Viru proj

“A study on employee’s wages and compensation” in Kissan Mouldings Ltd., in Tumkur
CHAPTER 1
INTRODUCTION
Human resource is the most vital resource of an organization as it handles all the physical
resources therein and takes the responsibility of decision making, work done and
achievement of results etc. So, to carry on these heavy responsibilities, employees should
be motivated by providing the best remuneration and compensation package as per the
industry standards. Lucrative compensation is a means of attracting and retaining the best
talents in an organization.
A wage is the remuneration paid for the service of labour in periodically to an employee
or worker. So payment made to labour is generally referred to as wages. Wages also refer
to the hourly rate paid to such groups as production and maintenance. Salary normally
refers to the periodically rates paid to clerical, Administrative and professional
employees. So money paid periodically to person whose output cannot be measured is
generally referred as salary.
Wage and salary are paid as per contract of employment. Wages include basic wage or
salary allowances. Allowances are paid in addition to basic wage to maintain the value of
basic wage over a period of time. In India, different acts include different item under
wages. Though all the lets includes basic wages and dearness allowance under the item
wages example under the Workmen’s Compensation Act, 1923, Section 2(m) wages for
leave period, holiday, overtime pay, bonus form part of wages and under the payment of
wages act, 1936 section 2(vi) any reward of settlement and production bonus, if paid
constitutes wages.
Wage and salary administration is establishment and implementation of sound policies
and practices of employee compensations. Wage polices of different organizations very

somewhat. Some organizations pay minimum necessary to attract the required number
and kind of labor, while some organizations pay well above the going rates in the labor
market. Various factors influence wage and salary structure and administration like
government legislation and public policy, organization ability to pay, labor supply and
demand, going wages and salaries, cost of living, productivity, trade union’s bargaining
power, job requirement, management attitude about wage to be paid etc.
Compensation is an integrality of human resource management. It is the remuneration
received by an employee in return to his or her contribution for the organization. A good
compensation system evolves a balanced work-employee relationship by providing
monetary and non-monetary benefits to the employees. In this way, it acts as a motivating
factor to the employees and increases the organizational effectiveness.
Today’s compensation systems have evolved over a long time. Worker’s needs and
compensation systems have been changing along with the changes in organizational
structures. This results in a participative organization from the bureaucratic one, where
the employees have started asking for their rights and appropriate compensations. Higher
education standards and higher the skills required for the jobs, have forced the
organizations to provide the competitive compensations to their employees.
Compensation strategy is derived from the business strategy and hence the human
resource strategies are aligned with the business goals and objectives of an organization.
Then the compensation committee or the concerned authority formulates the
compensation strategy considering both the internal and external factors as well as the
life cycle of an organization.

Concept of Wages
‘Wage and Salary Administration’ refers to the establishment and implementation of
sound policies and practices of employee compensation. The basic purpose of wage and
salary administration is to establish and maintain an equitable wage and salary structure.
Wages and salaries are often one of the largest components of cost of production and
such have serious implications for growth and profitability of the company. On the other
hand, they are the only source of workers’ income.
After the independence and particularly after 1948, some new terms relating to wages
began to be used.
These are: -
1. Statutory Minimum Wages
2. Basic Minimum Wages
3. Minimum Wages
4. Fair Wages
5. Living Wages
6. Need Based Wages
1. Statutory Minimum Wages
By it we mean the minimum amount of wages which should essentially be given to the
workers as per provisions of the Minimum Wages Act, 1948.
2. Basic Minimum Wages
This minimum wage is fixed through judicial pronouncement, awards, industrial tribunals
and labor. The employers are essentially to give this minimum wage to the workers.

3. Minimum Wages
The concept of minimum wages has developed due to different standards in different
countries. In Indian context, minimum wage means the minimum amount which an
employer thinks necessary for the sustenance of life and preservation of the efficiency of
the worker. According to Fair Wage Committee, the minimum wages must also provide
for some measures of education-medical requirements and amenities.
4. Fair Wages
In order to bring about improved relations between labor and management an effort has
been made in modern times that the labor gets a fair deal at the hands of owners and
managers of industries. Various proposals were undertaken at the Industries Conference
in 1947 and a resolution known as the Industrial Truce Resolution was passed. It is
provided for the payment of fair wages to labor. The government of India appointed a
Fair Wages Committee in 1948 to determine the principles on which fair wages should be
based and to suggest the lines on which those principles should be applied. According to
the report on this Committee, Fair Wages is that wages which the labourer gets for his
work just near to minimum wages and living wages. Generally, the current rates of wages
being paid in the enterprise are known as fair wages.
5. Living Wages
According to Fair Wage Committee Report, “The living wage should enable the male
earner to provide for himself and his family not merely the bare essentials of food,
clothing and shelter, but also a measure of frugal comfort including education for
children, protection against ill health, requirements of essential social needs and a
measure of insurance against the more important misfortunes including old age.”
According to the Committee on Fair Wages, the living wages represent the highest level
of the wages and include all amenities which a citizen living in a modern civilized society
is to expect when the economy of the country is sufficiently advanced and the employer

is able to meet the expanding aspirations of his workers. The Living Wage should be
fixed keeping in view the National Income and the capacity of the industry to pay.
6. NeedBasedWages
The Indian Labor Conference at its 15th
session held at New Delhi in July 1957 suggested
that minimum wage fixation should be need based.
Following are the important points of the Resolution of the Conference: -
a) The standard working class family should include three consumption units for the
one earner.
b) Calculation of minimum food requirements should be made on the basis of the
recommendation of Dr. Aykoroyed i.e. 27000 calories for an average Indian adult.
c) Calculation of cloth should be made @ 18 yards annually for one member. As
such, a family consisting of four members will require 72 yards of cloth.
d) The workers should get minimum rent as per guidelines fixed by the government
in the industrial housing policy.
e) Expenses for fuel, light and so on should be equal to 20% of the entire minimum
wages.
Theories of Wages
1. Subsistence Theory
This theory was propounded by David Richardo. Richardo states that “The laborers are
paid to enable them to subsist and perpetuate the race without increase or diminution.”
This theory is also known as “Iron Law of Wages”. According to this theory, if the wages
fall below the subsistence level, the number of workers would decrease as many of them
would die of hunger, disease, malnutrition etc. This would make the wage rates go up as
labor will become scarce. However, if the workers are paid more than the subsistence

wages, they would marry and procreate. This would increase their number and bring
down the rate of wages.
2. Wage Fund Theory
This was propounded by Adam Smith. He assumed that wealthy persons have funds of
surplus wealth, as a result of their savings wages are paid out of these funds. This fund
could be utilized for employing laborers for work. If the fund was large, wages would be
high if it was small, wages would be low, just enough for the subsistence. Thus, the size
of the fund determined the demand for labor and the wages that could be paid.
3. Residual Claimant Theory
This theory was propounded by Francis. A. Walker. According to Walker, there are four
factors of production namely land, labor, capital and organization. Wages represent the
amount of value created in the production which remains after payment of the other three
factors of production namely land, capital and organization.
4. Surplus Value Theory of Money
This theory was propounded by Karl Marx. According to Marx, labor was to be treated as
an article of commerce, which could be purchased on payment of subsistence price. The
price of any product was determined by the labor time needed for producing it. The
laborers were not paid in proportion to the time spent on job, but much less. The surplus,
thus created, was utilized for paying other expenses.
5. Marginal Productivity Theory
This theory was propounded by Wick Steed and Clark. According to this theory wages
depend upon the demand for and supply of labor. Wages are based upon the
entrepreneur’s estimate of the value that will probably be produced by the last or
marginal worker. Workers are paid only what they are economically worth. As long as

additional worker contributes more to the total value than the cost in wages, it pays the
employer to continue hiring. The result is that the employer has a larger share in profits
as he doesn’t have to pay to non-marginal workers.
6. Bargaining Theory of Wages
This theory was propounded by John Davidson. According to him, wages are determined
by the relative bargaining power of workers or trade unions and of employers. When a
trade union is involved, monetary benefits, incentives, job differentials etc. tend to be
determined by the relative strength of the organization and the trade union.
Wage Determination Process
Wage determination is a complex process.
However, wage determination process consists of the following steps; -
1. Job Analysis
Job analysis describes the duties, responsibilities, working conditions and inter-
relationships between the job as it is and the other jobs with which it is associated. It
attempts to record and analyze details concerning the training, skills, required efforts,
qualifications, abilities, experience and responsibilities expected of an employee. After
determining the job specifications, the actual process of grading, rating or evaluating the
job occurs. A job is rated in order to determine its value relative to all the other jobs in
the organization which are subject to evaluation. The next step is that of providing the job
with a price. This involves converting the relative job values into specific monetary
values or translating the job classes into rate ranges.
2. Wage Survey
In determining the wages for a specific job it is very necessary to work as to what wages
are being given for the same job in other enterprises. If, on the basis of utility, the wages
for a specific job are determined below the wages for the same job on other enterprises.

Following will be its disadvantages : -
1. Good persons and persons of merit will not be available.
2. If such people are at all obtained for employment, they will shift to another
enterprise after some time.
It is, therefore, necessary to keep in mind the following in wage-survey: -
i) Term of survey (weekly or monthly)
ii) The whole wage-payment-knowledge of daily working hours or monthly
payment.
iii) Definition of jobs.
iv) Appropriate questionnaire for collecting information.
v) Scientific technique of collecting the data.
3. Group Similar Jobs into Pay Grades
After the results of job analysis and salary surveys have been received, the committee can
turn to the task of assigning pay rates to each job, but it will usually want to first group
jobs into pay grades. A pay grade is comprises the jobs of approximately equal difficulty
or importance as determined by job evaluation. Pay grading is essential for pay purposes
because instead of having to deal with hundreds of pay rates, the committee might only
have to focus on a few.
4. Price Each Pay Grade
The next step is to assign pay rates to pay grades. Assigning pay rates to each pay grade
is usually accomplished with a wage curve. The wage curve depicts graphically the pay
rates currently being paid for jobs in each pay grade, relative to the points or ranking
assigned to each job or grade by the job evaluation.
The purpose of wage curve is to show the relationship between: -
(i) The value of the job as determined by one of the job evaluation methods and
(ii) The current average pay rates for the grades.

5. Fine-Tune Pay Rates
Fine tuning involves correcting out of line rates and developing rate ranges: -
(i) Correcting out of Line Rates
The average current pay for a job may be too high or too low, relative to other jobs in the
firm. If a rate falls well below the line, a pay rise for that job may be required. If the rate
falls well above the wage line, pay cuts or a pay freeze may be required.
(ii) Developing Rate Ranges
Most employers do not pay just one rate for all jobs in a particular pay grade. Instead,
they develop rate ranges for each grade so that there might be different levels and
corresponding pay rates within each pay grade. The rate is usually built around the wage
line or curve. One alternative is to arbitrarily decide on a maximum and minimum rate for
each grade. As an alternative, some employers allow the rate for each grade to become
wider for the higher pay ranges reflecting the greater demands and performance
variability inherent in these more complex jobs.
6. Wage Administration Rules
The development of rules of wage administration has to be done in the next step. It is
considered advisable in the interests of the concern and the employees that the
information about average salaries and ranges in the salaries of group should be made
known to the employees concerned; for secrecy in this matter may create dissatisfaction
and it may also vitiate the potential motivating effects of disclosure. Finally, the
employee is appraised and the wage is fixed for the grade he is found fit.

Wage Payment Procedure
Normally wages are always to be paid in cash. However there may be a system of paying
a worker in kind as well as in cash. Moreover as per the Act of wage payment, the salary
of a person has to be paid either daily, weekly, fortnightly or monthly. Besides there
should be proper records of payment of wages and no deduction except what is
permissible is to be allowed against payment of wages.
Types of Wages
Determination of reasonable wages is a difficult task for the management and so they
should give adequate attention to this area.
However, different types of wage payment can be divided into three parts: -
1. Time Wage
2. Piece Wage
3. Wage Incentive Plan
1. Time Wage
In this type the worker is given remuneration according to time. This type of
remuneration may be per hour, per day or per month or per year. There exists no
relationship between the quantum of work and the wage. This type is in operation in all
industries in India. This plan is very simple to understand. The worker works after due
thinking and with convenience. However it encourages the tendency of prolonging or
delaying the work unnecessarily. Moreover, it is very difficult to measure the
productivity of the workers under this type of plan.
2. Piece Rate System
In this type of plan, a worker gets remuneration according to his output irrespective of the
time he takes in finishing his job. Here, the payment of remuneration is related to work
and not to time. Under this type, the workers are encouraged to earn more and more. The

more the output is, the more the remuneration is. The workers are also at liberty for their
job with interest and they need not be supervised. However, this type of wage payment is
not suitable for commodities of artistic taste. Moreover, the quality of goods goes down.
3. Wage Incentive Plan
This type of wage payment is the combination of two types the above referred. Efforts
have been made here to obtain the advantages of both these types while avoiding their
disadvantages.
This includes: -
a) Halsey Premium Scheme
Under this scheme if a worker gives an output more than the fixed standard job, he is
given about 33% to 50% of the remuneration for that job as bonus. Here a standard of
output is fixed and a standard of time is also fixed for the completion of that job
beforehand. If the job of fixed standard is completed with the standard time fixed for the
purpose, the worker gets his fixed wages. But, if he completes the job before the fixed
standard time and thereby, saves some time, he gets a fixed percentage of his wages for
the time so saved as bonus.
b) Rowan Premium Scheme
This plan is an improvement upon Halsey Plan. Under this plan, premium is that
proportion of the wages for the time taken which the time saved bears to the standard
time. The credit of this incentive premium method goes to Rowan of Scotland. The
worker is paid wages at normal rates for the duration he has worked and is paid extra
money in the form of premium on the basis of the time he has saved. Under this scheme,
the standard work and the standard time both are fixed. The wages for the time saved will
increase in the same percentage that is equal to the proportion the time saved bears to

standard time. The premium for the time saved cannot be more than the total standard
wages. Thus, a worker cannot get cleverly wages more than needed.
c) Taylor’s Plan
Taylor plan is based on wages per unit. In other words, a worker is paid wages in
accordance with his output. Higher price rate is fixed for the workers who give
production over and above the standard workload fixed. The lower rate is fixed for the
workers who give production below the standard workload fixed.
d) Merrick Plan
This plan is somewhat a modified form of Taylor’s plan. This plan offers three grade
piece rates than the two offered in the Taylor’s plan.
I. First limit is for new workers and is very low.
II. Second limit is for workers with average efficiency.
III. Third limit is for very efficient workers.
e) Gantt Plan
This is also a modified form of Taylor plan. In it, wages are fixed on the basis of time. On
the other hand, the efficient workers are given wages per unit. Thus, the workers who
give more output get their wages at enhanced rates.
f) Emerson Plan
This plan is a combination of Taylor, Merrick and Gantt plans. However, a slight
modification in these plans has been made and different rates of bonus have been fixed
under this plan. The amount of bonus increases with the increase in efficiency.
These percentages are as under: -
1% bonus on 67.5 efficiency.
10% bonus on 90% efficiency.

20% bonus on 100% efficiency.
20% + 30% extra on bonus on efficiency more than 100%.
g) Profit-Sharing Scheme
Under this scheme, workers are given a certain percentage of profits as bonus. But it
suffers from one defect. Suppose, there is no profit in a particular year. Workers will also
not be given the bonus for that very year. The workers think that they have been deceived
by the employers and therefore, clash with them on this very issue. This assumes the
form of worker-management unrest and has its bad effect on the production. This scheme
is undoubtedly a new and better scheme. But, the trade unions misuse the scheme.
h) Scalan Plan
Under this scheme, the workers are paid bonus equal to the percentage of profits earned
more than the profits earned last year by the organization. 15% of the bonus is deducted
and this deduction is deposited in the fund which is distributed among the workers in the
year to come.
Wage Differentials
Wage differentials mean differences or disparities in wages. Wages differ in different
employments or occupations, industries and localities and also between persons in the
same employment or grade. One therefore comes across such terms as occupational wage
differentials, inter-industry, inter-firm, inter-area or geographical differentials and
personal differentials.
In other words, wage differentials may be as follows: -
i) Occupational Differentials
The reasons for occupational wage differentials can be varying requirements of skill,
knowledge, demand supply situation, degree of responsibilities etc. In countries adopting

a course of planned economic development, skill differentials play an important role in
manpower and employment programmers, for they considerably help in bringing about
an adequate supply of labor with skills corresponding to the requirements of product
plans.
ii) Inter-firm Differentials
Inter-firm differentials reflect the relative wage levels of workers in different plants in the
same area and occupation. Differences in technological advancement, managerial
efficiency, financial capability, age and size of them, relative advantages and
disadvantages of supply of raw materials, power and availability of transport facilities -
those are also accounted for considerable disparities in inter-firm wage rates. Lack of co-
ordination among adjudication authorities too, is responsible for such anomalies.
iii) Inter-area or Regional Differentials
Such differentials arise when workers in the same industry and the same occupational
group, but living in different geographical areas, are paid different wages. Regional wage
differentials may be conceived in two senses. In the first sense, they are merely a part of
inter-industry differentials in a particular region. In the second sense, they may represent
real geographical differentials, resulting in the payment of different rates for the same
type of work. In both cases, regional differentials affect the supply of manpower for
various plants in different regions.
iv) Inter-industry Differentials
These differentials arise when workers in the same occupation and the same area but in
different industries are paid different wages. Inter-industry differentials reflect skill
differentials. The industries paying higher wages have mostly been industries with a large
number of skilled workers, while those paying less have been industries with a large
proportion of unskilled and semi-skilled workers. Other factors influencing inter-industry

differentials are the extent of unionization, the structure of product markets, the ability to
pay, labour-capital ratio and the stage of development of an industry.
v) Inter-Personal Wage Differentials
These differentials are between workers in the same plant and the same occupation.
These may be due to differentials in sex, skills, age, knowledge or experience.
Compensation is the remuneration which an employee receives in return for his/her
contribution to the organization.
Employee compensation reefers to all forms of pay or rewards going to employees and
arising from their employments and have two main components.
1. Direct financial payments (in the form of wages, salaries, incentives, commissions
and bonuses) and
2. Indirect payments (in the form of non-financial benefits like employer paid
insurance and vacations)
Compensation may be defined as “money received in performance of work plus many
kinds of services and benefits that organization provides to their employees. Money is
included under direct compensation (popularly known as wages i.e. gross pay) which
benefits comes under indirect compensation and may consists of life accident and health
insurance, the employer’s contribution to retirement, pay for vacations or illness and
employer’s required payments for employee welfare as social security.
Compensation may be defined as “all forms of financial returns, tangible services and
benefits that employees receive as part of their employment relationship”.

IMPORTANCE OF COMPENSATION MANAGEMENT
Compensation and Reward system plays vital role in a business organization. Since,
among four Ms. i.e. Men, Material, Machine and Money. Men have been most important
factor, it is impossible to imagine a business process without Men. Every factor
contributes to the process of production/business. It expects return from the business
process such as rent is the return expected by the landlord, capitalist expects interest and
organizer i.e. entrepreneur expects profits. Similarly the labor expects wages from the
process.
Labor plays vital role in bringing about the process of production/business in motion. The
other factors being human, has expectations, emotions, ambitions and egos. Labour
therefore expects to have fair share in the business/production process. Therefore a fair
compensation system is a must for every business organization.
The fair compensation systemwill help in the following: -
An ideal compensation system will have positive impact on the efficiency and
results produced by employees. It will encourage the employees to perform better
and achieve the standards fixed.
It will enhance the process of job evaluation. It will also help in setting up an
ideal job evaluation and the set standards would be more realistic and achievable.
Such a system should be well defined and uniform. It will be apply to all the
levels of the organization as a general system.
The system should be simple and flexible so that every employee would be able to
compute his own compensation receivable.
It should be easy to implement, should not result in exploitation of workers.
It will raise the morale, efficiency and cooperation among the workers. It, being
just and fair would provide satisfaction to the workers.
Such system would help management in complying with the various labor acts.

Such system should also solve disputes between the employee union and
management.
The system should follow the management principle of equal pay.
It should motivate and encouragement those who perform better and should
provide opportunities for those who wish to excel.
Sound Compensation/Reward System brings peace in the relationship of
employer and employees.
It aims at creating a healthy competition among them and encourages employees
to work hard and efficiently.
The system provides growth and advancement opportunities to the deserving
employees.
The perfect compensation system provides platform for happy and satisfied
workforce. This minimizes the labor turnover. The organization enjoys the
stability.
The organization is able to retain the best talent by providing them adequate
compensation thereby stopping them from switching over to another job.
The business organization can think of expansion and growth if it has the support
of skillful, talented and happy workforce.
The sound compensation system is hallmark of organization’s success and
prosperity. The success and stability of organization is measured with pay-
package it provides to its employees.
Types of Compensation
A compensation package constitutes all the rewards and allowances provided to the
employees including their salary (only a part of the compensation system) in return of
their contribution to the organization. However, these benefits are provided in the form of
either monetary or non-monetary value to the employees.

Thus, it is seen that there are two types of compensation provided to the employees in the
organization and these are: -
[i] Direct compensation
[ii] Indirect compensation
Direct Compensation
Direct compensation refers to monetary benefits offered and provided to employees in
return of the services they provide to the organization. The monetary benefits include
basic salary, house rent allowance, conveyance, leave travel allowance, medical
reimbursements, special allowances, bonus, PF/Gratuity etc. They are given at a regular
interval at a definite time.
House Rent Allowance
Some organizations have the provision of quarters to accommodate their employees,
while the others offer housing rent allowances to them. This provides social security to
the employees and builds up a sense of co-operation among them.
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her for a
certain period say a day, a week, a month etc. It is the money an employee receives from
his/her employer by rendering his/her services. Organizations either provide
accommodations to its employees who are from different state or country or they provide
house rent allowances to its employees. This is done to provide them social security and
motivate them to work.
Conveyance
Organizations provide for cab facilities to their employees. Few organizations also
provide vehicles and petrol allowances to their employees to motivate them.

Medical
Reimbursements
Special Allowances
Basic Salary
Direct
Compensation
House Rent
Allowances Bonus
Leave Travel Allowance
These allowances are provided to retain the best talent in the organization. The
employees are given allowances to visit any place they wish with their families. The
allowances are scaled as per the position of employee in the organization.
Conveyance
Leave Travel
Allowances

Medical Reimbursement
Organizations also look after the health conditions of their employees. The employees are
provided with medi-claims for them and their family members. These medi-claims
include health-insurances and treatment bills reimbursements.
Bonus
Bonus is paid to the employees during festive seasons to motivate them and provide them
the social security. The bonus amount usually amounts to one month’s salary of the
employees.
Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions, travel
expenses, reduced interest loans; insurance, club memberships etc are provided to
employees to provide them social security and motivate them which improve the
organizational productivity.
Indirect Compensation
Indirect compensation refers to non-monetary benefits offered and provided to employees
in lieu of the services provided by them to the organization. They include Leave Policy,
Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits,
Retirement Benefits, Holiday Homes.
Leave Policy
It is the right of employee to get adequate number of leave while working with the
organization. The organizations provide for paid leaves such as, casual leaves, medical
leaves (sick leave) and maternity leaves, statutory pay etc.

Overtime Policy
Employees should be provided with the adequate allowances and facilities during their
overtime, if they happened to do so, such as transport facilities, overtime pay etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at an
interval of one year. Even their dependents should be eligible for the medi-claims that
provide them emotional and social security.

Overtime Policy
Hospitalization
Leave Policy
Indirect
Flexible Timings Compensation Insurance
Holiday Homes
Leave Travel
Retirement
Benefits
Insurance
Organizations also provide for accidental insurance and life insurance for employees.
This gives them the emotional security and they feel themselves valued in the
organization.

Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with
their families. Some organizations arrange for a tour for the employees of the
organization. This is usually done to make the employees stress free.
Evolution of Strategic Compensation
Today’s compensation systems have come from a long way. With the changing
organizational structures workers’ need and compensation systems have also been
changing. From the bureaucratic organizations to the participative organizations,
employees have started asking for their rights and appropriate compensations. The higher
education derived from the business strategy. The business goals and objectives are
aligned with the HR strategies. Then the compensation committee or the concerned
authority formulates the compensation strategy. It depends on both internal and external
factors as well as the life cycle of an organization standard and higher skills required for
the jobs have made the organizations provide competitive compensations to their
employees.
Compensation strategy is
Traditional
Change inCompensation Modern
Traditional Compensation Systems
In the traditional organizational structures, employees were expected to work hard and
obey the bosses’ orders. In return they were provided with job security, salary increments
and promotions annually. The salary was determined on the basis of the job work and the
years of experience the employee is holding. Some of the organizations provided for
Compensation
Systems
Systems Compensation
Systems

retirement benefits such as pension plans, for the employees. It was assumed that humans
work for money, there was no space for other psychological and social needs of workers.
Change in Compensation Systems
With the behavioral science theories and evolution of labor and trade unions, employees
started asking for their rights. Maslow brought in the need hierarchy for the rights of the
employees. He stated that employees do not work only for money but there are other
needs too which they want to satisfy from their job i.e., social needs, psychological
needs, safety needs, self-actualization etc. Now the employees were being treated as
human resource.
Their performance was being measured and appraised based on the organizational and
individual performance. Competition among employees existed. Employees were
expected to work hard to have the job security. The compensation system was designed
on the basis of job work and related proficiency of the employee.
Self-Actualization
Esteem
Social Needs
Safety Needs
Psychological Needs

Maslow’s NeedHierarchy
Today’s Modern Compensation Systems
Today the compensation systems are designed aligned to the business goals and
strategies. The employees are expected to work and take their own decisions. Authority is
being delegated. Employees feel secured and valued in the organization. Organizations
offer monetary and non-monetary benefits to attract and retain the best talents in the
competitive environment. Some of the benefits are special allowances like mobile,
company’s vehicle; House rent allowances; statutory leaves etc.
COMPONENTS OF COMPENSATION
Basic Wages/Salaries
These refer to the cash component of the wage structure based on which other elements
of compensation may be structured. It is normally a fixed amount which is subject to
changes based on annual increments or subject to periodical pay hikes. It is structured
based on the position of an individual in the organization and differs from grades to
grades.
Dearness allowance
The payment of dearness allowance facilitates employees and workers to face the price
increase or inflation of prices of goods and services consumed by him. The onslaught of
price increase has a major bearing on the living conditions of the labor. The increasing
prices reduce the compensation to nothing and the money’s worth is coming down based
on the level of inflation.
The payment of dearness allowance, which may be a fixed percentage on the basic wage,
enables the employees to face the increasing prices.

Bonus
The bonus can be paid in different ways. It can be fixed percentage on the basic wage
paid annually or in proportion to the profitability. The Government also prescribes a
minimum statutory bonus for all employees and workers.
There is also a bonus plan which compensates the managers and employees based on the
sales revenue or profit margin achieved. Bonus plans can also be based on piece wages
but depends upon the productivity of labor.
Commissions
Commission to Managers and employees may be based on the sales revenue or profits of
the company. It is always a fixed percentage on the target achieved. For taxation
purposes, commission is again a taxable component of compensation.
The payment of commission as a component of commission is practiced heavily on target
based sales. Depending upon the targets achieved, companies may pay a commission on a
monthly or periodical basis.
Mixed Plans
Companies may also pay employees and others a combination of pay as well as
commissions. This plan is called combination or mixed plan. Apart from the salaries paid,
the employees may be eligible for a fixed percentage of commission upon achievement of
fixed target of sales or profits or performance objectives.
Nowadays, most of the corporate sector is following this practice. This is also termed as
variable component of compensation.

Piece Rate Wages
Piece rate wages are prevalent in the manufacturing wages. The laborers are paid wages
for each of the quantity produced by them. The gross earnings of the labor would be
equivalent to number of goods produced by them.
Piece rate wages improves productivity and is an absolute measurement of productivity to
wage structure. The fairness of compensation is totally based on the productivity and not
by other qualitative factors.
The GANTT productivity planning and Taylor’s plan of wages are examples of piece rate
wages and the related consequences.
Sign on Bonuses
The latest trend in the compensation planning is the lump sum bonus for the incoming
employee. A person, who accepts the offer, is paid a lump sum as a bonus.
Even though this practice is not prevalent in most of the industries, equity research and
investment banking companies are paying this to attract the scarce talent.
Profit Sharing Payments
Profit sharing is again a novel concept nowadays. This can be paid through payment of
cash or through ESOPS. The structuring of wages may be done in such a way that, it
attracts competitiveness and improved productivity.
Profit sharing can also be in the form of deferred compensation at the time of retirement.
At the time of retirement the employees may be paid a lump sum or retrial benefits.
Fringe Benefits
The provision of fringe benefits does not attract any explanation. These includes: -
a) Company cars
b) Paid vacations

c) Membership of social/cultural clubs
d) Entertainment tickets/allowances
e) Discounted travel tickets
f) Family vacation packages
Reimbursements
Employees, depending upon their gradations in the organization may get reimbursements
based on the expenses incurred and substantiated. Certain expenses are also paid based on
expenses incurred during the course of business.
In many cases, employers provide advances to the employees for incurring certain
expenses that are incurred during the course of the business.
Some examples are: -
a) Travel expenses.
b) Entertainment expenses
c) Out of pocket expenses
d) Refreshments expenses during office routine outside office premises
Sickness Benefits/Pregnancy
The increasing social consciousness of corporate had resulted in the payment of sickness
benefit to the employees of companies. This also includes payments during pregnancy of
women employees.
The expenses incurred due to injury or illness are compensated or reimbursed to the
employees. In certain companies, the death of an employee is compensated financially.
Companies are also providing supporting financial benefits to the family of the bereaved
employees. However, companies covering these costs through appropriate insurance
policies like Medical and Life Insurance.
Incentives
In today’s strategic compensation systems, incentives forms an integral part of the
performance based compensation packages. It is a challenge for organizations to

formulate strategies to maintain the internal equity and external equity and provide the
most competitive compensation packages to attract and retain the talented workforce. For
the purpose effective incentives programs are undertaken. Employees are involved in the
process so as to deliver un-biased packages to all the employees.
Incentives Plans
Organizations can opt for an effective incentive plans from the various alternatives
available. The organizations usually opt for that incentive plans which suits its
requirement the most. As incentives covers the financial matters, organizations need to be
very focused in choosing the best alternative that is in alignment to the business goals and
objectives.
Piece Rate
Piece rate incentive is given to the employees based on the number of units produced.
This plan is practiced in the sectors dealing with manufacturing of products such as
engineering, automobile, telecommunication, FMCG etc.
Commissions
Commission is a variable component of compensation package. It is given on the basis of
business generated by the employee. Commission is a pre fixed component say 5% of the
total sales done by the employee. It is practiced in the retail, FMCG and other sectors in
the marketing and sales segment.
Bonuses
Bonuses are given to employees on a pre-established goal or criteria. The organizations
set policies regarding the bonuses. Usually bonuses are provided during the festive
season

Merit Raises
Merit raises are given on the basis of predetermined policies. The employees are given
raise on the basis of their performance. The performance standards are set by the
organizations much in advance.
Standard Hour Pay
Standard hour plan provides incentives to employees based on the time saved by them
during the job course. Employees’ productivity and quality is evaluated with respect to
the set standards.
Maturity Curves
Maturity curve incentive plan considers the experience and performance of an employee
for giving out the incentives. It is practiced in all the industries. Experience is always
given a weight-age as experienced people can produce better quality results.
Gain Sharing
Gain sharing incentive plans undertake those employees who give outstanding
performances and provide for cost saving measures. Organizations believe in sharing the
profits with the employees who are responsible for producing those results.
Profit Sharing
Profit sharing incentive plans are practiced in retail and FMCG sectors. Other sectors to
implement the plan based on organizational policies. It refers to giving out the share of
profits the organization earned to all the employees. Indirectly all the organizations
follow the plan by giving out the dividends.

CHAPTER – 2
RESEARCH DESIGN
Introduction to the Topic
Wage and salary administration affect level of employee’s commitment to the
organization. Howsoever, fascinating the individual’s job assignment maybe, the
employee must be paid. Pay affects the way people work-how much and how well. A
large part of the compensation that people receive from work is monetary. Although
managers are expected to conserve money and distribute it wisely, salaries and many
employees feel that they should get more of it for what they do. Wages, salaries and
many employee benefits and services are different forms of compensation.
Contemporary employment reward systems attach great prominence to wages and
salaries. In the evolution of economies, the role of financial rewards has grown. The
sophistication of wage and salary administration has increased as industrialized
economies have become more complex.
“Wage and Salary” is a practical study performance of a company practically adopted.
Among the four most important Ms, Men play a dominate role. The only way by which
men can be gained, retained and satisfied is through wages and salaries. This study is
made to know how the employees are graded and how they are paid by hourly or daily,
whereas salaries are paid by monthly basis.
Wage and Salaries for a particular employee or employer depends upon the various
factors like his grade, position, qualifications, place (urban, rural etc), inflation, type of
organization, industry etc. Per-capita income of a country is calculated upon the wage or
salaries of individuals.

Wage is the compensation an employee receives in return for his or her contribution to
the organization. Wage occupies an important place in the life of an employee. His or her
standard of living, status in the society, motivation, loyalty and productivity depended
upon the wage he or she receives. For the employee too, employee wage is significant
because of its contribution to the cost of production. Besides, many battles (in the form of
strikes and lockouts) are fought the employer and the employees on issues relating to
wages of bonus. For human resource management too, employee wage is a major
function. The human resource specialist has a difficult task of fixing wages and wage
differentials acceptable to employees and their leaders. Since employee wage is such an
important subject, considerable space is devoted in books and periodicals discussion of
wage-related and salary-related problems. This book is not in exception. This study helps
to know how to compensate the work done by individuals in an organization.
Review of Literature
The dire economic conditions that arose in the aftermath of the 2008 financial crisis have
stimulated a heated debate about the compensation of public employees. The issue has
received particular attention because of the severe budgetary constraints facing
governments at all levels. For example, commenting on the disturbances in the state of
Wisconsin during February of 2011, Governor Mitch Daniels of Indiana argued: “The
people who are doing the demonstrating and their allies... spent that state broke... These
folks have really ruled the roost in Wisconsin and other places” [Haberman, 2011].
Daniels continued along this vein in another interview, “We have a new privileged class
in America... We used to think of government workers as underpaid public servants. Now
they are better paid than the people who pay their salaries... Who serves whom here? Is
the public sector - as some of us have always thought - there to serve the rest of society?
Or is it the other way around?” [Garofalo, 2010].

At the same time, some public employees maintain that they are underpaid. A seventh-
grade English teacher demonstrating against Wisconsin Governor Scott Walker’s plan to
reduce public sector benefits told the Huffington Post, “I can’t get a home loan. I set my
thermostat at 62, No cable at my house, no internet... I’m also $36,000 in debt from
becoming a teacher” [Delaney, 2011]. Confronted with the charge of being overpaid, a
paramedic at the same rally remarked, “I drove my Ford Focus [to the capitol building in
Madison]. I live in a 950-square-foot condominium!” [Delaney, 2011]. Others say that
the uproar over public sector compensation simply stems from envy of government
employees’ rightful compensation: “We had the promise of stable retirement [...] People
hate to see someone doing better than they are” [Delaney, 2011]. Martinez, president of
the Service Employees International Union Local 1107, saw public sector compensation
as an arbitrary target for budget cuts: “Why does it have to be on the backs of our
employees?... We need to hold the line and maintain what we have” [Cook, 2011].
Title of the Study
“A Study on Employee’s Wages and Compensation” in Kissan Mouldings Ltd in
Tumkur.
Statement of the Problem
Study of wage and compensation of an organization is very important because it helps to
know whether the employees are rightly compensated for their work.
The study consist with the following problems: -
How employees are satisfied with their wages and compensation?
It is also important to know whether the company is following the right pay scale.
To know various allowances, like washing allowance, stitching allowances, city
compensatory allowances, perks allowance?
How a company works and studies the wage and compensation in daily and
weekly payment of wages in all workers of Kissan Mouldings Ltd in Tumkur.

Objectives of the Study
To study organization structure of Kissan Mouldings Ltd.
To study the wage and compensation of employee in Kissan Mouldings Ltd.
To study growth and development of Kissan Mouldings Ltd enable an
organization to have the quantity and quality of staff it required.
To motivate employees for good performance for further improvement in
performance of Kissan Mouldings Ltd.
Maintain equity and fairness in compensation for similar jobs.
Scope of Study
Today’s compensation systems have evolved over a long time. Worker’s needs and
compensation systems have been changing along with the changes in organizational
structures. This results in a participative organization from the bureaucratic one, where
the employees have started asking for their rights and appropriate compensations. Higher
education standards and higher the skills required for the jobs, have forced the
organizations to provide the competitive compensations to their employees. The area of
study is limited to Kissan Mouldings Ltd Tumkur unit only.
Needand significance of the study
Compensation and Reward system plays vital role in a business organization. Since,
among four Ms. i.e. Men, Material, Machine and Money. Men have been most important
factor, it is impossible to imagine a business process without Men. Every factor
contributes to the process of production/business. It expects return from the business
process such as rent is the return expected by the landlord, capitalist expects interest and
organizer i.e. entrepreneur expects profits. Similarly the labor expects wages from the
process.

Method of research
My study is based on survey method using questionnaire.
Period of the study
Period of my study is one year i.e., during 2013-14 based on collection of data using
primary data as questionnaire and secondary data.
Methodology of Data Collection
1. Primary Data
Primary data has been collected from HR manager and through direct interviews and
questionnaires.
2. Secondary Data
Secondary data was collected by referring to SEA news circular, various books and from
internet using different websites.
Sampling
The process of extracting sample from a population is called sampling. An integral
component of the research design is the sampling plan which consists of three decisions.
Sampling Size
In Kissan Mouldings Ltd total population of employees is 800. Out of total population I
have taken 50 employees as sample size based on permission given by company.

Limitation of the Study
The present study concentrates only on Kissan Mouldings Ltd Tumkur. As the time given
was limited detailed information regarding the strategy of the Kissan Mouldings Ltd.
Tumkur was not able to be collected.
This project report is prepared on the basis of the information provided by the company.
• Information so collected may be biased.
• Company manager is not that much co-operative.
• The suggestions are based on data
CHAPTER SCHEME
The project work is organized into the following chapters.
Chapter 1: Introduction
This chapter deals with introductory part of in wages and compensation, brief concept of
wage and compensation, meaning, definition and objective of wage and compensation.
Chapter 2: Research Design and Methodology
This chapter deals with the research design of the study, nothing but the blue print of
the research
Chapter 3: Company profile
This chapter deals with the industry and company profile.
Chapter 4: Analysis and interpretation
This chapter deals with the analysis and interpretation of data collected from the
questionnaire.

“A study on employee’s wages and compensation” in Kissa Mouldings
Chapter 5: Summary of Findings and Conclusions
This chapter deals with the summary of findings and conclusions.
Chapter 6: Suggestion
This chapter deals with the summary of suggestions.

CHAPTER – 3
INDUSTRY PROFILE
History
Plastic is a word that originally meant “pliable and easily shaped.” It only recently
became a name for a category of materials called polymers. The word polymer means “of
many parts”, and polymers are made of long chains of molecules. Polymers abound in
nature. Cellulose, the material that makes up the cell walls of plants, is a very common
natural polymer.
Over the last century and a half humans have learned how to make synthetic polymers,
sometimes using natural substances like cellulose, but more often using the plentiful
carbon atoms provided by petroleum and other fossil fuels. Synthetic polymers are made
up of long chains of atoms, arranged in repeating units, often much longer than those
found in nature. It is the length of these chains and the patterns in which they are arrayed,
that make polymers strong, lightweight and flexible. In other words, it’s what makes
them so plastic.
These properties make synthetic polymers exceptionally useful, and since we learned
how to create and manipulate them, polymers have become an essential part of our lives.
Especially over the last 50 years plastics have saturated our world and changed the way
that we live.
The First Synthetic Plastic
The first synthetic polymer was invented in 1869 by John Wesley Hyatt, who was
inspired by a New York firm’s offer of $10,000 for anyone who could provide a
substitute for ivory. The growing popularity of billiards had put a strain on the supply of
natural ivory, obtained through the slaughter of wild elephants. By treating cellulose,

derived from cotton fiber, with camphor, Hyatt discovered a plastic that could be crafted
into a variety of shapes and made to imitate natural substances like tortoiseshell, horn,
linen and ivory.
This discovery was revolutionary. For the first time human manufacturing was not
constrained by the limits of nature. Nature only supplied so much wood, metal, stone,
bone, tusk and horn. But now humans could create new materials. This development
helped not only people but also the environment. Advertisements praised celluloid as the
savior of the elephant and the tortoise. Plastics could protect the natural world from the
destructive forces of human need.
The creation of new materials also helped free people from the social and economic
constraints imposed by the scarcity of natural resources. Inexpensive celluloid made
material wealth more widespread and obtainable. And the plastics revolution was only
getting started.
The Development of New Plastics
In 1907 Leo Baekeland invented Bakelite, the first fully synthetic plastic, meaning it
contained no molecules found in nature. Baekeland had been searching for a synthetic
substitute for shellac, a natural electrical insulator, to meet the needs of the rapidly
electrifying United States.
Bakelite was not only a good insulator; it was also durable, heat resistant and unlike
celluloid, ideally suited for mechanical mass production. Marketed as “the material of a
thousand uses,” Bakelite could be shaped or molded into almost anything, providing
endless possibilities.

Hyatt’s and Baekeland’s successes led major chemical companies to invest in the
research and development of new polymers and new plastics soon joined celluloid and
Bakelite. While Hyatt and Baekeland had been searching for materials with specific
properties, the new research programs sought new plastics for their own sake and worried
about finding uses for them later.
Plastics Come of Age
World War II necessitated a great expansion of the plastics industry in the United States,
as industrial might prove as important to victory as military success. The need to preserve
scarce natural resources made the production of synthetic alternatives a priority. Plastics
provided those substitutes. Nylon, invented by Wallace Carothers in 1935 as a synthetic
silk, was used during the war for parachutes, ropes, body armor, helmet liners and more.
Plexiglas provided an alternative to glass for aircraft windows. A Time magazine article
noted that because of the war, “plastics have been turned to new uses and the adaptability
of plastics demonstrated all over again.”1
During World War II plastic production in the
United States increased by 300%.
The surge in plastic production continued after the war ended. After experiencing the
Great Depression and then World War II, Americans were ready to spend again, and
much of what they bought was made of plastic. According to author Susan Freinkel, “In
product after product, market after market, plastics challenged traditional materials and
won, taking the place of steel in cars, paper and glass in packaging and wood in
furniture.”2
The possibilities of plastics gave some observers an almost utopian vision of
a future with abundant material wealth thanks to an inexpensive, safe, sanitary substance
that could be shaped by humans to their every whim.

Growing Concerns about Plastics
The unblemished optimism about plastics didn’t last. In the postwar years there was a
shift in American perceptions as plastics were no longer seen as unambiguously positive.
Plastic debris in the oceans was first observed in the 1960s, a decade in which Americans
became increasingly aware of environmental problems. Rachel Carson’s 1962 book,
Silent Spring, exposed the dangers of chemical pesticides. In 1969 a major oil spill
occurred off the California coast and the polluted Cuyahoga River in Ohio caught fire,
raising concerns about pollution. As awareness about environmental issues spread, the
persistence of plastic waste began to trouble observers.
Plastic also gradually became a word used to describe that which was cheap, flimsy or
fake. In The Graduate, one of the top movies of 1968, Dustin Hoffman’s character was
urged by an older acquaintance to make a career in plastics. Audiences cringed along
with Hoffman at what they saw as misplaced enthusiasm for an industry that, rather than
being full of possibilities, was a symbol of cheap conformity and superficiality.
Plastic Problems: Waste and Health
Plastic’s reputation fell further in the 1970s and 1980s as anxiety about waste increased.
Plastic became a special target because, while so many plastic products are disposable,
plastic lasts forever in the environment. It was the plastics industry that offered recycling
as a solution. In the 1980s the plastics industry led an influential drive encouraging
municipalities to collect and process recyclable materials as part of their waste-
management systems. However, recycling is far from perfect, and most plastics still end
up in landfills or in the environment. Grocery-store plastic bags have become a target for
activists looking to ban one-use, disposable plastics and several American cities have
already passed bag bans. The ultimate symbol of the problem of plastic waste is the Great
Pacific Garbage Patch, which has often been described as a swirl of plastic garbage the
size of Texas floating in the Pacific Ocean.

The reputation of plastics has suffered further thanks to a growing concern about the
potential threat they pose to human health. These concerns focus on the additives (such as
the much - Discussed Bisphenol A [BPA] and a class of chemicals called phthalates) that
go into plastics during the manufacturing process, making them more flexible, durable
and transparent. Some scientists and members of the public are concerned about evidence
that these chemicals leach out of plastics and into our food, water and bodies. In very
high doses these chemicals can disrupt the endocrine (or hormonal) system. Researchers
worry particularly about the effects of these chemicals on children and what continued
accumulation means for future generations.
The Future of Plastics
Despite growing mistrust, plastics are critical to modern life. Plastics made possible the
development of computers, cell phones and most of the lifesaving advances of modern
medicine. Lightweight and good for insulation, plastics help save fossil fuels used in
heating and in transportation. Perhaps most important, inexpensive plastics raised the
standard of living and made material abundance more readily available. Without plastics
many possessions that we take for granted might be out of reach for all but the richest
Americans. Replacing natural materials with plastic has made many of our possessions
cheaper, lighter, safer and stronger.
Since it’s clear that plastics have a valuable place in our lives, some scientists are
attempting to make plastics safer and more sustainable. Some innovators are developing
bioplastics, which are made from plant crops instead of fossil fuels, to create substances
that are more environmentally friendly than conventional plastics. Others are working to
make plastics that are truly biodegradable. Some innovators are searching for ways to
make recycling more efficient, and they even hope to perfect a process that converts
plastics back into the fossil fuels from which they were derived. All of these innovators

our future.
1712
1823
1839
1851
1854
1855
1861-67
1862
1870
1884
John O’Brisset moulds snuff boxes from horn.
Macintosh uses rubber gum to waterproof cotton and the ‘mac’ is born.
First deliberate chemical modification of a natural polymer produces
vulcanised rubber.
Gutta percha used to insulate submarine telegraph cables between England
and France.
Shellac mixed with wood flour patented in USA as moulding material for
making ‘union cases’, protective frames for daguerreotypes and
ambrotypes - early forms of photographs on glass.
Soccer ball with vulcanised rubber panels, glued at the seams, designed
and produced by Charles Goodyear.
Queen Victoria’s mourning for the Prince Consort fuels the production of
imitation jet mourning jewellery in such materials as cellulose nitrate, hard
rubber and horn.
A range of toiletry and household objects, some imitating the appearance
of tortoiseshell and ivory, made of an early form of cellulose nitrate, is
displayed at the International Exhibition in London. The material was
called Parkesine after its inventor Alexander Parkes. Ultimately Parkesine
fails as a commercial venture.
In USA Hyatt brothers in search of substitute material for ivory billiard
balls turn cellulose nitrate into a commercially viable 1870 material.
Dental palates are one of their good sellers. They register the name
‘Celluloid’ for their material in 1873.
Cellulose nitrate modified to make artificial silk, called Chardonnet silk.
“A study on employee’s wages and compensation” in Kissan Mouldings
recognize that plastics are not perfect but that they are an important and necessary part of
A plastics timeline

1889
1888
1890
1892
1898
1899
1905
1907
1910
1913
1915
1916
1920
1926
1929
Ltd., in Tumkur
Dunlop Rubber Company founded and motor industry revolutionised.
First commercially successful celluloid (cellulose nitrate) photographic
film introduced by George Eastman Kodak.
Thermoforming introduced and used to make babies’ rattles from cellulose
nitrate.
Cellulose acetate modified to make a form of artificial silk, called viscose.
By 1904 this was known as rayon.
Beginning of mass-production of 78 rpm gramophone records from
shellac, for which it remains the most common material until the 1940s.
Casein formaldehyde patented as Galalith in Germany.
Laminated safety glass, first with gelatine but then with cellulose nitrate
inter-layer introduced.
First synthetic (lab made) plastic, phenol formaldehyde, better known as
Bakelite, later known as ‘the material of a 1000 uses’ introduced.
Viscose stockings begin to be manufactured.
Formica invented.
Queen Mary orders casein jewellery at the British Industries Fair.
Rolls Royce boasts about use of phenol formaldehyde in its car interiors.
Hermann Staudinger publishes his realisation that plastics are made tip of
polymers. Only in 1953 was the value of his work properly recognised
when he was awarded the Nobel Prize for Chemistry.
Harrods, the London store, mounts a display of Beetle products, made
from a form of thiourea-urea formaldehyde. It is a huge success.
National Grid for electricity is established, fuelling the desire for
consumer goods that plug in and switch on, often with plastic housings.
Bakelite Ltd receives its largest ever order of phenol formaldehyde for the
manufacture of the casing of the Siemens Neophone Number 162
telephone.

1933
1935
1936
1938
1939
1945
1947
1948
1949
1950
The British Plastics Federation, the oldest national organization in the
world with plastics in its name, is set up.
Couturier, Elsa Schiaparelli, begins to use zips made of cellulose nitrate
and cellulose acetate in her garments.
Acrylic (polymethyl methacrylate) canopies used in Spitfire fighter planes.
From 1940 it becomes the most widely used material for aircraft glazing.
First toothbrush with plastic tufts manufactured. The tufts were made of
nylon (polyamide).
Introduction of plastic contact lenses. The lenses were made of acrylic
(polymethyl methacrylate).
First polythene factory opens in Britain. Polythene plays a crucial role in
the insulation of British radar cables during World War II. The entire
production is for military use.
Plastic Man, a fictional comic-book hero, first appears.
The end of the war releases a range of plastics developed to support the
war effort on the commercial market looking for uses.
First acrylic (polymethyl methacrylate) paint (dissolved in turpentine)
becomes available. Appreciated by artists such as Roy Lichtenstein for its
intensity and rapid drying properties.
Tupperware, with flexible seals made possible by the invention of
polythene, patented in the USA.
Introduction of long playing vinyl copolymer gramophone records.
Charles and Ray Eames glass reinforced plastic shell chair showed that
plastic could be more than a furniture covering or veneering material.
First Airfix self-assembly model produced. It was made of polystyrene.
Kartell, the Italian firm associated with plastic objects of desire for the
home, founded.
Silly Putty, made from silicon, launched at the New York Toy Fair.
““A study on employee’s wages and compensation” in Kissan Mouldings Ltd., in
Tumkur

1951
1953
1954
1956
1958
1959
1963
1967
Early 1950s the ubiquitous polythene bag makes its first appearance.
First polythene bottle made by Sqezy.
Commercialization of polyester fibre introduces the concept of ‘wash and
wear’ for fabrics.
Chevrolet Corvette, the first mass-produced car with a glass reinforced
plastic chassis, begins manufacture.
Synthesis of polypropylene.
Reliant Regal 111, first commercially successful all glass reinforced
plastic bodied car, goes on sale.
Eero Saarinen’s Tulip chair, the seat consisting of a glass reinforced
plastic moulded shell, launched.
Invention of the silicon chip.
American Express launches first plastic credit card in US.
Lego decides to concentrate exclusively on plastic toys and patents its
stud-and-block coupling system. Originally made of cellulose acetate, it
has been made of ABS (acrylonitrile-butadiene-styrene) since l963.
Birth of the Barbie doll, made mainly of PVC (polyvinyl chloride) and the
Lycra (copolymer of polyurethane) bra.
Early 1960s Acrylic (polymethyl methacrylate) paint (diluted with water)
comes on market and is soon widely used by artists such as Warhol,
Rauschenberg and Hockney.
Mary Quant launches her “Wet Collection” made of plasticised PVC
(polyvinyl chloride). It had taken two years to work out how to bond the
seams successfully.
Robin Day polypropylene one-piece injection moulded chair shell begins
manufacture.
Inflatable PVC (polyvinyl chloride) ‘Blow’ chair designed by DePas,
D’Urbino, Lomazzi and Scolari for Zanotta SpA, launched.

1969
1969
1970
1976
1977
1978
1980
1982
2000
2005
2007
Neil Armstrong plants a nylon (polyamide) flag on the moon.
Beatles’ song ‘Polythene Pam’, the kind of a girl that makes the News of
the World released on Abbey Road album.
Verner Panton’s cantilevered stackable chair, the first whole chair to be
made out of a single piece of injection-moulded plastic becomes a reality.
He had been working on the design since 1960. The first pilot production
models were made of glass-reinforced polyester resin in 1967. It has since
been made of polyester integral foam, polyurethane, styrene acrylonitrile
(SAN) and polypropylene.
Plastic, in its great variety of types, said to be the material with the most
uses in the world.
Concorde with its nose cone of purpose-made plastic goes into service.
PET (Polyethylene terephthalate) drinks bottle introduced.
PolyStyrene, lead singer of the Punk band X-Ray Spex, bursts on the
scene with ‘the day the world turned day glow’.
During this decade ICI and Bayer launch PEEK, PES and PPS as the new
engineering thermoplastics, Costs are enormous but specialist applications
make a lasting market even after ICI retreats from the plastics market.
First artificial heart made mainly of polyurethane implanted in a human.
Issues relating to sustainability and the creation of plastics from renewable
sources start gathering momentum.
Naas explores the advantages of a polythene-based material, RXF1, for the
space-ship that will send man to Mars.
Tate Britain’s Christmas tree decorated with plastic Airfix planes

COMPANYPROFILE
ADDRESS OF THE COMPANY:
Kissan Mouldings Ltd.
Plot No.172-B &173-A. Zone- 3
Vasantanarasapura industrial area,
Kora Post
Tumkur – 572138.
LOGO & TAGLINE
NAME OF THE COMPANY: KISSAN MOULDINGS LTD.

OBJECTIVES
The present main objects of the company as set out of its memorandum of association
and as approved by company law board bench, Western region, Bombay vide its order
dated 18.11. 1983 and as set out in object clause ‘ C ’ vide sub- clause 98&99 are as
follows;
1. To carry on the business of all types of plastics and polymers moldings,
manufacturing moldings producing, fabricating processing, converting, refining,
preparing, importing, exporting, selling, distributing, communication agency and
dealers in all types of sewerage fittings, tubes, pipes, hoses, wrapping, trucks and
house – hold goods.
2. To carry on the business as manufactures of and dealers in all types of plastics,
synthetics resin, synthetic rubbers and elastomers, lattices and formulations there of
including reclaimed rubber and all kinds of plastic and rubber products goods and by
products here to.
BUSINESS PHILOSOPHY
Our foundation ; the trust built up over the years.
Our inspiration ; our valued customers
Our mission ; Creating products enhance living.
Our vision ; To be a global player and household name in “water
Management solutions’’ through constant innovation and
Shareholders satisfaction.

ABOUT KISSAN MOULDINGS LTD.
Kissan Mouldings Ltd engages in the manufacture and sale of plastic molded fittings and
furniture in India. It offers building and construction products that include UPVC SWR
pipes and fittings, molded agriculture fittings, UPVC conduit pipes and fittings, rainwater
harvesting systems, PE – AL – PE composite pipes and fittings, cisterns and PVC ball
values and foot valves. The company also offers water management and irrigation
products consisting of UPVC pipes, HDPE pipes, PPR pipes and fittings, Drip irrigation
systems and Sprinkler systems, In addition Kissan Moldings Ltd offers furniture products
comprising chairs, baby chairs, relax chairs, multipurpose trolleys, center tables, storage
drums, dining tables and stools. The company offers its semi urban products under the
brand name of Kissan and Molded furniture under the brand name of crest. It exports its
products to Madagascar, Mauritius, Sri lanka, Dubai, Nigeria, Kenya, Tanzania, DRC,
Sudan, Uganda and Ethiopia.
FOLLOWING IS THE LIST OF QUALITY CERTIFICATION;
1. Rigid PVC pipes; IS 4985 – 2000
2. Firmseal pipes ( Elastromeric pipes ); IS 4985 – 2000
3. HDPE pipes; IS 4984
4. Threded Blue plumbing pipes; ASTM – D – 1785
5. Casing pipes ; IS 12818
6. Sprinkler System; IS 14151 – part ½
7. SWR Pipes; IS 41592
8. SWR Fittings: IS 14735
9. Agri Fittings; IS 7834
10. Solvent Cement; IS 14812.

PRODUCTS

COMPITATORS
1. AML STEEL LTD. ( AMLSTE )
2. ASTROL POLY TECHNIK LTD, ( ASTPOL )
3. GWALIOR POLYPIPES LTD. ( GWAPOL )
4. TEXMO PIPES & PRODUCTS LTD. ( TEXPIP )

The essence of Corporate Governance lies in its transparency and its efficiency lies in its
ability to protect the stakeholder’s interest. The Company’s governance process and
practice has been framed and designed to achieve a transparency and professionalism in
action as well as the implementation of policies and procedures to ensure high ethical
standards as well as responsible management. The governance process is such as to
ensure proper utilization of resources in a manner intended to meet the expectations of all
the Stakeholders. The Company believes in meeting the obligations of all the
stakeholders, including amongst others, shareholders, customers, employees and the
community in which it operates.
Good Corporate Governance contributes to sustainable development by enhancing the
performance of Companies. Better Corporate Governance allows Companies to recognize
and act to fulfill their environmental and social responsibilities. According, it contributes
to long-term, sustainable growth.
The Company’s corporate governance policies and practices for 2011-2012 are as under:
The Company has following tiers of the Governance Pyramid: -
• Shareholders
• Board of Directors
• Committees of the Board
• Executive Management
Each of the tiers operates within the given parameter as per prevailing laws and
regulations or the practices prevalent in the industry.

Board of Directors
Board Composition
The Company recognizes the need and importance of having a strong and broad based
board and hence has maintained an optimum combination of Executive and Non-
Executive Directors. The Composition of the Board is in accordance with the
requirements of the Corporate Governance Code of the listing agreement with the. Stock
Exchanges. The Board of Directors comprises of majority of Non-Executive Directors,
having rich and varied experience and imparts the desired level of independence to the
board. Therefore, the Board of Directors of the Company consists of optimal combination
of Executive, Non-Executive and Independent Directors. As on March 31st
2012 the
Board of Directors has Three (3) Executive Directors and Eight (8) Non-Executive
Directors of which Five (5) are Independent Directors. The Chairman of the Board is
Non-executive
Director.
The day-to-day management of the Company is conducted by the Executive Directors
subject to the supervision and control of the Board of Directors. The Managing Director
of the Company is assisted by other functional Directors.
The constitution of the board and other relevant details relating to Directors as on March
31st
2012 are as under:

Name of
Director
Shri. Ramesh J.
Aggarwal
Shri. Satish J.
Aggarwal
Shri Sanjeev A.
Aggarwal
Shri. Vijay J.
Aggarwal
Shri. Ashok J.
Aggarwal
Shri Sunil Goyal
Shri R.D.
Suvarna
Shri S.K. Jain
Shri T.B.
Subramaniam
Shri Kunal R.
Aggarwal
Shri
Swaminathan
Sunderajan
Mittur*
Shri S.S.
Gupta**
Category
Chairman and
Non-Executive
Managing
Director
Executive
Joint Managing
Director
Executive
Vice Chairman
1
& Whole time
Director
Vice Chairman
2
Non-Executive
Non-Executive
Independent
Non-Executive
Independent
Non-Executive
Independent
Non-Executive
Independent
Non-Executive
Independent
Non-Executive
Independent
Non-Executive
Independent C
Directorsh
ips#
1
1
1
1
1
2
-
-
2
-
8
-
1
,
-
-
-
-
-
1
-
-
-
-
-
-
-
Committee
Chairmanship $
-
-
-
-
-
-
-
-
3
-
-
Ltd., in Tumkur
Number other
Committee
Membership $
–
–

* Appointed as Additional Director since 14th
February 2012.
*͙ Resigned as Director we’ve 17th
June, 2011.
# Other Directorship excludes Directorships held in Private Limited Companies,
Foreign Companies and Section 25 Companies.
$ Committee of Directors includes Audit Committee and Shareholders’/Investors’
Grievance Committee of Directors only.
Board Meetings and Attendance of Directors
The Board meets at least once in a quarter to consider amongst other businesses the
performance of the Company and quarterly financial results. Additional Board Meetings
are held as and when necessary. The board meetings are generally held at the Registered
Office of the company at Mumbai. Agenda for each meeting along with explanatory
notes are drafted are distributed well in advance to the Directors. Every board member is
free to suggest the inclusion of items on the agenda.
During the financial year ended March 31st
2012, the board met five times i.e., on May
30th
2011 (which was adjourned on June 17th
2011), June 17th
2011, November 12th
2011
and February 14th
2012.
The details of attendance of Directors of Board Meetings held during the Financial Year
2011-12 and the last Annual General Meeting are as under:

Number of
Number of Board
Name of Directors’ Board Meetings
Meetings Attended
Held
Shri. Ramesh J. 5 1
Aggarwal
Shri. Satish J. Aggarwal 5 5
Shri. Vijay J. Aggarwal 5 2
Shri R.D. Suvarna 5 4
Shri S.K. Jain 5 5
Shri T.B. Subramaniam 5 4
Shri Sanjeev A. 5 4
Aggarwal
Shri. Ashok J. Aggarwal 5 5
Shri Sunil Goyal 5 2
Shri Kunal R. Aggarwal 5 1
Shri Swaminathan
1 -
Sunderajan Mittur*
Shri S.S. Gupta** 1 -
Smt. Monika Seth** 1 -
* Appointed as Additional Director of the Company since 14th
** Resigned as Director of the Company we’ve. 17th
June 2011.
Board Committees
Currently, Four committees have been constituted by the board viz.,
I. Audit Committee
II. Remuneration Committee
III. Shareholders’/Investors’ Grievance Committee
IV. Performance Review Committee
Whether
Attended last
AGM
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
February 2012.

Three of these committees are chaired by Non-Executive/Independent Directors and one
Committee by Executive Director. As on date, the Audit Committee comprises of all
Four Non-Executive Independent Directors. The Remuneration Committee comprises of
three Non-Executive Independent Directors. The Shareholders’/Investors’ Grievance
Committee comprises of two Non-Executive Independent Directors, one Non-Executive
Director and one Executive Director. The Performance Review Committee comprises of
four Directors, of which two are Executive Director and two are Non-Executive
Independent Directors. The Board is responsible for the constituting, assigning, co-opting
and fixing the terms of reference for said Committee(s). Recommendations of the
Committees are submitted to the Board for approval.
The quorum for committee meeting is either two members or one-third of the total
number of members of the committee, whichever is higher. Draft minutes of the
committee meetings is circulated to the members of that committee for their comments
and thereafter, confirmed in its next meeting. The board of directors also takes note of the
minutes of the meetings of the committees, at their board meeting.
Audit Committee
Terms of Reference and Scope
Terms of reference and scope of Audit Committee is wide enough covering all the
matters specified for Audit Committee under Clause 49 of the Listing Agreement. The
terms of reference of the Audit Committee inter alia include following:
1. Provide an open avenue of communication between the independent
auditor and the Board of Directors (“BOD”).
2. Recommending the appointment and removal of statutory auditors,
fixation of audit fees and also to approve the payment for other services.

3.
4.
5.
6.
7.
8.
9.
Meet four times a year or more frequently as circumstances require. The
Audit Committee may ask members of management or others to attend
meetings and provide pertinent information as necessary.
Confirm and assure the independence of the external Auditor.
Review with independent auditor the co-ordination of audit efforts to
assure completeness of coverage, reduction of redundant efforts and the
effective use of all audit resources.
Consider and review with the independent auditor the adequacy of internal
controls including the computerized information system controls and
security.
Reviewing with the management, the quarterly financial statements before
submission to the Board for approval.
Reviewing with the management the annual financial statements before
submission to the Board, focusing primarily on:
(a) Any changes in the accounting policies and practices
(b) The going concern assumption
(c) Compliance with accounting standards
(d) Compliance with stock exchange and legal requirements
concerning financial statements
(e) Significant adjustment arising out of audit
Consider and review with the management and the Independent Auditor:
(a) Significant findings during the year, including the status of
previous audit recommendations,
(b) Any difficulties encountered in the course of audit work including
any restrictions on the scope of activities or access to required
information.
Review of the following information:
10.

(a) Management discussion and analysis of financial condition and
results of operations;
(b) Statement of significant related party transactions submitted by the
management;
(c) Management letters/letters of internal control weaknesses issued
by the Statutory Auditors;
11. Any other terms of references as may be included from time to time in
accordance Clause 49 of the Listing Agreement with the Stock Exchanges.
Primary Objectives of the Audit Committee
As required under Section 292A of the Companies Act, 1956 read with the provisions of
Clause 49 of the Listing Agreement with the Stock Exchanges, the Board has constituted
an Audit Committee. This Committee acts as a link between the Statutory Auditors and
the Board of Directors. It addresses itself to matters pertaining to adequacy of internal
controls, reliability of financial statements and other management information and
adequacy of provisions of liabilities. The primary objective of the Audit Committee is to
monitor and provide effective supervision of the Management’s financial reporting
process with a view to ensure accurate, timely and proper disclosures and the
transparency, integrity and quality of financial reporting.
Composition of the Audit Committee as on March 31st
2012
The Audit Committee is constituted in accordance with the Corporate Governance Code
of the Listing Agreement and the provisions of Section 292A of the Companies Act, 1956
and comprises of all Non-Executive Independent Directors. Shri T.B. Subramaniam, a
Non-Executive Independent Director acts as the Chairman of the Audit Committee. All
the Members of the Audit Committee are financially literate.

The Statutory Auditors are invited to the Audit Committee Meetings whenever required.
The quorum for the Audit Committee Meeting is two members.
The Audit Committee currently comprises of the following Members:
1. Shri T.B. Subramaniam - Chairman (Non-executive Independent Director)
2. Shri Sunil Goyal - Member (Non-executive Independent Director)
3. Shri S.K. Jain - Member (Non-executive Independent Director)
4. Shri R.D. Suvarna - Member (Non-executive Independent Director)
Audit Committee Meetings and Attendance during the financial year ended March 31st
2012:
During the financial year ended March 31st
2012, Five Audit Committee Meetings were
held on May 30th
2011, June 17th
2011, August 12th
2011, November 12th
2011 and
February 14th
2012.
The table hereunder gives the attendance record of Members of the Audit Committee.
Name of the Members No. of Meetings Held No. of Meetings Attended
Shri T.B. Subramaniam 5 4
Shri Sunil Goyal 5 2
Shri S. K. Jain 5 5
Shri R.D. Suvarna 5 4
The Committee has recommended to the Board the appointment of M/s. Mittal &
Associates, Chartered Accountants, as the Statutory and Independent Auditors of the
Company for the Financial Year 2012-13.

Remuneration Committee
The Broad terms of reference of the Remuneration Committee is to ensure that the
remuneration practices of the Company in respect of the Senior Executives including the
Executive Directors are competitive keeping in view prevalent compensation packages so
as to recruit and retain suitable individual(s) in such capacity.
The Committee comprises of the following members: -
1. Shri S.K.Jain - Chairman (Non-executive Independent Director)
2. Shri R. D. Suvarna - Member (Non-executive Independent Director)
3. Shri Sunil Goyal - Member (Non-executive Independent Director)
During the Financial year, 2011-12, no remuneration Committee Meetings was held.
Remuneration Policy
The Company’s remuneration policy is driven by success and performance of the
individual employee/Executive Directors and the Company through its compensation
policy, endeavors to attract, retain, develop and motivate a high performance workforce.
The remuneration structure of the Executive Directors comprises of Salary.
Perquisites and Allowances as decided from time to time subject to all the requisite
approvals. The Non-executive Directors of the Company are paid sitting fees for
attending the meetings of the Board of Directors, Audit Committee and Remuneration
Committee.
The sitting fees for the Board Meeting is Rs. 5000/- and for attending a Committee
Meetings is Rs. 2,500/-
Details of Remuneration/Sitting Fees paid to the Directors for the Financial Year ended
March 31st
2012 is as under:

Name of the Directors
Board Meetings
Shri Ramesh J. Aggarwal -
Shri Satish J. Aggarwal -
Shri Vijay J. Aggarwal -
Shri R.D. Suvarna 20,000
Shri S.K. Jain 25,000
Shri T.B. Subramaniam 20,000
Shri Sanjeev A. Aggarwal -
Shri Ashok J. Aggarwal 25,000
Shri Sunil Goyal 10,000
Shri Kunal R. Aggarwal -
Shri S.S. Gupta *
Smt. Monika Seth* -
Shri Swaminathan
-
Sundararajan Mittur**
Shares held by Non-Executive Director
Name of the Non-Executive Director
Shri Ramesh J. Aggarwal
Shri R.D. Suvarna
Shri S.K. Jain
Shri T.B. Subramaniam
Shri Ashok J. Aggarwal
Shri Sunil Goyal
Shri Kunal R. Aggarwal
Shri Swaminathan Sundararajan Mittur**
Smt. Monika Seth*
Shri S.S. Gupta*
Shareholders’/Investors’ Grievance Committee
Composition
-
-
-
10,000
12,500
10,000
-
-
5,000
-
-
-
-
182749
5000
2500
2500
184079
-
92914
-
-
-
-
26,40,000
26,40,000
-
-
-
24,00,000
-
-
-
-
-
-
Ltd., in Tumkur
Sitting Fees Paid for
Salary & Perks
Committee Meetings
Equity Shares held (No.)

The Shareholders’/Investors’ Grievance Committee currently comprises of the following
Members:
1. Shri S. K. Jain* - Chairman
2. Shri T.B. Subramaniam - Member
3. Shri Vijay J. Aggarwal - Member
4. Shri Ashok J. Aggarwal - Member
Note:
Shareholders’/Investors’ Grievance Committee was reconstituted on induction of Shri S.
K. Jain as a Member and Chairman of the Committee we’ve June 17th
2011 in place of
Shri S. S. Gupta.
Scope of the Shareholders’/investors’ Grievance Committee
The said Committee inter-alia deals with various matters relating to redressal of
Shareholders and Investors complaints like transfer/transmission of shares, non-receipt of
balance sheet, non-receipt of dividends, etc and also recommends measures to improve
the performance of investor services.
Meetings and Attendance
During the year ended March 31st
2012, the Committee met Five times on May 30th
2011,
June 17th
2011, August 12th
2011, November 12th
2011 and February 14th
2012 to take on
record and ratify the Transfer of Shares.

The Attendance record of Members is given in the table here under:
Name of the Shareholders/Investor No. of Meetings attended out
Grievance Committee members of the 5 Meetings held
Shri Vijay J. Aggarwal 5
Shri T.B. Subramaniam 4
Shri Ashok J. Aggarwal 4
Shri S.K. Jain* 3
Shri S.S. Gupta** -
The Committee expresses satisfaction with the Company’s performance in dealing with
investors’ grievances and its share transfer system.
As per the revised Clause 49 of the Listing Agreement and to expedite the process of
share transfers, the Board has delegated the powers of share transfers and related matters
to Shri Ashok Aggarwal and Shri Vijay J. Aggarwal, Members of the committee who
attend to share transfer formalities at least once in a fortnight.
Pursuant to Clause 5A(g) of the Listing Agreement entered into between the Company
and the Stock Exchanges, there are no undelivered/unclaimed shares lying with the
Company.
Shridevi P.G.Centre Tumkur

Details of Shareholders’ complaints received, solved and pending during the Financial
Year ended March 31st
2012:
The total number of complaints received and replied to the satisfaction of the
shareholders during the year ended March 31st
2012 was 1; there were no
pending/unattended complaints as on March 31st
2012.
Pending as on Received Received during Pending as on
Nature of Complaint
01-04-2011 during the year the year 31-03-2012
Stock Exchanges
- Non Receipt of Nil 1 1 Nil
Annual Report
Securities Exchange
Nil Nil Nil Nil
Board of India
Others Nil Nil Nil Nil
Performance Review Committee
Composition
The Company has also set up a Performance Review Committee for periodic review of
operations and formulation of short-term/long-term business strategy.
The said Committee comprises of the following members: -
a. Shri Satish J. Aggarwal - Chairman (Executive Director)
b. Shri Sanjeev A. Aggarwal - Member (Executive Director)
c. Shri Sunil Goyal - Member (Non-Executive Independent Director)
d. Shri T.B. Subramaniam - Member (Non-Executive Independent Director)
Scope of the Performance Review Committee
The said Committee inter-alia, deals with various matters relating to performance of the
Company like operations, future expansion plans etc.
Meetings and Attendance

During the year ended March 31st
2012, no meetings of the said Committee were held.
Annual General Meetings
Details of last three Annual General Meetings are given here under:
Year Date Venue Time
Mirage Hotel, International Airport Approach Road,
2011 24/09/2011 11.30 A.M.
Marol, Andheri (East), Mumbai - 400 059
Mirage Hotel, International Airport Approach Road,
2010 27/09/2010 11.30 A.M.
Marol, Andheri (East), Mumbai - 400 059
Hotel Suba Galaxy, N.S. Phadke Road, Off Western
2009 21/09/2009 Express Highway, Near Andheri East-West Flyover, 11.00 A.M.
Andheri (East), Mumbai - 400 069
Special Resolution
1. At the Annual General Meeting which was held on 24th
September 2011, No
Special Resolution was passed.
2. At the Annual General Meeting which was held on 27th
September 2010, Special
Resolutions were passed for:
i. Re-appointment of Shri Satish J. Aggarwal as the Managing Director of
the Company for a period of three years with effect from 1st
October 2010.
ii. Re-appointment of Shri Sanjeev A. Aggarwal as the Joint Managing
Director of the Company for a period of three years with effect from 1st
October 2010.
iii. Appointment of Shri Vijay J. Aggarwal as the Vice Chairman - 1 and
Whole Time Director of the Company for a period of three years with
effect from 1st
January 2010.
iv. Issue and allotment of 26, 00,000 (Twenty Six Lacks) Optionally Fully
Convertible Warrants on preferential basis in accordance with the
Companies Act, 1956 read with SEBI (Issue of capital and Disclosure
requirements) Regulations, 2009.

v. Issue and allotment of Securities to the Employees and the Directors of the
Company, excluding promoter-Directors under the “Employee Stock
Option Plan - 2010 in accordance with the Companies Act, 1956 read with
SEBI (Employees Stock Option Scheme and Employees Stock Purchase
Scheme) Guidelines, 1999.
3. At the Annual General Meeting which was held on 21st
September 2009, Special
Resolutions was passed for:
i. Increase in number of Directors from 12 to 15 pursuant to the provisions
of Section 259 of the Companies Act 1956, subject to the approval of the
Central Government.
ii. Alteration of the Articles of Association of the Company pursuant to the
provisions of Section 31 of the Companies Act 1956.
Disclosures
(i) Related Party Transactions
There are no transactions of material nature with Directors/Promoters or any related
entity, which will have any potential conflict with the interests of the Company at large.
(ii) Compliances by the Company
There is no non-compliance by the Company or any penalties, strictures imposed by the
Stock Exchange, SEBI or any other statutory authority on any matter related to capital
markets, during the last three years.
(iii) Whistle Blower Policy and Access of personnel to the Audit Committee
The Company has not established the non-mandatory requirement of Whistle Blower
Policy. However, the Company’s personnel have access to the Chairman of the Audit
Committee in cases such as concerns about unethical behavior, frauds and other

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