Report Final
Report Final
Of
By
I declare that the Internship Report entitled “SUMMER INTERNSHIP AT SHREE CEMENT
LIMITED ” is a record of original work undertaken by me for the award of the degree of Master
of Business Administration under the mentorship of Dr. Aditi sharma Assistant Professor ,
HPKV Business School, School of Commerce and Management Studies, Central University of
Himachal Pradesh. I hereby confirm the originality of the work and ensure that this has not
formed the basis for the award of any degree, diploma, associateship, fellowship, or other titles.
Acknowledgement
I am deeply grateful to all those who have supported me during my internship at M/s Shree
Cement Ltd., particularly on my project focusing on Contract Labor Management.
My heartfelt thanks go to Mr. Ashwani Sharma, my industry mentor, and Mr. Shiv Raj for
their exceptional guidance and unwavering support. Their insights and expertise were
invaluable in helping me navigate the complexities of this project and contributed significantly
to my professional growth.
I would also like to express my sincere appreciation to the other members of HR department at
Shree Cement Ltd. for providing me with the opportunity to work closely with the Scrum
System. Their support in understanding the key aspects of Labor Management System like
Attendance Tracking, Wage calculation, PF & ESIC Calculation, Gate Pass Generation,
Registration of Worker, Workers Medical & Safety Training etc were instrumental in the
successful completion of this project.
Table of content
Introduction…………………………………………………………………………….….6
History…………………………….……………………………………………...………...7
Brands……………………………………………………………………………………..12
Business Verticals…………………………………………………………………………13
SWOT Analysis……………………………………………………………………….…..15
• Registration
• Timesheet Management
• Wages Management / Payroll Process
• Report
Chapter 03 – EPF challan Preparation ………………………………..………………28
Research Methodology…………………………………………………………….…....42
• Introduction
• Objectives
• Data Collection Method
• Sampling Size
• Sampling Tool
Data analysis and interpretation……………………………………………………….44
Findings from contractors………………………………………………………...……58
References………………………………………………………………………………64
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Shree Cement Ltd is an Indian cement manufacturer, founded in 1979. Now headquartered in
Kolkata, it is India's third largest cement producer and second largest cement company by
market capitalisation. Shree Cement has moved in the last two decades from having 2 million
tonne (mt) production capacity to becoming the country’s third largest cement player, with an
installed capacity of 57.4 MTPA overseas. It also produces and sells power under the name
Shree Power (Captive Power Plant) and Shree Mega Power (Independent Power Plant). Power
Generation Capacity of 935.55 MW.
At Present Shree Cement leads the market across India with 07 integrated Plants and 11
grinding units, a total of 18 plants. At Shree Cement, more than 25,000 employees serve the
organization and help meet its goals.
Shree Cement operates several state-of-the-art production facilities strategically located across
key regions of the country. The company's manufacturing units include integrated cement
plants and grinding units, which collectively contribute to its impressive production capacity.
Shree Cement is renowned for its commitment to quality and innovation, continually enhancing
its product offerings to meet the diverse needs of its customers.
Through its innovative approach and commitment to excellence, Shree Cement Ltd. has
established itself as a leader in the cement industry, contributing significantly to India’s
infrastructure development and economic growth.
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HISTORY
In 1979, Sh. BG Bangur incorporated Shree Cement. In 1983 they commissioned its first plant
in Rajasthan and in 1985 it began production. Until then a family business, in 1995 BG
Bangur’s family gained full control of the business. The current head of the company is 70-
year-old Hari Mohan Bangur, who had joined his father, BG Bangur since he graduated
from IIT Bombay in 1975. Nineteen years ago, in 2003, HM Bangur’s son Prashant Bangur too
joined the business.
The 1990s marked a transformative phase for Shree Cement as the company embarked on a
path of aggressive expansion. Recognizing the growing demand for cement across the country,
Shree Cement initiated plans to augment its production capacity and extend its geographical
reach. The company established additional cement manufacturing plants in various locations,
including Rajasthan and other strategic regions. A significant milestone during this period was
the introduction of advanced manufacturing technologies that enhanced the efficiency and
quality of cement production. Shree Cement invested in state-of-the-art machinery and
processes, which facilitated increased production capacity and reduced operational costs. The
company also diversified its product portfolio, offering a range of cement types to meet diverse
construction needs, including Ordinary Portland Cement (OPC), Portland Pozzolana Cement
(PPC), and other specialized variants.
In the early 2000s, Shree Cement's expansion strategy continued with the establishment of new
facilities and the strengthening of its distribution network. The company's commitment to
technological innovation and operational excellence became evident through its adoption of
modern practices and processes. This period also saw Shree Cement's entry into the ready-mix
concrete (RMC) segment, further broadening its product offerings and market presence.
The 2010s represented a dynamic era of diversification and modernization for Shree Cement.
During this decade, the company pursued a multi-faceted approach to growth, including
entering new business segments and enhancing its technological capabilities. A notable
development was the establishment of captive power plants to secure a reliable and cost-
effective energy supply for its manufacturing operations. This move not only ensured energy
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security but also aligned with Shree Cement's commitment to sustainability and environmental
stewardship.
Shree Cement's diversification strategy extended beyond cement production. The company
ventured into the production of ready-mix concrete (RMC) and established a comprehensive
network of cement depots to streamline distribution and enhance customer service. These
initiatives were aimed at creating a more integrated and efficient supply chain, catering to the
evolving needs of the construction industry.
The 2010s also witnessed Shree Cement's embrace of digital transformation. The company
implemented advanced management systems and digital tools to optimize its operations and
improve decision-making processes. This technological shift played a crucial role in enhancing
operational efficiency and maintaining high standards of product quality.
In recent years, Shree Cement has continued to solidify its position as a leading player in the
Indian cement industry. The company has undertaken several strategic initiatives to further its
growth and market presence. These initiatives include acquisitions of existing cement plants
and the establishment of new production facilities in key regions. Such expansions are aimed
at consolidating Shree Cement's market leadership and catering to the increasing demand for
cement across the country.
As Shree Cement looks to the future, it remains dedicated to leveraging its strengths—
technological capabilities, operational excellence, and market presence—to drive continued
growth and innovation. The company's vision is to maintain its leadership position in the
cement industry while contributing to the development of infrastructure and construction
projects both in India and internationally.
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Throughout its illustrious history, Shree Cement Ltd. has demonstrated resilience, adaptability,
and an unwavering commitment to excellence. The company's journey from its humble
beginnings to becoming a prominent name in the cement industry is a testament to its
dedication to quality, innovation, and sustainable growth.
1984- Initial Public Offer and listing in Bombay Stock Exchange, little did anyone know that
it would be an investors favourite in the coming decades.
1985- First integrated Cement plant of 0.6 MTPA commissioned at beawar in Rajasthan.
1997- Second integrated unit is commissioned at Beawar in Rajasthan making the total
production capacity 1.5 MTPA.
2006- An integrated Cement Plant commissioned at Ras,48 kms west of Beawar. A site that
was to be among the larger producing unit in the world.
2007- First grinding unit comes up in Khushkhera, Rajasthan, f;aging of our split grinding unit
strategy. This significant reduced our logstic cost, allowing us to price our product in an
efficient manner.
2008- The first waste heat recovery power plant commissioned at Beawar, Rajasthan.
2009- Become the first company to manufacture synthetic Gypsum, a chemical replacement of
mineral gypsum. Awarded a patent fro it by the government of India in the year 2017.
2010- In order to get closer to the market, two grinding units are set up in Suratgarh, Rajasthan
and Laksar (Roorkee), Uttarakhand.
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2011- Commitment towards being the greenest cement manufacturing company gets
recognised and whole time Director, Mr. Prashant Bangur is recignised as ‘New Sustainability
Champion’ by the world Economic forum.
2012- A thermal power plant of 300 Mega Watt is commissioned at Beawar, Rajasthan and we
venture into power sales.
2013- Nimbeti mines continues to fuel expansion plans and unit IX is commissioned at Ras,
soon to be followed by unit X in 2014 and two grinding units.
2014- Enter in the eastern market with our grinding unit in Aurangabad Bihar. This becomes
one of the largest grinding units with the highest dispatch in the years to come.
2015- We reinforce our position in the east of India with the commissioning of an integrated
unit in Raipur, Chattisgarh. Production capacity continues to grow and reach 20 MTPA.
2015- This is a momentous year as Shree Cement LTD. get he highest 5 star rating by
Whitehopleman, UK, first time to any cement company I the world.
2016- Our Managing Director, Mr. Hari Mohan Bangur is awarded as Entrepreneur of the Year
by Ernst Young India.
2016 -2017- Add another unit in Bulandshahr, Uttar Pradesh and total revenue crosses INR
10,000 Crore.
2017- Forbes India recognises Mr. Hari Mohan Bangur, Managing Director as Entrepreneur of
the year.
2018- Establish country wide presence with the commissioning of an integrated Unit in
Kalaburagi, Karnataka. Another griding unit is commissioned in Sri Ganganagar, close to the
existing one in suratgarh.
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2018- This is the year Shree Cement make their first overseas acquisition of Union Cement
Company, Ras Al Khaimah, United Arab Emirates.
2018- A step ahead in Green Energy with the commissioning of 1 st Wind Power Generation
Unit of 21 MW, in Karnataka.
2019- Born through an extensive research, two premium brands launched- Roofon and Bangur
Power.
2022- Shree cement is among for its commitment towards being a great place to work for
consistently being recognized among India’s best.
2023- The chairman, Mr. Hari Mohan Bangur, is nominated among India’s Most Trusted
leaders by great place to work India.
2024- Launch of the new Bangur identity and Bangur Magna Cement.
Brands
Shree Cement Ltd. boasts an integrated and comprehensive brand portfolio designed to cater
to the diverse needs of its extensive customer base. This portfolio includes prominent brands
such as Bangur Magna, Bangur Jungrodhak, Bangur Powermax, and Bangur Rockstrong, each
meticulously engineered to address specific requirements in the construction and infrastructure
sectors.
Bangur Magna stands out as a premium brand in Shree Cement's lineup, offering high-
performance cement known for its superior strength and durability. Engineered to meet the
highest standards, Bangur Magna is ideal for projects requiring robust and reliable cement,
ensuring long-lasting results and structural integrity.
Bangur Jungrodhark is another key brand in the portfolio, renowned for its versatility and
adaptability. Designed to address a wide range of construction needs, Bangur Jungrodhark
provides excellent workability and strength, making it suitable for various applications from
residential buildings to large-scale infrastructure projects.
Bangur Powermax is crafted for high-performance applications where enhanced strength and
durability are paramount. This brand caters to demanding construction environments and
heavy-load requirements, offering exceptional performance and resilience under stress.
Bangur Rockstrong rounds out the portfolio with its focus on providing robust and durable
solutions for both residential and commercial applications. Known for its exceptional quality
and reliability, Bangur Rock strong is designed to withstand the rigors of time and usage,
ensuring lasting performance and stability.
Each of these brands reflects Shree Cement's commitment to quality, innovation, and customer
satisfaction. The integrated portfolio is strategically designed to meet the varied demands of
customers, ensuring that Shree Cement continues to deliver products that exceed expectations
and support the successful completion of diverse construction projects.
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Business Verticals
Cement
1.Portland pozollana Cement (PPC): portland pozzolana cement is made by mixing OPC
with Pozzolanic materials such as silica, volcanic ash, fly ash, pond ash,etc.PPC iss believed
to be the product of the future, considering it various applications in the construction industry.
They are suitable to use in hostile environmental conditions. They can be reliably utilised in
the construction of marine structures, masonry mortars and plastering, hydraulic strucures.
2.Ordinary Portland Cement (OPC): Ordinary Portland Cement refers to the hydaulicc
bindng material groumd by mixing Portland Cement clinker, blended materials and appropriate
amount of gypsum. The bureau of Indian standard has specified to use OPC in pre-stress
concrete structure which are typically ised in high rise buildings, foundation systems, bride and
dam structure,silos and tanks, industrials pavements and nuclear containment structures.
3.Portland slag Cement (PSC): Slag cement is a hydraulic cement formed when granulated
blast furnace slag is ground to suitable fineness and is used to replace a portion of Portland
cement. It is a recovered induatrial by product of an iron blast furnace. Mollten slag diverted
from the iron blast furnace is eapidly chilled, producing glassyb granules that yield desired
reactive cementitious characteristics when ground into cemment fineness.
Power
Shree also operates in the Power sector with an installed commercial power capacity of 300
Mega Watts along with Captive and Green Power Capacity of 452 Mega Watts.
Shree Cement’s installed power capacity tops 1 GW; To further sharpen focus on green
generation
• Current energy mix includes solar, wind, thermal and waste heat recovery Renewable energy
portfolio nearly 50%
• Plans to invest Rs 1000 crore in FY25 to install an additional 202 MW of renewable energy
capacity Shree Cement Ltd, India’s third largest cement manufacturer by capacity, is proud to
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announce that it has achieved a significant milestone of one GW (1,000 MW) of installed power
capacity. This accomplishment was marked by the commissioning of a 19.5 MW solar power
plant at its manufacturing unit in Andhra Pradesh.
The 1 GW capacity includes a mix of solar, wind, thermal and waste heat recovery power
plants, showcasing Shree Cement’s diversified approach to meeting the electricity demand for
cement production. Significant investments totaling Rs 4000 crore have been made to expand
the renewable portfolio, which now accounts for nearly 50% of the installed power capacity at
499 MW. Notably, Shree Cement’s 244 MW capacity from waste heat recovery is one of the
highest in the global cement industry.
Looking ahead, an estimated capex of Rs 1000 crore is planned in FY25 for installation of
additional RE capacity. This will include 132 MW solar capacity in five states - Jharkhand,
Haryana, Rajasthan, Uttar Pradesh and Uttarakhand, 36 MW of wind generation in Rajasthan
and 34 MW of waste heat recovery capacity in Karnataka and Rajasthan.
The company is also exploring advanced techniques to enhance renewable electricity usage,
such as battery storage, pump storage, and green hydrogen. Shree Cement is firmly on track to
becoming a modern and green building materials company, aiming to increase its current
capacity from 56.4 MTPA to 80 million tonnes by 2028.
AAC Blocks
The company produces Autoclaved Aerated Concrete (AAC) Blocks – a lightweight, precast
building material with high insulating capacities, in its plant in Uttar Pradesh.
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SWOT ANALYSIS
Strengths
Strong Market Presence: Shree Cement is one of the largest cement manufacturers in
North India, with a well-established presence in key markets like Rajasthan, Delhi, and
Uttar Pradesh.
Diversification: The company operates in both cement and power generation, offering
some protection against fluctuations in either market.
Efficiency and Cost Management: Shree Cement has a reputation for efficient
operations and strong cost management practices, reflected in awards from ICWAI.
Brand Recognition: The company has built a strong brand image in its core markets
and has been recognized for excellence by institutions like Business Today.
Weaknesses
Limited Geographic Reach: Shree Cement's focus on North India limits its national
market share compared to competitors with a wider presence
Lower Brand Awareness: Compared to some major national cement brands, Shree
Cement may invest less in marketing and branding activities.
Opportunities
Infrastructure Development: Growing investment in infrastructure projects across
India creates a significant demand for cement, which Shree Cement can capitalize on.
Expansion into New Markets: The company can expand its operations into South and
East India to gain a larger national footprint.
Threats
Competition: The Indian cement industry is highly competitive, with established
players and new entrants vying for market share.
Price Fluctuations: Fluctuations in the prices of raw materials like limestone can
impact Shree Cement's profitability.
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By leveraging its strengths and addressing its weaknesses, Shree Cement can capitalize on the
opportunities presented by a growing market and navigate the competitive landscape.
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CHAPTER-1
DARWIN BOX
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1. On the first day of the second week of my on-the-job training at Shree Cement Ltd., I
had the opportunity to gain in-depth knowledge about Darwinbox, a cloud-based
Human Resource Management System (HRMS). This platform is designed to
streamline and optimize HR processes for large enterprises, and I was able to explore
its various features and understand how it supports the entire employee lifecycle—from
recruitment to retirement.
2. Darwinbox is not just a typical HR tool it’s a comprehensive solution that covers a wide
range of HR functions. During my training, I delved into its Core HR module, which
manages employee information, personal details, contracts, and organizational
structure. This module is crucial for maintaining accurate and up-to-date records that
form the backbone of any HR system.
3. I also learned about the Recruitment module, which simplifies the hiring process by
integrating applicant tracking, onboarding, and job postings. This feature is particularly
valuable for large organizations like Shree Cement, where managing a high volume of
applicants efficiently is essential. The platform’s Performance Management feature
stood out to me as well, as it allows for setting goals, conducting performance reviews,
and providing continuous feedback—key elements in fostering employee growth and
engagement.
4. Another aspect I explored was the Learning and Development module, which enables
the creation and delivery of training programs, tracks employee progress, and manages
certifications. This feature ensures that employees are continuously learning and
developing their skills, which is vital for both their personal growth and the
organization’s success.
6. Additionally, I gained insights into the Compensation and Benefits module, which
handles salary structures, benefits administration, and payroll integration. This is a
critical component for maintaining employee satisfaction and ensuring that all
compensation-related processes run smoothly. The Time and Attendance feature is
another practical tool I explored, allowing organizations to track employee attendance,
shifts, overtime, and leave management with ease.
7. The Expense Management module simplifies the process of submitting, approving, and
reimbursing employee expenses, while the Employee Self-Service feature empowers
employees to manage their personal information, leave requests, and other HR-related
tasks. This not only reduces the administrative burden on HR but also gives employees
more control over their data.
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This is the Darwin box of the Shree Cement that used to manage the employee
lifecycle. I mentioned below image of the darwin box used in Shree Cement LTD.
CHAPTER-02
SCRUM SYSTEM
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In the 2nd week of on-the-job training at Shree Cement LTD. I Learned about the Scrum
system that are used in the HR department to manage the overall lifecycle of the Contractual
workers.
SCRUM system helps in managing various records like Contractual workers data, Contractor
Data, Monthly & Annual Reports, Various Department Records etc.
In SCRUM system entire life cycle of contractual workers is managed starting from their hiring
through contractor till their separation.
1. In SCRUM System initially contractual workers are enrolled & their personal
information like their name, contractor name through whom they are hired, section &
department where they will work, their Aadhar card, PF, ESIC number, their bank
account details & their address etc are mapped.
2. In the second stage SCRUM system synchronise with HIKVISION machine. (FACE
READING MACHINE)
7. IN case contractual workers left the job, separation is also done through SCRUM by
debarring them.
In SCRUM system Contractors Data & awarded work order details are also managed as under:
This is the Scrum system that is used at Shree Cement to effectively manage the entire lifecycle
of contractual workers. The system facilitates various aspects of workforce management,
including recruitment, attendance tracking, task allocation, performance monitoring, and
payroll processing. By utilizing this system, Shree Cement ensures that the management of
contractual workers is streamlined and efficient, allowing for better oversight and control over
their activities and contributions to the company's operations.
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The graphical representation in the Scrum system provides a comprehensive view of various
types of data related to contractual workers. This data includes detailed breakdowns of workers
by gender, work skill, card type, nature of work, department, and contract type. All of this
information is conveniently accessible within the Scrum system under the dashboard option.
By analyzing these graphical representations, one can gain valuable insights into the workforce
composition, helping in better workforce management and decision-making.
REGISTRATION
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The registration option in the Scrum system is utilized for registering new contractual workers.
During this registration process, the contractor’s name is recorded along with the specific work
order under which the worker will be employed. Additional details such as the division,
department, section, section in charge, account code, work skill, card type, and the worker's
designation are also entered into the system.
Following this, the HR department inputs the worker’s personal details, which include their
Aadhaar number, name, father’s name, address, phone number, bank details, and ESIC number.
Once all these details are provided, the HR department assign ID no. and CLR code to the
worker. This information is securely stored within the Scrum system, ensuring that each
worker's data is organized and easily accessible for future reference.
By systematically capturing and managing these details, the Scrum system streamlines the
registration process, helping maintain accurate and comprehensive records of all contractual
workers.
After registering a worker in the Scrum system, the next step is to register them in the Hikvision
machine. This process involves capturing a live photo of the worker and entering their ID
number and name into the system.
Once the worker is registered in the Hikvision machine, it automatically tracks their in and out
times within the organization whenever they punch in or out using the device.
The Hikvision machine is integrated with the Scrum system, allowing seamless communication
between the two. As the Hikvision machine records the worker's attendance, it automatically
sends this data to the Scrum system. This integration ensures that all attendance records are
accurately captured and stored within the Scrum system.
Through the Scrum system, authorized personnel can easily access and review the complete
attendance records of each worker, facilitating effective monitoring and management of
workforce attendance. This streamlined process enhances the overall efficiency of attendance
tracking and ensures that all records are up-to-date and easily retrievable.
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TIMESHEET MANAGEMENT
The timesheet management feature in the Scrum system is where the attendance records of
workers are meticulously maintained. This system allows for the comprehensive tracking of
each worker's attendance, ensuring that all records are accurate and up-to-date. The process
begins with the HR department, which reviews and approves the monthly attendance records
of the workers.
Additionally, the department where the worker is assigned also reviews and approves the
attendance records, providing an additional layer of verification. Once this departmental
approval is completed, the HR department conducts a final review and approval of the worker's
monthly attendance.
This multi-step approval process ensures the accuracy and reliability of the attendance data,
providing a clear and verified record for payroll processing and other administrative purposes.
By maintaining this structured approach, the Scrum system helps in efficiently managing and
validating the attendance of the workforce.
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WAGES MANAGEMENT
Wages management feature in the Scrum system, where the wage rates for workers are
determined and entered. C and skill set, ensuring that compensation is aligned with their
qualifications and job responsibilities. The HR department is responsible for manually
inputting these wage rates into the system, carefully considering the skill set and designation
of each worker.
Once the wage rates are established and attendance records are maintained, the Scrum system
automatically calculates the wages for each worker. This automated process streamlines payroll
management, reducing the potential for errors and ensuring that workers are compensated
accurately based on their work hours and predefined wage rates. By integrating attendance data
with wage calculations, the Scrum system enhances the efficiency and accuracy of the entire
payroll process.
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The calculate wages feature in the Scrum system is designed to automatically compute the
wages of workers based on their attendance records and predefined wage rates. This feature
streamlines the payroll process by ensuring that all calculations are accurate and consistent,
taking into account each worker's specific attendance data and the wage rates associated with
their designation and skill set.
Once the system has completed the wage calculations, it generates an Excel file that contains
the final wages for all workers. This file provides a detailed breakdown of each worker's
earnings, making it easy for HR and payroll departments to review and process the payments.
The calculate wages feature in the Scrum system is designed to automatically compute the
wages of workers based on their attendance records and predefined wage rates. This feature
streamlines the payroll process by ensuring that all calculations are accurate and consistent,
taking into account each worker's specific attendance data and the wage rates associated with
their designation and skill set.
Once the system has completed the wage calculations, it generates an Excel file that contains
the final wages for all workers. This file provides a detailed breakdown of each worker's
earnings, making it easy for HR and payroll departments to review and process the payments.
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REPORTS
The Reports feature of the Scrum system allows us to access a wide range of reports, including
workmen reports, workmen and contractor reports, attendance reports, and wages reports.
These reports are generated by the Scrum system based on the data recorded within it.
By utilizing this feature, users can efficiently monitor and analyze various aspects of workforce
management, ensuring that all relevant information is accurately reflected and easily
accessible. The reports provide valuable insights into workmen's performance, attendance
patterns, wage calculations, and the overall relationship between contractors and workmen,
supporting informed decision-making and effective workforce management.
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CHAPTER - 03
The Employees' Provident Fund Act, 1952 (EPF Act), is an Indian legislation designed to
provide retirement and social security benefits to employees in the organized sector.
The EPF Act aims to promote retirement savings and social security for employees. It mandates
that employees and employers contribute towards a provident fund, pension fund, and an
insurance fund, which will support employees post-retirement, or in cases of disability, illness,
or other contingencies.
Employees earning up to ₹15,000 per month are required to join, though those earning above
may also opt to join voluntarily.
Employees’ Provident Fund Scheme (EPF) Both employer and employee contribute 12% of
the employee's basic salary and dearness allowance (in most cases), which is deposited into the
employee's EPF account. The employee earns interest on this amount, and it’s accessible upon
retirement, resignation, or in certain emergencies.
Employees’ Deposit-Linked Insurance Scheme (EDLI) This scheme offers life insurance
coverage to employees covered under the Act, providing financial support to their nominees in
case of the employee's death during service.
Employee's Contribution: Generally 12% of the employee's basic pay and dearness allowance.
Employer's Contribution: 12% of the employee’s pay is split between EPF, EPS, and EDLI
schemes, with a small portion for administrative costs.
Insurance Fund Offers life insurance coverage, with the benefits calculated based on the
employee’s last drawn salary and length of service.
Employees can partially withdraw funds from the EPF for specific purposes like marriage,
education, home purchase, or medical emergencies.
Full withdrawal is allowed upon retirement, after two months of unemployment, or in the event
of permanent disability.
The EPFO (Employees’ Provident Fund Organization) administers the Act, manages the funds,
and ensures compliance. It handles claims, contributions, and dispute resolution.
Non-compliance with the Act's provisions can lead to penalties, fines, or imprisonment for
employers, emphasizing the importance of adhering to EPF contribution requirements and
timely remittances.
The EPF Act represents a foundational step in providing financial security to India's workforce
and is a significant part of the Indian labor law framework.
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With this process, Shree Cement Ltd. ensures that EPF contributions are managed accurately
and efficiently, benefiting employees and meeting statutory requirements reliably.
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Chapter 04
ESIC Challan preparation
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The Employees' State Insurance Act, 1948 (ESIC Act), is an Indian legislation that provides
social security and health insurance benefits to employees in the organized sector. This Act
created the Employees' State Insurance Corporation (ESIC), which oversees the scheme's
implementation and administration.
The ESIC Act aims to provide comprehensive social security to employees against risks such
as illness, maternity, disability, and death due to employment-related injuries. It ensures
financial support, medical care, and various other benefits for employees and their dependents.
The Act applies to all establishments with 10 or more employees (20 in some states) in specified
industries.
It covers employees earning a monthly wage of up to ₹21,000 (or ₹25,000 for employees with
disabilities).
It is mandatory for eligible employees and employers to participate in the scheme, with specific
contributions required from both.
Medical Benefits: Full medical care for insured employees and their families from day one of
employment, covering outpatient and inpatient treatments, specialist consultations, and
hospitalization.
Sickness Benefit: A cash benefit is provided to employees during certified periods of illness
at 70% of their daily wages for a maximum of 91 days per year, provided they have contributed
for a minimum period.
Maternity Benefit: Maternity benefits are available for up to 26 weeks for pregnancy,
miscarriage, or complications. The employee receives full wages for the period of leave.
Disability Benefit:
Temporary Disability Benefit (TDB): Employees are entitled to a daily allowance for the
entire period of certified temporary disablement due to an employment injury.
Permanent Disability Benefit (PDB): A lifetime pension based on the extent of disability
caused by an employment injury.
Dependents’ Benefit: In the case of the death of an insured employee due to a work-related
injury or illness, dependents receive a monthly pension.
Funeral Expenses: The Act provides a lump sum amount towards funeral expenses, paid to
the family or nominee of the deceased insured employee.
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Contribution Rates
Contributions under the ESIC scheme are shared by both the employer and the employee as
follows:
Employees with monthly wages of up to ₹176 per day are exempt from paying their share,
though the employer must still contribute.
Administration
The Employees' State Insurance Corporation (ESIC) administers the scheme, collects
contributions, manages funds, and dispenses benefits.
ESIC runs and maintains hospitals, dispensaries, and regional offices to provide healthcare
services and benefits to insured persons and their dependents.
Ensures medical care and cash benefits during periods of illness, injury, or maternity.
Offers financial security to the employee's family in case of the employee's death due to
employment injury or illness.
Benefits continue as long as employees are part of the insured population under the ESIC Act.
An employee's ESIC registration is canceled when they no longer qualify for coverage, such
as due to a wage increase above the prescribed limit or if they leave the establishment.
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With this approach, Shree Cement Ltd.'s HR and Accounts teams work together to keep the
ESIC process smooth and compliant, supporting both employee benefits and regulatory
requirements with precision and reliability.
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CHAPTER-03
The Contract Labour (Regulation and Abolition) Act, 1970 is an important piece of
legislation in India aimed at regulating the employment of contract labor and improving their
working conditions. It applies to establishments and contractors employing 20 or more contract
laborers in a year.
The primary goal of the Contract Labour (Regulation and Abolition) Act, 1970, is to:
• Prevent the exploitation of contract labor by regulating their employment and working
conditions.
• Ensure fair and humane treatment for contract laborers, protecting their rights and
welfare.
• Abolish contract labor in specific situations where it is considered unsuitable or
exploitative.
Welfare and Health Provisions: The Act mandates contractors and employers to
provide facilities such as canteens, restrooms, drinking water, and first aid to contract
workers. The aim is to safeguard their welfare and health.
Payment of Wages: The Act ensures that contract laborers receive timely and fair
wages. In case a contractor fails to pay the wages, the principal employer becomes
responsible for the payment.
Principal Employer: The principal employer (the company using contract labor) must
ensure that contractors adhere to the Act’s provisions. If the contractor fails to meet
requirements, the principal employer may be held liable.
Contractor: Contractors are responsible for hiring, paying, and providing necessary
facilities to contract workers. They must comply with licensing regulations and welfare
requirements as specified under the Act.
The Act is enforced by labor inspectors and officers appointed by the government. They
have the authority to conduct inspections, review documents, and ensure compliance.
Non-compliance can lead to penalties for both contractors and principal employers,
including fines and imprisonment.
The Act is crucial in contract labor management as it provides a structured approach to:
Improving Work Conditions: With welfare provisions and safety measures in place,
the Act aims to create a safer and healthier work environment for contract workers.
This comprehensive legislation plays a vital role in protecting contract laborers and ensuring a
balanced relationship between employers, contractors, and workers, aligning with the
principles of fair labor practices and industrial harmony.
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CHAPTER-04
Contract labour management is the process of overseeing and managing workers who are hired
on a temporary or contract basis, rather than as permanent workers. This includes tasks like
ensuring compliances of contract labour under provision of various Labor Laws like payment
of Wages, PF, ESIC, Factory Act, Payment of Minimum Wages and Managing work order of
Contractors etc.
The overall process of contract labour management at M/s Shree Cement Ltd starts as per
below:
• In the first step, work order is awarded or issued to contractor by contract cell. Work
order incorporates all details pertaining Term & Conditions of work, category of
workers required, wages rates of workers, period of contract, safety clauses &
contractor commission etc.
• In the second step, HR dept. coordinates with contractor & ask to fulfil the man power
as per company requirement. Thereafter contractor bring requisite manpower which
gone through the skill assessment by user department.
• In the Third Step, after taking skill test user dept. ask the contractor to approach HR
dept. & complete gate pass formalities.
• In the fourth step, Contractor submit skill assessment report, police verification
document, bank details, ESIC card, PF number, Photo graphs, Copy of aadhar card,
Education certificate & work experience certificate of selected candidates in HR dept.
On receiving all documents, HR department ask safety department and medical
department to conduct safety induction training and medical checkup of selected
workers. After getting the clearance from medical and safety department, HR dept
initiate next step.
• In the Fifth Step, HR department enroll the worker in SCRUM (Software for managing
Contract Labour Records). In scrum system they fill various details of workers like their
name, father name, department name, D.O.B, date of joining, contractor name, section
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name, bank details & aadhar card number etc. Consequentially HR team also fill their
wages rate in the system as per work order. At the end of every month, workers
attendance is initially regularised by user department & thereafter by HR department in
SCRUM. Later on workers wages are calculated by the scrum syste based on approved
attendance.
• In the sixth step, HR department generate copy of contractor bills and hands over it to
respective contractor along with wages details.
• In the Seventh Step, contractor submit final bill in HR dept. for further payment.
• In the Eighth Step, HR dept. after checking the bills, forward it to Accounts dept. for
further payment to contractor.
RESEARCH METHODOLOGY
INTRODUCTION
The research methodology outlines the systematic approach used to gather, analyse, and
interpret data. This section ensures the reliability and validity of the research findings. Research
methodology is the way find out the result of a given problem on specific matter or problem
that is also referred as research problem. In methodology researcher uses different criteria for
solving/searching the given research problem.The design of any research problem methods and
the proposed data analysis. Within which section, we have attempted to provide some
information about how to produce a research design for a study.
Objectives of Project
The purpose of research is to discover answer to question through the application of scientific
procedures. The main aim of research is to find out the truly 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 failing into a number of following grouping;
Identify Challenges and Areas for Improvement: Analyse the key challenges faced by both the
contractors and the contractual workers.
Gather Insights Through Surveys and Interviews: Collect feedback from a representative
sample of contractual workers and contractors to understand their experiences, concerns, and
satisfaction levels regarding their wages, payment timeliness, and working conditions.
Develop Recommendations for Enhancing Labor Management Practices: Based on the findings
from surveys, interviews, and system evaluations, propose actionable recommendations to
improve labor management practices.
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During my project at M/s Shree Cement Ltd. I have collected the data through survey
questionnaires or through Qualitative Method. I have distributed the questionnaire to contractor
and to contract labours to gather data on various aspects of contract labour management, such
as working conditions, compensation, and compliance etc.
SAMPLING SIZE: The total Manpower strength of contractual workers at M/s Shree Cement
Ltd is around 500 workers, who were deployed through 06 contractors. I have covered all the
06 contractors & around 50 number of contractual manpower. Therefore, sample size is around
11% of total manpower.
Data Interpretation
I met with around 50 contract workers & 06 contractors and questioned them to understand
their perspectives and the dynamics of their relationship with the company. I conduct the survey
& carefully collected the response and analyzed it, ensuring that the data accurately interpreted
to draw meaningful conclusions from the feedback provided by these workers which is as
under:
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1 year 2year
Interpretation:
I found that, 04 of the contractors have a contract period of 01 year. 02 Contractors have
contract period of 02 years. The survey data shows that 04 contractors have a contract period
of 01 year, while 2 have contract period of 02 years. This shows that the company prefers
shorter-term contracts, likely to maintain flexibility in workforce management. The presence
of 2-year contracts indicates a level of stability and long-term planning for certain roles.
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yes no
Interpretation:
• I found that, all of the 06 contractors are fully aware of the terms and conditions outlined
in their contracts / work order. This awareness ensures that they understand the
expectations, obligations, and rights associated with their work agreements.
• All contractors are fully aware of the terms and conditions outlined in their contracts/
work order indicates effective communication and transparency from the company.
This awareness ensures that contractors clearly understand their roles, responsibilities,
and rights, reducing the likelihood of disputes or misunderstandings.
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Q.3 Is there any provision for contract renewal or it discontinued after certain period?
0
yes no
Interpretation:
I found that, there is no as such provision for auto renewal / discontinuation of contracts.
Contracts are renewed / discontinued as per company requirements after expiry of time period
mentioned in their contracts.
Q.4. Does your contract include provisions related to insurance, retiral benefits, or paid
leave?
no
yes
0 1 2 3 4 5 6 7
Interpretation:
I found that, all contract includes provisions related to health insurance or ESIC and retiral
benefits. Further although annual leaves with wages are paid by company but clause related to
leave is not mentioned in work orders.
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Interpretation:
I found that the contracts / work order includes clear guidelines on the contractor commissions.
Contractor commission is clearly mentioned as 10% on normal wages & 05% on OT wages,
subject to maximum of Rs 1500/- in a month.
By having well-defined clause, the company maintains fairness and consistency in enhancing
contractor satisfaction and motivation.
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50
Interpretation:
During my interactions with the 50 workers, it is observed that all of them work for 8-hour
shift. This standardization in working hours reflects a consistent approach to scheduling and
workload management across the workforce.
An 8-hour workday is often associated with a balanced work-life environment, which can
contribute to higher job satisfaction and productivity.
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Q2. Are you provided with necessary safety equipment and training?
60
50
50
40
30
20
10
0
0
yes no
Interpretation:
• I found that, all 50 contractual workers are provided with safety equipment and the
essential training required to perform their duties efficiently.
• The survey reveals that workers receive both necessary safety equipment and essential
training. This commitment to safety and training ensures that workers can perform their
tasks effectively while minimizing risks.
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0
6
12
32
Interpretation:
• I found that, there are almost 32 workers from 50 whose feel that working condition
are good and 12 worker rate their working conditions as excellent and 6 of them rate
their working conditions as fair.
• The survey results indicate that the majority of workers (32 out of 50) view their
working conditions are good, with 12 workers rating them as excellent and 6 as fair.
• This suggests that most workers are satisfied with their working environment,
reflecting positively on the company’s efforts to maintain satisfactory conditions. The
higher ratings of "excellent" highlight that some workers experience a superior work
environment. However, the presence of a few ratings of "fair" indicates there may still
be areas for improvement to ensure that all workers have a consistently positive
experience.
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50
40
30 50
20
10
0
0
yes no
Interpretation:
• According to my survey, all workers confirms that the company ensure canteen
facilities & rest rooms, which indicates that aspect of workplace amenities is properly
addressed by company.
Q5. Are you getting the rest breaks during working hours?
50
yes no
Interpretation:
• All contractual workers (50) confirm that they receive rest break of Half an hour after
continuous working of 05 hours.
• Further workers receive rest breaks during working hours indicates that the company
supports employee well-being by providing necessary downtime. This practice can
contribute to improved productivity and job satisfaction by allowing workers to
recharge, thus maintaining their effectiveness and reducing fatigue.
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Q6. Are workplace safety procedures and emergency protocols clearly communicated to
you?
50 50
45
40
35
30
25
20
15
10
0
5
0
YES NO
Interpretation:
• I found that, all 50 contractual workers confirm receiving clear communication about
safety procedures and emergency protocols highlights the company's commitment to
maintaining a safe work environment.
• Clear communication of these protocols is crucial for ensuring that employees are
prepared to handle potential hazards and emergencies effectively. This proactive
approach helps in minimizing risks and enhancing overall workplace safety.
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Q7. Do you experience any issues related to noise levels or temperature extremes in your
work area?
yes, 18
32
yes no
Interpretation:
• I found that out of 50 workers, 32 workers do not face significant issues with noise
levels or temperature extremes, which implies a generally acceptable work environment
for the majority. However, the presence of complaints from 18 workers indicates that
there are specific areas or conditions that require attention.
• Addressing these concerns can improve overall workplace comfort and productivity by
mitigating noise and temperature-related issues for those affected.
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Q8. Are you provided with adequate tools and resources to perform your job effectively?
20
30
yes no
Interpretation:
I found that out of the 50 workers surveyed, 30 reported that they are provided with adequate
tools to perform their jobs effectively. However, 20 workers expressed that they are not
provided with the tools they need, which suggests that a significant portion of the workforce
may be facing challenges due to insufficient or inadequate equipment.
10
35
Interpretation:
• I found that only 10 workers, expressed satisfaction with their pay. This means that a
small group feels that their salary is fair or meets their expectations.
• On the other hand, 05 workers are neutral about their salary.The most striking result is
that 35 workers are dissatisfied with their salary. This indicates that the majority feel
their compensation is not enough.
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45
40
35
30
25
20
15
10
5
0
yes no
Interpretation:
• I found that out of the 50 contractual workers, 40 reported that they are not receiving
their payments on time from their contractors.
• Only 10 workers responded that they are consistently paid on time. This indicates a
significant issue with payment timeliness that affects the majority of the workforce.
Q11. Are you provided with any additional benefits? (e.g., health insurance, leave, bonus
etc.)
50
40
30
20
10
0
yes no
Interpretation:
• I found that all 50 workers reported receiving additional benefits such as health
insurance, bonuses, and paid leave. This indicates the company is effectively supporting
its workers.
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50
45
40
35
30
25
20
15
10
5
0
yes no
Interpretation:
• I found that, 45 contractual workers responded that they are not aware of labour rights
and regulations, while only 05 contractual workers are aware of labor rights and
regulations.
• The company should offer clear and easy-to-understand information about workers'
rights. Regular workshops, Trainings or simple guides could help to ensure that
everyone knows labour rights and regulations.
100%
80%
60% 50
40%
20%
0
0%
yes no
Interpretation:I found that, contractors are remitting PF (Provident Fund) and ESIC
(Employees' State Insurance Corporation) contributions on wages of all 50 contractual workers.
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N O0
YES 50
Interpretation:
I found that, all 50 contractual workers are getting wages in accordance with the terms specified
in their work orders. This consistency in payment suggests that the company is diligent in
adhering to agreed-upon wage structures, ensuring that workers are compensated fairly and as
expected.
Q15. How would you rate the support provided by your supervisor?
5
5
30 10
Interpretation:
I found that, out of the 50 contractual workers, 5 rated the support provided by their supervisor
as excellent and 5 rated it as good.
On the other hand, 10 workers rated it as fair, and 30 workers rated it as poor.
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➢ Most of the contractors having varying contract durations, but the majority of them are
typically set for one year. After this initial period, the contracts are often reviewed and
renewed based on the company's requirements.
➢ All contractors are fully aware of the terms and conditions outlined in their contracts.
Before any agreement is finalized, the company ensures that these details are clearly
communicated to each contractor. This includes explaining the specific duties,
responsibilities, and any other relevant clauses that are part of the contract.
➢ There is a provision in place for all contractors to renew their contracts. This renewal
process is structured to ensure continuity of services and allows the company to
maintain strong working relationships with reliable contractors. Contractors are made
fully aware of the clear guidelines regarding the renewal process, including the criteria
that need to be met for renewal and any changes that may be implemented in the new
contract period.
➢ Additionally, all contractors are informed about the specific guidelines related to the
revision of contractor commissions. These guidelines outline how commissions are
calculated, the factors that may influence adjustments, and the timelines for any
revisions. By clearly communicating these guidelines, the company ensures that
contractors understand the terms under which their commissions may be revised,
allowing them to plan accordingly. This transparent approach helps to build trust and
ensures that all parties are on the same page regarding the contract renewal and
commission revision processes.
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Based on the survey results, several key findings have emerged. All 50 workers follow an 8-
hour shift schedule daily, which seems to contribute to a balanced work-life environment. Each
worker is provided with necessary safety equipment and training, indicating a strong
commitment to maintaining a safe workplace. Most workers rate their working conditions as
good, with a significant number considering them excellent, though a few rate them as fair,
suggesting some areas might need improvement.
The survey also highlights that adequate restroom and canteen facilities are available, and all
workers receive rest breaks during their shifts, reflecting good adherence to supportive
workplace policies. Communication about safety procedures and emergency protocols is clear,
which is reassuring for workplace safety. While most workers don’t experience major issues
with noise or temperature extremes, some complaints suggest there might be specific areas
needing attention.
Regarding tools and resources, a majority of workers feel well-equipped, though some report
deficiencies, indicating a need for further assessment of tool provisions. On the wage front, a
notable dissatisfaction exists, with only a small number of workers feeling their salary is fair.
Many workers also report delays in receiving payments.
A significant number of workers are not aware of their labor rights and regulations, highlighting
a gap in education that needs addressing. Despite this, all workers confirm that their PF and
ESIC contributions are being properly remitted and that they receive wages as per their work
orders. Workers are also well-informed about company policies on overtime and leave. Finally,
while most workers rate their supervisor support positively, but there is still some room for
improvement, as a few find it only fair.
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Based on the survey findings, below suggestions could improve worker satisfaction and
operational efficiency:
➢ Enhance Tool Provision: Supervisors should timely review / address the tool
deficiencies reported by some workers viz; Replacement of broken part of tools,
Replacing tools after a certain period / expiry etc. Ensuring that all workers have the
necessary tools and resources will likely improve their performance. This can also help
in reducing number of injuries.
➢ Review Salary Structure in Work Order: It is suggested that workers’ wages should
also be increased while renewing contractors work orders. I have observed that in some
cases contract is terminated and given to new contractor on old rates.
➢ Improve Working Conditions: While most workers are satisfied with their working
conditions but addressing the concerns of those who rate them as fair could further
enhance the overall work environment. Company should focus on specific areas such
as packing plant where dust issues are more & unloader area where noise and
temperature conditions extremes.
One of the key insights from the project is the structured approach to managing relationships
with contractor. I learned that contracts are generally set for a one-year duration, with clear
guidelines for renewal. This ensures both continuity and alignment with the company’s needs.
The importance of clear communication with contractors about terms, conditions, and the
process for commission revisions has been highlighted as a critical component in maintaining
transparent and effective working relationships.
Through the survey of contract workers, I gained valuable insights into the factors contributing
to worker satisfaction. The project emphasized the significance of providing adequate safety
equipment, maintaining good working conditions, and ensuring that facilities like restrooms
and canteens meet the needs of the workforce. However, it also underscored the need for
continuous improvement in areas such as tool provision, noise control, and temperature
management in specific work areas like the packing plant and unloader area.
A significant learning point was the lack of awareness among workers regarding their labor
rights. The project reinforced the importance of continuous education and training to ensure
that all workers are informed about their rights and benefits. Regular workshops and
department-wise interactions can bridge this knowledge gap and empower workers to advocate
for their rights effectively.
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The project highlighted the crucial role of supervisors in shaping the worker experience. While
most workers were satisfied with the support from their supervisors, there is room for
improvement. The need for ongoing training and development for supervisors was identified
as a way to enhance their effectiveness in providing support, which in turn can lead to a more
motivated and satisfied workforce.
Based on the findings, several actionable recommendations were proposed to the company,
including enhancing tool provision, ensuring timely payments, reviewing salary structures,
increasing labor rights awareness, improving working conditions, and supporting supervisor
development. These recommendations are aimed at addressing the current challenges and
fostering a more supportive and productive work environment.
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Conclusion
References
1. www.shreecement.com
2. www.google.com.
8. Mentoring by HR Department.