Executive Summary

Sr.
Observation
No.
1 Canteen coupons should be issued through SAP

2 Payment should be done only after receiving proof for previous month PF challans payment.

3 Cost Center for employees in the HR master should be updated.

4 Training should be conducted for the employees.

5 Medical check should be done mandatorily for the employees from defined hospitals.

6 All agreements must be signed & stamp by all signatories.

7 Mahavir’s agreement should be revised with the details of manpower.

8 All labour bills raised should be free from corrections and overwriting.

9 Contractors should be asked to raise the bills as per the timeline of the agreement.

10 Penalty should be charged for employees working without wearing PPE at work-stations.

11. Contractors bill should be paid after verification based on working hours.

12. Mandatory supporting documents should be filed in employee’s personnel file.

13. Physical attendance of employees should be cross verified with Kronos.

VSL - Wires Division : 2500

 HR
1. Canteen coupons should be issued through SAP

Observation Risk Recommendations Management action

Risk Category H
• Canteen coupons issued to employees ,contract labour • Chances of inaccurate
& guests are not recorded in system. deductions for canteen
• Coupons issued are recorded in register however the charges while calculating the
amount payable to
same were found incomplete as record of receipt
contractors.
coupons, returned coupons & coupons issued to Guest • Number of workers availing
were not found.
benefits of canteen are not
• Reconciliation is not done for the coupons. determined with accuracy.
• Canteen coupons issued HR REMARKS:
must be routed through Started the working and also
SAP. reconciliation has been
• Also monthly practicing as per Management
reconciliation statement Guidelines.
should be prepared &
sent to F &B timely.

Implementation Timeline:

Nov 2014
Root cause analysis :

People P
Process P Implementation
Technology Responsibility:

Mr. Manoj Dave

Source data : Plant Head: VSL-Wires Division
Report: Register prepared by HR
Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500

 HR
2. Payment should be done only after receiving proof for previous month PF challan’s payment

Observation Risk Recommendations Management action

Risk Category H
As per clause no 14 of agreement, copies of challan’s for • Non payment of PF amt. • An amendment should be HR REMARKS:
statutory payments should be handed by contractor to • Company may be asked for done in agreement for
company however in case of 3 contractors, no challan’s the default payments. clause as “Payment would PF is being managed & taken
• Fraud. be done for the current care by Payroll for all units.
were received from them & payment for the bill has been
month only after Suggestions has well taken
done. and challan copy will be
receiving the challan’s
referred while processing of
copy for previous month Nov 14 bills.
of PF & other statutory
Root cause analysis : payments.
• Payment should be done Implementation Timeline:
only after receiving the
People P proof for previous Nov 2014
Process P months
payment.
PF challan’s

Technology
Implementation
Responsibility:
Source data :
Mr. Manoj Dave
Report: Agreement of contractors Plant Head: VSL-Wires Division
Refer : Annexure - 1
Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500

 HR
3. Cost Center for employees in the HR master should be updated

Observation Risk Recommendations Management action

Risk Category H
HR REMARKS :
While verifying the strength of the employees, four • Non updated master. • Cost centre should be
employees were found in cost center other than VSL - • Incorrect employees master. updated in the HR It has already updated in SAP
Wires Division though working in the said Plant. master. and thanks for brought in our
knowledge.

Implementation Timeline:
Root cause analysis :

People P
Process P
Technology Implementation
Responsibility:

Source data : Mr. Manoj Dave

Plant Head: VSL-Wires Division
Report: ZHR_master

Refer: Annexure - 2 Mr. S. K. Rajesh

Asst. Manager - HR

VSL - Wires Division : 2500

 HR
4. Training should be conducted for the employees

Observation Risk Recommendations Management action

Risk Category H
HR REMARKS :
The Training needs of corporate plant employees are not • Inadequate Training. • Format of form for
identified & consolidated into a single pager user training • Inappropriate Training. identifying the training TNI already with HR and we
needs. Formal Survey in the form of soft or hard skill for • Un-Trained Employees. needs should be will start on regular/ weekly
• Lesser Productivity. designed & same should basis for our employees – Nov
employees is not conducted by the HR Team.
be circulated to 2014.
departmental HODs and
individual Employees for
identification of training
needs. Implementation Timeline:
• The said activity should
Root cause analysis :
be conducted at the Nov 2014
beginning of every
People P financial year.
Implementation
Process P • Training would help the
employees to explore Responsibility:
Technology the talent and would be
Mr. Manoj Dave
able to give their best.
Plant Head: VSL-Wires Division

Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500

 HR
5. Medical check should be done mandatorily for the employees from defined hospitals

Observation Risk Recommendations Management action

Risk Category H
The Medical Checkup is not undertaken at the defined / • Physically & medically unfit
prescribed hospitals, with whom the company could have employee joining the
tie-up, whereby important pathological tests like CBC, company.
• Higher number of sick leaves
sugar fasting, blood pressure, urine, ECG, etc could be
& other leaves of such
done to identify the medical fitness of the employee. Also,
an employee has to seek medical fitness certificate from a employee.
certified registered medical practioner, stating that he is • Lower productivity.
physically fit & competent to work. • Lower shelf life.
• Difficulty by an employee in
execution of routine office or
Root cause analysis : plant work.
• The Company should HR REMARKS:
have tie-up with the
hospital for conduct of Suggestion well taken we have
medical tests prior to already made a proposal for
joining of an employee. management review, will start
Jan 2015.
• The positive & favorable
outcome of such medical
tests should be made as
a pre-requisite for Implementation Timeline:
joining the Company.
Jan 2015

People P
Process P
Technology Implementation
Responsibility:

Mr. Manoj Dave

Plant Head: VSL-Wires Division

Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500

 HR
6. All agreements must be signed & stamp by all signatories

Observation Risk Recommendations Management action

Risk Category H
HR REMARKS:
Agreements of labour contractors were found with, no • Legally unenforceable in • All agreement must be
signatures, incomplete signatures & also with no stamp of court of law. signed & stamped by all Only date contract; change is
contractor. signing authorities. required, will be done in Nov
2014 itself.

Implementation Timeline:

Nov 2014

Root cause analysis :

Implementation
People P Responsibility:
Process P Mr. Manoj Dave
Technology Plant Head: VSL-Wires Division

Source data : Mr. S. K. Rajesh

Asst. Manager - HR
Xerox copy of agreement of contractors

VSL - Wires Division : 2500

 HR
7. Mahavir’s agreement should be revised with the details of manpower

Observation Risk Recommendations Management action

Risk Category H
The agreement of Mahavir was made on company's letter • Legally unenforceable in • Agreement must be
head and not on legal stamp paper. Also supply of court of law. rectified. HR REMARKS:
manpower is not mentioned in agreement. • No clarity regarding supply
of manpower may lead to Details of manpower has
adverse supply. already approved by HODs
unit head. Paper has affixed to
avoid repercussions.

Implementation Timeline:

Root cause analysis :

People P Implementation
Process P Responsibility:
Technology Mr. Manoj Dave
Plant Head: VSL-Wires Division
Source data :

Xerox copy of agreement of contractors Mr. S. K. Rajesh

Asst. Manager - HR

VSL - Wires Division : 2500

 HR
8. All labour bills raised should be free from corrections and overwriting

Observation Risk Recommendations Management action

Risk Category H
While verification, it was observed that lots of over • May lead to confusion while
writings were made on the bill. entering in SAP
• Chances of mistake while
making payment.
• Bills raised by the HR REMARKS:
contractors should be
clean , precise & free
from errors. Suggestions well taken and
will try to avoid in Nov,2014
bills.

Implementation Timeline:
Root cause analysis :
Nov 2014
People P Implementation
Process P Responsibility:

Technology Mr. Manoj Dave

Plant Head: VSL-Wires Division
Source data :

Xerox copy of bill of contractors Mr. S. K. Rajesh

Asst. Manager - HR

VSL - Wires Division : 2500

 HR
9. Contractors should be asked to raise the bills as per the timeline of the agreement

Observation Risk Recommendations Management action

Risk Category H
As per clause 3.4, the service provider has to raise the bill • Delay in clearing the bills.
within 3 days from the end of each month however there • Delay in booking of the bills.
was delay found in booking of the bills. • Costing of the product would
be not be accurate.
• Contractors should be
enforced to raise the bills
within 3 days after the
end of the month.
HR REMARKS:
Suggestion well taken and will
chase to contractors for
submitting the bills latest by
3rd of month.

Root cause analysis :

Implementation Timeline:

People P Immediate
Process P Implementation
Technology Responsibility:

Mr. Manoj Dave

Source data : Plant Head: VSL-Wires Division

Report: FBL1
Mr. S. K. Rajesh
Refer: Annexure - 3 Asst. Manager - HR

VSL - Wires Division : 2500

 HR
10. Penalty should be charged for employees working without wearing PPE at work-stations

Observation Risk Recommendations Management action

Risk Category H
As per the agreements penalty clause, if worker work with • Non compliance of terms of
no PPEs at work-stations, Rs. 50/- should be deducted agreement.
from the salary however no such deduction was done.
HR REMARKS:
• Penalty should be
deducted in cases where Already started and will take
the workers work without care while processing
PPEs at work stations. Nov,2014 Salary.

Root cause analysis :

Implementation Timeline:

Nov 2014
People P
Process P
Technology
Implementation
Source data : Responsibility:

Report: Agreement of contractors Mr. Manoj Dave

Plant Head: VSL-Wires Division

Refer: Penalty clause of Agreement’s annexure -I

Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500

 HR
11. Contractors bill should be paid after verification based on working hours

Observation Risk Recommendations Management action

Risk Category H
The mechanism to check the working hours of contract & • No disciplinary action in case • Working hours of labour HR REMARKS:
company employees does not exist. Payment was of short working hours per must be reviewed before
processed on the basis of present & absent status of day. contractors' bills Will be monitored closely to
• Loss of production. processing. The avoid any payroll errors.
workers.
requirement is to be
placed to kronos
consultant to provide Implementation Timeline:
Root cause analysis : monthly attendance
report showing the Immediate
People P working hours of each
employee.
Process P
Technology
Implementation
Responsibility:
Source data :
Mr. Manoj Dave
Plant Head: VSL-Wires Division
Report: Annexure - 4

Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500

 HR
12. Mandatory supporting documents should be filed in employee’s personnel file

Observation Risk Recommendations Management action

Risk Category H

In few cases it was found that the employee personnel file • Incomplete personnel • Supporting document HR REMARKS:
maintained by HR have incomplete supporting document documentation of should be taken by the
like pan card, residence proof, ID proof, medical report company’s employees. employee at the time of It happens some times for
joining. workers category only, but we
etc.
will take care.

Root cause analysis : Implementation Timeline:

Immediate
People P
Process P
Technology
Implementation
Responsibility:
Source data :
Mr. Manoj Dave
Plant Head: VSL-Wires Division
Report: Annexure - 5

Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500

 HR
13. Physical attendance of employees should be cross verified with Krono’s

Observation Risk Recommendations Management action

Risk Category H
Physical attendance does not match with attendance in • Consumes lot of time to
kronos due to miss-punches, shift schedule not updated & reconcile the attendance.
other technical reasons. • Chances of wrong payments
due to lot of manual
calculations.
• Reconciliation is not done.
Root cause analysis :
People P database.
• An single window ESS HR REMARKS:
system should be
implemented, paper work Suggestion well taken and will
should be reduced for the keep close monitoring to
needful updations & avoid any wrong pay-outs.
proper sanction authority
should be defined for the Implementation Timeline:
same in order to ensure
the sanctity of the Immediate

Process P Implementation
Technology Responsibility:

Mr. Manoj Dave

Source data : Plant Head: VSL-Wires Division

Refer: Annexure - 6
Mr. S. K. Rajesh
Asst. Manager - HR

VSL - Wires Division : 2500