report sugar mill

PREFACE

This report describes the effort made by me for the learning by first hand practical experience

about a business organization. Today is the era of experience as is said by quotation “Experience

makes a man perfect.” No body can deny the importance of practical training and experience.

Through internship students get the first touch of professional exposure of the roles; they have to

play during their professional careers. The students not only acclimatize themselves to the

corporate environment but also learn to assume responsibility, co-operation and teamwork the

hallmarks of modern management.

Having experience of sugar industry is really a good experience for me. I am submitting all my

experiences. No doubt, omissions and errors are expected but it is requested to ignore the

nominal errors.

I was lucky enough to have a chance of doing internship in HEAD OFFICE OF LAYYAH Sugar

Mills Limited KARACHI. I learnt a lot about the practical business and above all, the mental

discipline and awareness, which are the most useful tools for an executive to raise the

organizational structure.

ACKNOWLEDGEMENT

First of all, I want to express all and thanks to ALMIGHTY ALLAH whose blessings are above

each and every thing which make me able to present my tiny effort. All prays toHAZRAT

MUHAMMAD (PBUH)who is the reason for creation of the universe and whose kindness came

to my part.

Secondly on the successful completion of my internship program, I whish to express my

gratitude and heart worthy acknowledgement to my professors for full co-operation and helped

me in completing this report. I feel utmost pride in acknowledging with sincere gratitude for the

valuable guidance I have received from Mr. Hassan buchas and Mr.zubair.

They have been a constant source of enthusiastic encouragement through out the internship

program. Due to their guidance I have become able to complete internship as well as this report.

Their advice, criticism and remarks were of the most value to me.

GROWTH OF SUGAR INDUSTRY IN PAKISTAN

Sugar is the important sector of the Pakistan’s economy. Sugar industry plays a vital role for

development of any country’s economy. In Pakistan this industry play a significant role for

economic development.

Itsshare in the large scale industryis 18% and in GDP is 1.9%.sugar industry contribution to the

government exchequer in Federal excise duty is 11.2%.

HISTORY

The sugar industry, which is endowed with a strong base of sugarcane, had started its journey

from almost non-existence in 1947. The industry has gone through a long way and now

possesses 77 sugar mills in all over the country. The Sugar industry not only fulfills the entire

local requirement but also sharing out the total foreign exchange earning.

At present Pakistan’s sugar industry is facing lot of problems like lesser demand of sugar in the

country due to recession in the economy, declining prices into the domestic as well as

international markets & huge unsold stock of sugar. Government role in R & D for developing

the sugarcane varieties is not very significance; only few private institutions are doing some

research in R & D in developing various varieties with higher yield.

Pakistan sugar industries still have 34% un-utilized capacity. Which can be utilized by further

developing the 13224 hectares area along the main feeder canal from Indus river in Sindh. By

which we can increase our export to 50000 ton. ( this export to Arab World can be exchange of

half million barrels of crude oil for Pakistan.

In Pakistan present sugar cane varieties are not yielding reasonable production and led to the

prevailing sugar crisis. As described by the table.

Countries 1989-92 1993-97 1998-2002

USA 77.44 76.80 75.19

Mauritius 70.33 72.83 71.39

India 66.06 64.14 70.30

Brazil 62.02 61074 67.42

Pakistan 41.55 43.38 43.54

Cuba 59.98 57.04 34.83

BRIEF INTRODUCTION

INCORPORATION

LAYYAH Sugar Mills Limited was incorporated on May 26, 1954 as a public limited

company. The authorized capital of the share of the company was Rs.350, 000,000/-.Uder

the policy of privatization of Govt. of Pakistan under the supervision of Prime Minister

Mian Nawaz Sharif, the Layyah Sugar Mills was privatized in May 1992 with the net

amount of RS.150,00,000 and an agreement of fulfilling the liabilities of the sugar mill for

the compensation of its accounts to the employees and other stakeholders. The previous

sponsor of the company could not manage to setup the project and finally on intervention of

the BEL shares.

The management of the project was transferred to the new sponsors in 1992. The mill is

spread over the area of 250 acres land.

MISSION OF LAYYAH SUGAR MILLS LIMITED

To produce superior quality White Refined sugar.

To face competition in the Local & International Market.

Total Quality Management.

OBJECTIVES

Following are the objectives of company.

1. Total quality focus to meet customer’s requirements.

2. The highest standard of business ethics.

3. To care on the business ethics.

4. To carry on the business at best possible level.

5. To guarantee performance of contracts by members or persons having dealing with the

company.

Organizational Structure/Hierarchy

HEAD OFFICE:

GULSHAN LAHORE

MANAGEMENT PROFILE

Chairman MIAN FAZAL HUSSAIN

Chief Executive MR. JAHANZAIB FAZAL

Managing Director Mr. RAISUDDINE SHAIKH

Director finance Mr. Bashir Ahmed

Director (HRD&P) Mr. Noor Ahmed Zaib

Manager(HRD&P) Mr. AKHLAQUE KHAN

General Manager (f) Mr. Ghulam Hassan shigri

General Manager (plant) Mr. Mohabbat Ali Khan

Auditors: Mr. Nouman Mehmood, FCA

Avais Hyder Zaman Rizwani

Legal Advisors:

Mr. Muneeb Akhter Advocate

A.K.Brohi & co.

Banks Muslim Commercial Bank Limited

National Bank of Pakistan

Habib Bank of Pakistan

NATURE OF BUSINESS

Crushing of Sugarcane & Raw Sugar in to White Refined Sugar.

LOCATION

LAYYAH Sugar Mills Limited is located at distance of about 3 KM from the city of

Layyah.

HEAD OFFICE

Head Office of LAYYAH Sugar Mills Limited is located at Fazal Manzil, Gulshan Lahore.

FINANCIAL YEAR

The financial year of the company is from 1st October to 30th September.

RAW MATERIAL

The main raw material for the mill is sugarcane, which is abundantly available in Pakistan.

The second raw material is Baggas. Some of which is obtained by the own crushing the other

will be purchased by the Beggas Venders/Suppliers.

MAIN COMPETITORS

Sheikhoo Sugar Mills kot Adu

Fatima Sugar Mills Sanawan

Bhukar Sugar Mills Bhukar

Khan Sugar Mills Faisal Abad

Sharif Sugar Mills Mian Chunnu

WORK FORCE

Detail of total working force at site and at head office is as under:

AT SITE

Permanent Employees 457

Temporary Employees 150

Seasonal Employees 400 (app.)

Daily Wages Employees 40

Total 1047

AT HEAD OFFICE

Permanent employees 25

Temporary Employees 5

Total 30

MAIN DEPARTMENTS

Following are the main departments at Site and at Head Office.

AT SITE

1. MECHANICAL

2. ELECTRICAL

3. CHEMICAL

4. CANE

5. ACCOUNTS

6. COMPUTER

7. ADMINISTRATION

AT HEAD OFFICE

1. FINANCE

2. ACCOUNTS

3. ADMINISTRATION

4. PURCHASE

5. SALE

ADMIN DEPARTMENT

Admin department is the department, which is dealing matters about administration. This

department plays very important role for maintaining discipline in the mills. Admin department

is working under Admin Officer, who has much more experience about administration matters.

FUNCTIONS

The main function of this department is to handle all the administrative matters and maintaining

discipline. The main goal of this department is to provide easy working environment. This is

very important department of the organization as the name shows; this department has to

administrate all the operations of the organization. Sections of this department are divided into

offices as under:

Gate Office

Time Office

Security Guard Office

Labor Office

GATE OFFICE

This office has been made to keep the record of each and every thing coming into and going out

of the mills gate.

For this purpose gate office clerk maintains two types of registers called;

1. Outward going pass register

2. Inward going pass register.

When every thing including raw material, stores supplies, or any other thing comes into the mills

premises a document named as I.G.P is made in which information like date of supplier,

description, quantity of the material and any other remarks are written. In the same way, O.G.P is

prepared for out going things etc.

TIME OFFICE

This office keeps and maintains the time record of all the workers on time cards and

pay register for the final costing of the workers salaries.

It keeps the attendance records, which is than used to calculate the salary to be paid

to the workers on monthly basis.

It keeps the records of the over time, leaves, number of days worked of all the

workers and than calculate their over time on the basis of the basic salary of each

worker.

It keeps the records of Social Security, EOBI, Education Cases etc. of each employee

/ worker payable to government treasury.

It keeps the records of Gratuity, Bonus, Pensions and other benefits including CPL (Cash Paid

Leave) to each employee / worker of the organization.

SECURITY GUARD OFFICE

The main objectives of the security office is to safe handling of the goods from / to the mill

premises. For the achievement of such objective a team of security guards has been employed by

the company. All the keys relating to the mills office, labor colony, (quarters) are lying into the

responsibility of the security officer.

No out side visitor can come into the mills premises without the permission of the

security guards.

Whenever any visitor wants to enter into the mill, security guards firstly contact with

the authority in the mill to grant the permission to enter into the mill premises.

Security guards can check each and every person before coming in or going out of the

company gate for the security purposes.

They see and check the outward going pass of the certain things when these ought to

bring out of the mill premises.

They are in uniforms of dark green color.

They are the guardians of the every thing of the company.

The organization also has purchased a human scanning security system, throughwhich the record of each employee and visitor is maintained. This system has reduced the fair of any type of theft.

HUMAN RESOURCE DEPARTMENT.

As required by the labor laws of the Government of Pakistan, this office has been setup to deal

with all the matters that are related with labor and other human resources. The Manager

(HRD&P) is the head of the H.R.DEPT.

He is responsible to resolve all the disputes, conflicts, misunderstandings and any other

hind of matter, which may arise from time to time between the labor and the immediate

supervisor, or with any other person in the organization.

It is the duty of the Manager (HRD&P) to inform the legal requirements concerning the

labor and company affairs.

It is also the duty of the Manager (HRD&P) to satisfy himself regarding payment of

bonus, gratuity, and other benefits to labor and to keep their morale and motivational

level high.

It is also a requirement to be a successful Manager (HRD&P) that he should keep his

knowledge up to date regarding the rules and regulations of the labor department.

Manager (HRD&P) is responsible for the implementation of the strategies and rules made

by the higher authorities.

Manager (HRD&P) also helps the higher authorities in strategic decision-making.

Career Management

Career planning and development are relatively new concepts in many HR departments. In recent years, these departments have begun to recognize the need for more proactive career-related efforts. As a result, some departments provide career education, information, and counseling. However, the primary responsibility for career planning and development rests with the individual employee.

The planning process enables employees to identify career goals and the paths to those goals. Then, through developmental activities, the workers seek ways to improve themselves and further their career goals. Even today, most developmental activities are individual and voluntary. Individual efforts include good job performance, favorable exposure, leveraging, and the building of alliance. The HR department becomes involved by providing information and obtaining management support to help make career planning a success for both the employees and the organization.

Career planning does not guarantee success, but without it, employees are seldom ready for the career opportunities that arise. As a result, their career progress may be slowed and the HR department may be unable to fill openings internally.

A Systems view of Career Planning and Development

(Career Paths)

(Feedback)

Different terminologies which are commonly covered in career managementCareer:

A career is all the jobs that are held during one’s working life.

Career Path:A career path is a sequential pattern of jobs that form one’s career.

Career Goals:The future positions one strives to reach as a part of career. These goals serve as a benchmarks along one’s career path.

Career Planning:The process by which one selects career goals and the path to those goals.

Career Development:Career development consists of personnel improvements one undertakes to achieve personnel

career plans.Now we discuss the various human resource activities to the career management in our organization.

Career Planning Career Goals

Career Development

Job Analysis and Design

Job analysis information provides the foundation for an organization’s human resource information system. Analysts seek to gain a general understanding of the organization and the work it performs. Then they design job analysis questionnaires to collect specific data about jobs, jobholder characteristics, and job performance standards. The job analysis information can be collected through interviews, juries of experts, mail questionnaires, employee logs, direct observation, or a combination of these techniques. Once collected, the data are converted into such useful applications as job descriptions, job specification’s and job standards.

Job analysis information is important because it tells HR specialists which duties and responsibilities are associated with each job. This information is used when HR specialists undertake HR management activities such as job design, recruiting, and selection. Jobs are the link between organizations and their human resources. The combined accomplishment of every job allows the organizations to meet its objectives. Similarly, jobs represent not only a source of income to workers but also a means for fulfilling their needs. However, for the organization and its employees to receive these mutual benefits, jobs must provide a high quality of work life.

Achieving a high quality of work life requires jobs that are well designed. Effective job design requires a trade-off between efficiency and behavioral elements. Efficiency elements stress productivity; behavioral elements focus on employee needs. The role of managers and HR specialists is to achieve a balance between these trade-offs. When jobs are underspecialized, job designers may simplify a job by reducing the number of tasks. If jobs are overspecialized, they must be expand or enriched.

Relative To Career Management

Provides base for the job orientation that ultimately help in career management.

It helps to reduce reality shock that ultimately minimize the turn over ratio

HR department provides career information that is career path and job description and

specification of each job by using the job analysis.

It helps supervisor during career counseling.

It helps employees to set goals and career planning.

It provides information for future training and development of the employee to each his or

her career goals.

It helps in career development action of the employees

Organization viewLayyah Sugar Mills considers the job analysis. In orientation for career information, to

reduce reality shock, career counseling and career development.

Employee’s view

First level employees: The orientation is not comprehensive and does not reduce the

reality shock completely. Organization is not providing career information properly.

Middle level employees: They are satisfied with organization effort.

Upper level employees: they think that professional approaches should be followed.

HR Planning

It is a systematically forecasting of an organization’s future demand for and supply of employees. It integrates strategic demands with appropriate staffing levels and also helps in improving the utilization of human resources. To match HR activities and future organizational objectives efficiently and to achieve economies in hiring new workers Most of the organizations are using the tools of HR planning. HR planning helps in making major demands of local markets successfully. In coordinate different HR programs such as affirmative action plans and hiring needs. Different forecasting techniques are used to predict the future demand and supply of employees.


It helps in short range and long range plans that outline the future demands and sources of supply. Tight market is the indication of strong career development and loose market is the indication of weak career management.

HRP helps the organization to manage the training and development program for career development of the employees

It helps supervisor during career counseling. It helps employees to set goals and career planning. It provides information for future training and development of the employee to each his or

her career goals. It helps in career development action of the employees It is the basic requirement of succession planning.

Organization view

Layyah Sugar Mills is considering HRP once in a year but not considering the succession

Employee’s view

First level employees: yes they are conducting the HRP but we think it is not helping us

in our career development.

Middle level employees: They are agreed with above arguments of first level

employees.

Upper level employees: same thinking as above two.

Recruitment and Selection

Recruitment is the process of finding and attracting capable applicants to apply for employment. Although operating managers are often involved, much of the recruitment process is the responsibility of professionals in the HR department; these professionals are called recruiters. Recruiters should be aware of the constraints and challenges surrounding the recruitment process before they attempt to find suitable applicants.Recruiters pursue applicants through a variety of channels. Although walk-ins and write-ins are a common source, the growing diversity in the workforce and changing demographics often require recruiters to be more proactive. Employee referrals and advertisements are other sources. To help recruiters, a variety of public and private organizations exists, such as state unemployment offices, private placement agencies, and search firms. Many institutions—schools, labour organizations, professional associations, military facilities, government and community training programs—also provide placement assistance that recruiters can access. Temporary, leased, and departing employees are other sources of potential recruits.

International recruitment faces many of the same issues as domestic staffing except that the issues are often far more complex regardless of whether the recruiter seeks to bring someone to the home country or send that person overseas. Of particular importance, recruiters must be aware of national differences in recruitment practices and employee expectations.

The selection process depends heavily on inputs such as job analysis, HR plans, and recruitment. These inputs are used within the context of challenges posed by organizational policies, equal employment laws, Immigration and Naturalization Service rules, a slow-growing supply of labour, credential distortion, and other legal concerns faced by the organization.

The key challenge that underlies the entire selection process is to ensure that the steps in the process are valid. In all phases of the selection process, HR professionals also must be concerned about the potential for an adverse impact during the various steps of the process. Even when the overall selection process does not have an adverse impact on members of protected classes, evidence of a discriminatory impact at any stage of the process should be investigated and the discrimination should be eliminated wherever it is found.

Steps in the Selection Process

The selection process must take recruits and put them through a series of steps to evaluate their potential. These steps vary from organization to organization and from one job opening to another. In general, the selection procedure relies on testing for many hourly jobs and on interviews for virtually every opening that is to be filled. References and medical evaluations are common aspects of the selection process of many employers.

The supervisor’s role should include participation in the selection process, usually through an interview with job candidates. As a result of this participation, the supervisor is more likely to be committed to the new worker’s success. Growing research evidence supports the use of realistic job previews.Once the hiring decision is made, the HRIS should be updated with detailed information about the new hire. If the department uses valid procedures and ethical behaviors, it can make a substantial contribution to the success of the employer and therefore the bottom line.


It helps in making the good pool of employees and in selection of the

appropriate employee for an appropriate job so that the turn over ratio can be minimized

which ultimately helps in good career development.

Organization view

Layyah Sugar Mills has a comprehensive setup for recruitment and selection. Different

techniques like job interview, old job performance, panel interviews etc.

References are also obliged.

Employee’s view

First level employees: No, they only make recruitments on the references.


Upper level employees: they think that professional approaches should be followed.

Orientation And Placement

Once the selection process has been completed, new employees must be oriented in order to become productive contributors. Orientation not only improves the rate at which employees are able to perform their jobs but also helps employees satisfy their personal desire to feel they are part of the organization’s social fabric. The HR department generally orients newcomers to broad organizational issues and fringe benefits. Supervisors complete the orientation by introducing new employees to coworkers and others involved in the job. A “buddy” may be assigned to continue the process.

Proactive HR departments follow up after the orientation to ensure that the employees do not have any remaining questions and check on the quality of the orientation.

When job openings are filled internally, the placement process also should include an orientation, especially placement decisions that involve moving people across international borders. The process of placing current employees in different jobs or separating them from the organization often involves a decision made by line managers in consultation with the HR department. Included here promotion, transfers, and demotion. Although promotions come about in a variety of ways, they usually result from merit, seniority, self-nomination, or a combination of those approaches. Transfers and demotions also call for the advice of the HR department.


Orientation helps in making the employees able to set their career path and career

development.

Placement helps the employee to achieve their career goals and also helps to reduce the

stalled career.

Placement is also an important source of increase the motivation and loyalty of the

employees.

Organization view

Layyah Sugar Mills is completely fulfilling the above defined goals of placement and

orientation.

Employee’s view

First level employees: No, they think that placement decisions are made on the

favouratism and personnel influences and we did not get any orientation.


Upper level employees: orientation and placement efforts are appropriate.

Training and Development

After workers have been selected and oriented, they may still lack the skills, knowledge, and abilities needed to perform successfully. Most workers require some training to do their current jobs properly. If the organization wishes to place these employees in more responsible positions in the future, developmental activities also have to take place. For most workers and trainers, individual learning sessions are a blend of training and development.

Most large organizations make available a broad array of educational opportunities. However, trainers should conduct a needs assessment to determine if the training is truly needed and, if it is needed, what it should cover. Training and development, or learning, objectives result from the needs assessment. Trainers can plan the content of the course from these objectives and incorporate as many learning principles as is feasible.

Merely conducting training—even when a careful needs assessment has been undertaken—is insufficient. Experienced trainers try to evaluate the impact of training and development activities. Often this involves a pretest and a posttest and even follow-up studies to see if the learning was transferred to the job.

HR development prepares individuals for future job responsibilities. At the same time, it attempts to contend with employee obsolescence, international and domestic workforce diversity, technological changes, affirmative action, and employee turnover.


Training and development programs play a vital role in the career management of the

employees. It able employees to achieve their career goals and for career development. It

also helps in succession planning.

Organization view

Layyah Sugar Mills is providing their employees training through different programs but

most of the techniques used are on the job. Off the job training is somewhat applies to the

higher level management and mechanical staff.

Employee’s view

First level employees: yes. They are providing but up to some extent. Because for

training and development is not merit basis & there is no procedure for the off the job

training.

Middle level employees: No, organization is not providing good opportunities for

training and development. They are not satisfied with organization effort.

Upper level employees: they think that organization is not following a professional

approach. They are providing us training for only the existing jobs not for the future

career.

Performance Appraisal

Performance appraisal is a critical activity of HR management. Its goal is to provide an accurate picture of past and / or future employee performance. To achieve this, performance standards are established. The standards are based on the job-related criteria that best determine successful job performance. Where possible, actual performance is measured directly and objectively. Form a wide variety of appraisal techniques; specialists select the methods that most effectively measure employee performance against the previously set standards. Techniques can be selected both to review past performance and to anticipate performance in the future.

The appraisal process is usually designed by the HR department, often with little input from other parts of the organization. When it is time to implement a new appraisal approach, those who do the rating may have little idea about the appraisal process or its objectives. To overcome this shortcoming, the HR department may design and conduct appraisal workshops to train managers.

A necessary requirement of the appraisal process is employee feedback through an evaluation interview. The interviewer tries to balance positive areas of good performance with areas where performance is deficient so that the employee receives a realistic view. Perhaps the most significant challenge raised by performance appraisals is the feedback they provide about the HR department’s performance. HR specialists need to be keenly aware that poor performance, especially when it is widespread, may reflect problems with previous HR management activities.

1.To improve organizational performance via improving the performance of individual contributors (should be an automatic process in the case of good managers, but (about annually) two key questions should be posed:

o what has been done to improve the performance of a person last year? o and what can be done to improve his or her performance in the year to come?).

2. To identify potential, i.e. to recognize existing talent and to use that to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.

3. To provide an equitable method of linking payment to performance where there are no numerical criteria (often this salary performance review takes place about three months later and is kept quite separate from 1. and 2. but is based on the same assessment).


provide feedback for career development action

it helps in placement decision on the basis of performance.

You can set the targets and standard which becomes the first step for the career

development.

Made a standard routine task

it aids the development of talent

can be an effective form of motivation.

It creates or does not create the need for career development.

It describes the training and development needs.

Organization view

Layyah Sugar Mills strongly applies performance appraisal but there are chances of error

bias as halo effect, the affect of central tendency etc.

Employee’s view

First level employees: performance appraisal does not measure the actual performance

efficiency. It is not sensitive.

Middle level employees: Same as first level employees.

Upper level employees: Same as first level employees.

PRODUCTS OF THE COMPANY

SUGAR INDUSTRY IS AN AGRO-BASED INDUSTRY, WHICH PROVIDES

EMPLOYMENT TO THE LANDLESS RURAL POPULATION AND HASE A GREATE

IMPECT ON THE ECONOMY OF A COUNTRY.

The main product of the company is White Refined Sugar.

The three principle bye-products of a sugar industry are

1. Bagasses

2. Molasses

3. PRESS CAKES (WHICH R ABOUT 40% OF THE WEIGHT OF TOTAL CANE

CRUSHED.)

4. MUD

WHITE REFINED SUGAR

Major business of the company is to produce white refined cane sugar of intermission standard

and from the erased cane and three different components are achieved that are fibber, Pith and

Moisture.

MOLASSES:

THIS IS A BY-PRODUCT AND IT IS SOLD TO MOLASSES CONTRACTORS. ONE OF

THE ALLIED CONCERN, RELIANCE COMMODITIES (PVT.) LIMITED IS THE MAIN

BUYER OF THE MOLASSES OF LAYYAH SUGAR MILLS LIMITED AND ALSO THE

MAIN BUYER OF MOLASSES FROM WHOLE THE COUNTRY.RELIANCE

COMMODITIES (PVT) LIMITED IS THE MAIN EXPORTER OF MOLASSES IN

PAKISTAN. Molasses may be used for the production of power alcohol acid portable spirits.

BAGGAS:

This is also a by-product of the company. Begass is used as source of energy fuel for sugar

industry for juice heating. and also used for making medium density fiber board (MDFB).

baggasse is sold to the baggasse contractors.

MUD:

Mud is also the by-product of the company. It is sold to the Mud Contractors.

This is used in making chocolates and other products.

PRESS CAKE:

Press cake of sulphitation factories are used as manure and that of carbonation factories are

usually burnt.

PRACTICAL OF MY OWN WORK

I am worked in finance department in the section of store account. I learn about the different document related to purchasing and payments through voucher ,work order ,inward gate pass, inspection report ,store receiving note ,store requisition ,store return note.This department started his work with Demand and Purchase.There three types of purchase is given following.1. Local purchase2. Head office purchase3. Work order purchaseThe purchase of mill through the purchase section and purchase committee.Purchase Section:This is a section comprising of following staff authorized in the purchase of the mill. It function of establishment under the manager(P&A).It should be operative at all times.a.Purchaserb.Purchase clerk.Purchase Committee:All purchases at site will be processed through the purchase committee constituted as under and as procedure given in the subsequent pars:-A .Manager(P&A) Presidentb. Purchaser MemberThere are following document are used for purchasing.Inward Gate Pass:At the time the purchased a goods are brought to mill,the gate pass in charge will clerk quantity and prepare three copies of inward gate pass.a.Main store First copyb.Store Accounts Second Copyc. Gate Incharge Third copy

Store inspection Report :On arrival of the goods.Store Officer will check the quantity and quality of the goods as per purchase indent.The prepare of SIR within 48 hours and these signed by Head of Department.A.Main store first copyB.Store Accounts Second copyC.Head of Department Third copyStore Receiving Note:After inspection of goods store officer will prepare of store receiving note early mentioning on it.Preparation of Salary:After checking and understanding these document my second work understanding the prepation of salary sheet of Employees and workers.I site under the instructions of CH. Muhammad Shrief (Assistant accountant) of finance department he deals all types of salary and wages payments his responsibilities are verify the salary, Bonus , increment semi contractual payments, incentive payments, overtime payments, commission payments, , maintaining , Record keeping and salary preparation they give a specific

code is given of all workers and Employees in Salary system. Salary of preparation of worker in monthly basis daily basis and permanently.Understanding and verify Bills:I site under the instructions of Mr. Tanveer (Accountant) his responsibilities are:-Verify all utility bills and general bills and send to head officeMonitor and signed all gate passesVerify employee fuel and telephone billsVerify companies’ vehicles, blue sky, petroleum billsVerify company courier billsVerify accessories and general purchase bills, There are two main head of this system like GERNAL & Accessories. The first head is gernal and manage the all gernal things such as furniture, stationary, and some other things.

I site under the instructions of different persons and I learn from senior officers about provisional P & L account, and sales. In this last week I also collect the informationabout the products of the company, customers and contacts of the company and conduct SWOTanalysis, trend analysis, critical analysis, horizontal analysis, vertical analysis and ratio analysis. After it I conduct conclusion and give suggestions for the benefit of the company.

Swot Analysis

Strengths:

ISO 9001-2000

Strong

Security System

High quality product

Latest mechanized machinery.

Tremendous market positioning

Highly qualified and skilled management

Highly Motivated Workforce

Adequate financial resources

Competitive advantage

Own power generation plant

Opportunity:

Organization can expand product lines

Organization can capture new market segments around the world

Organization can reduce the cost by proper utilization of resources

Organization can hire more well-educated and experienced person

Weaknesses:

High cost of production

Centralized decision making

Less promotional activities

Threats:

New Entry of competitors

Buyer needs demands changes

Political instability

Change of government policies

Globally Economic instability

Detail of SWOT Analysis

Strengths:

ISO 9001-2000:TSML is certified under ISO 9001-2000 and so it meets the requirement of international standard and has a value in the mind of concern people.

Strong Security SystemTSML has a greater security system. There are different hidden security cameras which capture all the moments.

Hh quality productigTSML is using advance technology like they have modern machinery by which the quality of product produced is very high.

Latest mechanized machinery.They are using modern looms which they have purchased from Japan,Germany and France. And by using that latest machinery the productivity of the employees are very high.

Tremendous market positioningTSML is one of the Pioneer Sugar Group in the Pakistan so it has got the position in the mind of its customer. And being an old sugar company people are loyal with it. TSML has a better position in the mind of its customers. Highly qualified and skilled managementThe management of TSML is skilled they have hired the foreign graduate people in their management and also experienced people from all over the country.

Highly Motivated WorkforceThey are providing better pay to their employees and also bonus to them which motivate the workforce and they are doing well at work setting. Apart from that they are giving their employees facilities of Convenience like personal car along with fuel provided by the company too, which is a big deal for motivating the employees.

Adequate financial resourcesThe owners of TSML are one of the richest persons of the Pakistan and they have more plant and investment in other industries like Sugar Mills, and Share Market. They have adequate financial resources to meet their requirements. Competitive advantageBecause it is an old sugar originating from 1980’s and it has still kept its position in the sugar market on all competitors nationwide, which is its competitive advantage. Own Power Generation PlantThey have own power generation plant and TSML is the pioneer in the private organization who start the power generation.

Weaknesses: High cost of productionThe production cost is high because of un-proper utilization of resources. Centralized decision The decisions are made by the upper management which is weakness of the TSML because they have not any proper idea about the prevailing situation and their decision can be un-fruitful for the company. Less promotional activitiesThe advertising and promotional cost of the TSML is very low it can take advantage for more turn outs. Opportunity: Organization can expand Product LinesCurrently the TSML is not dealing in knitwear they can expand their product line by producing knitwear. They have plants and the extra cost for the production will be low for TSML. They also have better market repute. Organization can reduce the cost by proper utilization of resourcesIf the cost of different matters which are not been utilized properly, is controlled by the TSML management they can produce more at less costs. It has to develop a further systematic process for controlling and managing resources. Organization can hire more well-educated and experienced personThey can take advantages by hiring more skilled people and they should hire young, fresh and energetic staff for their betterment. Because being human, you always have the room for betterment in any aspect. Threats: Buyer needs demands changes Because of the research & development the design and the product of TSML is just satisfactory as compared to competitors in the global environment and they are not fulfilling the demand of customers. Political instabilityPolitical instability effects the TSML because of the quota system, Government can restrict the Company to export. Changed of government policiesGovernment policies are changing day by day so it is always a threat for not only TSML but for any company to survive in such a environment. Globally Economic instabilityBecause of the economic instability the TSML and the “Dumping system” which is rising on daily basis in the world can create many problems for the company and any uncertainty in the world like 9/11 may also affect its overall exports.

Financial Statement Analysis of Organization

Tandlianwala sugar mill L.td(Unit Kanjwani)Income statement

For the year ended Sep,30……..

Description2012 2011 2010

(Rupees) (Rupees) (Rupees)

Sales – net 3,411,565,014 1,759,464,907 10,169,643,067

Cost of Sales (3,297,723,232) (6,321,536,026) (8,198,139,512)

Gross Profit 113,841,782 1,437,928,881 1,971,503,548

Administrative expenses (132,750,067) (230,802,608) (217,941,368)

Distribution expenses (68,724,823) (101,795,692) (49,087,460)

Other operating expenses - (14,782,628)(42,948,004)

Other income 8,985,603 6,415,460 12,966,457

Profit from operations 78,647,505 1,096,963,593 1,074,493,180

Finance cost 228,858,942 (579,568,423) (495,006,341)

Profit&Loss before taxation (307,506,447) 517,395,170 579,486,839

Taxation (34,115,650) (22,839,391) (249,966,073)

Profit&Loss after taxation (341,622,097) 494,555,779 329,520,766

Profit &Loss per share 2.904.20 2.80

Tandlianwala Sugar mills L.td (unit Kanjwani) Balance SheetFor the year ended Sep, 30……….LIABILITIES 2012 2011 2010

SHARE CAPITAL AND RESERVES

(Rupees) (Rupees) (Rupees)

Authorized Capital

35,000,000 (2003: 25,000,000) Ordinary shares of Rs. 10/- each

250,000,000 250,000,000 250,000,000

Issued, Subscribed and Paid-Up Capital

31, 680,611 (:2010-11. 24, 931, 620) Ordinary shares of Rs.10/- each

fully paid in cash

316,806,110 249,316,200 249,316,200

Reserves

195,924,370 87,833,960 64,769,085

512,730,480 337,150,160 314,085,285

NON CURRENT LIABILITIES

Loans from Directors – Unsecured

157,385,117 - -

Long term loans – Secured 119,947,682 172,260,716

217,687,106

Liabilities against assets subject to finance lease

21,312,243 - -

Road cess payable

- - -

Other long term liabilities

1,979,967 150,306,451 156,817,139

Deferred liability – Gratuity

14,583,670 10,252,724 9,153,753

412,948,103 160,559,175 165,970,892

CURRENT LIABILITIES

Current maturity of long term

Liabilities

63,652,804 103,762,750 59,249,073

Short term borrowings – secured

401,798,075 0 50,000,000

Creditors, accrued and other liabilities

135,717,625 95,341,580 130,905,297

Provision for taxation

5,277,193 5,605,016 5,499,228

606,445,697 204,709,346 245,653,598

Contingencies and Commitments

- - -

1,532,124,280 822,366,363 897,970,491

As at 30 September 2012

2012 2011 2010

ASSETS

(Rupees)

FIXED ASSETS

Property, plant and equipment

677,528,472 701,780,814 736,729,740

Capital work in progress 106,514,257

- -

784,042,729

701780814 736,729,740

LONG TERM ADVANCES – UNSECURED

97,008,369

LONG TERM DEPOSITS 5,759,175 - -

CURRENT ASSETS

Trade debtors - considered good

5,694,000 0 2,418,360

Stores and spares 68,945,553

46,966,518 44,906,112

Stock in trade 302,147,129

501,427 39.155,187

Advances, deposits, prepayments

160,258,350 68,772,933 38,596,711

other receivables

Cash and bank balances 108,268,975 43,44,771 36,164,381

645,314,007 120,585,649 161240751

1,532,124,280 822,366,363 897,970,491

Ratio analysis

Ratio analysis is a shortcut method of expressing relationships among various items on the financial statements. However, ratios are not substitutes for looking deeper into the financial position of company. In the analysis of Tandlianwala sugar Mills L.td (Unit Kanjwani) we found the following ratios:· Net profit ratio· Current ratio· Earnings per share Ratio· Loan on assets ratio· Account receivable turnover ratio· Return on equity capital· Operating ratio· Operating profit ratio· Total assets turnover ratio· Debt ratio· Debt on asset ratio· Operating expenses ratio· Return on total assets

1. Profitability ratio:Net profit ratio Net profit after tax / Net sales x 100Description 2012 2011 2010

Net profit& Loss after tax 341,622,097 494,555,779 329,520,766

Net sales 3,411,565,014 1,759,464,907 10,169,643,067

Net profit ratio 10.01% 28.10% 3.24%

ExplanationIn 2010 profit observed is 3.24%. In 2011 profit decreasing trend is observed and the profit goes down to 28.10%. In 2012 increasing trend is observed and the Loss rose to 10.01%.

2. Liquidity ratio:

Current Ratio: Current Assets / Current Liabilities.Description 2012 2011 2010

Current Assets 1,299,627,994 120,585,649 161,240,751

Current Liabilities 606,445,697 204,709,346 245,653,598

Current ratio 2.14 0.59 0.66

ExplanationCurrent ratio show the size of the current assets as compare to current liabilities. It measures the ability of the company to pay the short term financial obligation of the company. I t is best if it is 1.5:1. It means it the assets are 1.5 as compare to liabilitiesIn 2010 current ratio is 0.66 which less 1. This is very good relationship between the assets and liabilities. It should be 1.5:1 minimum. In 2011 current ratio is 0.59 which is less than one. This is an alarming situation for the company because it can increasing. In 2012 decreasing trend is observed and the current ratio decrease to 2, 14. It also the more alarming situation for the company because it could be decrease continuously.

3.Earnings per share Ratio:

Total current Assets / No of equity sharesDescription 2012 2011 2010

Total current Assets 1,299,627,994 120,585,649 161,240,751

No of equity shares 250,000,000 250,000,000 250,000,000

Earnings per share 5.20 0.48 0.64

Explanation.In 2010, 0.64 rupees is earned by one share. The company remains in profit if one share is purchased for one rupee. In 2011 slight decreasing trend is observed once share can earn 0.48 rupees. In 2012 decreasing trend is observed and one share can earn 5.20 rupees.

5.Account receivable turnover ratio Operating cost/ operating revenue x 1oo

Description 2012 2011 2010

Total sales 3,411,565,014 1,759,464,907 10,169,643,067

Account reciveable turnover 609,077 594,396 449,220

Account reciveable turnover 30.41 24.77 24.37

ExplanationA/R turnover means how many times our account receivables are converted into cash in one year.In 2010 24.37 times our accounts receivables are converted into cash. In 2011 increasing trend sis observed due to the increase in accounts receivables 24.77 times our accounts receivables are converted in cash. In 2012 slight increasing trend is observed 30.41 times our accounts receivables are converted into cash.6.Return on equity capital Ratio

Net profit after tax / equity capital x 100


Net profit after tax 341,622,097 494,555,779 329,520,766

Equity capital 512,730,480 337,150,160 314,085,285

Return on equity capital 66.62% 146.68% 104.91%

ExplanationIn2010 return on equity capital ratio is 104.91% in 2011increasing trend observed and the ratio rose up to 146.68% But in 2012 decreasing tren is observed and ratio falls to 66.62%.

7. Operating ratioOperating costs / operating revenue x 100


Operating costs 201,474,890 332,598,300 267,028,828

Operating revenue 307,506,447 517,395,170 579,486,839

Operating ratio 65.51% 64.28% 46.08%

Explanation

Operating ratio is the determination between the operating expense and operating income of the year.In 2010 Operating ratio observed is 65.51%. In 2011 profit increasing trend is observed and the Operating ratio rose up to 64.28%. In 2012 Operating ratio decreasing trend is observed and the Operating ratio rose up on 65.51%.

8. Operating profit ratio

Operating profit / Net sale x 100


Operating profit 307,506,447 517,395,170 579,486,839

Net sales 3,411,565,014 1,759,464,907 10,169,643,067

Operating profit ratio 9.01% 29.40% 5.69%

Explanation

Operating profit ratio is that ratio in which we find the total operating profit of the following years In 2010 Operating profit ratio observed is 5.69%. In 2011 profit decreasing trend is observed and the Operating profit ratio rose to 29.40%. In 2012 alarming stage for the company that the Operating profit decreasing and the ratio observed 9.01%.

9. Activity ratio

Sales / total assets


Net sales 3,411,565,014 1,769,464,907 10,169,643,067

Total assets 1,532,124,280 822,366,363 897,970,491

Total assets turnover 2.22% 2.15% 11.32%

Explanation

Activity ratio includes the total assets turnover ratio. In this ratio we find the turnover of total assets for the number of the years. In 2010 the assets turnover ratio is 11.32%. in 2011 decreasing trend observed and the ratio rose up to 2.l5% in 2012 it also the in creasing trend and ratio more rose up to 2.22%.

10.Debt equity ratio

Long term liabilities /Total assets x100


Long term liabilities 63,652,804 103,762,750 59,249,073

Total assets 1,532,124,280 822,366,363 897,970,491

Debt ratio 4.15% 12.61% 6.59%

Explanation

Debt ratio also called the debt equity ratio in this ratio we calculate the percentage changes of total assets and long term liabilities

In 2010 the debt ratio is 6.59%. In 2011 increasing trend observed and the ratio goes up to 12.61% in 2012 it also the decreasing trend and ratio more goes down to 4.15%.

11.Desbt to assets ratio

Total liabilities / total assets x 100


Total liabilities 1,019,393,800 365,268,521 411,624,490

Total assets 1,532,124,280 822,366,363 897,970,491

Debt to assets ratio 66.53% 44.41% 45.83%

Explanation

Debt to asset ratio also called the debt asset ratio in this ratio we calculate the percentage changes of total assets and total liabilities of the following years.

In 2010 the debt to asset ratio is 45.83%. In 2011 decreasing trend observed and the ratio goes down to 44.41% in 2012 increasing trend observed and ratio rose up to 66.53%.

12. Operating expenses ratio

Operating expenses / Net sale x 100


Operating expenses 201,474,890 347,380,928 309,976,832

Net sales 3,411,565,014 1,759,464,907 10,169,643,067

Operating expenses ratio 5.90% 19.74% 3.04%

Explanation

Operating expense ratio is that ratio in which we find the total operating expenses of the following number of years In 2010 Operating profit ratio observed is 3.04%. In 2011 profit increasing trend is observed and the Operating expense ratio rose up to 19.74%. In 2012 the Operating expense ratio decreasing and the ratio observed is 5.90%.

13.Return on total assets

Net profit after tax / Total assets x100


Net profit after tax 341,622,097 494,555,779 329,520,766

Total assets 1,532,124,280 822,366,363 897,970,491

Operating ratio 22.29% 60.13% %36.69

Explanation

Return on total asset means that we find the relation of net profit and total assets of the years.

In 2010 the return on asset ratio is 36.69%. In 2011 increasing trend observed and the ratio rose up to the 60.13% in 2012 decreasing trend observed and ratio goes down to 22.29%.

Horizontal Analysis:

Formula. Individual year/Base year x 100

Horizontal analysis of the profit and loss Account:


Sales 33.54% 17.30% 100%

cost of sales 402.25% 77.10% 100%

gross profit 5.77% 72.93% 100%

Distribution cost 140.00% 207.37% 100%

administrative expenses 60.91% 105.90% 100%

other operating expenses 0% 34.41% 100%

other operating income 69.29% 49.47% 100%

profit from operations 7.31% 102.09% 100%

finance cost 46.23% 117.08% 100%

Profit&Loss before taxation 53.6% 89.28% 100%

provision for taxation 103.67% 9.13% 100%

Profit&loss after taxation 103.67% 150.08% 100%

HORIZANTAL ANALYSIS:

BALANCE SHEET:

ASSETS 2012 2011 2010

Non Current Assets

Property plant &equipment

Long term advances

Long term security deposits

91.96%

-

-

95.25%

-

-

100%

-

-

Total 91.96% 95.25% 100%

Currents Assets

Store spare parts and loose tool

Stock in trade

Trade debts

Advance,deposit,prepayment

Cash & bank balance

153.53%

771.66%

235.44%

415.21%

178.43%

104.58%

1.28%

-

178.18%

12.01%

100%

100%

100%

100%

100%

Total 170.62% 91.58% 100

LIABLITIES:

Non Current Liabilities:

Long term Loans

Liabilities against assets

Deferred liability

126.37%

-

159.31%

69.63%

-

112%

100%

-

100%

Total 248.80% 96.73% 100%

Current Liabilities:

Current maturity of long term

Short term borrowings

Creditor


107.43%

80.35%

103.67%

95.96%

175.12%

-

72.83%

101.92%

100%

100%

100%

100%

Total 246.87% 83.33% 100%

Equity& share capital

Issued, subscribed &paid up share

Reserves

127.07%

223.06%

100%

135.61%

100%

100%

Total equity 163.24% 107.34% 100%

Total liabilities+ Equity & share capital

170.62% 91.58% 100

VERTICAL ANALYSIS: Formula =Individual Item/ base x 100

For the year ended June 30,

Profit & Loss Account:


Sale 100% 100% 100%

Cost of sale 96.67% 18.27% 80.61%

Gross profit 3.33% 81.73% 19.39%

Distribution cost 2.01% 5.79% 0.50%

Administrative cost 3.89% 13.1% 2.14%

Other operating Expense - 8.40% 0.42%

Other operating Income 0.26% 0.36% 0.13%

Profit from operation 2.30% 62.34% 10.56%

Finance cost 6.70% 32.94% 4.86%

Profit &Loss Before Taxation 9.01% 29.40% 5.69%

Provision for taxation 0.1% 0.98% 0.90%

Profit&Losss after Taxation 10% 28.10% 3.24%

BALANCE SHEET:

As at June 30:

ASSETS 2012

Rupees in thousands

2011

Rupees in

thousands

2010

Rupees in thousands

Non Current Assets

Property plant &equipment

Capital worsk in Process

Long term advances

Long term security deposits

44.22%

6.95%

6.33%

0.37%

85.33%

-

-

-

82.04%

-

-

-

Total 57.88% 85.33% 82.04%

Current Assets

Store spare parts and loose tool

Stock in trade

Trade debts

Advance deposit

Cash & bank balance

4.49%

19.72%

0.37%

10.45%

7.06%

5.71%

0.06%

0%

8.36%

0.52%

5%

43.61%

0.26%

4.29%

4.02%

Total 42.12% 14.67% 17.96%

Total Assets 100% 100% 100%

LIABLITIES:

NON CURRENT LIABLITIES:

Long term loans

Liabilities against assets

Loans from directors

Long term liability

Deferred liability

14.20%

1.39%

10.27

0.12%

0.95%

14.58%

0%

0%

18.27%

1.24%

19.18%

0%

0%

17.46

1.02

Total 26.95% 34.10% 37.66%

CURRENT LIBILTY:

Current maturity

Short term borrowings

Creditor


4.15%

26.22%

8.85%

0.34%

12.61%

0%

11.59%

0.68%

6.59%

5.56%

14.57%

0.61%

Total 39.59% 24.89% 27.35%

Equity &share capital

Issued, subscribed &paid up share capital

Reserves

20.67%

12.78%

30.32%

10.68%

27.76%

7.21%

Total equity 33.46% 41% 34.97%

Total liabilities+ Equity & share capital 100% 100% 100%

Chapter 7

ConclusionØ There should be a safety department in the company to assure the safety of the workers. Balance should be at a distance of 5 kilo-meters from the cutters Ø There should be card system for every employee from helper to manager for punctuality.Ø Wages of workers should not be less than Rs7000 per month.Ø There should be family quarters for all married workers.Ø There should be a high school and a college as well for boys and girls in the factory area.Ø There should be transport facility for workers within the district. All the employees especially those associated with production should be encouraged, and should be involved in decision making and empowered to make innovative decisions. In this way employees can add to the organization, a lot. E.g. a new cost effective production technique can result in comparatively huge profits

Chapter 8　RECOMMENDATIONS　Tandlianwala Sugar Mills Limited:ØThe first and most recommendation is to exclude one man show most frequent in the companyØThere must be a right system for training of employees and supervisors.ØImportance should be given to employees’ to give up.ØDifferent training courses should be arranged for the up lifting and improving the quality of work for employees.ØThere is also a problem of work to fill with too much of something for the employees and it should be control rightly so that the employees are motivated. As I have seen employees working till 24 hours in 3 shifts.

ØEmployees should be paid extra for the work which they do after working hours

Documents

report sugar mill