipped with Pusher type fan for better cooling in Stationary application Meets CPCB Emission norms Fitted with Coolant expansion bottle - Does not require frequent topping up Easy and Low maintenance

Quick start Plateau honed wet liners for longer life and low oil consumption and better service ability 3 ring pack version Piston with ring carrier for top ring for Longer life Low friction & Higher fuel efficient Chrome Plated top piston ring for longer life & low lub oil consumption Valve stem seal for lower lub oil consumption Water pump with integral bearings and unitised seal for longer leakage free life of Pump Low cost of spares

G 15

G 20

G 25

G 30

LUBRICANTS

A key initiative of Escorts Ltd. in our continuous endeavor to provide Total Customer Satisfaction. Genuine Engine and Gear oils for the complete range of Escorts tractors developed to suit varying temperatures and climatic conditions. Every drop of SURAKSHA embodies the excellence that Escorts has gained over

50 years experience in tractor manufacturing and reflects its keen understanding of the Indian farmer and his tractor. "SURAKSHA" - the protective shield for the tractor - tailor made for enduring performance year after year.

Farmtrac Genuine Engine Oil

Farmtrac Genuine Gear Oil

Powertrac Genuine Engine Oil

Powertrac Genuine Gear Oil

Escorts Construction Equipment Limited

The range of material handling and construction equipment products are manufactured and marketed under the brand ECEL (Escorts Construction Equipment Limited). ECEL has earned market leadership through constant innovations of product technology and features. ECEL has come to be synonymous with Strength, Reliability and Sophistication.

Hydraulic Mobile Cranes

3600 Slew Cranes

Compactors

Forklifts

Articulated Boom Cranes

RAILWAY EQUIPMENT

An ISO: 9001-20000 certified company, Escorts manufactures railway equipment as per international standards specified by UIC, AAR and Indian Railways. Asias largest manufacturer of air brake systems, the conversion of vacuum brake stocks to air brakes and installation and commissioning of complete brake systems on new builds are also undertaken by Escorts.

Diverse product range: Shock Absorbers (Oil Dampers) for coaches, locomotives, EMUs, MEMUs, DMUs, Metro and Rail Cars Air brakes for coaches, Freight cars, DMU and OHE Cars Automatic/Semi Permanent Couplers for EMUs, DEMUs, MEMUs Electro Pneumatic Brake Systems for EMUs and MEMUs Composition brake blocks for coaches, locomotives, freight cars and EMUs Rail fastening systems for wooden, steel and concrete sleepers Direct Admission Valves for vacuum braked coaches Testing equipment for brake systems and shock absorbers Air brake accessories for passenger coaches, freight cars, locomotives and self propelled vehicles Metal to rubber bonded vulcanized components Automatic twist locks for container freight cars

Air Brake Hose Couplings

Angle Cocks

Brake Beam Mounted Brake System

Distributor Valves

Slack adjuster

AUTO COMPONANT Escorts leadership in auto suspension products in India comes through continuous improvement in manufacturing technology and expansion of product range to cater to OEMs of all vehicle categories, including passenger cars, commercial vehicles, multi-utility vehicles, motorcycles, scooters and mopeds.

Indian Motorcycles/Scooters/Scooterettes

Part No. 3220

Part No. 3241

Part No. 3280

Part No. 3234

Part No. 3247

Part No. 3267

Part No. 3276

Part No. 6710

Part No. 3298

DATA

COLLECTION AND DATA ANALYSIS

DATA ANALYSIS & PRESENTATION

QUESTION 1: DOES YOUR ORGANIZATION THE EMPLOYEE WELFARE SCHEMES?

/COMPANY FOLLOW

YES 100

NO 0

120 100 followers 80 60 40 20 0 yes no answerof follwers Series1

INTERPRETION: Out of 100 employees surveyed, all are agreed that there are welfare schemes in their organization/company.

QUESTION 2: WHAT IS /ARE THE MAIN OBJECTIVE(S) BEHIND WELFARE?

EMPLOYEE

OBJECTIVES NO.OF PERSONS Help to motivate and retain employees. 30 Loyalty in workers towards the organization 20 To minimize social evils such as 6 alcoholism, gambling etc. Helps to improve the local image of the 38 company All of above 6

MOTIVATE AND RETAIN EMPLOYEES LOYALTY TOWARDS ORG. MINIMISE SOCIAL EVILS IMPROVE LOCAL IMAGE

INETERPRETATION:

ALL OF ABOVE

Out of 100 people surveyed, 38% employees said that welfare schemes helps in improving the image of the company. 30% says motivate to do work in this organization, 20% are loyal because of goods welfare schemes and 6% helps in minimizing the social evils among the employees

QUESTION 3: WHO MAKES THE EMPLOYEE WELFARE SCHEMES/POLICIES?

MAKERS Immediate superior Specialized committee Personnel department Dont know

NO. OF PERSONS 11 25 24 40

Immediate superior specialized committee personnel department don't know

INTERPRETATION: Out of 100 people surveyed, 40% of people doesnt know who made welfare schemes for them. 11% says immediate superior made, 25% says specialized committee and 24% says personnel department.

QUESTION 4: ARE YOU SURE SATISFIED WITH EMPLOYEE WELFARE SCHEMES IN THE ORGANIZATION ?

Thinkers Always Sometimes Never

NO. OF PERSONS 50 40 10

50 40 30 20 10 0

Series1

1/1/1900

never 1/3/1900 always

no. of persons

INTERPRETATION:

Out of 100 persons 50% are always satisfied from the welfare schemes of the company, 40% are satisfied and 10% never satisfied from the welfare schemes.

QUESTION 5: DO YOU THINK THAT WELFARE WHICH HAS BEEN DONE IS FAIR TO ALL WORKERS? YES 80 NO 20

100 80 60 40 20 0 YES NO NO. OF PERSONS Series1

INTERPRETATION: Out of 100 people surveyed, 80% says welfare schemes are fair to all workers and 20% says not fair to all workers.

QUESTION 6: HAVE YOU NOTICIED ANY MISTAKE REGARDING EMPLOYEE WELFARE SCHEMES?

Implication Every time Sometimes Never

NO. OF PERSONS 10 30 60

70 60 50 40 30 20 10 0 1 no. of persons

every time sometimes never

INTERPRETATION:

Out of 100 people surveyed, 60% people says there is no mistake in welfare schemes, 30% says sometimes there is mistake done by the management and 10% says there is always mistake in welfare schemes

QUESTION 7: ARE YOU SUFFICIENTLY UTLIZING THE WELFARE SCHEMES PROVIDING BY THE COMPANY?

YES 90

NO 10

1 NO. OF PERSONS 85 90 95 100

1 NO YES 10 90

INTERPRETATION:

Out of 100 people surveyed, most of people are availing the welfare schemes i.e. 90%, only 10% people are not availing welfare schemes sufficiently.

QUESTION 8: WHAT ARE THE TOOLS AND TECHNIQUES ADOPTED FOR THE WELFARE SCHEMES?

Type of implication Proper format First come first serve basis No method

No. of persons 80 18 2

100 50 0 n o . o f p e r so n s

3 2 1 0 1 p r o p e r fo rm a t p ro p e r fo rm a t fc fs no m e tho d

INTERPRETATION:

Out of 100 people surveyed, most people say proper format is there for availing welfare schemes of the company i.e. 80% and 25 says there is no method for availing welfare schemes.

QUESTION 9: DO YOU RECEIVE ANY HELP FROM YOUR MANAGEMENT BESIDES ANY WELFARE SCHEMES? Implication ALWAYS SOMETIMES NEVER NO. OF PERSONS 35 58 7

no.of persons

always sometime never

INTERPRETATION: Out of 100 people surveyed, 35% says management helps them besides welfare schemes, 58% says on some occasion management helps them besides welfare schemes and 7% says there is no help from the side of management.

QUESTION 10: IS WELFARE SCHEMES PROVIDING BENEFICIAL TO YOU IN ENHANCING YOUR PRESENT LIVING OF STANDARD?

YES 70

NO 30

YES NO

INTERPRETATION: OUT of 100 people surveyed, 70% people agreed that welfare schemes have increased their standard of living but 30% are not agreed to this statement

QUESTION 11: DO YOU WANT ANY CHANGES IN THE METHOD / POLICIES OF EMPLOYEE WELFARE?

YES 98

NO 2

YES NO

INTERPRETATION: Out of 100 people surveyed, 98% people doesnt want any changes in existing welfare schemes, only 2% people want the change.

DATA ANALYSIS The analysis was done for frequency distribution. And in this I have used

tabulation technique of data analysis.

FINDINGS OF THE STUDY

FINDINGS
During my training I found that Most of the employees are satisfied with employee welfare schemes of the Written notice should be given to the personnel department in advance before The trust provides financial assistance in case where the employees has medical organization. availing any welfare schemes. expenses on treatment of self or the family members beyond his coverage /limits under any of the scheme of the company. There are so many formalities before availing welfare schemes Written notice with your signature and E.I. no. and department. Filling of application form before availing any scheme. If a benefit is taking for long sickness, then the claims should be certified from Reason behind taking welfare scheme. A worker can avail some schemes of welfare when he completed some specific Many employee take unduly advantage of the welfare schemes

ESIC or by the companys medical officer.

year while working in the organization.

CONCLUSIONS AND SUGGESTIONS

Recommendations and conclusions

LIMITATIONS OF THE STUDY

On the basis of my study following are the major recommendations. Sample size, which I have taken, is very small, on the basis of which efficient Co-operation of respondents: this has been a major problem. Employees were Another constraints has been regarding cost since study involves the collection

decisions can not be taken. reluctant to fill the questionnaire or face the interview. of primary and secondary data. Therefore the cost incurred was much more. Due to constraints the coverage of the study could not be extended to more customers. Our knowledge is limited as we are students and does not have much Managers and employees of the company are hesitating to disclose the experience. information.

CONCLUSION

In the end I like to conclude that: The Employee Welfare Scheme provided by the ESCORTS is very good for

employees, but many employees take unduly advantage of it and sum employees do not know how to avail the welfare policies. Trust provides financial beyond his limit under any of the scheme of the The welfare scheme provide by the company is fulfilling all the statutory and Employees are very happy with the welfare schemes of the company and they company. non-statutory provisions. do want any changes in it.

In the end, I would like to conclude that besides having a very good welfare schemes running by the organization, the managers of the company specially personnel managers should take care that, no employee take unduly advantage of the welfare policies and the employees who do not sufficient knowledge about welfare policies, they should guide them. And each and every employee should be treated equally.

SUGGESTIONS
Suggestions received from the respondents of the questionnaire: The following are the suggestions received from the respondents of the questionnaire. The suggestions are based on their experience regarding welfare schemes for the workers. Extension of bus facilities of local conveyance should be improved. Periodic surveys to know the opinion of the employees should be conducted and findings should be implemented. Formalities for availing the welfare schemes should be reduced. The welfare services should be fast and any problem related to the employees A yearly welfare calendar should be printed and distributed among all There should be no biased decision taken by the managers while providing any The employees who should take undue advantage of welfare schemes should be

should be tracked within short span of time. employees. help besides welfare schemes of the company. given warning not to do these type of activities again. In the end, I can say that ESCORTS is doing its best efforts in providing A welfare services which are universal to their employees and have made them leader in the market, but even then ESCORTS should consider the problems faced by their employees while availing its services.

BIBLIOGRAPHY

BIBLIOGRAPHY

Text books: a. house (2nd edition). b. c. d. e. G.C.BERI , MARKETING RESEARCH ,tata McGraw hill publications (3rd edition) K. ASWATHAPPA, PERSONNEL MANAGEMENT MC GRAW hill publications (4th edition ). C.B.MAMORIA PERSONNEL MANAGEMENT (2nd edition). V.K. SHARMA HUMAN RESOURCES MANAGEMENT(3rd edition). C.R. KOTHARI, RESEARCH METHODOLOGY, new age publication

Websites: www. Escortsagri .com www. Escorts agri machinery group.com www.google.com http://www.hongkong post.com/eng/services/brames/fag/index.httm.

Who can benefit from this service?

Hongkong Post - Bulk Registered Air Mail Service(online) http://www.Arkbluecross.com/faq/feb.aspx

Are routine eye exams covered under the Federal Employee Service Benefit Plan?

QUESTIONNAIR E

Annexure or questionnaire Employee welfare

NAME ------------------DEPTT.. Q1. Does your organization follow the employee welfare schemes? YES NO E.I. NO...

Q2. What is/are the main objectives behind employee welfare? II. III. IV. V. VI. Help to motivate and retain employees Loyalty in workers towards the organization. To minimize social evils such as alcoholism, gambling. Etc. Helps to improve local image of the company. All of the above. Q3. Who makes the employee welfare schemes/policies? I. II. III. IV. Immediate superior Specialized committee Personnel department Dont know Q4. Are you satisfied with employee welfare schemes in the organization? Always sometimes never

Q5. Do you think that welfare which has been done is fair to workers? Yes no

Q6. Have you noticed any mistake regarding employee welfare schemes? Every time sometimes never

Q7. Are you sufficiently utilizing the welfare schemes providing by the company? Yes no

Q8. What are the tools and techniques adopted for the welfare schemes? 1. 2. 3. proper format first come first serve basis no method Q9. Do you receive any help from your management besides any welfare Schemes? Always sometimes never

Q10. Is welfare schemes providing beneficial to you in enhancing your Present living of standard? Yes no

Q11. Do you want any changes in the method /policies of employees Welfare? Yes Q12. Any kind of suggestions no