INTRODUCTION

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

“a series of activities which: first enable working people and their employing organizations to agree
about the objectives and nature of their working relationship and, secondly, ensures that the
agreement is fulfilled"
While Miller (1987) suggests that HRM relates to:
".......those decisions and actions which concern the management of employees at all levels in the
business and which are related to the implementation of strategies directed towards creating and
sustaining competitive advantage"
Pay roll:
In a company, payroll is the sum of all financial records of salaries for an employee, wages,
bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services
they provided during a certain period of time. Payroll plays a major role in a company for several
reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes
considerably affect the net income of most companies and they are subject to laws and regulations
(e.g. in the U.S. payroll is subject to federal and state regulations). From ethics in business
viewpoint payroll is a critical department as employees are responsive to payroll errors and
irregularities: good employee morale requires payroll to be paid timely and accurately. The primary
mission of the payroll department is to ensure that all employees are paid accurately and timely with
the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted
in a timely manner. This includes salary payments, tax withholdings, and deductions from a
paycheck.
Pay Check
A Pay Check is traditionally a paper document issued by an employer to pay an employee
for services rendered. In recent times, the physical paycheck has been increasingly replaced by
electronic direct deposit to bank accounts. Such employees may still receive a complete pay slip
(see below) package, but the attached check is noted as non-negotiable.
In most countries with a developed wire transfer system, using a physical check for paying wages
and salaries has been uncommon for the past several decades. However, vocabulary referring to the
figurative "pay cheque" does exist in some languages, like German (Gehaltsscheck), partially due to
the influence of popular media, but this commonly refers to a pay slip or stub rather than an actual
cheque. Some company payrolls have eliminated both the paper cheque and stub, in which case an
electronic image of the stub is available on an Internet website.

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Payroll taxes
Government agencies at various levels require employers to withhold income taxes from employees'
wages.
In the United States, "payroll taxes" are separate from income taxes, although they are levied on
employers in proportion to salary; the programs they fund include Social Security, and Medicare.
U.S. income and payroll taxes collected through deductions are considered to be trust fund taxes,
because the employer holds the deducted money in trust for later remittance.
Human Resource Management: Objectives
 On an average, every employee at Nutrient undergoes at least 2 training programmers for a
financial year and the employer in HRD requires the executive development programmed
at the time of intensive competition.
 So the study is aimed to know the adequacy of training given to employees and employers.
 To know whether employees and employers are having enthusiasm in knowing about
training and development programmers, training plans, implementation and participation.
 To suggest appropriate techniques and modification in training to achieve corporate goals.
Development to employers arises due to providing technical skills and conceptual skills to
non-technical managers and managerial skills and conceptual skills to technical managers.

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 NEED FOR THE STUDY:
Employee Payroll of the employees is important if the employees are satisfied then only
the organization can function smoothly increases its production, faces competition.
If employees are satisfied with their job they will carry a positive attitude. Hence the
study has been undertaken to assess the employee job Payroll which is necessary for the
organization in order to make sound decisions.
1) To increase productivity.
2) To improve quality.
3) To help a company fulfill its future personnel needs.
4) To improve organizational climate.
5) To improve health & safety.
6) Obsolescence prevention.
7) Personal growth.

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 SCOPE OF THE STUDY
              One of the main functions of personnel management in industrial organization is to
impart programmers to its employees.
                           HRM plays a large part in determining the effectiveness and efficiency of the
establishment. Increase in productivity is possible only when there is an increase in quantity of
output. It applies not only to new employees but also to experienced people. It can help
employees and employers to increase their level of performance and to develop skills, knowledge
on their present job assignments. 

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 OBJECTIVES OF THE STUDY:

• To Analyze the Pay roll System in Dodla Dairy Limited.,

• To ensure effective utilization and maximum development of Employee.
• To ensure reconciliation of individual goals with those of the organization.
• To achieve and maintain high morale among employees.
• To increase to the fullest the employee's job satisfaction and self-actualization.
• To develop and maintain a quality of work life.
• To develop overall personality of each employee in its multidimensional aspect.
• To enhance employee's capabilities to perform the present job.

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 RESEARCH METHODOLOGY
 Research is scientific and systematic search pertinent information in a specific
topic. The meaning of research is “A Careful Investigation (or) Inquiry.

  EMPLOYEE PAYROLL is the corner stone of sound management, and it makes employees
and employers more effective and productive. It is actively and intimately connected with all
personnel and managerial activities.

  There is a present need for EMPLOYEE PAYROLL measures. So that new and changed
techniques may be taken advantage and improvements effected in new methods, which are
woefully inefficient. Training is practical and of vital necessity because, apart from other
advantages mentioned, and increase their “Market Value”, earning power job secure is spending
for EMPLOYEE PAYROLL activities. It is introducing global concepts like
 Team Building
 Time Management
      It uses all the technology available and modern equipment in EMPLOYEE PAYROLL
programmers. In a contemporary study, it was revealed that it is more inflammable so the workers
and superiors must concentrate on the work what they are doing. At any time if they don’t
concentrate on their work it is very dangerous to the whole industry. 

RESEARCH METHODOLOGY
The methodology that is adopted for the study is such that it facilities the data
accumulation. The information is gathered through survey method. The survey method has been
adopted for collecting the data from employees.

 RESEARCH DESIGN:
Research Design is defined as the specification of methods and procedures for acquiring the
information needed. Generally the research design is any of the following three types-
DESCRIPTIVE, EXPLORATORY and CASUAL.
 DESCRIPTIVE STUDY:
Descriptive study/research is marked by the prior formulations of specific research questions. The
investigator already knows a substantial amount about the research problem before the project is
initiated. Hence this is chosen for my research.

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  EXPLORATORY STUDY:
The major purpose of exploratory study is the identification of problem, the more precision
formulation of problem and the formulation of new alternative courses of action.

 CASUAL STUDY:
The study involves the determination of the causes of what the researchers are predicting.
this is mainly a cause and effect study. The research design selected by the researcher in the present
study is “DESCRIPTIVE” in nature.

 RESEARCH INSTRUMENT:
HR research has a one main research instruments in collecting primary data. That is questionnaires.
In order to extract first hand information from the respondents, a pre-tested questionnaire was
prepared and the same was administered to the respondents.

 DATA SOURCES:
Data means a collection of facts in real life statistical data is a collection of facts in numerical
figures. The data sources are usually identified using the type of data needed. There are two types of
data.
1. Primary data
2. Secondary data

 PRIMARY DATA:
The first hand information by the investigator by means of observation face to face questioning,
telephone interview and mailing questionnaire is called primary data.
Primary data consists of original information gathered for a specific purpose.

 SOURCES OF PRIMARY DATA;-

For the purpose of present study, the primary data collected from respondents by contacting them
personally.
 SECONDARY DATA:
Secondary data consists of information that already exists somewhere, having been collected for
another purpose
 SOURCES OF SECONDARY DATA:
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 For the purpose of present study, the secondary data was collected from published data of the
companies. Population is the aggregate of objects animate and in animate, under study in any
statistical investigation. His population for the study here was employees in Met life.

SAMPLING PROCEDURE
With a view to arrive at the sample population for the study, a ”Purposive-Cum convenient
sampling” was followed.

SAMPLE SIZE
The sample size includes 100 employees who are working in the Dodla Dairy Limited.

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 LIMITATIONS OF THE STUDY

The study is limited to the policies and practices being followed in Dodla Dairy Limited get the
complete data, in view of its classified nature of the organization.

 Time factor is the main constraint for the study as it was restricted only to eight-nine weeks.
 Sampling error is not taken into consideration.
 The information given by the sample frame is thought accurate by researcher.
 As the method adopted is Random Sampling, result may not be accurate and believable.
 As the sample size is 100, whole of the facts could not be collected.
 The findings of the study are confined only to the question asked in the questionnaire and
through personal interviews.

The study has been carried in Dodla Dairy Limited only.

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 INDUSTRY PROFILE
DAIRY INDUSTRY IN INDIA

India with 57milions cows and 39miiions buffaloes has the largest population of cattle in
the world. Mild production given employment to 70milion dairy farmers. In terms of the total
nd
production, India ranks 2 to USA with a production of 71 mtons in 1997-97. Milk production
is expected to cross 74m tons in 1998-99, making India the no I milk producing nations in
the world. Although milk production as grown at a fast pace during the last three decades, milk
yield per animals is very low in India at around 1.5Lt.per day. The main reason for the low
yield is lack of use of scientific practices in mulching. Inadequate availability of fodder in all
seasons. Unavailability of veterinary health services.
2.1.1 Operation Flood:

The transition of the Indian milk industry, from a situation of net import to that of surplus
has been led by the efforts of national dairy development board operation flood
programmed under the aegis of the former chairman of the board Dr. Kurien.
Launched in 1970, operation flood has led to the modernization of Indian dairy sector and
created a strong network for procurement processing and distribution of milk has increased
from 132 GM per day in 1950 to over 220GM per day in 1998. The main thrust of operation
flood was to organize dairy co-operatives in the milk-shed areas of the village, and to link them
to the four metro cities, which are the main markets for milk. The efforts undertaken by
NDDB have not only led to enhance production, improvement in methods of processing and
development of a strong marketing network, but have also led to the emergence of dairying as
an important source of the employment and income generation in the rural areas. It has also led
to an improvement in yields, longer location periods, shorter calving intervals, etc., through
the use of modern breeding techniques. Establishment of milk collection centers and chilling
centers has enhanced life of raw milk enabled minimization of wastage due to spoilage of
milk. Operation flood has been one of the world largest dairy development programme and
looking at the success achieved on India by adopting the co-operative route a few other
countries have also replicated the model of India’s white revolution.
Market size for mil sold in loose/package form is estimated to be 33m tons valued at
Rs.429bn. the market is currently growing at round 4.5% pa in volume terms. It is one of
the single largest segments amongst food products.

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 Milk production is largely concentrated in few state namely Uttar Pradesh,
Gujarat, Punjab, Rajasthan and Haryana. Milk production grew by a mere pa between 1947 and
1970 and 1970. Since the early 1970’s under operation flood, production growth increased
significantly averaging over 5% pa.
About 75% of milk is consumed at the household levels, which is not a part of
commercial dairy industry. Milk demand in four large metros is estimated to be 6m liters per day
about 40 % of which is supplied by 10 public sectors/ co-operative dairy plants. The bulk of the
remainders are supplied by the traditional unorganized sector. Loose milk has a larger market
in India as it is perceived to be fresh by most consumers. In reality however, it opposes a
higher risk of adulteration and contamination.
Operation flood achievements

Dairy Co-operatives Progress on Key Parameters during 2005 – 08

State/UT No. of DCS Farmer Women Milk Milk

Andhra Pradesh Organized

4,647 Members
779 Members
144 Procurement
1,087 Marketing
1,130
Assam 66 3 0 3 7
Bihar 5,183 265 39 553 303
Chhattisgarh 526 25 6 26 31
Delhi NA NA NA NA 2,350
Goa 175 19 3 52 90
Gujarat 12,025 2,458 633 6,441 2,353
Haryana 5,382 261 38 405 278
Himachal 391 20 7 25 20
Jharkhand 80 2 0 6 191
Karnataka 10,114 1,838 527 2,961 1,711
Kerala 3,282 750 132 764 848
Madhya Pradesh 5,008 246 37 457 315
Maharashtra 19,537 1,637 398 2,802 2,749
Nagaland 78 3 0 4 4
Orissa 2,164 142 60 203 158
Pondicherry 104 36 16 57 70
Punjab 6,749 405 50 784 526

Rajasthan 12,714 594 152 1,557 1,014

Sikkim 209 7 0 8 8

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 Tamil Nadu 7,832 1,876 639 2,085 1,507
Tripura 84 4 1 3 9
Uttar Pradesh 18,776 861 246 828 430
West Bengal 2,449 185 65 336 706
ALL-INDIA 117,575 12,416 3,194 21,447 16,808

2.2 MARKET SIZE AND GROWTH:

Market size for milk(sold in loose/package form) is estimated to be 33m tons valued at
Rs.429bn.the market is currently growing at round 4.5% pa In volume terms. It is one of
the single segments amongst food products.
Milk production is largely concentrated in few states namely Uttar Pradesh, Gujarat, Punjab,
Rajasthan and Haryana. Milk Production grew by a mere 1% pa. Between 1947 and a970. Since
the early 70’s under operation Flood, production growth increased significantly averaging
over 5%pa.

2.3 MAJOR PLAYERS:

The packed segment milk segment dominated by the dairy co-operatives. Gujarat co-
operative milk marketing federation(GCMMF) is the largest players. All other local dairy co-
operatives have their local brands(forEg. Goku,Varanasi in Maharashtra, Saras in Rajasthan,
Punjab, Dodla Dairy Limited in Telangana, Aavin in Tamil Nadu etc.).Other privative players
Include J K Dairy, heritage foods, Indiana Dairy, Dairy specialties etc. am rut Industries, Once
a leading players in the sector has turned bankrupt and is facing Liquidation.
The dairy industry was delicensed in 1991 with a view to encourage private investment and
flow of capital and new technology in the segment. The government promulgate the
MMPO(Milk and Milk Products Order)in 1992.MMPO prescribe state registration to plants
producing Between 10000 to 75000 liters of milk per day or manufacturing milk
products Containing between 500 to 3750 tones of milk solids per year. Plants producing
over 75000 liters per day or more that 3750 tones per year on milk solids have To be registered
with the central Government. The stringent regulations, Government controls and licensing
requirements for new capacities have Restricted large Indian and MNC players from
making significant investment in this product category. Most of the private sector

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players have restricted themselves to manufacture of value added milk products like baby
food, dairy whiteners, condensed milk etc.

2.4 INDIA WORLD’S LARGEST MILK PRODUCER:

India has become the world’s No.1 milk producing country, with output In 1999-

2000(marketing year ending March 2000) forecasting at 78 million tones. United States, where
the milk production is anticipated to grow only Marginally at 71 million tones, occupied the top
slot till 1997. In the year 1997, India’s milk production was on par with the U.S at 71 million
tones. The worlds milk production in 1998 at 557 million tons would continue the steady progress
In recent year further more, the annual rate of growth in milk Production in India is between 5-6
percent, against the worlds at 1 percent. The Steep rise in the growth pattern ahs attributed to a
sustained expansion in Domestic demand, although per capita consumption is modest at 70kg of
milk Equivalent.

ANNUAL MILK PRODUCTION HAS TREBLED:

India’s annual milk production has more than trebled in the last 30 years, rising from 21
milling tones in 1968 to an anticipated 80 million tones in 2001. this raped growth and
modernization is largely credited to the contribution of dairy co-operatives, under the operation
flood(of) project assisted by many multilateral agencies, including the European union, the world
bank, FAO and WFP(world food program’). In the Indian context of poverty and malnutrition.
Milk has a special role to play for its many nutritional advantages as well as providing
supplementary income to some 71 million farmers in over 500,000 remote villages.

2.4.1 Indian Dairy: Expanding Daily:

India’s modern dairy sector has expanded rapidly. From an insignificant 200,000
liters per day (lpd) of milk being processed in 1951, the organized sector is presently handling
some 20 million lpd in over 400 dairy plants. Already, one of the world’s largest liquid milk
plants is located in Delhi, handling over 800,000 liters of milk per day(Mohter Dairy, Delhi).
India’s first automated dairy (capacity: 1 million lpd)- Mother Dairy, Gandhi agar has been
established at Gandhinagar near Ahmedabad, Gujarat, in Western India. India’s biggest
dairy co-operative group, Gujarat Co-operative Milk Marketing Federation (FCMMF) in Anand,
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owns id with an annual turnover in excess of Rs. 23 billion (US$500 million). Amul - III with
its satellite dairies, with total installed capacity of 1.5 million lpd has also been commissioned.
India’s first vertical dairy (capacity:400,000 lpd), owned by the pradeshik cooperative Dairy
federation (PCDF) has been commissioned at Nodia, outside Delhi.

The winning Edge:

A vast market for dairy products is being built as disposable incomes increase. Its
focus is the increasingly affluent middle class, numbering some 300 million almost the
population of the United States – which is confined to well - defined urban pockets and is
easily accessible. Milk occupies pride of place as the most coveted food in the Indian diet, after
wheat and rice. Milk based sweets are a culinary delight in all homes throughout the year.
The preferred dairy animal is the buffalo. Some 65 percent of the world buffalo milk is
produced in India. It has 30 per cent higher total solids compared to cow milk - an average
of 16% vs. 12% for cow milk. Valued for its high fat content (7% vs. 3.5%), it is also high
in calcium, phosphorus, lactose and proteins, buffalo milk is the delight of the milk processor
for its more profitable handling.
Table 2.2

World’s Top Milk Producers:

Countries 1998 1997 1996

India 74 71 68
United States 71 71 70
Russian Federation 33 34 36
Pakistan 22 21 20
Brazil 22 21 19
Ukraine 14 15 16
Poland 12 12 11
New Zealand 12 11 10
Australia 10 9 9
EC 125 125 125
World(includes others) 557 549 542
2.5 EXPORT POTENTIAL:

India Has The Potential to Become One Of The Leading Players In Milk Product Exports.
Location Advantages: India is located admit major milk deficit countries in Asia and
Africa. Major importers of milk and milk products are Bangladesh, China, Hong Kong,
Singapore, Thailand, Malaysia, Philippines, Japan, UAE, Oman and other Gulf countries, all
located close to India.

Low cost production: Milk production is scale insensitive and labour intensive. Due to low
labour cost, cost of production of milk is significantly lower in India.

Concerns in export competitiveness are:

2.5.1 Quality: Significant investment has to be made in milk procurement, equipments, chilling
and refrigeration facilities. Also, training has to be imparted to improve the quality to bring it
up to international standards.

2.5.2 Productivity: To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle. There is a vast
market for the export of traditional milk products such as ghee, shrikhand, rasgolas and other
ethnic sweets to the large number of Indians scattered all over the world.

INDIAN TRADITIONAL MILK PRODUCTS

There are a large variety of traditional Indian milk products such as Makkhan unsalted butter.
Ghee - Butter oil prepared by heat clarification, for longer shelf-
life. Kheer - A sweet mix of boiled milk, sugar and rice.
Basundi - Milk and sugar boiled down till it
thickness. Dahi - A type of curd.
Lassi - Curd mixed with water and sugar /salt.
Channa / Panner - Milk mixed with lactic acid to
coagulate.
Khoa - Evaporated milk, used as a base to produce sweet meats.
 The market for indigenous based milk food products is difficult to estimate as most
of these products are manufactured at home or in small cottage industries catering to local areas.
Customers while purchasing dairy products look for freshness, quality, taste and texture, variety
and convenience. Products like Dahi and sweets like Kheer, Basundi, and Rabri are perishable
products with shelf life of less than a day. These are several such small shops within the
vicinity of residential areas. Consistent quality, taste and freshness build consumerloyality.
There are several sweetmeat shops, which have build a strong brand franchise, and have
several branches located in various parts of a city.

DAIRY DEVELOPMENT:

In 1960 pilot milk supply scheme was stared in the state for the dairy development. Its initial
capacity was 100 liters a day at the time of starting. Now it’s daily collection increased to
11 lakhs liters per day. It is also working as alien between milk producers of the towns by
providing reasonable price to the producers to maintain stable market.

OPERATION FLOOD:

In our state operation Flood was divide into three based as “Anand
Level”

 Village
Level

 District
Level

 State
Level

OPERATIONAL FLOOD PROGRAM:

INDIAN dairy development Co-operation owns the responsibility of implementation of

operation flood program, which provides money assistance up to 70% towards loan and 30% as
subsidy. National Dairy Development Co-operation selected Districts of the State for
implementation of operation flood. It divided the districts into 10 milk collection mandals.
Districts selected under operation flood ograms:

Name of the District Mandal

1. Srikakulam Visakha
2. Dodla Dairy Limited, nagaram Visakha
3. Visakhapatnam Visakha
4. East Godavari Godavari
5. West Godavari Godavari
6. Krishna Krishna
7. Guntur Guntur
8. Prakasam Prakasam
9. Chittor Chittor
10. Cuddapah Cuddapah
11.Kurnool Kurnool
12. Medak Medak
13. Nizamabad Nizamabad
14. Nalgonda Nalgonda

TABLE 2.5

DETAILS OF INSTALLED PROCESSING CAPACITIES

Capacities in 1000Lts. Or KGs. Per day

S.No Name of the Cheese Liquid Milk Powder Butter Ghee U.H.T
Dairy Processing Mfg Mfg Mfg Milk Lt/d
1 Visakha Dairy 300 13 8 50
2 Rajahmundry 150 4
3 Dodla Dairy Limited, 250 22 12 25
4 Ongole Dairy 300 30 8 10
5 Nellore Dairy 75 4
6 Chittor MPF 200 14 8
7 Nandyal MPF 150 10 4
8 Hyderabad 250 12 8 30
9 Mother Dairy 200 4 4

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 10 Other Dairies 249
The table shows details of installed capacities of various dairies in Andhra Pradesh. In liquid
milk processing Visakha Dairy and Ongole Dairy and top with 3,00,000 Lts. Per day
processing capacity and it is followed by Dodla Dairy Limited Milk products factory and
Hyderabad milk products factory with 2,50,000 Lts per day in powder manufacturing
Ongole dairy is having processing capacity with 30,000 kgs per day and it is followed by
Dodla Dairy Limited milk products factory with 22,000 kgs. Per day with regard to better
manufacturing there are only two dairies i.e., Ongole and Mother Dairy Hayathanagar with
8,000 kgs and respectively. Ghee manufacturing capacity is high in Dodla Dairy Limited milk
processing there are only 3 dairies, Visakha Dairy is having high processing capacity with
50,000 Lts. per day followed Dodla Dairy Limited milk products factory. Cheese is
manufactured only by Chittor factory with a processing capacity of 3,000 kgs a day
TABLE 2.6: Details Of Milk Production sectors in A.P.
Number Of Co-operative Societies 4857
Number Of Other Centers 4297
Total Collection Centers 9154
Number Of Milk Procurement Routes Villages 10,249
Producers 886,800
Number Of Milk Chilling Centers 67
Number Of District Dairies 9
Number Of Milk Powder Plants 7
Number Of Cattle feed Plants 8
THE KDM PRODUCERS CO-OPERATIVE UNION LIMITED
1. Number of village covered 815
2.Number of cooperative societies 534
3.Number of milk routes 35
4.Number of chilling centers 6
5.Number of feed mixing plants 2
6.Milk products factory area 27.3 acres
7.Value of factory building Rs 120 lakhs
8.UNICEF aided equipment value Rs.57 lakhs
9. Value of other buildings and investment Rs.270 lakhs
10. Date of commissioning of milk products 11.4.1969

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11.Total Staff 1854
12.Date of formation of union 6.7.1983
13.Date of transfer of management of union 8.2.1985

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 COMPANY PROFILE

Dodla Dairy Limited is a Public Limited Company having its Head Quarters at Hyderabad
City of Telangana State. The company is established by a well-known family of Nellore district of
Andhra Pradesh in the year 1998. The company procures, process and sells milk and milk
products across 66 places in India.

Dodla Dairy is an ISO 22000: 2005 and ISO 50001:2011 (EnMS) Certified Organization.
The company is having 9 state of art technology Processing Plants, 30 chilling centres, 20 Bulk
Milk Chillers and 23 Associate Chilling Centers. The company has a wide distribution network
across pan India. The products and services are offered through 16 Sales offices.

The company offers wide range of Milk Products Comprising of Fresh Milk, Butter, Ghee,
Paneer, Curd, Flavoured Milk, Doodh Peda, Ice Cream and Skimmed Milk Powder. These
products are conveniently packed to suit various needs of consumers. The company grew rapidly
during the past one and half decades. Today it is one of the popular dairy companies in India. The
consistent growth of the organization reflects the customer confidence on the products and
services offered.

The company has gained the competitive advantage over the other players by delivering
the highest quality dairy products to the consumers. Now, the company is prepared to face the
future challenges by upgrading its systems and infusing new technology.

Directors
Mr. D.Sunil Reddy is the Managing Director of the company who is hailing from a philanthropic
family called DODLA of Nellore town,Andhra Pradesh,India. He is a graduate in Industrial
Engineering from Mangalore University. He was in Construction and Agro Products Export
business for about 6 years. Envisaging the need for high quality Milk & Milk Products in the
Urban Market, he entered into the Dairy Industry in the year 1995. During initial stages his
agricultural background helped to establish the roots of the company at various locations.
Mr.Reddy's family also involved in the veterinary research activities at USA.

He is actively involved in leading and directing the company towards new technology, systems
and finding new avenues for growth. He is providing the resources needed for transformation of

21
ideas into reality. He takes the strategic decisions for the sustenance and growth of the company.

Mr. D. Sesha Reddy an Arts Graduate from Osmania University is the Chairman of the
Company. He is having more than 40 years of industrial experience in the capacity as Managing
Director and Director in different industrial facets like Paper, construction, Software and
Castings. Presently he is involved in guiding and mentoring the top executives of the company.

Mr.Deepak Malik is the Director of the company. Mr.Malik joined Black River, an
independently managed subsidiary of Cargill, in 2007.
Mr. Malik has been with Cargill since 1995. Prior to Black River, he was a co-founder and
Managing Director of Cargill Ventures. Prior to Cargill Ventures, Mr. Malik worked in Cargill's
Strategy and Business Development Group, where he managed corporate strategies and mergers
and acquisitions within the petroleum, natural gas, coffee, grain and oilseeds, and meat industries.
Mr. Malik also spent one year in international sales for Cargill's fertilizer division. Mr. Malik
relocated to New Delhi, India in 2006 to provide regional oversight of several cross-border
investments. Previously, he worked with the JMA Group managing distribution operations,
principally motor parts and accessories for Telco (Tata Group) heavy vehicles.
Mr. Malik holds a Bachelor's degree in Economics from Delhi University, a Master's degree in
Economics from the Delhi School of Economics and an MBA from Cornell University. Mr. Malik
speaks English, Hindi and Punjabi.

Mr.Jim Sayre is the Director of the company. Mr.Jim Sayre joined Black River, an
independently managed subsidiary of Cargill, in 2007.
Mr. Sayre has been with Cargill since 1994. Prior to Black River he served as president and
founder of Cargill Ventures, a proprietary fund with $200 million in capital deployed across a 40-
company portfolio. Prior to Cargill Ventures, Mr. Sayre was Director for global mergers and
acquisitions at Cargill. Previously, Mr. Sayre worked as a Senior Manager for Deloitte Consulting
and held a position with the United States Department of Agriculture.
Mr. Sayre holds a Master of Business Administration from Harvard Business School and a
Bachelor of Arts from the University of California at Davis.

Team
Chief Executive Officer
(C.E.O)

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Mr. B. V. K. Reddy sets overall direction and leads the Dodla Dairy Ltd's management team in
all aspects of company's operations in India as well as abroad. With the MD & board of directors
he also plays a key role in seeing the strategies of the company. He is focused on enhancing
Dodla's inherent strengths and securing future growth for the company through people, product,
market & capacity expansions. He has been instrumental in driving company's operations and
chief architect of the company's exceptional growth in the recent years.BVK Reddy joined Dodla
in 1997,bringing with him extensive experience from across the dairy industry. BVK has 30 years
experience in the dairy industry in a variety of roles including general management, operations,
supply chain, sales, marketing as well as dairy farmer interfacing. He was previously associated
with Amul Dairy and Premier Industries Ltd.
B V K Reddy is a B.Tech - Dairy Technologist from Osmania University in the year 1985. During
his professional tenure he also underwent various management and global leadership programs
offered by leading business schools such as Cornell University & Indian School of Business. He
travels across the world to remain updated on all latest developments in the global dairy sector.
He is well networked with various national and international dairy /Veterinary Institutions as well
as Secretary of Indian Dairy Association, Telangana Chapter.

Head - Procurement (Milk)

Mr. V. S. R. Krishna Reddy is a Commerce graduate from Acharya Nagarjuna University. He
has more than 35 Years of experience in the field of Procurement of milk and animal husbandry
activities. He is instrumental in building the Milk Procurement activities systematically in the
organisation. He played a vital role in bridging the gap between the company and the milk
producers by establishing direct collection centres at the village level.He was associated with
National Dairy Development Board (NDDB) before joining us.

Head - Human Resources & Admin

Mr. A. Madhusudhana Reddy is playing key role in bringing the talent pool into the
organization and developing a value based culture in the organisation. He handles the Statutory
compliance, Legal affairs and Public relations of the organization. Mr. Reddy is leading the SOPs
implementation initiative. He plays a vital role in the acquisition of new process facilities and
lands. His current focus is on HR Automation and PMS in the company. Mr. Reddy is a law
graduate from SV university and holds PGDM in HR & IR from Pondicherry university and SV
university respectively.Has over 24 years of experience in HR, statutory compliance,
Administration and legal affairs. He is a life member of NHRD, Hyderabad chapter.

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Head - Materials
Mr. S. David Raj is a Graduate in Economics with PG Diploma in Material Management with
over 34 years of experience in handling the Inventory and Purchase Management Functions. He
has established the Standards for the Materials purchase and inventory controls in a systematic
way. Prior to this company he was associated with Amul Dairy and HFL.

Head - Marketing (Bi- Products)

Mr. T. Rama Krishnan is commerce graduate with more than 30 years in Sales & Marketing of
FMCG products. He is playing key role in expansion of product sales activities in the northern
parts of India.Currently he is working on business expansion in the uncovered states. Previously
he was associated with HLL and Emami Limited.

Head - Quality Assurance

Mr. Sebastian Joseph is a Post graduate in Engineering from IIT Kharagpur with more than 26
years of experience in Quality Assurance and project Management functions. He is involved in
implementation of Food Safety systems like ISO:22000 and EnMS:50001 in the organization.
Previously he was associated with the National Dairy Development Board(NDDB).

Our Values
We give top most priority to the Dignity of Labour & Moral Values.

24
Our values are commitment, sincerity, hard work, transparency, integrity and honesty. These
values are our "CORE" and we will display them in all our actions. We believe in the best quality
right from Raw Material to Processing, Processing to Distribution and Management of People.
We are Prudent in guarding and conserving our resources effectively.

Products
 Milk
 Curd
 Ghee
 Paneer
 Doodh Peda
 Butter Milk
 Flavoured Milk
 Cooking Butter

Dodla Milk
Dodla Dairy has over one and half decade expertise in collection and processing of the
milk. The fresh milk from the Buffalos and cows brought to the nearest chilling centres and then
to the processing Plants with in a stipulated time period without breaking the cold chain. The
chilled milk will be pasteurized at the processing factories. This process will kill a pathogenic
microbe that causes spoilage of milk. It also kills harmful bacteria like Salmonella,
Staphylococcus, Listeria, Yersinia, Campylobacter and Escherichia etc. Pasteurization can
prevent diseases including Tuberculosis, Brucellosis, Diphtheria, Scarlet Fever and Q-Fever etc.
After the completion of serial process the milk will be safe for human consumption.

The company offers different types of milk variants as per customer requirements like Full Cream
Milk, Toned Milk and Double toned milk, standardized milk etc. The customer can choose
between Cow & Buffalo milk as per their taste and habits.
Children upto the age of 10 years need Calcium, Potassium, Fiber and Vitamins. The cow's milk
will improve the levels of Vitamin-D. A research conducted in Toronto stated that, children
drinking only non-cow's milk were more than twice as likely to be Vitamin-D deficient as
children drinking only cow's milk.
Dodla milk is packed in high quality food grade pouches. These pouches are user friendly to the
 consumers. The product undergoes stringent quality checks before packing. Every time you buy a
pouch of Dodla milk, you are assured of fresh flavour, taste and nutritional value.

Dodla Curd
Curd is a natural dairy product made out of Milk. It is rich in calcium and is good for
digestion. The Dodla curd is made out of good milk from the best country buffalos and cows. The
product is made by using high quality Culture. Milk is fermented with lactic acid present in curd
under low temperatures (optimum 69 degrees F).
Dodla curd is available both in sachets and enclosed containers with good taste and
thickness. Dodla curd bears the un-compromised dairy expertise. A family consuming Dodla curd
daily stays healthy. The Dodla Curd is Packed in 200 Grams Food grade poly cups and sachets.
The Cup curd is Packed in disposable food grade cups. The curd pack variants are
available in 100 and 200 grams. Dodla Curd is available in all supermarkets like Big bazaar, Food
World / Reliance Fresh, D Mart etc. Also, the products are available with local milk vendors in all
towns and cities of south India.

Benefits Of Curd
 Low fat or skimmed curd is good for people who are suffering from higher levels of cholesterol as
the fats are removed through processing.
 Those, who are lactose-intolerant, can consume curd, as bacteria present in it break down the
lactose, before it enters your body.
 The bacteria in curd can help digest food and thus check the problem of stomach infection.
 Studies have suggested that consumption of curd might help reduce the risk of high blood
pressure.
 Being rich in calcium, curd is good for the health of bones as well as the teeth.
 Eating curd on a regular basis can help you absorb the nutrients in other foods as well.

Dodla Ghee
Dodla Ghee is made from Buffalo and Cow Fat. This is made by simmering unsalted butter in a
large pot until all water has been boiled and protein has been settled at the bottom. The cooked
and clarified butter is then spooned off to avoid disturbing the milk solids on the bottom of the
pan. Dodla Ghee is made without adding any preservatives or chemicals. The natural Aroma is
the main feature for its success in the Ghee market. Ghee lover's first choice is Dodla ghee.
Ghee is used in almost all varieties of Indian sweets. It is observed that, in case of sweets made
out of ghee, the flavour, aroma and taste obtained is entirely different when compared to sweets
made without ghee.

Dodla Paneer

Dodla Paneer is an unaged, acid-set, non-melting farmer cheese made by curdling heated milk
with food acid. We usually find Paneer pressed into a cube and then sliced or chopped.
Paneer is one of the few types of cheese indigenous to the Indian sub-continent, and is
widely used in Indian cuisine and even some Middle Eastern and Southeast Asian cuisine. Paneer
is completely Lacto-Vegetarian. Paneer is a source of protein for vegetarians. Paneer is a taste
adding agent to many dishes in the modern world.
Dodla Paneer contains less moisture, It has got separate segment of buyers due to its good
taste and quality.

Dodla Doodh Peda

Doodh Peda is a Delicious sweet made from pure Buffalo Milk. The granule texture and mouth-
watering taste is assured. Doodh Peda is packed specially to retain the Freshness and Natural
flavour.
The product is available in the following
pack sizes.
 20 Grams
 200 Grams
 500 Grams

Dodla Butter Milk

During hot sunny days, due to high temperature people will get exhausted very fast. To revive our
vitality and energy we require natural drink like butter milk. Dodla Butter Milk can meet your
requirement. It has been introduced after conducting a research about our body requirement
during the summer. Buttermilk is a product of mixture of curd, water, salt, ginger, green chillies,
coriander and curry leaves.
The product is packed in 'Food Grade Pouch Film' which is available in 200 ML packs only.

Beware of Artificial / Duplicate

Nowadays, most of the commercial milk dairies are using lactic acid bacterium culture to
pasteurized sweet whole milk or, more commonly skim milk or non-fat milk. They may or may
not have added butter flecks. After the addition of the culture, the milk is left to ferment for 12 to
14 hours at a low temperature (optimum 69 degrees F). It is usually labelled cultured buttermilk
and may be salted or unsalted. So, for the customers who are under sodium restricted diet, it is
better to check the label well before you buy the buttermilk as it may be a salted one or unsalted.
Buttermilk has lower fat than any other regular milk, because the fat has been removed to make
butter. It is also high in potassium, vitamin B12, calcium, and riboflavin as well as a good source
of phosphorus. Those with digestive problems are often advised to drink buttermilk rather than
milk, as it is more quickly digested. Buttermilk has more lactic acid than skimmed milk.
Dodla Flavoured Milk

Dodla flavoured milk , an emerging health drink that will refresh your senses. The product is
treated at high temperatures (UHT) and packed aseptically to ensure high quality and purity.

Natural Flavours from Dodla

 Vanilla
 Elaichi
 Pista
 Badam
 Chocolate
 Strawberry

The flavoured milk is tastier and healthier. The drink is available in various flavours and is quite
colourful. So it would make the viewer to taste it. The good part is that without their conscious
knowledge consumer is taking milk. This milk sounds good especially for the consumers who do
not like milk.
Dodla Cooking Butter
Dodla Butter is made from the fat of cows' and buffaloes' milk. It's not pure fat. However, only
about 80 percent of ordinary butter is fat. The remaining 20 percent is made up of milk solids and
water.

No other product can come close to Dodla butter because of its rich, creamy mouth feel
and its sublime flavour. Butter is preferred fat being used in every preparation in the culinary arts.
Many consumers prefer having it plain i.e. without being served in a dish. Dodla butter is
prepared in two types. One is salted and the other is unsalted. Most of the consumers prefer salted
as it gives good taste with the bread.

Dodla Butter is available in three variants are

 White Butter (made from Buffalo Milk)

 Table Butter (made from Cow Milk)
 Yellow Butter (made from Cow Milk)Dodla Dairy Sales

Dodla Dairy's Milk products are available in Andhra Pradesh, Telenagana, Tamil Nadu,
Karnataka,Maharashtra,Madhya Pradesh, Rajasthan, Gujarat and West Bengal states. Dodla Dairy
has ultra-modern transportation facilities to ensure the freshness of milk products till it reaches
the customer door step. At present the total liquid milk sale is more than 9 Lakh Liters and 6
Tonns of Milk Products per day. The Company has established more than 3000 dealer network
for liquid Milk.

The Company has a wide network of more than 450 distributors and 14000 outlets across India
for Milk Products. The Products are also available at modern trade outlets like Reliance and Food
world etc.. Also the company has established exclusive parlors at various Cities and Towns of
south India.
Our Plants

 Nellore
 Badvel
 Koppal
 Kurnool
 Palamaner
 Penumur
 Sattenapally
 Tumkur
 Tanuku

Our Packing Stations

At present the company is having nine(9) milk processing and packaging plants spread across
various places in Telangana, Andhra Pradesh and Karnataka states. The unit locations are Nellore,
Palamaneru, Penumuru, Sattenapally, Badvel, Kurnool, Tanuku, Koppal and Tumkur. Also there
is a Skimmed Milk Powder (SMP) manufacturing unit at Nellore, Andhra Pradesh State. The
combined total capacity of all the 10 (Including SMP plant) processing and packaging plants
is 12 lakh litres per day.

Safety Standards

All the products are conveniently packed in different pack sizes and types to suit various
needs of consumers .

ISO Approvals

Dodla Dairy is an ISO 22000 : 2005 and ISO 50001:2011 (EnMS) Certified Organization.

Premium Quality

We source the milk from farmers by deploying milk analyzers to ensure quality and food
safety.

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 THEORITICAL FRAMEWORK

Harry S. Truman said “Actions are the seed of fate deeds grow into destiny”, similarly the tasks
performed by an employee gets billed as a salary which an organization pay through the payroll
system. This is processed every month towards the last week to disburse the salaries. The
process includes managing large number of data generated through the attendance and other
inclusions. This process entails payouts post the standard deductions and reimbursements. This
system includes certain common functionality which includes the areas as discussed below:

 New employee inclusion: When a new employee joins an organization Inputs including
salary details, reimbursements, statutory deductions, benefit enrollment and many such
information are filled in the ERP System from which the payroll data are collected. This
information is provided gets stored in the ERP system which is connected to the
company database.

 Tax declaration form: The tax gets deduced as per the government guidelines. Hence,
an internal tax declaration form is filled and provided by the employee supported with
the documents to suffice for tax rebates. These include rent agreement, to claim the
HRA, investment in Saving Schemes offering tax saving, Home loans etc. Different
accounting cycles may have its own time to consider this. Such as, in certain
organization, the tax declaration is taken in the beginning of the employment and
rebates are offered. At the end of the accounting year the supporting documents such as
Medical bills would be required to validate the information provided by the employee at
the beginning of the financial year. If those documents are not provided by the
employee, yearly tax deduction would be made.

 Attendance data – This datum is collected from the attendance system. If, there are any
gaps in the data, it requires to be cross checked with the reporting leaders, to avoid
errors. Late comings and early leaving are two areas which are calculated. These
deductions are to be made as a part of penalty. Prolonged vacation and sabbaticals are
verified as the employee may have left the organization. Off site deputation may have a
separate process for calculating the attendance. Here the report might be drawn from the
client’s feedback and system of data collection from the client’s site. Maternity or any

35
 other medical leaves are calculated as reported on prorated basis. In case they were
approved by the leader, the leave balance would be allocated avoiding any deduction in
the salary. In case the leave balances have refurbished, the deduction in the salary may
be reconsidered on the approval of the leader.

 Reimbursement for late working: Certain business situation may entail high work
volume or even a high priority task to be delivered at a short notice. These situations
may require employees to work beyond their normal working hours. Legal standards
direct on how the extra hours should be designed. Hence, any additional pay to be made
along with any reimbursement for working late and providing additional support
requires to be included in the payroll sheet.

 Other Reimbursements- These are paid on submission of bills with the approval of the
reporting manager or the decision making authority. It includes maintenance areas such
as Car, mobile phone, etc. The eligibility to such a reimbursement is defined in the
policy. The calculation remains to the grid as defined in the policy. Such as a manager
may be eligible for a petrol reimburse of Rs. 5000 a month where as a Senior Manager
or a Assistance Vice-President may be eligible for Rs.11000 or more. The total amount
would be paid if the supporting bills are provided to the accounts team processing
payroll. If it is not provided, there might be a tax deduction on them.

 Other Benefit payment – Every role would include certain benefits such as car ,
accommodation, fees for first two children depending on the grade  and level. Every
employee may not have this privilege. It is offered at a senior level which would require
the employee to submit the bills to be reimbursed as tax free amount. The scope of error
lies in miscalculations of data from the bills and excess taxing. Any submission of bills
makes the amount non-taxable to the employee. Yet it may get taxed by error.

 Shift allowances - This is offered to the employees who have been working in different
shifts other than the normal working hours. The working hour policy defines the time
line and eligibility to such payouts. The confirmation to this payout comes from the
reporting managers. The scope for errors lies in receiving and providing the data
accurately in the payroll sheet.

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  Pay for performance – This is performance incentives are disbursed for the achieving
the targets as agreed in the scorecard. The pay on performance grades are announced.
The reporting managers provide this input to the payroll generating team.
 Insurance intimation for new employees – Organization offer different insurance
including mediclaim and accident insurance. These require to be started when a new
employee joins the company. These programs are reinstated every financial year for the
employees in the payroll of the company. The monthly payroll includes this datum as it
is a payout that may not reflect in the salary slip. Yet few companies allow the
employees to avail extra coverage on a payment made by the employee over and above
what is made by the employer. On such an event, the deduction is made from the salary
every month for that employee.

 Stop payment – Organization have a policy to initiate a stop payment for the employee
who resigns and would be leaving the company. As defined in the exit policy, the notice
period starts from the day an employee resigns. It may be for a month or more than that
up to three months.  The stop payment is initiated on the last month, where the
employee would not receive the salary at the end of the month but with the full and final
settlement. Ideally this helps to calculate the clearance as there might be dues to be
cleared by the employee . The stop payment initiation is made by the HR team, where
an email including a request to stop the payment of the employee is send to the accounts
department who would process payroll. Generally HR Team initiates this when the
reporting manager of an employee mails the resignation acceptance by the employee.

 Full and final settlement: When an employee leaves an organization, the process of
clearance includes calculating all the number of  holidays that are not availed . These
required to be reimbursed calculating it from the basic salary for those days. The
salaries of the months that was freezed as a result of resignation, any bonus to be paid
and every other payment to be made at the time of separation.

 Deductions: Statutory requirements share a guideline on how the deduction should be

made from the salary. The Any deduction due to a loan or loss of pay

The complexity of this process increase with the volume it manages and processes it follows.
The scope of error lies in miscalculation, duplication, missing the due dates resulting in

37
incorrect disbursement. If this process is outsourced to vendors, it’s important to check if the
vendor would have the bandwidth to align with the changing organizational structures or
business model. If there are  series of mergers and acquisitions are planned by the organization
, the vendor should be able to accommodate it.
Few of the performance Indicators to the payroll process have been shared below:
 How timely has it been process -The payment needs to be rolled out timely every
month without any non-adherence to the service level agreement. The salaries have an
indelible effect on the employees. Any delay would affect the morale. Hence,
organizations follow stringent rules to ensure the payment is made on time.

 How accurately the data was provided – The data provided to the payroll sheet after
the assimilation and final calculation remains the final input for the payouts. Incase
these inputs are made inaccurately; it causes a massive impact in the salary disbursed.
Any inaccurate salary disbursement is taken as non-adherence to the policy. The
inaccuracy may range from incorrect data for employee ids to reimbursement. The
corrections can be made during the next month’s payroll but requires a lot of validation
creating unnecessary hassles and bottlenecks.

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

 Time within which the data need to be provided- If the data required to run the
payroll gets delayed, it creates a bottleneck for the final calculation. This is often
mitigated by keeping the deadline way ahead of the payroll time. The cost incurred for
this error, needs to be calculated on the time taken by the supervisor who was
responsible for the input.

Finally this process may not appear to be a month long just as other ongoing processes are. Yet
there are areas of this process which keeps working even when the payroll is not been run. The
errors and risks to this process can be well mitigated and countered when identified ahead of
time. This process remains a vital as the employees who are most valuable assets to any
company gets paid through it. Just as John Maynard Keynes noted that” The social object of

38
skilled investment should be to defeat the dark forces of time and ignorance which envelop our
future”.

In a company, payroll is the sum of all financial records of salaries for an employee,
wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees
for services they provided during a certain period of time. Payroll plays a major role in a
company for several reasons. From an accounting point of view, payroll is crucial because
payroll and payroll taxes considerably affect the net income of most companies and they are
subject to laws and regulations (e.g. in the U.S. payroll is subject to federal and state
regulations). From ethics in business viewpoint payroll is a critical department as employees
are responsive to payroll errors and irregularities: good employee morale requires payroll to be
paid timely and accurately. The primary mission of the payroll department is to ensure that all
employees are paid accurately and timely with the correct withholdings and deductions, and to
ensure the withholdings and deductions are remitted in a timely manner. This includes salary
payments, tax withholdings, and deductions from a paycheck.

Pay Cheque
A Pay cheque is traditionally a paper document issued by an employer to pay an employee for
services rendered. In recent times, the physical pay cheque has been increasingly replaced by
electronic direct deposit to bank accounts. Such employees may still receive a complete pay
slip package, but the attached check is noted as non-negotiable.

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

Payroll taxes
Government agencies at various levels require employers to withhold income taxes from
employees' wages. In the United States, "payroll taxes" are separate from income taxes,
although they are levied on employers in law. Payroll taxes include:

39
Federal income tax withholding, based on withholding tables in "Publication 15, Employer's
Taxproportion to salary; the programs they fund include Social Security, and Medicare. U.S.
income and payroll taxes collected through deductions are considered to be trust fund taxes,
because the employer holds the deducted money in trust for later remittance.

Payroll Taxes in U.S.

Before considering the payroll taxes we need to talk about the Basic Formula for the Net Pay.
Basically from gross pay is subtracted one or more deductions to arrive at the Net Pay. In fact
Employee's gross pay (pay rate times number of hours worked, including any over time) minus
payroll tax deductions, minus voluntary payroll deductions, is equal to Net Pay. As you can see
payroll tax deductions play a critical role and just because they are provided by law we can call
them statutory payroll tax deductions.
1. The employer must withhold payroll taxes from an employee's check and hand them
over to several tax agencies by Guide" by Internal Revenue Service - IRS;
2. Social Security tax withholding. The employee pays 6.2 percent of the salary or wage,
up to 106,800. The employer also pays 6.2 percent in Social Security taxes. If you are
self-employed, you pay the combined employee and employer amount of 12.4 percent
in Social Security taxes on your net earnings;
3. Medicare tax. The employee pays 1.45 percent in Medicare taxes on the entire salary or
wage. The employer also pays 1.45 percent in Medicare taxes. If you are self-employed,
you pay the combined employee and employer amount of 2.9 percent in Medicare taxes
on your net earnings;
4. State income tax withholding;
5. Various local tax withholding, such as city taxes, county taxes, school taxes, state
disability, and unemployment insurance.

As for the sources considered as references we can mention the following publications:
 Publication 15, (Circular E), Employer's Tax Guide. This publication explains
employer's tax responsibilities. It explains the requirements for withholding, depositing,
reporting, paying, and correcting employment taxes. It explains the forms any employer
must give to its employees, those employees must give to the employer, and those
employer must send to the IRS and SSA (Social Security Administration). This guide
also has tax tables needed to figure the taxes to withhold from each employee;

40
  Publication 15-A, Employer’s Supplemental Tax Guide. This publication supplements
Publication 15 (Circular E), Employer’s Tax Guide. It contains specialized and detailed
employment tax information supplementing the basic information provided in
Publication 15 (Circular E);
 Publication 15-B. Employer's Tax Guide to Fringe Benefits. This publication
supplements Publication 15 (Circular E), Employer’s Tax Guide, and Publication 15-A,
Employer’s Supplemental Tax Guide. This publication contains information about the
employment tax treatment of various types of noncash compensation.

In the earlier part we have considered payroll taxes related to employee's side. Now it's the
moment to talk about the Employer Payroll Taxes Employers are responsible for paying their
portion of payroll taxes. These payroll taxes are an expense over and above the expense of an
employee's gross pay. The employer-portion of payroll taxes includes the following:
1. Social Security taxes (6.2% up to the annual maximum);
2. Medicare taxes (1.45% of wages);
3. Federal unemployment taxes (FUTA);
4. State unemployment taxes (SUTA).
Very often you can hear people using FICA in their terminology. FICA stands for the Federal
Insurance Contributions Act and the FICA tax consists of both Social Security and Medicare
taxes. As we explained earlier both parties pay half of these taxes. Employees pay half, and
employers pay the other half. Social Security and Medicare taxes are paid both by the
employees and the employers. In summary together both halves of the FICA taxes add up to
15.3 percent.

Pay slip

41
A pay stub, paystub, pay slip, pay advice, or sometimes paycheck stub, is a document an
employee receives either as a notice that the direct deposit transaction has gone through, or as
part of their paycheck. It will typically detail the gross income and all taxes and any other
deductions such as retirement plan contributions, insurances, garnishments, or charitable
contributions taken out of the gross amount to arrive at the final net amount of the pay, also
including the year to date totals in some circumstances. Pay slips are labor analogs of
remittance advice letters (which are used for invoices) – they state "you have been paid X
amount (paycheck) for Y services (hours worked)". Most of the provinces and territories in
Canada allow employers to issue electronic payslips, if the employees have confidential access
to it and are able to take a print out.

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

42
than payday loans available from retail check cashing stores, but others are not. Most payroll
cards will charge a fee if used at an ATM more than once per pay period.

The payroll card account may be held as a single account in the employer's name. In that case,
the account holds the payroll funds for all employees using the payroll card system. Some
payroll card programs establish a separate account for each employee, but others do not. Many
payroll cards are individually owned DD (demand deposit accounts) that are owned by the
employee. These cards are more flexible, allowing the employee to use the card for paying
bills, and the accounts are portable. Most payroll card accounts are FDIC-insured, but some are
not.

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

Warrants
Payroll warrants look like checks and clear through the banking system like checks, but are not
drawn against cleared funds in a deposit account. Instead they are drawn against "available
funds" that are not in a bank account, so the issuer can collect interest on the float. In the US,
warrants are issued by government entities such as the military and state and county
governments. Warrants are issued for payroll to individuals and for accounts payable to
vendors. Technically a warrant is not payable on demand and may not be negotiable. [5]
Deposited warrants are routed to a collecting bank which processes them as collection items
like maturing treasury bills and presents the warrants to the government entity's Treasury
Department for payment each business day.

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

In the UK, payroll bureaus will deal with all HM Revenue & Customs inquiries and deal with
employee's queries. Payroll bureaus also produce reports for the businesses' account department
and pay slips for the employees and can also make the payments to the employees if required.
Another reason many businesses outsource is because of the ever increasing complexity of
payroll legislation. Annual changes in tax codes, Pay as you earn (PAYE) and National
Insurance bands as well as statutory payments and deductions having to go through the payroll
often mean there is a lot to keep abreast of in order maintaining compliance with the current
legislation.

Pay rolling
Pay rolling is the business practice of referring a contingent worker to a staffing vendor or pay
rolling provider so that they are the employer of record responsible for employer taxes, payroll,
and all legal matters pertaining to employing workers. Different from sourcing (or recruiting)
where the staffing vendor uses internal recruiters to locate contractors on behalf of the
requesting company or client, payrolled workers are identified by the client. Often payrolled
workers are known to the client from previous engagements or as former employees. Because
the costs of recruiting workers in to contract positions are eliminated the payrollees are often
processed at reduced mark up rates.
In the last several years, some dedicated payrolling companies have emerged in the staffing
industry to provide payrolling services. In the US they are known as Professional Employee
Organizations or PEO's. They charge the cost of the employee payroll and add a surcharge for
their services.

44
Monthly Assignments
Payroll
 Preparation of salary sheet for the company for Staff (salary sheet shall be prepared as
per the cost centers and locations provided by the company).
 Preparation of monthly pay slips and delivery in separate envelops for each employee.
(Internal distribution of the envelops shall be the responsibility of the Company.
 While preparing the monthly salary consider - TDS on salary, PF and loan installments.
 Preparation of the Bank Transfer advice and monthly accounting and reconciliation of
the bank account from where salary shall be disbursed.
 Preparation of challan of monthly TDS amount. The deposit & collection of the TDS
challan from the bank will be the responsibility of the Company.
 Provide monthly-consolidated amounts of salary in appropriate accounts heads for
accounting.

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

45
Reimbursements
 Verification of claims as per the guidelines issued by the company and checking
taxability as per the income.
 Statement of monthly reimbursements as per the instruction given by the management.
 Maintenance of records of such reimbursements for each employee and entitlement
thereof.
 Payment of reimbursements on monthly basis.

Annual Assignments
 Computation of estimated Taxable income based on the information provided by the
company and update before year-end for final deduction of tax.
 Preparation of TDS certificates for employees on annual basis as required under Income
Tax Rules.
 Preparation of TDS returns and filing the same with Tax department.
 Computation of annual bonus as per the instructions given by the management.
 Prepare and provide information of salary for Directors report as required u/s 217 of the
companies Act 1956
 Provident Fund – preparation and filing of annual return in form 3A and 6A.

46
Easy PAY - Payroll Management Software

Easy PAY is very easy, flexible and user-friendly Payroll Management software that takes care
of all your requirements relating to accounting and management of employee’s Payroll. This
versatile, user friendly, package, offers user defined Earning / Deduction / Loan Heads &
Calculation Formulae / Tables. The package generates all the outputs & statutory reports
required by a Payroll application.
Highlights:

     User Defined Earnings &

Deductions
     Leave & Attendance
Management
     Loan & Advance Management
     Payroll Processing
     Salary Reports
        (Pay slip & Salary Sheet)
     Bank Transfer
     Reimbursement Management
     Arrears Calculation
     Other Payments
     PF Calculation & Reports
     ESIS Calculation & Reports
     Professional Tax
     Income Tax Management
     Full & Final Settlement
     User Defined Reports
     Reporting
     Datta Import
        (Masters, Salary & Leave
Record)
     HR Functions
     Other Add on Modules

47
      User Rights

DATA ANALYSIS & INTERPRETATION

1. Your organization provides opportunity for growth and security.

OPTIONS NO OF RESPONSES
Strongly agree 56
Agree 40
Disagree 04
Strongly disagree 0

50
45
40 Strongly agree
35
30 Agree
25
20 disagree
15
10 Strongly
disagree
5
0
NO OF RESPONSES

Interpretation:

48
 The survey revealed that most of the employees strongly agree that the Dodla Dairy
limited provides opportunity for growth and security and some are disagree about this.

2. Pay and compensation package is adequate and fair in comparison to performance.

OPTIONS NO OF RESPONSES
Strongly agree 19
Agree 51
Neutral 17
Strongly disagree 13

60

50
Strongly agree
40
Agree
30
Neutral
20
Strongly
10 disagree

0
NO OF RESPONSES

Interpretation:

49
 The survey revealed that most of the employees agree for the reason of their pay and
compensation package is adequate and fair in comparison to performance and some are
disagree.

3. Medical facilities provided by the organization suites your health needs?

OPTIONS NO OF RESPONSES
Strongly agree 36
Agree 45
disagree 19
Strongly disagree 0

50
45
40 Strongly agree
35
30
Agree
25
20
disagree
15
10
Strongly disagree
5
0
NO OF RESPONSES

Interpretation:

50
 The survey revealed that most of the employees agree and strongly agree for the reason
of the medical facilities provided by the organization which suits their health needs, and few
are disagree.

4. Your job allows you to use your skills and abilities.

OPTIONS NO OF RESPONSES
Strongly agree 24
Agree 60
Disagree 12
Strongly Disagree 0

70
60
Strongly agree
50
40 Agree

30 Disagree
20
Strongly
10 Disagree
0
NO OF RESPONSES

Interpretation:

51
 The survey revealed that most of the employees agree and strongly agree for using their
skills and abilities in their job.

5. Promotion policy of your organization ensures planned carrier growth.

OPTIONS NO OF RESPONSES
Yes 40
No 40
Can’t say 20

40
35
30
25 yes
20 No
Can’t say
15
10
5
0

Interpretation:

52
 The survey revealed that most of the employees are satisfied the promotion policy by
the organization which ensures planed career growth. But most of the employees are un-
satisfied by this policy.

6. Is time worked by non salaried staff adequately recorded and authorized?

OPTIONS NO OF RESPONSES
Yes 78
No 12
Can’t say 10

80
70
60
50 yes
40 No
Can’t say
30
20
10
0

Interpretation:

53
 The survey revealed that most of the employees are that there is a time worked by non
salaried staff adequately recorded and authorized by the organization which ensures planed
career growth.

7. Is leave and absence through sickness properly controlled?

OPTIONS NO OF RESPONSES
Yes 93
No 7

NO OF RESPONSES

100
90
80
70 NO OF RESPONSES
60
50
40
30
20
10
0
Yes No

Interpretation:

The survey revealed that most of the employees are saying that absence through sickness
properly controlled by the organization.

54
8. Is the original pay rate authorized in writing and subsequent amendments properly approved?

OPTIONS NO OF RESPONSES
Yes 95
No 5

NO OF RESPONSES
120

100

80
NO OF RESPONSES
60

40

20

0
Yes No

Interpretation:

The survey revealed that most of the employees are saying that the original pay rate authorized
in writing and subsequent amendments properly approved by the organization.

55
9. Is there a periodic check by independent staff, comparing the payroll and personnel records?

OPTIONS NO OF RESPONSES
Yes 99
No 1

NO OF RESPONSES
120

100

80
NO OF RESPONSES
60

40

20

0
Yes No

Interpretation:

The survey revealed that most of the employees are saying that there a periodic check by
independent staff, comparing the payroll and personnel records properly approved by the
organization.

56
10. Are the number of employees, amounts paid, and allowances and deductions, reconciled from one
period to the next?

OPTIONS NO OF RESPONSES
Yes 89
No 5
Can’t Say 7

NO OF RESPONSES
100
90
80
70
60 NO OF RESPONSES
50
40
30
20
10
0
Yes No Can’t Say

Interpretation:

57
The survey revealed that most of the employees are saying that there are the number of
employees, amounts paid, and allowances and deductions, reconciled from one period to the
next, properly approved by the organization.

11. Do procedures ensure staff leaving the company is cancelled from the payroll?

OPTIONS NO OF RESPONSES
Yes 100
No 0

NO OF RESPONSES
120

100

80
NO OF RESPONSES
60

40

20

0
Yes No

Interpretation:

58
The survey revealed that most of the employees are saying that there is procedures ensure staff
leaving the company is cancelled from the payroll, properly approved by the organization.

12. Do terms and conditions comply with local labor laws?

OPTIONS NO OF RESPONSES
Yes 100
No 0

NO OF RESPONSES
120

100

80
NO OF RESPONSES
60

40

20

0
Yes No

Interpretation:

59
The survey revealed that most of the employees are saying that terms and conditions comply
with local labor laws only properly approved by the organization.

13. Are there adequate controls over staff advances?

OPTIONS NO OF RESPONSES
Yes 60
No 40

NO OF RESPONSES

60

50

40 NO OF RESPONSES

30

20

10

0
Yes No

Interpretation:

The survey revealed that most of the employees are saying there adequate controls over staff
advances the organization is 60 % .and remains 40% says that is no controlled in it.

60
14. Is the calculation of a sample of employee’s net pay periodically checked?

OPTIONS NO OF RESPONSES
Yes 60
No 40

NO OF RESPONSES

60

50

40 NO OF RESPONSES

30

20

10

0
Yes No

Interpretation:

The survey revealed that most of the employees are saying there is a calculation of a sample of
employee’s net pay periodically checked, and approved by the organization.

61
 FINDINGS

1. Those responsible for approving time worked are independent of those responsible for
payroll preparation, determining cheque payments and the preparation and distribution of
pay.

2. Those responsible for maintaining personnel records are independent of those responsible
for preparing the payroll.

3. Those responsible for payroll preparation are independent of those responsible for the
preparation and distribution of pay, particularly where casual labor is employed or where
there is no separate and independent personnel department.

4. Those responsible for maintaining personnel records or originating entries on the personnel
records are independent of those responsible for preparing pay packets or distributing pay.

5. Those responsible for payroll preparation should be independent of those authorizing

cheque payments, authorize bank transfers, etc.

6. Those responsible for distributing pay should be independent of those determining cheque
payments.

62
 CONCLUSION

“The global business environment is buzzing with the single most important issue of Building a
competitive edge by creating and retaining a large number of Employees than their goods and
services every organization is therefore seized of the task of establishing sustaining its worth to
the customer, who has been rendered unpredictable by competition”

Therefore every business is making a continuous effort for achieving Employees effort for
achieving Employees loyalty.

In short it is total organizational culture and brand equity, which face challenge. So that there is
a perennial struggle amongst organizations to sustain their existence in the market place, and
hence in order to sustain the stiff competition the company has to take up market Research
frequently to know the changing needs & preference of the Employees.

This helps the company to reframe the policies in providing cutting edge technology to satisfy
the Employees & retain him for a life time.

63
 SUGGESTIONS

 To improve the comfortness of Employees.

 Skilled and experienced persons should be provided at service center, so that
problems of the Employees should be resolved completely.
 It is suggested that some more Benefits should be provided for Employees.
 To provide better service to Employees at work shop.
 To make the Organization more spacious inside for development of Employees.
 To increase the place of R&D at work shop.

64
 BIBLIOGRAPHY

HUMAN RESOURCE MANAGEMENT … P. SUBBA RAO

PERSONNEL / HUMAN RESOURCE MANAGEMENT STEPHEN ROBBINS

HUMAN RESOURCE MANAGEMENT AN INFORMATION SYSTEMS APPROACH …

WAYNE F CASCIO

Search engine: - Google

Websites:-
 www.hrindia.com
 www.parollsystemindia.com
 www.questionsurvey.com

65
 QUESTIONNAIRE
Name:
Age:
Department:
Designation:
Please tick the appropriate
1. Your organization provides opportunity for growth and security?
(a) Strongly agree (b) Agree
(c) Disagree (d) strongly disagree

2. Pay and compensation package is adequate and fair in comparison to performance?

(a) Strongly agree (b) Agree
(c) Neutral (d) Disagree (e) Strong disagree.

3. Medical facilities provided by the organization suits your health needs?

(a) Strongly agree (b) Agree
(c) Disagree (d) Strongly disagree

4. Your job allows you to use your abilities?

(a) Strongly agree (b) Agree
(c) Disagree (d) strongly disagree

5. Promotion policy of your organization ensures planned carrier growth?

(a)Yes (b) No (c) Can`t say

6. Is time worked by non salaried staff adequately recorded and authorized?

66
 (a)Yes (b) No

7. Is leave and absence through sickness properly controlled?

(a)Yes (b) No

8. Is time worked by non salaried staff adequately recorded and authorized?

(a)Yes (b) No

9. Is leave and absence through sickness properly controlled?

(a)Yes (b) No

10. Is the original pay rate authorized in writing and subsequent amendments properly
approved?
(a)Yes b) No

11. Is there a periodic check by independent staff, comparing the payroll and personnel
records?
(a)Yes (b) No

12. Are the number of employees, amounts paid, and allowances and deductions, reconciled
from one period to the next?
(a)Yes (b) No

13. Do procedures ensure staff leaving the company is cancelled from the payroll?
(a)Yes (b) No

14. Do terms and conditions comply with local labor laws?

(a)Yes (b) No

15. Are there adequate controls over staff advances?

(a)Yes (b) No

16. Is the calculation of a sample of employee’s net pay periodically checked?

67
(a)Yes (b) No

68