UNIVERSITY OF MYSORE

INTERNSHIP PROJECT REPORT

“Organizational study of AFRISIAN GINNING LIMITED”

SUBMITTED BY:

MARIAM ALLY HUSSEIN

Reg, no: 17MB0346

UNDER THE GUIDANCE OF:

Mrs. S P Rajeswari

Asst. Prof., DOS in Business Administration,

Pooja Bhagavat Memorial Mahajana Education Centre
Mysore – 570016

Project Report submitted to the University of Mysore in partial

Fulfillment of the requirements of III Semester MBA Degree
2017-2019
 CERTIFICATE

DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION

2017- 2019

This is to certify that Ms. Mariam Ally Hussein., Reg. No. 17MB0346, our student of 3rd
semester MBA has carried out the internship project at “AFRISIAN GINNING LIMITED
COMPANY” as part of his curriculum activity as per the norms for obtaining a Post-Graduation
degree in Master of Business Administration from UNIVERSITY OF MYSORE during the
year 2017- 2018

Mrs. S P Rajeswari
Asst. Prof., DOS in Business Administration
Pooja Bhagavat Memorial Mahajana Education Centre
Mysore.
 CERTIFICATE

POOJA BHAGAVAT MEMORIAL MAHAJANA EDUCATION CENTRE

K R S ROAD, METAGALLI, MYSORE.

DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION

2017- 2018

This is to certify that Ms. MARIAM ALLY HUSSEIN. student of III semester MBA, bearing
the register number 17MB0346 has successfully completed the internship project work titled
“Organization study of AFRISIAN GINNING LIMITED COMPANY” in partial
fulfillment of the requirements for the award of post-graduation degree in Master of Business
Administration of the University of Mysore, during the academic year 2017- 2018

Dr. Nagalingappa
Chairman and HOD
Dept. of Studies in Business Administration
PBMMPGC, Mysore
 DECLARATION

I do here by declare that the internship report undergone on the topic “INTERNSHIP AT
AFRISIAN GINNING LIMITED COMPANY, DAR-ES-SALAAM TANZANIA” has been
prepared under the guidance of MRS. S.P. RAJESWARI, Assistant professor, Department of
MBA, POOJA BHAGVAT MEMORIAL MAHAJANAS PG CENTER, Mysuru. This report
has been submitted in partial fulfillment of the requirement for the award of degree in
MASTERS IN BUSINESS ADMINISTRATION to the BHAGVAT MEMORIAL
MAHAJANA’ SEDUCATIONCENTER,Mysuru.
 ACKNOWLEDGEMENTS

The completion of this report drags some of the names as imperative names to be
remembered at the final moment of submission without whose assistance and Motivation, this
would not have been a success.

First and foremost, we express our sincere thanks to our internal guide, Mrs.S.P
RAJESHWARI , CHAIRMAN AND HOD DR.NAGALINGAPPA Pooja Bhagvat memorial
Mahajanas Education Center , Mysore for her valuable guidance and support in carrying out
this report.

I also pay my gratitude to the almighty for enabling me to complete this internship report within
due course of time.

Words are very few to express enormous humble obligation to my affectionate Parents
for their prayers and their strong determination to enabling me to achieve this job.

I take this opportunity to record my deep sense of gratitude and appreciation to my

supervisor Mr. Mubin Ebrahim......Accounts Officer Afrisian Ginning Ltd for his constant
encouragement and inspiring guidance with his wisdom.

I also appreciate the cordial co-operation from all my concern Managers in the different
departments of Afrisian Ginning ltd Mr Sanjay, Mr. Ebrahim, Miss. Jyoti and Mr. Shetty... and
Logistic department for providing me requisite information and knowledge for compilation of
my complete internship.

Our sincere thanks to all the workers of Afrisian ginning Ltd, Dar-es-salaam Tanzania, who
enabled us to take up this study in their esteemed organization and provided us with all the
required information.

Place: Mysuru

Date: 19/08/2018

6
 PREFACE

The “ ORGANIZATIONAL STUDY ” which is a learning experience to me

carried out for the period of 30 days in “AFRISIAN GINNING LIMITED
COMPANY, Dar-Es-Salaam Tanzania” which includes introduction of the
company and its various departments which is collected through this
Organizational Study . In this organizational study I visited various departments
like Production , Finance , Marketing, Human resource and Logistic department
with which I got to know the Hierarchical structure of the organization and how
the organization works.

This Organizational study helped me to get the Corporate

Environment before entering the corporate world which will be helpful for my
future for knowing the organizational cultures and how it works .

THANK YOU

7
EXECUTIVE SUMMARY

Afrisian Ginning Ltd (AGL), is a private company facilitating and creating the
development of value-added agricultural business in Africa. It provide farmers with a guaranteed
and fair marketing place for their products, Practice high ethical business standards, Respect and
protect the environment, Adapt and change to meet the needs and desires of consumer, Produce
high quality products that are safe for consumers.

I have my internship in AGL, in which I got training from its finance department. The
internship basically revolved around the product knowledge training. The system, the style of
working and the employees in AGL is really exemplary.

The difference between failure and success is doing things right and doing things nearly
right and AGL has always tried for success and that is why it is known to be one of the reputed
organization in Tanzania and in the world as well.

In this report I have given a brief review of what I have seen during my internship. I have
mentioned all these as I have made an internship as according to the schedule. I also mentioned
about the AGL and vision/mission of the organization.

Then I have discussed about my learning in the whole internship that is all about the
terminologies. I have made it possible to write each and every thing learnt there. I have all my
practical efforts in the form of this manuscript that is the asset of my future career.

8
TABLE OF CONTENTS

CHAPTER 1...............................................................................10

Introduction

CHAPTER 2...............................................................................11-13

Organizational structure

CHAPTER 3...............................................................................14-26

Functions of organization and department studied

CHAPTER 4..............................................................................27-35

Products profile

CHAPTER 5..............................................................................36-49

My learning as internee

CHAPTER 6..............................................................................50-51

SWOT analysis

CHAPTER 7...............................................................................52

Conclusion and recommendation

Bibliography...............................................................................53

Annexure.....................................................................................54-60

9
 CHAPTER 1

INTRODUCTION

ABOUT ORGANIZATION
Afrisian Ginning Ltd (AGL) started business as a cotton ginner in 1997. Since its start
AGL has seeked at opportunities to increase its trading activities, both within the cotton sector
and beyond. Today AGL has expanded its operations and product range to include oil seed
crushing, rice milling, cleaning and export of peanuts, sesame seeds, maize and pulses such as
green mung, yellow gram and pigeon peas.

AGL’s HQ are located in the port city of Dar es salaam, the commercial capital of
Tanzania. With an extensive purchase network, dedicated staff, infrastructure, experience and
understanding of products; AGL is able to provide a reliable market for the Tanzanian farmer.
Enhanced by the support of reliable service providers and in-house logistics capacity, AGL can
accommodate customer needs throughout the world.

10
 CHAPTER 2

ORGANIZATIONAL STRUCTURE

Managing Director
Samir Esmail

General Manager
K.M.Shetty

Financial General
Logistic Manager Marketing and Controller Manager(Branch)
Arun Bej Sales Manager
Sanjay Kaushik K.Raja
Esmail Abdulwahid

Procurement Administration
Accountants Production Weight bridge
Logistic officers Officer/sales Branch Accountant Branch Accountant and Human
Manager Manager operator
Zoheb/Kheezar officers Parag Sakaria Srinivas Rao Resources
Ebrahim Osman Bhagwat Shankar Salman Arab
Hrishikesh Katre Aisha Abdallah

Cashier and Weigh Branch Accountant Assistant Production Assistant

Logistic assistant Purchase Asistants Cashier
bridge Asst Mubin Accountant supervisors Accountant
Naushad Juneja Samir Kadam/Kiran Abhu Jamaluddin
Mubin Lakha Nurmohamed Jyoti Rameshwar Ghule Murugan

Technician
Sauli Silas

 The company’s highest position is the Director Mr. Samir Esmailhe is the one who
controls all the departments. Under him is the General Manager Mr. K.M Shetty under
whom all the departmentreport to and the general manager reports to the director. There
are four departments that report to the general manager.

11
  Firstly it’s the production department since this production only takes place at Shinyanga
branch its which is headed by Plant Manager Mr. K.Raja he reports to under whom fall
the production department, the administration and human resources department,
weighbridge and the accounts department fall. The production department consist of the
production manager Mr. Bhagwat Shankarwho reports to the Plant manager. He is
assisted by the production supervisor Mr.Rameshwar Ghule and the head technician Mr.
Sauli Silas
 The administration and human resources department is headed by Mr. Ally Habshi he
directly reports to the plant manager.
 Weighbridge operations department in Shinyanga is handled by Salman Arab he also
directly reports to the manager.
 The account department at this plant is headed by the branch accountant Mr.Srinivas Rao
he reports to the plant manager, accounts manager as well as the financialcontroller.The
accounts department in this plant also consists of the assistant accountant Mr. Murugan
and cashier Mr. Abhu Jamaldin,theyboth report to the branch accountant of the plant
directly.
 Secondly the Finance department, this department is headed by the financial controller
Mr.Sanjay Kaushik.He reports directly to the general manager,The finance department
also consist the accounts manager Mr. Ebrahim Osman he reports directly to the financial
controller.
 The finance department also contains 3 branch accountants for 3 different offices
Mr.Parag Sakaria (Changombe office) he reports to the accounts manager and the
financial controller.He is assisted by the cashier Mubin Lakha.
 The other branch accountant Mr.Srinivas Rao for Shinyanga plant reports to the account
manager, the plant manager as well as the financial controller. He is assisted by
Mr.Murugan assistant accountant for Shinyanga office as well as the cashier Mr. Abhu
Jamaldin.
 The Headquarter also has the branch accountant Mr.Mubin Nurmohamed and assistant
accountant Miss Jyoti Rathod they both report to the accounts manager as well as the
financial controller.

12
  Thirdly the sales and marketing department, this department is headed by Mr. Esmail
Abdulwahid.he directly reports to the general manager,he oversees the procurement and
sales officer Mr.Hrishikesh Katre who is assited by procurement assistant Mr.Samir
Kadam and Mr.Kiran
 Lastly the logistics department, this department is headed by the logistics manager
Mr.Arun Bej he reports directly to the general manager,he is assited by logistic officers
Mr.Zoheb and Mr.Kheezar who are assisted by a logistic assistant Mr.Imran Ebrahim

13
 CHAPTER 3

FUNCTIONS OF AN ORGANIZATION AND DEPARTMENT STUDIED

Main business functions of the organization

1. Procurement of crops

One of the main functions of AGL starts with procurement of crops where as AGL
purchases crops of good quality from farmers and cooperative societies at a fair price. It also
provides farmers with training on improved farming methods as well as assist them with
necessary support like providing pesticides.

2. Production

AGL produces a number of different products like cotton lint bales, cotton oil, cotton cake,
rice and plastic jerry can with a dedicated department. AGL ensures these products are produced
at the highest standards and meet the requirements.

3. Wholesale export sales.

Most of the sales done by AGL are wholesale export to different destination around the
world. AGL has its own yard with efficient facilities required to export crops within the delivery
period abiding with the respective contract.

4. Importation

AGL also imports fertilizers and sugar of highest standards to ensure these products are
sufficient movement around the country.

14
 5. Retail sales

AGL also does retail sales like rice, greenmung, greenmung dall, pigeon peas, pigeon peas
dall,yellow gram, yellow gram dall, beans, cloves, oil and etc to the local market of the highest
standard fit for human consumption.

A: FINANCE DEPARTMENT AND ITS FUNCTIONS

1. Treasury management

AGL accounting and finance department sets up treasury management policy to be

adopted by all who come in contact with cash or cash equivalent. Included in the treasury
management are things like the level of risk that can be assumed by AGL at any point in time.
The treasury functions are usually managed by the assistant finance manager while the finance
manager or the chief financial officer handles the financial accounting aspects. The treasury
functions of a company are all the activities performed by a responsible officer with the aim of
implementing treasury policies.

2. Cost control

To an extent, the whole essence of accountancy is to control cost and report on activities.
There would not be an accounting department if it does not actively get involved in cost saving
activities. It is typical of accounting department to be in log ahead with other department
primarily because costs are being cut. AGL annually analysis the costs incurred during the year
and acts upon if there are any cost control measures which can be implemented.

3. Billing and credit control

Accounting and finance department in AGL is saddled with the responsibility of ensuring
that customers pay their correct bill on time.

15
4. Investment appraisal

Through the application of capital budgeting technique and

investment appraisal technique, accounting and finance department help the company pass each
project through finance to ensure that it will be completed on time.

5. Ensuring compliance with relevant laws

The business world that we now live in constantly changes in the bid for us to make
things better. The accounts and finance department in AGL always make sure that they abide by
the relevant laws.

6. Handling tax issues

The accounting and finance department of AGL also handles tax issues such as paye, sdl,
withholding taxes. This includes remitting to the respective authority within the given period.

7. Preparation of financial statements

The finance and accounting department in AGL is always called upon to prepare the
financial statements so that they can get a clear position of the company as well as to be audited
and submitted to the respective authority within the given period.

8. Safeguarding assets through internal control

Accountants and finance professionals play vital role in helping to protect the assets of a
company. AGL uses tally to keep all the assets record so that they can be monitored and
safeguarded.

9. Inventory management and control

Is within the preview of the accounting and finance department.AGL uses tally as well
as a customized software mainly designed to control inventory across different location with real
time updation.

16
10. Payroll system

Payroll system management is very important in the management of the business. Get it
wrong and the whole business can crumble.AGL uses tally to maintain payroll so that every
individual can be paid correctly.

11. Writing accounting policy and procedure manual

Accounting policy and procedures manuals are living documents that directs finance and
accounting transactions of the business as a whole. This manual has to be approved by top level
management.

12. Budgeting and Budgetary control

Budgeting and budgetary control is one of the tools in the arsenal of businesses used to
ensure that things are under control. By default, it is the function and duty of accounting and
finance department to handle budgeting and budgetary control in the business.

13. Managing the cash flow and liquidity issues

No matter how profitable a business is, it will go burst if it does not have enough liquid cash and
cash equivalent. The finance department in AGL ensures adequate cash is available for day to
day operations.

14. Working capital management

A company can improve its cash flow by simply managing its working capital properly.
AGL ensures that the working capital management is done efficiently.

15. Preventing fraud

Accountants have big role to play in preventing fraud in an organization. The department
ensures that all payments are made correctly.

17
The main functions of finance department of AGL can be classified as below:

 Book and Budget

 Sales and bills payable
 Costing and establishments
 Internal audit

Book and Budget

 Collection of accounts from different sections

 Preparation of trial balance and final accounts
 Co-ordination with auditors
 Helping statutory auditor
 Funds management

Establishments

This section handles all the payment to employees such as:

 Salary and provident fund

 Incentives and bonus
 Medical reimbursement

Bills payable

This section handles the payment to be made to the suppliers. This include the receiving
of stores receipt vouchers, purchase order and their verification in terms of quality and quantity.
Once the claims are found satisfactory, the payment is made as per terms.

Internal Audit

18
 After preparing the balance sheet, the internal auditors will audit and they send audited
balance sheets to the government auditors to audit the balance sheet.

Other Functions of Finance Department are:

 Payment of wages and salaries

 Payment to suppliers
 Foreign purchase payments
 Cash management
 Inter banking transactions

B: HUMAN RESOURCE DEPARTMENT AND ITS FUNCTIONS

The human resources department handles a range of different functions within an

organization. The department is responsible for hiring and firing employees, training workers,
maintaining interoffice relationships and interpreting employment laws. The department works
diligently behind the scenes to ensure an organization runs efficiently. The HR deparment's
duties will vary between companies, but can generally be summed up in six main functions

In AGL, there is only two employees handle HR department. They take care of the
following functions in an organization.

a) Hiring and Recruiting

One of the primary functions of the human resources department is to oversee hiring and
recruiting within an organization. The department actively recruits, screens, interviews and hires
qualified candidates for open positions. The department administers skills assessment and
personality tests to match candidates with the right job within the company. The human
resources department also develops employee handbooks that explain company policies and
procedures to new hires.

b) Training and Development

19
 The human resources department handles the training and development of an
organization. It creates training programs and conducts training for new hires and existing
employees. The human resources department also works in conjunction with department
managers and supervisors to determine the training needs of employees. They also are
responsible for training contracts and budgeting.

c) Employee Benefits

The human resources department manages all aspects of employee benefits, including
health and dental insurance, long-term care or disability programs as well as employee assistance
and wellness programs. The department keeps track of employee absences and job-protected
leave, such as family medical leave. Human resources department representatives ensure
employees receive the proper disclosures regarding benefit eligibility or if benefits are no longer
available because of a layoff or termination.

d) Employee Relations

The human resources department handles employee relations matters within an

organization. Employee’s relation involves employee participation in different aspects of
organizational activities. The department maintains the relationship between employees and
management by promoting communication and fairness within the company. The department
also handles disputes between employees and management, as well as disputes between the
company and labor unions or employee rights organizations.

C: LOGISTIC DEPARTMENT AND ITS FUNCTIONS

Logistics is a process of movement of goods across the supply chain of a company.

However, this process consists of various functions that have to be properly managed to bring
effectiveness and efficiency to the supply chain of the organization.

Order processing

20
 It is an important task in functions of logistics operations. The purchase order placed by a
buyer to a supplier is an important legal document of the transactions between the two parties.

This document incorporates the description or technical details of the product to supply,
price, delivery period, payment terms, taxes, and other commercial terms as agreed.

The processing of this document is important as it has a direct relationship with the order or the
performance cycle time, which indicates the time when the order is received and when the
materials are received by the customer. The order processing activity consists of the following
steps:

 Order checking for any deviations in agrees upon or negotiated terms

 Prices, payment, and delivery terms.
 Checking the availability of materials in stock.
 Production and material scheduling for shortages.
 Acknowledging the order indicating deviations if any.

Inventory control

Inventory management is to keep enough inventories to meet customer requirements, and

simultaneously its carrying cost should be lowest.

It is basically an exercise of striking a balance between the customer service for not
losing the market opportunity and the cost to meet the same.

The inventory is the greatest culprit in the overall supply chain of a firm because of its
huge carrying cost, which indirectly eats away the profits. It consists of the cost of financing the
inventory, insurance, storage, losses, damages, and pilferage.

The speed of the inventory movement across the supply chain depends on the material
handling methods. An improper method of material handling will add to the product damages
and delays in deliveries and incidental overheads.

Warehousing

21
 Warehousing is the storing of finished goods until they are sold. It plays a vital role in
logistics operations of a firm. The effectiveness of an organization’s marketing depends on the
appropriate decision on warehousing.

In today’s context, warehousing is treated as switching facility rather than a storage of

improper warehousing management. Warehousing is the key decision area in logistics.

The major decisions in warehousing are:

 Location of warehousing facilities

 Number of warehouses
 Size of the warehouse
 Warehouse layout
 Design of the building
 Ownership of the warehouse

Transportation

For movement of goods from the supplier to the buyer, transportation is the most
fundamental and important component of logistics.When an order is placed, the transaction is not
completed till the goods are physically moved to the customer’s place. The physical movement
of goods is through various transportation modes.

Logistical packaging

Logistical or industrial packaging is a critical element in the physical distribution of a

product, which influences the efficiency of the logistical system. It differs from product
packaging, which is based on marketing objectives.

However, logistical packaging plays an important role in damage protection, case in

material handling and storage space economy. The utilization of load has a major bearing on
logistical packaging with regard to the packaging cost.

22
Information

Logistics is basically an information-based activity of inventory movement across a

supply chain. Hence, an information system plays a vital role in delivering a superior service to
the customers. Use of IT tools for information identification, access, storage, analysis, retrieval
and decision support which is vital among the functions of logistics is helping business firms to
enhance their competitiveness.

LOGISTICS SOFTWARE

23
It is a customized program that is established to improve our effiency and minimise unnecessary
errors.

DOCUMENTS GENERATED:

1. Sales contract

2. Shipping instructions

3. Shipment advice

4. Packing list

5. Invoice

REPORTS GENERATED

1. Shipping instructions report

2. Sales invoice report

3. Master report

ADDITIONAL FEATURE

1. Payment collection details

2. Courier details

Other information of logistic department

 Customized Software for logistics

 Own container packing yard

 Internal quality lab with external monitoring

 Five dedicated logisticians

 More than 3000 TEU handled annually.

24
  99% record of on time delivery

PRODUCTION DEPARTMENT

Production Department is the department which directly involves inmanufacturing

products. Examples are the machining, finishing, and assemblingdepartments.

AGL involve various functions under production department:

a) The production and planning

Department will set standards and targets for each section of the production process. The
quantity and quality of products coming off a production line will be closely monitored. In
businesses focusing on lean production, quality will be monitored by all employees at every
stage of production, rather than at the end as is the case for businesses using a quality control
approach.

b) Purchasing

Department will be responsible for providing the materials, components and equipment
required to keep the production process running smoothly. A vital aspect of this role is ensuring
stocks arrive on time and to the right quality.

c) Storage

Department will be responsible for stocking all the necessary tools, spares, raw materials
and equipment required to service the manufacturing process. Where sourcing is unreliable,
buffer stocks will need to be kept and the use of computerized stock control systems helps keep
stocks at a minimal.

d) Research and development

Department will be responsible for researching new products or modifications to existing

ones, estimating costs for producing in different quantities and by using different methods. It

25
will also be responsible for the design and testing of new product processes and product types,
together with the development of prototypes through to the final product. The Technical support
department may also be responsible for work study and suggestions as to how working practices
can be improved.

e) Operations

Department will be concerned with the manufacture of products. This will include the
maintenance of the production line and other necessary repairs. The works department may also
have responsibility for quality control and inspection.

AGL produces the following products:

 Cotton lint bales

 Cotton oil
 Rice
 Jerry can

D: MARKETING DEPARTMENT

It serves as the face of your company, coordinating and producing all materials
representing the business. It is the Marketing Department's job to reach out to prospects,
customers, investors and/or the community, while creating an overarching image that represents
your company in a positive light.

AGL marketing department involves 4 employees who are concentrating in the following
marketing functions:

a) Placing advertisement boards

b) Participate on trade fairs and exhibitions

c) Personal visits to potential buyers with a sample of the products

d) Taking feedbacks from the buyers

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 CHAPTER 4

PRODUCTS PROFILE

1. COTTON LINT PRODUCTION

Cotton

Cotton is a natural plant fiber which grows around the seed of the cotton plant. Fibers are
used in the textile industry, where they are the starting point of the production chain. First, the
cotton fiber is obtained from the cotton plant and then spun into yarn. From there, the cotton yarn
is woven or knitted into fabric.

The use of cotton has a long tradition in the clothing industry due to its desirable
characteristics. Cloths made of this fiber are moisture-absorbent, have a good drape and are
known for their long durability. Consumers continue to purchase large amounts of cotton
products as they prefer cotton’s light and comfortable qualities. Products made out of cotton
range from highly absorbent bath towels over bed linens to basic clothes such as t-shirts,
underwear or socks etc.

Tanzania is one of the most suitable countries for the production of organic cotton due to
its largely unspoiled soil and unpolluted environment. According to “Textile Exchange”,
Tanzania produces at average 2600 tons of organic cotton. Cultivation is practised in certain
areas in the west, especially in the districts of Meatu and partly Maswa, in the Shinyanga region.

AGL purchases cotton from farmers at a fair price and transports them to the ginnery
warehouse where the cotton is off loaded and the ginning process starts by first removing the
remaining seed if there are any. The cotton then moved onto the ginning machine where the
cotton are collected and compressed into a bale (cotton lint bale).

AGL offers cotton lint under the following specifications:

ORIGIN: Tanzania and Malawi

27
SPECIFICATIONS:

Saw and roller ginned staple 1.3/32-1.1/8 inch, micronaire 3.5-4.9 inch Gany or better.

PACKAGING: Plastic and cotton bags

AVAILABILITY: Tanzania July-December and Malawi May-August

2. PIGEON PEAS

It was domesticated in India 3,500 years ago. The seeds are used as grains in Africa, Asia
and Latin America. It was grown for thousands of years in India. Around 2,000 BC, pigeon pea
was developed in East Africa which was then brought to the America. Today pigeon pea is
grown widely throughout the world in tropical and subtropical regions.Tanzania is ranked among
the six leading countries in the production of pigeon peas after India, Myanmar, Malawi, Uganda
and Kenya. It is estimated that more than 100,000 hectares are under cultivation of the drought
resistant legume each year with Babati being the leading district.

Plant

It is an erect, glandular-pubescent, short-lived and perennial shrub. The plant grows up to

1–2 m high with tetrarch taproots. The erect and ribbed stem is 15 cm in diameter. Leaves are
trifoliate, alternate in dark green color above and silvery underneath. The plant yields yellow to
red flowers which is 1.2 cm – 1.7 cm in diameter that turns into fruit as seed pods. The pods are
linear-oblong, green or red, 2–13 cm long and 0.5–1.7 cm wide. Each pod contains about nine
seeds which is subglobose – ellipsoid or squarish in shape having 5 mm as a diameter. The seeds
are white, cream, brown, purplish to black in color.

AGL offers pigeon peas under the following specifications

ORIGIN: Tanzania, Mozambique, and Malawi

AGL offers pigeon peas under the following specifications

28
SPECIFICATIONS:

 Purity 97%
 Foreign matter/admixture/Broken/damaged/Discolored 3% max
 Free from infestation
 Fit for human consumption

PACKING: 50kgs pp Bag

AVAILABILITY: August-December

3.YELLOW GRAM

Also Know as- Kala Chana, Bengal Gram, Gram, Chana, Pis Chiche, or Chihu. A product
of Canada, Desi Chickpeas are a light to dark brown colour. They are in the 6 to 7mm range,
with a thick seed coat. About 80% of the Desi Chickpeas produced are split in half to make
Chana Dal.

AGL buys yellow gram from farmers, cleaning, and pack them in 50kgs bags for exporting them
in different various countries.

AGL offers yellow gram under the following specifications

ORIGIN: Tanzania

SPECIFICATIONS:

 Purity 97%
 Foreign matter/admixture/broken/damaged/discolored 3% max
 Free from infestation
 Fit for human consumption

PACKING: 50kgs pp Bag

AVAILABILITY: August-December

29
3. GREEN MUNG

Green Mung Beans are an ancient superfood from Asia that have been eaten for centuries
by health conscious cultures aware of their nutritional benefits. They are an all natural plant
based protein that are low in calories, low in fat, high in fiber and high in protein. Green Mung
Beans can be eaten cooked or sprouted. When sprouted, they are a living food power packed
with enzymes, antioxidants, vitamins and minerals.

Green Mung Beans can be eaten sprouted and cooked, sweet or savory. When eaten
sprouted, they are delicious as a salad, wholesome as a plant based protein in many dishes, and a
pleasant addition to sauces, dips and any food in search of a nutritional boost. When cooked,
Green Mung Beans are a hearty, comfort food that can be served as a soup, stew, main dish or
dessert.

AGL purchases two differnt qualities of green mung which are, North-side quality (
purchased in Shinyanga, Singida, Maswa, Sangu) and south-side quality ( purchased in Mbeya,
Masasi) in Tanzania.

AGL offers green-mung under the following specifications

ORIGIN: Tanzania and Mozambique

SPECIFICATIONS:

 Purity 97%
 Foreign matter/admixture/broken/damaged/discolored 3% max
 Free from infestation
 Fit for human consumption

PACKING: 50kgs pp Bag

AVAILABILITY: February-July

30
4. Dried cashew nuts

As one of the largest Cashew nut producers in Africa, Tanzania's cashew nut exports
provide ten to fifteen percent of the country's foreign exchange. The country is the eight largest
grower of cashew nut in the world and ranks fourth in Africa.

Cashew nuts

Farmers sell raw cashew nut to the cashew nut board of Tanzania whereby the board
gives a fair price to the farmers then the board invites potential buyers to participate in the
upcoming auction where the cashew nuts are sold.

AGL buys from the cashew nut board of Tanzania at a rate provided by the board
provided that the cargo meets the required specifications. AGL exports these cashew nuts from
Mtwara port or Dar Es Salaam port to various destinations across Asia.

AGL offers dried cashew nuts under the following specifications

ORIGIN: Tanzania and Mozambique

SPECIFICATIONS:

 Out turn 48-53 LBS

 Nut count 190-210
 Moisture 10% max
 Free from infestation
 Fit for human consumption

PACKING: 80kgs jute bag

AVAILABILTY: October-January

31
5. SESAME SEEDS

Sesame seed is one of the oldest oilseed crops known, domesticated well over 3000 years
ago Sesame has one of the highest oil contents of any seed. With a rich, nutty flavor, it is a
common ingredient in cuisines across the world. Like other nuts and foods. The world harvests
about 6.2 million metric tonnes of sesame seeds with Tanzania, India, and Sudan as the largest
producers.

Sesame has one of the highest oil contents of any seed. With a rich, nutty flavor, it is a
common ingredient in cuisines across the world. Like other nuts and foods, it can
trigger allergic reactions in some people

In Tanzania there are three different qualities of sesame seeds available which are:

1) Northern-Quality which is mainly purchased from Singida, Maswa and Dodoma.

2) Southern-Quality which is mainly purchased in Masasi, Songea, and Lindi.

3) Whitish-Quality which is mainly purchased in Mbeya.

AGL buys sesame either directly from farmers or through co-operative societies. The
cargo is then transported to Dar Es Salaam warehouse where the cleaning and rebagging is done
and finally shipped them in various regions of Asia.

AGL offers Sesame under the following specifications

ORIGIN: Tanzania, Mozambique, Malawi and Uganda

SPECIFICATIONS:

 Machine cleaned
 Oil content min 52%
 Admixture max 2%
 Moisture max 7%

32
PACKING: 50kgs pp bag

AVAILABILITY: January-October

6. Red kidney beans

Kidney beans are generally prepared from dried beans and boiling until they are soft.
Kidney beans are dark red in color when they are whole cooked. Kidney bean paste can be made
by cooking and pulverizing the beans to a dry paste.

AGL purchases kidney beans directly from farmers and they are cleaned and sold in wholesale as
well as retail in the local market.

AGL offers kidney beans under the following specifications

ORIGIN: Tanzania, Mozambique and Malawi

SPECIFICATIONS:

 Purity 97%
 Foreign matter/admixture/broken/damaged/discolored 3% max
 Free from infestation
 Fit for human consumption

PACKING: 50kgs pp Bag

AVAILABILITY: November-August

7. MAIZE

45% of Tanzanian land is used for maize cultivation in which 4.5 million of households
utilize their land for maize cultivation. The contribution of smallholders is 85% of total national
cultivation with the rest of contribution being from community farms, large farms (private and
public) Cultivation of maize is conducted in two different rainfall seasons of the year, which are:
33
 Bimodal (vuli) October to December
 Unimodal(masika) March to May.

About 47% of maize grown on vuli season and 41% grown in masika season

AGL purchases maize directly from farmers and are sold in the market locally

AGL offers maize under the following specifications:

ORIGIN: Tanzania & Malawi

SPECIFICATIONS:

 Moisture 13.0 % Max

 Foreign Matter 1.0 % Max
 Broken grains 2.0 % Max
 Shriveled, diseased and discolored
 grains 3.0 % Max
 Insect damaged 2.0% Max
 Aflatoxin 10 ppb max
 Absent from live weevils and foreign
 odours and moulds

PACKING: 50Kgs

AVAILABILTY:June – Aug

8. PEANUTS

Commercial groundnut production in Tanzania started in 1946 at Kongwa (Dodoma),

Urambo (Tabora) and Nachingwea (Mtwara) under the ground nut scheme. Currently major
groundnut growing regions include Dodoma, Tabora, Shinyanga, Singida, Mtwara and Mwanza.

Peanuts industry in Tanzania has inadequate value additionand agro processing activities.
There are a few large groundnut exporters operating in Tanzania, but the processing part is

34
performed elsewhere, usually in the companies country of origin. Groundnut is one of the major
oilseeds produced in Tanzania.

AGL offers Peanuts under the following specifications:

ORIGIN:Tanzania & Malawi

SPECIFICATIONS:

 Count 80/90
 Moisture 7% Max,
 Shrivelled, Damaged etc 5%
 Aflatoxin 15 ppb Max
 Rotten Kernels 0%
 Free From live / death / weevils / insects and cocoon

PACKING: 50Kgs

AVAILABILITY: May-Aug

35
 CHAPTER 5

MY LEARNING AS INTERNEE

SUMMARY OF MY LEARNING AS INTERNEE

It was a tremendous that I have availed with devotion and commitment. But, one thing I
want to share is not easy that it looks it has a great toughness and complications in its process but
the overall it was nice and great. Here I am sharing some of my learning regarding my internship
in respective departments.

Following are some terminologies which I learnt, which I practiced during my internship
in Finance Department of AGL, Dar Es Salaam Tanzania.

 Payments
 Receipts
 Sales
 Purchases
 Inter banking transactions (electronic funds transfer)
 Contra
 Sales orders and Purchase orders
 Invoice of various transactions
 Various loan application
 Stock
 Cheque printing
 Ledger of various transactions
 Bank reconciliation
 Preparation audit files

1. Payment vouchers

Classification of payment transactions in tally

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 a) Cash Payment:
Cash payments are the transactions that settle through cash. Payments are made
by cashier through immediate cash. Some examples of cash payments entries are
 Stationery purchased for Rs 500.00 (Paid by main cashier )
 Courier charges paid Rs 20.00 ( Paid by pettycashier)
 Tea expense Rs 10.00 ( Paid by pettycashier)
b) Bank Payments
These are transactions that settle through bank or by way of issuing cheque
.Normally big transactions are settling through cheque. However there is no rule
regarding this, you are free to issue cheques of any amount. This depends on the policy of
your business. An example of bank a payment is as below.

2. Receipt vouchers

Before knowing receipt entry in tally whe should know what is a receipt?.As such sale ,
receipt is equally important in a business. We use receipt when someone pay us a certain some of
money towards the consideration of sale, service or any other repayment & Payments like loan
,advances etc. In such cases we issue a printed receipt as an acknowledgment of money receipt.
Receipt is a legal document that we received cash, cheque from other party.

Classification of payments transactions in tally

37
i) Cash receipts

A cash receipt is the one, when transaction is settled through cash or money receiving through
cash, for example,

 Cash brought by Rajeev as capital Rs 100000.00

 Cash received from Asia pacific Rs 15000.00

 Advance repaid by Mr X

 Loan amount repaid by Mr Y

ii) Bank receipts

Bank receipt are the amount received through bank using instruments like check, DD,
online transfer like NEFT,RTGS etc.

When receiving a check or DD, we will deposit this into our bank account, bank credit the
money in our account after collecting this money from drawer’s bank. Online transfer is the
fastest way of bank transactions.

Examples of the banking receipt transactions.

 Amount transferred through NEFT ( National electronic fund transfer) Rs 50000.00 by
Ambuja cements to our SBI A/c # 651

 Check no 546845 received Rs 1000 on account of Commission.

 Loan disbursement by TATA Finance vice cheque no 963654 rs 1 Crore.

38
3. Sales voucher

Sale is the most important part of every business. Sale entry or sales voucher entry is a
part of daily routine. Sale is revenue account in nature hence termed as the main income stream
of organization. In Tally ERP 9 a sale can be classified into two:

o Cash sales: This does not require much explanation as its name says everything.
Goods are sold on cash is called cash sale. The recording of cash sale is explained
below.
o Credit sales: Goods or services are sold for Credit, the consideration of sale not
received at the time of selling and customer agreed to give the money at a later
period.

Two Types of sales voucher for sales entry

In voucher entry there are two types sales voucher in Tally. Just understand that the
importance of this voucher is only in term appearance and Invoice mode is helpful for automatic
calculation of Taxes. You can enter Accounts invoice ( professional charges) & Item Invoice (
like mobiles, rice, spare parts) using both as voucher mode and as invoice mode vouchers.

 As voucher: This mode is used to enter sales transactions in double entry mode. The
below image give you the typical sales screen in as voucher mode.

39
  As Invoice: This type of voucher is used to enter sales transactions, and want to issue an
invoice/bill to customer. This voucher is useful for automatic calculation of taxes in sales
invoice. Below is the typical sales screen as Invoice.

4. Purchase voucher

In accounting Purchase is a direct expense and it used to calculate cost of goods sold. In
General all purchase cannot be treated and posted under Purchase Account. Explain this concept
with an example. M/s Computer city is a computer sales company. They have the following
transactions.

Purchase voucher is the most important voucher of every business . If you are selling
something, you must be purchasing some thing for sure.

There are two types of purchase voucher

 Cash Purchase: When purchases are made with cash or cheque is called Cash Purchase
 Credit Purchase: When purchases are made without payment at present and liable to
pay the creditor is called credit purchase.

40
5. INTER BANKING TRANSACTIONS (ELECTRONIC FUNDS
TRANSFER)

Online banking, also known as internet banking, it is an electronic payment system that
enables customers of a bank or other financial institution to conduct a range of financial
transactions through the financial institution's website. The online banking system will typically
connect to or be part of the core banking system operated by a bank and is in contrast to branch
banking which was the traditional way customers accessed banking services.

41
 Inter Bank Transfer enables electronic transfer of funds from the account of the remitter
in one Bank to the account of the beneficiary maintained with any other Bank branch. ... Fund
transfer transactions are settled in batches as opposed to the continuous, individual settlement in
RTGS.

Contra vouchers

As per the Accounting Principles, a Contra entry is a transaction involving transfer of

cash between one Cash A/c to another or one Cash A/c to another Bank A/c i.e., is a transaction
indicating transfer of funds from.

 Cash account to Cash account

 Cash account to Bank account
 Bank account to Cash account
 Bank account to Bank account

Contra voucher is used when you deposit any cash in bank account or cash withdrawal
from bank account by Cheque/DD/ATM or Fund transfer from one bank account to another bank
account by Cheque/DD.

42
6. Sales order and purchase order

a) Purchase order

Is a written authorization for a vendor to supply goods or services at a specified price

over a specified time period. Acceptance of the purchase order constitutes a purchase contract
and is legally binding on all parties.

It is a legal binding between supplier and buyer.It contains the detail of items the
Purchaser agrees to purchase at a certain price agreed between the buyer and seller. It has all the
specification of such as the delivery date and terms of payment for the buyer.Purchase ordering
through computer systems have made the purchasing process more efficient and allow for better
inventory and payment tracking management.Purchase order processing is Order does not affect
financial records and not update inventories.

Purchase order contains the following:

 Buyers Name, Address, and signature

 Supplier name and Address
 Date of purchase order
 Tax detail of Buyers such as CST and VAT no (if applicable)
 Status of buyer
 Tax detail of Sellers such as CST and VAT no (if applicable)
 Status of Seller
 Mode or terms of payment
 Descriptions of items
 Quantity of items
 Discount if any
 Net amount
 Net amount in words
 Terms and condition of payment
 Any narration if required
 It can even include Taxes if applicable
43
b) Sales order

A sales order (SO) is an internal document generated by the seller, indicating that the
customer is now ready to purchase products and services. It is a confirmation document that
authorizes sale of listed items for the given amount. The document gives a clear understanding
about what the customer has decided to buy. SO is often considered a legal contract that makes it
mandatory for the seller to sell products at the agreed upon price. The seller generates SO when
the sales quote sent to the customer is approved.

The generation of SO implies confirmation of sale and no additional charges resulting

from increased labor or transportation cost will be included in the document. So once the SO is
created, the seller will have to sell the products at the agreed upon price quoted with no further
cost to be incurred by the buyer. In case, the sellers wants to make any changes in SO document,
it is necessary to take prior consent from the buyer.

Sales order contains

After receiving approval of sales quote from the customer, the seller converts the sales
quote into a SO. SO will contain information based on what is present in the final quote. The
document will contain information related to products, prices and quantities. It will also include
the customer name and address, SO number, Shipping address, Billing address, method of
payment as well as the ‘Terms & Conditions’ of the contract. The SO may also contain
scheduled delivery date suggesting the final date on which the order will be shipped to the

44
customer. The SO number is a sequentially generated number and primarily used to keep a track
of orders.

Purpose of sales order

SO is used for internal reference by the sales organization and considered the first step in
processing an order. It is an integral part of transaction flow in the revenue cycle. Customer
billing is the primary source of revenue, which cannot be done unless the sales department has a
copy of SO document. Preparing a SO is important as the customer billing is on the basis of sales
order. Upon receiving the sales order, the billing department charges appropriate amount to the
customer based on SO. You need to ensure that that the SO is correctly generated so as to avoid
any revenue leakage. The sequential sales order number contained in SO documents is also used
for conducting an audit of order processing. Financial auditors when reviewing a company’s
financial statements often inquire about sales order documents. Working capital loans are also
given on the basis of confirmed sales order value of a business. So if you want to apply for such
loans, make sure to submit sales order documents.

8. Bank reconciliation

A bank reconciliation is the process of matching the balances in an entity's accounting

records for a cash account to the corresponding information on a bank statement. The goal of this

45
process is to ascertain the differences between the two, and to book changes to the accounting
records as appropriate.

A bank reconciliation should be completed at regular intervals for all bank accounts, to
ensure that a company's cash records are correct. Otherwise, it may find that cash balances are
much lower than expected, resulting in bounced checks or overdraft fees. A bank reconciliation
will also detect some types of fraud after the fact; this information can be used to design better
controls over the receipt and payment of cash.

If there is so little activity in a bank account that there really is no need for a periodic
bank reconciliation, you should question why the account even exists. It may be better to
terminate the account and roll any residual funds into a more active account. By doing so, it may
be easier to invest the residual funds, as well as to monitor the status of the investment.

At a minimum, conduct a bank reconciliation shortly after the end of each month, when
the bank sends the company a bank statement containing the bank's beginning cash balance,
transactions during the month, and ending cash balance. It is even better to conduct a bank
reconciliation every day, based on the bank's month-to-date information, which should be
accessible on the bank's web site. By completing a bank reconciliation every day, you can spot
and correct problems immediately. In particular, a daily reconciliation will highlight any ACH
debits from the account that you did not authorize; you can then install a debit block on the
account to prevent these ACH debits from being used to withdraw funds from the account
without your permission.

It is extremely unlikely that a company's ending cash balance and the bank's ending cash
balance will be identical, since there are probably multiple payments and deposits in transit at all
times, as well as bank service fees (for accepting checks, recording deposits, and so forth),
penalties (usually for overdrafts), and not sufficient funds deposits that the company has not yet
recorded.

'Bank Date' field. Accept the screen to reconcile the bank ledgers as per the corresponding
banking statement in tally.

46
9. Cheque printing

It’s never been a better time to be out with the old and in with the new. When it comes to
issuing cheque– whether you manage day-to-day finances at home or have a business that issues
numerous cheques a day – there is no longer a need put pen to paper. Simplify the cheque
production process with laser cheque printing, a tool that allows users to customize a cheque’s
information and appearance, while cutting down on the costs and hindrances of pre-printed
cheque stock. Not only is this option secure and reliable, it’s replacing yesterday’s practises with
the direction of tomorrow.

Benefits of printing a cheque

1. Fraud Control

For as long as the hand-written cheque has been around, criminals have been able to
perfect the craft of cheque fraud. Whether it be copying cheques or washing them – in which
details from a cheque are erased and rewritten – fraudsters have proven to be cunning in their
abilities. Laser cheque printing has numerous safe guards, from security features in the paper of
secure blank cheques to software precautions that include passwords and security keys. Positive
pay systems can also be utilized to ensure the bank has a record of issued cheques.

2. Increased Productivity

47
 Take advantage of various software settings to make the cheque-printing process as
efficient as possible. Change printing formats to print more than one cheque per page, utilize an
automatic cheque-signing feature and send cheque to multiple printers. You can also opt to use
blank pressure-sealed cheques, creating a ready-to-be-mailed document and eliminating the need
for envelopes.

3. Ease of Use

Give that hand a break! Not only does the laser-print option ensure your cheques are
legible, it is far more efficient – especially for companies that issue a substantial number of
cheques on a regular basis. Simply load the paper into your compatible laser printer, and you’re
ready to go. Letting a printer do the work requires less supervision and review, and frees up
some time to focus on other important matters.

4. Laser Cheque Customization

Laser cheques are easy to read and pleasing to the eye. There is little chance of
information being misread, and the overall look is a professional one. That professional touch
will not only reduce human error when writing and reading your cheques, but it will help give
you and/or your company credibility. A clear, typed font appears official and allows the issuer to
hide a potentially messy, illegible scrawl. Choose from different types and colours of paper, and
personalize your laser cheques by manipulating the logo, client name and financial institution.
Blank cheque stock also has various offerings, including cheque on top, cheque in middle,
cheque on bottom, three cheques on page and pressure-sealed cheques.

5. Accessible

All the components you need to start and sustain a laser cheque printing operation are
right at your fingertips. Most office supply stores carry the necessary items, such as paper, toner
and software. Or look online, where shoppers can find a large selection of supplies and suppliers,
which makes choosing the perfect purchase that much easier

48
 AGL uses TALLY and in supportive of EXCEL designed to address the most complex
business requirements. They provide comprehensive business and industry solutions, enabling
organizations to increase productivity, accelerate business performance, and provide a lower cost
of ownership. All the departments are centralized through tally.

49
 CHAPTER 6

SWOT Analysis

Strengths

 One of the major strength of AGL is the strong international brand recognition it has
made by providing high quality products and services for more than twenty years.
 AGL has one of the best facilities around in terms of having one of the most modern
cotton ginneries machinery with a capacity to produce at an average of 500 bales per day,
also AGL has invested in the company’s infrastructure like having installed one of the
modern cleaning machine, cotton seed crushing, oil mill machineries, weighbridge,
godowns and etc. All these enable the company to increase their revenue and improve
their efficiency in providing services
 AGL also uses advanced customized software like the use of tally erp 9 which is
customized to meet the requirements of the business, it also uses other software like odoo
for stock control, cosoha a customized logistics software aimed to maintain records and
generate documents needed for the logistics process. The aim is to have a proper record
which is easily traceable and to nullify any unnecessary errors

Weakness

 AGL needs to improve their reputation over the internet that will make them known to
potential new buyers as in today’s business world online advertisements are more
effective than any other form of advertisement.
 High amount of financing is required to run and increase the business operations and with
the current unstable financial and economic policies the process of obtaining such
finances from banks has become slower thus affecting the business operations.
 So many competitors in the market at the time of purchasing different crops for the
purpose of production and selling.

50
Opportunities

 AGL has further opportunity to increase their involvement in the local market by selling
their products in the locally which will boost their revenue.
 AGL can improve by introducing further products for which the materials are available
and where the market is available for instance AGL can deal with soya beans which is
available in Tanzania and has a demand in the international market.

Threats

 There are a number of new competitors so AGL has to make sure that they are able to
cope up with such threats by providing the best price, high quality products and quality
service at all times.
 Current government involvement are affecting the business operations, for example in
2018 sesame seeds harvested from the southern part of Tanzania was said to be purchased
from cooperative societies while in the central parts it was said to be purchased directly
from farmers such uncertainties reduce the purchasing power of the company.

51
 CHAPTER 7

CONCLUSION AND RECOMMENDATION

CONCLUSION
The time spent for the internship at AGL were no doubt a source of great learning for me
about many things particularly working in finance department. The practical project do help me
attain loads of knowledge about the predominant functions performed by banking companies and
the companies, but also impart a lot of training as regards the set of behavioral traits which
distinguish a particular person from the rest of the lot in a professional environment.

RECOMMENDATIONS

The training program should also be more inviting and involving. It has been proven that
when people are part of the change process their resistance to the change is much lower. Rather
than imposing change, helping employee bring that change will result in quicker and wider
acceptance of the system.

AGL needs to improve their reputation over the internet that will make them known to
potential new buyers as in today’s business world online advertisements are more effective than
any other form of advertisement.

High amount of financing is required to run and increase the business operations and with
the current unstable financial and economic policies the process of obtaining such finances from
banks has become slower thus affecting the business operations. AGL should increase the
number of finance institutions for loan purpose in to finance the company more.

52
BIBLIOGRAPHY
• Company panorama.

• Unit manager- Sameer (CEO).

• Factory manager- Mr. Shetty

• Engineering manager- Mr. Rao

• HR manager- Mr. Kheezar

• Finance manager- Mr. Sanjay

• Accounts manager- Sanjay Kaushik

• Company employees.

53
ANNEXURE
PRODUCTS/CROPS

Cotton
Cotton farm cotton bales cotton lints

Pigeon peas

Yellow grams

54
Green mung

Cashew nuts

Sesame seeds

Red kidney beans

55
Maize

SOME OF MACHINERIES OF THE COMPANY

RICE MILL MACHINERY

CAPACITY: 30 METRIC TONS PER DAY

56
OIL MILL MACHINERY

CAPACITY: 45 METRIC TONS PER DAY

57
GINNERY-A COTTON BALES

CAPACITY: 120 BALES oer 12 hours shift

58
GINNERY-B

CAPACITY 120 BALES PER 12 HOURS SHIFT

MULTI CLEANING MACHINERY

CAPACITY 35 METRIC TOND PER DAY

59
60