Equiplus India

Automated Payroll & Compliance for a Large-Scale Exporter

Integrated Business Solutions

Client Overview

Based in Kanpur, Equiplus India is a major 100% export-oriented manufacturer of sports, equestrian, and pet accessories for a global clientele. The company’s large-scale operations are defined by:

Facility: A 160,000 sq. ft. vertically integrated plant.
Production Capacity: 450,000 units per month.
Key In-House Capabilities: 100,000 meters/month of quilting and 52 tons/month of polyfill manufacturing.

The Challenge: Navigating HR Complexity with Fragmented Systems

As Equiplus scaled globally, they recognized the need for a more unified systems architecture. The company’s existing processes, while functional, resulted in fragmented data streams and a high degree of manual coordination, particularly in human capital management. This presented both significant risks and a clear opportunity for digital transformation.

The core challenges included:

Complex Workforce Structure: The company managed four distinct employee categories (Bank, Monthly Cash, Daily Wage, Trainee), each with a different payment structure and cycle, making manual payroll a logistical nightmare.
Error-Prone Attendance Policies: Highly specific rules—such as penalizing the third late entry or third short leave with a half-day deduction—were tracked manually, causing errors and employee disputes.
Payroll Calculation Discrepancy: A key challenge was a discrepancy in the payroll logic where deductions were calculated against an employee’s Cost to Company (CTC) instead of Gross Salary, impacting take-home pay and presenting potential compliance and reputational challenges.
HR Blind Spots: The lack of a centralized HR system meant management could not easily track attrition trends, analyze workforce data for strategic planning, or gain clear insights into labor costs and compliance.

Our Solution: A Specialized HR & Payroll System with Frappe HRMS

Our team at Auriga IT architected and implemented a specialized HR and Payroll solution leveraging Frappe HRMS to create a single source of truth for all of Equiplus’s employee data. We focused on solving their most critical human capital pain points with targeted, custom development.

The Strategic Advantage of a Low-Code Platform

We chose the Frappe low-code framework for its strategic advantages, allowing us to:

Develop with Speed: Rapidly build and deploy custom modules for Equiplus’s unique attendance and verification needs.
Customize without Compromise: Create a bespoke solution that perfectly matches their workflows, unlike rigid off-the-shelf products.
Deliver Value Efficiently: Provide a powerful, scalable system without the high costs and long timelines of traditional development.

The solution focused on:

Automated Payroll and Attendance: We integrated the system with Equiplus’s biometric devices to fully automate attendance tracking. Our team built custom rules to apply all complex leave and late-entry policies automatically, ensuring fairness and accuracy. This also provided key stakeholders with a real-time dashboard to view daily attendance, including live counts of present, absent, and on-leave employees.

Ensuring Statutory Compliance and Payroll Accuracy: We re-engineered the core payroll logic to calculate deductions correctly based on Gross Salary. Furthermore, we built in robust, automated calculations for all mandatory statutory deductions to ensure full compliance with Indian law. This includes:
- Employees’ Provident Fund (EPF): Automatic calculation of both employee and employer contributions based on the latest statutory rates.

Ensuring Statutory Compliance and Payroll Accuracy

- Employees’ State Insurance (ESI): The system accurately identifies eligible employees and applies the correct contribution percentages.
- Tax Deducted at Source (TDS): Integrated tax slab management (for both old and new regimes) to ensure precise tax deductions based on each employee’s declarations.
Enhanced Security and Insight: We implemented new modules for Gate Passes and Overtime. A key feature we developed was an automatic check of an applicant’s Aadhar number against past employee records during onboarding, providing valuable insight into attrition and re-hiring patterns.

Employee Empowerment: We developed a Progressive Web App (PWA) to give employees self-service access to their salary slips and leave balances. This transparency was a key part of our strategy to build trust in the new system.

Project Outcomes: Driving Transformation and Value for Equiplus

The specialized HR solution delivered by Auriga IT fundamentally transformed Equiplus India’s human capital management, replacing manual chaos with automated precision.

Achieved 100% Payroll Accuracy and Compliance: The automation eliminated manual errors, and our correction of the CTC deduction flaw, combined with accurate statutory calculations, mitigated all legal and financial risks.
Reduced Administrative Overhead: The HR team was freed from tedious manual tasks, allowing them to focus on strategic initiatives like employee engagement and talent development.
Gained Critical HR Insights: With a unified source of truth for all employee data, management could finally make data-driven decisions about their workforce, with clear visibility into attendance patterns, leave liabilities, and attrition.

By unifying its HR data and automating its complex payroll and attendance processes, the solution we delivered has provided Equiplus India with a robust, compliant, and scalable digital foundation for managing their most valuable asset: their people.