PROJECT REPORT

On
“HR and Financial Manual for CSR Society”
At TATA Motor.

Submitted by: -
SAARIYA HASAN
Under the guidance of,
Mr. Santosh Kumar
DGM- CSR
TATA Motors Ltd., Lucknow.

Master of Business Administration.

Isabella Thoburn College (Professional Studies)

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 DECLARATION
I hereby declare that the project work entitled ―HR and Financial Manual for CSR
Society is an authentic record of my own carried out at ―Tata Motors Ltd.,
Lucknow as requirement of four-week project for degree of Master of Business
Administration in Isabella Thoburn college (professional studies) Lucknow under
guidance of ―Mr. Santosh Kumar during (15 may 2023 to 14 June 2023).

Date: - 13 June ‘23 SAARIYA HASAN

MBA(HR)

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 ACKNOWLEDGEMENT
I take this opportunity to express my heartiest thanks and profound gratitude to
TATA MOTORS Lucknow for their sound guidance throughout the course of this
project. They have thought me the rudiments of the subject which helps me to
overcome all the challenges and defend the results in the best possible way. The
blessing, help and guidance given by them from time to time shall carry me a long
way in journey of life on which I ‘m about to embark.
I would like to express sincere gratitude to my project supervisor Mr. Santosh
Kumar DGM-CSR, TATA MOTORS LTD., Lucknow for providing me the
opportunity of taking part in project work. I am so deeply grateful for his help,
professionalism and valuable guidance throughout this project that I do not have
enough words to express my deep sincere appreciation.
Special thanks goes to all my friends, my co-workers and my seniors at TATA
MOTORS for their kind co-operation and moral support for timely completion of
the work. Last, but not the least, my indebtedness remains towards my family
members for their constant encouragement and support in all possible respects
throughout the duration of my MBA programme.

Date: - SAARIYA HASAN

MBA (HR)
I.T. College (P.S)
Lucknow.

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 INTRODUCTION
India is an emerging country with huge potential. The domestic economy is now
growing at around 9-10% per annum and India ‘s importance in global terms is being
reinforced by rapidly rising exports and domestic consumption. At a time when
numbers of a slowdown and overheating in the Indian economy have started gaining
momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the
trillion-dollar (42,00,000 crore) mark.
The automotive industry is at the center of India ‘s new global dynamic. The
domestic market expanding rapidly as incomes rise and consumer credit becomes
more widely available. Manufacturer ‘s product lines are being continually
expanded, as is the local automotive manufacturing base. Expectation are high that
India can develop as a global hub for vehicle manufacturers and as an outsourcing
center that offers the global automotive industry solution high up the automotive
value chain.
➢ India eyes 25 million automotive jobs.
➢ India's GDP is set to double over the next decade
➢ In percentage terms, the automotive industry's contribution should also
double.
➢ In dollar terms, the sector's contribution is set to quadruple to some $145bn.
The automobile industry in India accounts for a business volume of $45 billion and
has the potential to grow much faster both through Indian as well as international
manufacturers who have established huge facilities in the country.
With the world ‘s second largest and fastest-growing population, there is no denying
India ‘s potential in both economic and population terms and the effect it will have
on the auto industry in the years to come.
The country is already off to a good start, with a well-developed components
industry and a production level of 1 million four-wheeled vehicles a year, plus a
further 5 million two- and three-wheelers.
The implications, market drivers and scope of a future massive Indian vehicle
market are covered in the India Strategic Market Profile, a brand-new forecast of
Indian automotive and related activity to 2020. Based on Max Pemberto's unique
relational long-term forecasting model, it forecasts car and CV sales, demographics,

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materials usage, auto industry employment, and explains their inter- year of healthy
growth in auto industry.

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 COMPANY PROFILE
TATA GROUP
Tata is a rapidly growing business group based in India with significant international
operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251, 543
crore), of which 61 per cent is from business outside India. The Group employs
around 350,000 people worldwide. The Tata name has been respected in India for
140 years for its adherence to strong values and business ethics.
The business operations of the Tata Group currently encompass seven business
sectors: communications and information technology, engineering, materials,
services, energy, consumer products and chemicals.
The Group ‘s 27 publicly listed enterprises have a combined market capitalization
of some $60 billion, among the highest among Indian business houses, and a
shareholder base of 3.2 million. The major companies in the Group include Tata
Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals,
Tata Tea, Indian Hotels and Tata Communications
The Group ‘s major companies are beginning to be counted globally. Tata Steel
became the sixth largest steel maker in the world after it acquired Corus. Tata Motors
is among the top five commercial vehicle manufacturers in the world and has
recently acquired Jaguar and Land Rover. TCS is a leading global software
company, with delivery centers in the US, UK, Hungary, Brazil, Uruguay and China,
besides India. Tata Tea is the second largest branded tea company in the world,
through its UK-based subsidiary Tetley. Tata Chemicals is the world ‘s second
largest manufacturer of soda ash. Tata Communications is one of the world’s largest
wholesale voice carriers.
In tandem with the increasing international footprint of its companies, the Group is
also gaining international recognition. Brand Finance, a UK-based consultancy firm,
recently valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top
100 brands in the world.

Business week ranked the Group sixth amongst the World ‘s Most Innovative
Companies. And the Reputation Institute, USA, recently rated it as the World ‘s
Sixth Most Reputed Firm.

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Founded by Jamsetji Tata in 1868, the Tata Group ‘s early years were inspired by
the spirit of nationalism. The Group pioneered several industries of national
importance in India: steel, power, hospitality and airlines.
In more recent times, the Tata Group ‘s pioneering spirit has been showcased by
companies like Tata Consultancy Services, India ‘s first software company, which
pioneered the international delivery model, and Tata Motors, which made India ‘s
first indigenously developed car, the Indica, in 1998 and recently unveiled the world
‘s lowest-cost car, the Tata Nano, for commercial launch by end of 2008.
The Tata Group has always believed in returning wealth to the society it serves. Two
thirds of the equity of Tata Sons, the Tata Group ‘s promoter company, is held by
philanthropic trusts which have created national institutions in science and
technology, medical research, social studies and the performing arts.
The trusts also provide aid and assistance to NGOs in the areas of education,
healthcare and livelihoods. Tata companies also extend social welfare activities to
communities around their industrial units. The combined develop men related
expenditure of the Trusts and the companies amounts to around 4 per cent of the
Group ‘s net profits.
Going forward, the Group is focusing on new technologies and innovation to drive
its business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another Tata company), which in 2008 is ranked the
world ‘s fourth fastest.
The Group aims to build a series of world class, world scale businesses in select
sectors. Anchored in India and wedded to its traditional values and strong ethics, the
Group is building a multinational business which will achieve growth through
excellence and innovation, while balancing the interests of its shareholders, its
employees and wider society.

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 INTRODUCTION TO CSR
Literature Review

The concept of CSR originated in the 1950‘s in the USA but it became prevalent
in early 1970s. At that time US had lots of social problems like poverty,
unemployment and pollution. Consequently, a huge fall in the prices of Dollar were
witnessed. Corporate Social Responsibility became a matter of utmost importance
for diverse groups demanding change in the business. During the 1980‘s to 2000,
corporations recognized and started accepting a responsibility towards society.
Corporate social responsibility (CSR) focuses on the wealth creation for the optimal
benefit of all stakeholders – including shareholders, employees, customers,
environment and society. The term stakeholder, means all those on whom an
organization's performance and activities have some impact either directly or
indirectly. This term was used to describe corporate owners beyond shareholders as
a result of a book titled Strategic management: a stakeholder approach by R. Edward
Freeman in the year 1984.

According to Bowen, ―CSR refers to the obligations of businessmen to pursue

those policies to make those decisions or to follow those lines of relations which are
desirable in terms of the objectives and values of
our society. ―Frederick (1960) stated Social responsibility means that businessmen
should oversee the operation of an economic system that fulfills the expectations of
the people Davis (1960) argued that social responsibility is a nebulous idea but
should be seen in a managerial context. He asserted that some socially responsible
business decisions can be justified by a long, complicated process of reasoning as
having a good chance of bringing long-run economic gain to the firm, thus paying it
back for its socially responsible outlook.

An ideal CSR has both ethical and philosophical dimensions, particularly in India
where there exists a wide gap between sections of people in terms of income and
standards as well as socio-economic status. Goyder (2003) argues: ―Industry in the
20th century can no longer be regarded as a private arrangement for enriching
shareholders. It has become a joint enterprise in which workers, management,
consumers, the
locality, govt. and trade union officials all play a part. If the system which we know
by the name private enterprise is to continue, some way must be found to embrace
many interests whom we go to make up industry
in a common purpose. CSR implies some sort of commitment, through corporate
policies and action.

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Operational view of CSR is reflected in a firm ‘s social performance, which can be
assessed by how a firm.
This manages its societal relationships, its social impact and the outcomes of its
CSR policies and actions (Wood, 1991).

CSR Activities performed by TATA Group

Tata Motors has harmonized its CSR initiatives Pan-India through a Common
Minimum Programme across locations, while at the same time, in response to local
need assessments, it has built agility and flexible into its CSR initiatives via Location
Specific Projects.
➢ The Company’s CSR programmes are selected, planned and designed based
on inputs from its stakeholders and material issues identified via a structured
process.
➢ The CSR Programmes of Tata Motors are rolled out at seven locations across
the country.
➢
The CSR policy and the CSR Strategy of the Company act as guidelines for
implementing the programmes across locations.
➢
Local needs of the community
➢
India’s National priorities
➢
UN Sustainable Development Goals

CSR APPROACH

Tata Motors follows the proximity linked approach for its CSR projects, which
translates into a desired percentage of its CSR spend being allocated on the basis of
the radial distance of communities from its plants

CSR MISSION

” Being a responsible corporate citizen driving inclusive growth, social equity,

sustainable development and nation building” is the stated purpose of Tata Motors.

THE TENETS OF CSR STRATEGY

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 ➢ ADOPTING HUMAN LIFE CYCLE APPROACH.
➢ UPSTREAM & DOWNSTREAM LINKAGES.
➢ PHILOSOPHY OF ‘MORE FROM LESS FOR MORE’.
➢ LEVERAGING ALL STAKEHOLDERS.
➢ MEASURING SOCIAL CAPITAL.
➢ LEVERAGING TECHNOLOGY.

Tata Motors’ strategic objective is to consolidate and focus programmes that have a
high and meaningful impact on communities.

The corporate social responsibility activities performed by TATA GROUP are

following:

1) Aarogya (health)
2) Kaushalya (Employability & Skill)
3) Vidyadhanam (Education)
4) Amrutdhara (water)
5) Aadhaar (Affirmative)
6) Seva (Volunteering)
7) Vasundhara(Environment)

In order to leverage the demographic dividend of our country, Company’s CSR

efforts shall focus on Health, Education, Employability and Environment
interventions for relevant target groups, ensuring diversity and giving preference to
needy and deserving communities inhabiting urban and semi urban India. Company
shall also develop a CSR annual action plan covering details of the program, manner
of execution, modality of utilization, monitoring and reporting mechanism, and
impact assessment, wherever applicable. The company will continue its robust
monitoring and evaluation processes of all the CSR projects and programme.

CSR at TATA motors shall be underpinned by “More from Less for More”
philosophy which implies striving to achieve greater impacts, outcomes and outputs
from our CSR projects and programmes by judicious investment and utilization of
financial and human resources, engaging in like- minded stakeholder partnerships
for higher outreach benefiting more lives. Company shall disburse milestone linked
payment to the CSR implementing partners.

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11
 ORGANISATION STRUCTURE AND GOVERNANCE

CSO
PUNE

Head CSR
Mumbai

DGM, CSR DGM, CSR DGM, CSR Sr. Manager, Sr. Manager, Sr.Manager
CSR CSR , CSR

Jamshedpur Pune Lucknow Sanand Pantnagar Dharwad

ER, CSR & Skilling leads of locations overseeing the deployment of CSR as DEMs.

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 CSR AT TATA MOTORS LUCKNOW.

In sync with the TATA Tradition, TATA Motors is committed in world and in spirit
towards Corporate Social Responsibility. It is a signatory to United Nation Global
Compact and is engaged in Community and social initiatives on labour and
environment standards in compliance with the principles of the Global Compact.

Societies
The corporate social responsibility at Lucknow is Carried out through two societies
Samaj vikas Kendra (SVK) and Jan parivar Kalyan Sansthan (JPKS). SVK
looks after the education, employability & Environment needs while JPKS take care
of medical and health needs of the surrounding community.

Samaj Vikas Kendra is registered under the society registration act of 1860 and
has 80G &12A exemption under Income Tax. It was initiated in 1996 with 3 villages
keeping in mind the objective of sustainable development of the community and its
resources & now impacts 28 villages of Lucknow and Barabanki districts impacting
about 30000 lives, SVK’s objective is aligned with philosophy laid by TATA
COUNCIL OF COMMUNITY INITIATIVES. It has taken the lead in assembling
strength of the villagers to ensure a community based approach, sharply focused
strategies and implementation through community participation.
The society, since its inception in 1996, has continued to build an enduring
relationship with the community through its various programmers and strategies.
Project under SVK
1) Education
The primary focus of the education programme is to improve the quality of
education. The society is currently working with 15 Government primary, Middle
and Intern schools of 29 villages. The key activities include:
➢ Infrastructure Support for primary schools.
➢ Support to teaching learning material.
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 ➢ Support for teacher training.
➢ Support to school dropouts

2) Employability
The prime focus of the employability program is to create livelihood and
employment opportunities for the poor and marginalized. Major programmes are-
➢ Vocational training for the village women and youth (in partnership with Jan
Shikshan Sansthan)
➢ Training on the automotive and non-automotive trades for youth (in
partnership with different agencies)
➢ Training youth on developing enterprises
➢ Formation of women self-help groups (SHGs)

3) Environment
Its prime objective is increasing the green cover through the afforestation process
and sensitizing the stakeholders for the judicious use and preservation of the natural
resources. The major programmes are:
➢ Plantation of sapling in surrounding villages and schools (in partnership with
the village panchayat)
➢ Infrastructure development (In partnership with village panchayat).

Projects under JPKS

1) Health Initiatives
To reach the poor, Jan Parivar sansthan a society registered under societies Act 1860
came into being in year 2000 and has 29 villages where we provide regular health
services in the following ways
➢ Curative
➢ Preventive
➢ Free camps.

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 SMDF
For accessibility to safe drinking water SVK has installed 86 India Mark II, covering
almost 29 catchment villages with the contribution from SMDF (Sumant
Moolgaonkar Development Fund).

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 SOCIETY POLICY

• Human resource policies encourage the effective use of resources to meet

organizational objectives while guaranteeing the smooth and successful running
of the company.
• To make sure that the employee orientation and induction process gets off to a
strong start, so that the employee can readily adjust to the workplace.
• The employee's performance is evaluated based on their organizational behavior
using a variety of methods, including peer and self-evaluations, multiple grades,
and rewards for accurate appraisers. The employee is then informed of the results.
• The Grievance Redressal Policy aids in resolving employee issues inside an
organization.
• Disciplinary codes of conduct are crucial because they provide employees with
clear instructions on how to conduct themselves while carrying out their duties.
• Service rules help in maintaining lucidity and discipline, both of which are
necessary for the organization to achieve its objectives.
• Gender policy helps to make sure that all employees, regardless of gender, have
equal access to training, benefits for promotions, and chances for personal
development in the workplace.

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 HR RECRUITMENT & SELECTION

The primary objectives of the staffing policy and its implementation will be to align
the human resource with the strategic and operational requirements of the CSR and
to ensure full utilization and continued professional development of the workforce.
In all areas of hiring and choosing employees, candidates will have an equal chance
to compete for open positions.

Source of Recruitment
The following recruitment channels, as well as any others that the management
may choose, are to be used to find potential candidates:
o newspaper ads;
o job portal ads;
o internal job postings;
o employee referrals;
o any other media.

Eligibility criteria
o Candidate must have experience working with NGOs;
o Candidate must be familiar with the system;
o Candidate should have previous fieldwork experience.
o Excellent communication abilities.

Non-Eligibility
• People who have previously been sacked or fired from a job due to fraud or
forgery from any organization should not be eligible for employment at SVK.

• Those with a criminal record or those who have been found guilty of serious
offences under the law are ineligible for employment at SVK.

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• A contract stating as much is necessary to be signed by the workers. This will
lead to disciplinary action and service termination for any false statements
made.

Employment contract
Most of the Employee in CSR society are recruited on contract based which
is renewed every year.

Age limit.

NGO will not employ anyone under the age of 18. All employees must be 60
years old to retire.

Internal Search

The institute may open the position to its current employees through internal
notice followed by the standard interview process in certain instances of hiring
for key positions of a new project if the institute feels that the position should
preferably be filled from among the experienced SVK personnel for the greater
interest of the project. Each situation will define the selecting criteria.

Employee benefits

➢ Comprehensive health insurance is provided to employee and their dependent

family member
➢ A healthier work life balance
➢ Working mothers have a wide range of professional option
➢ It encourages employees to enroll in higher education programs as a people
oriented organizations so that they can pursue their ambitions of studying at
some of the country’s most prestigious universities.

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 Requisition for staff.

• It should, as much as is practical, include the job description or work profile

of the potential employees.
• Before the hiring process can start, the company must obtain a formal request
for new hires.
• If a candidate must have prior experience, it should be made clear how much
experience, from what kind of organization, and for how many years is
required.
• Clearly state the minimum academic requirement for the post, as well as the
competencies required.
• The request should also include the name of the project where s/he will be
absorbed and how long it will take.
• The estimated financial reward (Salary/CTC) for the project.
• Additional details supporting the recruitment
• In this regard, the Head CSR selected person shall submit the request.

In service Training
Additionally, as part of skill development, the unit must arrange in-service
training for the unit's personnel at least twice a year.

Working Hour
A clean, safe, and healthy workplace is what is intended for all employees.
The employees' working hours will be 8:30 a.m. to 5:00 p.m.

Weekly off
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 • There will a weekly off on Sundays for the employees.
• The employees will be given breaks for Tea of 10 mins each twice a day, and
a half hour meal break.
• Late arrival: If an employee is more than 10 minutes late on three days in a
month, they will lose half of their leave.

Pay System

Employees will get their compensation via check or bank transfer. The timesheet,
which must be completed on the last working day of each month and should reflect
time worked in various projects and funding categories, will be used to create the
check. The part-timers have the option of receiving payment in cash upon request.
Depending on the needs of the employees, the Head CSR may decide to pay a
portion of the wage in cash.

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 WORK ENVIRONMENT
The work environment of the CSR (Corporate Social Responsibility) can vary based
on the specific initiatives and projects undertaken. However, here are some aspects
that generally define the work environment in the CSR department:

Commitment to social impact: Tata Motors has a strong commitment to corporate

social responsibility and sustainability. The CSR department operates with the
objective of making a positive impact on society, focusing on areas such as
education, healthcare, environment, and community development.

Collaboration and teamwork: The CSR department often collaborates with various
internal departments, external partners, NGOs, and local communities. Teamwork
and collaboration are key to successfully implementing CSR initiatives and ensuring
effective engagement with stakeholders.

Multidisciplinary approach: CSR initiatives at Tata Motors involve diverse areas,

such as education, healthcare, skill development, environmental sustainability, and
rural development. This multidisciplinary approach provides opportunities for
professionals from different backgrounds to contribute their expertise and work
together towards common goals.

Employee engagement and volunteering: Tata Motors encourages employee

engagement in CSR activities. Employees have opportunities to volunteer and
participate in initiatives, fostering a sense of social responsibility among the
workforce. This engagement can range from volunteering for community projects to
participating in skill development programs.

Impact-driven projects: The CSR department at Tata Motors focuses on projects that
aim to create sustainable impact and address societal challenges. These projects may

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include initiatives related to education, healthcare, environmental conservation, road
safety, and rural development. The work environment emphasizes the importance of
achieving measurable and meaningful outcomes.

Stakeholder engagement: The CSR department engages with various stakeholders,

including local communities, government bodies, NGOs, and employees, to
understand their needs, collaborate on initiatives, and ensure transparency and
accountability.

Continuous learning and improvement: The CSR field is dynamic, and new
challenges and opportunities arise regularly. Tata Motors' CSR department promotes
a culture of continuous learning and improvement, staying updated on emerging
trends, best practices, and evolving social and environmental issues.

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 INTERNAL COMMUNICATION SYSTEM
Internal communication in the CSR (Corporate Social Responsibility) department at
Tata Motors is held at the VIBES platform. VIBES is a communication and
collaboration platform that facilitates effective and efficient communication among
employees within an organization.

The VIBES platform at Tata Motors serves as a central hub for sharing information,
updates, and announcements related to CSR initiatives and activities. It allows
employees in the CSR department to engage in real-time conversations, collaborate
on projects, and stay connected with colleagues across different teams or locations.

Key features of VIBES may include:

Messaging and Chat: Employees can use the platform to send direct messages or
engage in group chats, fostering quick and seamless communication.

News and Announcements: The platform enables the dissemination of important

news, updates, and announcements related to CSR initiatives, events, and
achievements within Tata Motors.

Document Sharing: VIBES allows users to share documents, reports, and other
relevant materials related to CSR activities. This feature promotes collaboration and
ensures that employees have access to the latest information.

Event Management: The platform may have features to manage and coordinate CSR
events, including registration, scheduling, and communication regarding event
details.

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Feedback and Surveys: VIBES might offer features to collect feedback and conduct
surveys among employees in the CSR department, facilitating continuous
improvement and employee engagement.
By using the VIBES platform, Tata Motors' CSR department can enhance internal
communication, streamline collaboration, and promote a sense of community among
its employees. This centralized platform helps ensure that everyone involved in CSR
initiatives remains informed, connected, and engaged.

In addition to the VIBES platform, Tata Motors also utilizes various other channels
for internal communication within its CSR department. These channels include:

Plant head Communication: Planted communication refers to formal or informal

communication channels established within the organization to share information,
updates, and announcements. It can include emails, newsletters, intranet portals, or
other designated platforms.

All Head Meets: All Head Meets are meetings where heads of different departments
within Tata Motors, including the CSR department, come together to discuss
organizational strategies, objectives, and initiatives. These meetings promote cross-
functional collaboration and alignment.

EXCOM Platforms:
a) JSC (Joint Soft Council): JSC is a platform that enables collaboration and
communication among different soft departments or teams within Tata Motors,
including CSR.
b) JDC (Joint Division Council): JDC serves as a platform for communication and
coordination among various divisions or business units within Tata Motors,
including CSR.
c) JMC (Joint Management Council): JMC is a platform where representatives from
management and union meet to discuss matters related to the organization, including
CSR activities.

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SDT (Self-Directed Team): SDT refers to a team within Tata Motors, including the
CSR department, that operates with a high degree of autonomy and self-
management. This team collaboratively makes decisions and handles responsibilities
related to their work.

SMT (Self-Management Team): SMT is a platform that facilitates communication

and collaboration between Tata Motors and its contractors. It allows for effective
coordination and mutual understanding regarding CSR initiatives and contractual
arrangements.

Other communication channels utilized by Tata Motors in the CSR department

include:

Planthead Morning Meet: Planthead Morning Meets are regular gatherings where
team members come together in the morning to discuss daily tasks, share updates,
and align their activities.
War Room Meeting: War Room Meetings are conducted for project reviews, crisis
management, or focused discussions on specific initiatives. They provide a dedicated
space for intensive collaboration and decision-making.
AGM (Annual General Meeting): The Annual General Meeting is a formal gathering
of stakeholders, including employees, shareholders, and management, where the
company's performance, strategies, and future plans are discussed.
Town Hall Meet: The Town Hall Meeting is an annual gathering held once a year,
where employees from across the organization, including the CSR department, have
the opportunity to engage with senior leadership, ask questions, and provide
feedback.
These various communication channels and meetings play crucial roles in ensuring
effective communication, collaboration, and alignment of objectives within the CSR
department at Tata Motors.

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 LEAVE AND HOLIDAY

The SVK policy is to provide its personnel some downtime so they may recharge.
This policy's goal is to provide for employees' recreational requirements, health-
related concerns, and personal or domestic emergencies, among other things. The
leave sanctioning authority, however, may reject to grant a leave that has already
been granted, amend the character of the leave, or recall an employee before the end
of his leave time if the exigencies of service so necessitate. Leaves will be credited
from January to December. Any and all leaves must be requested on the leave
application form. The following are the category of leaves:

1. National Holidays - At the beginning of each calendar year, SVK prepares

holiday schedules for the workforce that correspond to recognized public
holidays. National holidays do not roll over.
2. Annual Leave – Annual leave is a paid leave. Employees of the SVK are
entitled to yearly leave at the following accrual rates:
➢ Although an employee begins to accrue annual leave on the day of hire,
yearly leave cannot be taken until the probationary period has passed.
Annual leave requests must be submitted beforehand, with a minimum of
two weeks' notice, and be authorized by the employee's manager.
➢ Employees must use their yearly leave during the current calendar year. A
full day's worth of annual leave cannot be taken in one sitting.
➢ Employees employed between the first and the fifteenth of the month will
accrue annual leave for the whole month, whilst those hired after the
fifteenth will start accruing their leaves on the first day of the following
month. When an employee is let go, their annual leave entitlement will be
calculated for the entire month in which the termination occurred.

26
 ➢ An employee is allowed a minimum of 21 annual leaves per calendar year.
3. Casual Leave - Employees are entitled to a maximum of eight (8) working
days of paid casual leave each year. A copy of the application form that has
been authorized is kept in the employee's personnel file, and leave is provided
at the supervisor's discretion

4. Sick Leave –

➢ An employee who is ill must notify his or her immediate supervisor that
they will not be able to report to work that day.
➢ On the day they return to work, the employee is responsible for getting the
leave approved.
➢ Per employee is entitled to 07 days of paid sick time each calendar year.
➢ Annual leaves cannot be combined with sick leave, accrued, or redeemed.
➢ Employees are not permitted to utilize sick time to care for family
members or to get them checked out or treated at the doctor.
➢ Each employee must submit a written report of their sick time in order for
it to be properly charged.
➢ A verified physician's certificate is required to prove a sickness absence of
more than two days in a row.
➢ Sick leave cannot be advanced over the annual maximum that an employee
is entitled to.

Maternity Leave – All regular full-time female employees who have

worked for NGO for at least six (6) months are qualified for maternity
leave upon presentation of a properly documented application and medical
certificate.
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 ➢ There will be a three-month maximum for maternity leave.
➢ Only two paid maternity leaves can be taken during the course of
employment.
➢ The employee will continue to receive their full salary and benefits while
on maternity leave, with the exception of the conveyance allowance.
➢ In any event, maternity leave cannot be extended or combined with annual,
sick, or casual leaves.

▪ Leave of Absence/Leave without Pay - All regularly employed full-time

personnel with more than six months of service may request a leave of absence
(leave without pay). The employee must provide a written request for leave
that specifies its duration and justifies it to their supervisor. A leave of absence
must be requested using a Leave Request Form at least ten days in advance,
be suggested by a supervisor, and be authorized by the Chairperson after
consulting with the HR department.

➢ No paid leave of absence will ever be granted. Only once an employee has
used up all of his paid time off (annual leave) will they be granted such
leave;
➢ An unpaid leave of absence should last no longer than three (3) months.
➢ Other leaves will not accrue while on an unpaid leave of absence.
➢ An unpaid leave of absence should last no longer than three (3) months.

▪ Paternity Leave - Male employees will be permitted up to 10 days of paternity

leave with pay for the first two children born to their spouses. Birth shall be
notified to NGO within 5 days. This privilege may be availed only after
completion of a minimum of one-year service at NGO.

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SALARY INCREMENT

Employee's contract, and a raise is often factored in after the completion of

each year or contract. Contract employees go through negotiations for a new
contract, which include a salary increase. Several factors are considered when
determining these increases, including recommendations from department
heads, performance evaluations, contributions to the organization, and factors
like attendance, punctuality, and absence from work. Generally, it is expected
that these considerations adhere to the findings of the Performance Evaluation
Report.

PROMOTION POLICY

Competence and experience are the requirements for promotion for staff
members at the levels of project worker, project assistant, and senior project
assistant. Knowledge, competence, and experience would be the criteria for
promotions at the levels of project associate and senior project associate.
Education will continue to be a criterion in general for consideration of
advancement to the rank of Project Officer and above. The Head CSR may,
however, in some exceptional circumstances give consideration to promoting
a Senior Project Associate to the position of Project Officer

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 EMPLOYE RECORD

All employee records will be kept in the office. These files will contain all the
pertinent in the office, all personnel records will be stored. All relevant documents,
including appointment letters, personal actions, team performance reviews, job
descriptions, resumes, letters of recommendation, notes to the file, and any other
data relating to the employee's involvement will be contained in these files. The
employee can request that the administration, finance officer/manager accounts,
and other administration view his file in order to gain access to it. From the day of
hire, every employee must sign a copy of the appointment letter that outlines the
terms of reference, the probationary period, the duties of the position, and the
grounds for termination.

Litigation: All disputes/breach will be settled in Lucknow Jurisdiction Area.

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 FINANCIAL PROCESS

VENDOR PAYMENT

The following procedures must be followed in order for a vendor to be paid:

FIRSTLY, to get the invoice from the seller or supplier.

Create the required journal entry in the ERP or accounting system to appropriately
account for the invoice. Recognise, calculate, and maintain records for any taxes that
may be payable, including TDS under the income tax legislation and any input tax
credit (ITC), if any, under the GST law. Step 3: If the government is owed TDS, it
must be deposited by the dates specified in the Income Tax Rules. Depending on the
circumstance, include any such ITC on the GSTR-3B form that is reported on a
monthly or quarterly basis.

If the government is owed TDS, it must be deposited by the dates specified in the
Income Tax Rules. Depending on the circumstance, include any such ITC on the
GSTR-3B form that is reported on a monthly or quarterly basis

Obtain the authorized signatory's permission before beginning the invoice payment,
ideally on or before the invoice due date.

Pay the vendor using a payment voucher as proof, deducting the TDS that was
applied, and record the transaction in the accounts books. UPI, bank transfers, e-
wallets, mobile payments, and other payment gateways are all acceptable payment
methods.

It is crucial to remember that you can use a cloud-based vendor payment software
system, which is frequently connected with your ERP system, to automate some of
the tasks outlined above.

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The financial process of Cash Book, Ledger, Journal, Voucher, Approval, Stock
Inventory will be maintained in software Tally ERP 9. Tally is an ERP accounting
software solution used to record a company's daily business data. It is
comprehensive enterprise software. Tally ERP 9 is the ultimate business
management tool and GST software, combining function, control, and internal
customizability in the best possible way. One well-known financial accounting
system and inventory management system with a powerful computer is Tally ERP
9.

STAFF SALARY

Payment by Cheques
Payment Calendar

Staff salaries are paid within seven days following the completion of the month.
Individual cheques are to be issued to the employee concerned.

Staff payroll

Staff payroll (salary sheet) is prepared by the Accountant as the basis of payment.
The staff payroll contains information on the employees’ basic salary for the month,
allowances if any, deductions and net salary payable. The staff payroll is checked by
the Senior Programme Officer.

Advance Pay

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NGO’s employees may take advance payment of up to 3 months (after completion
of 3 months’ probation), if urgently required. The advance must be
returned/reimbursed before the end of that particular fiscal year.

For travel purposes, NGO employees shall be given cash advances for expenses
covered on official trips. Request for cash advances is prepared by the personnel
concerned, recommended by the Treasurer or General Secretary and is approved by
the President. All cash advances for travel are to be liquidated within a week
following the completion of the trip.

Tax Deduction at Source

NGO will deduct tax at source where applicable as per Government rules.

Payment for Contractual Services

Payment for contractual services is done through cheques disbursements. The

schedule of payment depends on the Terms of Reference (TOR) agreed upon by the
personnel concerned and NGO. Payments are covered by a Request for Payment
Form prepared by the accountant and approved by the Executive Director.

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 DESCRIPTION OF RECOMMENDATION
The HR and Financial Manual provides guidelines and policies related to human
resources and financial management within an organization. It serves as a
comprehensive reference document for employees, managers, and other
stakeholders involved in these areas. The manual typically covers various topics and
includes recommendations to ensure compliance, transparency, and efficiency in HR
and financial practices.

HR Policies and Procedures: The manual outlines policies and procedures related
to recruitment, hiring, onboarding, employee benefits, performance management,
training and development, employee relations, and other HR processes.

Compensation and Benefits: The manual includes recommendations for

determining salary structures, incentives, and employee benefits. It may provide
guidelines on conducting salary surveys, evaluating job roles, and establishing
equitable compensation packages. Additionally, it may offer suggestions on
implementing employee benefit programs, such as healthcare, retirement plans, and
leave policies.

Communication and Record-Keeping: The manual emphasizes the importance of

effective communication and proper record-keeping in HR and financial matters. It
may recommend establishing clear communication channels, maintaining
documentation for HR and financial transactions, and ensuring data confidentiality
and security.

Financial Management: The manual provides recommendations for financial

policies, budgeting, accounting procedures, and financial reporting. It may offer
guidelines on expense management, procurement processes, financial controls, and

34
risk management. The manual ensures adherence to financial regulations and
promotes financial transparency and accountability within the organization.

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 LEARNING FROM THE PROJECT

The HR and Financial Manual provides valuable learning opportunities for

employees and stakeholders within an organization. Here are some key learning
points that can be derived from the project of implementing such a manual:

Understanding Policies and Procedures: Employees gain a clear understanding of

the organization's HR and financial policies and procedures. They learn about the
guidelines that govern various processes such as recruitment, compensation,
benefits, performance management, and financial management. This knowledge
helps ensure consistency and fairness in decision-making.

Effective Communication: The manual emphasizes the importance of effective

communication in HR and financial matters. Employees learn about the significance
of clear communication channels, documentation, and record-keeping. They
understand how proper communication facilitates understanding, collaboration, and
accountability.

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