Ashraf Sugar Mill

7/30/2019 Ashraf Sugar Mill

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NTRODUCTION

Sugar is one of the essential commodities of life and plays important role in the dietary of human beings.

It is the cheapest food for purchasing energy as an Anna (1/16 of rupees) would buy 545 calorie when

laid out on sugar as against 395 for bread, 182 for cheese and 190 for milk. In addition to an essential

energy. It is the cheapest and most abundant pure organic chemical available to so many other industries

as it is put to a wide variety of industrial use. e.g. in hair tonics, shoe polishes, photographic material

explosives, tanning leather and silvering mirrors etc. It serves as a starting material for the synthesis of

vitamin B2, also.

There are different sources from which sugar is manufacturing, but sugar cane and sugar beets are the

main sources of the word sugar supplies. Commercial sugar are also obtained from other plants such as

maple, palms, coconuts and apple etc but only in negligible quantities, sugarcane, however, furnished

almost two-third of world sugar supplies. Sugarcane, besides sugar, yield many other product like fiber

molasses, industrially important acids and valuable maxise.

HISTORY OF SUGAR

The origin of English word sugar can be traced back to age old Hindu civilization, when words like

Sharkara. In Sansikrat and Sansikrat and Sakkara in prakrit existed to convey the same sense.Then it

may be traced through all the Aryana languages, as schaker in Persian, sukkar in Arabic, sincer in

Assyrian, zucchero in Italian, sucre in French, zucher in German, saccharum in Latin and ozucarin

Spanish etc stand as Testimony for its origin from sharkara.

It would thus clear that India is the birth place of the manufacturing of sugar from sugarcane.The history

of modern sugar industries in India may be said to begain from 1932. Five factories, however, were

started in 1932-1935 but excepting one, at Rahwali, all other enterprises failed due to their uneconomic

size. Inadequate sugar cane supplies and inefficient management.

At the time of partition we had the only factory at Rahwali in the Punjab. Hence we had to start with a

scarth. Punjab is the second largest sugar cane growing province in Indo-Pakistan sub-continent.Now

update position of sugar industries in Pakistan is 38 sugar factories in Punjab and 31 in Sindh and 6 in

NWFP and Pakistan is now exporting sugar to other countries.

DETAIL OF SUGAR MILLS IN PAKISTAN

PUNJAB

1. Adam Chishtian Bahawalnagar

2. Ashraf Ashrafabad Bahawalpur

3. Baba Farid Okara Okara

4. Brothers Pattoki Kasur

5. Chanar Tandlianwala Faisalabad

6. Choudary Pensara Road Gojra7. Chistia Sillianwali Sargodha

8. Crescent Nishatabad Faisalabad

9. Fatima Kot Addu Muzaffarghar

10. Fauji Sheikhupura Sheikhupura

11. Fecto Darya Khan Bhakkar

Gojra Sam Gogra Faisalabad

13. Haseeb Waqas Mirajabad Nankana Sahib

14. Husein Jaranwala Faisalabad


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15. Hyesons Jetha Bhutta Rahimyar Khan

16. Ittefaq Sahiwal Sahiwal

17. JDW Mouza Sharin Rahim Yar Khan

18. Kamalia Kamalia Tobatek singh

19. Kohinoor Jauharabad Khushab

20. Layyah Layyah Layyab

21. National Sargodha Sargodha

22. Noon Bhalwal Sargodha

23. Pasrur Pasrur Sialkot

24. Pattoki Pattoki Kasur

25. Phalia Karmanwala Gujrat

26. Punjab Man Channu Khanewal

27. Pahirianwali Lalian Jhang

28. Ramzan Chiniot Sargodha

29. Shahtaj Mandi Bahauddin Gujrat

30. Shakarganj Jhang Jhang

. Sheikhoo Kot Addu Muzafargarh

32. Tandlianwala Kanjwani Faisalabad33. United Sadiqabad Rahimyar Khan

34. Indus Kot Bahadur Rajan Pur

35. Madina Chattah Khankah Hafizabad

36. Qand Ghar Shahkot Faisalabad

37. Yousaf Shahpur Sargodha

SINDH

38. Al-Abbas Mirwah Gorchani Mirpurkhas

39. Al-Asif Garho Thatta

40. Al-Noor Moro Naushero Feroz

41. Ansari Tando M.Khan Hyderabad

42. Army Welfare Badin Badin

43. Bawany Talhar Badin

44. Dadu Piarogoth Dadu

45. Dewan Budho Talpur Thatta

46. Faran Sheikh Bhirkio Hyderabad

47. Fauji-Kho Khoski Badin

48. Fauji TMK Tando M. Khan Hyderabad

Habib Nawabshah Nawabshah

50. Kiran Rohri Sukkur

51. Khairpur Khairpur Khairpur

52. Larr Sajawal Thatta

53. Matiari Matiari Hyderabad

54. Mehran Tando M. Khan Hyderabad55. Mirpurkhas Mirpurkhas Mirpurkhas

56. Mirza Kadhan Badin

57. Pangrio Deh Rajauri-2 Badin

58. Sakrand Sakrand Nawabshah

59. Sanghar Sindhri Sanghar

60. Shahmurad Jhok Sharif Thatta

61. Sindabadgar Deenpur Hyderabad

62. Thatta Deh Bijoro Thatta


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63. Consolidated Ranipur Khairpur

64. Larkana Naudero Larkana

N.W.F.P

65. Bannu Sarai Naurang Bannu

66. Chshma D.I. Khan D.I. Khan

Frontier Takht-I-Bhai Mardan

68. Khazana Peshawar Peshawar

69. Premier Mardan Mardan

70. Saleem Charsadda Charsadda

AZAD KASHMIR

71. Mian Mohammad Mirpur Azad Kashmir

Introduction to Organization:

The company was incorporated in Pakistan on September 19, 1964 as a public limited company and is

listed at Karachi and Lahore stock exchanges of Pakistan. The company is principally engaged in the

manufacture and sale of sugar. The company has set up a Particle Board unit. It is situated in Darya

Khan.

SHARE CAPITAL &RESERVES

Authorized capital

15,000, 000 SharesOf Rs. 10 each Rs. 150, 000, 000

Issued, subscribed and paid up capital Rs. 50, 297, 280

Main product:The main product of the Chashma Sugar Mills is white crystalline sugar.

BY PRODUCT:

The by products are following

1 BAGGASSES2 MALLASSES3 PRESS MUD


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DEPARTMENTS OF the ORGANIZATION

There are six main departments in Indus Sugar Mills.

i) Cane Department

ii) Mechanical Deptt.

iii) Chemical Deptt.

iv) Electrical Deptt.

v) Accounts Deptt.

vi) Administration Deptt.

Companys Information:

CHAIRMAN: MR. GHULAM MUHAMMAD A. FECTO

BOARD OF DIRECTORS: CHIEF EXECUTIVE

MR. MUNAWAR ALI FECTO

DIRECTORS

MR. KAISER MAHMOOD FECTO

MRS. ABIDA BANO

DR. ABDUL WAHID MUHAMMAD

MR. SAID AHMED

MR. YAHAYA AHMED BAWANYMR. JAMES T. RICHARDS

MR. FAZLUR REHMAN

MR. MUHAMMAD ASEED AKHTAR (SLIC)

SECRETARY: MR. MUHAMMED ANWAR NATHANI (ACA)

AUDITORS: M/S. HYDER BHIMJI & CO

(Chartered Accountants)


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M/S. A. R. DIWAN & CO.

(Chartered Accountants)

BANKERS: MUSLIM COMMERCIAL BANK LTD.

HABIB BANKLTD.

REGISTERED OFFICE: 1ST FLOOR, PANORAMA CENTRE,

RAJA GHAZANFAR ALI KHAN ROAD,

KARACHI-75530

ZONAL OFFICE: 1ST FLOOR, NAWA-E-WAQT HOUSE,

4-SHAHRAH-E-FATIMA JINNAH

LAHORE.

MILLS: DARYAKHAN (DISTT: BHAKKAR)

Part two

Company Management System

ORGANIZATIONAL STRUCTURE


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CHAIRMAN

M.D. (Managing Director)

Board of Directors

G.M.

---------------------------------------- G.M. G.M. G.M. Manager

(Cane) (Tech.) (Production Administration

-------------Technical Commercial Plant Production Electrical

Manager Manager Manager Manager Manager

Chief Engineer

---------------------------- Shift Engineer Senior Engineer

Administration Department

I worked in this department for 10 days. The head of this department is known as General Manager

(Admin). Presently


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Ch.M.Safdar is the head of this department. He keeps all the record of the office. There is one senior

personnel officer, one security officer and two senior clerk and the other dispatch clerks working in the

office.

The senior clerk has the duty of keeping personal files of employees. He also keeps some other

necessary files, which can be produced on demand. The dispatch clerk has the duty to give dispatch

numbers to letters, orders and correspondent of the mill. Timekeeper is supposed to keep record of

employees time of entering and leaving the mill. Security officer is responsible for all the securityrequirements of the company.

ACTIVITIES OF ADIMINISTRATION DEPARTMENT

1RECRUITMENT, SELECTION AND RETRENCHMENT OF EMPLOYEES

2MAINTENANCE OF PERSONAL RECORD

3TIME OFFICE MANAGEMENT

4 Interactions with following govt. department:Social security

Employee old age benefit

Labor department

Liaison with local administration

Worker welfare programme

programme arrangement for company executives

7. Mail receiving and distribution

8Legal matters

9Supervision of faire price shops10AUTHORIZING DISPATCH SALES


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11. SUPERVISION OF PLANTATION

12. ENTERTAINMENT OF VISITORS

Labor and personal department

Labor and personal department may be considered as the heart of any organization. The head of this

department is called labor officer. This department includes

Supervisor

Senior officer

Junior clerks

These employees are under the control of labor officer and are accountable to him. The function of

supervisors is to supervise all the activities of the other clerks. They are responsible to maintain all therecords of this department. If the labor officer is in need of any old record he produce it to him.

I worked in this department for the period of one week and observed all the information in detail.

Functions of Labor and Personal Department

1APPOINTMENTThis department has a special policy for the appointment of employees the labor department advertises

information of general public. usually the advertisement consists of posts for which the application are

required, pay, other allowances if any, qualifications for the candidates, and last date for the receipt of

application. On the expiry of the last date for the receipt of application from the candidates at merit list is

prepared and only those candidates are called for interview that are considered suitable for the post. On

the date of interview managing director of the project, manager, the head of the department in which the

vacancy exist conduct the interview. There is also written test and medical test for the candidates to be

selected for the post. The candidate who is declared medically fit and also considered suitable for the

post is then selected for the post on the terms and conditions decided with the applicant. The labor

personal department issues the orders of the appointment with the approval of the project manager.

2 PROMOTION

The promotion of employees depends upon the seniority of the employee. When vacancy of higher post

occurs the senior most person is promoted first to fill up the vacant post.

In this project all permanent employees are provided 50%chance of promotion. For example two postsare lying vacant in any department, the first post is filled up from temporary or the manager selects direct

new person for the post. Moreover the seniority of all confirmed employees is considered from the date of

regular appointment. In a case of two or more appointments are made at the same date, then their

seniority is accounted from the dispatch number of the order of the appointment respectively.

In case of vacancy in any department, all the employees of the department are equally considered to be

promoted to that post the employees who is the most senior and who have got the necessary qualification

for the post promoted to that post. If any employee is the senior most but does not posses the required

qualification he is not to be promoted and the next senior one who have the required qualification is


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promoted to the post.

In case of transfer of employee from one department to the other department or from one section to the

other section a seniority of employee for promotion is considered of appointment and confirmation. It is

not to be considered from the date on which the employee has been transferred.

3Punishment

All the employees are required to obey and abide the rules and regulations of the project. Violation of

rules and regulations by the employees is considered as misconduct of the employees and consequently

leads to the punishment.

The following acts of the employees are considered to be a violation of the law.

1.disobedience to the supervisors2. refusal to obey the lawful orders of the supervisors3. taking or giving bribes

3. to damage the property of the factory5. absence without leave from the factory6. late arrival in the office7. found sleeping during the working hours8. found absence from the work for one or two hours

Any employee who is found guilty of the above miss conducts, action may be taken against him, which

leads to the following punishments

1. the management will issue a warning to the employees to be careful for future and not to repeat thisaction or otherwise he will be punished.

2. some time the management makes deduction from the salary.

3. some time the management will hold the increments or promotions for a certain period of time. Theynot give them increment and promotion during that a period of time

4. some time he his demoted to the lowerpost

5. in case of serious miss conduct the management will dismiss him from the services.

The head of the department to which the guilty employee is concerned sends the case of employee to the

personal department. The personal department will call for his explanation and the employee will explainhis position in the light of charge framed against him within a specified period of time. The explanation is

received from the employee and then the case of the employee with explanation is forwarded to the

project manager for the final decision. If the employee is found guilty he is punished otherwise the case is

dropped by the project manager.

4Transfers

One of the functions of this department is the transfer of employees. Usually the employees are not


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transferred from one department to the other department. But if any employee of a department wants to

transfer to another department consent of the department is essential. After positive reply from both

departments i.e. the department from which he wants to be transferred and the department to whom he

want to be transferred. The case is transferred to the project manager who posses the transfer orders.

Leave procedure

The following leaves are allowed to the employees of the mill.

1CASUAL LEAVE2MEDICAL LEAVE3LAVE WITHOUT PAY

There are special rules and regulations for leaves made be the factory. These rules are applied to each

employee of the mill.

The explanation of above leaves are as followed a. casual leave

ACASUAL LEAVEThe project manager grants the casual leave. The leave is allowed only to the permanent employees of

the project. Every employee has the right to avail ten days casual leave per annum, Three days at a time

is the maximum ceiling for the leave.

BMEDICAL LEAVE

This leave is also allowed to the permanent employees. This leave can be granted on the basis of

medical certificate issued by any authorized medical officer. In the case of one day no medical certificate

is necessary, every employee is allowed ten days medical leave per annum. If the disease of the

employee is such that it requires more than a day then the approval of the project manager is necessary.

CLEAVE WITHOUT PAY

This leave is granted to the employees when leave without pay is exhausted and none of the type of

leave is available at his credit, leave without pay is granted by the management of the projection special

cases this leave can not be more than one month at a time. But can be extended in special cases.

Any employee who is found guilty of the above miss conducts, action is liable to be taken against which it

leads to the following punishments

1. the management ill issue a warning to the employees to be careful for future and not to repeat thisaction or otherwise he will be punished.2. some time the management makes deduction from the salary.3. some time the management will hold rhea increments or promotions for a certain period of time.They not give them increment and promotion during that a period of time

4. some time he his demoted to the lower post5. in case of serious miss conduct the management will dismiss him from the services.


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Workman compensation

In this project compensation is paid to the workers when they receive injuries in the cause of work during

accident. If the worker has violated the safety precaution the management is not bound to pay

compensation.

The management also pays compensation for any kind of diseases, which are caused as a result of the

type of duty. Also in this case he must prove that he has suffered disease during the employment. If the

disease pertain to preposition period, compensations cannot be claimed.

Fringes benefits

The employee of this mill is given the following fringe benefits in the form of money or shape of certain

facility in addition to their monthly wages. These benefits are mentioned below

FUNDS

The project maintain a provident fund for the employee under the rule of provident fund every permanent

employee of factory who have completed six month continue service in the factory is eligible subscribetowards the fund.

Provident fund consists of deductions from the monthly wages of the employees as equal amount is also

contributed toward the provident fund by the mills.

The total amount of provident fund is deposited in the account of provident fund and separate account is

maintained for every employee in the account office of the factory. The total amount alongside interest is

paid to the employee in lump sum upon completion of office tenure. During the employment an employee

can take loan from the provident fund for the urgent needs. The management sanctioned the required

loan upon 50% of the total loan is recovered in easy installment from the monthly salaries.

Place allowance

Place allowance are given in the following ways

1. those employees whose pay is unto Rs. 300 p.m. is given 205of the basic pay

2. those employees whose pay is up to 301 to 500 per month are allowed Rs. 155of their basic pay. 3 those whose salary is more than R.s. 500 are given 10%of their basic pay.

HOUSE RENT

The employees are also paid hose rent at the basic pay=claw 405 means cost of leaving allowance up to

Rs. 500 = 110 fix

Rs. 501/-uptors 735/-=10%of basic pay+25+25

Rs735/-and above 9736)=105 of their basic pay=25

MEDICAL ALLOWANCEEvery employee and his family are given free medical facilities. Whenever any employee or any of his

family member fall ill, the management is responsible for their medical allowances, payment made as a

result of medical treatment are disbursed later on. The medical parishioners prepare the bills of medicine,

and these bills are offered to the finance manager for payment.

FACED WASHING ALLOWANCE

Washing allowance is given to all the employees at the rate of rs 6 per month.


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EDUCATION FACILITIES

In the Fecto sugar mills there is special arrangement for the employees children education.

Educational facilities are intro under worker children ordinance 1967, under the ordinance each factory

should provide free education to the children of the employees. This ordinance applied to all those

organizations 29 or more than 20 workers. The employee receiving monthly wages less than Rs.10000

are entitled to avail these facilities. Under the ordinance the education will be free for one child of each

employee of the factory. The children of the employee are free from tuition fee school funds and the cast

of the books.

There is also transportation system for the children of employees.

Scholar Ships To Children Of Employees

In this mill without free education to the children of the workers scholarship at the rate of rs 15 rs25 rs 30

are awarded to the deserving children of the employees in their 5th 8th and 10th classes

CANTEEN FACILITIES

The mill has provided the canteen facility to its employees. Adequate furnitures and other facilities areavailable in the canteen.

FAIR PRICE SHOP

The mill has provided a fair price shop facility to the employees. In the fair price shop a person can buy

the comm. duties of daily use on their prices

BONUSES

In this mill employees are given the bonus also. The number of bonus usually is divided between the

management and workers unions on production basis. /

1 one bonus is given on the production of 1000000 lack bags of sugar2. The production of 2000000 lack bags of sugar are given the two bonuses

3on additional 50 thousand bags of sugar one bonus is given. The amount of one bonus is equal to onebasic pay of the employee, but after up to the present time the required limit for bonus is not attained as

the project is running in losses and the production has always been less than the actual capacity.

Employees /Personnel in various section

CLASSIFICATIN OF WORKERS

The workers of Fecto sugar mills can be classified as under:

1 PERMANENT WORKERS


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2 TEMPORARY WORKERS3.. SEASONAL WORKERS4.. DAILY WAGE WORKERS5.. APPRENTICES

Permanent workers

Those workers who are engaged on performing their services for the whole year are called permanent

workers. They are appointed on those jobs, which are of permanent nature.

Temporary workers

Temporary workers are appointed on those jobs, which are of temporary nature. They are likely to be

financed in a maximum period of nine months.

Seasonal workers

These workers are hired during the cane crushing seasons, when the season is over they are lay off.

Daily wage workers

These are the workers who worked and get their remuneration on daily bases. They can be hired in any

section where they are needed.

Apprentices

These are the learners. This is a work mean, to which allowances are paid during the training and after

the completion of the course.

Designation and number of employees

CANE DEPARTMENT

Designation/Department STR

CANE DEPARTMENT

General Manager 1

Cane Manager 1

Dy. Cane Manager 2

Tr. Cane Officer 1

Sr. Cane Officer (Admn) 1C.O. (Admin)/ACO (Admin) 1

Office Supdt./Office Supr./ Typist 1

Office Supdt./Office Supr./ Computer I/C. 1

Cane Admin Office Clerks 5

Qasid/Sr. Qasid 2

Tea Boy 1

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16


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----------


LOAN OFFICE

Loan Supdt./Loan Supr/ Loan Asstt. 1

Clerks 2

Asstt. Fitter/Fitter (Agri) Workshop 1

----------

4

----------

CANE YARD & WEIGHBRIDGES

Asstt. Cane Officer (Yard)/

Sr. CO (Yard)/C.O. (Yard) 1

Card Supdt. 1

Shift Supr. 2

Weighment Incharge 4Parchi Clerk 6

Posting Clerk 6

Line Jemedar 6

Gate Pass Clerk 6

Line Jemedar (Gate pass) 3

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35

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CANE CARRIER

Feeding Incharge 3

Feeding Clerk 9

Line Jemedar 6

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18


CANE TRANSPORT OFFICE

Clerks 3

Line Jemedars 3

----------6

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PROGRAMME OFFICE

Programme Officer/Asstt.

Programme Officer 1

Programme Supdt./Supr. -

Programme Clerks 6

Line Jemedar/Qasid 1


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Dak Runners/Line Jemedar 5

----------

13

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FIELD OFFICE

Sr. Cane Insp./Cane Insp. 3

Fd. Supr./Sr. Fd.Man/Fd. Man 32

----------

35

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PURCHASING CENTRES

Depot. Incharge (Clerks) 16

Clerks 9

Line Jemedars 16

----------

41----------

MECHANICAL DEPARTMENT


MECHANICAL GENERAL OFFICE

General Manager (Technical) 1

Dy. General Manager (Tech)

Technical Manager/Chief Engr. 1

Dy. Chief Engr./Sr. Engr. 4

Sr. Shift Engr./Shift Engr. 3

Asstt Engr./Tr. Engr. 1

Drawing Engr/A.D. Engr. 1

Draftsman/A.D. Man/Tracer 1

Typist Clerk 1

Qasid 1

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14

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MILLS HOUSE

Mill Engr/Asstt M. Engr/Foreman 1

Shift Foreman/A.Shift Foreman/Mechanic 5Sr. Fitter 5

Fitter 8

Asstt/Fitter 8

Helpers 13

Welders -

Oil man 3

Pump Coolies 5

Tipper Operators 4


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Tip. Carrier Operator 2

Cane Carrier Operator 4

Clearing Coolies 18

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76

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BOILER HOUSE

Maint. Engr/A.Maint.Engr/Foreman 1

Shift Foreman/A.F.man (Shift)/shift Supr. 4

Asstt. Shift Supr. 3

Fireman/A.Fireman 14

Waterman/A.Waterman 9

Fire Coolies 8

Feed Pump Attd. 3

Feed Tank Attd. 2

Bagges Carrier Attd/Oilman 2

Welders -----------

46

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BOILING HOUSE

Boiling House Engr/ Asstt.Engr/Foreman 1

Shift Foreman/A.Shift Foreman/Mechanic 3

Sr. Fitter 3

Fitters/Fabricators 8

Asst. Fitters/Helpers 9

Sr. Welder/Welder/A.Welder 6

Oilman 4

Pump Cooly/Pump Attd. 18

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52

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KHALASI GANG

Kh. Foreman/Kh.Jem. 1

A.Kh.Jem. 2

Mill House Khalasies 11

Boiling House Khalasies 6

----------

20----------

MECHANICAL WORKSHOP

Workshop Incharge 1

Sr. Engr Wksp/Engr Wksp/Foreman -

A.Foreman/Mechanic 1

Sr. Fitters 1

Fitters 2


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A.Fitter/Helpers 1

Master Turner 1

Sr. Turner/Turner 3

A.Turner 1

Foreman Welder/Hd. Welder 1

Welders 2

Helper Welder/A.Welders 2

Pettern Maker 1

Black Smith 1

Hammerman 1

Moulder/Asstt Moulder -

Shaperman 1

Plannerman -

Coolies 3

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23

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AUXILIARY TECH. SERVICES

Asstt. Engr./Foreman -

A. Foreman / Mech. 1

Sr. Fitter / Fitter 1

A. Fitter / Helper / Cooly 2

Diesel Fitter 1

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5

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TURBINE AND COMPRESSOR

Sr. Turbine Engr/Turbine Engr. 1

A.Turbine Engr/Foreman/General Foreman 1

Mechanic/Asstt Foreman 1

Sr. Tur. Operator/Sr. Fitter 1

Tur. Optr/Fitter 9

Asstt. Tur. Optr/Helper 2

Coolies 2

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17

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CHEMICAL DEPARTMENT


CHEMICAL OFFICE

Process Manager (DGM. (P) 1

Chief Chemist/Dy. chief Chem. 1

Senior Chemist/S.Chemist/Trainee Chem. 6

Office Supdt. 1

Qasid -

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9

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LABORATORY

Sr. Lab. Officer/Lab Officer 1

Lab. Chemist 3

Lab. Analyst 9

Asstt. Analyst 3

Lab. Pointsman 3

Sampler 17

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36

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PROCESS CONTROL

Juice Foreman/Asstt.Chem. 1

Juice Supervisor/Asstt. Juice Foreman 3

General/Record Clerk 3

Juice Heater Mate/A.Supp. 2

Juice Heater Cooly 1General Cleaning Cooly 6

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16

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DEFECATION STATION

Def. Attendant 1

Def. Cooly 5

Def. Mate/Asstt. Supp. 3

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9

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CLARIFIER STATION

Mate/Asstt. Supp. 3

Coolies 4

Asstt. Mate. 1

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8

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VACUUM FILTER STATION

Mate/Asstt.Supervisor 3

Coolies 10

----------13

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EVAPORATION STATION

Quadman/Asstt. Supervisor 3

Quad Operator 3

----------

6

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TALO REFINERY STATION

Talo Technician/Operator 3

Coolies 5

----------

8

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PAN & CRYSTILLIZER STATION

Sr. Pan Chemist/Pan Chemist 1

Head Pan Boiler 3

Head Panman 3

Senior Panman 4

Panman 3

Assistant Panman 3

Pan Mate 3

Assistant Panmate 3

Pan Coolies 16

Cryst. Mate. 4Cryst. Coolies 4

Pan Apprentices -

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47

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CENTRIFUGAL STATION

Mate/Asstt Suppr 3

Asstt Mate. 3

Centrifugal Operator 17

Magma/Remelting Coolies 12

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35

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BAGGING HOUSE

Bagging Clerk 2

Mate/Asstt Supr 2

Asstt Mate 2

Bagging Filling Optr. 1

Bagging Coolies 21

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28

----------L.S. STATION

Attendant -

Coolies 2

L.S. Mate 3

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5

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MILL SANITATION


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Coolies 3

Records Clerk 1

ELECTRICAL DEPARTMENT


C.E.E. OFFICE

Chief Electrical Engineer 1

Deputy Chief Engineer/

Sr. Inst. & Elect. Engg. 1

Qasid 1

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3

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POWER HOSUE

Supervisor -

S.B.S.E. 3

Asstt. Switch Board Optr. -

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3----------

ELECTRICAL SHIFTS

Inst. Electrical Engg. 1

Asstt. Engr./Foreman/Supp. 3

Senior Electrician 3

Electrician 9

Junior Electrician -

Tubewell Operator 2

Helper/Asstt. Elect. 3

Assistant Wireman -

Coolies 2

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23


ELECTRICAL WORKSHOP

Foreman/Supervisor 1

Asstt. Foreman(H.Winder) -

Senior Winder/Winder 1

Asstt. Winder/Winder Helper 1

Electrician 1

Wireman/Electrician 1

Assistant Wireman -Lineman/Khalasi 1

Welder -

Asstt. Lineman/Asstt. Khalasi/

Asstt. Electrician -

Electrical Fitter 1

Cooly -

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7


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INSTRUMENT WORKSHOP

Workshop I/c./Instrument Engr/Assttt. Engr 1

Foreman/Asstt. Foreman 1

Asstt. Supervisor -

Senior Technician/Tech. 1

Helper/Cooly 1

----------

4

----------

INSTRUMENT SHIFTS

Technician/Asstt. Tech. 3

Helper/Asstt. Tech. -

----------

3

----------

ACCOUNTS DEPARTMENT


FINANCE DEPARTMENT

Finance Manager (Malik Ishfaq Hussain) 1

Chief Accountant (Rana Saeed Akhtar) 1

Store Account Officer (Hafiz Sajid Akhtar) 1

Sr. Accountant (Mr. Sohail Siddiqui) 1

Sr. Accountant (Mr. Mobishir Ahmad) 1

Store Accountant (Mr. Shahid Akhtar) 1

Record clerk 1

(Mr. Qasim)

Typist 1

Qasid 1

Dak Runner 1

Tea Boy 1

----------

11

----------


SUGAR GODOWN

Deputy Manager/Off. I/C. 1Supervisor 1

Asstt. Store Keeper 4

Godown Boy. 5

Qasid 1

----------

12

----------

CANE ACCOUNTS


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Accounts Officer/Asstt. Accounts Officer 1

Accounts Supervisor/Asstt. Accountant 1

Junior Programmer 1

Computer Operator 1

Data Feeding Clerk/Ledger Posting Clerk -

Clerk (Cash payment) 3

Billing Clerk 1

Checking Clerk 4

Clerk (Bank Payment) 2

TPT Clerk -

Qasid -

----------

14

----------

FAIR PRICE SHOP

Incharge Fair Price Shop 1

Cooly 1

----------2

----------

MANAGEMENT OFFICE

T.D. OFFICE

Technical Director 1

Executive Secretary 1

Qasid 1

----------

3


LOCAL PURCHASE OFFICE

Purchase Manager (Mr. Daud Shah) 1

Purchase Officer (Mr. Irshad Ahmad) 1

----------

2

----------

STORES SECTION

Manager Store/Store Officer 1

Sr. Officer Store/Asstt. Store Officer 1

Store Keeper 1

Asstt. Store Keeper 3

Storeman/Clerk 4Asstt. Storeman/Store Boy

Sr. Store/Boy/Helper 6

Typist/Sr. Typist 1

Qasid 1

----------

18

----------

ADMINISTRATION DEPARTMENT


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PERSONNEL OFFICE

Manager Administration (P.I.R.O) 1

(Malik Ishfaq Hussain)

Supervisor 1

(Malik Iqbal Hussain)

Officer I/c/Off.Supdt. 1

Steno Typist/Typist 1

Record Clerk/General Clerk 1

Office Attendant 1

Mr. Allah Ditta

----------

6

----------

TIME OFFICE

Supervisor/Asstt. Supp. 1

Mr. TariqClerk 3

Qasid 1

----------

5

----------

DISPENSARY

Pharmacist 1

ESTATE OFFICE

Estate Officer -

Plumber 1

Sweepers 6

Mali 1

Carpenter 1

Gardner 2

Cooly -

----------

11

----------

CIVIL SECTION

Sr. Civil Engr./Civil Engr. 1

Sr. Civil Supp./Civil Supp. 1

Clerk/Supervisor 1

Mason (R.F.) 1

Cooly 4

----------

8

----------

SECURITY SECTION

Security Officer/Asstt. Sty. Officer 1

Asstt. Security Supervisor 1


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Security Jemadar 3

Security Leading 1

Security Man 3

Security Watchman 35

----------

42

----------

M.T. SECTION

M.T. Incharge/M.T. Supdt. 1

Mechanic/Sr. Fitter 1

Sr. Driver/Fitter -

Driver 6

Tractor Driver -

Cooly/Helper 1

Cleaner -

----------

11

----------Designation/Department STR

GUEST HOUSE

Incharge Guest House 1

Cook 2

Bearer 1

Guest House Keeper 1

----------

5

----------

TELEPHONE EXCHANGE

Supervisor/Asstt. Supp. 2

Sr. Telephone Optr. 2

Telephone Optr/Asstt. Optr. 1

Lineman -

----------

5

----------

Career ladder??????????????????/

Major Managerial Policies

In each and every organization discipline is the key to the stability, efficiency and orderly pursuit of

business.

For employees guidance and to help them guard against those acts or omissions which are inimical tothe interests of the company and those of themselves, certain managerial policies are outlined below. It is


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the duty of each and every employee to follow these policies and abide by all the rules and regulations

otherwise the violations of these norms of conduct may subject one to disciplinary action commensurate

to the gravity or seriousness of the violation in every instance and the incorrigible attitude shown.

The disciplinary action may range from a verbal admonition, written reprimand, suspension, and

ultimately, separation or termination from employment for just cause. As a general rule, however,

offences involving dishonesty or breach of trust will be penalized with dismissal.

Conflict Of Interest:

The following are examples of conflicts which must be avoided unless specifically authorized by the

Chairman and Managing Director or his duly authorized representative:-

a) Employees may not have ownership interest in suppliers, customers or competitors, except for holding

of less than 1% of the outstanding stock of companies with publicity traded stock.

b) Employees may not seek to profit from confidential information or business opportunities that are

available to them as a result of their position with the Company.

c) Employees who purchase or have any influence on the purchase of commodities may not engage in

personal investment or speculation in commodity futures.

d) Employees may not act as director, officer, partner, employee, agent or consultant for a supplier,contractor, customer or competitor.

e) Employees may not receive gifts, loans, or favors from suppliers or others with whom the company

does business, except (1) casual entertainment or gifts of small value consistent with accepted business

practice and (2) loans from financial institutions on prevailing terms and conditions.

f) Employees may not use Company funds, facilities, personnel, or other resources for private purposed.

The interests, activities, and associations prohibited by this policy are those of a direct, as well as indirect

nature. Thus, those who are acting for an employee or of his spouse or member of his family, may be

included where the facts are known to the employee.

It should also be stressed that non-adherence to employees responsibilities mentioned in Section. A may

also result in violations of the companys policy against conflict of interest.

Attendance And Punctuality:

All employees are expected to be at work during their official working time, except when on approved

leaves of absence or prevented from reporting to work by disabling sickness or other emergency

situations beyond their control.

When you cannot report for work, you should report your absence to your immediate superior within the

day of absence through any means available, such as telephone, telegram, or messenger. Failure to give

the required notification will result in your absence being treated as UNEXCUSED.

Likewise, employees are required to report for work punctually on their designated starting time. It is not

permitted for an employee to compensate for tardiness by working overtime.If you are late for 10 minutes or more, it is discretionary on the part of your superior whether or not to

accept you for work. if you are sent home, you will not be paid for the day.

Examples of conduct in violation of the above norms are:-

a) Absence without leave (AWOL) or notification. Being absent without notification and approval of leave

from the competent authority for 10 consecutive days or more will be considered as hob abandonment.

b) Excessive unexcused absences.

c) Excessive unexcused tardiness/under times.


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Absence and tardiness/under times will be considered excessive where they are incurred for no valid

reasons and in such frequency as to cause serious disruption of your work and that of the department

where you are assigned.

As a general rule, 3 unexcused absences, and 3 unexcused tardiness/under times in a month will be

regarded as excessive.

Dishonesty And Breach Of Trust:

The relationship between the company and its employees regardless for rank, is of necessity founded on

mutual trust and confidence. When an employee commits an act of dishonesty or breach of trust, he give

cause for the company to lose trust an confidence in him and justifies his termination from employment.

Examples of acts or omission which violate the high standards of honesty expected of employees are:-

a) Theft of company property or of others within or outside company premises.

b) Misappropriation, misuse, or unauthorized use of company funds, money or property.

c) Submission of false, padded, tampered or fictitious documents in support of claims for reimbursement

or other monetary payments form the company.

d) Falsifying, altering and tampering of company records such as spoiled merchandise receipts,

employment records, overtime slips, quality control reports, etc.e) Punching or filling in of another employees time card and having ones time card punches or filled inby another.

f) Accountable company employees who incur unexplained shortages are presumed to have

misappropriated the shortages.

g) Similar or analogous acts of dishonesty, fraud and breach of trust.

Misbehavior and Misconduct:

Examples of acts which constitute misconduct are:-

a) Insubordination and disrespect to superiors and other company officials, guests, visitors and other

persons dealing with this company.

b) Fighting or quarrelling inside company premises.

c) Loitering or unauthorized leaving of ones post while on duty. d) Gambling inside company premised, including the making, taking and payment of bets.

e) Unauthorized or unreported possession of firearms or other deadly weapons.

f) Inflicting physical injuries or manhandling another person inside company premises.

g) Possession and use of prohibited drugs.

h) Sleeping on duty.

i) Drunkenness or reporting for work under the influence of liquor. Drinking of alcoholic beverages is

prohibited inside company premises.

j) Immorality and indecent behavior.k) Threatening another person with harm or physical injury.

l) Engaging in activities which are disruptive of company operations, such as gossiping, intriguing against

honor and selling personal goods inside company premises.

m) Abuse of company benefits and privileges such as malingering or feigning illness to justify absence.


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n) In General, violation of other working rules and regulations which may be issued from time to time such

as:

I. Leaving the job unattended without permission of the supervisor or entertaining the guests or friends at

the place of duty.

II. Leaving the premises during duty hours without proper authorization or gate pass duly signed by the

Manager of the Department.

III. Taking any bags, brief case or any other material in the company premises without proper permission

of authorities concerned. It is advisable to leave such things in the custody of security at the Gate Office.

IV. Using the telephone for personal calls without permission.

V. Entering the factory premises or offices without wearing the Identity Cards or the name badges.

VI. Taking away the company property without any proper gate pass or authorization slip issued by the

Manager of the Department.

Breach Of Security And Safety:

Examples of acts which fall under this category are:-

a) Causing destruction or damage to company materials or property, deliberately or through negligence.b) Causing wastage of company materials and property, deliberately or through carelessness or

negligence.

c) Sabotage or deliberate downgrading of company property, materials and products.

d) Unauthorized disclosure of confidential company information obtained by reason of ones employmentin the company.

e) Tampering with fire protection and other safety equipment.

f) Substituting or attempting to substitute company equipment or property.

g) Refusal to comply with or evasion of security requirements, such as searches by security guards.

h) Failure to report any misconduct or dishonest act of a co-employee.

i) Smoking fire or exposing.

j) Horse playing

k) Unauthorized use of company vehicles, machinery and other equipment.

l) Refusal to use prescribed personal protective safety or working under unsafe conditions by avoiding

goggles, or any safety equipment provide for jobs.

Breach of Cleanliness and Sanitation:

Examples of unclean unsanitary acts are:

a) Urinating or spitting on floors, walls and other places other than the proper receptacles.

b) Littering, throwing cigarette butts and other acts which contribute to poor house keeping.

c) Refusal to wear prescribed uniform or footwear inside company premises.

d) Abuse or misuse of uniforms other company provided personal equipment.e) Poor personal hygiene such as long hair, dirty fingernails or uniforms etc.

f) Improper or abusive use of toilets and other company facilities.

g) Failure to comply with other sanitary rules, such as washing hands after coming from toilets.

Just causes for Termination of Employment:

The following acts and omissions shall be treated as misconduct:-


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a) Willful insubordination or disobedience to any lawful and reasonable order of a superior.

b) Theft, fraud, or dishonesty in connection with the employers business or propertyc) Willful damage to or loss of employers goods or propertyd) Taking or giving bribes or any illegal gratification

e) Habitual late attendance

f) Habitual absence without leave or absence without leave for more then ten days

g) Habitual breach of any law applicable to the establishment.

h) Riotous or disorderly behavior during working hours at the establishment.

i) Habitual negligence or neglect of work

j) Frequent repetition of any act or omission referred to in clause

k) Striking work or inciting others to strike in contravention of the provisions of any law, or rule having the

force of law

l) Go-slow.

Part Three

ADMINISTRATIVE / MANAGEMENT STYLES

ADMINISTRATIVE / MANAGEMENT STYLES

Success or failure of any organization largely depends on the management. Mangers have following four

major roles to perform.

Planning


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Organizing

Leading

Controlling

For effective performance of the above mentioned functions the managers need different skills. Like,

effective managers require communication skills, in written, oral and non verbal form. They should be

creative and innovative, Should be able to manage time and stress. Motivate and influence the others.

They should be able to manage the conflicts etc.

There are two major sections of the organization.

.

1 Plant.

2 Head office

Plant related administration is only up to plant. plant administration administer only the plant. and head

office administer only the head office. HRM deals with both plant and head office. here in head office

peoples are very well disciplines there is no chain of strike or dispute in head office. Same is the case

with the plant.

Here both in head office and in plant administrator are very strick by the rules and regulation. Otherwise

the here is very friendly. people fell free to talk with each other. Here the administrative style is democratic

not the autocratic.

Administration styles has its impact on the people here but senior executive here have a combine type of

attitude at the time of closing they are really strict but at beginning little relax.

But when you talk about the styles on the morale of the people. Then you can take the example of this

that

After its merger with the lever brother. people are very much frustrated about their future.they are very

much cautious that what will be happened in the future with respect to their jobs.and all these things are

really effecting the efficiency of the people performance.the is the one vview of the picture but on the

other there are a bundle of incentives like hajj ticket,allowances,really incouraged the employee to show

there best.and they are showing their best here.because all these activities incouraged the people.here

the working envirnment is very friendly mess and tea was the two thing which I am really missing.there is

no question that when you provide all these facilities then the morale of employees will automatically rise.

READ the above page of mgt styles WITH CARE/????????????????/

Part four

Production facilities


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PRODUCTION DEPARTMENT

The head of this department is called the Production Manager. The Production Manager is also is called

the Deputy Manager of the project. There are four Shift Chemists and one Assistant Chemist under the

control of Production Manager.

The main function of this department is to produce maximum sugar from the cane available to the factory

with minimum possible sugar losses during manufacturing by controlling various units, processes and

operations.

Functions Of Production Department

Function of production department may be classified as follows

1- PRODUCTION

Supervising the process of production in three shifts viz; crushing of about 1500 tons of sugar cane,

delousing of juice, its carbonation,sulphitation ,filtration and concentration by operating juice heaters

liming gassing etc

The process involves washing of filter cloth and press mud, operation of sulphur furnace, vacuum

evaporators, steam boilers, pan boiling molasses tanks juice, molasses pumps crystallizers and

centrifugal machine etc

2-LABORATORIES

Conducting special and routine analysis far quality control in each of three shifts .The laboratory chemist

who is independently in charge of a shift prepares about 30 routine analyses per hour and two-lab

analyses assisted by lab boys and laboratory samples conduct 10 to 15 analyses per hour.Preparation of

daily weekly forth nightly and monthly reports and laboratory charts.

3-BOGGING HOUSE

Packing the good quality sugar, maintaining the stock of new empty bags, pointing the serial no. in the

correct manner ,handing over the shift production to the sugar go down, repair of damaged filter cloth and

preparation of new filter cloth is done by the bogging house.

4-SUGAR GO DOWN

Stocking and dispatch of sugar bags to various government agencies, dealing with the food directorate of

N.W.F.P., excise departments, preparing periodical reports of disposal of stock, sticking of damaged bags

during off season etc. is done by this department.

In this department the following materials are used during manufacturing.

1 Lime Stone


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2 Hard Coke

3 Filter Clothe

4 Sugar

5 Cotton Bags

6 Furnace Oil

PRODUCTION PROCESS

After weightment, cane comes on cane dipper and through the cane carrier it passes through the cane

leveler and then reaches at the cane cutter which cut it into small pieces. After it cane passes through

cane shredder which cut it into very small pieces. Now the cane is in position to give maximum juice.

Then the cane reaches at mill house where the juice is separated from baggage. Baggage go to the boiler

house where it is burnt and the heat energy so gained is used for steam and to produce electricity. The

juice gathers in a big tank named "mix juice tank". The juice then goes to the process house where it is

heated from 25-70C. Then line water (Ca(OH)2) is mixed in it to get rid of impurities. Then it is sent to

the clarifier where it is heated from 60-105C and by the Co-agulent, the mud is separated from juice.Then it goes to the evaporators where water evaporators. Here the brix of juice goes from 15-65. This

thick juice is named as "syrup". Now the syrup is sent to A-Pan where it is heated so much that it reaches

at its supersaturated point. A massecuite is produced by adding small amount of grain in it. Crystals of

sugar and molasses is present in A - Massecuite. To separate sugar from molasses, it is sent to A -

centrifugal. In this way, A - sugar is gained. The molasses separated from A - sugar is sent to B-Pans,

where it is heated again and B-Massecuite is produced and the sugar gained from it is known as B-Sugar.

C-sugar is also gained by the molasses of B-sugar. The molasses separated from C-sugar has a very

little size of sugar in it, so it is sent to the separated thanks and it is called "Final molasses". C-sugar is

used for graining purpose while A and B sugars are sent to Talo-house for colouring purpose. Chemicals

litre Phosporic Acid, talo-flak, talo float and lime scerate are mixed in it to remove the impurities. This

sugar is known as "Liqour" and to get pure sugar from it, it is sent to "refine-pans". Refine massecuite is

produced and after passing it from refine centrifugal, sugar is separated from molasses. It is passed

through drier to dry it. Then it is passed through grader where "product sugar" is separated from small or

big sugar. This small or big sugar is again dissolved in water to get product sugar. Product sugar is sent

to godown after packing.

CANE DEPRTMENT

This is perhaps the most important department of the establishment outside the factory. Cane department

produces the basic raw material which is usually in short supply and for which there are competing forces

namely Alternate crops, Gur making crushers and other sugar mills. Therefore, only the effectiveworking of the department can ensure full capacity operation of the mill throughout the crushing season


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and thus reduce the fixed costs.

This department is considered as the backbone of the mill. The function of this department is as under

which are two folded.

1. cane department2. cane procurement

The head of the Cane Department is known as Cane Manager. There is a Cane Inspector who is under

the direct supervision of Cane Manager. The Cane Inspector examines the work and steps that are

undertaken for the cane development. Also a large number of Field Men are working under the direct

supervision of Cane Manager. The Field Men make crops survey and determine the cane area of the

growers.

The whole area covered by the production process has been divided into 25 zones. The Field Man

supervises each zone. The main reason of dividing the area into zones is to encourage more quantity of

cane. Various stages of cane development and procurement are as follows.

Stages Of Cane Development And Procurement

The first stage in any development and procurement programme is the correct survey of the sugar cane

crops. Each Field Man is responsible to make the first survey in his respective area.

If a long-term incentive development programmed is in preview the survey should include the entire area

of the zone and cultivated land available in the zone, so that the target for bringing the area under

cultivation may be ensures. For the purpose of the cane procurement a survey of the area under sugar

cane only is sufficient. For the procurement purpose complete list of the Mohalls under various field staffis to be prepared showing distance of each mahal or village from the mill. Convenient place in

consultation with the local people are also to be fixed as loading centers and their accurate distances

from the mill be certain and declared which will form the bases of payment of transportation charges. The

list of all the loading centers shows their distance from the mills is accurately and carefully prepared.

The cane superintendent will provide this to the Cane Accountant for calculation of transport charges

where such a calculation is required. While preparing list of villages, each village should be continuous to

the other. This list and serial orders will also be followed in the programme register and during the

issuance of indents.

SURVEY

The field men will commence the survey. Normally the survey should start when the crop is about three

feet high as that plot of sugar cane can easily be seen from the distance and no plot is missed during the

survey. The field man will prepare a weekly advance programmes of the visit of the villages in his area

and also makes an announcement among the sugar cane growers of his visit, so that they may also be

able to contact the field man during the visit.

Local information has to be collected about the area actually surveyed. Physically, by walking around the

plot and counting the number of steps he should do the survey. The surveyor step should be measured


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which will give the length of the plot.

All survey records should be prepared in the name of the owner of the land and not subtenants unless

there are any special circumstances in any particular case.

During the survey the Field Man contacts the growers and then takes a note of their demand for seeds

sand fertilizers. The field man then prepare the demand schedule for the respective zone and provide it to

the department for necessary action.

CHECKING OF THE SURVEY

The field man will do the actual field survey. The duty of the Cane Inspector of the area will be to see that

the survey is being done is accurate. To achieve this the Cane Inspector will visit these areas along with

the Field Man who has surveyed it so that the cane inspector will take up any plot and first see the area

noted by the field man and then he himself survey the plot. If any difference is noted it will be immediately

checked out. Thus checked out is filled in survey checking (D.D. form) and sent to the cane

superintendent every week along with a weekly progress report and explanation of the field man for anydiscrepancy in his founding during the checking.

If facilities are available survey record should also be checked with survey record of the revenue

authorities.

Second survey

In the month of February and March the field man makes the second survey of his zones. The field man

examines whether the grower has shown all the seeds as provided by the mills. They also point out he

problem of the grower and try to solve them as son as possible.

Third survey

The-Field Man makes the third survey in the month of May and June. During the survey, he makes

agreement with the grower. In his agreement the Field Man gives surety of purchases to the growers. The

grower also gives surety of supplying his cane to the mill during the incoming season.

Final survey

After making the above surveys the Field Man makes an average estimate of cane production of their

respective zones. After making all the necessary corrections of the completed survey it should be filled up

in the survey form and sent to the cane superintendent. The cane superintendent will then issue

instructions for filling up agreement forms with the zamindars


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ISSUE OF PASS BOOK (IDENTITY CARDS)

Each cane grower whose record is existed will be issued a passbook, which will serve the purpose of a

presentation. It will be presented by the grower at the time weightment of the cane in the mills and at the

time of payment.

When all the passbooks are thus ready they will be handed over to the field staff for the distribution to the

zamindar in their areas. Here the programme in charge while handing over the passbook to the field staff

for distribution will note down the serial of the passbook having handed over to the Field Man and obtain

his signature.

The field man while distributing the identity cards will maintain the register. The work of writing and

distribution of identity cards should be completed by the end of September.

Upon the receipt of the identity cards the grower became responsible to deliver his cane to the Mill within

six days. When the identity cards are issued to the grower then cane department makes transportation

arrangement for the supply of the cane to the mill

The transportation facilities are provided to the growers according to their productive capacity.

WEIGHMENTS

When the vehicle arrives at the gross weight bridge the weighment clerk will observe the following

procedures

THE INDENT

The vehicle has a valid indent for that day and there is no over writing or cutting on it. If there is any such

thing it should bear the counter signature of an officer. The indent must be accompanied with the identity

cards. If any of the documents are not present the cane will not be weighted.

PASS BOOK

The vehicle got a passbook and has brought the cane according to the movement order. There is no

other load on the vehicle except the sugar cane. It must be properly placed on the weight bridge

CANE YARD

The whole area from the weightment to the cane carrier (cane yard) includes

1.Gross Weight Bridge

2-. Tare Weight Bridge

3-. Cane carrier

After gross weightment, vehicle is processed toward the cane carrier for un-loading. Then without cane


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vehicle it is again weighted on the tare weight bridge. Again the tare weight is deducted from the gross

weight. Finally the binding material is deducted and net weight of sugarcane is remained.

When cane is weighted parchi is prepared in the quadruplicate. This parchi shows the name of the grower

name of their zones and the quantity of the cane supplied to the mill

The first parchi is given to the grower. The Second copy is sent to the cane account section and the third

one is given to the carriage contractor for receiving payments.

Payments

All the payments will be made on the bases of the purchasing sheets received by the Cane Accountant

from the Cane Superintendent. Any purchi not appearing in the purchasing sheets will not be paid. The

procedure for payment is distributed according to the above principle.

The cane superintendent after making the necessary checking will forward the posting sheet purchi and

duplicate copy of gross and tare register to the cane account. While receiving these the cane accountant

will check that all documents have been completed according to the requirement. If any paper is

incomplete the cane account will immediately return the paper to the cane superintendent for necessarycompletion. When received incomplete from the cane accountant ant will check every purchi and entry in

the posting sheet particularly the calculations of net weight, cane price and deductions. If any mistake are

found the cane accountant will refer this to the cane superintendent for necessary action. The cane

accountant may correct the calculation mistake without referring to the cane superintendent

Corrections should be made immediately in parches and posting sheets. After having their correct net

weight of cane, cane price and deduction in this posting sheet are totaled. These totals should be exactly

the same as the total taken of these items from the parches remarks and cutting should be properly

initiated erosion and overwriting in the parches and register should not be accepted by the Cane Account

and should be referred back to the Cane Superintendent for inquiry and certificate of its correctness. Now

the posting sheet will be the basis on which all the payments will be made as well as the daily cane

figures. The cane account will also intimate the corrected totaled net weight of the cane to the cane

superintendent also so that if necessary he may adjust his daily cane figures also

The posting sheet after checking by the cane account will be countersigned by the cane superintendent

and then it will be ready for payment.

It will also be sent to the cane accountant that will prepare the necessary votures with the managerssignature for drawl and payment of the amount of cane price against this posting sheet. Payment will be

made of one day of the posting sheet or the posting sheet for Monday may be paid on the next day.

If someone fails to turn up and received his payment on Monday or on Sunday then he can again have

his payment on the next Monday or Sunday and not between the weeks.

While making payment the cashier will take back from the zamidar his copy of the parchee and theacknowledgement or receipt of payment on the reserve side of the account copy of the parchee, which

had been checked and corrected, and according to which the payment has been made.

The cashier will receive back the parchee from the zamindar one by one from the same serial as entered

in purchasing sheet and make the payment immediately after receiving the parchee .Only when one

zamindar has been paid the cashier will receive the next person .The cashier should never collect more

than one zamindars parchee at a time for payment .Now payment will be made unless the claimant

produces the identity card also. Soon as the payment had been made the cashier will put his initial and

date on the identity cards in the column provided and stamp paid with his initial and signature on the


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posting sheet .The cashier when giving account to the accounting in charge of money advanced to him

for payment should also give to the account in support of payment made by him. The zamindars copy of

the parchee to against which the payment had been made. These will claimant chances of wrong fictions

payment.

The accountant in charge may however adopt any other procedure in addition to the above for the

accuracy of payment and accounting.

Payment through bank

In case of payment through bank the procedure of checking the posting sheet will be same except that

after checking the posting sheet, it will be handed to the Bank for payment .The bank while claiming

reimbursement ofamount paid by them should produce the zamindars copy of the parchee of the samevalue. Under agreement, the bank should not make any payment without production of the identity cards

and after payment the band cashier should sign and put his initial on the identity cards in the column

provided for.

Facilities provided to the Cane grower

The following types of loan are provided to the growers

1 SEEDS LOAN

2 FERTILIZER LOAN

3 PESTICIDES LOAN

Each year the project sanctions a fixed amount of loan from A.D.B.P. The amount of loan then is divided

into two parts; one part is specified for the seeds and the other for fertilizers and pesticides. Management

of the project then inform the grower through their respect field man to contact their programme officer for

loan purposes

PROCEDURE OF PROVIDING THE LOAN

The procedures of providing the loan to the grower is as under:

SEED AND FERTILIZER LOAN

The grower who wants to acquire seeds and fertilizers from the mill should submit his request through an

application. The grower also provides a photo state copy of his national identity card .He also maintained

hid land khasra number, which he has specified for seeds in his application

After the fulfillment of the above requirement the field man signs on agreement with the grower. After the

agreement the application is approved by the cane inspector and then the cane manager give sanction of

loan to the grower. When the cane manager sanctions a loan the officer superintendent of the cane

department prepare the supply order .In this way seeds and fertilizers loans are provided to the growers.

PESTICIDES LOAN

Management of the project also provides loan for pesticides to the grower .The procedure of providing

pesticides loans is the same as discussed above.


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Utilization capacity????????????

Part five is pending

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Part Six

Company accounting/finance system


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FINANCE DEPARTMENT

The head of this department is known as Finance Manager. The Department has two sections.

1Main Account Section2Cane Account Section

There are two Assistant Account Officers under the control of Finance Manager. They supervise the

activities of main account section and cane account section respectively.

The Finance Manager control all the financial activities of the project along with general administration

and make arrangement of funds to meet the requirement of the project

Main account section

This section has to supervise all the work of the department. The details of the above section is given as

under

1-Finance Section

In this era of information technology, Fecto sugar mill is also fully equipped with computer technology in

almost all of its sections. The finance section of this department prepares the monthly and annual budget

and financial statement bills. The cheques are also prepared in this section. Moreover the following books

of account are maintained in this section.

AMain cashbookThis is a separate book for all kinds of cash receipts and payments known as main cash book .All the

cash payments and receipts vouchers are posted to this book. This book is summarized at the end of

each month. The transaction in this book is reconciled with the book statement at the end of each month.

The final posting from this book are made in the general ledger.

B General registerAll the daily transactions are recorded in the general register .At the end of day the transactions are

posted to the general ledger in their respective accounts.

CLedger registerThe ledger register is called the kings of all the registers of different types of accounts. The reason for this

is because all the entries from the books for original entry must be posted for various accounts in the

ledger. At the end of the day all the transactions are transferred from the general register to the ledger

register .The debits and credits columns of the ledger register and these balances are used to preparethe trial balance and financial statements

DPetty cash bookThe cashier makes all the petty cash payments of miscellaneous bills and post them to the petty cash

book and these are summarized at the end of each month and then posted them to the general ledger.


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2-PAYROLL SECTION

This section prepares the salaries of officers and workers on receipt of their attendance from the time

office. Moreover payments to employees old age benefit and income tax assessments of the mill officersand workers are also dealt within this section.

3-TIME OFFICE

In this office, daily attendance of factory workers is noted. Punch card system is used for the attendance

of employees .Two punch cards machines are fixed on the wall of the time office. All the tokens ofworkers are fixed on the board section wise and employees come and take his token from the board and

punch it into the machine and placed it on the box.

The in charge of this section is called as Chief Time Keeper. At the end of each month the attendance

sheet is prepared and send it to the payroll section .The payroll section prepares the monthly salaries of

the workers according to their total attendance as shown by their attendance sheets.

4- STORE ACCOUNT SECTION

This section maintains the record of machinery and different parts used in the project .The purchases andconsumption of different parts is adjusted monthly and annually.

5 - Suppliers bills

The main account section pays all the suppliers bills. When some items are purchased and received inthe store, the store in charge prepare the receiving report showing the amount and quantity of items

received .the receiving report is sent to the main account section. This section then makes arrangement

for payment to the supplier.

Cane account section:

The cane or the assistant account section performs the following functions

It supervises and checks the cane price bills, sugar bills. Recovery bills of seeds and fertilizers loan from

the cane grower and make arrangements for funds to the concern banks for payment.

Procedure of payment to the growers:

The cane reaching the mill is weighted and voucher is prepared in quadruplicate. The voucher shows the

gross weight of cane. The first copy of voucher is given to the grower and second copy is sent to the cane

department .The third copy is sent to the cane account section and the last copy is sent to the carriage

contactor.

After receiving copy of the voucher, cane department makes entry in the gross tire register. Then cash

voucher and control ledger posting sheet is prepared and the posting sheet along with the tire register is

sent to the main account section.

When the posting sheet and gross tire register reaches in the tire account section the gross tire clerks

checks the posting sheet and then send it to the loan section .In this section loan is deducted from the

actual payment and send it to the voucher checker. The voucher checker then determine the cost of the

cane i.e.net payable amount to the grower .The posting sheet is then sent the gross checker who make


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super checking of the posting sheet .the gross checker then sent the posting sheet along with the bills in

the duplicate.

1 CANE PRICE BILLS

2 SUGAR BILLS

3 CARRIAGE CONTRACTOR BILLS

One copy of each of the above bill is sent to the concerned bank for payment .The bank makes the

payment after fifteen days of receiving the bill from the cane account section.

The project has specified some branches of the scheduled banks in different zones. At the beginning of

the season the lump sum amount is deposited with each branch for payment to the grower. Each branch

maintains it daily records of payment to the grower and provide it at the end of each month to the cane

account section The cane record of payment is checked with the posting sheet of different zones .The

cane account section then makes the vouchers of payment to the cane growers and submit it to the main

account section.

Cane account section therefore plays an important role in the project. This section determines the cost ofthe cane and makes arrangement for payment to the cane grower and cane carriage contractor.

Analysis of various Accounting Procedures in the company:

Going concern:

These accounts have been prepared on going concern basis despite the fact that during the year the

company have incurred a net after tax profit of Rs. 0.314 Million and its accumulated loss stood at

Rs.41.186 Million, causing erosion in share holders equity. The current ratio is adverse and showingdeterioration over preceding year. However the going concern basis is valid as:

The company is able to arrange finance for its smooth operations.

Repayment of liabilities is being made and arrangements for matured finance have been made and there

are not defaults.


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Projected cash flows shows better results in future.

Accounting convention:

These accounts have been prepared under the historical cost convention.

Staff retirement benefits:

The company operates a defined Contribution Recognized Provident Fund Scheme for its eligible

permanent employees who opted for the benefits. Equal monthly contribution are made, both by the

company and the employee to the fund at the rate of 10% of basic pay.

Taxation:

Current:

Provision for current taxation is based on taxable income at the current rates of taxation after taking into

account admissible tax credits and rebates, if any.

Deferred:

The company accounts for deferred taxation on all significant timing difference using liability method.

Fixed assets:

Companys owned:Operating fixed assets are stated at cost less accumulated depreciation except freehold land and capital

work-in-progress which are stated at cost.

Depreciation is computed by applying reducing balance method whereby the cost of an asset is written off

over its estimated useful life. Full year depreciation is charged on the assets acquired during the year

while no depreciation is charged in the year of the disposal.

Maintenance and normal repairs are charged to income as incurred. Major renewals and improvements

are capitalized and assets so replaced if any, are retired. Profit or loss on disposal of fixed assets is

included in the current years income.

Leased assets:

The company accounts for plant and machinery under financial lease by recording the asset and related

liability. The amount are determined on the basis of discounted value of total minimum lease payments

and residual value of the asset at the end of lease period to be paid by the company.

Finance charges are allocated to accounting period in a manner so as to provide a constant periodic rate

of charge on the out-standing liability. Depreciation is charged at the rates specified in the related note to

write off the asset over its estimated use-full life keeping in view of the certainly of the ownership of the

asset at the end of lease term.

Lease rentals payable on assets held under operating lease are charged to profit and loss account for the

year.


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Long Term Investment:

These are stated at cost, less provision for permanent diminution if any in the value of long term

investment. Working of permanent diminution determined on the basis of difference market price

prevailing during the year and carrying value of the investment.

Inventories:

These are valued as follows: Basis:

Store and spares

-In stock -At cost on FIFO basis.

-In transit -At actual cost.

Loose tools -At valuation.

Work-in-process -At average cost of raw materials.

Finished stock -At lower of average cost and net

Realizable value.

Molasses -At net realizable value

Trade debts:

Debts considered irrecoverable are written off and provision is made for the amounts considered doubtful,

if any.

Revenue recognition:

Sales are recorded on dispatch of goods to customers. Income for SNTDs/Profit on bank deposits/COIsand rent is recognized on accrual basis. While income from dividend is recognized when right to received

the same is established.


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Financial analysis

1. Horizontal + vertical analysis

2. Ratio analysis

INCOME STATEMENTS FOR THE LAST FIVE YEARS

2000 1999 1998 1997 1996

Sales 710380214 916602792 831611332 540572289 528738466

Cost of sale 612248348 824957306 764171721 513867334 451316012

Gross profit 98131866 91645486 67439611 26704955 77422454

Selling expenses 1978790 14330457 1965947 1193813 1495007

Administration expenses 38903083 34034120 28294359 26154434 31024115

40881873 48364577 3260306 27348247 32519122

Operating prfit/(loss) 57249993 43280909 37179305 -643292 44903332

Other income 8916964 3029040 1391158 5595783 2613995

66166857 46309949 38570463 4952491 47517327

Financial charges 60835837 38872986 44085736 42327479 48742830Other charges 1096662 1042880 211997 893387 358137

61932499 39915866 44297733 43220866 49100967

profit/ (loss) before taxation 4234358 6394083 -5727270 -38268375 -1583640

Taxation 3920008 151069 4687841 508695 1711500

Profit /(loss) after taxation 314350 6243014 -10415111 -38777070 127860

Appropriation

Transfer from


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general reserve 6000000

Interim dividened (5,029,728)

314350 7213286

unappropriated lossb/f (41,500,778) (48,714,064) -38298953 478117 350257

accumulated profit/ (loss) c/f -48714064 -38298953 478117

Balance sheet

2000 1999 1998 1997 1996

ASSETS:

tangible fixed assets:

operating assets 721714036 532408169 511617023 552599553 587665901

capital work in progress 11524252 90157171 108655188 7262843 18755571

733238288 622565340 620272211 622862396 606421472

long term investments 20662667 22537900 10037900 10037900 10037900long term loans 362280

long term deposits 27978541 22334830 12125130 19375130 21884730

CURRENT ASSETS

stores spares 63750696 68272304 59379896 63582180 72749612

stock in trade 2254867 407776 89271555 40154151 1094957

trade debts 5654650

short term investments 4113322

loans and advances 13562375 63101972 13615670 13566216 14807087

deposits & prepayments 8634398 4211716 9437510 3025493 6098208

cash and bank balances 69099313 6925345 3722261 6645238 1101494

157301649 142919113 175426896 126973278 105619330

total assets 939181145 810357183 817862137 779248704 744325712

Balance sheet liability side

2000 1999 1998 1997 1996


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SHARE CAPITAL AND RESERVES:

SHARE CAPITAL:

authorized, Rs 10 each 150000000 150000000 150000000 150000000 150000000

issued, subscribed and paid up 50297280 50297280 50297280 50297280 50297280

revenue reserves 6000000 6000000 6000000

accumulated (loss) or profit -41186428 -41500778 -48714064 -38298953 478117

9110852 8796502 7583216 17998327 56775397

subordinated loans 451000000 466000000 466000000 452000000 417000000

long term loans 45750000 30000000

redeemable capital 4000000 19147770

liabilities against assets subject to f. lease 141437404 78669283 37104799 67784794 65702317

Marabaha finance 15264040

deferred liabilities 17488093 27416885 7110410

deferred taxation 6000000 6000000 8300000

CURRENT LIABILITIES

current portion of L/T liabilities 127483883 59508341

short term running finance 115035070 72399065 134731755 115625926 55511877current proportion of redeemable capital 4000000 15147770 20573601

C/T against assets subject to F. lease 30679995 31269316 43848926

current portion of the deferred liabilities 7214970

creditors, accruals and other liabilities 29768462 71177897 92225117 58567469 54611980

provision for taxation 4331434 6318002 4905400 3744692 2853844

276618849 209403305 273757237 224355173 177400228

contingencies and commitments

TOTAL 939181145 810357183 817862137 779248704 744325712

FINANCIAL ANALYSIS

The process of the financial analysis basically involves viewing the financial position of the organization

from different angles. The basic purpose of the making the financial analysis is to see whether the

organizations performance is in accordance with the plans of the management and whether theobjectives of the organization are being met or not. In short it is the assessment of the firms past, presentand the anticipated future financial condition. Because of the financial analysis, firms strengths andweaknesses are highlighted. The financial analysis can be,

Internal

External

INTERNAL ANALYSIS

When the analysis is done by the internal employee of the firm then it is called as the internal analysis.

EXTERNAL ANALYSIS

When the analysis is carried out by the external analyst, then it is known as the external analysis.

OBJECTIVES OF FINANCIAL ANALYSIS:


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The particular objectives sought to the served by financial analysis determine the type of ratios as well as

the extent and depth of ratio analysis to be carried out to draw conclusions. Financial analysis is carried

out by;

Business Concern:

For assessment of profitability of the business.

For assessment of stability and financial strength of the business entity.

Management:

Assessment of efficiency of resources utilization.

Assessment of potentials of profitability.

Evaluation of different management controls.

Investors:

Assessment of earnings and divided prospects.

Growth in economic value of investments vis--vis risks undertaken.

Bankers/Creditors Concern:

Assessment of the ability of the business to service its debt obligations.

Debt coverage.

Proper utilization of assets financed.

Government Concern:

Evaluation of the economic contributions of the business entity.

Determination of the entitys financial strength to carry social and development programs.

THE TOOLS USED

The tools used by the both internal and the external analysts are the same but the purpose for carrying

out the analysis different. The tools commonly used are as follows,

1. Trend analysis

2. Common size analysis

3. Ratio analysis

TREND ANALYSIS

The word trend normally represents the direction. So in the trend analysis, we see that in which direction

i.e. favorable or unfavorable, a particular firm is going.In this analysis, a year is taken as the base and the other years quantities are expressed in term ofpercentages of the base year. Generally, the first year is taken as the base year; trend analysis involves

the computation of the percentage relationship that each figure bears to the same item in the base year.

This analysis helps in forming an opinion as to whether the favorable or the unfavorable tendencies are

reflected from the data.

COMPARABILITY OF THE TREND ANALYSIS


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The comparability of the trend analysis is affected by ,

The accounting principles and the policies followed during the years which are under consideration.

Therefore, the accounting policies must remain same during the periods of comparison

The prices when these change materially. Therefore for the trend analysis to be effective, the prices must

remain unchanged during the period under consideration.

Trend analysis for the FECTO SUGAR MILLS LTD.

INCOME STATEMENT ANALYSIS

SALES

From the sales figure we can see that the sales are not going in the favorable direction recently. The

trend in the sales, taking year 1996 as base, is as follows,

102.24% in 1997

157.2822 % in 1998

173.3566% in 1999 &

134.3538% in 2000

From the above data we can conclude that the year 1999 was the time of boom for the company. Up to1999, the sales grew in an increasing pattern but these fell down drastically in the year 2000. It is

because of the shortage of the sugar cane in the area.

COST OF GOODS SOLD

The trend is as follows,

135.6585% in 2000

182.7893% in 1999

169.3208% in 1998

113.8598% in 1997

The same trend was there in the CGS as we found in the sales. The reason being the same for the both.

It is not a bad trend because the cost

Documents

Ashraf Sugar Mill