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CHAPTER 1

OBJECTIVES

To study the systems, policies, practices and procedures followed by the organization.
To understand the functions performed by various departments
To study the roles and responsibilities of the managers.
To understand the decision making process
















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CHAPTER 2

2.1 INDUSTRY PROFILE
Sugar industry in India is well developed with a consumer base of more than
billions of people. It is also the second largest producer of sugar in the world.
There is around 45 millions of sugar cane growers in India and a larger portion of rural
human resource in the country largely rely upon this industry. Sugar industry is one of the
agricultural based industries. In India it is the second largest agricultural industry after.
Sugar is one of the oldest commodities in the world and traces its origin in 4
th
century AD
in India and china. In those days sugar was manufactured only from sugarcane. But both
countries lost their initiatives to the European, American and Oceanic countries, as the
eighteenth century witnessed the development of new technology to manufacture sugar
from sugar beet. However, India is presently a dominant player in the global sugar industry
along with the Brazil in terms of production. Given the growing sugar production and the
structural changes witnessed in Indian.
Sugar industry, India is all set continue its domination at the global level. Indian sugar
industry is highly fragmented with organized and unorganized players. The unorganized
players mainly produce Gur and Khandaro, the less refined forms of sugar. The
government had a controlling grip over the industry, which has slowly yet steadily given
way to liberalization.
The production sugarcane is cyclical in unit. Hence the sugar production is also
cyclical as it depends on the sugarcane production in the country. As the industry is
fragmented one, even leading players do not control more than 4 percent market in India.
However, the situation is changing and players off late are striving to increase their market
share either by acquiring smaller mills or by going for green field capacity additions.
Indian sugar industry can be broadly classified into to sub sectors, the organized sector
i.e. sugar factories and unorganized sector i.e. manufactures of traditional sweeteners like
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gut and khandsari. The latter is considering being rural industry and enjoys much greater
freedom than sugar mills.
The production of traditional sweeteners gur and khandsari is quite substantial.
Though the trends indicate a progressive shift from traditional sweeteners to white sugar
over the years, they still account for about 37% of total sweetener consumption in India.
Since the sugar industry n the country uses only sugarcane as an input, sugar
companies have been established in large cane growing states like Uttar Pradesh,
Maharashtra, Tamil Nadu, Karnataka, Punjab and Gujarat. Uttar Pradesh leads the tally by
contributing 24 % of the countrys total sugar production and Maharashtra stands next 20
% contribution.
The farmers co-operatives own and operate the largest chunk of the industrys total
capacity. They are concentrated primarily in Maharashtra and eastern Uttar Pradesh. The
largest number of sugar companies in the private sector is located on southern India, in the
states of Tamil Nadu, Andhra Pradesh and Karnataka.
Out of 453 sugar mills in the country, 252 are in the co-operative sector, 134 are in the
private sector and 67 are in the public sector. Besides 136 units in the private sector are in
various stages of implementation. A few such units are under implementation in the co-
operative sector as well. But no new units have been proposed in the public sector.








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2.2 COMPANY PROFILE
Sakthi Sugars Limited is one of the largest producers of white crystal sugars in the
country accounting to the capacity of 13,500 tons of cane crush per day. Sakthi Groups is a
leading industrial conglomerate in South India. Motivated by a keen desire to
diversification in new areas of business, the Sakthi Group born and grew as a power full
entity, expanding its interest into various spheres of industry.
Sakthi Sugars Limited is committed to conduct its accordance with the applicable
laws, rules and regulations and with highest standards of business ethics.
P.Nachimuthu Gounder, farmer with a difference owned a few bullock carts the hired
out. He could feel the impulse of the people and made revolutionary changes. He created
history in 1921 by introducing the first taxi service in Pollachi. In1927, he started the first
bus service called Annamallais Bus Transport Company. This company is the parent of
Sakthi group. Sakthi sugars limited were formed in 1961 with commercial production of
sugar commencing in the year 1964 at its Sakthinagar sugar plant.
Today it has four sugar plants with three of them in Tamilnadu located at Sakthi
Nagar, Sivagangai and Modakurichi and one plant in Orissa at Dhenkanal, Orissa in the
year 1996. These two distillery plants, undisputedly the largest in their respective states,
have aggregate capacity of 46 KLPD industry alcohols.
Soya product is another range of products manufactured by Sakthi sugars limited. It
has an advanced soya processing unit with refinery complex near Pollachi, Tamilnadu. It
handles a capacity of 90,000 metric tons (MT) of soya beans per annum.
The company has also installed three co-generation power plants at its sugar factories
in Tamilnadu. The combined capacity of power production of these plants is 92 Mega
Watt. After meeting power requirements of the sugar plants the excess power generated is
exported to power grid.
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As a dutiful corporate, Sakthi Group has set up many educational and charitable
institutions, hospitals and religious centers. It also made significant contribution to rural
developments through number of social welfare activities and initiatives; it has created
ample employment opportunities for rural youth through its multi-fold agro-based
institutions and other industries.
The various areas in which the group acts are
Sugar
Automobile parts
Bus transport
Education and IT
Foundry
Fruit beverage
Finance
Industrial alcohol
Parcel service
Sales and Services of Automobiles
Soft drinks
Soya products
Social services
Textiles
Sakthi Sugars Limited is the flagship company of the Sakthi Group and is one of the
largest producers of sugar in the country accounting for a capacity of 12,750 tons of cane
crush per day in four sugar units. The four units include three in Tamil Nadu and one in
Orissa.




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2.3 UNITS:
Sugar
1. Tamil Nadu
Sakthi Nagar, Erode District-established in 1964.
Padmathur village, Sivagangai District-established in 1989.
Ponduraisemur village, Modakurichi Taluk, Erode District-established in 2007.
2. Orissa
Haripur village, Dhenkanal-established in 1994.
Distilleries
Sakthi Nagar, Erode District-established in 1972.
Haripur, Dhenkanal (Industrial Alcohol) established in 1996.
3. Soya
Marichinaiken Palayam, Pollachi established in 1990.
4. Co generation Plant
SakthiNagar established in 2003
Modakurichi established in 2007
Sivaganga established in 2008
5. Ethanol Plant has been established in Sakthi Nagar.








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2.4 ORGANISATION PROFILE:
Year of incorporation: 1961
Registered office: Sakthi Nagar -638315
Bhavani talk, Erode district,
Tamilnadu.
Corporate office: 180, Race Course Road,
Coimbatore- 641018.
Tamilnadu.
2.5 COMPETITORS OF COMPANY
EID Parry (India) Limited
Dharani Sugars and Chemicals Limited
Bannari Amman Sugars Limited
Kothari Sugars and Chemicals Limited
Ponni Sugars
Thiru Arooran Sugars Limited










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2.6 MANAGEMENT TEAM:

Name Title
Dr. N.Mahalingam
(promoter)
Chairman
Dr.M. Manickam Vice chairman & managing director
Sri.M.Balasubramaniam Joint managing director- finance
Sri. M. Srinivaasan Joint managing director- technical
Sri. V.K. Swaminathan Executive director
Sri. P.K. Chandran Director (independent)
Sri. G.G. Gurumurthy Director (independent)
Sri. S.S. Muthuvellapan Director (independent)
Sri. N.K. Vijayan Director (independent)
Sri. C. Rangamani Director (independent)
Sri. S.Doreswamy Director (independent)
Sri. B.Elangovan Director ( TIDCO nominee)



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2.7 Mission:
The mission mode project under sugar production technologies aims towards
sharper and focused technological up gradation in selected sugar factories to accomplish,
interlaid the cost effectiveness of sugar production through improvement in plant
efficiency, energy saving, etc. In addition to the above, the focus is also on improving the
capital output ratio through optimization and identification of user friendly technologies.

2.8 Vision:
To be one of the top five sugar producers in India.
To be one of the top auto component manufacturers in India.
To be leading producers of alcohol and allied energy producers.
To have the best possible alternative power producers in the country.
To maximize the trade in raw sugar so as to maximize the earning of the company.













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CHAPTER 3
VARIOUS FUNCTIONAL DEPARTMENTS

Production Department
Finance Department
Labor Office Department
Cane Department
Marketing Department
Accounts Department
Stores Department

3.1 PRODUCTION DEPARTMENT
Sakthi Sugars Limited is the company of the Sakthi Group and is one of the largest
producers of sugar in the country for a capacity of 12,750 tons of cane crush per day in
four sugar units.
Only sugar factory in India which could produce super fine grade of sugar corresponding
to international standard measures at grade 85 and below by International Commission for
Uniform Method of Sugar Analysis (ICUMSA).
Crushing in the unit is done more than 8 months every year. Optimal recovery of sugar
from sugarcane is more than 10%.
In production department following process takes place in stepwise manner.
Weigh Bridge:
The arrived cane is weighed in the cane weigh bridge.
Cane unloaded:
The weighed cane is taken out from the vehicles and fed to the cane carrier by the cane
unloaded equipment for crushing.
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Cane preparation:
The unloaded cane in the carrier is leveled by the cutting action of leveler and finally
divided into smaller pieces by the miner unit.
Mills:
The milling unit consists of 5 mills. The prepared cane juice is crushed in the mills
step by step with the addition of water to extract the maximum quantity of juice for
processing.
Boilers:
After extracting the juice the waste fibrous materials of the cane obtained is known as
bagasse. This is used as fuel in the boilers to produce steam This high pressure steam is
used for producing power.
Power house:
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The high pressure steam from the boiler is used to produce electric power through
turbo generator unit. The electric power generated is used to run the mills and other
equipments in the factory. The low pressure steam coming out of the turbine is used for
the process.
Clarification house:
The extracted juice from the mills having pH around 5.0 is weighed in juice weighing
scale. It is pumped through primary juice heaters and heated upto 65C. The heated juice is
treated with the lime to a pH of 9.0 and again with SO2 gas to 7.0 pH for the removal of
non-sugar material (purification).
This treated juice is further heated to 100C in the secondary juice heaters and sent to
clarifier in order to remove the formed non-sugar particles (mud) by setting action.
The settled mud liquid is filtered in the vacuum filter and is separated into filtered
juice and mud.
The obtained clear juice from the clarifier is sent to evaporators for concentration.
Evaporation:
The clear juice is concentrated by removal of water in the 5 stage evaporator. Low
pressure steam from the turbo generator is used as the fuel in the evaporator. The vapor
generated in different stages is used as fuel for various boiling. The hot condensate
produced in the evaporator is used for boiling water and other purposes.
The concentrated juice called syrup coming out of the evaporator is sent for further
clarification.
Syrup clarification and sulphitation:
The syrup is clarified with phosphoric acid and flocculants and the mud produced is
separated through filters. The clear syrup is again sulphited to pH of 5.0 with S02 gas and
taken to pan section for sugar crystallization.


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Crystallization at pan station:
Crystallization is done in 3 stages (A, B, C) in the pans.
A-Boiling is done with syrup and melt, B-Boiling with A-Molasses and C-Boiling with B-
Molasses. The molasses is sent as raw material for alcohol production in distillery.
Centrifugal:
The boiled massecuite(sugar crystal+ liquid) from the pan is stored in the crystallizers
and sent to centrifugal.
The sugar and molasses in the massecuite are separated by the centrifugal action in the
centrifugal machines. The separated A-sugar is dried/cooled and sent to sugar grader unit
for sieving into separate sizes and sent for bagging. B & C- sugar is again melted and
reprocessed in the A- Boiling.
Sugar bagging:
The sugar is graded as L-30, M-30 and S-30 as per the Indian Sugar Standards and
sent to sugar bins for storing and bagging. The sugar is weighed to 100kgs per bag and 50
kgs per bag in the automatic weighing machine, stitched and sent to go down.
Sugar godown:
The sugar bags are stored in the godown as stacks for marketing. 90% of the total
production is released as free sale and 10% of the total production as levy scale under
release order from the sugar directorate, Government of India
Disposal of the main & By-products:
The main product from the cane is white consumption sugar and by-products are
Bagasse powder, Filter cake and Molasses.
Sugar is sold to the buyers in the local market in our country and also exported to
foreign countries.
Bagasse is utilized as fuel in our boiler.
Excess power is produced and is also sold to Tamil Nadu Electricity Board.
Filter cake is supplied to cane growers.
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Molasses is stored and sent to distillery.
Production department consists of two sections namely
Manufacturing section
Engineering section.

3.1.1 ENGINEERING SECTION
This section consists of workshop. It maintains all the work connected with plant and
machinery.
Workshop:-
In this workshop machinery work is done. The spares and materials are fabricated
using the lather machines in the workshop, shaping like square cutting etc is also done in
the workshop.
3.1.2 MANUFACTURING SECTION
The manufacturing section again divided in to 3 sub sections.
Laboratory
Manufacturing process
Go down

LABORATORY:
The factory has a separate well equipped laboratory. The lab prepares hourly reports.
The main activity of the lab is
To check the content of sugar in the sugarcane and also fixing the correct shape and
size of sugar.
To determines the percentage of water content in the dilution of juice.
To determines as well as maintaining the temperature of boiling juice.
Choice of color and size of sugar.
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To manage time and quality.
To decided the percentage and contents and chemicals to be added during
production.
To finds the PH of water through universal indicator.

GODOWN:
The sugar bags are stored in the godown as stacks for marketing. 90% of the total
production is released as free sale and 10% of the total production as levy scale under
release order from the sugar directorate, Government of India.

3.2 LABOUR OFFICE DEPARTMENT
This department is concerned with the selection and placement.
Recruitment.
Development and training to workers
Development evaluation of workers
Wage and salary administration
Maintenance of statutory records.
Welfare measures for employee
Maintenance of personal records
Preparation of salary
Promotions, transfers.

3.2.1 ROLE OF LABOUR OFFICER IN SAKTHI SUGAR
In Sakthi sugars, the personal manager takes all the above responsibilities. Personal
manager controls the time office department, hostel maintenance, security and canteen.
The candidates are selected to particular job according to their qualification and
experiences. Training is given on the job only.
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Manager and supervisor are continuously inspecting every worker to access their
performance and they give better promotion for hard workers. Managers ensure
development of employees competency, motivation and effectiveness in systematic and
planned way.
Equal-Opportunities Employer
Sakthi Sugars Ltd is an equal opportunity employer. It treats its employees and all
qualified aspirants seeking employment with the company equally, regardless of their race
and birth. The employee policies and practices of the company, considers merit alone as
the only factor of discretion and ensures equal opportunity to those eligible.

Work / Life balance
The organization believes that employees must have a balanced professional and
personal life. While it respects personal space and time the organization also expects from
its employees a firm commitment to their roles and responsibilities within the organization.
Industrial Relations
Sakthi Sugars maintains cordial and friendly Industrial Relations with employees and
the Unions. The HR department of the company plays a vital role in crafting and
implementing people oriented industrial practices across the organization for establishing a
healthier value based relationship between employees and the organization.
Health, safety and Environment
Sakthi Sugars provides its employees clean, safe and healthy environment inside &
outside the operational areas of its businesses. To ensure this the company has delineated
strict norms on industrial safety. The operational space of our entire infrastructure have
been intuitively designed and maintained for smooth and safe conduct of business affairs.
The company is particular about the regulations concerning the preservation of
environment in the areas where it has constituted its production facilities. Sakthi Sugars
Limited is committed to prevent any excess or negligent use of natural resources. It also
strives to minimize hazardous secretions in production and disposal of waste/production
excesses that can harm the environment.
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Corporate Citizenship
The Sakthi Sugars Limited acts in compliance with all relevant laws and regulations of
the state. In addition to that it has pro actively assumed the role of a socially responsible
business by extending its assistance to people in its surrounding regions.
The social welfare and development initiatives of the company are aimed at supporting
those in dire need and in turn provide them the required assistance to enhance their quality
of life, both economically and socially. In the same way the company has been
contributing extensively in the fields of community health, family welfare, water
management, vocational training, education and literacy, development of rural roads and in
the application of modern scientific and managerial techniques for nurturing agriculture
and uplifting the farming community.

NUMBER OF WORKERS
Officers 24
Regular 172
Trainees 351
Daily wages with order 17
Total 564

SALARY:
Minimum salary is not less than Rs1950. The breakup of salary is under
Badly allowance 50
Cost of living allowance 18% of basic salary
House rent allowance 10% of basic salary
Utility allowance 10% of basic salary
Special allowance 300
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SHIFTS
There are 4 types of shifts as follows
Shift I 6.00 am to 2.00 pm
Shift II 2.00 pm to 10.00 pm
Shift III 10.00 pm to 6.00 am
Shift IV 8.30 am to 5.30 pm
General shift 8.00 am to 5.00 pm

Insurance
The company is paying Rs 300 for each employees working in the company for any
accidents met by the employees during working hours with medical leave.
Provident fund
The fund is credited by an amount detected from their monthly salary at a certain rate. The
company is contributing 12% of the employees wages as provident fund.
Pension
This amount is received by the employee on his retirement. Here 12% of his monthly
salary is given as pension monthly. Here in this 12% (8.33% given under family pension
fund and 3.673% given under employee pension scheme).
Bonus
As per the companys act 1956, 8.33% of bonus is compulsory for an employee. Here the
employees are given bonus at the time of Diwali. 20% is given as bonus.




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3.2.2 TIME OFFICE
Time office is one of the important sections of administration department. This
section maintains the attendance of workers. It also shows records of particular workers
about his working hours etc. It evaluates the workers punctuality, discipline and uniforms
and maintains documents and records for the future reference purpose.
FUNCTIONS
Showing the absenteeism report to HOD.
To receive the attendance cards from the workers.
Siren maintenance ( signal value )
Observation of employees
Maintaining Notice Board
In time office there are 4 types of leaves.
SICK LEAVE: Employees are eligible to take leave on the sickness. 8 days sick leave
shall be granted with full wages.
CASUAL LEAVE: 10 days casual leave shall be granted with full wages or pay including
DA to the every workman.
PRIVILEGED LEAVE: 15 Days privileged leave shall be granted with full wages or pay
including DA to the every workman for every completed year.

3.2.3 SECURITY OFFICE
Security office is also one of the important sections of the HR department. There are
totally 39 guards
DUTIES OF SECURITY OFFICER
Maintain the silencing in the factory area.
Time maintenance of workers.
Raw materials are checked according to the voucher.
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Incoming materials are checked, if they are right, they will records inward and seal
the bill and leave inside.
If outgoing material from the industry that person must and should have got pass
and it is entered in outwards.
If goods are returnable, it will be entered in return A/C book.
A/Cs are submitted to M.D. daily.

3.2.4 FACILITY TO WORKERS
Availability of rest house with TV facility.
Availability of quarters.
Providing 2 wheelers for employees who are visiting the field to supervise and
check the availability cane.
Executive levels are provided with 4 wheelers.
Weekly one holiday of any in a week
NATIONAL HOLIDAY
The industry gives the leave for the national holidays; fair days of national holidays
should be given to the employees, such as Independence day, Republic Day, and Gandhi
Jayanti etc.
3.3 MARKETING DEPARTMENT
This section will take care of all sale transactions like sale of sugar, molasses, Bagasse
and scrap material. The factory sells the sugar according to central government
notification. The central government sends the notice to the factory every month regarding
sale of sugar, without notice the sugar is not sold to anybody. The government is giving
permission for a particular period, particular for sale of sugar. The sugar is sold to the
buyer who quotes highest price. In this section, some records like sale of sugar register,
molasses register, Bagasse registers and scrap material registers are maintained.
The marketing activities include the following
Sourcing and supplying information
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Standardization and grading
Storage
Financing
Risk taking
Marketing manager is in charge of the marketing department. Advertisements are not
necessary in sugar industry because customer wont ask for Specific company branded
sugar.
FUNCTIONS
Marketing department has to keep in contact with dealers and agents
Getting order from parties
Arranging for delivery to parties
Maintaining records of sales
Sending reports to managing director
For every organization, marketing is an important factor to get succeed in the
field. This organization has an enhanced marketing value all over India. The products of
Sakthi sugar industry have its customer throughout India
Marketing is important in building relationship with customer also to create product
awareness. Without effective marketing strategy, the company will lose customer and also
loses the revenue.
3.3.1 PRODUCT OF SALE
The organization undertakes selling activities in two methods:-
FREE SALE: - free sale of sugar is being done to bulk purchases on the basis of tenders
called, collected, negotiated and sold.
LEVY SALE: - This is being sold to the government of Tamilnadu on levy basis. The
government then distributes the same to the public through public distribution outlets at
predetermined reasonable price.
The primary marketing activity is transport. The purpose of transport is to deliver the
product to the consumer in the quickest and safest way.
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EXPORTS:
Refined sugars and less than 45 CUMSA sugar are exported. Efforts are taken to increase
the exports in for coming years.
Foreign exchange used- 1769.48 lakhs
Foreign exchange earned- 10545.11 lakhs.

3.4 CANE DEPARTMENT
The function of cane department is to supply raw materials to the sugar factory. They
provide the agricultural faculties to the4 farmers they provide the guidance and helps the
farmers regarding farming or cultivation and provides loans, fertilizers and water facilities
and also provides the inter crop seeds for planting. Every village is engaged with the
particular cane office and that office provides those help as they require only sugarcane
There are 13 divisional office and 64 sections around sivagangai. In factory itself there are
two divisions one in mill north division and another in mill south division.

Other divisions are as follows:
1. Thirupuvanam
2. Puthuvayal
3. Paramakudi
4. Devakottai
5. Sivagangai
6. Mathakupatti
7. kamuthi
8. V.Pudur.
Each division office has one officer, one clerk and 6-7 cane assistants. The duty of Cane
assistants to visit the farmers in their nearby villages and make a contract with them after
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that the assistants measures the acres owned by the farmers and provide the canes seeds to
them based in the acre level they provide 4-4.5 tons of cane seeds per acre they guide the
farmers and offer the time period up to 12 months at the end of 12
th
month cane department
allot workers to harvest and transported to the factory.

3.4.1 SUGAR SEASON
One sugar is 12 months from October to September. The actual crushing will depend
upon the availability of sugar cane. This will normally be about 6 months in a year.

3.4.2 CANE PRICE:
Statutory Minimum price:
The government of India fixes the statutory minimum cane price the sugar cane
control order, 1966. This price as to be paid by the sugar mill within 14 days from the date
of supply of cane failing which interest at the rate of 15% will have to be paid to the cane
growers till the date of payment. The statutory minimum cane price is fixed by the
government of India for the recovery of 9.50%.
The cane price is fixed for a sugar mills based on the peak period recovery of the mill. The
peak period recovery refers to the average recovery obtained from 1
st
December to 31
st

March of the proceeding season.

State advised price:
The state government announce cane price every over and above the statutory
minimum price fixed by the government of the India and this price is the known as state
advised price. The cane price is fixed by the government and paid by the mills are
furnished in Annexure-II in balance sheet book.


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The cane department is divided into three departments
Yard department:
Main work here is weighing the loads of sugar from different villages and sent for
processing.
Division department:
It gives all facilities and guidance to the farmers.
Research and development
It researches about the land and take the required measures and maintenance for the
development.






CANE DEPARTMENT
YARD
DEPARTMENT
DIVISION
DEPARTMENT
RESEARCH AND
DEVELOPMENT
Page 25 of 32

3.5 STORE DEPARTMENT

It is the department which stores the industrial material and maintains it. Purchase
department receives the purchase order from the user department or from the stores
department. Then purchase department enquires the party and purchase from the regular
party or some other party and packs the material and sends to the purchase department and
they send to the storage. If there is any damage then they will return to them within a
week.
This department has technical persons to test the purchased material. It could be done by
both manual and with the help of testing told. Store department has the storing capacity of
3000 materials. This department issues 50-60 materials per day to other department such as
processing and engineering etc. The materials stored in this department are
Chemicals
Spares
Coal
Bolt-nuts
Bearings
V-belts
Electrical parts
Steam joints
Lubricants
Liquid oxygen
Caustic soda
Gunny
When departments require any material, this department sends materials to that particular
department. Each item has a unique item code which is arranged in the racks, wooden
cupboard, shelves etc. They also store the scrap/old material and sell them to different
required parties. They import the hardware spares from brazil and Australia. Repairing is
first done in Bangalore; if its not repaired then machines are sent to china.
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3.6 FINANCE DEPARTMENT

Finance is the lifeblood of any business. It is concerned with the activated of funds
and wide application on the funds. The success of a business lies with the effective
management of finance in the company. Finance management is that managerial activity
which is consumed with the planning and controlling of the firms financial resources.
Finance helps in the smooth running of an organization for example a business needs
Finance to commerce operation. One of the major roles of the finance department is to
identify appropriate financial information prior to communicating this information to
managers and decision-makers. Finance is a term used for money. In business it is used.
Planning and organizing and controlling of finance in a business are a primary activity. We
can say that finance is a basic needed thing to start a business.
It is the most important department in which most of the function is carried out such as
accounting.
Planning, mobilization and effective utilization of funds.
Functions:
Dealing with banks and finance institutions.
To monitor the budget and budgetary control.
Monitoring the funds collection and payments.
Finance planning and mobilization of cash.
Controlling inflow and outflow of cash.
To exercise and cost control and cost reduction technique s
To see that financial interest of the company.
To protest the financial interest of the company.
It helps in achieving the business results profitably.
Waste management.

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3.7 ACCOUNTS DEPARTMENT

Sakthi sugar is an industrial organization, manufacturing sugar, power and ethanol.
Needs for Accounting systems:
a. To ascertain the profit and loss of the business.
b. To ascertain the financial position of the business.
c. To provide control over assets and properties of the company.
d. To provide information to tax authorities like sales tax, income tax, control,
exercise, etc.
e. Assistance to management on
a. Decision Making.
b. Forward planning and Budgeting
c. Controlling various management functions
f. To provide information to Government central, state and various local bodies
The main work of this department is record the financial transactions and to receive
money and payment and is also responsible for the bank transactions. The accounts
statement such as profit and loss accounts, balance sheet general ledger, and all other
ledger are helpful to the various departments is administered by the accountant and an
accountant.
Accounts manager makes the important financial decisions with consultation of
Director and Chief executive of company.
The accounts department is responsible for the entire accounting process of the
organization regarding the recording of transactions, designing the accounting policies and
accounting system, preparing financial statements and computer application. If we consider
a company a cell then we can say the accounts department has role of nucleus.
3.7.1 Accounting system:
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Accounting system at here is centralized and on accrual basis. all accounts are
maintained in Coimbatore head office. The process of accounting system starts from the
preparation of voucher. The following are different types of vouchers prepared at Sakthi
sugars PVT ltd.
3.7.2 Journal Voucher:
As accounting system is an accrual basis, so according entries are passed on journal
voucher at first step. This is also known adjustment voucher. This is prepared for adjusting
entry. Vouchers are after every transaction. Accounts Manager and Director verify the
voucher respectively. If they have any question they can ask relevant person if they are no
enquiry then they will put their signatures on voucher. Now it is time to record these
vouchers in books of accounts.
3.7.3 Payment voucher:
This voucher is prepared at this time of making payments to any party. Party name is
debited with the amount has been made. Payment vouchers are used for the payment up to
Rs.6000.Payments more than this are made through bank.

3.7.4 Credit voucher:
As name of voucher represents, this voucher is prepared when some amount is
received from any party. In this case party name is credited by the amount that has been
received. The accounting is mainly divided in two following three sections.
Stores section
Salaries and wages section
General accounts section
3.7.5 Attendance Allowance:
Leave encashment is given to those employees who save their holidays and dont
avail them. This is given to their per day salary multiply with number of days of holidays
not availed.
3.7.6 Books of Accounts Department:
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Cash book
Bank book
Stores purchase journal
Raw material purchase journal
Sales journal
General journal
Balance sheet ledger
Profit and loss account
Purchase return book
Sales return book
Bills payable book














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CHAPTER-4
LEARNINGS FROM SAKTHI SUGARS LIMITED

4.1 LEARNING
Through my summer internship project I understood:
Step wise process taking place in production department
Efficiency of personal manager in administering labor problems, welfare and
attendance records
The marketing strategy followed in the company
Role of accounts department in managing records of all bills payable and receivable,
balance sheet, annual report and in auditing.

4.2 ISSUES IDENTIFIED
So far now , recent hiring have been not done to post of vacancy
Less value in the share market
Exports are comparatively less though they have wide scope
Ethanol production can be increased
Retail marketing can be done like parry sugar
Financial loss is more compared to previous year






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CHAPTER-5

CONCLUSION:

The summer internship project at SAKTHI SUGARS PRIVATE LTD
helped me the various processes that took place within every department and
about how the departments are integrated to achieve the organizational goal as
a whole. It was beneficial as there was an opportunity to practically learn
some of the concepts that I had been studying theoretically. This internship
helped me a lot in terms of industrial exposure and gaining knowledge about
actual management practices of the corporate.

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REFERENCE:

www.sakthisugars.com/ accessed on 3
th
May 2014
http://economictimes.indiatimes.com/sakthi-sugars-ltd/stocks/companyid-13135.cms accessed
on 8th May 2014
http://www.moneycontrol.com/india/stockpricequote/sugar/sakthisugars/SS accessed on 13th
May 2014
http://en.wikipedia.org/wiki/Sakthi_Sugars accessed on 25th May 2014
http://www.sakthigroup.com/home.html accessed on 1st June 2014
http://www.sakthisugars.com/profile.pdf / accessed on 15
th
June 2014
http://en.wikipedia.org/wiki/N._Mahalingam / accessed on 23
rd
July 2014