pAY ROLL Icici 2011

7/30/2019 pAY ROLL Icici 2011

1/85

1

CHAPTER-I

INTRODUCTION


2/85

2

INTRODUCTION:

Torrington and Hall (1987) define personnel management as being:

a series of activities which: first enable working people and their employing organisations to

agree about the objectives and nature of their working relationship and, secondly, ensures that

the agreement is fulfilled"

While Miller (1987) suggests that HRM relates to:

".......those decisions and actions which concern the management of employees at all levels in the

business and which are related to the implementation of strategies directed towards creating andsustaining competitive advantage"

Pay roll:

In a company,payroll is the sum of all financial records ofsalaries for an employee, wages,

bonuses and deductions. In accounting, payroll refers to the amount paid to employees for

services they provided during a certain period of time. Payroll plays a major role in a company

for several reasons. From an accounting point of view, payroll is crucial because payroll and

payroll taxes considerably affect the net income of most companies and they are subject to laws

and regulations (e.g. in the U.S. payroll is subject to federal and state regulations). From ethics in

business viewpoint payroll is a critical department as employees are responsive to payroll errors

and irregularities: good employee morale requires payroll to be paid timely and accurately. The

primary mission of the payroll department is to ensure that all employees are paid accurately and

timely with the correct withholdings and deductions, and to ensure the withholdings and

deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and

deductions from a paycheck.

Pay Check

A Pay Check 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
http://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/w/index.php?title=Salaries_for_an_employee&action=edit&redlink=1http://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Tax_deductionhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Employment#Employerhttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Employment#Employerhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Tax_deductionhttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/w/index.php?title=Salaries_for_an_employee&action=edit&redlink=1http://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/wiki/Company


3/85

3

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 "pay cheque" does exist in some languages, like German

(Gehaltsscheck), partially due to the influence of popular media, but this commonly refers to a

payslip or stub rather than an actual cheque. Some company payrolls have eliminated both the

paper cheque and stub, in which case an electronic image of the stub is available on an Internet

website.

Payroll taxes

Government agencies at various levels require employers to withhold income taxes from

employees' wages.

In the United States, "payroll taxes" are separate from income taxes, although they are levied on

employers in proportion to salary; the programs they fund include Social Security, and Medicare.

U.S. income and payroll taxes collected through deductions are considered to be trust fund taxes,

because the employer holds the deducted money in trust for later remittance.

Human Resource Management: Objectives

On an average, every employee at Nutrient undergoes at least 2 training programmersfor a financial year and the employer in HRD requires the executive development

programmed at the time of intensive competition.

So the study is aimed to know the adequacy of training given to employees andemployers.

To know whether employees and employers are having enthusiasm in knowing abouttraining and development programmers, training plans, implementation and

participation.
http://en.wikipedia.org/wiki/Direct_deposithttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Figurative_languagehttp://en.wikipedia.org/wiki/German_languagehttp://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/Social_Security_%28United_States%29http://en.wikipedia.org/wiki/Medicare_%28United_States%29http://en.wikipedia.org/wiki/Trust_fundhttp://en.wikipedia.org/wiki/Trust_fundhttp://en.wikipedia.org/wiki/Medicare_%28United_States%29http://en.wikipedia.org/wiki/Social_Security_%28United_States%29http://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/German_languagehttp://en.wikipedia.org/wiki/Figurative_languagehttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Direct_deposit


4/85

4

To suggest appropriate techniques and modification in training to achieve corporategoals.

Development to employers arises due to providing technical skills and conceptual skills

to non-technical managers and managerial skills and conceptual skills to technical managers.

Need for basic purposes of Employee Payroll:

Employee Payroll of the employees is important if the employees are

satisfied then only the organization can function smoothly increases its production, faces

competition.

If employees are satisfied with their job they will carry a positive attitude. Hence the

study has been undertaken to assess the employee job Payroll which is necessary for the

organization in order to make sound decisions.

1) To increase productivity.2) To improve quality.3) To help a company fulfill its future personnel needs.4) To improve organizational climate.5) To improve health & safety.6) Obsolescence prevention.7) Personal growth.


5/85

5

SCOPE OF THE STUDY

One of the main functions of personnel management in industrial organizationis to impart programmers to its employees.

HRM plays a large part in determining the effectiveness and efficiency of the

establishment. Increase in productivity is possible only when there is an increase in quantity of

output. It applies not only to new employees but also to experienced people. It can help

employees and employers to increase their level of performance and to develop skills,

knowledge on their present job assignments.

Objectives of Employee Payroll (ICICI):

To Analyze the Pay roll System in ICICI Ltd.,

To ensure effective utilization and maximum development of Employee.

To ensure reconciliation of individual goals with those of the organization.

To achieve and maintain high morale among employees.

To increase to the fullest the employee's job satisfaction and self-actualization.

To develop and maintain a quality of work life.

To develop overall personality of each employee in its multidimensional aspect.

To enhance employee's capabilities to perform the present job.


6/85

6

RESEARCH METHODOLOGY

Research is scientific and systematic search pertinent information in a specific

topic. The meaning of research is A Careful Investigation (or) Inquiry.

EMPLOYEE PAYROLL is the corner stone of sound management, and it makes

employees and employers more effective and productive. It is actively and intimately

connected with all personnel and managerial activities.

There is a present need for EMPLOYEE PAYROLL measures. So that new and changed

techniques may be taken advantage and improvements effected in new methods, which are

woefully inefficient. Training is practical and of vital necessity because, apart from other

advantages mentioned, and increase their Market Value, earning power job secure is

spending for EMPLOYEE PAYROLL activities. It is introducing global concepts like

Team Building Time Management

It uses all the technology available and modern equipment in EMPLOYEE PAYROLL

programmers. In a contemporary study, it was revealed that it is more inflammable so the

workers and superiors must concentrate on the work what they are doing. At any time if they

dont concentrate on their work it is very dangerous to the whole industry.

RESEARCH METHODOLOGY

The methodology that is adopted for the study is such that it facilities the data

accumulation. The information is gathered through survey method. The survey method has been

adopted for collecting the data from employees.

RESEARCH DESIGN:Research Design is defined as the specification of methods and procedures for acquiring the

information needed. Generally the research design is any of the following three types-

DESCRIPTIVE, EXPLORATORY and CASUAL.


7/85

7

DESCRIPTIVE STUDY:Descriptive study/research is marked by the prior formulations of specific research questions.

The investigator already knows a substantial amount about the research problem before the

project is initiated. Hence this is chosen for my research.

EXPLORATORY STUDY:The major purpose of exploratory study is the identification of problem, the more precision

formulation of problem and the formulation of new alternative courses of action.

CASUAL STUDY:The study involves the determination of the causes of what the researchers are predicting.

this is mainly a cause and effect study. The research design selected by the researcher in the

present study is DESCRIPTIVE in nature.

RESEARCH INSTRUMENT:HR research has a one main research instruments in collecting primary data. That is

questionnaires.

In order to extract first hand information from the respondents, a pre-tested questionnaire

was prepared and the same was administered to the respondents.

DATA SOURCES:Data means a collection of facts in real life statistical data is a collection of facts in numerical

figures. The data sources are usually identified using the type of data needed. There are two

types of data.

1. Primary data2. Secondary data

PRIMARY DATA:The first hand information by the investigator by means of observation face to face

questioning, telephone interview and mailing questionnaire is called primary data.

Primary data consists of original information gathered for a specific purpose.


8/85

8

SOURCES OF PRIMARY DATA;-For the purpose of present study, the primary data collected from respondents by contacting

them personally.

SECONDARY DATA:Secondary data consists of information that already exists somewhere, having been collected

for another purpose

SOURCES OF SECONDARY DATA:For the purpose of present study, the secondary data was collected from published data of the

companies. Population is the aggregate of objects animate and in animate, under study in any

statistical investigation. His population for the study here was employees in Met life.

SAMPLING PROCEDURE

With a view to arrive at the sample population for the study, a Purposive-Cum convenient

sampling was followed.

SAMPLE SIZE

The sample size includes 100 employees who are working in the ICICI.


9/85

9

LIMITATIONS

The study is limited to the policies and practices being followed in ICICI get the complete data,

in view of its classified nature of the organization.

Time factor is the main constraint for the study as it was restricted only to eight-nineweeks.

Sampling error is not taken into consideration. The information given by the sample frame is thought accurate by researcher. As the method adopted is Random Sampling, result may not be accurate and believable. As the sample size is 100, whole of the facts could not be collected. The findings of the study are confined only to the question asked in the questionnaire and

through personal interviews.

The study has been carried in ICICI Limited only.


10/85

10

CHAPTER-II

INDUSTRY PROFILE

&

COMPANY PROFILE


11/85

11

Banking in India

Banking in India originated in the last decades of the 18th century. The oldest bank in existence

in India is the State Bank of India, a government-owned bank that traces its origins back to June

1806 and that is the largest commercial bank in the country. Central banking is the responsibilityof the Reserve Bank of India, which in 1935 formally took over these responsibilities from the

then Imperial Bank of India, relegating it to commercial banking functions. After India's

independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the

government nationalized the 14 largest commercial banks; the government nationalized the six

next largest in 1980.

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is

with the Government of India holding a stake), 31 private banks (these do not have government

stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They

have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by

ICRA Limited a rating agency, the public sector banks hold over 75 percent of total assets of the

banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

Early history

Banking in India originated in the last decades of the 18th century. The first banks were The

General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now

defunct. The oldest bank in existence in India is the State Bank of India, which originated in the

Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was

one of the three presidency banks, the other two being the Bank of Bombay and the Bank of

Madras, all three of which were established under charters from the British East India Company.

For many years the Presidency banks acted as quasi-central banks, as did their successors. The

three banks merged in 1921 to form the Imperial Bank of India, which, upon India'sindependence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a

consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and

still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_India


12/85

12

honor belongs to the Bank of Upper India, which was established in 1863, and which survived

until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance

Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from the Confederate

States, promoters opened banks to finance trading in Indian cotton. With large exposure to

speculative ventures, most of the banks opened in India during that period failed. The depositors

lost money and lost interest in keeping deposits with banks. Subsequently, banking in India

remained the exclusive domain of Europeans for next several decades until the beginning of the

20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire

d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;

branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself in

Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the

British Empire, and so became a banking center.

The Bank of Bengal, which later became the State Bank of India.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in

Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in

1895, which has survived to the present and is now one of the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period

of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial
http://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/American_Civil_Warhttp://en.wikipedia.org/wiki/Lancashirehttp://en.wikipedia.org/wiki/Confederate_Stateshttp://en.wikipedia.org/wiki/Confederate_Stateshttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Pondicheryhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Indian_rebellion_of_1857http://en.wikipedia.org/wiki/File:Bank_of_Benghttp://en.wikipedia.org/wiki/Indian_rebellion_of_1857http://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Bengalhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Pondicheryhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Comptoire_d%27Escompte_de_Paris&action=edit&redlink=1http://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Confederate_Stateshttp://en.wikipedia.org/wiki/Confederate_Stateshttp://en.wikipedia.org/wiki/Lancashirehttp://en.wikipedia.org/wiki/American_Civil_Warhttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simlahttp://en.wikipedia.org/wiki/Alliance_Bank_of_Simla


13/85


14/85

14
http://en.wikipedia.org/wiki/File:Scheduled_banking_structure_in_Ind


15/85

15

COMPANY PROFILE


16/85

16

COMPANY PROFILE

ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$ 77

billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million) for the

nine months ended December 31, 2009. The Bank has a network of 1,675 branches and about4,883 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking

products and financial services to corporate and retail customers through a variety of delivery

channels and through its specialized subsidiaries and affiliates in the areas of investment

banking, life and non-life insurance, venture capital and asset management. The Bank currently

has subsidiaries in the United Kingdom, Russia and Canada, branches in United States,

Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and

representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,

Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock

Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New

York Stock Exchange (NYSE).

Corporate Profile

ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$ 77

billion) as on December 31, 2009.

Board Members

Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar

Mr. Homi R. Khusrokhan

Mr. Lakshmi N. Mittal

Mr. Narendra Murkumbi
http://www.icicibank.com/aboutus/board-of-members-kvk.htmlhttp://www.icicibank.com/aboutus/board-of-members-iyengar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-hrk.htmlhttp://www.icicibank.com/aboutus/board-of-members-mittal.htmlhttp://www.icicibank.com/aboutus/board-of-members-murkumbi.htmlhttp://www.icicibank.com/aboutus/board-of-members-murkumbi.htmlhttp://www.icicibank.com/aboutus/board-of-members-mittal.htmlhttp://www.icicibank.com/aboutus/board-of-directors-hrk.htmlhttp://www.icicibank.com/aboutus/board-of-members-iyengar.htmlhttp://www.icicibank.com/aboutus/board-of-members-kvk.html


17/85

17

Dr. Anup K. Pujari

Mr. Anupam Puri

Mr. M.S. Ramachandran

Mr. M.K. Sharma

Mr. V. Sridar

Prof. Marti G. Subrahmanyam

Mr. V. Prem Watsa

Ms. Chanda D. Kochhar,

Managing Director & CEO

Mr. Sandeep Bakhshi,

Deputy Managing Director

Mr. N. S. Kannan,

Executive Director & CFO

Mr. K. Ramkumar,

Executive Director

Mr. Sonjoy Chatterjee,

Executive Director

Mr. K. V. Kamath is a mechanical engineer and did his management studies from the Indian

Institute of Management, Ahmedabad. He joined ICICI in 1971 and worked in the areas of

project finance, leasing, resources and corporate planning. In 1988, he joined the Asian

Development Bank and spent several years in south-east Asia before returning to ICICI as its

Managing Director & CEO in 1996. He became Managing Director & CEO of ICICI Bank in

2002 following the merger of ICICI with ICICI Bank. Under his leadership, the ICICI Group

transformed itself into a diversified, technology-driven financial services group that has

leadership positions across banking, insurance and asset management in India, and an
http://www.icicibank.com/aboutus/board-of-members-pujari.htmlhttp://www.icicibank.com/aboutus/board-of-members-puri.htmlhttp://www.icicibank.com/aboutus/board-of-members-ramachandran.htmlhttp://www.icicibank.com/aboutus/board-of-members-sharma.htmlhttp://www.icicibank.com/aboutus/board-of-directors-v-sridar.htmlhttp://www.icicibank.com/aboutus/board-of-members-subrahmanyam.htmlhttp://www.icicibank.com/aboutus/board-of-members-watsa.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kochhar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kochhar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-bakhshi.htmlhttp://www.icicibank.com/aboutus/board-of-directors-bakhshi.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kannan.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kannan.htmlhttp://www.icicibank.com/aboutus/board-of-directors-ramkumar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-ramkumar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-chatterjee.htmlhttp://www.icicibank.com/aboutus/board-of-directors-chatterjee.htmlhttp://www.icicibank.com/aboutus/board-of-directors-chatterjee.htmlhttp://www.icicibank.com/aboutus/board-of-directors-chatterjee.htmlhttp://www.icicibank.com/aboutus/board-of-directors-ramkumar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-ramkumar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kannan.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kannan.htmlhttp://www.icicibank.com/aboutus/board-of-directors-bakhshi.htmlhttp://www.icicibank.com/aboutus/board-of-directors-bakhshi.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kochhar.htmlhttp://www.icicibank.com/aboutus/board-of-directors-kochhar.htmlhttp://www.icicibank.com/aboutus/board-of-members-watsa.htmlhttp://www.icicibank.com/aboutus/board-of-members-subrahmanyam.htmlhttp://www.icicibank.com/aboutus/board-of-directors-v-sridar.htmlhttp://www.icicibank.com/aboutus/board-of-members-sharma.htmlhttp://www.icicibank.com/aboutus/board-of-members-ramachandran.htmlhttp://www.icicibank.com/aboutus/board-of-members-puri.htmlhttp://www.icicibank.com/aboutus/board-of-members-pujari.html


18/85

18

international presence. He retired as Managing Director & CEO in April 2009, and took up the

position of non-executive Chairman of ICICI Bank effective May 1, 2009. He was the President

of the Confederation of Indian Industry (CII) for 2008-09. He was awarded the Padma Bhushan

by the President of India in May 2008. He was conferred the Lifetime Achievement Awards at

the Financial Express Best Bank Awards 2008 and the NDTV Profit Business Leadership

Awards 2008; was named 'Businessman of the Year' by Forbes Asia and The Economic Times'

'Business Leader of the Year' in 2007; Business Standard's "Banker of the Year" and CNBC-

TV18's "Outstanding Business Leader of the Year" in 2006; Business India's "Businessman of

the Year" in 2005; and CNBC's "Asian Business Leader of the Year" in 2001. He has been

conferred with an honorary PhD by the Banaras Hindu University. He is a member of the Board

of the Institute of International Finance, a Director on the Board of Infosys Technologies and a

member of the Board of Governors of the Indian Institute of Management, Ahmedabad.

Awards:

Retail

ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' seventh time ina row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009 and 2010.

ICICI Securities' Business Partners (Sub Broker channel) won the 'Franchisor of theYear 2011' for the third consecutive year.

Anup Bagchi, MD & CEO has been honoured with the Zee Business 'IndustryNewsmaker Award 2010' for his tremendous and unmatched contribution in the field of

Finance

Pankaj Pandey, Head- Research - ICICIdirect has won the Zee Business Best MarketAnalyst 2010 award in the Equities Fundamental Category

CMO Asia Awards for Excellence in Branding and Marketing 2010:

o Brand Leadership Award (overall)o 'Campaign of the Year' for the Trade Racer Campaigno Brand Excellence in Banking and Financial Services for the store format


19/85

19

o Award for Brand Excellence in the Internet Business

Frost and Sullivan 2009 Award for Customer Service Leadership ICICIdirect, the neighborhood financial superstore won the prestigious Franchise India

`Service Retailer of the Year 2008 award.

ICICIdirect has also won the CNBC AWAAZ 2007 Consumer Award for the MostPreferred Brand of Financial Advisory Services.

Best Broker - Web 18 Genius of the Web Awards 2007 Franchisor of the year award 2009 Retail concept of the year awards 2009

Institutional

Vikash Mantri tops The Wall Street Journal's Asia's Best Analysts survey in the mediasector for 2010

ICICI Securities is awarded as the Best Investment Bank 2008 by Global FinanceMagazine

The Corporate Finance group also was awarded a runner-up Best Merchant Banker byOutlook Money in 2007.

ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for moneyraised through IPOs/FPOs.

The equities team was adjudged the 'Best Indian Brokerage House-2003' byAsiamoney.

Technology

IDG India's CIO magazine has recognized ICICI Securities as a recipient ofCIO 100award in 2009, 2010 and 2011

ICICI Securities conferred the Gold CIO award jointly by CIOL and Dataquest at theEnterprise Awards 2010

Indian Bank's Association Business Technology Awards for Best Online TradingPlatform in 2006 and 2007


20/85

20

Special Category

Mr Charanjit Attra, Chief Financial Officer (CFO), ICICI Securities Ltd was conferredthe 'CFO100 recognising the Winning Edge in 2010' award by CFO India. He won the

award for the 'Winning Edge in Cost Management' category.

Legal

The information provided on this site is not intended for distribution to, or use by, any person or

entity in any jurisdiction or country where such distribution or use would be contrary to law or

regulation or which would subject ICICI Securities Limited ( I-Sec ) or its affiliates to any new

or additional registration requirement within such jurisdiction or country. Neither the

information, nor any opinion contained in this site constitutes a solicitation or offer by I-Sec orits affiliates to buy or sell any securities, futures, options or other financial instruments or

provide any investment advice or service.

Disclaimer of Warranty and Limitation of Liability

The information on this site is provided on "AS IS" basis. I-Sec does not warrant the accuracy of

the information given herein, either expressly or impliedly, for any particular purpose and

expressly disclaims any warranties of merchantability or suitability for any particular purpose.Although the information provided to you on this website is obtained or compiled from the

sources we believe to be accurate, I-Sec does not guarantee the accuracy, completeness or

validity of any information made available to you for any purpose. Neither I-Sec, nor any of its

affiliates, directors, officers or employees, will be liable or have any responsibility of any kind

for any loss or damage that you incur in the event of any failure or interruption of this site, or

resulting from the act or omission of any other party involved in making this site or the data

contained therein available to you, or from any other cause relating to your access to, inability to

access, or use of the site or these materials, whether or not the circumstances giving rise to such

cause may have been within the control of I-Sec or of any vendor providing software or services

support. In no event will I-Sec be liable to you for any remote, special, direct, indirect,

consequential, incidental damages or any other damages of any kind (regardless of the legal


21/85

21

theory on which the claim is based) even if I-Sec or any other party have been informed of the

possibility thereof.

Copyright or Other Notices

If you download any information or data or software from this website, you agree that you will

not copy it or remove or obscure any copyright or other notices or legends contained in any such

information.

Use of Links

Should you leave this site via a link contained herein, and view content that is not provided by I-

Sec, you shall do so at your own risk. I-Sec makes no guarantees or representations as to, andshall have no liability for, any electronic content delivered by any third party, including, the

appropriateness, subject matter, quality or timeliness of any content.

Research

The information contained in the Research Reports uploaded herein has been obtained from

various sources; we do not guarantee its authenticity or validity or completeness. Neither any

information nor any opinions expressed constitute an offer, or an invitation to make an offer, tobuy or sell any securities or any derivative instruments related to such securities. Investors

should take financial advice with respect to the suitability of investing their monies in any

securities discussed or recommended in on this website and should understand that statements

regarding future prospects may not materialize. Investors should note that each security's price or

value may rise or fall and accordingly, investors may even receive the amounts, which are less

than originally invested. Past performance is not necessarily a guide to future performance.

Please carefully read the detailed disclosures given at the end of every research report.

Contact:

Customer care

email :[email protected]
mailto:[email protected]:[email protected]


22/85

22

Compliance Officer

Tel: +91-22-2288 2460 /70

email: [email protected]

SEBI Registration details:

NSE SEBI Registration Number Capital Market :- INB 230773037 | BSE SEBI Registration

Number Capital Market :- INB 011286854

NSE SEBI Registration Number Derivatives :- INF 230773037 | NSE SEBI Registration Number

Currency Derivatives :- INE 230773037

CICI Securities empowers over 2 million Indians to seamlessly access the capital market

with ICICIdirect.com, an award winning and pioneering online broking platform. The platform

not only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual

Funds but also other services Fixed Deposits, Loans, Tax Services, New Pension Systems and

Insurance are available. ICICIdirect.com offers a convenient and easy to use platform to invest in

equity and various other financial products using its unique 3-in-1 account which integrates

customer's saving, trading and demat accounts.

Apart from convenience, ICICIdirect.com also offers access to comprehensive research

information, stock picks and mutual fund recommendations among other offerings. Tailored

services and trading strategies are available to different types of customers; long term investors,

day traders, high-volume traders and derivatives traders to name some.

ICICIdirect.com uses the most advanced commercially available 128-bit encryption technology

enabled Secure Socket Layer (SSL), to ensure that the information transmitted between the client

and ICICIdirect.com across the internet is safe and cannot be accessed by any third party.

ICICIdirect.com is the first broker in India to introduce `Digitally Signed Contract Note' to its

customers. As a result, the process of generating contract notes has been automated and the same

would be instantly available to its customers in a safe and secure manner through the website.
http://www.icicisecurities.com/AboutUs/[email protected]://www.icicisecurities.com/AboutUs/[email protected]


23/85

23

ICICI Securities has set-up neighbourhood financial stores which offer a variety of financial

products and services under one roof. It is a one-stop shop that facilitates existing and potential

customers to speak to our team and understand their financial plans and goals. ICICI Securities

has 250 stores across 66 cities in India.

Another unique concept called the ICICIdirect Money Kitchen, was launched in late 2009. An

extension of the superstore model, the money kitchen is an innovative financial store where

visitors can create their profiles to not only analyze their investment strategy by using various

financial tools but also monitor it from time-to-time.

To enable our customers to maximize their returns and plan for their future, ICICIdirect has also

started financial planning services at these stores. Customized financial plans can be created for

our customers by dedicated Relationship Managers who will understand the customer's

requirements and future goals.

Based on this information, the Relationship Manager works on creating a comprehensive and

easy-to-read financial plan. This enables ICICIdirect to move from just a transactional based

relationship to a meaningful and value-added long-term relationship with our customers.

ICICIdirect?s services and offerings evolves according to the customer's ever changing

requirements and goals.

Customers can walk-in to the financial superstores for products like ICICIdirect 3-in-1 online

trading account, equities, mutual funds, IPO, Life and General insurance, Fixed Deposits and

many other financial products. The stores also conduct periodic training sessions on markets and

demo sessions of the trading website

ICICI Securities understands the need for insightful research to make the right investment

decision. An independent equity research team provides strong and timely updates to ensure that

customer can avail of market opportunities.

The research team focuses on both large cap as well as small and mid-cap. Large cap companies

provide an overview of industry environments, while small and mid-cap companies are chosen

'bottom-up', providing a unique perspective to a generally under-researched end of the market.


24/85

24

The focus is on identifying companies, which we believe are likely to generate wealth for

investors on a sustained basis through in-depth fundamental research.

We cater to the entire gamut of investment and return horizon requirements of an investor

through our flagship offerings like Detailed Company Report, Pick of the Week, Model

Portfolio, Stock on the Move, Daily & Weekly derivatives, Intra-day calls, Daily, Weekly &

Monthly Technicals with a regular update on the performance of our calls.

The Active Trader Service is an innovative offering from ICICI Securities which is ideal for

those who are truly 'born traders'.

As a customer of the Active Trader Service, we assure you truly personalised service with a

dedicated relationship manager assigned to your account.

We have also set up a special research team who is focused on helping you achieve your targets

.The research team has developed a robust set of research products to help you make informed

investment decisions, depending on your risk profile, by analysing derivative market cues and

other news as well as market and corporate information.

Some of the research products which we offer are as follows : Positional Calls, Technical Picks,

Momentum Picks, Roll Over Monitor, Open Interest Insight, Special Situation Arbitrage, Pair

Calls.

The Equity Advisory Group (EAG) is a team of advisors dedicated to providing customers

personalised advisory services. It is aimed at maximising the customer's investment returns and

keeping him updated on the stock markets and the economy.

A Personal Equity Advisor will closely monitor the client's portfolio and keep him updated on

the latest happenings in equity market with the help of our fundamental and technical research.

EAG services are customised according to the client's risk appetite and investment horizon. A

personal equity advisor, backed by our research team, provides the customer with timely advice

on the stock market.


25/85

25

The Wealth Management Group is a team of specialists who offer specific advisory services to

meet both personal and business wealth requirements of HNIs.

The team creates customized strategies to meet Customer's investment goals of wealth

accumulation, wealth preservation and liquidity. In addition to mutual funds, fixed deposits and

other traditional products, we also offer alternate investment avenues of Private Equity,

Structured / Customized products for investors with specific views on the markets and Portfolio

Protection Strategies for large investors.

The attempt is to bring world class investment products to our customers through over 15 centres

of ICICIdirect.

ICICI Securities is the member of NSE & BSE and registered as Broker. It provides business

opportunity to entrepreneurs by registering them as Sub-Brokers / Authorised Person. ICICI

Securities provides trading terminals through which the Sub-broker can offer a range of financial

products like Equities, Derivatives, Currency Derivatives, IPO, MF, Bonds, Fixed Deposits etc.

Another way to get associated with ICICI Securities, As an Independent financial Advisor and

gain access to a wide range of financial products like MF, IPOs, Bonds, Corporate Fixed

Deposits.

One can also be associated as an Investment Advisor to sell a range of financial products like

IPO, Bonds, Fixed Deposits, etc. to their set of customers. In addition, they cal also sell asset

products like Home Loans, Education Loans, etc. to the customers.

ICICI Securities facilitates access to capital for the growth engine of the Indian economy which

is the corporate sector including large, medium and small enterprises; both from the public and

private markets.

ICICI Securities' engagements include Equity Capital Markets, Private Equity Intermediation

and Public Issuance of Debt.

A team of professionals, which is organized by sector helps clients assess their business models


26/85

26

and advises them on specific financing alternatives. The company's advice is based on the

specific circumstances and strategic considerations relevant to the client.

ICICI Securities is a SEBI registered Category I Merchant Banker

Key Recent Deals

In FY2010, ICICI Securities has helped companies raise ~ US$ 1.86 billion through QIPs and

IPOs. (Source: Prime Database).

Some of the recent transactions for FY2010 and FY 2011 include:

IPOs

Jaypee Infratech: In 2010, Book Running Lead Manager, Rs. 22.6 bn

A2Z Maintenance & Engineering Services: In 2010, Book Running Lead Manager, Rs.8.6 bn

Punjab & Sind Bank: In 2010, Book Running Lead Manager, Rs. 4.7 bn Nitesh Estates: In 2010, Book Running Lead Manager, Rs. 4.1 bn Shree Ganesh Jewellery House:: In 2010, Book Running Lead Manager, Rs. 3.7 bn Claris Life Sciences : In 2010, Book Running Lead Manager, Rs. 3 bn Parabolic Drugs: In 2010, Book Running Lead Manager, Rs. 2 bn Commercial Engineers & Body Builders Co: In 2010, Book Running Lead Manager,

Rs. 1.7 bn

Adani Power: In 2009, Book Running Lead Manager, Rs. 30.2 bn JSW Energy: In 2009, Book Running Lead Manager to the IPO of Rs. 27 bn Godrej Properties: In 2009, Book Running Lead Manager, Rs 4.7 bn

Indian Depository Receipts (IDRs)

Standard Chartered: In 2010, Syndicate Member ? first-ever issuance of an IDR, Rs.24.8 bn


27/85

27

FPOs

NTPC: In 2010, Book Running Lead Manager, Rs 84.8 bn Power Grid Corp. Of India: In 2010, Book Running Lead Manager, Rs 74.4 bn Rural Electrification Corporation: In 2010, Book Running Lead Manager, Rs 35.3 bn Shipping Corporation Of India: In 2010, Book Running Lead Manager, Rs 11.6 bn Engineers India: In 2010, Book Running Lead Manager, Rs 9.6 bn

Public Issue of Debt

Shriram Transport Finance Company: In 2010 & 2009 , Lead Manager, Rs 15 bn L &T Infrastructure Finance Company: In 2010, Lead Manager, Rs 2.6 bn

QIPs

Adani Enterprises: In 2010, Book Running Lead Manager, Rs. 40 bn GMR Infrastructure: In 2010, Lead Manager, Rs. 14 bn Lanco Infratech: In 2009, Book Running Lead Manager, Rs. 7.3 bn Alok Industries : In 2010, Book Running Lead Manager, Rs. 4.2 bn Network18 Media & Investments: In 2009, Book Running Lead Manager, Rs. 2 bn 3I Infotech: In 2010, Book Running Lead Manager, Rs. 1.8 bn Texmaco: In 2009, Sole Book Running Lead Manager, Rs. 1.7 bn Adhunik Metaliks: In 2009, Book Running Lead Manager, Rs. 1.4 bn

Rights Issues

Adani Enterprise: In 2010, Lead Manager, Rs. 14.8 bn IBN18 Broadcast: In 2010, Sole Lead Manager, Rs. 5.1 bn Television Eighteen India: In 2009, Lead Manager, Rs. 5.04 bn Infomedia18 : In 2009, Lead Manager, Rs. 1 bn Open Offer Fame India : In 2010, Sole Manager to the Offer, Rs. 1.8 bn Zenotech Laboratories : In 2010, Sole Manager to the Offer, Rs. 1.1 bn OCL Iron & Steel : In 2009, Sole Manager to the Offer, Rs. 0.56 bn


28/85

28

Delisting

Sulzer India : In 2010, Sole Manager, Rs. 0.81 bn Lotte India Corp: In 2009, Sole Manager, Rs. 0.4 bn Avery India : In 2009, Sole Manager, Rs. 0.29 bn

Landmark Transactions

Tata Motors: First Rights Issue of shares with Differential Voting Rights Tata Capital: First public issue of secured Non Convertible Debentures (NCD) Daiichi Sankyo Co: Sole Managers to the one of the largest open offers of Rs 68.2 bn Bharti Airtel: First 100% Book-Built IPO in India HP: First delisting transaction in Indian markets using the Reverse Book-building

mechanism

Punjab National Bank: Initiated the Book Building mechanism for Public Sector Banks NTPC: First FPO under alternate book building (French Auction) route Network 18 : First Rights Issue done on the basis of Partly Convertible Cumulative

Preference Shares with a three in one structure

Television Eighteen : First IPO of a News Channel

Maruti Suzuki: First Government Of India Divestment through IPO Sify: Sponsored ADR of an unlisted Indian company Man Industries (India): The first Indian offering on the Dubai Financial Exchange to

tap liquidity in the Middle East

Infoedge India (Naukri.com): First IPO of a pure-play Internet Company in India

ICICI Securities assists global institutional investors to make the right decisions through

insightful research coverage and a client focused Sales and Dealing team. A dedicated and

specialized research team ensures flow of well thought-out and well-researched stock ideas and

portfolio strategies.

The Sales and Dealing team has demonstrated strong sales and execution capabilities of


29/85

29

actionable ideas to clients which have resulted in good relationships across geographies.

ICICI Securities enjoys the first mover and market leader advantage in the derivatives segment

and offers the entire spectrum, from set-up to trading strategy.

The equity group leverages research and distribution reach to domestic and foreign institutional

investors in case of public offerings. The research team tracks over 15 key sectors of the Indian

economy and publishes in-depth research reports every year. The equity group acts as a bridge

for institutional investors and corporate clients with the markets.

ICICI Securities is the first domestic Investment Bank to organize theme based conferences in

New York, Shanghai, Singapore & Hong Kong.

ICICI Foundation for Inclusive Growth (ICICI Foundation) was founded by the ICICI Group in

early 2008 to give focus to its efforts to promote inclusive growth amongst low-income Indian

households.

We believe our fundamental challenge is to create a just society one where everyone has

equal opportunity to develop and grow. Towards this end, ICICI Foundation is committed to

making Indias economic growth more inclusive, allowing every individual to participate in and

benefit from the growth process.

We hold a set ofcore beliefs and values that defines our pathway towards inclusive growth and

guides our five strategic partnerships.

Vision

Our vision is a world free of poverty in which every individual has the freedom and power to

create and sustain a just society in which to live.
http://www.icicifoundation.org/core-beliefs.htmhttp://www.icicifoundation.org/core-beliefs.htm


30/85

30

Mission

Our mission is to create and support strong independent organizations which work towards

empowering the poor to participate in and benefit from the Indian growth process.

As a key partner in India's economic growth for more than five decades, the ICICI Group

endeavors to promote growth in all sectors of the nations economy. To give focus to its efforts

to promote inclusive growth amongst low-income Indian households, the ICICI Group founded

ICICI Foundation for Inclusive Growth in January 2008.

The foundations of ICICI Groups approach towards human and social development were

established with the Social Initiatives Group (SIG), a non-profit resource group within ICICI

Bank, in 2000.

ICICI Foundation for Inclusive Growth (ICICI Foundation) has been set up as a public charitable

trust registered at Chennai vides registration of the Trust Deed with the Sub-Registrars Office at

Chennai on January 04, 2008.

The application for registration of the Foundation under section 12AA of the Income tax Act,

1961 (the Act) was filed on February 7, 2008 and the application under section 80G of the Act

was filed on February 14, 2008. Subsequently, ICICI Foundation was registered as a PUBLIC

CHARITABLE TRUST under Section 12AA of the Act with effect from February 7, 2008.

Further, ICICI Foundation received approval under Section 80G(5)(vi) of the Act on March 19,

2008. This approval is valid in respect of donation received by ICICI Foundation from February

14, 2008 to March 31, 2009. Accordingly, ICICI Bank and Group Companies will be eligible to

get a deduction under section 80G on donations made during this period.

ICICI Foundation has also obtained its Permanent Account Number (PAN) and Tax deduction

Account Number (TAN).

Funds Flow 2008-2009


31/85

31

ICICI Foundation received Rs.617.80 million from the following sources as grants:

(January 4, 2008 to March 31, 2009) (spanning two financial years)

Source (January 4, 2008March 31, 2009) Amount (Rs. million)

ICICI Bank 500.00

ICICI Prudential Life Insurance 67.72

ICICI Lombard General Insurance 17.12

ICICI Securities 14.98

ICICI Securities PD 6.99

ICICI Home Finance 1.99

ICICI Venture 9.00

Total 617.80

ICICI Foundation also incurred total expenses of Rs.1.25 million during this period and had a

fund balance of Rs.61.55 million as on March 31, 2009.

Disbursements (January 4, 2008 to March 31, 2009)

Grant Beneficiaries (January 4, 2008March 31, 2009) Amount (Rs. million)

ICICI Foundation Programmes

ICICI Centre for Child Health and Nutrition 150.00


32/85

32

IFMR Finance Foundation 200.00

Environmentally Sustainable Finance 20.00

CSO Partners 50.00

CARE (Policy Unit) 5.00

Strategy and Advisory Group 20.00

ICICI Group Corporate Social Responsibility Programmes

Read to Lead 25.00

MITRA (ICICI Fellows Programme) 55.00

CARE (Disaster Management Unit) 5.00

Rang De 25.00

Total 555.00

Grant Beneficiaries for 2008-2009

ICICI Foundation Programmes

ICICI Centre for Child Health and Nutrition (ICCHN)

The grant of Rs.150.00 million was provided to ICCHN by way of corpus support and for

pursuing various projects consistent with its mission.
http://www.icicifoundation.org/icchn.htmhttp://www.icicifoundation.org/icchn.htm


33/85

33

IFMR Finance Foundation (IFF)

The grant of Rs.200.00 million was provided to IFMR Finance Foundation by way of corpus

support and for pursuing various projects consistent with its mission.

Environmentally Sustainable Finance (ESF)The grant of Rs.20.00 million was provided to ESF for their collaboration work with Rural

Energy Network Enterprise (RENE) on sustainable energy and environment projects benefiting

remote rural end users. The proposed projects will promote developing tools and driving

innovation to scale rural energy access for remote rural users.

CSO Partners

The grant of Rs.50.00 million was provided to CSO Partners by way of corpus support and for

pursuing various projects consistent with its mission.

CARE (Policy Unit)

A grant of Rs.5.00 million was provided to CARE, an Indian NGO that is closely affiliated with

CARE (USA), to create a policy unit in Delhi. Learning from CAREs work in India and world-

wide as well as from the work of ICICI Foundation and its partners, the unit will serve as a

platform to engage the government and policymakers in an effort to bring about required policy

changes in areas such as maternal and child health.

Strategy and Advisory Group (SAG)

Charitable foundations in India and world-wide struggle to fully develop the strategy

formulation, knowledge management and impact assessment dimensions of their work. A grant

of Rs.20.00 million was provided to Strategy and Advisory Group (SAG), a team at Centre for

Development Finance that provides strategic advisory services to clients in the development

sector, to develop these functions and to offer their expertise to foundations in general, including

ICICI Foundation.

ICICI Group Corporate Social Responsibility Programmes

Read to lead is an initiative of ICICI Bank to facilitate elementary education for disadvantaged

children in the age group of 6-13 years. An amount of Rs.25.00 million has thus far been
http://www.icicifoundation.org/ifmr-foundation.htmhttp://www.icicifoundation.org/esf.htmhttp://www.icicifoundation.org/cso-partners.htmhttp://www.ifmr-cdf.in/pg/groups/1223/Strategy-Advisory-Group&type=Program%20area&int=1223http://www.ifmr-cdf.in/pg/groups/1223/Strategy-Advisory-Group&type=Program%20area&int=1223http://www.icicifoundation.org/cso-partners.htmhttp://www.icicifoundation.org/esf.htmhttp://www.icicifoundation.org/ifmr-foundation.htm


34/85

34

disbursed to 100,000 children through 30 NGOs. The balance amount of Rs.75.00 million is

planned to be disbursed during the period 2009-2010.

MITRA (ICICI Fellows Programme)

MITRA is an affiliate of CSO Partners that is focused on addressing the challenge of humanresources for civil society organisations (CSOs). In partnership with CSO Partners and MITRA,

ICICI Foundation proposes to launch an ICICI Fellows Programme. An amount of Rs.55.00

million has been disbursed to MITRA for developing and launching the programme over the

period 2009-2010.

CARE (Disaster Management Unit)

A grant of Rs.5.00 million has been given to CARE in India to enable it to prepare for any future

disasters that may strike and respond immediately with the required relief efforts.

Rang De (Micro Enterprise Development)

Rang De, an affiliate of CSO Partners, has partnered with ICICI Venture to roll out funds for

micro enterprise development in rural and semi-urban locations. The amount of Rs.25.00 million

that has been disbursed to them will support micro enterprises to the extent of Rs.15.00 million

and the balance amount of Rs.10.00 million will go towards meeting their expenses to build the

platform.
http://www.icicifoundation.org/icici-prudential-life.htmhttp://www.icicifoundation.org/icici-group-companies.htmhttp://www.icicifoundation.org/icici-venture.htmhttp://www.icicifoundation.org/icici-venture.htmhttp://www.icicifoundation.org/icici-group-companies.htmhttp://www.icicifoundation.org/icici-prudential-life.htm


35/85

35

CHAPTER-III

LITERATURE REVIEW


36/85

36

Harry S. Truman said Actions are the seed of fate deeds grow into destiny , similarly the

tasks performed by an employee gets billed as a salary which an organization pay through the

payroll system. This is processed every month towards the last week to disburse the salaries. The

process includes managing large number of data generated through the attendance and other

inclusions. This process entails payouts post the standard deductions and reimbursements.

This system includes certain common functionality which includes the areas as discussed below :

New employee inclusion: When a new employee joins an organization Inputs includingsalary details, reimbursements, statutory deductions, benefit enrollment and many such

information are filled in the ERP System from which the payroll data are collected. This

information is provided gets stored in the ERP system which is connected to the

company database.

Tax declaration form: The tax gets deduced as per the government guidelines. Hence,an internal tax declaration form is filled and provided by the employee supported with the

documents to suffice for tax rebates. These include rent agreement, to claim the HRA ,

investment in Saving Schemes offering tax saving, Home loans etc. Different accounting

cycles may have its own time to consider this. Such as, in certain organization, the tax

declaration is taken in the beginning of the employment and rebates are offered. At theend of the accounting year the supporting documents such as Medical bills would be

required to validate the information provided by the employee at the beginning of the

financial year. If those documents are not provided by the employee , yearly tax

deduction would be made.

Attendance dataThis datum is collected from the attendance system. If, there are anygap in the data, it requires to be cross checked with the reporting leaders, to avoid errors.

Late comings and early leaving are two areas which are calculated. These deductions are

to be made as a part of penalty. Prolonged vacation and sabbaticals are verified as the

employee may have left the organization. Off site deputation may have a separate process

for calculating the attendance. Here the report might be drawn from the clients feedback

and system of data collection from the clients site. Maternity or any other medical leaves


37/85

37

are calculated as reported on pro rated basis. Incase they were approved by the leader, the

leave balance would be allocated avoiding any deduction in the salary . Incase the leave

balances have refurbished, the deduction in the salary may be reconsidered on the

approval of the leader.

Reimbursement for late working: Certain business situation may entail high workvolume or even a high priority task to be delivered at a short notice. These situations may

require employees to work beyond their normal working hours. Legal standards direct on

how the extra hours should be designed. Hence, any additional pay to be made along with

any reimbursement for working late and providing additional support requires to be

included in the payroll sheet.

Other Reimbursements- These are paid on submission of bills with the approval of thereporting manager or the decision making authority. It includes maintenance areas such

as Car, mobile phone, etc. The eligibility to such a reimbursement is defined in the

policy. The calculation remains to the grid as defined in the policy. Such as a manager

may be eligible for a petrol reimburse of Rs. 5000 a month where as a Senior Manager or

a Assistance Vice-President may be eligible for Rs.11000 or more. The total amount

would be paid if the supporting bills are provided to the accounts team processing

payroll. If it is not provided, there might be a tax deduction on them.

Other Benefit paymentEvery role would include certain benefits such as car ,accommodation, fees for first two children depending on the grade and level. Every

employee may not have this privilege. It is offered at a senior level which would require

the employee to submit the bills to be reimbursed as tax free amount. The scope of error

lies in miscalculations of data from the bills and excess taxing . Any submission of bills

make the amount non-taxable to the employee. Yet it may get taxed by error.

Shift allowances - This is offered to the employees who have been working in differentshifts other than the normal working hours. The working hour policy defines the time

line and eligibility to such payouts. The confirmation to this payout comes from the


38/85

38

reporting managers. The scope for errors lies in receiving and providing the data

accurately in the payroll sheet.

Pay for performanceThis is performance incentives are disbursed for the achievingthe targets as agreed in the scorecard. The pay on performance grades are announced .

The reporting managers provide this input to the payroll generating team.

Insurance intimation for new employeesOrganization offer different insuranceincluding mediclaim and accident insurance. These requires to be started when a new

employee joins the company. These programs are reinstated every financial year for the

employees in the payroll of the company. The monthly payroll includes this datum as it is

a payout that may not reflect in the salary slip. Yet few companies allow the employees

to avail extra coverage on a payment made by the employee over and above what is made

by the employer. On such an event , the deduction is made from the salary every month

for that employee.

Stop paymentOrganization have a policy to initiate a stop payment for the employeewho resigns and would be leaving the company. As defined in the exit policy , the notice

period starts from the day an employee resigns. It may be for a month or more than that

upto three months. The stop payment is initiated on the last month , where the employeewould not receive the salary at the end of the month but with the full and final settlement.

Ideally this helps to calculate the clearance as there might be dues to be cleared by the

employee . The stop payment initiation is made by the HR team , where an email

including a request to stop the payment of the employee is send to the accounts

department who would process payroll. Generally HR Team initiates this when the

reporting manager of an employee mails the resignation acceptance by the employee.

Full and final settlement : When an employee leaves an organization, the process ofclearance includes calculating all the number of holidays that are not availed . These

required to be reimbursed calculating it from the basic salary for those days. The salaries

of the months that were freezed as a result of resignation, any bonus to be paid and every

other payment to be made at the time of separation.


39/85

39

Deductions: Statutory requirements share a guideline on how the deduction should bemade from the salary. The Any deduction due to a loan or loss of pay

The complexity of this process increase with the volume it manages and processes it follows.

The scope of error lies in miscalculation, duplication, missing the due dates resulting in incorrect

disbursement.

If this process is outsourced to vendors, its important to check if the vendor would have the

bandwidth to align with the changing organizational structures or business model. If there are

series of mergers and acquisitions are planned by the organization , the vendor should be able to

accommodate it.

Few of the performance Indicators to the payroll process have been shared below:

How timely has it been process -The payment needs to be rolled out timely every monthwithout any non-adherence to the service level agreement. The salaries have an indelible

effect on the employees. Any delay would affect the morale. Hence , organizations follow

stringent rules to ensure the payment is made on time.

How accurately the data was providedThe data provided to the payroll sheet afterthe assimilation and final calculation remains the final input for the payouts. Incase these

inputs are made inaccurately, it causes a massive impact in the salary disbursed. Any

inaccurate salary disbursement is taken as non-adherence to the policy . The inaccuracy

may range from incorrect data for employee ids to reimbursement. The corrections can be

made during the next months payroll but requires a lot of validation creating

unnecessary hassles and bottlenecks.

How many re-runs in between the process - The re-runs for the payroll systemincreases the cost to run it. This impacts the business spending hence lowers the ROI on

this system.

Time within which the data need to be provided- If the data required to run the payrollgets delayed , it creates a bottleneck for the final calculation. This is often mitigated by


40/85


41/85

41

In a company,payroll is the sum of all financial records ofsalaries for an employee, wages,

bonuses and deductions. In accounting, payroll refers to the amount paid to employees for

services they provided during a certain period of time. Payroll plays a major role in a company

for several reasons. From an accounting point of view, payroll is crucial because payroll and

payroll taxes considerably affect the net income of most companies and they are subject to laws

and regulations (e.g. in the U.S. payroll is subject to federal and state regulations). From ethics in

business viewpoint payroll is a critical department as employees are responsive to payroll errors

and irregularities: good employee morale requires payroll to be paid timely and accurately. The

primary mission of the payroll department is to ensure that all employees are paid accurately and

timely with the correct withholdings and deductions, and to ensure the withholdings and

deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and

deductions from a paycheck.

Pay Check

A Pay Check 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 "pay cheque" does exist in some languages, like German

(Gehaltsscheck), partially due to the influence of popular media, but this commonly refers to a

payslip or stub rather than an actual cheque. Some company payrolls have eliminated both the

paper cheque and stub, in which case an electronic image of the stub is available on an Internet

website.

Payroll taxes

Government agencies at various levels require employers to withhold income taxes from

employees' wages.
http://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/w/index.php?title=Salaries_for_an_employee&action=edit&redlink=1http://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Tax_deductionhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Employment#Employerhttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Direct_deposithttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Figurative_languagehttp://en.wikipedia.org/wiki/German_languagehttp://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/Income_taxhttp://en.wikipedia.org/wiki/German_languagehttp://en.wikipedia.org/wiki/Figurative_languagehttp://en.wikipedia.org/wiki/Decadehttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Direct_deposithttp://en.wikipedia.org/wiki/Employment#Employeehttp://en.wikipedia.org/wiki/Incomehttp://en.wikipedia.org/wiki/Employment#Employerhttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Tax_deductionhttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/w/index.php?title=Salaries_for_an_employee&action=edit&redlink=1http://en.wikipedia.org/wiki/Financialhttp://en.wikipedia.org/wiki/Company


42/85

42

In the United States, "payroll taxes" are separate from income taxes, although they are levied on

employers in proportion to salary; the programs they fund include Social Security, and Medicare.

U.S. income and payroll taxes collected through deductions are considered to be trust fund taxes,

because the employer holds the deducted money in trust for later remittance.

Payroll Taxes in U.S.

Before considering the payroll taxes we need to talk about the Basic Formula for the Net Pay.

Basically from gross pay is subtracted one or more deductions to arrive at the Net Pay. In fact

Employee's gross pay (pay rate times number of hours worked, including any over time) minus

payroll tax deductions, minus voluntary payroll deductions, is equal to Net Pay. As you can see

payroll tax deductions play a critical role and just because they are provided by law we can call

them Statutory payroll tax deductions.

The employer must withhold payroll taxes from an employee's check and hand them over to

several tax agencies by law. Payroll taxes include:

1. Federal income tax withholding, based on withholding tables in "Publication 15,Employer's Tax Guide" by Internal Revenue Service - IRS;

2. Social Security tax withholding. The employee pays 6.2 percent of the salary or wage, upto 106,800. The employer also pays 6.2 percent in Social Security taxes. If you are self-

employed, you pay the combined employee and employer amount of 12.4 percent in

Social Security taxes on your net earnings;

3. Medicare tax. The employee pays 1.45 percent in Medicare taxes on the entire salary orwage. The employer also pays 1.45 percent in Medicare taxes. If you are self-employed,

you pay the combined employee and employer amount of 2.9 percent in Medicare taxes

on your net earnings;

4. State income tax withholding;5. various local tax withholding, such as city taxes, county taxes, school taxes, state

disability, and unemployment insurance.

As for the sources considered as references we can mention the following publications:
http://en.wikipedia.org/wiki/Social_Security_%28United_States%29http://en.wikipedia.org/wiki/Medicare_%28United_States%29http://en.wikipedia.org/wiki/Trust_fundhttp://en.wikipedia.org/wiki/Trust_fundhttp://en.wikipedia.org/wiki/Medicare_%28United_States%29http://en.wikipedia.org/wiki/Social_Security_%28United_States%29


43/85

43

Publication 15, (Circular E), Employer's Tax Guide. This publication explains employer'stax responsibilities. It explains the requirements for withholding, depositing, reporting,

paying, and correcting employment taxes. It explains the forms any employer must give

to its employees, those employees must give to the employer, and those employer must

send to the IRS and SSA (Social Security Administration). This guide also has tax tables

needed to figure the taxes to withhold from each employee;

Publication 15-A, Employers Supplemental Tax Guide. This publication supplementsPublication 15 (Circular E), Employers Tax Guide. It contains specialized and detailed

employment tax information supplementing the basic information provided in Publication

15 (Circular E);

Publication 15-B. Employer's Tax Guide to Fringe Benefits. This publicationsupplements Publication 15 (Circular E), Employers Tax Guide, and Publication 15-A,

Employers Supplemental Tax Guide. This publication contains information about the

employment tax treatment of various types of noncash compensation.

In the earlier part we have considered payroll taxes related to employee's side. Now it's the

moment to talk about the Employer Payroll Taxes Employers are responsible for paying their

portion of payroll taxes. These payroll taxes are an expense over and above the expense of an

employee's gross pay. The employer-portion of payroll taxes include the following:

1. Social Security taxes (6.2% up to the annual maximum);2. Medicare taxes (1.45% of wages);3. Federal unemployment taxes (FUTA);4. State unemployment taxes (SUTA).

Very often you can hear people using FICA in their terminology. FICA stands for the Federal

Insurance Contributions Act and the FICA tax consists of both Social Security and Medicare

taxes. As we explained earlier both parties pay half of these taxes. Employees pay half, and

employers pay the other half. Social Security and Medicare taxes are paid both by the employees

and the employers. In summary together both halves of the FICA taxes add up to 15.3 percent.


44/85

44

Any employer is responsible for paying the employer's share of payroll taxes, for depositing tax

withheld from the employees' paychecks, preparing various reconciliation reports, accounting for

the payroll expense through their financial reporting, and filing payroll tax returns. As you see

this suite of employer payroll tax responsibilities is far above issuing paychecks to employees.

Pay slip

A pay stub, paystub, 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. Pay slips are labor analogs ofremittance

advice letters (which are used for invoices)they state "you have been paid X amount

(paycheck) for Y services (hours worked)".

Most of the provinces and territories in Canada allow employers to issue electronic payslips, if

the employees have confidential access to it and are able to take a print out.
http://en.wikipedia.org/wiki/Withholding_taxhttp://en.wikipedia.org/wiki/Itemized_deductionhttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Garnishmenthttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/File:John_Lewis_Payslip.pnghttp://en.wikipedia.org/wiki/Invoicehttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Remittance_advicehttp://en.wikipedia.org/wiki/Garnishmenthttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Itemized_deductionhttp://en.wikipedia.org/wiki/Withholding_tax


45/85

45

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 cashier, 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 cardswill 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.

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), bi-monthly (once every two months), quarterly (once every 13 weeks), semi-

annually (twice per year), and annually.
http://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/Payday_loanhttp://en.wikipedia.org/wiki/Payday_loanhttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/Debit_card


46/85

46

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.[5]

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 theNS&Iwhen aPremium Bondis chosen.

Payroll Outsourcing

Businesses may decide to outsource their payroll functions to an outsourcing service like a

Payroll service 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 a payroll. In many countries, business payrolls are complicated inthat 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 difficult to manage especially for new or small business owners.

In the UK, payroll bureaus will deal with all HM Revenue & Customs inquiries and deal with

employee's queries. Payroll bureaus also produce reports for the businesses' account department

and payslips 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, Pay as you earn(PAYE) and National

Insurance bands as well as statutory payments and deductions having to go through the payroll

often mean there is a lot to keep abreast of in order to maintain compliance with the current

legislation.
http://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Payroll#cite_note-4http://en.wikipedia.org/wiki/Payroll#cite_note-4http://en.wikipedia.org/wiki/Payroll#cite_note-4http://en.wikipedia.org/wiki/Collection_itemhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/National_Savings_and_Investmentshttp://en.wikipedia.org/wiki/National_Savings_and_Investmentshttp://en.wikipedia.org/wiki/National_Savings_and_Investmentshttp://en.wikipedia.org/wiki/Premium_Bondhttp://en.wikipedia.org/wiki/Premium_Bondhttp://en.wikipedia.org/wiki/Premium_Bondhttp://en.wikipedia.org/wiki/Payroll_service_bureauhttp://en.wikipedia.org/wiki/Payroll_taxhttp://en.wikipedia.org/wiki/Tip_%28gratuity%29http://en.wikipedia.org/wiki/PAYEhttp://en.wikipedia.org/wiki/National_Insurancehttp://en.wikipedia.org/wiki/National_Insurancehttp://en.wikipedia.org/wiki/National_Insurancehttp://en.wikipedia.org/wiki/National_Insurancehttp://en.wikipedia.org/wiki/PAYEhttp://en.wikipedia.org/wiki/Tip_%28gratuity%29http://en.wikipedia.org/wiki/Payroll_taxhttp://en.wikipedia.org/wiki/Payroll_service_bureauhttp://en.wikipedia.org/wiki/Premium_Bondhttp://en.wikipedia.org/wiki/National_Savings_and_Investmentshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Collection_itemhttp://en.wikipedia.org/wiki/Payroll#cite_note-4http://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Cheque


47/85

47

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. In the US they are known as Professional Employee

Organizations or PEO's. They charge the cost of the employee payroll and add a surchage for

their services.

Monthly Assignments

Payroll

Preparation of salary sheet for the company for Staff (salary sheet shall be prepared asper the cost centers and locations provided by the company).

Preparation of monthly pay slips and delivery in separate envelops for each employee.(Internal distribution of the envelops shall be the responsibility of the Company.

While preparing the monthly salary consider - TDS on salary, PF and loan installments.
http://en.wikipedia.org/wiki/Business_practicehttp://en.wikipedia.org/wiki/Business_practice


48/85

48

Preparation of the Bank Transfer advice and monthly accounting and reconciliation of thebank account from where salary shall be disbursed.

Preparation of challan of monthly TDS amount. The deposit & collection of the TDSchallan from the bank will be the responsibility of the Company.

Provide monthly-consolidated amounts of salary in appropriate accounts heads foraccounting.

Provident Fund

Preparation of the statement of Provident Fund dues. Transfer of provident fund money to the RPFC. Assistance to the Company, during inspection by the PF authorities. Preparation of challan of monthly PF amount and filing of monthly returns.


49/85

49

Reimbursements

Verification of claims as per the guidelines issued by the company and checkingtaxability as per the income.

Statement of monthly reimbursements as per the instruction given by the management. Maintenance of records of such reimbursements for each employee and entitlement

thereof.

Payment of reimbursements on monthly basis.

Annual Assignments

Computation of estimated Taxable income based on the information provided by thecompany and update before year-end for final deduction of tax.

Preparation of TDS certificates for employees on annual basis as required under IncomeTax Rules.

Preparation of TDS returns and filing the same with Tax department. Computation of annual bonus as per the instructions given by the management.


50/85

50

Prepare and provide information of salary for Directors report as required u/s 217 of thecompanies Act 1956

Provident Fundpreparation and filing of annual return in form 3A and 6A.

TIBS focuses on providing payroll services in a manner that enhances the efficiency of thepayroll process (by way of quality and timeliness of output) in our client organizations.

As a payroll service provider TIBS offers end-to-end services including the following.

Salary structuring Payroll processing, including handling statutory calculations Statutory remittances (Income tax, PF, ESI etc.) Statutory form filings (Income tax, PF, ESI etc.) MIS reporting Payment advice creation and salary disbursal Conducting tax camps to educate employees on provisions available for tax rebates Tax declaration verification Payroll claims processing including bills verification


51/85

51

Bank reconciliation is the process matching and comparing figures fr

Documents

pAY ROLL Icici 2011