LIST OF TABLES & FIGURES

S No
01
02
03

Tables & Figures

Table 01, Figure 01 Showing: Experience levels.
Table 02, Figure 02 Showing: Level of grade.
Table 03, Figure 03 showing: Salary range
Table 04, Figure 04 showing: Considering the competitors

04

Page No
45
46
47
48

pay package
Table 05, Figure 05 showing: Factors used to determine
05
06
07
08
09
10

49
the pay.
Table 06, Figure 06 showing: Salary revision
Table 07, Figure 07 showing: pay satisfaction levels
Table 08, Figure 08 showing: Motivation levels of pay
Table 09, Figure 09 showing: Merit pay
Table 10, Figure 10 showing: Employee retention

50
51
52
53
54

CHAPTER-I

INTRODUCTION

HUMAN RESOURCES MANAGEMENT

The Human Resources Management (HRM) function includes a variety of
activities, and key among them is deciding what staffing needs you have and whether
to use independent contractors or hire employees to fill these needs, recruiting and
training the best employees, ensuring they are high performers, dealing with

performance issues, and ensuring your personnel and management practices conform
to various regulations. Activities also include managing your approach to employee
benefits and compensation, employee records and personnel policies. Usually small
businesses (for-profit or nonprofit) have to carry out these activities themselves
because they can't yet afford part- or full-time help. However, they should always
ensure that employees have -- and are aware of -- personnel policies which conform to
current regulations. These policies are often in the form of employee manuals, which
all employees have.

Note that some people distinguish a difference between HRM (a major

management activity) and HRD (Human Resource Development, a profession). Those
people might include HRM in HRD, explaining that HRD includes the broader range
of activities to develop personnel inside of organizations, including, eg, career
development, training, organization development, etc.

There is a long-standing argument about where HR-related functions should

be organized into large organizations, eg, "should HR be in the Organization
Development department or the other way around?"

The HRM function and HRD profession have undergone tremendous change
over the past 20-30 years. Many years ago, large organizations looked to the
"Personnel Department," mostly to manage the paperwork around hiring and paying
people. More recently, organizations consider the "HR Department" as playing a
major role in staffing, training and helping to manage people so that people and the
organization are performing at maximum capability in a highly fulfilling manner.

PAYROLL MANAGEMENT
Definitions:
In a company, payroll is the sum of all financial records of salaries, wages,
bonuses and deductions.

Payroll Management is the linchpin to most of the information an organization

has regarding its employees. While many organizations espouse to using Human
Resource Information Systems (HRIS), the reality is somewhat different. Current
technology and software packages allow employers to store a vast array of interrelated information about employees. However, much of this information is not
viewed as critical, and therefore often overlooked. Basic employee information must
however be kept for payroll purposes. This will also form the basis for any other HR
related information.

Information recorded will include:

Name

Address,

Date of birth

Country of birth

Marital status

Salary level

Taxation status

Positions held

Leave history

Service history
Much of this is gathered when an employee is first registered on the

payroll, but why is this important? Human resources can utilize this
information to produce workforce profiles such as age, salary distribution,
geographic location, and service length. All of these allow for greater HR
planning. It is therefore imperative that payroll and HR have a clear line of
communication.

This however is just the tip of the iceberg. Other reasons for ensuring clear
communication between HR and payroll are:

HR relies on payroll for historic information for reporting purposes, annual

reports etc.

Any plans to change award or enterprise agreement conditions must

include input from the payroll area.

Some payroll systems may not be capable of managing initiatives such as

salary sacrificing, share schemes, or international employment.

Any changes to conditions can result in higher payroll costs due to

inefficient work-around or an increased need for payroll resources.

METHODOLOGY

THE PRESENT STUDY

The research, method of study explains the systematic way of finding the
predetermined objectives. Moreover this provides the clean path to accomplish and
achieve clear solution for the problem stated. The following are stages through which
the research has passed to obtain the conclusions:

1. Research Design:

In this study, the research design used is descriptive in nature as it

describes the views, opinions and perception of the employees.

2. Collection of Data:

This study uses both primary and secondary data. Primary data refers to
the first hand information that is collected through questionnaire and on
personal interviews. Secondary data refers to the data that is not originally
collected but rather obtained from published or unpublished sources, i.e.,
information about the performance of the company, reports on the study,
review of literature etc.

Methods of data collection:

Questionnaire is prepared and circulated to the employees to know their
opinion on the Manpower planning in the organization. Questionnaire consists
of close ended questions which pre-specify all the answers and respondents

make a choice among them. While collecting the data, since women were not
able to read the questionnaire personal interview was conducted by translating
the questionnaire into a language which is understandable by them to know
about the functions of human resources activities implemented in the
organization.

Sample size:
The sample size selection for research is 60. This sample size was selected by using
random sampling technique.

Data Analysis:
After the data have been collected it has to be analyzed, the data obtained from the
questionnaire is arranged in a serial order. Then a copy with tabulation method is
being prepared.

Tabulation is a part of the technical procedure where in classified data are put
in the form of tables. The tables thus obtained were analyzed with statistical
techniques like percentage, pie diagrams.

OBJECTIVES OF THE STUDY

1. To study the process of Human resource planning at INDIA BULLS.
2. To study the payroll management at INDIA BULLS.
3. Does it follows the conventional method or developed any method of its own.
4. To study the process of socialization of the new employee at INDIA BULLS.
5. To know The Criterion of Grading a Candidates Personal Capabilities.

SCOPE OF THE STUDY

The scope of the study consists of analyzing the payroll management s given
for the employees at INDIA BULLS an analysis of the process was carried out and
recommendations were given accordingly. A questionnaire survey was conducted
among Mangers, Executives, Supervisors and Workmen covering the following
departments.

HR department.

General administration department.

Packing department.

Sales department.

Finance department.

Limitations of the study:

a) The primary data inference through personal interaction with the employees
may have an element of bias from the point of view of employee individual
perspective.
b) The understanding and knowledge may vary from person to person. The
replies given by respondents are assumed to be true, though they are not
uniform.
c) The survey is limited to the employees of INDIA BULLS, bids, Hyderabad.

10

CHAPTER-II

REVIEW OF
LITERATURE

11

PAYROLL MANAGEMENT
In a company, payroll is the sum of all financial records of salaries, wages,
bonuses and deductions.
Paycheck:
A paycheck is traditionally a paper document issued by an employer to pay
an employee for services rendered. In recent times, the physical paycheck has been
increasingly replaced by electronic direct deposit to bank accounts. Such employees
may still receive a complete pay slip (see below) package, but the attached check is
noted as non-negotiable.

In most countries with a developed wire transfer system, using a physical

check for paying wages and salaries has been uncommon for the past several decades.
However, vocabulary referring to the figurative "paycheck" does exist in some
languages, like German (Gehaltsscheck), partially due to the influence of US popular
media, but this commonly refers to a pay slip or stub rather than an actual check.
Some company payrolls have eliminated both the paper check and stub, in which case
an electronic image of the stub is available on an Internet website.

Payroll taxes:
Federal/national, state/provincial, and/or local agencies require employers to
perform various payroll functions, such as withholding amounts from employees'
compensation to cover income tax, Social Security, and Medicare.

Payroll taxes are levied by government agencies on employees' wages, tips,

and other compensation. The amounts withheld by employers from employees' pay

12

for federal income, social security, and Medicare taxes are considered to be trust-fund
taxes, because the money is held in a special trust fund for the U.S. government.
Amounts withheld for state and local income taxes are held in trust for the state and
local governments.
Pay slip:

An example of a pay slip from the John Lewis Partnership, showing gross salary,
tax and National Insurance paid and yearly bonus entitlement, among other things.
A pay stub, pay stub, pay slip, pay advice, or sometimes paycheck stub, is a document
an employee receives either as a notice that the direct deposit transaction has gone
through, or as part of their paycheck. It will typically detail the gross income and all
taxes and any other deductions such as retirement plan contributions, insurances,
garnishments, or charitable contributions taken out of the gross amount to arrive at
the final net amount of the pay, also including the year to date totals in some
circumstances.

13

Payroll card:
For employees that, for one reason or another, do not have access to a bank
account (bad check history, not in close proximity to bank, etc), there is a solution,
offered by most major Payroll Service Providers. Instead of an employee receiving a
check, and paying up to 5-10% to cash the check, the employee can have the direct
deposit loaded onto a debit card. In this, a company can save money on printing
checks, not buy the expensive check stock, and not having to worry about check
fraud, due to a check being lost or stolen. A payroll card is a plastic card allowing an
employee to access their pay by using a debit card. A payroll card can be more
convenient than using a check casher, because it can be used at participating
automatic teller machines to withdraw cash, or in retail environments to make
purchases. Some payroll cards are cheaper than payday loans available from retail
check cashing stores, but others are not. Most payroll cards will charge a fee if used at
an ATM more than once per pay period.

The payroll card account may be held as a single account in the employer's
name. In that case, the account holds the payroll funds for all employees using the
payroll card system. Some payroll card programs establish a separate account for each
employee, but others do not.

Many payroll cards are individually owned dda (demand deposit accounts)
that are owned by the employee. These cards are more flexible, allowing the
employee to use the card for paying bills, and the accounts are portable. Most payroll
card accounts are FDIC-insured, but some are not.

14

Payroll Frequencies:
Companies typically generate their payrolls on regular intervals, for the
benefit of regular income to their employees. The regularity of the intervals, though,
varies from company to company, and sometimes between job grades within a given
company. Common payroll frequencies include: daily, weekly, bi-weekly (once every
two weeks), semi-monthly (twice per month), and to somewhat of a lesser extent,
monthly. Less common payroll frequencies include: 4-weekly (13 times per year), bimonthly (once every two months), quarterly (once every 13 weeks), semi-annually
(twice per year), and annually.

Payroll Professionals:

In Canada, Payroll Professionals are certified by the Canadian Payroll Association.

They are qualified as either 'Payroll Compliance Practitioners (PCP)' or as
'Certified Payroll Managers (CPM)'.

In the United States, Payroll Professionals are certified by the American

Payroll Association. They are designated as Fundamental Payroll Certification (FPC)
or Certified Payroll Professional (CPP) after passing the appropriate certification
exam.
Upon completion of the required course material and with continuing
education and membership fees the person is then entitled to the post-nominal letters
associated with their current level of accomplishment.

15

In the United Kingdom, payroll professionals are represented by the Institute

of Payroll Professionals. In Ireland both the Irish Payroll Association (IPASS) and
Complete Office Package Systems Ltd provides education and training for payroll
professionals. IPASS are the representative body for payroll professionals in Ireland.
The Irish Government education body HETAC accredits the IPASS Payroll and VAT
qualifications.

Warrants:
Payroll warrants look like checks and clear through the banking system like
checks, but are not drawn against cleared funds in a deposit account. Instead they are
drawn against "available funds" that are not in a bank account, so the issuer can
collect interest on the float. In the US, warrants are issued by government entities
such as the military and state and county governments. Warrants are issued for payroll
to individuals and for accounts payable to vendors. Technically a warrant is not
payable on demand and may not be negotiable. [2] Deposited warrants are routed to a
collecting bank which processes them as collection items like maturing treasury bills
and presents the warrants to the government entity's Treasury Department for payment
each business day.
In the UK, warrants are issued as payment by the NS&I when a Premium
Bond is chosen.

16

Payroll Outsourcing:
Businesses may decide to outsource their payroll functions to an outsourcing
service like a payroll bureau or a fully managed payroll service. These can normally
reduce the costs involved in having payroll trained employees in-house as well as the
costs of systems and software needed to process payroll. Within the United States,
business payrolls are complicated in that taxes must be filed consistently and
accurately to applicable regulatory agencies. Restaurant payrolls which typically
include tip calculations, deductions, garnishments and other variables can be
extremely difficult to manage especially for new or small business owners.

In the UK, payroll bureaus will deal with all HM Revenue & Customs
enquiries and deal with employee's queries. Payroll bureaus also produce reports for
the businesses' account department and pay slips for the employees and can also make
the payments to the employees if required.

Another reason many businesses outsource is because of the ever increasing

complexity of payroll legislation. Annual changes in tax codes, PAYE and National
Insurance bands as well as more and more statutory payments and deductions having
to go through the payroll often mean there is a lot to keep abreast of in order
maintaining compliance with the current legislation.

17

Payrolling:
Payrolling is the business practice of referring a contingent worker to a
staffing vendor or payrolling provider so that they are the employer of record
responsible for employer taxes, payroll, and all legal matters pertaining to employing
workers. Different from sourcing (or recruiting) where the staffing vendor uses
internal recruiters to locate contractors on behalf of the requesting company or client,
payrolled workers are identified by the client.

Often payrolled workers are known to the client from previous engagements
or as former employees. Because the costs of recruiting workers in to contract
positions are eliminated the payrollees are often processed at reduced mark up rates.

In the last several years, some dedicated payrolling companies have emerged
in the staffing industry to provide payrolling services at greatly reduced pricing
around the world.

See also:

Human Resource is the most vital resource for any organization. It is

responsible for each and every decision taken, each and every work done and each
and every result. Employees should be managed properly and motivated by providing
best remuneration and compensation as per the industry standards. The lucrative
compensation will also serve the need for attracting and retaining the best employees.
Compensation is the remuneration received by an employee in return for
his/her contribution to the organization. It is an organized practice that involves
balancing the work-employee relation by providing monetary and non-monetary

18

benefits to employees. Compensation is an integral part of human resource

management which helps in motivating the employees and improving organizational
effectiveness.

Components of Compensation System:

Compensation systems are designed keeping in minds the strategic goals and
business objectives. Compensation system is designed on the basis of certain factors
after analyzing the job work and responsibilities. Components of a compensation
system

are as follows:

Types of Compensation:
Compensation provided to employees can direct in the form of monetary benefits
and/or indirect in the form of non-monetary benefits known as perks, time off, etc.
Compensation does not include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services. If the compensation
offered is effectively managed, it contributes to high organizational productivity.
Direct Compensation
Indirect Compensation

19

20

Need of Compensation Management

A good compensation package is important to motivate the employees to

increase the organizational productivity.

Unless compensation is provided no one will come and work for the
organization. Thus, compensation helps in running an organization
effectively and accomplishing its goals.

Salary is just a part of the compensation system, the employees have other
psychological and self-actualization needs to fulfill. Thus, compensation
serves the purpose.

The most competitive compensation will help the organization to attract

and sustain the best talent. The compensation package should be as per
industry standards.

Strategic compensation:
Strategic compensation is determining and providing the compensation
packages to the employees that are aligned with the business goals and objectives.

21

In todays competitive scenario organizations have to take special measures

regarding compensation of the employees so that the organizations retain the
valuable employees. The compensation systems have changed from traditional
ones to strategic compensation systems.

Payroll Management Processes

Calculation of gross salaries and deductible amounts is a tedious task which
involves risk. Some of the organizations use the traditional manual method of payroll
processing and some go for the advanced payroll processing software. An
organization opts for any of the following payroll processing methods available:

Manual System
Manual payroll system is the traditional payroll system which involves pen
and ink, adding machine, spreadsheet, etc instead of computers, software and other
computerized aids. The process was very popular when there were no computerized
means for payroll processing.

Now-a-days it is only few small scale organizations in the remote areas that
use the manual payroll. Sometimes the construction industry and manufacturing
industry also use the manual payroll systems for the contractual labour, as theses
contracts are on daily/weekly basis.

There is full control in the hands of owner. But the process is tedious, time consuming
and risky as it is more prone to errors.

22

Figure: Various Payroll Processes

Accountant:
Accountant is a professional having a degree/diploma course in
finance/accountancy. He/she is responsible for all the activities related to payroll
accounting. He/she has the sound knowledge of accounting principles and globally

23

accepted standards. The process adds costs to the organization. It involves paying
someone who is responsible for calculating the salaries of others. The financial
control regarding salary goes in the hand of accountant.
Payroll Software:
In todays computerized environment, payroll system has also developed itself
into automated software that performs every action needed by the payroll process. It
helps in calculating the payable amounts and deductions very easily. It also helps in
generating the pay slips in lesser time. Automated calculations result in no errors.
Data is validated automatically by the software.
It needs professionals to make use of the software for its efficient working.

Payroll Outsourcing
Payroll outsourcing involves a third party (an outsourcing company) in the
calculations of salaries and deductions. The outsourcing organization is responsible
for all the activities of the payroll accounting. It saves time and cost for the
organization. If there is more number of employees (say more than 900-1000) in the
organization, payroll outsourcing would be very much beneficial.
The data is provided to the consultants/outsourcing firms. The various payroll
functions undertaken by the outsourcing organizations are as follows:

Analysis of Payroll records, payroll taxes

Medical claim processing

Employee Insurance & Provident fund processing

24

Quality Audit procedures & planning

CHAPTER-III

INDUSTRY PROFILE
COMPANY PROFILE
25

26

INDUSTRY PROFILE

NATIONAL STOCK EXCHANGE

The National Stock Exchange of India (NSE) situated in Mumbai - is the
largest and most advanced exchange with 1016 companies listed and 726 trading
members. Capital market reforms in India and the launch of the Securities and
Exchange Board of India (SEBI) accelerated the incorporation of the second Indian
stock exchange called the National Stock Exchange (NSE) in 1992. After a few years
of operations, the NSE has become the largest stock exchange in India.
Three segments of the NSE trading platform were established one after another. The
Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital
Market (CM) segment was opened at the end of 1994. Finally, the Futures and
Options segment began operating in 2000. Today the NSE takes the 14th position in
the top 40 futures exchanges in the world.
In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX
Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a
diversified index of 50 stocks from 25 different economy sectors. The Indices are
owned and managed by India Index Services and Products Ltd (IISL) that has a
consulting and licensing agreement with Standard & Poor's.

27

In 1998, the National Stock Exchange of India launched its web-site and was the first
exchange in India that started trading stock on the Internet in 2000. The NSE has also
proved its leadership in the Indian financial market by gaining many awards such as
'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP
Web Award by CHIP magazine (1999).
The NSE is owned by the group of leading financial institutions such as Indian Bank
or Life Insurance Corporation of India. However, in the totally de-mutualised
Exchange, the ownership as well as the management does not have a right to trade on
the Exchange. Only qualified traders can be involved in the securities trading.
The NSE is one of the few exchanges in the world trading all types of securities on a
single platform, which is divided into three segments: Wholesale Debt Market
(WDM), Capital Market (CM), and Futures & Options (F&O) Market.
Each segment has experienced a significant growth throughout a few years of their
launch. While the WDM segment has accumulated the annual growth of over 36%
since its opening in 1994, the CM segment has increased by even 61% during the
same period. The National Stock Exchange of India has stringent requirements and
criteria for the companies listed on the Exchange. Minimum capital requirements,
project appraisal, and company's track record are just a few of the criteria. In addition,
listed companies pay variable listing fees based on their corporate capital size.
The National Stock Exchange of India Ltd. provides its clients with a single, fully
electronic trading platform that is operated through a VSAT network. Unlike most
world exchanges, the NSE uses the satellite communication system that connects

28

traders from 345 Indian cities. The advanced technologies enable up to 6 million
trades to be operated daily on the NSE trading platform.
NSE Nifty:
The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty), is the leading index for
large companies on the National Stock Exchange of India. S&P CNX Nifty is a well
diversified 50 stock index accounting for 22 sectors of the economy. It is used for a
variety of purposes such as benchmarking fund portfolios, index based derivatives and
index funds.
Nifty was developed by the economists Ajay Shah and Susan Thomas, then at IGIDR.
Later on, it came to be owned and managed by India Index Services and Products Ltd.
(IISL), which is a joint venture between NSE and CRISIL. IISL is India's first
specialised company focused upon the index as a core product. IISL have a consulting
and licensing agreement with Standard & Poor's (S&P), who are world leaders in
index services.
CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to
reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for
CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The S&P prefix
belongs to the US-based Standard & Poor's Financial Information Services.

29

NSE other indices:

S&P CNX Nifty
CNX Nifty Junior
CNX 100
S&P CNX 500
CNX Midcap
S&P CNX Defty
CNX Midcap 200

30

BOMBAY STOCK EXCHANGE:

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai;
popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange
in Asia. It is located at Dalal Street, Mumbai, India.
Bombay Stock Exchange was established in 1875. There are around 5,600 Indian
companies listed with the stock exchange, and has a significant trading volume. As of
October2006, the market capitalization of the BSE was about Rs. 33.4 trillion (US $ 730
billion). The BSE SENSEX (SENSitive indEX), also called the BSE 30, is a widely
used market index in India and Asia. As of 2005, it is among the 5 biggest stock
exchanges in the world in terms of transactions volume.
History:
An informal group of 22 stockbrokers began trading under a banyan tree opposite the
Town Hall

of Bombay from the mid-1850s, 1875, was formally organized as the Bombay

Stock Exchange (BSE).In January 1899, the stock exchange moved into the Brokers
Hall after it was inaugurated by James M MacLean. After the First World War, the BSE
was shifted to an old building near the Town Hall. In 1956, the Government of India
recognized the Bombay Stock Exchange as the first stock exchange in the country
under the Securities Contracts (Regulation) Act.1995, when it was replaced by an
electronic (eTrading) system named BOLT, or the BSE Online Trading system. In 2005,
the status of the exchange changed from an Association of Persons (AoP) to a full

31

fledged corporation under the BSE (Corporatization and Demutualization) Scheme , 2005
(and its name was changed to The Bombay Stock Exchange Limited).
BSE Sensex:
The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed
of 30 scrips, with the base April 1979 = 100. The set of companies which make up the
index has been changed only a few times in the last 20 years. These companies
account for around one-fifth of the market capitalization of the BSE.
SENSEX, first compiled in 1986 was calculated on a "Market CapitalizationWeighted" methodology of 30 component stocks representing a sample of large, wellestablished and financially sound companies. The base year of SENSEX is 1978-79.
The index is widely reported in both domestic and international markets through print
as well as electronic media. SENSEX is not only scientifically designed but also based
on globally accepted construction and review methodology. From September 2003,
the SENSEX is calculated on a free-float market capitalization methodology. The
"free-float Market Capitalization-Weighted" methodology is a widely followed index
construction methodology on which majority of global equity benchmarks are based.
The growth of equity markets in India has been phenomenal in the decade gone by.
Right from early nineties the stock market witnessed heightened activity in terms of
various bull and bear runs. More recently, the bourses in India witnessed a similar
frenzy in the 'TMT' sectors. The SENSEX captured all these happenings in the most
judicial manner. One can identify the booms and bust of the Indian equity market
through SENSEX.

32

The values of all BSE indices are updated every 15 seconds during the market hours
and displayed through the BOLT system, BSE website and news wire agencies.
SENSEX calculation:
SENSEX is calculated using a "Market Capitalization-Weighted" methodology.
As per this methodology, the level of index at any point of time reflects the total
market value of 30 component stocks relative to a base period. (The market
capitalization of a company is determined by multiplying the price of its stock by the
number of shares issued by the company). An index of a set of combined variables
(such as price and number of shares) is commonly referred as a 'Composite Index' by
statisticians. A single indexed number is used to represent the results of this
calculation in order to make the value easier to work with and track over time. It is
much easier to graph a chart based on indexed values than one based on actual
values.
The base period of SENSEX is 1978-79. The actual total market value of the
stocks in the Index during the base period has been set equal to an indexed value of
100. This is often indicated by the notation 1978-79=100. The formula used to
calculate the Index is fairly straightforward. However, the calculation of the
adjustments to the Index (commonly called Index maintenance) is more complex.
The calculation of SENSEX involves dividing the total market capitalization of 30
companies in the Index by a number called the Index Divisor. The Divisor is the only
link to the original base period value of the SENSEX. It keeps the Index comparable
over time and is the adjustment point for all Index maintenance adjustments. During
market hours, prices of the index scrips, at which latest trades are executed, are used

33

by the trading system to calculate SENSEX every 15 seconds and disseminated in real
time.During market hours, prices of the index scrips, at which trades are executed, are
automatically used by the trading computer to calculate the SENSEX every 15
seconds and continuously updated on all trading workstations connected to the BSE
trading computer in real time.
BSE - other Indices:
Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses
other stock indices as well:
BSE 500

BSE PSU

BSE MIDCAP

BSE SMLCAP

BSE BANKEX

34

COMPANY PROFILE

INDIABULLS
Indiabull

Type

Public company
NSE: INDIABULLS

Traded as
BSE: 532544

Industry
Financial Services, Real Estate, Power
Founded
May, 2000
Headquarters
Gurgaon, India[1]
Sameer Gehlaut, Chairman & CEO,
Key people

Rajiv Rattan, Vice Chairman, Saurabh

Mittal, Vice Chairman
Securities, Consumer Finance, Mortgages,

Products
Real Estate
Website

www.Indiabulls.com

35

ABOUT US

In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut
and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct
securities company with a NSE membership and started offering brokerage services.
A Few months later, their friend Saurabh Mittal also joined them. By December 1999,
the company embarked on its journey to build one of the first online platforms in
India for offering internet brokerage services. In January 2000, the 3 founders
incorporated Indiabulls Financial Services and made it as the flagship company.
In mid 2000, Indiabulls Financial Services received venture capital funding from Mr
L.N. Mittal & Mr Harish Fabiani. In late 2000, Indiabulls Securities, a subsidiary of
Indiabulls Financial Services started offering online brokerage services and
simultaneously opened physical offices across India. By 2003, Indiabulls securities
had established a strong pan India presence and client base through its offices and on
the internet.
In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a
share. In late 2004, Indiabulls Financial Services started its financing business with
consumer loans. In March 2005, Indiabulls Properties Private Ltd, a subsidiary of
Indiabulls Financial Services, participated in government auction of Jupiter Mills, a
defunct 11 acre textile mill owned by NTC in Lower Parel, Mumbai. Indiabulls
Properties private Ltd won the mill in auction and that purchase started Indiabulls real
estate business. A few months later, Indiabulls Real Estate company pvt ltd bought
Elphinstone mill in Lower Parel, another textile mill auctioned by NTC.
With real estate business gaining size, Indiabulls Financial Services demerged the real
estate business under Indiabulls Real Estate and each shareholder of Indiabulls

36

Financial Services received additional share of Indiabulls Real Estate through the
demerger. Subsequently, Indiabulls Financial Services also demerged Indiabulls
Securities and each shareholder of Indiabulls Financial Services also received a share
of Indiabulls Securities.
In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls
Power, to build power plants and started work on building Nashik & Amrawati
thermal power plants. Indiabulls Power went public inSeptember 2009.
Today, Indiabulls Group has a networth of Rs 19,320 Crore & has a strong presence in
important sectors like financial services, power & real estate through independently
listed companies and Indiabulls Group continues its journey of building businesses
with strong cash flows.

CHAIRMANS DESK
Sameer Gehlaut
Chairman, Indiabulls Group
Sameer Gehlaut has been the chairman of Indiabulls Group since inception. He is also
the chairman of major Indiabulls companies: Indiabulls Power, Indiabulls Housing
Finance & Indiabulls Real Estate. Under his leadership, Indiabulls Group has grown
in scale and size to a business house with strong businesses in various sectors.
Mr Gehlaut started Indiabulls Group after working briefly with Halliburton before
returning to India. Mr Gehlaut received a B.Tech degree in Mechanical Engineering
from Indian Institute of Technology, Delhi.

37

MANAGEMENT TEAM

Indiabulls Group

Mr Rajiv Rattan - Vice Chairman

Mr Saurabh Mittal - Vice Chairman

Mr Ashok Kacker - Group President

Mr Ashok Sharma - Group CFO

Mr Ajit Mittal - Group Director

Mr Gurbans Singh - Group Director

Mr Tejinderpal Singh Miglani - Group CIO

Indiabulls Housing Finance Limited

Mr Gagan Banga - CEO

Mr Ashwini Kumar Hooda - DMD

Indiabulls Real Estate Limited

Mr Narendra Gehlaut - MD
Indiabulls Power Limited

Mr Rajendra Kumar Sugandhi - CEO

Mr Mehul Johnson - President

Indiabulls Securities Limited

Mr Divyesh Shah - CEO

Mr Vijay Babbar - DMD

38

BUSINESSES
Indiabulls Group is one of the country's leading business houses with business
interests in Power, Financial Services, Real Estate and Infrastructure. Indiabulls
Group companies are listed in Indian and overseas financial markets. The Net worth
of the Group is Rs 19,320 Crore and the total planned capital expenditure of the
Group by 2013-14 is Rs 35,000 Crore.

Indiabulls Power currently developing Thermal Power Projects with an aggregate

capacity of 5400 MW. The first unit is expected to go on stream in Dec 2012. The net
worth of Indiabulls Power is Rs 5,507 Crore. The company has a total capital
expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating.

Indiabulls Housing Finance Ltd. (IBHFL) is Indias 3rd largest Housing Finance
Company (HFC). The company is registered as a Housing Finance Company (HFC)
and is regulated by the National Housing Bank (NHB). IBHFL is a leading provider
of home loans, loan against properties and commercial vehicle loans.
The company has a loan asset book of over Rs. 34,400 Cr and has, since inception,
disbursed over Rs. 71,000 Cr to over 5.5 lakh customers. With a net worth of over Rs.
5,300 Cr, IHFL is one of the best capitalized companies amongst its peer with a
CRAR of 18.47% as at March 31st, 2013. Further, the company is one of the least
levered amongst its peer set with a net debt-to-equity ratio of only 4.67. The company
enjoys a credit rating of AA+.
IBHFL has 200 well appointed and customer accessible walk-in branches spread
across the country. Companys national and International reach is further enhanced
from tie-ups with Yes Bank and Doha Bank.

39

Indiabulls Real Estate is among India's top Real Estate companies with development
projects spread across residential complexes, integrated townships, commercial office
complexes, hotels, malls, Special Economic Zones (SEZs) and infrastructure
development. Indiabulls Real Estate partnered with Farallon Capital Management
LLC of USA to bring the first FDI into real estate in the country. The company has a
networth of Rs 7,403 Crore and has purchased prime land, mostly in the metros and
other Tier 1 cities worth Rs 4,000 Crore in government auctions alone. Indiabulls Real
Estate is currently developing 72.86 million sqft into premium quality, high-end
commercial, residential and retail spaces. The company has been assigned 'A+' rating.

Indiabulls Securities is one of India's leading capital markets companies providing

securities broking and advisory services. Indiabulls Securities also provides
depository services, equity research services and IPO distribution to its clients and
offers commodities trading through a separate company. These services are provided
both through on-line and off-line distribution channels. Indiabulls Securities is a
pioneer of on-line securities trading in India. Indiabulls Securities in-house trading
platform is one of the fastest and most efficient trading platforms in the country.
Indiabulls Securities has been assigned the highest rating BQ-1 by CRISIL.

40

INDIABULLS FOUNDATION
India has witnessed an economic transformation over the past two decades, translating
into higher incomes, better educational opportunities, improved infrastructure, a
dynamic private sector, and leadership in the global community. We have much to be
proud of.
But we also recognize that we have a long way to go. Over 700 million people live
under $2 a day. Learning levels in schools remain abysmally low, and most of our
rural population does not have access to basic health care, regular electricity, clean
water, and sanitation. India has some of the worlds worst statistics on basic
development indicators such as malnutrition, infant mortality, and gender
discrimination.
As a society, we are at the confluence of accelerated economic progress and extreme
deprivation. As corporate citizens, we at Indiabulls are conscious of the opportunities
and the responsibility that this confluence presents and are keen to help in building an
inclusive society.
One of the first initiatives of Indiabulls Foundation is to support the development of
rural districts. We have initiated a few pilot projects in Rajasthan with an open
collaborative approach which leverages the efforts of local stakeholders for a robust
and scalable structure. Over time, as we understand the effectiveness of these pilots,
we will expand them further.
Some of these pilot projects are in rainwater harvesting, groundwater management,
tree plantation, IT projects for rural development, income generation support for rural
women, skills training for rural youth, conducting eye camps for rural schoolchildren
and in trying to be of support to traditional artisans.

41

FINANCIALS:
Total Group Networth Rs. 19,335 Cr
Total Group PAT for FY 12-13 Rs. 1,454 Cr.
Total Group Capital Expenditure Rs. 6,200 Cr. (US $ 1.2 bn.) capex in FY
1011. Planned capex of Rs. 29,000 Cr (US $ 5.7 bn.) by FY 2014-15.
Focus on Execution and on ground results translating into profits.
For its ongoing projects Indiabulls Group consumes 385 MT of Steel, 550
MT of Cement & 1,700 CUM of RMC on daily basis.
Creating Value for Shareholders Dividend payout of Rs. 913 Cr. in FY 12-13

42

Investors

Statement of unclaimed and unpaid amounts

Indiabulls Group Presentation

Code Of Conduct for Board Members and Senior Management

Shareholding Pattern of Indiabulls Power Limited. as on 30 th June 2012

QUERIES
Kubeir Khera
Indiabulls House, Indiabulls Finance Centre,
Senapati Bapat Marg, Parel West, Mumbai - 400 013
Phone: +91 22 61899400 | Fax: +91 22 61899400
Email: khera@indiabulls.com

43

CHAPTER-IV

DATA ANALYSIS
& INTERPRETATION

44

1) How long have you been associated with this organization?

ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Below 1 year
1 to 2 years
2 to 4 years
4 to 6 years
More than 6 years
Total

10
24
10
06
05
60

25
40
17
10
08
100

Interpretation:

45

In the above analysis it shows that out of all respondents, 25% of respondents
are working with the organization below one year, 40% of respondents are
working with the organization between 1 to 2 years, 17% of respondents are
working with the organization between 2 to 4 years, 10% of respondents are
working with the organization between 4 to 6 years and 8% of respondents are
working with the organization above the 6 years..

46

2) What is the level of the employee grade in organizational hierarchy?

ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Level 1
Level 2
Level 3
Total

40
20
00
60

67
33
00
100

Interpretation:

In the above analysis it shows that out of all respondents, 67% of more
respondents come under level 1 and 33% of respondents comes under level 2
of the organization.

3) What is the salary range?

SPECTS

NO. OF RESPONDENTS

47

PERCENTAGE (%)

Below Rs5000/Rs5000/- to Rs10000/Rs10000/- to Rs15000/Rs15000/- to Rs25000/More than Rs25000/Total

26
18
12
03
01
60

43
30
20
05
02
100

Interpretation:

In the above analysis it shows that out of all respondents, 43% of respondents
are working below the salary of Rs5000/-, 30% of respondents are working
between the salary of Rs5000/- to Rs10000/-, 20% of respondents are working
between the salary of Rs10000/- to Rs15000/-, 5% of respondents are working
between the salary of Rs15000/- to Rs25000/- and 2% of respondents are
working with the salary of above Rs25000/- .
4) Considering the competitors pay package while determining the package
of employees?
ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Yes
No
Total

26
34
60

43
57
100

48

Interpretation:

In the above analysis it shows that out of all respondents, 43% of respondents
said yes, that they are considering competitors pay packages in determining
their pay package and rest of 57% of more respondents said no to that.

5) What are the factors used to determine the pay?

ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Competitors benchmarking
Salary survey
Any other
Total

30
24
06
60

50
40
10
100

49

Interpretation:

From the above analysis it shows that the out of all respondents, 50% of more
respondents said they are using competitors benchmarking, 40% of
respondents said they are using salary survey and 10% of respondents said
dont know the factors determining their pay.

6) How often is the salary revised?

ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Every 3 months
Every 6 months
Every year
Total

02
18
40
60

03
30
67
100

50

Interpretation:

From the above analysis it shows that the out of all respondents, 67% of more
respondents said that their salary is getting revised every year, 30% of
respondents said that their salary is getting revised for every 6 months and rest
of 3% of respondents said that their salary is getting revised for every 3
months.

7) What are the satisfaction levels of pay?

ASPECTS

NO. OF

PERCENTAGE (%)

RESPONDENTS

Highly satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied
Total

04
08
34
12
02
60

51

07
13
57
20
03
100

Interpretation:

From the above analysis it shows that the out of all respondents, 57% of more
respondents neither satisfied nor dissatisfied, 20%of respondents dissatisfied,
13% of respondents satisfied, 7% of respondents highly satisfied and 3% of
respondents highly dissatisfied with the providing pay packages in the
organization.
8) Is the organizational pay structure motivating employee towards work?
ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Yes
No
Total

26
34
60

43
57
100

Interpretation:

52

In the above analysis it shows that out of all respondents, 43% of respondents
said yes and rest of 57% of more respondents said no to that they are not
getting motivated by their pay package.

9) Is the organization providing merit pay?

ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Yes
No
Total

20
40
60

43
57
100

Interpretation:

53

In the above analysis it shows that out of all respondents, 33% of respondents
said yes, that they are getting paid for merit and rest of 67% of more
respondents said no to that.

10) Is the pay structure retaining employee to this organization?

ASPECTS

NO. OF RESPONDENTS

PERCENTAGE (%)

Highly satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly Dissatisfied
Total

04
10
32
12
02
60

07
17
53
20
03
100

Interpretation:
From the above analysis it shows that the out of all respondents, 53% of more
respondents neither satisfied nor dissatisfied, 20%of respondents dissatisfied, 17% of

54

respondents satisfied, 7% of respondents highly satisfied and 3% of respondents

highly dissatisfied with their retention because of pay packages in the organization.

11) Satisfaction and dissatisfaction level towards, whether the Salary system in your
organization or not.
LEVEL OF OPTION

NO. OF RESPONENTS

% OF RESPONDENT

YES

42

84

NO

16

INTREPRETATION:From the above bar graph it can be seen that among 50 employees, 84% of employees
are satisfied with the Salary system used in organization 16% of employees are not
satisfied Salary system whereas we need to give more focus on dissatisfied
employees.

55

12. Are u satisfied with incentives and benefits provided other than salary?
(a) YES

(b) NO
No. of

s.no

Options Responses
1
YES
88
2
NO
12
TOTAL
100

Percentage
88
12
100

% of respondents

12% NO

88% YES

Interpretation:
A majority of 88% of the employees said that a good workman gets
motivated with frequent Compensative pay and 12% of the employees are not
satisfied with above.

56

13. Do you think that you are compensated higher than your competitor organizations
(a) YES

S.NO
1
2

OPTIONS
YES
NO
TOTAL

(b) NO

NO OF

% OF

RESPONDENTS
72
28
100

RESPONDENTS
72
28
100

Interpretation: 72%of the employees feel that they are compensated more than
their competitors. The company should pay competitive salaries so that employees are

57

14.Is the organization maintains the record as per government norms.

LEVEL OF OPTION

NO. OF RESPONENTS

% OF RESPONDENT

YES

56

100

NO

INTERPRETATION:- From the above bar graph it can be seen that among 50
employees, 100% of the employees are satisfied by the maintenance of all reports by
the organization according to the government norms and no case is reported against
the organization till date of violation of government rule and policy from the
respondents.

15. The maintains of Employee details confidentially.

58

LEVEL OPTIONS

NO.OF RESPONDENTS

% OF RESPONDENTS

YES

46

92

NO

CHART NO. 4.14.14

SOURCE: PRIMARY DATA

INTERPRETATION :
92% of the Employees are satisfied by the maintains of Employee inputs and we
need to more focus on the 8 % dissatisfied

59

CHAPTER-V

FINDINGS
AND
SUGGESTIONS

CONCLUSIONS

60

1. From the Questionnaire which we have collected from the employees, we can
conclude that the age group in organization was from below 1 year to above 6
years.
2. Most of the employee pay grades fall in level 1 and level 2 of the hierarchy.
3. The range of the salary starts from below Rs5000/- to above Rs25000/-.
4. Concluded that the various factors used to determine the pay.
5. The multiple voices of satisfaction levels were seen.
6. It was concluded that employee retention was in balanced stage in the
organization.

FINDINGS

61

1. Most of the employees working in the organization have the service between 1
to2 years.
2. Most of the employee pay grades fall in the level 1.
3. Most of the employees are working under the salary range of below Rs5000/-.
4. Most of the employees disagree that organization is not considering
competitor pay structure in determining pay.
5. Most of the employees say bench marking is the determining factor of pay.
6. Most of the employees say that the salary is getting revised every year.
7.

Most of the employees neither satisfied nor dissatisfied with their salaries.

8. Most of the employees say that pay is not at all motivating towards work.
9. Most of the employees say that they are not getting provided merit pay.
10. Most of the employees neither they satisfied nor dissatisfied in retaining to the
organization about the pay.

62

SUGGESTIONS

1. Employees are expecting merit pay, so they want their pay based upon their
performance.
2. Company has to focus on the experienced employees not to go away from the
organization.
3. The satisfaction levels of employees regarding salary is less, so better to
provide fair remuneration.
4. Along with salary, providing other facilities like food coupons may retain
lower level employees.
5. It is better to make the employee know exactly on what basis salary is getting
determined, it may lead to satisfy, motivate, retain to organization.

63

QUESTIONNAIRE

64

QUESTIONNAIRE ON PAYROLL MANAGEMENT

Name: _______________________________ Age: ___________________

Designation: ________________________ Qualification: _____________

1) How long have you been associated with this organization?

a) Below 1 year

b) 1 to 2 years

d) 4 to 6 years

e) More than 6 years

c) 2 to 4 years

2) What is the level of the employee grade in organizational hierarchy?

a) Level 1

b) Level 2

3) What is the salary range?

a) Below Rs5,000/-

c) Level 3

b) Rs5,000/- to Rs10,000

c) Rs10,000/- to Rs15,000/-

d) Rs15,000/- to Rs25,000/- e) Above Rs25,000/-

4) Considering the competitors pay package while determining the package of

employees?

) Yes/No

5) What are the factors used to determine the pay?

a) Competitors benchmarking

6) How often is the salary revised?

a) Every 3 months

b) Salary survey c) Any other (Please specify)

b) Every 6 months

7) What are the satisfaction levels of pay? (

a) Highly satisfied

b) Satisfied

c) Every year

)
c) Neither satisfied nor dissatisfied

65

d) Dissatisfied

e) Highly dissatisfied

8) Is your organizational pay structure motivating you towards work? Yes/No

9) Is the organization providing merit pay? Yes/No

10) Is the pay structure retaining employee to this organization? (

a) Highly satisfied

b) Satisfied

d) Dissatisfied

e) Highly dissatisfied

c) Neither satisfied nor dissatisfied

11) Satisfaction and dissatisfaction level towards, whether the Salary system in your
organization or not.
(a) YES

(b) NO

12. Are u satisfied with incentives and benefits provided other than salary?
(a) YES

(b) NO

13. Do you think that you are compensated higher than your competitor
organizations?
(a) YES

(b) NO

14. Is the organization maintains the record as per government norms? Yes/No
15. The maintains of Employee details confidentially? Yes/No

66

BIBLIOGRAPHY

67

BIBILOGRAPHY

C.B.MAMORIA

___

PERSONNEL MANAGEMENT

E.SUBBA RAO

___

HUMAN RESOURCE DEVELOPMENT

K.ASWATHAPPA

___

OGRANISATIONAL BEHAVIOUR

Websites

http:///www.hr.ucdavis

http:///www.hr.uwa.edu

68