A STUDY ON VARIOUS FRINGE BENEFITS PROVIDED TO THE

EMPLOYEES WITH SPECIAL REFERENCE TO KITEX LIMITED,

KIZHAKKAMBALAM, ERNAKULAM
A project report submitted in partial fulfillment of the requirement for the award of

DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Submitted by

VARUNA THOMAS

(Reg.No.160021102463)

Under The Guidance Of

Mrs. ARYA S BABU, MBA

(Assistant professor, Department of Business Administration)

GIRIDEEPAM INSTITUTE OF ADVANCED LEARNING,

BETHANY HILLS, VADAVATHOOR,

KOTTAYAM

[Affiliated to Mahatma Gandhi University]

(2016-2019)
 DECLARATION

I, VARUNA THOMAS, hereby declare that the report entitled “A STUDY ON

VARIOUS FRINGE BENEFITS POVIDED TO THE EMPLOYEES WITH
SPECIAL REFERENCE TO KITEX LIMITED, KIZHAKKAMBALAM,
ERNAKULAM” is a bonafide project study done by me under the guidance of
Mrs. Arya S Babu, Assistant professor, Department of Business Administration,
Girideepam Institute of Advanced Learning, during the 6th semester of my study,
and is submitted to Mahatma Gandhi University in partial fulfillment of the
requirements for the award of the Degree of Bachelor of Business Administration.
This work has not been previously submitted to any university or board for the
award of any academic qualification or similar title.

Place: KOTTAYAM VARUNA THOMAS

Date: (Reg. No. 160021102463)

 ACKNOWLEDGEMENT

First of all, I express my profound gratitude to the Lord Almighty for the
inspiration and guidance throughout this project work.

I would like to sincerely thank Rev.Fr. Sathyan Thomas OIC, Director,

Girideepam Institute of Advanced Learning, kottayam for all the support provided
to me and also for allowing me to do this project.

I acknowledge my profound gratitude to Mrs. Treasa Fyna, Head of the

Department of Bachelor of Business Administration, Girideepam Institute of
Advanced Learning, kottayam, for the advice and encouragement given to me
throughout the course of study.

I express my sincere gratitude to Mrs. Arya S Babu, Department of Bachelor of

Business Administration, Girideepam Institute of Advanced Learning, kottayam
for all the support and guidance she provided me and also for allowing me to do
the project.

I also express my sincere thanks to Mrs. Vini Nair (HR Manager, KITEX LTD)
organizational guides for their valuable advice to conduct this project work.

I express my deep sense of gratitude to all the employees and workers of KITEX
LTD for granting the necessary facilities to complete this work.

Finally my heartiest thanks to my parents and friends for their moral support,
suggestions and encouragement, which made me to sail the project smoothly in
true with the clock.

VARUNA THOMAS

(Reg. No. 160021102463)

 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO:

I Introduction
1.1 General Introduction

1.2 Industry Profile

1.3 Company Profile

1.4 Product Profile

II Review Of Literature
2.1 Theoretical Background
III Research Methodology
3.1 Objective of the study
3.2 Scope of the study
3.3 Limitations of the study

IV Data Analysis And Interpretation

V Findings, Suggestions and Conclusions

5.1 Findings
5.2 Suggestions
5.3 Conclusion
Bibliography

Appendix
Questionnaire
 LIST OF TABLES

TABLE NO: TABLE NAME PAGE NO:

4.1 Number of interval times provided

4.2 Wage fixation of the company
4.3 Holiday packages
4.4 Opinion about the canteen facilities
4.5 Educational allowances for children
4.6 Number of leave facilities
4.7 Medical insurance
4.8 Emergency medical aids
4.9 Basis of promotion
4.10 Uniforms
4.11 Extra working hour wages
4.12 Pension
4.13 Gratuity schemes
4.14 Loan facilities
4.15 Working condition
4.16 Transportation facilities
4.17 Hostel facilities
4.18 Paternal leaves
4.19 Employment opportunities in the event of
death or retirement
4.20 Provident fund schemes
4.21 Extra allowances during festivals
 LIST OF CHARTS

FIGURE CONTENTS PAGE NO:

NO:
4.1 Number of interval times provided
4.2 Wage fixation of the company
4.3 Holiday packages
4.4 Opinion about the canteen facilities
4.5 Educational allowances for children
4.6 Number of leave facilities
4.7 Medical insurance
4.8 Emergency medical aids
4.9 Basis of promotion
4.10 Uniforms
4.11 Extra working hour wages
4.12 Pension
4.13 Gratuity schemes
4.14 Loan facilities
4.15 Working condition
4.16 Transportation facilities
4.17 Hostel facilities
4.18 Paternal leaves
4.19 Employment opportunities in the event of
death or retirement
4.20 Provident fund schemes
4.21 Extra allowances during festivals
 CHAPTER 1
INTRODUCTION
1.1 GENERAL INTRODUCTION
Some extra benefits, in addition to the normal wage or salary compensation, paid
to employees or provided for the benefits of employees, is referred to loosely as
fringe benefits.

Fringe benefit is primarily a means in the direction of ensuring, maintaining and

increasing the income of the employees. It is a benefit, which is of value to them
and their families in so far as it materially increases their retirement.

The term fringe benefits perhaps came into use in the 1950’s and can be credited to
the regional chairman of the National War Labour Board in the United States.
These are additional benefits given to employees for their rendered service towards
the organization. It is given to employees over and above the basic compensation.
These fringe benefits are often in the form of employer-paid life and health
insurance policies, retirement benefits, and other things that might aid in the
recruitment of top quality, skilled workers. In fact, fringe benefits play a large role
in keeping workers motivated to do quality work and increase production. Some
fringe benefits may be classified as taxable income by the IRS.

Many employers offer employees an array of fringe benefits in addition to their

salaries. Also considered “job-perks,” these benefits cost employers, who pay for
such perks, and are therefore considered a portion of the employees’ salaries on
their books, even if the benefits are not in the form of money, such as bonuses.
There are many types of fringe benefit, and which types are offered often depends
on the type of employer, and value of the employee’s position.

The objectives of fringe benefits include:

 To induce happier employer-employee relations,

 Generate good morale in the employees,
 Promote employee welfare,
 To induce loyalty to the company and meet the legal requirements,
 To improve and furnish the organizational image in the eyes of public with a
view to improving it marked position and bringing about product acceptance
by it.
 To recruit and retain the existing employees.
Fringe benefits in India:

When the employees federation of India conducted a study on fringe benefits in

this country, it was revealed that, in 1960, 981 companies which were included in
the survey paid a little our Rs.2,148.3 million in wages and fringe benefits and
latter was about 21.4% total wages bill in that year.

The fringe benefits were high in the mining (25.84% of the wage bill) and
plantation inquiries (24.3% of the wage bill) and were comparatively low in the
manufacturing sector (19.99% of the wage bill).

Kitex Limited was established in 1975. The company is engaged in the production
of fabrics made of cotton and other blends like Grey cloth, bed sheets and lungies.
The objective of the study is to analyse the various fringe benefits provided by the
company to the employees, the level of satisfaction of the employees and their
attitude towards it.
INDUSTRY PROFILE
1.2.1 TEXTILE INDUSTRY IN INDIA:

The readymade garment industry is increasing day to day due to changes of fashion
in day to day life. The readymade garment industry in India owes its existence to
the emergence of a highly profitable market for export readymade garments
amount for approximately 45% of India’s total exports. They represent value added
and less import subsector in the recent years. However, the domestic demand had
also been growing rapidly.

The textile industry in India, traditionally after agriculture, is the only industry that
has generated huge employment for both skilled and unskilled labours in textiles.
The textile industry continues to be the second largest employment generating
sector in India. It offers direct employment to over 35 million in the country. The
share of textiles in total exports were 11.04% during April-July 2010, Indian textile
industry was pegged at US$55 billion 64% of which services domestic demands. In
2010, there were 2500 textile weaving factories and 4,135 textile finishing factors
in all of India. According to AT Kearney’s Retail Apparel Index, India is ranked as
the fourth most promising market for apparel retailers in 2009.

A major improvement in weaving efficiency has been brought about by

developments in spinning technology which has enabled production of yarn of
higher quality. A major share of looms installed in the decentralized and power
looms segments are small in number. Shuttle less technology, direct wrapping, use
of splicing, technology, automatic dotting and knotting systems, help to increase
mill productivity speed of the auto loons or shuttle less looms is 60% highest than
that of non auto looms.

The textile industry has managed to modernize the spinning sector but there is a
long way to go in the weaving front. India’s power loom sector has over 10,000
shuttle less looms as industry include dyeing, Arvind Mills, Century textiles, coat
Viyella, Morarjigokuldas spinning, JCT, Hindustan spinning.

1.2.2 HISTORY:

The archaeological surveys and studies have found that the people of Harappan
Civilization knew weaving and the spinning of cotton 4000 years ago with
reference to weaving and spinning materials found in Vedic Literature. There was
textile trade I India during the early centuries. A block printed and resists dyed
fabrics, whose origin is from Gujarat is found in tombs of Fostat, Egypt. This
proves that Indian export of cotton textiles to the Egypt or the Nile civilization in
medieval times were to a large extent. Large quantities of North Indian silk were
traded through the silk route in China to Western countries. The Indian silks were
often exchanged with the western countries for their spices in the barter system.
During the late 17th and 18th century, there were large exports of the Indian cotton
to the western countries to meet the need of the European industries during
industrial revolution. Consequently, there was development of nationalist
movement which was headed by the Aurobindo Ghosh.

1.2.3 BACKGROUND:

India is one of the world’s largest producers of textiles and garments. Abundant
availability of raw materials such as cotton, wool, silk and jute as well as skilled
workforce have made the country a sourcing hub. It’s the world’s 2nd largest
producer of textiles and garments. The Indian textile industry accounts for about
24% of the world’s spindle capacity and 8% of the global rotor capacity. The
potential size of the Indian textiles and apparel industry is expected to reach
US$223 billion by 2021. The textile industry has made a major contribution to the
national economy in terms of direct and indirect employment generation and net
foreign exchange inflows. It provides direct employment to over 45 million people.
The textile sector is the 2nd largest provider of employment after agriculture. Thus,
the growth and all round development of this industry has a direct bearing on the
improvement of India’s economy.

India has overtaken Italy, Germany and Bangladesh to emerge as the world’s 2nd
largest textile exports from India will touch US$ 300 billion by the year 2024-25.
In 2012, apparel had a share of 69% of the overall market; textiles contributed the
remaining 31%.

1.2.4 VARIOUS CATEGORIES:

Indian textile industry can be divided into several segments, some of which can be
listed as below:
Cotton: India is the 2nd largest cotton and cellulosic fibers producing country in the
world.

Silk: India is the 2nd largest producer of silk and contributes about 18% to the total
world raw silk production.

Wool: India has 31 largest sheep population which produces 45 million kg of raw
wool and accounts for 3.1% of total world wool producing countries and the 9 th
amongst greasy wool producers.

Manmade fibers: The 4th largest country in the case of synthetic fibers/ yarns
globally.

Jute: India is the largest producer and the 2nd largest exporter of the jute goods.

1.2.5 MINISTERY OF TEXTILES AND ORGANISATIONS:

Government of India passed the National Textile Policy in 2000. The major
functions of the ministry of textile are formulating policy and coordination of
manmade fiber, cotton, jute, silk, wool industries, decentralization of power loom
sector, promotion of exports, planning and economic analysis, finance and
promoting use of information technology. The advertising boards for the ministry
includes All India Handlooms Boards, All India Handicrafts Boards, All India
Power looms Board, Advisory committee under Handlooms Reservation of
Articles for Production and coordination Council of Textiles Research Association.
With direct linkages to the rural economies and the agricultural sector, it has been
estimated that one of every six household in the country depends on this sector,
either directly or indirectly for its livelihood.

A strong raw material production base, a vast pool of skilled and unskilled
personnel, cheap labour, good export potential and low import content are some of
the salient features of the Indian textile industry. This is a traditional, robust and
well established industry that enjoys considerable demand in the domestic as well
as global markets.

1.2.6 INDIA VIS-À-VIS GLOBAL TEXTILES:

The global textile and clothing industry is estimated to be worth about US$ 4,395
billion and currently global trade in textiles and clothing stands at around US$ 360
billion. The US market is the largest, estimated to be growing at 5%per year and in
combination with the EU nation accounts for 64% of the clothing consumption.
The Indian textile industry is valued at UD$36 billion with exports totaling US$ 17
billion in 2005-06. At the global level, India’s textile exports and accounts for just
4.72% of the global textile and clothing exports. The exports basket includes a
wide range of items including cotton yarn and fabrics, manmade yarn and fabrics,
wool and silk fabrics, made-ups and a variety of garments. Quota constraints and
shortcomings in producing value added fabrics and garments and the absence of
contemporary design facilities are some of the challenges that have impacted
textile exports from India.

India’s presence in the international market is significant in the areas of fabrics and
yarn. India is the largest exporter of yarn in the international market and has a
share of 25% in the world cotton yarn exports.

India accounts for 12% of the world’s production of textile fibers and yarn. In
terms of spindle age, the Indian textile industry is ranked second, after China and
accounts for 23% of the world’s spindle capacity and around 6% of the global rotor
capacity is in India itself. The country has the highest loom capacity, including
handlooms with a share of 61% in the world loom age.

1.2.7 INVESTMENTS:

Investments in the textile sector can be assessed on the basis of three factors:

Plan schemes such as the Technology Upgradation Funds Schemes (TUFS),

Technology Mission on cotton, Apparel parks, etc. Under TUFS, a total of Rs916
million has been disbursed for technology up gradation. There are around 26
apparel parks in 8 states in India, with a total estimated investment of Rs.134
billion.

Industrial Entrepreneurship Memorandums implemented from 1992 to August

2006, amounting to Rs.263 billion.

Foreign direct investment inflows worth US$ 910 million have been received by
the textile industry between August 1991 and May2006, which accounts for 1.29%
of total FDI inflows in the company.
1.2.8 MAJOR INDIAN TEXTILE INDUSTRIES:

 Chiripal Group
 The Victoria Mills LTD
 Digjam
 The Ruby Mills
 Bombay Dyeing
 Arvind Mills
 Welspum India LTD
 Alok Industries
 Raymond LTD

1.2.9 FOREIGN INVESTORS IN INDIAN INDUSTRY:

 Reiter (Switzerland)
 Trutzschler (Germany)
 Soktas (turkey)
 Zambiati (Italy)
 Monti (Italy)
 CMT (Mauritius)
 Marubeni (Japan)
 Skapa (USA)
 Ahistorm (USA)
 Terram (UK)
 Zara (Spain)
 Marks & Spencer (UK)
 Strata Geosystems (USA)
 Mango (Spain)
 Promod (France)
 Benetton (Italy)
 Spirit (USA)
 Levi’s (USA)
 Forever 21(USA)
COMPANY PROFILE
Anna Group’s textile unit, KITEX LTD was established in 1975. The company is
engaged in the production of fabrics made of cotton and other blends like Grey
cloth, bed sheets and lungies. Through the years, the company has carved a niche
for itself in this highly competitive industry with its tradition of world class quality
for the product. The KITEX range of garments manufactured in the multi core
factory is a popular brand that is recognized not just within India, but abroad too
catering to the fashion conscious marketers across the world. The garments are
made from 100% combed cotton. Kitex bed sheets are suitable for all climates and
come in variety of shades and designs which experiences the warmth of
smoothening nights and caresses your dream and lull yourself into relaxing sleep,
night after night with KITEX.
More than three decades ago, in 1968, when Mr. M C Jacob found the ANNA
ALUMINIUM COMPANY, he has made a break with the past, belonging to an
affluent family of plantation. Be ventured into the risky world of manufacturing
industry and hoped for the best, while working very hard to make his maiden
venture a success. Today the group is included in the manufacturing of Aluminium
sheets, circles vessels and utensils from Aluminum ingots spices, fabrics, garments
and marine exports, etc. The ANNA range of vessels and utensils are highly
popular in the domestic market and in the Middle East, USA, Africa and Australia.

KITEX LTD a prominent prodigy in the field of textile industry began its
spectacular display in 1975 at Kizhakkambalam, Aluva. This prestigious company
is one of the vibrant divisions of Anna, KITEX group of companies is considered
to be a celebrity among industry giants in our country. This weaving unit is
engaged in the production of fabrics made of cotton and other blends, Grey cloth,
mull, lunges and bed sheets. They are marketed through a network of over 1600
Authorized dealers. Through the years, the company has carved a niche for itself in
this highly competent industry with its tradition of internationally accepted
products.
The company was established to set up an efficient industrial estate to provide
technical industrial, financial and marketing facilities to power looms owners and
to create job opportunities to reduce unemployment. Considerable infrastructure
facilities have been built up by way of building electronically distribution system
supporting machineries for wrapping, sizing, etc. to help power looms owners
about 400power looms were established in the premises under the banner
Kizhakkambalam textiles limited. The group got highest rewards for the welfare of
the employees and general public. Several charitable programmes were organised
for the benefit of the lower strats of the societies. The group is also providing a
very good accommodation and canteen facilities to employees who hail from all
over Kerala.
1.3.1 VISION

A world class manufacturing company focusing on all round business excellence

through a total quality management with committed leadership effective teamwork,
delighted customer and satisfied employees in an environment friendly work
conditions.
1.3.2 MISSION

Fabrics and processed fabrics as per the customer specification efficiently in a

professional and environment friendly manner, on time, and at the right cost with
at most customer satisfaction to become a world class organization through
continuous improvement.

1.3.3 OBJECTIVE
1. Increase sale of value added item by 20% from the existing level.
2. Reduce rejection by 10% from the present level.
3. Reduce customer complaints by 10%.
4. Increase product range by introducing new variety of garments.

1.3.4 HEALTH AND SAFETY POLICY

 Kitex Limited is committed to protect employees by imparting training and

providing protective equipment wherever necessary.
 Kitex Maintains clean and safe working environment.
 Safety class for workers is conducted on a yearly basis.
1.3.4 ORGANIZATIONAL STRUCTURE

KITEX limited follow the line/military organizational structure. Managing director

is considered to be on the top level. Other functional managers are followed by
him. The span of control of the organization is narrow spans. The main advantage
of this type of control is that it provides close supervision, clear chain of command
and close control and fast communication between subordinates and superiors. The
model of the organizational design is mechanistic model. An efficient management
system plays a dominant role in the success of all business units. It is that section
that declares the level of output, its product in pattern, pricing technique, marketing
style and even the mode of conduct of its executives.

The chairman and the managing director with respective of the shareholders take
the important decision of the group concerns and they perform strategic planning
and policy making function of KITEX LIMITED. For their help, the general
manager, top executive of the company’s management are appointed. General
Manager is responsible for the smooth functioning of production to marketing. The
middle level management comprises of production manager, marketing manager,
finance manager, HR manager, purchase manager, Store manager and quality
manager.

1.3.5 ISO CERTIFICATION

KITEX LIMITED got its ISO 9001-2000 in February 2007. They are committed
to manufacture and deliver quality products. KITEX LIMITED is the leading
manufacture with ISO 9001-2000 in South India of all varieties of GERIGE
fabrics. Yarn dyed fabrics made of cotton, polyester cotton, cotton flax, linen,
cotton linen, cotton Lycra, Polyester Lycra, etc. They can do any weaves/qualities
like cambric sheeting’s poplins, mulls, casements, drills, twills, lines, satins, bed
fords, oxfords, stripes, etc. They have 525 running looms of Seltzer, pianos,
Dornier and cimmco marking around 1, 30,000 meters of fabrics per month.

They are the leading manufacturing with ISO 9001-2000 in South India of all
varieties of Geiger fabrics, yarn dyed fabrics, bobby and leno bobby fabrics made
of cotton, polyester cotton, cotton nylon, cotton flax, linen, cotton lines, cotton
Lycra, etc.
 Fig.1.3.5 Vision & mission

1.3.6 FUTURE EXPANSIONS

Future vision

 To reach excellent quality standards in the company.

 To keep in pace with the modern technologies concept.
 To organize supply of material t minimum cost maximum excellence .

Future expansion plan

Weaving capacity is doubted from 5000 by adding 120 shuttle loom. Now there is
a plan to import more raw materials for Dornier and Pecanor and also to increase
their varieties of products to many other different countries and hence abroad
diversification of new products are added.

As a part of expansion, KITEX LIMITED garment units are developed and also
there is a plan to expand the capacity of Travel bag unit for improving quality and
for developing the production capacity.

1.3.7 COMPETITORS

KITEX LIMITED faces competition from only a few brands like KKB, Angel,
Bombay dyeing, and Jansons.
1.3.8 DEPARTMENT PROFILE

KITEX LIMITED consists of the following departments:

 HR department
 Marketing department
 Production department
 Finance department
 Quality department
 Stores department
 Purchasing department
1. HR Department: Nowadays, Human resource is considered to be an
important asset of an organization. Behind every success of a company,
there need a great people making recruitment and retention. Companies must
find new ways to engage the knowledge, experience, talents of the
employees to find the hidden values in organization and leverage that value
to achieve strategic goods.
Kitex Ltd has a good HR department and it maintains good relation with
the employees. This helped the company to achieve tremendous growth. All
the employees’ related activities are managed by this department.
2. Marketing Department: Marketing is the activity through which a
company is able to generate the revenue for the functioning of the
organization. Kitex Ltd has got a very good marketing department controlled
by efficient and dynamic marketing manager. Kitex market is processed
products like lungies, dhothies, bed sheets and mulls, etc mainly through
dealers.
3. Production Department: Production is the process by which raw materials
and other inputs are converted into outputs. Among all functional areas of
management, production is considered to be crucial in any organization like
Kitex Ltd. In Kitex Ltd, mainly the production of greige clothes takes place
under the production department. The production manager is known as
weaving master.
4. Finance Department: Finance is the life blood of business. This department
consists of all the managerial activities of raising funds and effective
utilization. Finance department lies in decision making in the area of
 investment, finance and dividend. Finance manager is the head of finance in
Kitex. He decides when and where to acquire funds to meet firms
investments needs. The finance department should strive for obtaining the
optimum capital structure for the organization.
5. Quality Department: Kitex Ltd is very much concerned about the quality of
their products and some exports are also made, so high quality must be
ensured to meet international standards. The company has ISO certification.
Before purchasing yarn, the quality parameters are checked and getting
assurance from the yarn suppliers reading to count, strength, twist, etc for
checking or measuring the above parameters various equipments are
available in the company.
6. Stores Department: The stores department is headed by stores manager. He
is assisted by four persons; two in general shifts and one each in other two
shifts. Adhesives, spare parts, electrical items, lubricants, tools, office
stationery packing materials, etc. are the responsibilities of the stores
department. Functioning of stores department is controlled by the store’s
manager.
7. Purchasing Department: The purchase Department plays a very important
role in the company and it has its effect on every vital factor concerning the
manufacture, quality, cost efficiency and prompt delivery of goods to
customers. Kitex Ltd has a centralized purchase department headed by
purchase manager. Its function is to procure materials, suppliers, services,
machines and tools favorable terms consistent with maintaining the desired
standard of quality.

1.3.9 PRODUCTION SCHEDULE OF KITEX LIMITED

The basic output of this unit is 100% cotton grey cloth, which is the raw material
for most of the textile industries. About 85% of the total sales of the unit come
from the sale of pure cotton grey cloth and the rest comes from the sale of lunges,
mull, bed sheets and dhothies prepared from the pure cotton grey cloth.
100% cotton grey cloth is manufactured from the cotton yarn. The south Indian
suppliers of cotton yarn are given with the specification regarding the sort of yarn
for producing various types of cotton grey cloth.

The yarn is delivered to the factory location in Lorries which are consumed in the
units only after checking process.

Various loom machineries are used for the conversion of yarn to cotton grey cloth.
This cloth, which is off white in color, is used for making various cotton textiles.
Various processes like dyeing, bleaching, printing, coloring, etc. are done in the
cotton grey cloth by different south Indian units.

A portion of grey cloth is changed into mull, 100% cotton tough cloth. The mull is
made by bleaching of grey cloth, which changes the color of the grey cloth into
white. This process is undertaken in some units of Tamil Nadu.

The consumer goods from these units are made from the grey cloth produced here.
The grey cloth is transferred to Tamil Nadu units for its printing and clothing. The
lunges, bed sheets and dhothies are cut into the required dimensions in the factory
itself. As these products are consumer items, the quality is the main factor that
quantifies the goodwill of the unit. For this, experienced and skilled labours do
manual checking and after this, the products are covered in suitable packs for the
delivery to the dealers.
 1.3.10 PRODUCTION PROCESS – A NUTSHELL

Pure cotton yarn

Weaving

100% cotton grey cloth

__________________________________________________________
Dyeing Printing and coloring

Mull lunges bed sheets Dhothies

 1.3.11 KITEX LIMITED

Vital statistics:

Name: Kitex Limited

Address: Kizhakkambalam P.O, Aluva, Cochin.

Registration office: Kizhakkambalam

Brand Name: Kitex

Nature of incorporation: Private limited company

Nature of Business: Manufacture of cotton textiles and bags

Nature of product: Consumer and industrial product

Chairman: Mr. Bobby M Jacob

Director: Mr. Bobby M Jacob, Mr. K C Pillai, Mr. A K Mathew

Bankers: Federal Bank, State Bank of India, Indian Bank,

Axis Bank

Auditor: Varma & Varma

Total capital employed: 4Crores

Annual Turnover: 200Crores

Employment potential: 1,000

Number of machines: 564

1.3.12 ORGANISATIONAL STRUCTURE
1.3.13 AWARDS WON

Mr. Jacob, the founder of Kitex Limited has won several awards for his
meritorious contributions in the field of business. To mention a few:

 He has won the TRANSWORL TRADE FARE Gold medal in the year
1975.
 He has been awarded the UDYOG PATHRA Award by the then Vice
President of India Sri. B. D. JETTI in the year 1979.
 A Memento was presented to Mr. Jacob in December, 1992 for his valuable
contribution to the Evangelistic Convention held at Puthencruz.
 Considering his outstanding contribution as an Industrial Mr. Jacob was
awarded the BUSINESS MAN OF KERALA 199 award by the BUSINESS
DEEPIKA, the business daily from one of the oldest Malayalam Newspaper
Group.
 KRISTHU JAYANTHY award for the year 2000 was conferred to Mr.
Jacob during the 82nd ALL KERALA CATHOLIC CONGRESS for his
noteworthy contribution to the economy of Kerala.
 For the meritorious services of Mr. Jacob to the community, he was awarded
by Major Arch Bishop Mar VARKEY VITHAYATHIL in the year 2000, on
behalf of the Most Gracious IGNATIUS MOOSA 1st, PATRIARCH OF
VATICAN.
 AKSHAYA AWARD 2000 for his outstanding contribution to
‘Malayanma’.
 The Ernakulam Chamber of Commerce the Joseph Chakola Memorial
‘Vyavasaya Jyothi’ Award to Mr. Jacob for the year 2000-2001.
 Department of Catechism Ernakulam-Angamaly has recognized his
contribution by giving a Memento for special service rendered to Catechism
Teachers.
 Bharat Aluminium Company Ltd (A Government of India Enterprise)
Service recognition Award.
 Samman Patra of Government of India, Ministry of Finance, Department of
Revenue for outstanding revenue performance.
 Advertising Industries media presented a Memento Kerala Adifest 2007.
PRODUCT PROFILE
Kitex Ltd has the weaving unit of Anna group of companies. Major product of the
company is Grey fabrics. Grey fabrics are made of different materials like 100%
cotton, linen, cotton lyre, polyester lyre, etc. The production of grey fabrics are
order based in which 85% of grey fabrics are produced and sold to other
companies engaged in the manufacturing and exporting of garments in various
parts of country like Mumbai, Chennai and Bangalore, etc. The remaining of 15%
are converted by the company into its own products like Dhothies, Lungies, bed
sheets, etc. which is marketed not only in India but also to international markets.

The consumer’s products of company are dhothies, bed sheets, etc. Kitex lungies
are available in six different types namely, executive medium super, medium
standard, supreme and economy.

The price ranges from Rs 100 to Rs 200. It is available in eleven major types.
Single as well as double dhothies are marketed in the name ‘smart line’ and double
dhothies are marketed in the name ‘smart’. It has a price range between Rs 100 to
Rs 300. Kitex manufacture bed spreads in the name sweet dreams, solo, etc. Single
bed sheets and double bed sheets are available in wide varieties of colors. The
price ranges from Rs 170 to Rs 500. Some bed sheets are also accompanied by
pillow covers.

ANNA ALUMINIUM

Anna Aluminium is the flagship company of Anna Group engaged in manifesting

and marketing of vessels and utensils as per ISI standard for the past three decades.
It is presently only company having ISI certification for vessels only using 99.5%
pure aluminium ingots. The brand Anna has become a household name in Kerala
due to its high standards of quality and workmanship. The company has more than
525 different varieties and utensils marketed through more than 2500 dealer outlets
in India. Anna aluminium has a wide range of vessels to cater to all necessities of a
modern day kitchen. The group package cookware items were brought under a new
brand name Chakson.
CHAKSON

Chakson brand pressure cookers stormed into the market in 1993 and within a
short span of 4 years, Chakson pressure cooker captured a sizable share of the
domestic markets.

Product range:

 Pressure cooker.
 Thermal cooker.
 Multi steamer.
 Compact idly cooker.
 Milk cooker.
 Putts maker.
 Cooking pot.
 Fry pan.
 Kettle.

KITEX GARMENTS

Kitex Garments are established in the year May 1992. They are into the business of
manufacturing and exporting garments. The company’s products range includes
shirts polar fled, T shirts, kids wear, nylon jackets and shorts.

Lungies:

Kitex Lungies are available in various varieties like:

1) Executive: Super quality lungies available in various designs and colors.

2) Medium Super: Economic, standard, supreme and comfortable lungies are
available in various designs and colors.

Dhothies:

Kitex white gives the customer an array of white dhothies- single as well as
double. It comes with streaks of colors and gold is the major highlight among
these. It is available in the rate between Rs 100 to Rs 310.

 Smart line
  Smart line gold
 Ready wear
 Smart

Bed spread:

Kitex also has a beautiful and wide range of bed spreads in the range between Rs
150 to Rs 550. Through the years, the company has carved a niche for itself in this
highly competitive industry with its tradition of world class quality. They are
available in the following patterns:

 Sweet dreams -50( Single sheets)

 Sweet dreams -60( double sheets)
 Solo (ISD60 bed sheet - 1 pillow cover)
 Duo (ISD60 bed sheet - 2 pillow covers)
 Solitude ( 1 double sheet)
 Sweet dreams king night

Scoobee day Bags:

At the dawn of new millennium, the new generation was presented with
innovative school bag for kids. Scoobee day bags are compactly designed with
unique features that make it durable, colorful, comfortable and easy to carry. The
bag features anti strain shoulder padding and acupressure buds especially to
minimize the strain on the shoulders.

Travel day Bags:

The renowned Anna Kitex group manufactures of quality consumer products

foraged unto the travel bag segment with its Travel Day bags for wide range of
luggage and baggage products. They come up with latest designs and models for
everyday travel luggage. It is made from imported raw materials. The bags are of
medium ranged price and have a good market share.
Sea Land Marine Ltd:

It is a new company incorporated with a view to enter the new thrust area, viz.
Marine Exports. The company has acquired over 100acres in Pondicherry for
setting up an integrated Aqua culture division comprising of batchers and growing
ponds. Increased field of shrimps needs foreign exchange to the company.

Dago Bert Shirting and Suiting:

They are woven from the finest cotton, using the toughest materials that are soft to
touch when draped on your body. It features the most contemporary designs along
with the weaving techniques. These are available in the variety of colors and
shades.

Agna and Adonis Inner wear:

Kitex Ltd has made its foray in to the untapped lingerie segment with its brand
name ‘Agna’ for women and ‘Adonis’ for Men inner wears. The company
promises best quality and comes competitively priced and ensures complete value
for money. Adonis consists of range of refined vests and briefs, and the Agna, a
range of Bras and panties which ensures seamless and finish.

Markets:

Main markets are:

 North America
 South America
 Western Europe
 Eastern Europe
 Middle East
 Africa
 Oceania
 ECONOMY

1) Bed Sheets:

PRODUCT SIZE MRP

Executive 130cm x 200cm Rs 230/-
Medium 127cm x 200cm Rs 205/-
Medium super 127cm x 200cm Rs 215/-
Standard 127cm x 190cm Rs 180/-
Supreme 127cm x 200cm Rs 215/-
Economy 127cm x 200cm Rs 190/-
Regular 127cm x 185cm Rs 170/-

2) Mulls:

Price ranges from Rs 30 to Rs 100. Mull dhothies are specially designed for
children. Mostly they are selling in local markets. Mull is basically produced in
two classes in the Kitex and they’re:

CLASSES SIZE MRP

Economy 127cm Rs 35/-
Medium 128cm Rs 95/-
 CHAPTER 2
REVIEW OF LITERATURE
The aim of this chapter was to review other studies done in the area of Fringe Benefits
effects on employee productivity. A Theoretical Review (with reference to the
Expectancy Theory, Need Theory and Total Reward Model), Empirical literature review
and a conceptual framework that shows the relationship between the variables was
carried out in the chapter.

1) Miller(2008) in a study on health paid leave benefits has found that health
coverage remains by far the most costly benefits provided to employees more than
one quarter of human resource professionals, 29% indicated their organization now
provide health saving accounts, paid family leaves and paid paternity leave all
declined in 2008 compared with 2007.

2) Giesel(2005) in a study on Newyork city council passes has found that grocery
stores and other retailers that sell groceries to make substantial contributions
toward their employees health insurance coverage costs by the Newyork council,
estimated amount of contribution to each employee per hour, coverage of the
mandate, implications of the legislation for the Employees Retirement Income
Security Act.

3) Hone(2007) in a study on health plans has found that the seven step plan that can
guide companies toward their transformation to consumer driven health plans and
health savings accounts in the US companies should establish at honest assessment
of their health benefits, other fringe benefits and health status. They are also asked
to create a long- term vision with interim and annual goals.

4) Oberoi (2010) in a study on rewards and fringe benefits has found that it is not just
how much reward our staff that matters. Rather, it is what rewards them for how
measure the results of this investment. Variable pay, benefits differentiated rewards
and performance matrices these are all key aspects play the important role in ROI
measurement and essential part of organizations reward architecture. In benefits,
Organization has the mindset that their high performance will only stay with them
if their salary was externally competitive not only on aspects, but also in terms of
benefits and total remuneration.

5) Furtado (2009) in a study on compensation and fringe benefit systems has found
that these systems should be strategically designed for the purpose they are
 intended to plan and the results they are trying to drive. Benefits include health,
retirement and provident fund plans designed to help protect and ensure employees.
Financial security, as well as programmes providing pay for time not worked. Over
a period of time, employee benefits of insurance coverage and some pre- requisite
to a comprehensive range of benefits. Benefit strategy is the one definable link in a
strategic chain. Benefit system is the fundamental part of all organizations. The
companies on the top have better planned and implemented benefit systems.

6) Carter (2002) proposed that fringe benefits are increasingly expensive for
businesses to provide to employees, so the range and options of benefits are
changing rapidly to include, such as flexible benefits plan. For employers, they use
benefits to attract and retain good and talented workers. For employees, they rely
on benefits (for example, medical subsidies, vacations, and retirement) to secure
their financial well-being.

7) Lee, Hsu and Lien (2006) stated that benefits are designed to safeguard employees
and their family against problems due to sickness, sickness, accidents or
retirements. Here, let use some examples of components of benefits to bring out its
effect of employees. Work life balance with regard such as temporal flexibility,
leave benefits, and interpersonal relationships has the potential to reduce or
increase stress on workers with life responsibilities. The provision of work life
balance strategies can provide a positive and direct effect on an employee’s
decision to remain with an employer (Macran, Joshi & Dex, 1996).

8) Millea (2002) reports empirical evidence about the bi-directional relationship

between employee’s benefits and productivity, in particular considering the nature
of the benefits setting process in different countries. The empirical evidence of this
paper as well as that of a more in-depth study for Germany (Millea, 2006) can be
interpreted in the light of efficiency wages, i.e. explaining productivity as resulting
from particular wage levels, for given characteristics of the labour market e.g. the
total level of unemployment. Leaders should try to increase the belief that good
performance will result in valued rewards. Ways of doing so include: measure job
performance accurately; describe clearly the rewards that will result from
successful performance; describe how the employee’s rewards were based on past
performance provide examples of other employees whose good performance has
resulted in higher rewards.
9) Jacoby (1997) most industrialized nations assure the welfare of citizens by these
fringe benefits through government-sponsored systems that provide for the health
and safety of citizens, protecting them from consequences of economic
fluctuations. In contrast, a system of welfare capitalism emerged whereby
employers, rather than the government, played a primary role in assuring the health
and welfare of employees and their families. Fringe benefits encompassed a wide
range of private, firm-level social and benefit policies, including employee
representation, recreation, stock ownership, and benefits relating to retirement,
sickness, paid time off, and unemployment.

10) Dencker, Joshi and Martocchio (2007) argued that individual differences in
benefit preferences emerge from the particular employment relationships with
which individuals have the most experience. For example, older employees likely
experienced or observed the period when career-long employment and cradle-to-
grave benefits were provided by employers. As such, and given that they may have
extensive service with an employer, they may prefer benefits in which the employer
shoulders the risk of economic fluctuations and provides packages with defined
benefits.
11) Goodstein (1994) found that organizations were more likely to adopt work–family
programs when there was a perceived benefit. He showed that the amount of
women in an establishment, and the number of unemployed women in an industry
group, were differentially related to the adoption of work–family programs,
suggesting that organizations adopt these programs to attract and retain women.
While institutional factors were important, so too were technical factors,
suggesting that organizations respond strategically to institutional forces
depending on their particular technical strengths and weaknesses.
12) Deadrick and Gibson (2007) found that the largest gap was in the areas of
compensation and benefits. While employee benefits are recognized as a major area
of HRM practice, HRM researchers generally have not taken adequate steps to
provide research in this area to inform practice. In an era when HRM scholars wish
for greater influence with executives, greater attention by HRM researchers to these
areas of concern among organizational leaders can contribute to elevating the role
and perceived value of HRM.
2.1 THEORITICAL BACKGROUND
What are Fringe Benefits?

Fringe benefits are a type of compensation provided to an employee outside of his

normal wage or salary. Many years ago, employers began to understand that
potential employees give great consideration to the wage or salary offered. In an
effort to tempt a qualified individual to accept employment with the company,
rather than going to a competing company, many employers began offering non-
wage compensation in addition to the actual salary offered. These fringe benefits,
often in the form of employer-paid life and health insurance policies, retirement
benefits, and other things that might aid in the recruitment of top quality, skilled
workers. In fact, fringe benefits play a large role in keeping workers motivated to
do quality work and increase production. In other words, Fringe benefits are an
"add-on" form of employee compensation that employees can offer career
professionals in addition to just a wage or salary.

Definition:

According to Cockman, “Fringe benefits are those benefits which are supplied by
an employer to employee or the benefits of an employee and which are not in the
form of wages, salaries and time rated payments”.

Typical forms of fringe benefits include:

 Medical and dental insurance

 Year-end and performance bonuses
 employer retirement plan, including employee matching contribution plans
 Employee profit sharing
 A company car or SUV
 Housing allowance
 Educational assistance
 Vacation and vacation pay
 Sick days and sick pay
 Free meals, drinks and snacks
 Wellness stipends (like paying for a gym membership)
 Permission to keep your frequent flyer points and card rewards earned on
business trips, which can be used for private trips
  Recently, companies have also started to offer student loan payoff assistance
and free digital devices (think Smartphone and tablet computers) to staffers.
 Also, since telecommuting has become a burgeoning workplace option,
companies are also offering to help workers pay for cable connections and
Smartphone bills.
 Maternity leave and paternity support are also examples of fringe benefits
that weren't around 10 years ago, but are today.

Structurally, employers will provide an employee benefits statement that lists all
the fringe benefits given, and present it to the employee, both for organizational
and tax reasons. That list is generated annually, and includes regular income (i.e.,
an employee's salary or wages).

 It also lists partial payments the employer makes make on benefits like
health and life insurance.

The employee benefits list is also considered by employers as a morale boost and
statement of loyalty to valued employees. Certainly, many career professionals
who receive large fringe benefit packages from their employers feel that way.
Employers also hope that good "word of mouth" kicks in, and that their employees
will tell talented workers at other companies about their company's generosity in
prioritizing fringe benefits, leading to stronger hires, higher employee
performance, and more robust company revenues.

Why Do Companies Offer Fringe Benefits?

Employers load up on fringe benefits because they have to - it's simply the cost of
doing business and remaining competitive in their industry. Talented career
professionals have all kinds of employment landing spots, especially since the
economy has been on the upswing. To attract that talent, companies have to offer
lucrative employment compensation package that includes an ample salary and
most - or all - of the fringe benefits listed above. If they don't, their competitors
will, and could load their own firms up with talented, game-changing engineers,
accountants, or sales professionals (among many other vocations) who can
significantly and positively impact on the hiring company's bottom line. Studies
show that career professionals place a great value on employee compensation that
goes beyond salary and wages. Plenty of valued employees have moved on from a
company if they don't seem the fringe benefits sufficient, and go to a company
where ample employee compensation is a big priority.
 CHAPTER 3
RESEARCH METHODOLOGY
RESEARCH
Research is a systematic inquiry to describe, explain, predict and control the
observed phenomenon. It is a systematic investigation and study of materials and
sources in order to establish facts and to reach at new conclusions.

RESEARCH METHODOLOGY
Meaning

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done systematically. In
this, we study the various steps that are generally adopted by a researcher in
studying his research problem along with the logic behind them.

Definition

According to Abraham Kaplan, “Research methodology is the description,

explanation and justification of various methods of conducting research”

RESEARCH DESIGN
A research design is defined as “the orderly arrangement of elements and
conditions for the collection and analysis of data in a manner that aims to combine
relevance to the research objectives with economy in procedure”.

DESCRIPTIVE RESEARCH DESIGN

Descriptive research is concerned with the detail description of certain functional

variables and characteristics of a problem situation. Since, it is concerned with the
explanation of the problem situation and allied variables it is rather called as
explanatory research.

SAMPLING TECHNIQUE
SAMPLING

Sampling is the act, process, or technique of selecting a suitable sample, or a

representative part of a population for the purpose of determining parameters or
characteristics of the whole population.
Convenience sampling technique is being used here.

CONVENIENCE SAMPLING

Convenience sampling or chunk sampling: Here, chunk is a convenient slice of

population that is commonly referred to as a sample. It is obtained by selecting
convenient population units into sampling space.

POPULATION
A population or universe is a group of individuals, objects, or items from which
samples are taken for measurement, for example, a population of books or
students, i.e. all items in any field of enquiry constitute the universe. The
population of the study was employees.

SAMPLE SIZE
The number of sampling unit selected from the population is called the size of the
sample. The respondent for the study were 50.

TITLE OF THE STUDY

A study on various Fringe benefits provided to employees with reference to Kitex
Limited Kizhakkambalam, Ernakulam.

PERIOD OF STUDY
The study was conducted for one month from 1st December2018 -31st December
2018.

SOURCES OF DATA
1. PRIMARY DATA:

The only method through which primary data was collected from the HR
department of the company is through direct interviews with the officers and
workers working in the personnel department. Questionnaires were prepared,
distributed and they were directly collected from the employees.
 2. SECONDARY DATA:

Most of the data i.e. about 90% is collected through secondary source. They are as
follows:

 Company books
 Reports
 Magazines
 Internet

TOOLS FOR DATA ANALYSIS

 Bar diagrams
 Pie diagrams
 Column diagrams

STATISTICAL TOOLS USED FOR THE STUDY

PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio. Percentages are used in making

comparison between two or more series of data. Percentage can also be used to
compare the relative terms, the distribution of two or more series of data. The easy
and simplicity of calculating, the general understanding of its purpose and the
universal applicability of the percent static have made it most widely and
standardized tool in researchers.

In this project, percentage method test was used. The percentage method is used to
know the accurate percentage of the data we took. It is easy to graph out through
the percentages. The following is the formula:
Number of respondents
Percentage (%) = 𝐱 100
total number of respondents
 3.1 OBJECTIVES OF THE STUDY
3.1.1 PRIMARY OBJECTIVE

To study various fringe benefits provided to the employees with reference to Kitex
Limited, Kizhakkambalam, Ernakulam.

3.1.2 SECONDARY OBJECTIVES

 To find out the employees attitude towards the prevailing fringe benefits
provided by the company.
 To analyse the effectiveness of these fringe benefits among the employees.
 To analyse the industrial relationship existing between the management and
the employees of the company.
 To study about the social security measures by the employees.
 To analyse the implementation of personnel policies of the company.
 To study whether these helps to retain the employees in the company.
 3.2 SCOPE OF STUDY
The study was conducted at KITEX Limited Ernakulam. This study aims to
evaluate the various fringe benefits provided to the employees by the company.
Through this analysis, we can find out the above mentioned objectives of the study
and interpret the results.
 3.3 LIMITATIONS OF THE STUDY
1) The study mainly depends on secondary data.
2) There were restrictions regarding the primary data, as to maintain secrecy on
various matters relating to the business.
3) Although there were sufficient supports from the staff of the company, a
tight work schedule prevented them from giving additional information.
4) The study is made about only one enterprise and therefore inter-firm
comparison is not possible.
5) Personal bias can be there for the employees.
6) Time was a constraint as there was only one month for the entire data
collection; hence a detailed study was not been able to be made.
 CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
4.1 NUMBER OF INTERVAL TIMES PROVIDED
Table 4.1

SI.No. Particulars No. of respondents % of respondents

1 2 38 76
2 3 12 24
3 More than 3 0 0
Total 50 100
Data Source: Primary data

24

2
3
more than 3

76

Figure 4.1

INTERPRETATION

From the above table, 76% of the respondents are getting 2 interval times and 12%
of respondents get 3 interval times.
4.2 WAGE FIXATION OF THE COMPANY

Table 4.1

SI.No. Particulars No. of respondents % of respondents

1 Highly satisfied 41 82
2 Satisfied 7 14
3 Not Satisfied 2 4
Total 50 100
Data Source: Primary data

82

highly satisfied
Satisfied
Not satisfied

14

Figure 4.2

INTERPRETATION

From the above table, 82% of the respondents are highly satisfied with the overall
wage fixation of the company, 14% of the respondents are satisfied and the
remaining 4% are not satisfied.
4.3 HOLIDAY PACKAGES

Table 4.3

SI.No. Particulars No. of respondents % of respondents

1 Yes 44 88
2 No 6 12
Total 50 100
Data Source: Primary data

3.2

Yes
No

88

Figure 4.3

INTERPRETATION

From the above table, it is clear that 88% of respondents agrees that the company
provides holiday packages and while the remaining 12% disagrees.
4.4 OPINION ABOUT THE CANTEEN FACILITIES

Table 4.4

SI.No. Particulars No. of respondents % of respondents

1 Excellent 46 92
2 Average 2 4
3 Below Average 2 4
Total 50 100
Data Source: Primary Data

100
92
90

80

70

60

50

40

30

20

10 4 4
0
Excellent Average Below average

Figure 4.4

INTERPRETATION

From the above table, out of 100%, 92% of the respondents have chosen for the
opinion about the canteen facility as excellent, while 4% have chosen for average
and the other 4% have gone for the option below average.
4.5 EDUCATIONAL ALLOWANCES FOR CHILDREN

Table 4.5

SI.No. Particulars No. of respondents % of respondents

1 Scholarships 33 66
2 Sponsorships 11 22
3 Tuition 6 12
Total 50 100
Data Source: Primary Data

12

22 Scholarships
Sponsorships
Tuition

66

Figure 4.5

INTERPRETATION

From the above table, 66% of the respondents chosen for scholarship, 22% of the
respondents have chosen for sponsorships and the remaining 12% have chosen for
the 3rd option, tuition.
4.6 NUMBER OF LEAVE FACILITIES

Table 4.6

SI.No. Particulars No. of respondents % of respondents

1 Once in a month 16 32
2 Twice in a month 31 62
3 More than 2 3 6
Total 50 100
Data Source: Primary Data

70
62
60

50

40
32
30

20

10
3
0
Once in a month Twice in a month More than 2

Figure 4.6

INTERPRETATION

From the above table, 32% of the respondents have chosen the option ‘once in a
month’, 62% have chosen twice in a month and 3% have gone for the option ‘more
than 2’.
4.7 MEDICAL INSURANCE

Table 4.7

SI.No. Particulars No. of respondents % of respondents

1 Yes 48 96
2 No 2 4
Total 50 100
Data Source: Primary Data

Yes
No

96

Figure 4.7

INTERPRETATION

From the above table, 96% of the respondents says ‘yes’ about the providing of
medical insurance and 4% stated ‘No’ to the question.
4.8 EMERGENCY MEDICAL AIDS

Table 4.8

SI.No. Particulars No. of respondents % of respondents

1 Highly satisfied 43 86
2 Satisfied 5 10
3 Not Satisfied 2 4
Total 50 100
Data Source: Primary Data

86

highly satisfied
Satisfied
Not satisfied

10
4

Figure 4.8

INTERPRETATION

The above table states that 86% of the respondents are highly satisfied with the
emergency medical aids provided by the company where 10% are chosen the
option satisfied and the remaining4% are not satisfied with the medical aids
provided.
4.9 BASIS OF PROMOTION

Table 4.9

SI.No. Particulars No. of respondents % of

respondents
1 Experience 20 40
2 Educationalqualification 29 58
3 Performance Appraisal 1 2
4 Others 0 0
Total 50 100
Data Source: Primary Data

40
Experience
Educational qualification
Performance appraisal
Others
58

Figure 4.9

INTERPRETATION

From the above table, it is clear that the majority of the respondents (58%) have
chosen the basis of promotion as educational qualification, 40% have chosen
experience and 2% have gone for performance appraisal.
4.10 UNIFORMS PROVIDED FOR WORKERS

Table 4.10

SI.No. Particulars No. of respondents % of respondents

1 Yes 38 76
2 No 12 24
Total 50 100
Data Source: Primary Data

No 24

Yes 76

0 10 20 30 40 50 60 70 80

Figure 4.10

INTERPRETATION

From the above graph, 76% of the respondents have gone for the option ‘Yes’ and
the remaining 24% have chosen ‘No’.
4.11 EXTRA WORKING HOUR WAGES

Table 4.11

SI.No. Particulars No. of respondents % of respondents

1 Highly satisfied 39 78
2 Satisfied 5 10
3 Dissatisfied 6 12
Total 50 100
Data Source: Primary Data

12

10

Highly satisfied
Satisfied
Dissatisfied

78

Figure 4.11

INTERPRETATION

From the above table, it is clear that the wages paid for extra time working is
highly satisfied by 78% of the respondents, where 10% of them are satisfied and
12% are dissatisfied.
4.12 PENSION

Table 4.12

SI.No. Particulars No. of respondents % of respondents

1 Yes 47 94
2 No 3 6
Total 50 100
Data Source: Primary data

No 6

Yes 94

0 10 20 30 40 50 60 70 80 90 100

Figure 4.12

INTERPRETATION

From the above table, it is clear that 94% of the respondents are chosen ‘yes’ and
the remaining 6% have chosen ‘No’.
4.13 GRATUITY SCHEMES

Table 4.13

SI.No. Particulars No. of respondents % of respondents

1 Retrenchment 9 18
compensation
2 Retirement benefits 41 82
3 Gifts 0 0
Total 50 100
Data Source: Primary Data

0
18

Retrenchment compensation
Retirement benefits
Gifts

92

Figure 4.13

INTERPRETATION

From the above table, it is clear that 18% of the respondents have selected
retrenchment compensation and the 92% have chosen retirement benefits.
4.14 LOAN FACILITIES

Table 4.14

SI.No. Particulars No. of respondents % of respondents

1 Yes 50 100
2 No 0 0
Total 50 100
Data Source: Primary Data

No

Yes 100

0 20 40 60 80 100 120

Figure 4.14

INTERPRETATION

From the above table, 100% of respondents have chosen the option Yes.
4.15 WORKING CONDITION

Table 4.15

SI.No. Particulars No. of respondents % of respondents

1 Poor 0 0
2 Average 0 0
3 Good 3 6
4 Very good 19 38
5 Excellent 28 56
Total 50 100
Data Source: Primary Data

0 6

Poor
average
38 good

56 very good
excellent

Figure 4.15

INTERPRETATION

From the above table, it is clear that 56% of the respondents are chosen excellent,
38% of the respondents are chosen with a very good, 6% of the respondents are
chosen with good.
4.16 TRANSPORTATION FACILITIES

Table 4.16

SI.No. Particulars No. of respondents % of respondents

1 Yes 50 100
2 No 0 0
Total 50 100
Data Source: Primary Data

No 0

Yes 100

0 20 40 60 80 100 120

Figure 4.16

INTERPRETATION

From the above table, it is clear that 100% of the respondents are chosen with the
option ‘Yes’.
4.17 HOSTEL FACILITIES

Table 4.17

SI.No. Particulars No. of respondents % of respondents

1 Cottage 4 8
2 Dormitorary 34 68
3 Flat 12 24
Total 50 100
Data Source: Primary Data

24

Cottage
Dormitorary
Flat

68

Figure 4.17

INTERPRETATION

From the above table, it is clear that 68% of the respondents have chosen
dormitorary, 24% have chosen the option flat and the remaining 8% have chosen
cottage.
4.18 PATERNAL LEAVES

Table 4.18

SI.No. Particulars No. of % of

respondents respondents
1 Yes 37 74
2 No 13 26
Total 50 100
Data Source: Primary Data

No 26

Yes 74

0 10 20 30 40 50 60 70 80

Figure 4.18

INTERPRETATION

From the above table, it is clear that 74% of the respondents have chosen
the option Yes and the remaining 26% have chosen No.
 4.19 EMPLOYMENT OPPORTUNITIES IN THE EVENT OF
DEATH OR RETIREMENT

Table 4.19

SI.No. Particulars No. of respondents % of respondents

1 Yes 50 100
2 No 0 0
Total 50 100
Data Source: Primary Data

Yes
No

50

Figure 4.19

INTERPRETATION

From the above table, it is clear that 100% of the respondents have chosen the
option yes.
4.20 SATISFACTION LEVEL OF PROVIDENT FUND SCHEMES

Table 4.20

SI.No. Particulars No. of respondents % of respondents

1 Highly satisfied 32 64
2 Satisfied 11 22
3 Dissatisfied 7 14
Total 50 100
Data Source: Primary Data

Dissatisfied 14

Satisfied 22

Highly satisfied 64

0 10 20 30 40 50 60 70

Figure 4.20

INTERPRETATION

From the above table, it is clear that 64% of the respondents have chosen the
option highly satisfied, 22% have chosen satisfied and the remaining 14% has
chosen the option dissatisfied.
4.21 EXTRA ALLOWANCES DURING FESTIVALS

Table 4.21

SI.No. Particulars No. of respondents % of respondents

1 Yes 50 100
2 No 0 0
Total 50 100
Data Source: Primary Data

Figure 4.21

INTERPRETATION

From the above table, it is clear that 94% of the respondents have chosen the
option Yes and the remaining 6% have chosen the option No.
 CHAPTER -5

FINDINGS, SUGGESTIONS AND

CONCLUSION
 FINDINGS

 Majority of the employees in the company are in between the age of 30-40.

 Majority of the employees are married.

 Most of the employees have an experience of 4 -5years.

 From the study, it is clear that most of the employees (76%) get 2 interval

times during their working hours.

 Majority (82%) of the employees are highly satisfied with the wage fixation

in the company.

 From the study, (88%) it is clear that the company provides holiday

packages to the employee’s family.

 Majority (92%) of the employees suggested that the canteen facilities as an

excellent one.

 From the study, it is clear that the employee’s children get benefits from the

company like Sponsorships and Scholarships.

 Majority (62%) of the employees agreed that the company provides leave

facilities twice in a month.

 Majority (96%) of the employees have agreed that the company gives

medical insurance to them.

 Majority (86%) of the employees are highly satisfied with the emergency

medical aids provided by the company.

 From the study, it is clear that the process of promotion is based on

educational qualification and experience of the employees.

 Majority (76%) of the employees are provided with uniforms and other

amenities for their safety and well being.

 Majority (78%) of the employees are highly satisfied with the wages given

for working extra hours.

 From the study, it is clear that the company provides pension fund to the

employees.

 From the study it is clear that the company provides the employees with

Gratuity schemes like Retrenchment compensation and Retirement benefits.

 Majority, i.e. (100%) of the employees are often provided by the company
with immediate loan facilities.
 Majority (56%) of the employees gave the excellent option for the working
conditions of the company.
 Majority (100%) of the employees are provided with good transportation
facilities by the company.
 From the study it is clear that various types of hostel facilities like
dormitorary, flat and cottages are provided by the company.
 Majority (74%) of the employees get paternal leaves provided by the
company.
 From the study it is clear that the company often provides employment
opportunities for their children at the time of retirement or in the event of
death.
 Majority (64%) of the employees are highly satisfied with the provident fund
schemes given by the company.
 From the study, it is clear that the company provides employees extra
allowances during the festival seasons.
 SUGGESTIONS

 The company should add more fringe benefits like VRS, deposit linked

insurance, etc for their well being.

 The company can give employee counselling for the betterment of the

employees and this can help in increasing their productivity.

 Providing competitive benefits can increase their job satisfaction.

 Giving adequate leave facilities with allowances can motivate the employees .
 CONCLUSION

The research has made an attempt to find out the various fringe benefits provided

to the employees in Kitex Limited Kizhakkambalam. The company is engaged in

the production of cotton and the other blends. The Kitex range of manufacturing in

the multi core factory is a popular brand that is recognized not just with in India,

but abroad too for catering to the fashion conscious market across the world made

from100% combed cotton.

The study has been concluded with the conclusion that the various fringe benefits

provided by the company are highly satisfied by the employees and their attitude

towards these benefits is positive and these fringe benefits help to retain the

employees in the company.

 BIBLIOGRAPHY

1) Kitex Limited, Kizhakkambalam P.O, Ernakulam

2) Personnel Management and Industrial relations by S Chand
Publications
3) Human Resource Management by Shashi K Gupta And Rosy Joshy
4) Research methodology, methods and techniques by C R Kothari

Websites
1. Definition
 https://www.merriam-webster.com/dictionary/fringe%20benefit
 https://justworks.com/blog/ins-outs-fringe-benefits-exactly
2. www.annagroup.net
3. www.kitexlimited.com
 QUESTIONNAIRE

I, Varuna Thomas, do submit this questionnaire as a part of my project with all the
knowledge about my topic “A STUDY ON VARIOUS FRINGE BENEFITS
POVIDED TO THE EMPLOYEES WITH SPECIAL REFERENCE TO
KITEX LIMITED, KIZHAKKAMBALAM, ERNAKULAM”

Name:

Designation:

Year of experience:

1) How many interval times are given for your work?

2 3 more than 3

2) Are you satisfied with the wage fixation in your company?

Highly satisfied satisfied Not satisfied

3) Does the company provide holiday packages to your family?

Yes No

4) What is your opinion about the canteen facilities?

Excellent Average Below average

5) Does your children get any educational allowances in the form of:
Scholarships Sponsorships Tuition

6) Does the company provide leave facilities?

Once in a month Twice in a month More than 2

7) Does the company give medical insurance to you?

Yes No

8) Are you satisfied with the emergency medical aids provided by the company?
Highly satisfied Satisfied Not Satisfied
9) Promotion is based on:
Experience Educational qualification Performance Appraisal

Others

10) Uniforms are provided?

Yes No

11) Are you satisfied with the wages given for working extra hours? (If any)
Highly satisfied Satisfied Dissatisfied

12) Does the company give pensions?

Yes No

13) Is there any following Gratuity schemes are provided?

Retrenchment compensation Retirement benefits Gifts

14) Does the company provide immediate loan facilities?

Yes No

15) What rating can be given for the working conditions?

Poor Average Good Very good Excellent

16) Does the company provide any transportation facilities?

Yes No

17) What kinds of hostel facilities are provided by the company to you?
Cottage Dormitorary Flat

18) Does the company provide paternal leaves to you?

Yes No
19) Does the company provide employment opportunities for your children at
the time of retirement or in the event of death?
Yes No

20) Are you satisfied with the provident fund schemes given?
Highly satisfied Satisfied Dissatisfied

21) Does the company provide extra allowances during festival seasons?
Yes No

22) What are the other fringe benefits you expect? (Mention if any)
_____________________________________________